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News

Japanese Parts Shortage Halts General Motors Production

DETROIT - A shortage of parts from Japan will force General Motors Co. to halt production at its pickup plant in Shreveport, La., next week, the company said Thursday.

It's the first time a U.S.-based automaker will stop production in North America over parts shortages caused by the earthquake and tsunami in Japan. Toyota Motor Co. and Subaru have already slowed North American production to conserve parts that they normally import from that nation.

GM makes two compact pickups at its Shreveport plant, the GMC Canyon and Chevrolet Colorado. Both use a five-speed manual transmission made by Japanese supplier Aisin Seiki Co, which has halted production in Japan and suspended overtime in North America.

GM's other North American plants haven't been affected so far.

GM said it will resume production as soon as possible. Meanwhile, the company has enough of the trucks in inventory that it would take more than two months to sell them all. The trucks could be at the plant, en route to showrooms or on dealer lots.

Ford Motor Co. and Chrysler Group LLC said their plants haven't been affected by shortages.

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Japanese Disaster Is Stressing Global Supply Chain

Tony Prophet, a senior vice president for operations at Hewlett-Packard, was awakened at 3:30 a.m. in California and was told that an earthquake and tsunami had struck Japan. Soon after, Mr. Prophet had set up a virtual "situation room," so managers in Japan, Taiwan and America could instantly share information.

At Hewlett-Packard, which builds computers in Tokyo, the disaster response has been described as "doing triage."

Mr. Prophet oversees all hardware purchasing for H.P.'s $65-billion-a-year global supply chain, which feeds its huge manufacturing engine. The company's factories churn out two personal computers a second, two printers a second and one data-center computer every 15 seconds.

While other H.P. staff members checked on the company's workers in Japan - none of whom were injured in the disaster - Mr. Prophet and his team scrambled to define the impact on the company's suppliers in Japan and, if necessary, to draft backup plans. "It's too early to tell, and we're not going to pretend to predict the outcome," Mr. Prophet said in an interview on Thursday. "It's like being in an emergency room, doing triage."

The emergency-room image speaks volumes. Modern global supply chains, experts say, mirror complex biological systems like the human body in many ways. They can be remarkably resilient and self-healing, yet at times quite vulnerable to some specific, seemingly small weakness - as if a tiny tear in a crucial artery were to cause someone to suffer heart failure.

Day in and day out, the global flow of goods routinely adapts to all kinds of glitches and setbacks. A supply breakdown in one factory in one country, for example, is quickly replaced by added shipments from suppliers elsewhere in the network. Sometimes, the problems span whole regions and require emergency action for days or weeks. When a volcano erupted in Iceland last spring, spewing ash across northern Europe and grounding air travel, supply-chain wizards were put to a test, juggling production and shipments worldwide to keep supplies flowing.

But the disaster in Japan, experts say, presents a first-of-its-kind challenge, even if much remains uncertain.

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Libyan Air Strikes Drive Up Oil Prices

LONDON-Crude-oil futures jumped after allied air strikes against Moammar Gadhafi's forces in Libya further escalated a conflict that has disrupted the country's oil exports for a month.

Meanwhile, protesters clashed with government forces in Yemen, Bahrain and Syria over the weekend, stoking fears that unrest would continue to spread throughout the Middle East and North Africa region, which is home to many of the world's biggest oil producers.

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US Manufacturing Numero Uno

The following post is provided by MANTEC.


The United States is the number one manufacturing nation in the world!  According to the United Nations report, U.S. manufacturers produced $1.7 trillion in goods in 2009, 40% more than China.  A lot has changed in manufacturing since employment peaked at 19.6 million in 1979.  Market shifts mean that manufacturers, particularly small and mid-sized firms, are facing new, significant challenges.

The Next Generation Manufacturing Strategies (NGMS) address the market shifts for profitable manufacturing growth.  To be competitively positioned to capitalize on the opportunities available in the dynamic markets of today and tomorrow- to not just survive, but to grow and thrive- U.S. manufacturers must address six key critical areas in concert:  Continuous Improvement, International Trade, Supplier Development, Sustainability, Technology Acceleration and Workforce.

Sure, it is not a completely rosy picture; however there are many bright spots.  Last year 136,000 manufacturing jobs were added- the first net increase since 1997. U.S. manufacturers are focusing on complex and expensive goods where China excels at products with low profit margins.

Many manufacturers have utilized the six NGMS.  Continuous Improvement (aka- LEAN) is probably the most widely known method to remain competitive.  Continuous Improvement enhances productivity and frees up the capacity that will provide manufacturers a stable foundation to pursue innovation and growth.  All employers know they need a strong, engaged and skilled workforce in all levels of the organization.  Workforce development will be a key element in a manufacturer’s growth.

Many more opportunities exist with the additional NGMS.  International Trade should not be ignored in a strategic, market and sales development plan.  It is a world market and capitalizing on opportunities is important.  Supplier Development focuses on the competitive position using an efficient supply base and identifying innovative process and products. 

Sustainability is a key driver as global demands for diminishing resource increase and renewable technology needs expand.  Technology Acceleration leverages opportunities and solutions required to grow in the global marketplace.

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Senate Makes One Change To Healthcare Law, Rejects Repeal

WASHINGTON – To hear Senate Republicans tell it, the defeat of their attempt to repeal the Democrats' health care overhaul was really a victory of sorts on the long march to the 2012 congressional and presidential elections.

The repeal effort sank Wednesday along party lines, 51-47, as expected. But in the process, Republicans forced Democrats on the record in favor of President Barack Obama's signature overhaul and launched what they described as a two-year effort to discredit it in the lead-up to a bid for a second term.

"These are the first steps in a long road that will culminate in 2012, whereby we will expose the flaws and the weaknesses in this legislation," said Texas Sen. John Cornyn, the party's campaign chief.

"We think this is just the beginning," said Republican leader Mitch McConnell. "This issue is still ahead of us."

What's certain is that Wednesday's vote changed nothing about the debate that consumed Congress for two years, dominated the midterm elections and has now moved to the courts.

Two federal judges have ruled the law is unconstitutional, partially or in its entirety, citing a requirement for individuals to purchase coverage and pay a penalty in taxes if they fail to do so. Two other judges have upheld the law.

The controversy is all but certain to be settled by the Supreme Court. Sen. Bill Nelson, D-Fla., announced he would file legislation urging the justices to act quickly.

In spite of the maneuvering and the side-taking, senators overwhelmingly voted to cancel the law's requirement that businesses, charities and state and local governments file income tax forms for every vendor that sells them more than $600 in goods. That repeal was approved 81-17 after Republicans pointed out it had originally been their idea. Obama said he would accept the change.

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Toyota Narrowly Keeps Top Spot

TOKYO (AP) —  Toyota sold 8.42 million vehicles globally in 2010, narrowly remaining the world's top automaker ahead of General Motors amid recall woes in the key North American market.

GM also released a new tally Monday for its global 2010 sales, at 8.39 million vehicles, slightly fewer than Toyota's number, but a dramatic 12 percent rebound from 7.48 million vehicles the year before.

