Three safety companies consolidate into MCR Safety
Tower Automotive gift card mishap annoys workers
Automation Fair draws huge crowd in Milwaukee
ISM: Manufacturers have high expectations for 2004
SKF to close North Carolina seal plant
Republic Windows & Doors embraces green manufacturing
Jobless claims jump 17,000 in most recent week
External costs biggest impediment to U.S. competitiveness
Simonds International awarded ISO9001:2000 registration
Machine tool consumption declines in October
UAW president calls Medicare bill disastrous
Israeli university develops high-power magnesium battery
3M to cut 125 workers
LeanWerks solution to cut time from machining process
Unemployment slips to 5.9 percent in November
Factory orders increase 2.2 percent in October
OSHA cites hardwood mill following crushing accident

Three safety companies consolidate into MCR Safety
Beginning in January, three industrial safety companies will consolidate into MCR Safety. The three companies include hand protection manufacturer Memphis Glove, eye and face protection maker Crews and protective body wear manufacturer River City.

MCR Safety will bring together 30 years of PPE service and quality. Memphis Glove was started in 1974, followed by River City Protective Wear in 1981 and Crews Inc. in 1984. MCR Safety's goal is to have a seamless consolidation and raise the industry benchmark for its distributors' service expectations.

"MCR Safety's strategy is to build upon the individual strengths of Memphis Glove, Crews and River City to form a single, fully integrated PPE supplier to our distributors," said MCR Safety CEO Mitch Lewellen.

He added: "Distributors want more integration and supply chain efficiency. They want to become more operationally efficient. These are the same demands placed upon them by their customers. MCR Safety will help our distributors become more profitable by taking costs out of their supply chain."

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Tower Automotive gift card mishap annoys workers
Tower Automotive in Traverse City, Mich., recently provided its hourly workers with $15 gift cards to Meijer grocery stores before Thanksgiving, according to CNN.com. Unfortunately, the gift cards were later determined to be same-as-cash gifts, which are subject to taxes.

The taxes on the gift cards amounted to 36.75 percent in state and federal taxes, so $5.51 will be subtracted from the workers' next paychecks.

"It's got a lot of people ticked off," welding technician Donald McKee told CNN. "This is the lowest they've gone yet to give us something and then take it back."

The workers' union has gone as far as filing a grievance about the matter. But, workers will still get their Christmas bonuses.

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Automation Fair draws huge crowd in Milwaukee
Automation Fair 2003 drew the second-largest crowd in the event's 12-year history. More than 14,000 people attended Automation Fair, including more than 8,000 end-users and OEMs.

The fair featured 21 Rockwell Automation exhibits, 110 third-party exhibits, 49 technical sessions and 24 hands-on labs. In addition, 26,765 free lunches were provided over the course of Automation Fair.

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ISM: Manufacturers have high expectations for 2004
Economic growth in the U.S. will strengthen in 2004, according to the nation's purchasing and supply executives in the Institute for Supply Management's Semiannual Economic Forecast.

Expectations for 2004 are higher in both the manufacturing and non-manufacturing sectors, and both sectors are more optimistic about the coming year than they were one year ago. The overall prediction is for economic growth to continue at a relatively strong level in 2004.

Expectations for 2004 are high, as 76 percent of survey respondents expect revenues to be greater in 2004 than in 2003. The panel of purchasing and supply executives expects a 5.8 percent net increase in overall revenues for 2004, compared to an increase of 2.8 percent reported for 2003.

Manufacturing industries expecting the greatest improvement over 2003 include: electronic components and equipment; transportation and equipment; fabricated metals; primary metals; textiles; instruments and photographic equipment; furniture; rubber and plastic products; food; wood and wood products; glass, stone and aggregate; and printing and publishing.

"Manufacturing purchasing and supply executives are optimistic about their organizations' prospects for the first half, and predict additional growth during the second half of 2004," said Norbert J. Ore, chair of the ISM manufacturing business survey committee. "At present, the sector is in the midst of recovery as manufacturing is in its fifth consecutive month of growth as reported in the monthly manufacturing ISM Report On Business. Manufacturing seemingly has significant momentum at this point, with near record strength in new orders and production. The manufacturing sector has experienced many challenges as it has grown in 24 out of the 35 months since Y2K."

