MRO Today - Manufacturing Industry News archives

Manufacturing Industry News:
News from the week of Feb. 7, 2005

AISI names new chairman
Johnson Controls to promote technical trades with colleges
Boeing to sell On Demand Manufacturing to RMB Products
Milwaukee Electric Tool unleashes Red Zone Experience
Jobless claims drop in recent week
Ford unveils supplier diversity reporting system
SKF displays its aptitude in asset management
Hewlett-Packard chief steps down amid boardroom battles
Timken Latrobe alters pricing policy
Unemployment slips to 5.2 percent in January
Taiwanese company buys St. Louis-based Curtis-Toledo
EPA to introduce universal hazardous waste manifest
Campaign hopes to attract young adults to manufacturing

AISI names new chairman
The board of directors of the American Iron and Steel Institute (AISI) elected John P. Surma Jr., president and CEO of United States Steel Corp., to a one-year term as AISI chairman.

In this role, he will lead the Institute's pro-manufacturing agenda, the key to maintaining a vibrant North American economy, according to Andrew G. Sharkey III, AISI president and CEO.

"John is eager to build upon Dave Sutherland's work in conveying the positive message of a new, transformed North American steel industry - positive not just for the steel industry, but for the economy and our customers," Sharkey said.

Surma succeeds David S. Sutherland, president and CEO, IPSCO Inc., who served as AISI chairman throughout 2004 and will serve as an AISI vice chairman in 2005.

The board also elected to one-year terms as vice chairmen of the institute the following:
• Donald A. Pether, president and CEO, Dofasco Inc.; and,
• Guillermo F. Vogel, H., vice chairman of the board, Tubos de Acero de Mexico, S.A. de C.V.

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Johnson Controls to promote technical trades with colleges
Johnson Controls Inc. will partner with Milwaukee Area Technical college and three other colleges across the U.S. in hopes of turning out skilled workers for its commercial heating, cooling, energy and security system businesses.

The other colleges include Greenville Technical College in South Carolina; Bishop State Community College in Mobile, Ala.; and Dunwoody College of Technology in Minneapolis.

The Glendale, Wis.-based manufacturer said it will donate more than $50,000 to each college over the next five years to increase the number of service technicians the company needs.

Declining student interest in the technical trades forced Johnson Controls into a proactive hiring strategy. The company is looking ahead to a time when baby boomers exit the workforce en masse, leaving Johnson Controls in a pinch.

Other groups are also feeling the heat. The National Alliance of Manufacturers, the Labor Department and the American Association of Community Colleges combined to raise $1.6 million for a campaign to interest young workers in the technical trades.

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Boeing to sell On Demand Manufacturing to RMB Products
RMB Products Inc. of Fountain, Colo., will purchase On Demand Manufacturing Inc., a wholly owned subsidiary of The Boeing Co.

On Demand Manufacturing pioneered the use of a selective laser sintering (SLS) rapid manufacturing process for the advanced digital manufacturing of flight-certified aircraft components. Digital SLS manufacturing technology offers low-cost fabrication of small lots of complex, hard-to-manufacture parts.

RMB Products, a long-time Boeing supplier and a manufacturer of nonmetallic aircraft components, provides engineered thermoplastic materials and seamless rotationally molded environmental control system duct assemblies to the aircraft industry.

“We believe the sale makes sense for both Boeing and RMB Products,” said Miller Adams, vice president of Boeing Technology Ventures. “While Boeing is focused on large-scale systems integration, the fabrication work at On Demand Manufacturing is a natural fit with the work at RMB Products, which has the resources and experience to expand the use of SLS rapid manufacturing technology and, as a result, provide Boeing with even lower-cost, high-quality products.”

“We consider digital manufacturing the wave of the future and are excited at its potential,” said RMB Products president Randy Gardiner. “We look forward to working closely with other industry leaders to perfect and promote this emerging technology. The acquisition of ODM fits into the vertically integrated capabilities offered by RMB Products, making it complementary to our current expertise.”

RMB will continue to operate On Demand Manufacturing from its current facility in Camarillo, Calif., and continue to service existing customers, including Boeing, while expanding its customer base and pursuing alternative SLS materials, Gardiner said.