The race between the two giants appears to be getting close, with the chance the tables could be turned, seeing GM once again rising to the top.

"General Motors is going strong, and it's a sure sign of its re-emergence," said Yasuaki Iwamoto, auto analyst with Okasan Securities Co. in Tokyo.

Meanwhile, Toyota wasn't showing much growth in North America — and growing slower in China than GM — partly because it lacks the U.S. automaker's extensive model lineup such as large-size sedans, he said.

Toyota's global sales, including truckmaker Hino Motors Ltd. and Daihatsu Motor Co., which makes small cars, rose 8 percent from 2009, driven by solid sales growth in China and other Asian nations, the Japanese manufacturer said.

Toyota Motor Corp. dethroned General Motors as the world's No. 1 automaker in worldwide vehicle sales in 2008 — a position GM held for nearly eight decades. Since then, General Motors, now called General Motors Co., was bailed out by the U.S. government and underwent restructuring after a brief period in bankruptcy protection.

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Industry Economist Optimistic About Recovery

WASHINGTON AP — Industry economists say the U.S. economic recovery is gaining strength, with more firms expressing positive hiring plans than in over a decade.

A new survey from the National Association for Business Economics finds that economists are more hopeful about overall economic growth, the job market and demand for companies' products and services by many measures than they have been since the start of the Great Recession.

The survey found that business decisions are now "being driven by the fundamentals of an improving economy," said Shawn DuBravac, an economist with the Consumer Electronics Association who analyzed the findings.

The quarterly survey includes the views of 84 economists for private companies and trade groups who are NABE members. The data are reported by broad industry group. Many results are expressed as Net Rising Index, or NRI — the percentage of panelists reporting better outlooks minus the percentage whose outlook is bleaker.

The number of economists who saw hiring by their firms increasing over the next six months was 42 percent, compared with 7 percent who expected to lay off workers. The NRI of 35 was the highest in the 12 years that the question has been asked.

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Culture Change Led To Success At Ford

DEARBORN, Mich. (AP) — In every boom cycle of its 107-year life, Ford Motor Co. became complacent, unprepared for the inevitable bust in the auto business.

From the 1920s, when Ford lost its dominant position in the U.S. because it was slow to update the Model T, to the 2000s, when it squandered billions in SUV profits and narrowly avoided bankruptcy, the company stuck with some strategies too long and didn't pay enough attention to others.

"You often hear people at Ford say we can't manage prosperity. I think it's really quite different than that. It's that we stop changing," Executive Chairman Bill Ford told The Associated Press in a recent interview.

Now, coming off a great 2010, Executive Chairman Bill Ford and Alan Mulally, the man who replaced Ford as CEO four years ago, say they are ready to break that cycle. Mulally has transformed the company into a simpler, nimbler organization that's ready to react to change more quickly. Management experts aren't so sure.

Thanks to strong new products and stumbles at rivals like General Motors and Toyota, Ford saw the industry's biggest increases in market share. It had the best-selling vehicle — the F-Series pickup — and ended 2010 with its second straight annual profit. Ford's U.S. sales rose 20 percent, almost double the industrywide increase.

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$4 Gas On The Way?

Three dollars a gallon for gasoline may start to sound good by comparison this summer. With rising global demand for oil, gas could reach $4 a gallon in the coming months in some states, according to fuel forecasters.

That means flying, shipping a package and ordering a pizza could all grow more expensive as companies pass along their higher energy costs. Over time, those higher fuel prices will work their way into almost all consumer goods, from groceries to clothing, as items travel by truck, train or plane before reaching the store.

For a few months, the price will likely stay stable or drop a bit from $3 per gallon as people come off their longer holiday trips and hunker down in the winter, said Jessica Brady, spokeswoman for AAA in Tampa. "Once we hit spring," she added, "you'll see those prices for crude oil and retail gas prices go up."

Average gas prices in Florida have been rising in recent weeks, topping $3 for regular last month. The state tends to hover right around the national average, Brady said. But with a relatively weak U.S. dollar, the relative price of crude oil is higher.

Gasoline expert Fred Rozell predicts that 15 states, including Alaska, Hawaii, Connecticut and Rhode Island, will see gasoline prices top $4 a gallon by Memorial Day.

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Tokyo Steel To Raise Steel Prices 10%

TOKYO, Dec 20 (Reuters) - Tokyo Steel Manufacturing Company said on Monday it will raise prices of all its steel products by around 10 percent or 6,000-8,000 yen ($71-95) per tonne to offset the higher cost of scrap, its major input.

Tokyo Steel, Japan's biggest construction steel maker, said it will raise H-beam prices by 12 percent or 8,000 yen per tonne to 75,000 yen in January, and that of checkered H-beam steel by the same amount to 85,000 yen.

Hot coil prices will also rise 8,000 yen, to 67,000 yen.

"While the demand outlook is still uncertain only raw materials costs are going up," Naoto Ohori, managing director of Tokyo Steel, told a news conference.

"The higher raw material costs are pushing up our costs."

It will be the firm's first across-the-board price rise in five months.

Rival Nippon Steel Corporation, the world's fourth-biggest steel maker, this month notified distributors of a price rise of 4 percent, or 3,000 yen per tonne, for H-beam steel, citing higher raw material costs and a decline in inventories to a record low level, according to media reports.

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Manufacturing in Philadelphia Area Grows

Manufacturing in the Philadelphia region expanded in December at the fastest pace since April 2005 as orders and the factory workweek increased.

The Federal Reserve Bank of Philadelphia’s general economic index unexpectedly rose to 24.3 from 22.5 last month. The gauge was forecast to decrease to 15, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

Growth in China and other emerging economies, corporate purchases of new equipment and stronger consumer spending are bolstering production. Manufacturing may keep powering an economic recovery that Fed policy makers this week said has been slow to create jobs.

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Congress Sends $801 Billion Tax Cut Bill to Obama

WASHINGTON — Congress at midnight Thursday approved an $801 billion package of tax cuts and $57 billion for extended unemployment insurance. The vote sealed the first major deal between President Obama and Congressional Republicans as Democrats put aside their objections and bowed to the realignment of power brought about by their crushing election losses.

The bipartisan support for the tax deal also underscored the urgency felt by the administration and by lawmakers in both parties to prop up the still-struggling economy and to prevent an across-the-board tax increase that was set to occur if the rates enacted under President George W. Bush had expired, as scheduled, at the end of the month.

Administration officials said Mr. Obama would sign the package into law on Friday.

The final vote in the House was 277 to 148 after liberal Democrats failed in one last bid to change an estate-tax provision in the bill that they said was too generous to the wealthiest Americans and that the administration agreed to in a concession to Republicans. The amendment failed, 233 to 194.

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Economic Recovery or Wishful Thinking?

