Machine tool consumption down 2.1 percent in April
PeopleSoft rejects Oracle's $5.1 billion takeover bid
Parlec buys British Bristol Tool Group
Sunwest Technical partners with Paradigm International
Rising natural gas prices threaten manufacturers
Microsoft to develop radio frequency tagging technology
Intel keeps manufacturing options open in India
Jobless claims decline for week ended June 7
Irwin Industrial Tools unveils new global brand strategy
Survey: Lean manufacturing gaining popularity
Air Liquide America to increase capacity in Florida
Students to build and race solar-powered cars
Unemployment growth depicts weak manufacturing sector
Oracle offers to acquire PeopleSoft for $5.1 billion
Milwaukee Electric Tool creates new charitable program
AK Steel adds customer service to VP's plate
ISMA reports decline in month-to-month new orders
ISMA honors 13 companies with American Eagle Awards
MRO Today wins three ASPBE awards
Enpac wins New Product of the Year award

Machine tool consumption down 2.1 percent in April
U.S. machine tool consumption totaled $169.6 million in April, according to the American Machine Tool Distributors' Association (AMTDA) and the Association For Manufacturing Technology (AMT). The total was down 2.1 percent from March and down 1.3 percent from $171.8 million reported for April 2002. 

With a year-to date total of $584.7 million, 2003 is down 16.7 percent compared to the same period in 2002.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the United States Machine Tool Consumption (USMTC) program.

"The passage of President Bush's stimulus package offers an unparalleled opportunity for manufacturers to invest in new equipment and technology," said AMTDA president Ralph J. Nappi. "Couple the new tax incentives with low interest rates sustained by the Fed and the weak U.S. dollar heightening export potential for manufactured goods, and the stage is set for businesses to justify capital acquisitions."

The USMTC report provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment.

Analysis of machine tool consumption provides a reliable leading economic indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and improve productivity.

April machine tool consumption in the Northeast totaled $12.5 million, down 48.3 percent from March's $24.2 million and down 39.4 percent compared to April 2002. At $66.6 million, year-to-date consumption was off 37.9 percent compared to 2002 at the same time.

Southern machine tool consumption stood at $25.6 million in April, 41.1 percent below last month's $43.5 million and off 15.9 percent compared to April a year ago. Year-to-date consumption totaled $115 million, level with the comparable figure for 2002.

Midwestern machine tool consumption rose to $84.3 million in April, 51.5 percent above the $55.7 million tallied in March and 38.2 percent higher than the total for April a year ago. With a year-to date total of $247.6 million, 2003's total is off 9 percent compared to the same time a year ago.

At $31.9 million, Central machine tool consumption in April was up 3.3 percent compared to the $30.9 million total for March, but off 4.1 percent compared to April a year ago. A year-to-date total of $96.7 million puts 2003 17.1 percent behind the previous year at the same time.

With a total of $15.2 million, April machine tool consumption in the West was down 20 percent compared to March's $19 million, and off 42.6 percent compared to last April. At $58.8 million, year-to-date consumption was 35.3 percent less than in 2002 for the same period.

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PeopleSoft rejects Oracle's $5.1 billion takeover bid
Software provider PeopleSoft Inc. officially rejected Oracle Corp.'s offer of $5.1 billion, or $16 a share, for the company about a week after Oracle tendered the takeover bid, according to a report by Andrew Sorkin and Laurie Flynn in The New York Times.

PeopleSoft called the hostile takeover bid "diabolical" and said it was "designed to disrupt" PeopleSoft's recently announced $1.7 billion merger agreement with software provider J.D. Edwards.

Then, J.D. Edwards announced it filed a lawsuit in California against Oracle, executive vice president Charles E. Phillips and CEO Lawrence J. Ellison, alleging they took part in unfair business practices.

J.D. Edwards also filed a $1.7 billion suit against Oracle in Colorado, alleging that Oracle interfered with its proposed merger with PeopleSoft.