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Milwaukee Electric Tool unleashes Red Zone Experience
For the second year, Milwaukee Electric Tool Corp. launched the Red Zone Experience, its 53-foot interactive mobile event and training vehicle designed to provide hands-on testing of Milwaukee tools for professional tradesmen and women.

The Red Zone Experience offers power tool application and safety training and provides the latest product innovations from Milwaukee including the new V28 Lithium Ion cordless power tool line.

With V28 technology, end users receive significantly greater power and up to twice the run time of current power tool battery technologies with a lighter battery weight.

This breakthrough technology allowed Milwaukee to introduce new tools like the world’s first cordless band saw powerful enough for every day professional use.

The 53-foot trailer has pop-out sides that expand the rig into a mobile training center. It also has extensive areas for contractors to test new products. It is designed with three separate zones that feature the Milwaukee Experience: a job-site-themed theater for video presentations, a training facility/display area and a product testing area.

The Red Zone Experience is also being used to promote the benefits and rewards of careers in the trades using Milwaukee’s Respect for the Trades message. With an average age of 47, the trades have a potential crisis in the making as tradesmen begin retiring in the next 10-15 years.

This nationwide tour will travel to Milwaukee distributors, vocational/technical schools, union training centers, fire/rescue events, trade shows, job sites and other events that attract tradesmen. The Red Zone Experience will spend two to three weeks in each market and will be on the road 160 event-days a year.

Locations for the Red Zone Experience events will be posted on the company’s Web site www.milwaukeetool.com under Events.

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Jobless claims drop in recent week
New claims for unemployment insurance fell 13,000 to 303,00 for the week ended Feb. 5, according to the Labor Department. The four-week moving average was 315,500, a decrease of 16,000 from the previous week's unrevised average of 331,500.

The four-week moving average is generally considered by economists to be the more reliable of the two because it smoothes out week-to-week volatility. Both rates remained below 400,000, which is the level economists use to define a weak labor market and a stable one.

Continuing claims for unemployment insurance increased 47,000 to 2.7 million for the week ended Jan. 29. Continuing claims are those older than two weeks.

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Ford unveils supplier diversity reporting system
Last week, Ford Motor Co. launched the M-Tier Diversity Reporting System, an Internet-based program that enables Ford to capture, track and verify the diverse dollars spent by more than 500 of the nation's largest automotive suppliers.

"As a diversity-focused automaker, this dynamic, Web-based system will allow us to fully explore the value of our multi-tier value chain, "said Ray Jensen, director of Ford’s supplier diversity development office.

M-Tier, which stands for Multiple Tier, expands Ford’s involvement throughout the entire supply chain by allowing it to recognize the successes of its suppliers’ diversity development efforts at each level.

"By leveraging our position at the top of the economic value chain and being engaged in our suppliers’ efforts, M-Tier will enable us to identify and support smaller suppliers at the third, fourth and so on levels" Jensen said.

The M-Tier Diversity Reporting System will be made available free of charge to suppliers in Ford’s value chain so they can initiate their own Tier 2 programs. It will enable Ford to help its suppliers in their quest to develop and maintain Tier 2 diversity programs.

Additionally, Ford intends to share the system with corporations in other industries to maximize the opportunities for diverse suppliers across the nation.

The system was co-developed and is administered by Chicago-based CVM DiversityQuest, a diversity database and software development supplier. Michael Anguiano, CVM DiversityQuest president, said he anticipates other industries will use this program as they see Ford's success.

"Since Ford has taken the leadership position in the development of M-Tier, other industries are seeing the benefits. We have already developed a standardized Tier 2 platform for the telecommunications, pharmaceutical and financial services industries, customized to the unique needs of each segment," said Anguiano.

Several Fortune 500 firms have signed on to be part of the new initiative.

"M-Tier launches a new era in supplier diversity," Jensen said. "It is our goal for each diverse supplier to understand that, regardless of its company’s size, it provides value as a Ford supplier and plays an important role in our business."

Tony Brown, Ford senior vice president of global purchasing, added: "No matter how small the company, each supplier in our value chain should take ownership in the fact that they contribute to our success and that their product or service ultimately has an impact on the vehicles produced by the Ford Motor Company."