According to the following mainstream media sources, economic data seems to be pointing toward a broad-based recovery.  Here's what some of them had to say:

The AP (12/2, Rugaber) reports, "The economy is showing new life in the final months of the year. ... The stock market had its best day since September after a report that the private sector hired the most workers in three years." US factory output "grew for the 16th straight month in November." The Institute for Supply Management "said its index of manufacturing activity came in at 56.6 for November," and "a new survey by the Federal Reserve finds that almost all of the nation -- 10 of its 12 regions -- is growing economically."

Bloomberg News (12/2, Willis, Homan) reports, "Stocks rallied across the globe after reports showed industrial strength extending to China and Europe, spurring orders at companies such as Dow Chemical Co. Holiday sales gains indicate factories stand to benefit further from a pickup in consumer spending that would allow the recovery to become more broad-based."

According to the Washington Post /Bloomberg (12/2, Zumbrun), "Five Fed banks, including Boston and San Francisco, said the economy grew 'at a slight to modest' rate, while five others, including New York and Chicago, reported a 'somewhat stronger pace of economic activity.' Conditions were reported as 'mixed' in the Philadelphia and St. Louis regions. The report, based on anecdotal information, signals an improvement in the economy after sluggish growth in the summer prompted the Fed last month to announce $600 billion in asset purchases to help cut unemployment persisting near 10 percent."

According to the Wall Street Journal (12/2, Dougherty, Lahart, subscription required), optimism on the outlook for the US economy is bolstered by new data showing that growth is being fueled by increased demand rather than federal stimulus spending.

Another Wall Street Journal article (12/2, Barkley, Sparshott, subscription required) notes that the Fed said, "Expectations for the holiday shopping season were generally positive, with several districts expecting higher sales when compared to year-ago levels." However, according to the Fed, "Employers are waiting for clearer signals of expanding business prospects before adding significantly to payrolls."

Overall, I think it's a little wishful thinking.  We still have millions of Americans without jobs and many that are working are in positions that leave them highly uncompensated.

Also, the national debt continues to grow and the dollar continues to weaken.  Gold and silver continue to climb as any shred of confidence investors had in our fiat currency is pretty much but a vapor.

But really, what is the definition of an "economic recovery"?  If it's a simple as looking at a chart with some numbers going in one direction rather than another... then maybe we have a recovering economy.

Only time will tell but the economy is what it is and isn't turning into the BOOMING economy of the early 2000's anytime soon.




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How Germany Got It Right On The Economy

BERLIN

It may be turkey week in America, but it's goose month in Germany. In many restaurants, you can get goose in your salad and goose in your soup to go with your goose entree. Diners fairly honk their way through November.

But then, Germans have something to honk about. Germany's economy is the strongest in the world. Its trade balance - the value of its exports over its imports - is second only to China's, which is all the more remarkable since Germany is home to just 82 million people. Its 7.5 percent unemployment rate - two percentage points below ours - is lower than at any time since right after reunification. Growth is robust, and real wages are rising.

It's quite a turnabout for an economy that American and British bankers and economists derided for years as the sick man of Europe. German banks, they insisted, were too cautious and locally focused, while the German economy needed to slim down its manufacturing sector and beef up finance.

Wisely, the Germans declined the advice. Manufacturing still accounts for nearly a quarter of the German economy; it is just 11 percent of the British and U.S. economies (one reason the United States and Britain are struggling to boost their exports). Nor have German firms been slashing wages and off-shoring - the American way of keeping competitive - to maintain profits.

One key to Germany's miracle is the mittelstand, as the family-owned small and mid-size manufacturing firms that dominate the economy are known. Last week, I visited AWS Achslagerwerk, a factory of one such firm, in the farmlands of Saxony-Anhalt, about two hours west of Berlin. As in many such companies, this factory turns out specialized products: axle-box housings for Chinese and German high-speed trains, machine tools requiring climate-controlled precision measurement. With annual revenue of 24 million euros, the factory has won a significant share of the world market, though it employs only 175 production workers.

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Commodities Advance to 25-Month High


Commodities extended a rally to a 25- month high as the global appetite for crops outpaced dwindling supplies, and precious metals surged on demand for a haven from slumping currencies.

The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose as much as 1.6 percent to 320.38, the highest level since Oct. 6, 2008. The gauge has jumped 21 percent since Aug. 31, led by cotton, sugar and silver.

Last week, the dollar slumped to the lowest level since December against a basket of major currencies on plans by the Federal Reserve to expand a U.S. stimulus program by buying more debt. The euro fell today amid debt woes in the region, sending gold to a record high. Soybeans and cotton climbed, partly on mounting demand in China.

"The fundamentals for most commodities are very strong, and the global currency situation, not just the dollar but also the yen and sterling and euro, are like pouring gasoline on a fire," said James Dailey, who manages $145 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania.

The CRB index rose 1.2 percent to settle at 319.11. The UBS Bloomberg Constant Maturity Commodity Index advanced 1.4 percent to 1,588.37. Earlier, the gauge of 26 prices reached 1,603.01, the highest level since June 17, 2008.

Raw sugar extended a rally to a 29-year high on concern that India may cap exports to boost domestic supplies after a smaller-than-expected cane harvest. Soybeans also gained.

After the close of regular trading, silver futures dropped from a 30-year high and gold declined after CME Group Inc.'s Comex unit raised margin requirements.

 

 

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Manufacturers Lay Out Expectations For New Congress


Corporate chieftains and small-business owners have compiled long wish lists for the wave of Republicans entering Congress, amid uncertainty about where a full roster of incoming conservatives stand on key business issues.

At the same time, business executives said Tuesday's Republican gains should change the Obama administration's approach to corporate America. Mr. Obama, who has signed a law to aid small businesses, meeting with Seattle entrepreneurs in August.

"Voters have resoundingly rejected more government spending, higher taxes, and more burdensome regulations that have caused crippling uncertainty for businesses," said U.S. Chamber of Commerce president Tom Donohue. The Chamber poured up $50 million into the campaign, 90% of it in support of Republican candidates.

Republicans took control of the House of Representatives Tuesday night, and narrowed the Democratic majority in the Senate.

Voters appear to be divided over what the new Congress should tackle first, according to exit polls. Cutting taxes was the top priority of 19% of those polled, while 36% of them preferred spending to create jobs and 39% wanted first to reduce the federal deficit, according to a National Election Pool exit poll conducted by Edison Research. Six percent of voters couldn't decide what they would like Congress to tackle first.

Obama administration officials and congressional Democratic leaders have called for an extension of the lower income tax rates for individuals earning less than $200,000 and couples earning less than $250,000. The tax rates for filers earning more would revert to pre-2001 levels, under Mr. Obama's plan.

Republicans say now isn't the right time to raise taxes on the wealthy, many of whom are business owners who they argue could use money they keep to create jobs.

Both Democrats and Republicans aimed political and policy messages at small business in the run-up to the vote. President Barack Obama and congressional Democrats pushed through a series of tax breaks and a $30 billion lending program that was the centerpiece of a Small Business Jobs Act Mr. Obama signed in September at a White House ceremony attended by supportive entrepreneurs.

Some business leaders worry that some of their priorities could be rejected by tea-party legislators, whose small-government stance was a key to their election.