"Oracle's unsolicited offer for PeopleSoft will only destroy value for our companies' shareholders, customers and employees, and the technology community overall," J.D. Edwards chairman and CEO Bob Dutkowsky said in a statement. "We will not sit by idly while Oracle pursues this arrogant, unlawful and destructive course of action."

Oracle took the stance that a PeopleSoft/Oracle merger would benefit PeopleSoft's shareholder much more than a J.D. Edwards/PeopleSoft merger. 

Oracle spokesman Jim Finn said his company had only recently head about the lawsuits."

"Clearly PeopleSoft and J.D. Edwards prefer to fight in the courts than let shareholders decide," he said. "We believe this case has no merit whatsoever."

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Parlec buys British Bristol Tool Group
CNC tooling manufacturer Parlec acquired toolholding and workholding manufacturer Bristol Tool Group, based in Bristol, England.

"The joining of Parlec and Bristol Tool demonstrates Parlec's commitment to maintaining a position of leadership in the worldwide tooling, presetting and workholding marketplace," said Parlec president and co-CEO Michael Nuccitelli. "We are excited to now offer our combined experience in turnkey solutions to our customers worldwide."

Offering both specialized and standard toolholding and workholding equipment for the worldwide production engineering and manufacturing markets, the Bristol Tool Group places a strong emphasis on its applications engineering expertise and precision engineered solutions.

Bristol Tool Group managing director Robert H. Miller will maintain his current position following the acquisition and will continue to work out of the Bristol operation.

The Bristol Tool Group, made up of Bristol Tool & Gauge Engineering Limited in Bristol, England, and the Bristol Tool Co. of North Vernon, Ind., will now operate under the title Bristol Tool, A Parlec Company.

Effective June 29, the North Vernon operation will be consolidated into the Parlec operation in Fairport, N.Y. The new contact phone number is .

Recently, Parlec expanded its sales and distribution network into the Chinese market with the opening of an office in Shanghai.

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Sunwest Technical partners with Paradigm International
Industrial products broker Sunwest Technical Associates and absorbent products manufacturer Paradigm International formed a joint venture to expand distribution and sales of Paradigm’s Stardust Super Absorbent and Starpower Cleaner/Degreaser.

The joint venture will have a multi-industry focus expanding Paradigm’s business from government to the industrial, industrial safety, sanitary supply and automotive aftermarkets.

The joint venture will use a network of independent manufacturer representatives and distributors to expand distribution and exposure of Paradigm products.

“Our intent is to develop an extensive network of reps and distributors, making Paradigm the premier provider of unique spill control and clean-up products throughout all industries where spills are common," said Paradigm vice president of business development Kevin L. Brown.

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Rising natural gas prices threaten manufacturers
As natural gas prices continue to increase, and supplies continue to run low, manufacturers are feeling the pinch across the U.S., according to a report by FT.com.

Manufacturing plants throughout the U.S. use natural gas to heat their buildings and boilers and power manufacturing processes.

U.S. Energy Secretary Spencer Abraham said in a letter to 30 Senators released June 9 that there will be limited opportunities to increase natural gas supplies over the coming 12-18 months.

"Therefore the emphasis must by on conservation, energy efficiency and fuel switching," he said.

Current supplies of natural gas stand at roughly half of the same levels last year. Over the past three years, prices surged 700 percent.

One option is to try and reach natural gas located beneath federal lands. However, there may not be enough time to reach the gas before current supplies run dangerously low.

States and the federal government have also been slow to adopt permitting processes for new locations where liquified natural gas can be imported from foreign countries, causing overload problems with the four receiving terminals currently open.

In the meantime, there are no easy answers and remaining supplies could be depleted by a very hot summer or very cold winter.

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Microsoft to develop radio frequency tagging technology
Industrial manufacturers and distributors may soon improve supply chain efficiencies using technology similar to that which helps retailers catch shoplifters.

