Bosch opens rebuilt automotive facility
Manufacturing trade deficit improves slightly
AFE opens Facilities Management Excellence competition
Illinois businesses take competitive approach to safety
Industrial production declines again in April
New jobless claims decline, continuing claims surge
Delphi names head of global purchasing for safety, interior
Metalformers predict upward trend over next three months
NAM honors congressman for legislative excellence
Machine tool demand increases vs. prior month
Toyota celebrates new V8 engine plant in Alabama
Study: Auto suppliers' IT investments improve accessibility
OSHA administrator lays out plan to cut injuries, illnesses
Ergonomics committee presents findings to OSHA
Tornado damages GM plant
International Truck & Engine to increase production
Manitowoc to move crane manufacturing facility
Covisint consortium to create automotive data messaging

Bosch opens rebuilt automotive facility
Robert Bosch Corp. unveiled its modernized automotive facility May 16 after a two-and-a-half-year rehabilitation project.

The multi-million dollar renovation converted 170,000 square feet of old, unused manufacturing space into high-tech laboratories, vehicle testing areas and modern warehouse space. 

The upgrades to Bosch's North American Brake Engineering Center were a direct result of an incentive package from South Bend, Ind.; St. Joseph County and the state of Indiana.

Guests to the opening included South Bend Mayor Stephen Luecke, Indiana Lieutenant Governor Joseph Kernan, and Bosch executives including chassis division president Hans Weckerle.

back to top

****************************************************************************

Manufacturing trade deficit improves slightly
The Commerce Department reported that the nation’s monthly trade deficit increased by $3.1 billion to a level of $43.5 billion in March, but the manufactured goods trade balance showed a modest improvement, shrinking by $1.5 billion, according to calculations by the National Association of Manufacturers (NAM).

“This is the third straight month of minor improvement in manufactures trade,” said NAM president Jerry Jasinowski. “It is still too early to say this is the turnaround we have been waiting for, but manufacturing trade may be beginning to reflect the downward movement of the dollar that has now been going on for a year."

back to top

****************************************************************************

AFE opens Facilities Management Excellence competition
The Association for Facilities Engineering is accepting entries for the 2003 Facilities Management Excellence (FAME) Awards competition, a prestigious, 18-year-old program sponsored by the AFE Foundation.

As part of its mission, the AFE Foundation seeks to recognize organizations that have demonstrated outstanding performance in conducting plant and facilities engineering projects.

There are two levels of annual awards: the FAME Award of Excellence and the FAME Award of Merit. Only one Award of Excellence may be presented. Up to three Awards of Merit may be presented. All non-winning qualified entries will receive a Certificate of Recognition.

Eligible entrants for the FAME competition are plant and facilities engineering teams and departments in industrial plants, hospitals, office buildings, government installations and education facilities.

Entries should reflect staff involvement on a facilities project completed within the last three years.

Multiple entries from plant/facilities engineering, maintenance, or facilities management departments within the same company or organization are acceptable. However, each project must be submitted as a separate entry.

For more information, visit www.afe.org. 

back to top

****************************************************************************

Illinois businesses take competitive approach to safety
Illinois businesses from Champaign, Paris, Peoria and Springfield took top honors in the first annual "Z Project" awards for innovative workplace safety and health practices and concepts developed by private sector employers in 81 of Illinois' 102 counties, according to the Occupational Safety and Health Administration (OSHA).

Named after OSHA Peoria area office director Peggy Zweber, the Z Project encourages central and southern Illinois employers to eliminate and control hazards. The awards were presented at a conference earlier this month.

"We originated this project in our office to provide leadership in the dialog on safety and health in the workplace, one of OSHA's top priorities," said Zweber. "The Z Project Conference allows local employers and OSHA a forum to share methods that have been successful in controlling hazards."

This year's awards were presented in four categories. The Lifesaver Award, presented for a control that could save a life, was given to Arkay Plastics in Paris for a fall protection system the company and workers developed to reach resin hoppers that are 15 feet to 20 feet off the ground.

Mel-O-Cream Donuts International Inc. of Springfield received the Pluto Award for a concept that is unusual and innovative. The company designed and is using an innovative database system that allows identification of hazards throughout the workplace, ensures employee involvement and assists in prioritizing hazards and managing implementation of controls.

The Alveoli Protection Award for a control that improves air quality was presented to P.J. Hoerr Construction Co. of Peoria for a unique and inexpensive quick fix to provide a water spray for an employee cutting concrete blocks, thus protecting him from silica overexposure.