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America Needs Policies That Unleash Free-market Forces

In a blatant effort to bolster his Democratic Party's election prospects, House Majority Leader Steny H. Hoyer has touted a new manufacturing agenda for America. Mr.Hoyer's plan fails at the outset because our global competitors do not set manufacturing agendas year to year or election to election like we do. They plan for the next generation. If we are to compete and win, so must we.

I believe this strongly because, unlike my peers in Congress, I am not a politician, but a businessman. Before coming to Congress last year, I helped lead a manufacturing firm that produced automation components, such as the damper that enables your airline seat to recline or the precision assembly parts that likely produced your bluejeans. The shock absorbers at the end of the subway line under the U.S. Capitol bear our company's logo.

Though America is still the world's largest manufacturing economy ($1.72 trillion in 2009), the jobs picture tells a different story. In the past decade, nearly 6 million manufacturing jobs have been lost in the United States, with 272,000 of them in New York state.

The plain truth is that U.S. policy and policymakers bear much of the blame.

Our poor policy decisions start with taxes. At 39.21 percent, America's anti-competitive corporate tax rate is the world's second-highest, topped only by Japan's. While politicians in Washington bash American companies and workers who create value, our foreign competitors have beaten us to the pro-growth punch.

The average corporate rate for the 30 largest industrial economies has fallen from 37.6 percent in 1996 to 26.3 percent today. In a recent study of the research and development (R&D) incentives of eight leading Western economies, the United States finished dead last. Even France boasts a better R&D tax regime.

Meanwhile, we burden U.S. workers with a 39 percent corporate tax rate, fail to set a long-term R&D tax policy, and now Mr.Hoyer's Democrats are planning to increase capital gains and dividend taxes. This is no way to run tax policy.

Even with a competitive tax regime, the success of U.S. manufacturers still depends on U.S. brainpower. Yet U.S. universities take our best and brightest and produce an overabundance of personal-injury lawyers and Wall Street executives, not the engineers we need to compete. Our competitors are smarter about smarts. Sixty-three percent of Japan's undergraduate degrees are in engineering fields. China graduates 56 percent of its students in engineering. South Korea, 46 percent. The United States trails at 32 percent. We need to do better at the brain game.


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Skilled Labor Shortage Frustrates Employers


(CBS)  Job openings at businesses fell to 2.54 million in June from 2.6 million in May, meaning there is now five unemployed workers on average for every job opening.

There's a brighter spot in manufacturing, where some companies are looking for workers, CBS News Correspondent Cynthia Bowers reports.

On a quick tour of her family's factory, Linda Fillingham proudly shows off employees making the metal parts that go into some of America's biggest machines.

What's holding her machine shop back isn't a shortage of work. Instead, it's a shortage of workers, whom she's willing to pay $13 to $18 an hour.

"Thirty to 40 we could use right now," Fillingham said.

And she's not alone. The government says there are 227,000 open manufacturing jobs, more than double the number a year ago. One hundred eighty-three thousand have been created since December, the strongest seven-month streak in a decade.

Fillingham said it's hard to fill these jobs because they require people who are good at math, good with their hands and willing to work on a factory floor.

She's had to resort to paying people to learn on the job, like 25-year-old Matthew McDannel. The average manufacturing worker is more than twice his age.

"Maybe the work's too hard," said McDannel. "Maybe it's too hot. Maybe people just think about it and they're just, like, 'Oh, I don't want to do that.'"

By the year 2012 it's estimated this country will be three million skilled workers short, and it's not just in manufacturing sector. A recent survey found 22 percent of American businesses say they are ready to hire if they can find the right people.

"They're dipping their toes in the water, seeing if it's the right time to hire, but you also have potential employees doing the same thing and testing that employer to see if it's the right place for them," careerbuilder.com's Jason Ferrara said.

Fillingham hopes to convince a new generation that manufacturing jobs aren't a part of the past but instead the foundation of the future.

"You need to come up to bat and play the game if you want to be in it," said Fillingham. "It's there if you want to do it."

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Chip Shortage Set Off By Recession Makes Smart Phones More Scarce

NEW YORK (AP) — The seemingly recession-proof smart phone is suffering from a side effect of the rough economy: Manufacturers simply can't build enough of the gadgets because chip-makers that rolled back production last year are now scrambling to play catch-up.

The chip shortage means Apple Inc.'s rivals are having trouble making enough phones to compete with the iPhone, a problem expected to persist through the holidays. It's also affecting wireless carriers, some of which are seeing delays in improving their networks, and it could even raise computer prices.

There isn't an across-the-board shortage of chips, but rather problems with certain components here and there. If just one of the 20 to 30 critical chips that go into a smart phone is unavailable, the whole production line screeches to a halt.

Sprint Nextel Corp., for instance, couldn't satisfy demand for HTC Corp.'s EVO 4G, the first phone to use a faster "4G" network, in parts of the country. Motorola Inc. said shortages of a wide range of chips, from memory to camera sensors to touch-screen controllers, are contributing to problems supplying enough of the new Droid X phones to Verizon Wireless. The carrier's online store reports a two-week wait for shipping orders.

The chips that go into smart phones compete for production capacity with other chips at the gigantic factories run by contract manufacturers such as Taiwan Semiconductor Manufacturing Co. and United Microelectronics Corp. Makers of a vast array of electronics, from TVs to data center switches, also depend on the factories.

The chip-making industry had a tough start to 2009. February sales were only $14.2 billion, down 30 percent from the year before, according to the Semiconductor Industry Association.

Although sales sprang back later in the year, manufacturers were spooked and reined in investment in chip factories. Capital spending plunged 41 percent to $25.9 billion in 2009, after dropping 31 percent the year before, according to research firm Gartner Inc. Total chip production capacity shrank.

Now the factories are having trouble scaling up production fast enough. The chip factories, or "foundries," are running at 96 percent capacity, up from 56 percent at the depth of the recession, according to the SIA.

"The semiconductor guys are really continuing to operate on all cylinders," said Linley Gwennap, president of research firm The Linley Group.

Gartner predicts worldwide investment in the chip industry zooming 84 percent this year to $47.5 billion. That forecast is up from March, when it looked for a 56 percent increase.

While investment is recovering, it takes months to set up new production lines and upgrade existing ones. That's why executives see shortages lasting until next year. Gwennap also sees caution in the industry because the global economic recovery is starting to look quite tentative.

"Even where companies are facing shortages, they're saying 'Nah, I'm not sure I want to invest right now, because demand could turn down any minute.' That makes for a very difficult environment," he said. "In normal times, companies would be hiring, investing in more equipment and factories and trying to increase supply, but these aren't normal times."

Though consumers may have to wait for new phones, they're unlikely to notice price increases. Phone prices are heavily subsidized by carriers, and competition in the industry means it's likely someone in the supply chain will absorb higher prices for the chips.

However, research firm iSuppli warns that prices for PCs could rise this year because of short supplies of memory chips. The prices for these commodity chips are highly volatile. Smaller memory-chip manufacturers need to replace factory equipment, and tool suppliers are struggling to keep up, iSuppli said.