In the sector, respondents report operating at 80.1 percent of their normal capacity, up slightly from 79 percent reported in May 2003. Purchasing and supply executives predict that capital expenditures will increase 3.2 percent in 2004, compared to the 2.7 percent increase reported for 2003.

Survey respondents also forecast that they will continue to reduce their purchased-inventory-to-sales ratio in 2004. Manufacturers have an expectation that employment in the sector will grow by a modest 0.3 percent, while labor and benefits costs are expected to rise an average of 2.7 percent.

Manufacturing purchasers are predicting growth in exports and imports, with exports growing at a slightly lower rate compared with imports. They also expect the U.S. dollar to maintain its current positive position against currencies of major trading partners.

They predict the prices they pay will increase 1 percent during the first four months of 2004, and will increase an additional 0.3 percent for the balance of 2004, resulting in only a moderate change in prices during the upcoming year. Respondents' major concerns are inflation, energy costs, health care costs, currency changes, and terrorism/war.

A special question was asked of purchasing and supply executives to determine their progress in achieving efficiency from the application of technology to supply management. While a few companies rate themselves as being almost finished, 84 percent are less than three-fourths complete in achieving efficiency from the application of technology.

To read the report in full, click here.

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SKF to close North Carolina seal plant
SKF USA Inc. announced a plan for consolidating its Chicago Rawhide seal plants to improve the company’s long-term competitive position. The plan includes the closure of the Franklin facility in North Carolina and the outsourcing of the stamping operations from the plant in Guadalajara, Mexico.

Production from the Franklin plant will be transferred to other Chicago Rawhide facilities in North America. The plant in Franklin manufactures standard line seals for various industrial customer segments in North America.

In CR Mexico the component stamping operations in the manufacturing of seals will be outsourced to a local manufacturer.

The process for phasing-out is expected to take place over a period of at least 12 months and some 170 employees in the two plants will be affected.

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Cradle-to-cradle concepts stipulate that all materials used to make products are perpetually recycled to maximize material value and safeguard ecosystems, eliminating the concept of waste entirely.

In the current cradle-to-grave model of industrial production, materials are taken from the earth, used in products and sent to landfills or incinerated. The resulting loss of value, energy and damage to the environment can be eliminated when products and processes are designed within the cradle-to-cradle model, where all materials are safe for human and environmental health and move perpetually within a closed loop of production, use, recovery and recycling.

"As a leader in innovation within the fenestration industry, Republic will provide its expertise as we evaluate how MBDC's environmental process can be applied to fenestration. We are not sure where this journey will take us, but we expect that this collaboration will change the way the window industry works," said Republic chief operating officer Les Teichner.

"We are starting with the vision that there is something important to learn that lowers our costs, improves our performance and overall product quality, enhances the customer experience with our product and leaves a smaller footprint on the environment," he said.

According to MBDC co-founder William McDonough, the architecture and building industry has been hungry for manufacturers to provide environmental leadership.

"Republic was thoughtful enough to stake out a leadership position in the window industry, to pursue an active role in re-thinking the manufacture of windows in relationship to the environment," said McDonough.

During phase one of the project, Republic and MBDC will take a look at what the cradle-to-cradle philosophy means in the context of the building of windows. Part of this will be talking to suppliers, and looking at all of the elements that go into Republic's production capacity, where those materials come from, how they are used and what becomes of them when the window has reached the end of its useful life.

"Part of our commitment to our customer base is to be innovative and to stay associated with contemporary trends as a responsible societal member," said Teichner. "We want to affiliate ourselves with people who themselves are world class and are looking at these issues in a different way. MBDC has distinguished itself as a cutting-edge firm, and we look forward to a long association with them."

Read MRO Today's cover story on Republic Doors & Windows.

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Jobless claims jump 17,000 in most recent week
New claims for unemployment insurance increased 17,000 to 378,000 for the week ended Dec. 6, according to the Labor Department. 

The four-week moving average was 364,750, an increase of 2,250 from the previous week's unrevised average of 362,500.

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. This is the ninth consecutive week both levels have remained below 400,000.

Continuing claims for unemployment insurance increased 11,000 to 3.3 million for the week ended Nov. 29. Continuing claims are those older than two weeks.

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External costs biggest impediment to U.S. competitiveness
External, non-production costs add nearly 22 percent to unit labor costs of U.S. manufacturers (about $5 per hour worked) compared to their major foreign competitors, according to National Association of Manufacturers (NAM) president Jerry Jasinowski. These costs are the primary competitive challenge facing manufacturers and their workers.