Highest honors, the Z Project Award, went to Advanced Filtration Systems Inc. of Champaign for the introduction of robotics to assist in the handling, movement and assembly of filter systems for employees inspecting product. This innovative hazard control greatly decreased potential risks associated with musculoskeletal disorders, otherwise known as ergonomic-related injuries.

"We're delighted with the first year results of the Z Project," Zweber said. "Comments we received from participants tell us we're on the right track, not only challenging employers to be proactive on workplace safety and health issues, but also encouraging employers to include their workers in the process of problem solving."

back to top

****************************************************************************

Industrial production declines again in April
Industrial production fell 0.5 percent in April, the same level of decline it experienced in March, according to the Federal Reserve. At 109.7 percent of its 1997 average, output in April was 0.4 percent lower than its level in April 2002.

Manufacturing output decreased 0.6 percent in April and was 1.9 percent below the recent high recorded in August 2002. Output at utilities ticked up 0.1 percent, and production in mining climbed 0.4 percent.

Capacity utilization for total industry dropped to 74.4 percent, a rate nearly 0.5 percentage point below its March level and almost 7 percentage points below its 1972-2002 average.

The production of automotive products fell 0.8 percent, its third consecutive monthly decline.

The index for business equipment moved down 0.5 percent in April and stood 2.5 percent below its level in April 2002. Declines were widespread across categories, with the output of transit equipment, particularly motor vehicles, recording the sharpest decrease. Information processing equipment ticked down after having posted a sizable gain in the previous month, and industrial and other equipment edged down for a second month.

The production of materials fell 0.5 percent in April. The output of durable materials was held down by decreases in the production of consumer parts -- mainly those related to motor vehicles -- and other durable materials, while the production of equipment parts moved up 0.6 percent.

Manufacturing output declined 0.6 percent in April after having edged down 0.1 percent in both March and February. 

Losses in April were widespread. The overall factory operating rate moved down 0.5 percentage point, to 72.5 percent, and was the lowest rate since May 1983. A 0.6 percent drop in the production of durable goods was led by another pullback in motor vehicles assemblies. 

Other industries that contributed to the decline included primary and fabricated metals, nonmetallic mineral products, furniture and related products, and miscellaneous durable goods. 

Among high-technology industries, both computers and semiconductors had noticeable gains in output, while the production of communications equipment declined sharply and reversed about half of the previous month's gain.

back to top

****************************************************************************

New jobless claims decline, continuing claims surge
The number of new claims for unemployment insurance benefits declined by 13,000 to 417,000 for the week ended May 10, according to the Labor Department. The decline followed the prior week's decline of 28,000 new jobless claims.

The four-week moving average of new jobless claims -- a more reliable indicator because it smoothes out week-to-week 
volatility -- also declined by 7,500 to 439,750.

For the 13th consecutive week, new claims have remained above the 400,000 mark, a line economists say indicate the difference between a stable labor market and a weak labor market.

While initial claims fell, continuing claims surged. The number of people continuing to draw on unemployment insurance spiked 120,000 to 3.77 million. One Reuters report said it was the highest level of continuing unemployment claims since November 2001, shortly after the terrorist attacks of Sept. 11, 2001, dealt a severe blow to the U.S. economy.

back to top

****************************************************************************

Delphi names head of global purchasing for safety, interior
Delphi Corp. appointed Patrick C. Murtagh director of global purchasing in its safety and interior systems division. Murtagh, 49, replaces Karen A. McClain, who was appointed director of global purchasing for Delphi product and service solutions.

In his new assignment, Murtagh reports to Delphi safety and interior systems president James A. Bertrand.

Prior to this assignment, Murtagh was commodity director for metallic at Delphi global purchasing. He began his career in 1978 at General Motors in production control and logistics for the Cadillac division operations in Detroit. 

Over the next 10 years, Murtagh held various positions in purchasing for the Cadillac and Chevrolet divisions in Detroit and Warren, Mich.. 

Murtagh continued as the director of purchasing for various functions within GM, including the electric commodity for car platforms in North America from 1992-1996. He went to Delphi in 1999 and was named director of purchasing for electrical systems.

back to top

****************************************************************************

Metalformers predict upward trend over next three months
U.S. manufacturers rebounded from two months of worldwide turbulence with a favorable economic forecast, according to the Precision Metalforming Association (PMA) Business Conditions Report. Information is based on conditions as of May 1.