Makers of computer and phone networking equipment were the first to report problems this spring. They continue to face constraints, which means trouble for U.S. wireless carriers that are struggling to increase network capacity to cope with data traffic from the iPhone and other smart phones.

Alcatel-Lucent and LM Ericsson AB, the two largest makers of equipment for U.S. phone companies, have both reported problems making deliveries. They're both suppliers to AT&T Inc., which has complained that it can't beef up its wireless data network as fast as it would like, as it's trying to deal with traffic from the iPhone.

Computer networking giant Cisco Systems Inc. is also feeling the pinch and expects problems to continue through the year.

"We continue to see challenges in procurement of components this quarter," Cisco CEO John Chambers said recently. "Supplier lead times now appear to have stabilized, but are still longer than we would like."

Apple is an exception. Although the company can't keep the iPad and iPhone 4 in stock, it blames that on demand outstripping assembly line capacity, not on problems procuring the right chips.

That may be partly "dumb luck" on Apple's part, Gwennap said, but it could also be a case of it being "good to be the king."

"As a chip supplier, you're going to service your best customers first," he said. "If my choice is to try to make Apple happy or some smaller customer of mine, I might take all of my supply and give it to Apple."

Read More About Chip Shortage Set Off By Recession Makes Smart Phones More Scarce...

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Obama Signs Manufacturing Enhancement Act


In 1980, around the time that globalization exploded and free trade agreements became more prevalent, the U.S. had 19.2 million manufacturing jobs. Since then, the sector’s total employment has fallen to just 11.6 million as jobs are outsourced to low-wage nations, like Mexico and China.

President Barack Obama on Wednesday signed into law a piece of legislation designed to ease costs for U.S. manufacturers by reducing tariffs on raw materials and other component parts not readily available in America.

The Manufacturing Enhancement Act of 2010 passed both houses of Congress with overwhelming bipartisan support. In the Senate, the bill passed unanimously with a roll call vote. In the lower chamber, only 43 lawmakers voted against the measure.

The president sought to portray the measure as part of his administration and congressional Democrats’ commitment to restoring the nation’s struggling manufacturing base.

Under the bill, U.S. manufacturers were forced to apply for a tariff reduction or suspension. The request was then reviewed by the Obama administration, two congressional committees and the U.S. International Trade Commission. If there was no domestic opposition, the relief was granted. However, the suspensions are only temporary and can be restored if an American business begins manufacturing a product covered under the bill.

According to the Congressional Budget Office, the measure would save U.S. companies $298 million over three years and reduce the federal deficit by $5 million over the next decade.

The bill will provide a badly needed boost to the nation’s manufacturing sector, according to The National Association of Manufacturers, which claims it will boost output by $4.6 billion and create 90,000 jobs.

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China Surpasses Japan as World's No. 2 Economy


Japan lost its place to China as the world's No. 2 economy in the second quarter, as receding global growth sapped momentum and stunted a shaky recovery.

Gross domestic product grew at an annualized rate of 0.4 percent, the government said Monday, far below expectations of 2.3 percent growth in a Kyodo news agency survey.

The figures underscore China's emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its worldwide influence is growing.

China has surpassed Japan in quarterly GDP figures before, but its passing of Japan in the second quarter is likely to mark the period in which the lead became insurmountable.

China's economy will almost certainly be bigger than Japan's at the end of 2010 because of the big difference in each country's growth rates. China's economy is growing about 10 percent a year; Japan's is forecast to grow 3 percent this year.

Japan's nominal GDP, which is not adjusted for price and seasonal variations, was worth $1.286 trillion in the April-to-June quarter, compared with $1.335 trillion for China. The figures are converted into dollars based on an average exchange rate for the quarter.



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iPad Leads to Innovation in Manufacturing Warehouse


It’s a good bet that Steve Jobs and the folks at Apple haven’t yet cataloged the ways in which their new iPad device is being put to use in manufacturing circles. And good money says a lot of manufacturers probably don’t see the fast-selling tablet computer as anything more than a fancy distraction from weightier business matters.

But in Elkhart, IN, Tim Markley is already thinking about how he will use the iPad next. The president of Markley Enterprises, a manufacturer of sales and marketing support products, sees the Apple tablet computer as a way to make warehouse operations and supply chain execution more efficient. The company has already outfitted its swing-reach forklifts with iPads, a move Markley says has improved the put-away process. Now forklift operators, instead of jotting down notes with a pen and paper and then walking to a terminal to log put-away locations, simply tap their iPad screens to enter the data into the warehouse management system on the spot. The connection is facilitated by the SmartTurn WMS (now part of RedPrairie), which has been architected to work with the iPad. The operator’s input updates the WMS in real time, letting other workers see put-away locations immediately.

To measure the effects of this iPad-based automation, Markley outfitted operators with pedometers. So far, they’re taking 30% fewer steps to complete their tasks, he says. That may put a kink in the corporate fitness program, but it certainly boosts productivity.

Markley may be something of an outlier in a PC-dominated industry, having run his company on Mac computers for years and purchased “almost every Mac device ever made.” But he’s not the only one who sees industrial potential in a device that has been hailed mainly as a consumer play. In a recent research note, analysts at AMR Research/Gartner said that with “some enhancement,” the iPad could facilitate data integration from an enterprise system, such as MRP, ERP, or MES, to a more localized system, such as a database, machine tool control software, or order or warehouse management application. Although it will need help from application developers and others, the analysts wrote, “the iPad just might be a ‘game changer’ for manufacturing operations.”

Markley, for one, is just getting started. He plans to add iPads to the carts his workers use for picking. The administrator of the WMS will decide which orders to fill, output that plan to a spreadsheet, and e-mail a customized version to each iPad, using the device’s unique e-mail address. The picker will open the spreadsheet on the iPad and find his or her work instructions.

The process has been facilitated by the growth of cloud computing, according to Markley. The SmartTurn WMS software is cloud-based and platform-agnostic. As more businesses embrace cloud computing, he said, “all of your [applications] become platform-independent, because as long as you can access the Web, you’re there.”

Of course, the iPad’s durability will need some testing in industrial settings, but Markley says they are working without incident so far.

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Manufacturers Concerned With Slowdown in Economic Recovery

The latest economic report on gross domestic product (GDP) shows that the pace of our nation’s recovery has slowed to 2.4 percent from 3.7 percent in the first quarter. The slowdown is further evidence of the fragile state of the economy and the urgent need for policies that encourage job creation and competitiveness. The National Association of Manufacturers (NAM) today reiterated its call for Congress, candidates for office and opinion leaders to support and publicly endorse the NAM’s comprehensive Manufacturing Strategy. 

Factors that contributed to the second-quarter slowdown included very modest growth in consumer spending and less support from inventories. The report also showed a surge in imports, highlighting the fierce competition that U.S. manufacturers face in selling products overseas and in our domestic market. 