In partnership with the Auto-ID Center, a joint venture of the Uniform Code Council and European Article Number International, technology giant Microsoft Corp. will support efforts to create industry standards for Radio Frequency Identification (RFID) technology, which combines the benefits of the silicon chip and radio frequencies.

The tagging technology would help track parts within a distributor or manufacturing plant. Efficiencies would increase over current bar code technology, which requires a bar code to be visible for laser tracking.

"If widely adopted, RFID-enabled systems will have the capability to greatly reduce human error from data collection, reduce inventories, improve product availability, identify and reduce loss and waste, and help ensure safety and security," according to the Microsoft Web site.

For example, if a tool crib's products included an RFID tag, the crib could use "smart shelves" to read RFID tags, and automatically send a request to purchasing to order more.

This means an employee doesn't need to spend time reviewing inventories and ordering products, which can save the store time and money.

"Microsoft, with its partners, will enable customers to realize the full potential of RFID," said Microsoft Business Solutions group corporate vice president Satya Nadella. "The total product visibility achieved would enable new business processes that were previously impractical or not cost-justified."

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Intel keeps manufacturing options open in India
Intel Corp. will keep an open mind in deciding whether to build a manufacturing base in India, according to a report from the AFP. 

Outside of meetings with business leaders in Bombay, India, Intel president Paul Otellini said the company would keep its options open, but there were no immediate plans.

Intel's workforce sprouted in India three years ago with 100 workers. Today, about 1,000 workers are employed in that country. The chip maker hopes to increase the workforce to 3,000.

Currently, India represents Intel's largest foreign non-manufacturing base.

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Jobless claims decline for week ended June 7
The number of new claims for unemployment insurance fell by 17,000 to 430,000 for the week ended June 7, according to the Labor Department. During the prior week, claims increased by 22,000.

The four-week moving average of new jobless claims increased to 433,750 from 431,500 during the prior week. The four-week moving average is generally considered the more reliable of the two, because it smoothes out week-to-week volatility.

Both measurements remained above the 400,000 mark, which is thought by economists to represent a weak labor market.

The number of continuing claims for unemployment insurance jumped by 120,000 to 3.8 million for the week ended May 31, the highest measurement since April 1983.

Unemployment around the nation increased in May to 6.1 percent, or about 9 million people, from a level of 6 percent in April, according to the Labor Department.

Manufacturing employment decreased by 53,000 jobs in May, about the same as its average monthly decline for the prior 12 months. Since July 2000, the industry has lost 2.6 million jobs, a decline of about 15 percent.

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Irwin Industrial Tools unveils new global brand strategy
Irwin Industrial Tools announced a new global brand strategy for its professional grade hand tools and power tool accessories business.

The company is positioning itself as the primary brand for seven user-preferred sub-brands: Vise-Grip, Marathon, Quick-Grip, Speedbor, Strait-Line, Unibit and Hanson.

Each of Irwin's sub-brands will retain its category-leading name while sharing a common IRWIN identity and endorsement. The brand portfolio will also include products marketed exclusively under the Irwin name.

"We are encouraged by the enormous potential we see for the Irwin brand worldwide," said Irwin group president Jim Roberts. "We have formulated a thoughtful and comprehensive plan to maximize our long-term results. Our intent is to continue to build very strong, user-preferred brand supported by new products and aggressive marketing."

Over the upcoming months, product and packaging will feature Irwin's new trademark blue-and-yellow color scheme. Irwin brand products are available at industrial and contractor supply houses, hardware stores, home centers and automotive tool distributors worldwide.

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Survey: Lean manufacturing gaining popularity
Executive search firm Stiles Associates reported that one of its recent surveys uncovered a growing interest in lean manufacturing, identified barriers to adoption and addressed the leadership qualities necessary for success.

According to the survey conducted last month at the EASTEC Advanced Productivity Exposition, 83 percent of respondents are familiar with lean manufacturing, with more than half in some stage of developing a lean culture (15 percent have fully integrated lean and another 41 percent have begun the process).