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SKF displays its aptitude in asset management
Statistics show that industrial plants will lose more than 40 percent of their maintenance personnel over the next five years. Only 10 percent of these businesses are estimated to have a strategy to retain the intellectual capital that will depart with those employees.

In light of these figures, SKF Reliability Systems developed (that's the trademarked product name) to provide manufacturers with advanced asset management capabilities.

As an industrial decision support system, can help an organization retain, build and utilize its intellectual capital.

The system integrates data from multiple sources, including the intellectual capital left by departed workers, into an easy-to-use application.

As a structured, automated process, reduces variability and improves efficiency through optimizing knowledge, machinery and personnel resources, to enable a consistent methodology for efficient and effective decision-making. This leads to improved business results.

The system consists of four distinct parts.

First, analyzes extensive data from condition-based maintenance systems and extracts symptoms from measurements to indicate an asset's health.

allows a user to easily manage information for asset efficiency optimization. It documents, prioritizes and displays machine reliability and maintenance results, will alert personnel to abnormal conditions and will generate work requests within computerized maintenance management software (CMMS) systems.

Asset Knowledge Science then defines the diagnostic method for an asset, creating a systematic process that reduces the variability associated with manual efforts based upon individual experiences.

The final part of the system is , which provides an online source (the Web site is www.aptitudexchange.com) for asset management knowledge. This fee-based knowledge source provides access to the global expertise of SKF, as well as its alliance partners, providing a knowledge bank of documents and interactive decision support services. This reduces the time required to find information related to asset efficiency optimization.

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Hewlett-Packard chief steps down amid boardroom battles
Carly Fiorna, chairman and CEO of desktop computer manufacturer Hewlett-Packard Co. (HP), was forced out by the company's board of directors over disagreements about the strategic direction the company should take.

Robert P. Wayman, HP's chief financial officer, was named CEO on an interim basis and appointed to the board of directors. Patricia C. Dunn, an HP director since 1998, was named non-executive chairman of the board, also effective immediately.

"Carly Fiorina came to HP to revitalize and reinvigorate the company. She had a strategic vision and put in place a plan that has given HP the capabilities to compete and win. We thank Carly for her significant leadership over the past six years as we look forward to accelerating execution of the company's strategy," said Dunn, on behalf of the board.

Fiorna worked for Hewlett-Packard since 1999. She was the only female CEO working for a company currently listed under the Dow Jones industrial average.

Fiorina said in December there were three occasions Hewlett-Packard considered splitting off the printer and imaging business or breaking the company into two businesses, one that dealt with consumers and the other with businesses. Other struggles included that fight over the decision to purchase Compaq in 2002.

"While I regret the board and I have differences about how to execute HP's strategy, I respect their decision," said Fiorina. "HP is a great company and I wish all the people of HP much success in the future."

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Timken Latrobe alters pricing policy
Timken Latrobe Steel is changing its pricing policy to "price in effect at time of shipment" to select market segments, effective with shipments on April 1, 2005.

Timken Latrobe Steel will temporarily suspend its cancellation charge of 50 percent during the month of February on any planned orders to customers affected by this policy change. Raw material surcharges will continue to remain in effect.

"This change in policy will enable Timken Latrobe to increase the speed of various planned capital projects to better service the demands being placed on the specialty steel industry. In addition, this policy change will better align Timken Latrobe with some of the market segments we serve," said Hans J. Sack, president of Timken Latrobe Steel.

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Unemployment slips to 5.2 percent in January
Nonfarm payroll employment increased by 146,000 in January and the unemployment rate decreased to 5.2 percent, according to the Department of Labor.

Both the number of unemployed persons, 7.7 million, and the unemployment rate, 5.2 percent, declined in January. The jobless rate was down from 5.4 percent in December and 5.7 percent from January 2004.

Job growth continued in several service-providing industries, while manufacturing employment declined over the month.

In January, manufacturing employment declined by 25,000, with widespread, though mostly small, losses among its component industries.

Industries registering significant declines included motor vehicles and parts (-10,000), chemicals (-5,000), and semiconductors and electronic components (-2,000). After reaching an employment trough in February 2004, manufacturers added 85,000 workers through August. The trend has since turned downward, and 61,000 jobs have been lost.