 “We think this country needs a battle plan, which is why we released our comprehensive ‘Manufacturing Strategy for Jobs and a Competitive America’.  There is a great deal of uncertainty in today’s business environment – from tax, trade and energy policy to health care reform and new regulations – and this uncertainty is hurting manufacturers’ ability to create jobs,” said NAM President and CEO John Engler. “The manufacturing sector has led the recovery to date and is crucial in our continued economic security and prosperity.  To compete, we need to move forward with the comprehensive approach outlined in our Manufacturing Strategy. We can not afford new burdens and added cost.” 

For the complete Manufacturing Strategy, please visit www.nam.org.

 

 

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Dollar Trades Near Lowest Since November

The dollar traded near its weakest since November against the yen on signs the U.S. recovery is losing momentum and after Former Federal Reserve Chairman Alan Greenspan said the slowdown feels like a “quasi recession.”

The Dollar Index was close to a three-month low before a report today that may show U.S. manufacturing growth slowed in July, adding to evidence the Fed will keep interest rates near zero. Australia’s dollar rose against 15 of its 16 most-traded counterparts as reports yesterday showed China’s manufacturing expanded for a 17th month and South Korea’s exports increased for a ninth month, boosting demand for higher-yielding assets.

“The U.S. economy is certainly losing some steam,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “We are seeing bond yields slide, dragging the U.S. dollar lower in tandem.”

The dollar traded at 86.49 yen at 9:07 a.m. in Tokyo from 86.47 yen in New York on July 30, when it reached 85.95 yen, the lowest level since Nov. 30. The U.S. currency was at $1.3056 per euro from $1.3052. Australia’s dollar rose 0.4 percent to 90.77 U.S. cents. The yen bought 112.92 per euro from 112.84 last week, when it touched 112.03, the strongest since July 23.

The yen fell against 15 of its 16 most-traded counterparts after Japanese Finance Minister Yoshihiko Noda said in Tokyo excessive currency movements are bad for the economy and he’s closely watching financial markets.

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Supply Chain Woes Threaten Global Recovery

Large industrial companies around the world are defying fears of a “double-dip” recession, reporting signs of increasing strength in demand and striking a cautiously optimistic note about the growth of the global economy.

Many industrial groups reported better-than-expected profits for the second quarter and raised their full-year growth forecasts. However, big manufacturers could be held back by their inability to secure vital components from supply chains weakened by the downturn and unable to increase production fast enough to meet demand.

Caterpillar, FedEx and Honeywell in the US, Honda and Hitachi in Japan, and Siemens in Europe all raised their outlooks last week, while results from companies such as Boeing, Nissan, BASF and VW exceeded analysts’ consensus forecasts.

Yet some suppliers to large industrial multinationals that cut costs sharply in the early part of the downturn are finding it hard to increase production capacity rapidly, while many report that financing remains expensive and difficult to access. Manufacturing supply chains in the US and Europe are showing signs of straining to cope with demand.

 

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Tin Gains to Highest Level Since Lehman Failure in 2008


Tin, the best performing industrial metal this year, climbed to the highest level since the collapse of Lehman Brothers Holdings Inc. in September 2008 as shrinking inventories signaled steady demand.

The metal for three-month delivery advanced as much as 2.1 percent to $19,800 a metric ton on the London Metal Exchange, and traded at $19,500 at 1 p.m. in Shanghai. That’s the highest intraday price since Sept. 3, 2008, before Lehman’s failure triggered a credit-market seizure and global recession.

LME inventories of the metal used in packaging, solder and cans have shrunk 43 percent this year to 15,370 tons, the lowest level since June 2009. A rally in equity markets, declines in the dollar and optimism that the economic recovery remains intact helped an index of London-traded metals to post the biggest weekly gain since February last week.

“The contractions in stockpiles underline improving demand against supply,” Ran Jun, an analyst at researcher Beijing Antaike Information Development Co., said today. Demand for tin products and electronics has recovered a lot from western countries this year, Ran said.

Exports of tin from Indonesia, the world’s largest producer, dropped 16 percent this year through May compared with the same period last year, Barclays Capital said on July 13. Outbound shipments fell 25.7 percent in June from a year ago, according to Indonesia’s trade ministry.

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China Is Number 1... at Consuming Energy


BEIJING (AFP) – China on Tuesday rejected an assessment from the International Energy Agency that it had surpassed the United States to become the world's top energy consumer, calling the data "unreliable".

The Financial Times and the Wall Street Journal cited a top IEA official as saying the Asian giant had taken over the top spot in 2009, earlier than expected.

According to the IEA, China consumed 2.252 billion tons of oil equivalent of energy in 2009, from sources that included coal, nuclear power, natural gas and hydroelectric power -- about four percent more than the United States.

But an official with China's National Energy Administration told reporters the report was flawed.

Read More About China Is Number 1... at Consuming Energy...

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Toyota Settles Patent Dispute with Hybrid Technology Maker Paice


NEW YORK (AP) — Toyota Motor Corp. said Monday it has settled a years-long dispute with a U.S. company that had claimed the Japanese automaker used its technology without permission in its hybrids. The deal ends a squabble that had briefly threatened to block the Prius from being sold in the U.S.

Toyota and Paice LLC said they have settled their patent dispute and agreed to have all lawsuits between them dismissed. The terms were confidential, the companies said. No financial details were disclosed.

"After six years of litigation, we are pleased to reach a settlement with Toyota," said Frances Keenan, chairman of the Paice board, in a statement.

Read More About Toyota Settles Patent Dispute with Hybrid Technology Maker Paice...

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Unemployment Report Indicates Sluggish Economic Recovery

The loss of 125,000 jobs in June led broadcast network newscasts Friday evening, and gets significant and universally negative coverage on the wires and in this morning's newspapers. The CBS Evening News (7/2, lead story, 3:40, Pelley) called it "troubling news about jobs and the impact that's having on our economic recovery."

Though the unemployment rate "actually dropped from 9.7 percent to 9.5 percent," that is "partly because the labor force shrank by more than 650,000 people and when people stop looking for work, the government drops them from its unemployment count." CBS (Mason) said the numbers "suggest that the recovery, which only a few months ago appeared to be picking up speed, now seems to be sputtering."

        The AP (7/3, Aversa, Rugaber) reports the private sector "added just 83,000 jobs for the month. Looked at from that angle or almost any other, from a teetering housing market to falling factory orders, the recovery is limping along as it enters the year's second half. And that is when the benefits of most of the government's stimulus spending will begin to wear off."

The loss "reflected the end of 225,000 temporary jobs" with the US Census Bureau. AFP (7/3, Beatty) says the White House "has warned that unemployment will remain high for the rest of the year, while polls show it is a crucial issue with voters."

        McClatchy (7/3, Hall) reports, "Friday's mixed jobs report from the Labor Department was the latest in a series of signs that the US economy remains locked in a frustrating cycle of crippled growth that's better than the recent recession but not strong enough to boost employment much."

        The Financial Times (7/3, Politi, subscription required) added that one of the few positives that can be gleaned from the report is that the unemployment rate declined from 9.7% in May to 9.5% in June, the lowest level since July 2009. Still, this decline is a result of the job market shrinking, meaning that more Americans remain waiting for the recession to get better.