Top reasons cited for implementing lean were cost savings 
(28 percent), productivity improvements (23 percent) and competitive pressures (12 percent). Greatest benefits among those using lean are customer responsiveness (16 percent), increased speed to market (10 percent) and reduced product development cycles (9 percent).

Respondents indicated resistance to change (27 percent) as the greatest obstacle to developing a lean practice, followed by ineffective leadership/lack of lean leaders (21 percent). When asked to identify the most important personal characteristics of lean leaders respondents cited "passionate" (33 percent), "enthusiastic" (17 percent) and "hands on" (12 percent).

"While employee empowerment is the backbone of the lean movement, it is impossible to achieve success without the right leadership," said Stiles Associates founder and president Linford Stiles. "A unique breed of executives is required to create change and develop a bottom-up culture of waste elimination, continuous improvement and customer responsiveness."

The survey was conducted among nearly 100 manufacturing executives at the EASTEC Advanced Productivity Exposition in West Springfield, Mass., in May.

Learn more about Lean Manufacturing University, the two-day, lean manufacturing seminar from MRO Today magazine and the University of Wisconsin-Madison.

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Air Liquide America to increase capacity in Florida
Air Liquide America L.P. plans to increase capacity to meet the growing demand for gaseous and liquid nitrogen and liquid oxygen in Florida by building a new Air Separation Unit (ASU) at its Merritt Island, Fla., facility.

In conjunction with Air Liquide America's existing production facility near Orlando, Fla., the Merritt Island addition makes the company a significant player in the state of Florida. 

The ASU will produce gaseous nitrogen for pipeline delivery to the Kennedy Space Center and Cape Canaveral Air Force Station, as well as liquid oxygen and liquid nitrogen to meet the growing demand for these products in Florida.

"This expansion will allow Air Liquide America to satisfy the rapidly growing demand for oxygen in healthcare, environmental and manufacturing applications in Florida," said senior vice president Woody Garmon. "The additional nitrogen production capacity will support the growth in demand of the space industry in and around the Kennedy Space Center."

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Students to build and race solar-powered cars
The Advanced Automotive Technology Center located at Cuyahoga Community College's Western Campus in Parma, Ohio, will host the second annual Scale Model Solar Car Race on June 20.

Approximately 40 ninth grade Tech Prep students from Cuyahoga Valley Career Center and Parma High School will spend four days leading up to June 20 studying solar technology as it applies to auto design and constructing remote-controlled cars that can be powered by solar energy.

The race consists of a maneuvering course followed by a straightaway laid out in a parking lot.

After the race, attendees will have a chance to examine a hybrid diesel truck on display for the day from Ohio State University. Case Western Reserve University is bringing a fuel-cell display. In addition, Honda Cars of Mentor will display a Honda Civic hybrid model.

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Unemployment growth depicts weak manufacturing sector
The unemployment rate in the U.S. increased in May to 6.1 percent, or about 9 million people, up from an unemployment rate of 6 percent in April, according to the Labor Department.

Manufacturing employment decreased by 53,000 in May, about the same as its average monthly decline for the prior 12 months. Since July 2000, the industry has lost 2.6 million jobs, a decline of about 15 percent.

May job losses were widespread in both durable and nondurable goods. The largest decline occurred in computer and electronic products (-16,000); employment in the industry decreased every month since January 2001.

Transportation equipment employment was up by 9,000 over the month, as workers returned from temporary auto plant shutdowns. Since its most recent peak in October 1998, employment in transportation equipment manufacturing has decreased by 320,000.

According to a study from Joel Popkin and Co. called Securing America’s Future: The Case for a Strong Manufacturing Base, Americans will see their standard of living erode as U.S. manufacturing jobs continue to leave the country. 

“If the U.S. manufacturing base continues to shrink at the present rate and the critical mass is lost, the manufacturing innovation process will shift to other global centers. If this happens, a decline in U.S. living standards in the future is virtually assured,” the Popkin study concluded.