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Taiwanese company buys St. Louis-based Curtis-Toledo
Industrial and automotive air compressor manufacturer Curtis-Toledo Inc., based in St. Louis, was acquired by FS-America, subsidiary to Taiwan-based Fu Sheng Industrial Co. Ltd.

Fu Sheng was founded in 1953. The company manufactures and distributes air compressors. With more than 30 representative offices in China and Taiwan, it is the largest manufacturer and distributor of compressors in the Greater China region. The company has machinery, sporting goods and electronic divisions.

Fu Sheng, headquartered in Taiwan, was founded in 1953 as a manufacturer and distributor of air compressors.

Fu Sheng has been a supplier of compressors to Curtis-Toledo for more than 25 years. The machinery division, of which Curtis is now a part, makes reciprocating compressors, including gas compressors, oil and oil-free compressors, rotary oil and oil-free models, stationary and portable, and centrifugal compressors. They operate in the range of 200 to 3,500 horsepower.

"The Curtis acquisition is part of Fu Sheng's global expansion strategy," said William Kerins, who serves on the board of directors for Fu Sheng. "This acquisition will present Fu Sheng tremendous opportunity in building its compressor business in the Americas."

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EPA to introduce universal hazardous waste manifest
EPA is improving the tracking of hazardous waste shipments by establishing a nationally standardized manifest form. This new form makes the nation's hazardous waste tracking system more efficient by replacing various state formats with one national form.

More than 139,000 businesses, in approximately 45 industries, are expected to achieve time and cost efficiencies through use of the new tracking system. These businesses ship approximately 12 million tons of hazardous wastes annually, and use between 2 million and 5 million hazardous waste manifests.

This streamlined approach will benefit waste handlers and regulators by reducing the costs and time associated with managing multiple forms, while maintaining the safety of EPA's well established cradle-to-grave hazardous waste tracking system.

By employing a streamlined and consistent national standard, hazardous waste handlers can better track complicated shipments, such as container residues, rejected wastes and international shipments. The new form also makes it easier to collect data for hazardous waste reporting.

The manifest will be printed to precise EPA specifications that ensure uniformity, and each form will carry a unique preprinted manifest tracking number. EPA will oversee the registration process.

Waste handlers can generate their own manifest forms once they have registered with the agency. Record keeping, reporting requirements, and other changes also vastly improve and modernize hazardous waste tracking. The new form will be phased in over an 18-month transition period. Once the new form is in place, handlers will be able to obtain new forms from any source that has registered with EPA to print and distribute them.

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Campaign hopes to attract young adults to manufacturing
A coalition of national and local business organizations, educators, and civic leaders will launch a nationwide grassroots campaign Feb. 8 in Kansas City, Mo., aimed at attracting young adults into manufacturing jobs.

The “Dream It. Do It.” campaign will focus on expanding education and training opportunities to meet a growing shortage of skilled employees.

The campaign is a joint effort of the National Association of Manufacturers (NAM), the Manufacturing Institute, Monster, the American Association of Community Colleges and the College Board.

Campaign supporters include the Department of Labor and the Kauffman Foundation, which have contributed $1.6 million.

“While the departure of low-level manufacturing jobs to China and India has received much attention, manufacturers like Dell, Motorola, Honeywell and Harley-Davidson need employees with technical skills to create high-end, cutting-edge products that beat the global competition,” said Jerry Jasinowski, president of the NAM’s Manufacturing Institute. “But the erosion of educational training programs and a weakness in math, science and technical training has left us without the skills that are essential to meet the needs of the future,” he added.

If current trends continue, experts estimate that the United States could face a shortage of 13 million to 15 million qualified employees by 2020.

At its core, the campaign seeks to foster economic growth and the skilled workforce necessary to create it. The campaign will help young people identify what they are passionate about and then utilize career resources to find fulfilling careers in manufacturing, where the average salary is $54,000, or 20 percent higher than average.

The campaign also seeks to broaden awareness about today’s manufacturing careers, from being a test engineer for an Mp3 maker, a designer for a mountain bike manufacturer, a software developer at a computer game company, to a product manager at a video cell phone maker.

For more information, visit www.nam.org.

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