 Bloomberg News (7/3, Homan, Matthews) reports economists were predicting a 9.8 percent unemployment rate.

Read More About Unemployment Report Indicates Sluggish Economic Recovery...

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GM Seeks $5B Credit Line for Slowdown, to Repay Debt


General Motors is seeking a line of credit of at least $5 billion from banks to enable it to repay debt and prepare for another decline in U.S. auto sales, said a person familiar with the talks.

GM had $23.3 billion of cash and about $14 billion of debt as of March 31, according to its first-quarter financial report. Although the automaker repaid the final $5.8 billion of government loans in April, the federal government still owns a 61% stake. A public stock offering, expected to begin later this year, would enable the government to sell at least some of its shares in GM.

GM's U.S. sales have risen 14% in the first half of this year from a year earlier. Its market share fell to 19.2% from 19.6%, despite shedding four brands -- Hummer, Pontiac, Saab and Saturn.  In the first quarter, GM earned an $865-million profit.

The automaker is restructuring unprofitable European operations, but growing in China, Russia, India and Brazil, where most of the auto industry's growth is to occur in the next decade. GM sold more cars in China in the first half of 2010 (1.21 million) than in the U.S. (1.08 million).

It also has given stock valued at $6.66 million to 14 top managers, including $1.33 million worth to Chairman and CEO Ed Whitacre according to a filing with the Securities and Exchange Commission.

Seeking a new line of credit can prepare GM to operate without government assistance.

Read More About GM Seeks $5B Credit Line for Slowdown, to Repay Debt...

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Copper on the Rebound as US Manufacturing Expands

Bloomberg

Copper prices rose for the first time in three days after a report showed that U.S. manufacturing expanded for a ninth straight month, easing concern that the global economic recovery is faltering.

The Institute for Supply Management-Chicago Inc. said today its business barometer in June stood at 59.1. Figures greater than 50 signal growth. Commodity and equity market rallied after the report. This quarter, the metal fell 17 percent, the first drop since the end of 2008.

“Copper will be incredibly volatile in the coming months,” Spencer Patton, the chief investment officer of Steel Vine Investments in Chicago, said in an e-mail. “Global growth will be self-sustaining, but slower.”

Copper futures for September delivery rose 2 cents, or 0.7 percent, to $2.9505 a pound on the Comex in New York.

Earlier, futures fell as much as 2 percent. A report today showed that U.S. private-sector employers added fewer jobs than forecast. China’s benchmark stock index fell to a 14-month low on mounting concern that the nation’s expansion is easing. China and the U.S. are the world’s top metal buyers.

In June, copper declined 5 percent. Futures are down 12 percent this year.

“Copper’s drop is indicative of a significant downshift coming in the back half of this year for industrial growth,” said James Dailey, who manages $145 million at TEAM Financial Asset Management LLC in Harrisburg, Pennsylvania.

The price may fall to as low as $2.30 a pound by the end of the year, Dailey said.

Copper for delivery in three months rose $21, or 0.3 percent, to $6,515 a metric ton ($2.96 a pound) on the London Metal Exchange.

Aluminum, zinc, lead and nickel also climbed on the LME. Tin dropped.

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As Chinese Wages Rise, Automation Is Replacing Workers


Bloomberg News (6/21, Lee) reported, "New minimum wage laws, a looser yuan and worker strikes like those at Honda Motor Co. are raising costs at factories in China's Pearl River Delta, prompting companies to increase automation of assembly lines." Manufacturers such as "Foxconn Technology Group, Nissan Motor Co.'s Chinese venture and VTech Holdings Ltd. said they are investing in factory equipment to reduce their reliance on labor.

Wages in the region called the world's factory floor increased 17 percent in the past six months," data indicate. An official with INFACT Global Partners said, "Factories need to think seriously about how they produce more with less," and "need to begin to enhance their productivity so that they are in a position to remain competitive."

To read the complete article click here.

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What's happening with Copper?

Copper prices have soared 90% in 2009!  This has impact on almost any device that uses electricity since most electrical contacts, connectors, pins, and leadframes are made using copper alloys.  But reports indicate that prices are on their way down for 2010...

Read More About What's happening with Copper?...

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US Manufacturers at a global disadvantage due to increasing costs of taxes, health care, & pensions.

Manufacturers, including precision metal stampers and their customers, continue to generate more economic activity per dollar of production than any other business sector in the United States.  We also drive innovation by conducting nearly half of all research and development, creating the bulk of technology in our nation.  However, we face rising costs for health care, pensions, corporate taxes, and raw materials that impact our competitiveness in a global, interconnected marketplace.

This new handbook also notes that we are not preparing our students and workers with the correct skills to help us compete globally and until we correct this we will continue to see our global market share erode.

Read More About US Manufacturers at a global disadvantage due to increasing costs of taxes, health care, & pensions....

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Copper Supply Shortage Seen Looming

Read Matt Vincent's Blog -- Copper supply shortage seen looming:  According to reporting in UK trade Publication Mining Weekly.com: A copper supply shorage is looming, but top tier copper resources that could fill the supply gap are not only hard to find, but would take time to turn to account.  A deficit of 88,000 tons is likely in the short term with a 10 million ton shortage by the year 2020.

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Die-Tech's CEO Featured on MANTEC Website

Mantec features Die-Tech, the precision metal stamping located in York Haven, PA, as one of their sucessful partnerships. 

Read More About Die-Tech's CEO Featured on MANTEC Website...

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Die-Tech Wins Small Business Energy Grant

Governor Rendell announced the 53 companies that have qualified for grants under the Small Business Energy Efficiency Grant Program that closed May 1, 2009.  This program is the first under the $650 million Alternative Energy Investment Fund signed into law by the Governor last July.  It provides small businesses of 100 employees or less with the opportunity to receive a 25 percent reimbursement grant of up to $25,000 to implement qualified energy efficiency improvements. 

Die-Tech is the only corporation in York County to qualify for a grant under this program.  We will reduce our electricity consumption by replacing T-12 fluorescent tubes with high-efficiency LED tubes in existing fixtures throughout the building.  The LED tubes use 56% less energy, have a life expectancy that is five times greater than that of a fluorescent tube, while providing the same quality and amount of illumination.

The LED tubes also allow the Die-Tech to keep existing fixtures, saving capital and reducing waste going to landfills.  Die-Tech sees this as a win-win project and is pleased to participate in the Governor's Energy Efficiency Program.

Read More About Die-Tech Wins Small Business Energy Grant...

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Time to Upgrade? Richard W. Dennis, President of Die-Tech, Inc., voices his opinions

Richard W. Dennis, President of Die-Tech, Inc., a precision metal stamper Central PA is interviewed concerning replacement of manufacturing equipment.  Die-Tech does customer, made-to-order, precision metal stampings for the automotive, medical devices, aerospace, military and other industries.