Labor Secretary Elaine Chao said the increase in unemployment was expected and expressed confidence that the jobs picture would clear up soon.

“The increase in the unemployment rate is disappointing, but it is in line with expectations and the number of jobs lost this month is significantly lower than in previous months," she said. "What’s important is to look at what is going on behind these numbers: 58,000 new jobs in temporary help services, a leading indicator of economic growth, and the largest increase in these numbers since October 1999. Construction employment is also up and manufacturing work hours increased as well."

To read the full Popkin Study, click here.

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Oracle offers to acquire PeopleSoft for $5.1 billion
Oracle Corp. offered to purchase software maker PeopleSoft Inc. for $16 per share or about $5.1 billion.

"The acquisition of PeopleSoft will immediate make Oracle an even more profitable and competitive company," said Oracle chairman and CEO Larry Ellison. "Although we will not be actively selling PeopleSoft products to new customers, we will provide enhanced support of all PeopleSoft products. Furthermore, we will be incorporating the advanced features from the PeopleSoft products into future versions of the Oracle eBusiness Suite."

A press release from Oracle said Ellison submitted a letter to PeopleSoft's board of directors in which he expressed a desire to discuss the offer with the board.

PeopleSoft recently announced it will acquire software manufacturer J.D. Edwards, creating the world's second largest enterprise applications software company. That transaction is valued at approximately $1.7 billion and is expected to be completed this fall.

Oracle said that once its acquisition of PeopleSoft is complete, it will review whether, and on what terms, Oracle would support the J.D. Edwards transaction.

With the PeopleSoft/J.D. Edwards acquisition, PeopleSoft would expand its presence in more than 20 industries including a broad range of services, manufacturing, distribution and asset-intensive industries.

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Milwaukee Electric Tool creates new charitable program
Milwaukee Electric Tool Corp. introduced Heavy Duty Helping, an ongoing charitable endeavor designed to give tradespeople an opportunity to give back to communities in which they live and work. Heavy Duty Helping will generate volunteers and financial support for Habitat for Humanity affiliates across the U.S.

In addition, Milwaukee is partnering with the NFL Players Association (NFLPA) to bring Heavy Duty Helping to a wider audience and create an opportunity for active and retired NFL players to get involved.

The program will bring players to Habitat for Humanity work sites where they can meet volunteers and lend a hand in construction.

“We’re honored to join Milwaukee Electric Tool Corp. in this exciting endeavor. It’s a natural fit – Milwaukee Electric Tool users are huge NFL fans and our players are dedicated to giving back to their communities,” said NFLPA director of membership services AnneMarie Snyder.

Milwaukee also plans to generate additional exposure for the program through its sponsorship of Monday Night Football on CBS Radio. With every touchdown scored from the Red Zone, Milwaukee will team together with the NFLPA to make a donation of tools to Habitat for Humanity International.

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Rummler joined the company in 1974 as an assistant metallurgist at the Middletown, Ohio, works. He progressed through a number of positions in quality assurance, operations, planning and customer service. He was named director of manufacturing planning and steel sourcing in 1998.

Rummler assumed the customer service responsibility following the retirement of Theodore Holmes on May 31 after 30 years of service. Holmes was vice president of customer service.

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ISMA reports decline in month-to-month new orders
The Industrial Supply Manufacturers Association’s New Order Index fell to 157.8 in April from 163.7 in March, the association reported. The April index increased compared to a measure of 157.2 during the same month a year ago.

The Federal Reserve Board’s Durable Manufactures Index declined in April to 120.2 from 120.9 in March. The index also declined from 120.5 during April of last year.

Durable goods are defined as items with a normal life expectancy of three years or more, such as autos, furniture, appliances and mobile homes.

The Conference Board’s Index of Leading Indicators increased to 110.6 in April from 110.5 in March. However, April's index fell from 111.6 during April a year ago.