Thirty-three percent of respondents expected to see an increase in economic activity over the next three months (a marked recovery from 23 percent last month, and the highest percentage since January). Twenty percent thought activity would decrease (an improvement from 23 percent in April), and 47 percent predicted that conditions would remain the same.

Throughout the international turmoil of the past two months, U.S. manufacturers expressed hesitancy when discussing economic projections. With more global stability, metalforming companies seem poised for a recovery.

An upturn was also present in results of the question, “Compared with the last three months, what do you expect the trend to be in your incoming orders during the next three months?”

Thirty-two percent expected orders to increase (up from 31 percent last month), and 22 percent thought orders would decrease (down 7 percent from April). The remainder, 46 percent, anticipated that orders would not change.

The one survey area that continued to follow a negative trend was whether respondents have workforce on short time or layoff.  Twenty-four percent reported that they do (up from 20 percent last month).

Conducted monthly, the Business Conditions Report is an economic indicator for the manufacturing world, sampling 162 manufacturing companies.

back to top

****************************************************************************

The award is given by the NAM to senators and representatives based on their voting records on key legislation affecting the manufacturing community. Its demonstrate support for a pro-growth, pro-manufacturing, pro-worker agenda.

Members of Congress are notified throughout the congressional session of votes that will be considered key votes used to determine eligibility for the award.

"Roscoe Bartlett's voting record shows a true understanding of manufacturing's key role in the strength of our economy and a willingness to cast the critical votes that will boost competitiveness, job creation and prosperity for working Americans," said W. R. Grace & Co.'s chairman, president and CEO Paul J. Norris. 

He noted that Bartlett voted in support of manufacturers on 76 percent of the NAM-determined key votes. Key manufacturing votes for the 107th Congress include trade promotion authority, tax cuts and energy policy, among others.

back to top

****************************************************************************

Machine tool demand increases compared to prior month
Demand for machine tools in the U.S. increased in March from figures reported in February, but lost ground compared to March of last year, according to the American Machine Tool Distributors' Association (AMTDA) and the Association for Manufacturing Technology (AMT).

Machine tool demand surged 40.9 percent to $154.2 million in March compared to $109.5 million last month. At the same time, March's total declined 13.6 percent from $178.5 million reported during March of last year.

Year-to-date totals also suffered. The report showed machine tool demand reaching $394.9 million, down 25.5 percent from $530.4 million reported during the same period in 2002.

"The five-year-long slide in new investment in modern production equipment continues as first quarter orders are down another 26 percent from 2002 levels," said AMT president Albert Moore.

back to top

****************************************************************************

Toyota celebrates new V8 engine plant in Alabama
Alabama leaders joined Toyota officials for a celebration marking the production of the automaker's first V8 engines made outside of Japan.

Toyota Motor Manufacturing, Alabama, Inc. represents an investment of $220 million and currently employs about 300 people who will produce 120,000 engines annually for the Tundra pick-up truck made in Indiana. Employment will grow to about 350 when the plant is at full production.

"This is an historic event not only for Toyota and the team members at this plant, but it's an historic event for the state of Alabama, as well," said Alabama Gov. Bob Riley. "Toyota, like so many of our other good corporate citizens, has witnessed firsthand the work ethic and skills of the citizens of Alabama, and we, in turn, have witnessed Toyota's commitment to excellence."

Toyota currently has 10 vehicle manufacturing and parts facilities in North America, and is building three more in Baja California, Mexico; San Antonio, Texas; and Jackson, Tenn.

By 2006, Toyota will have capacity to build 1.65 million cars and trucks a year and 1.16 million engines in North America. Toyota currently employs some 34,000 people throughout North America. The company's direct investment is nearly $14 billion with annual parts, materials, goods and services purchased from North American suppliers totaling nearly $20 billion.

back to top

****************************************************************************

Study: Auto suppliers' IT investments improve accessibility
A study of the automotive supplier industry titled, "Integration and Collaboration: Reaping Benefits from the Value Chain," was released by the University of Michigan's Office for the Study of Automotive Transportation (OSAT) and software company Oracle Corporation.

Based on in-depth interviews with executives from 20 major suppliers and a comprehensive survey of more than 100 high-ranking supplier executives, the study demonstrated the investment value of information technology (IT). It also revealed the need to prioritize internal integration, customer collaboration and supplier collaboration initiatives in three areas: supply chain management, product design and development, and executive decision making.

More importantly, the study results found that these priorities may be skewing supplier efforts in ways that may lead to shortfalls in overarching strategic supplier goals.