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Die-Tech featured in the KeystoneEdge

Die-Tech, the precision metal stampings manufacturer in Central Pennsylvania was the host to the DEP's Small Business Energy Efficiency Grant Program announcement in January.  During this media event the acting Environmental Protection Secretary, John Hagar spoke with the press and invited small business across the state to apply for the new grant.  After the announcement, the attendees where invited to tour Die-Tech's facility to gain a better understanding of the metal stampings that are produced right here in Central PA and shipped around the world for use in automotive, consumer electronics, medical, aerospace, military, and alternative energy devices.
Die-Tech manufactures metal stampings that are characterized by their light-weight, complex forms, high-quality and precision, including connectors, jumpers, lead frame, terminal leadframe, hybrid edge clips, and compliant pins.

Read More About Die-Tech featured in the KeystoneEdge...

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PA State Energy Efficiency Grant Program Announced during media event at Die-Tech

Die-Tech, a precision metal stamping manufacturer, hosted the DEP's announcement of a new Pennsylvania Energy Efficiency grant program on January 12th on their plant floor.  Acting Environmental Protection Secretary John Hangar made the announcement for the new grant program before a host of guests and the Capital Region's news media.  This program is designed to help small businesses in the state make the changes needed to conserve energy and improve their competitiveness in the global market.
Following the annoucement, Die-Tech personnel conducted guided tours of the metal stamping facility -- show casing their production of edge clips, connectors, nuclear filter media, and other precsion metal stampings made within the facility.

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Die-Tech's Engineering Hotline gaining attention from the professionals in the metal forming industry

Die-Tech's new hotline, staffed by engineers for engineers,  is featured in MetalForming Magazine.  This hotline was implemented to assist those tasked with the responsibility of sourcing or designing metal components to be used in their own manufacturing processes.  These metal components may include clips, connectors, pins, heat sinks, jumpers, or lead frame.  In fact, any thing that needs to be stamped of light-weight metals for the movement of electricity from one component to another.

Read More About Die-Tech's Engineering Hotline gaining attention from the professionals in the metal forming industry...

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Tech Boosts Value of Trained Workers

When Richard Dennis, president of Die-Tech Inc. in York County, was warned of the "perfect labor storm" that threatens to erode the manufacturing workforce, he knew his company was already acting to ward off the inability to attract and keep skilled employees.

With both apprenticeship and mentoring programs in place for the past few years, Dennis mandates that all of his 52 employees receive regular training to maintain or improve the skills needed to keep his company competitive and productive.

He and other local manufacturers are beefing up their workforce to make it fit in the trend toward lean manufacturing, which demands an increased use of technology.

Die-Tech manufacturers metal stampings for high-technology applications in the automotive, medical, aerospace, military, consumer electronics, and tlelecommnications industries.

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Terminal Leadframes for the Automotive Industry

Die-Tech announces a new product launch -- the Terminal Leadframe.  A Terminal Leadframe is a custom designed, usually plastic over-molded, precision metal stamping that mates with an industry standard connector in automotive 'black-box' applications.

These custom metal stampings are more robust to meet the demands of under-the-hood automotive environments, yet have the precision required for the plastic injection molds used in the over-molding most applications require.

The concepts learned and developed for the Terminal Leadframe enable Die-Tech to fast-track the  product to production.  This time-to-market advantage is key to our customer's abilty to compete in today's marketplace.

Read More About Terminal Leadframes for the Automotive Industry...

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Metalforming Magazine Features Our Engineering Hotline

Die-Tech's new stamping design hotline hit the September issue of Metalforming, the magazine of the Precision Metalforming Association (PMA).  The article explains the type of questions our engineers will expect to answer for those tasked with the design and use of precision metal stampings such as connectors, terminal leadframe, spreaders, small heat sinks, hybrid edge clips, SIPs, DIPs, ZIPs, and other metal stampings that allow electricity to move from one component or, area of a device, to another.

Read More About Metalforming Magazine Features Our Engineering Hotline...

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Precision Metal Stamping Manufacturer Trains and Retains Workforce

Read how Die-Tech is preparing for the future and for the skilled workforce crunch that everyone is predicting.  This precision metal stamping manufacturer has developed several career enhancement value streams for training employees.  This training is provided both internally by Die-Tech personnel, and externally in partnership with MANTEC.

Read More About Precision Metal Stamping Manufacturer Trains and Retains Workforce...

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Hotline for Stamping Design Engineers Just a Phone Call Away

Die-Tech, Inc., York Haven, PA, has introduced a stamping-design hotline as a resource for engineers and others manufacturing for the automotive, telecommunications, military, aerospace, industrial controls and other industries that use precision metal stampings.  Call 1-888-89-STAMP for technical support, it is free and available 8 a.m. to 4 p.m., Monday through Friday.

Read More About Hotline for Stamping Design Engineers Just a Phone Call Away...

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Die-Tech and the Manufacturing Extention Partnership

Our Lean corporate culture has enabled us to cut lead times, reduce inventory, reduce set up times, improve quality, and increase our flexibility.  Our partnership with MANTEC provides us with cutting edge training on Lean techniques and principals.


Read More About Die-Tech and the Manufacturing Extention Partnership...

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A Spotlight on Success

How does a company transform itself to an innovative, outward-facing organization?  For Die-Tech, Inc., the York Haven manufacturer of precision metal stampings, the first step was benchmarking.  Rather than settle for the minimum required to maintain its quality and technical certifications, the company took a hard, critical look at the comparisons it was gathering.

"You're first fight is always with data," says company President Richard W. Dennis.  "We were guilty of a mindset that what we were finding didn't apply to us because we were different.  But benchmarking showed the chinks in our armor."

Next, Die-Tech engaged a consultant that recommended a more robust training and career/personal development menu for the company's more than 100 employees.  That process began eight years ago.  Today, the spirit of innovation permeates the company culture.   Among its key elements:

Yet another element in Die-Tech's outreach is Dennis' service on the MANTEC board of directors, where his enthusiasm for learning and growing has impressed John Lloyd.

"I'm continually amazed at how much he reaches out to take on new initiatives -- simultaneously in many cases," Lloyd says.  "He's built an infrastructure that enables his people to absorb those changes."

 

Read More About A Spotlight on Success...

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Die-Tech Interviewed Concerning Websites for Manufacturers

Die-Tech, a precision metal stamper located in Central Pennsylvania, understands how powerful the web will become to manufacturers around the world. 

Read More About Die-Tech Interviewed Concerning Websites for Manufacturers...

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Manufacturing Technology Internship Program

The Technology Council of Central Pennsylvania (TCCP), Ben Franklin Technology Partners, MANTEC, and Department of Community and Economic Development (DCED) announced the winner of an innovative internship program that matches regional manufacturers with the region's most qualified students.

The winners of the Manufacturing Technology Internship Progam are:

"The program is a great step forward for all of us working together to re-build manufacturing in Pennsylvania," said Tom Palisin, Pennsylvania's Manufacturing Ombudsman, who works within the Department of Community and Economic Development.  "By expanding intership opportunities we are building a foundation of knowledgeable, enterprising individuals who will be poised to expand manufacturing in the Commonwealth."

Read More About Manufacturing Technology Internship Program...

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