The 10 Leading Indicators are: building permits, average weekly initial claims for unemployment insurance, interest rate spread, real money supply, index of consumer expectations, vendor performance, stock prices, manufacturers’ new orders for nondefense capital goods, manufacturers’ new orders for consumer goods and materials, and average weekly manufacturing hours.

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ISMA honors 13 companies with American Eagle Awards
Twelve manufacturers and distributors and one individual were honored with awards in separate classifications and special categories at the Industrial Supply Manufacturers Association (ISMA)/Industrial Distribution Association (I.D.A.) Spring Convention in New Orleans last month.

ISMA and I.D.A. members across the U.S. compete for the awards every year. The awards recognize corporate activities that best promote the principles of the American free enterprise system.

Milwaukee Electric Tool Corp. took home top honors as the overall winner. Production Tool Supply’s D. Dan Kahn was given the Individual Achievement Award.

“In our industry, the hallmark of support for the free enterprise system is the annual American Eagle Awards, presented to manufacturers and distributors who exemplify their support to the free enterprise system and many of its components,” said Hermes Abrasives senior vice president and ISMA president Hardy Hamann.

Contestants compete in one of four sales volumes classifications, more or less that $20 million for manufacturers, and more or less than $10 million for distributors.

This year’s distributor winners included:
• Production Tool Supply Co. of Warren, Mich.;
• Ferguson Integrated Systems Div. Of Cincinnati;
• Barnes Distribution of Cleveland;
• Acklands-Grainger Inc. of Richmond Hill, Ontairo;
• AHB Tooling and Machinery Inc. of Saginaw, Mich.

This year’s manufacturing winners included:
• Milwaukee Electric Tool Corp. of Brookfield, Wis.;
• Norton/Saint Gobain Abrasives of Worcester, Mass.;
• Weiler Corp. of Cresco, Pa.;
• Kimberly-Clark Professional of Roswell, Ga.;
• Kennametal Inc. of Latrobe, Pa.;
• Hamilton Caster & Mfg. Co. of Hamilton, Ohio;
• Lexington Cutter Inc. of Bradenton, Fla.;
• Precision Brand Products Inc. of Downers Grove, Ill.

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MRO Today wins three ASPBE awards
MRO Today magazine is proud to announce that it received an unprecedented three Awards for Editorial Excellence from the American Society for Business Publication Editors at a banquet June 3 in Chicago. This marks the fourth year in a row that the business press industry has honored MRO Today for its editorial content.

MRO Today editor Paul V. Arnold received two individual Midwest Region awards in the case study category for his articles on manufacturing best practices at Intel and Boeing. The Intel article won "Best in the Midwest" honors for its category. The article “Boeing Knows Lean” also took home a national Award of Excellence in the 2002 APEX competition.

Arnold and contributing columnist Drew Troyer also received an ASBPE Midwest Region award for the magazine's feature, MRO Coach: Lubrication.

ASBPE received more than 2,500 entries for its 2003 competition. Less than 200 of those entries were cited for awards. MRO Today competed against national publications with circulation exceeding 80,000. ASBPE's Midwest Region includes 19 states.

MRO Today has now won six ASBPE awards in the past four years. In 2002, Arnold teamed with columnist Larry Lynch to win in the regular column category. In 2001, Arnold won in the case study category for his cover story on agile manufacturing at the Batesville Casket Company. He also won in 2000 for his articles on Six Sigma quality at the AlliedSignal Corporation.

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Enpac wins New Product of the Year award
Enpac Corp. received the New Product of the Year award for its portable spill containment product, the Hose Bibb, at the Safety & Health Expo 2003 in Birmingham, England.

"We are pleased with the award and recognition of the importance of spill control to safety in the industrial environment,” said Enpac vice president of sales and marketing Chris Hilty. “Operators of equipment and industrial plants frequently have small nuisance leaks associated with industrial hoses that can turn into a catastrophe if someone happens to slip and fall.”

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