Survey findings showed that the rate at which a company invests in IT will improve its ability to access, share and use external and internal information. Survey respondents who invested more than 1.5 percent of their annual revenue in IT report that their information is "moderately accessible and consolidated," while those who invest less have "somewhat" inaccessible and fragmented information.

The study makes eight recommendations for executives charged with leading their companies to better results over the next decade.

Chief among those recommendations is that supplier executives must align executive strategies, personnel practices, business processes and IT to ensure the most effective integration within and collaboration across business unit organizations. Specifically, the survey urges supplier executives to integrate business operations by leveraging Internet technologies to integrate disparate systems, known as islands of excellence.

"Global competition is rampant and the pressure by OEMS on suppliers to reduce costs continues. As a result, profitability requires differentiation and a highly capable value chain and this is directly proportional to a supplier's proficiency with integration and collaboration. Without it, this game becomes more about price than value," said Oracle automotive industry senior director John McGlynn. "We don't think that cost pressure is decreasing nor will price-downs disappear any time soon."

Key findings highlighted in the study include:
• Islands of excellence, disparate systems or functional groups, constrain global suppliers from achieving economies of scale and world class performance.
• The rate of improvement of Tier 1 suppliers who expect to become Emerging System Integrators (ESI) lags behind current SIs in four key areas: cost-reduction efforts, market share, on-time delivery and profit margin. Part of this lag can be explained by the fact that ESIs are generally farther behind in their integration and collaboration efforts.
• Suppliers do not always see the big picture, often failing to recognize the interdependence of their internal operations with those of their external suppliers and customers.
• System Integrators realize that innovation through product design and development provides key differentiation with their customers, but few have launched major collaborative initiatives with their suppliers.
• Supplier executives emphasize traditional financial metrics over operational metrics in evaluating internal program efforts, because financial metrics are profit driven and easily attainable, while operational metrics are process driven and more difficult to obtain.

"The results of our research do not suggest that there is a single solution for every supplier in the industry," said OSAT director Mike Flynn. "Rather, every supplier in the automotive industry should review this report and understand the implications of these findings for their own business."

back to top

****************************************************************************

"We can make a difference in the lives of working men and women in this country today," said Henshaw. "Every day, we strive to make the workplace safer for workers in this country. Our new plan will give us a clear roadmap to reach our goals."

Under the new plan, OSHA's three overarching goals are to:
• reduce occupational hazards through direct intervention;
• promote a safety and health culture through compliance assistance, cooperative programs and strong leadership; and
• maximize OSHA's effectiveness and efficiency by strengthening its capabilities and infrastructure.

OSHA also plans to cut by 4 percent injuries and illnesses in:
• construction,
• general industry and specific industries with high hazard rates including landscaping/horticultural services,
• oil and gas field services, 
• blast furnace and basic steel products, 
• ship and boat building and repair, and 
• other high hazard industries.

OSHA's strategic management plan also covers issues not traditionally addressed by the agency but that nevertheless account for many work-related injuries, illnesses and deaths, such as workplace violence and work-related motor vehicle accidents. 

OSHA intends to use a variety of cooperative programs and outreach efforts to assist employers and employees in addressing these problems. In addition, the agency will focus on emergency preparedness, helping workplaces get ready to respond to workplace emergencies such as natural disasters or terrorist attacks.

The new plan will support the Department of Labor's Strategic Plan that will be issued later this year.

back to top

****************************************************************************

Ergonomics committee presents findings to OSHA
The National Advisory Committee on Ergonomics (NACE) presented its first set of work plans to the Occupational Safety and Health Administration to assist in its goal of reducing musculoskeletal disorders in the workplace. 

The committee wrapped up its second meeting in Washington following two days of work group sessions highlighting guidelines, outreach and assistance, and research.

The guidelines work group discussed factors that OSHA should use to determine specific industries for which guidelines should be developed, including injury/illness rates, population impacted, willingness of specific industry stakeholders, and taking into consideration existing successful program models. 

The group also suggested various types of data OSHA should consider that help demonstrate that ergonomics makes good financial sense, such as savings in a lower worker turnover rate, lower workers compensation costs, and increased productivity and worker morale.

The breakout group on outreach and assistance has already begun reviewing current OSHA outreach efforts, and will review the agency's Web site and links to other resources. The group will also be identifying industries and organizations willing to share ergonomic best practices, success stories and their own outreach materials, and others willing to join OSHA in conducting ergonomics seminars and roundtables throughout the country.

Based upon a recommendation of the research discussion group, NACE is recommending a symposium for published researchers on work-related musculoskeletal disorders to examine in detail their studies and the methodologies used.

The research group also recommended that future presentations to the full committee include a neurologist to discuss diagnostics as a key to effective research, and a presentation on research reports from the National Academy of Sciences.

back to top

****************************************************************************

Tornado damages GM plant
A tornado ripped through Oklahoma City suburb Moore, Okla., on May 8 damaging a General Motors Corp. factory and injuring two of its workers.

Witnesses told the Associated Press that the twister set part of the factory ablaze and casually flipped many cars in the parking lot. GM said large portions of the painting facility were seriously damaged, and walls and ceiling needed repair.

The GM factory manufacturers the Chevrolet TrailBlazer and GMC Envoy. The automaker said the plant would shut down for an indefinite period.

Though the majority of the GM workers had plenty of time to seek shelter from the tornado, others in Moore were not so lucky. Some 133 people were injured by the tornado on May 8, and by another one that struck the following day.

The GM plant was the second large manufacturing facility struck by a tornado. The Procter & Gamble factory in Jackson, Tenn., suffered extensive damage when a tornado tore through the city earlier in the week, according to reports in The Jackson Sun newspaper.

More than 200 Procter & Gamble workers were inside the facility when the tornado hit. They were ushered into safe areas and none of the employees in the plant at the time of the storm were injured.

When the storm was over, employees saw that it distributed garbage and debris all over the plant's property, ripped part of the roof from the facility, and overturned truck trailers and rail cars behind the building. Engineers were called in to the city to check the structural stability of the buildings.

back to top

****************************************************************************

International Truck & Engine to increase production
Navistar subsidiary International Truck & Engine Corp. said it will boost production levels following its regularly scheduled two-week shutdown in late July, according to the Associated Press.

While production numbers for medium- and heavy-duty trucks experienced a period of decline over the past two years, International Truck & Engine believes that low diesel fuel costs and larger loads will increase demand in the marketplace.

The number of trucks produced by the plant will increase from 143 per day to 167 per day. Those numbers are down from a peak of 410 units per day in 1999.

back to top

****************************************************************************

Manitowoc to move crane manufacturing facility
The Manitowoc Company Inc. will close its National Crane boom-truck manufacturing facility in Waverly, Neb., and move production to the company's facility in Shady Grove, Pa. 

Both facilities were acquired when Manitowoc purchased Grove Worldwide last year. The closing is expected to take place by the end of 2003.

The transfer of production will improve long-term utilization and productivity given the advanced systems already in place at Shady Grove. Proceeds from the sale of assets are expected to equal or slightly exceed the after-tax costs associated with the move. These costs will primarily be reflected as an adjustment to the purchase price of Grove Worldwide.

"As we continue to integrate Grove Worldwide, we will fully leverage the synergies available in order to ensure that the crane segment is sized for profitability under current market conditions and that the business is positioned to take off when the economy improves," said Manitowoc crane group president Glen E. Tellock. "Customers should be assured that our National Crane field sales and service support staff are not expected to change."

back to top

****************************************************************************

Covisint consortium to create automotive data messaging
Covisint formed a technology development consortium that will build and implement a data messaging solution to improve communications between companies in the automotive industry and replace costly EDI solutions.

The messaging solution will also enable smaller companies not currently using EDI to connect to their customers and suppliers.

Members of the consortium include DaimlerChrysler, Delphi Corp., Ford Motor Co., General Motors, Johnson Controls and Lear. Each has committed financial and human resources to contribute to the development of the solution.

When deployed in late 2003, the new messaging solution will allow Covisint customers to send and receive electronic data to applications behind each others' firewalls, as well as to Covisint applications, at a significantly lower cost than available from current EDI solutions. 

It will support the latest Internet-based protocols, XML standard messages, as well as the millions of EDI messages exchanged daily in the automotive business. The specifications for this solution are being developed in cooperation with the Automotive Industry Action Group.

"A coordinated messaging implementation will lead to common processes and increased velocity of information throughout the automotive industry," said Covisint chairman, president and CEO Bruce Swift. "Simplification of the messaging process will provide increased participation and reduced costs to businesses at every level of the supply chain. This will be core to Covisint's strategy in becoming the hub for the global automotive industry."

back to top

****************************************************************************

back to industry news archives

Send your news to

Copyright 2003 Pfingsten Publishing L.L.C. All rights reserved.