The finding is part of a new study, How Structural Costs Imposed on U.S. Manufacturers Harm Workers and Threaten Competitiveness, by economist Jeremy A. Leonard. Funded by St. Louis-based manufacturer Emerson, the study was released Dec. 9 by the NAM and the Manufacturers Alliance/MAPI.

“Severe global competition has caused manufacturing product prices to decline for the past seven years while non-production costs are skyrocketing,” Jasinowski said. “A recent survey of the NAM board of directors found that these extra costs are the No. 1 competitive challenge facing manufacturers, reducing investment, innovation and job creation. We are essentially shooting ourselves in the foot competitively by making it too expensive to make products in America.

“This report comprehensively documents these extra costs – corporate tax rates, employee benefits, tort litigation, regulatory compliance and energy – and estimates them at approximately 22 percent of the price of production for U.S. firms relative to our nine most important trade competitors,” Jasinowski said. “These external costs are twice the size of the average direct labor costs of U.S. manufacturers, and are a major factor in our loss of trade and jobs.”

Manufacturers Alliance/MAPI president and CEO Thomas J. Duesterberg said the study for the first time provides a comprehensive analysis of the unique cost burden carried by U.S. manufacturers.

“Now that the magnitude of these underlying costs pressures is understood, it is important that federal and state officials begin to address them with new pro-manufacturing policies,” he said. “Foremost among these should be tax, regulatory, health and legal reforms.”

The Leonard study introduces a “raw cost index” for manufacturers that compares the competitiveness of U.S. producers with those in its nine largest trading partners, and compares costs before and after the cost multipliers have been weighed.

“This study dispels the myth that most of our industrialized partners face higher manufacturing costs than we do,” Leonard said. “Our corporate tax burden is heavier than in eight of our nine largest trading partners, and pollution-abatement costs are significantly higher than in most other developed countries, including the so-called ‘green’ economies of Western Europe.”

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Simonds International awarded ISO9001:2000 registration
Joining the ranks of the world's most progressive companies, Simond's International was recently awarded registration in the more stringent ISO9001:2000 Quality Management System.

Having previously operated under the ISO9002 Quality System, Simonds obtained the new certification, which covers its manufacturing processes for carbon, bimetal and carbide bandsaw blades.

The ISO9001:2000 designation also recognizes that Simonds' overall business practices also meet a higher standard in continually improving its operation when dealing with distributors and customers.

"The ISO9001:2000 registration demonstrates our continued emphasis on meeting the needs of our customers today and then working to meet their expectations for ongoing improvement," said Simonds International president Ray Martino.

Simonds International maintains a network of factories, warehouses and distribution centers throughout the U.S., Canada, Germany and the United Kingdom to facilitate product distribution and order processing. Its products are sold through a comprehensive distributor base.

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Machine tool consumption declines in October
October U.S. machine tool consumption totaled $157.6 million, down 26.6 percent from September and down 8.7 percent from $172.5 million in October 2002, according to the Association for Manufacturing Technology (AMT) and the American Machine Tool Distributors' Association (AMTDA).

With a year-to-date total of $1.6 billion, 2003 is down 13.4 percent compared to the same period in 2002.

"Manufacturing output is improving and the impact on machine tool orders is positive but uneven," said AMT president John B. Byrd III. "In the Western region, monthly order rates outperformed 2002 levels for the past four months while the Northeast and Southern regions have had irregular gains, but the signs are there that the five-year slide is coming to an end."

U.S. machine tool consumption is also reported on a regional basis for five geographic break-downs of the United States.

Standing at $20.2 million, October machine tool consumption in the Northeast was down 22.2 percent from September's $26 million and down 27.1 percent compared to last October. The year-to-date total of $209 million was down 22.6 percent from the comparable figure for 2002.

Southern region machine tool consumption in October totaled $23.5 million, 23.2 percent below September's $30.6 million and 5.2 percent less than the total for October 2002. At $325 million, the year-to-date total was 8.2 percent ahead of the 2002 period.

October machine tool consumption in the Midwest stood at $64.7 million, off 39.7 percent from September's $107.4 million and 5.6 percent less than the total for last October. Year-to-date 2003 consumption reached $629 million, off 11 percent compared to 2002 at the same time.

Central region machine tool consumption was $29.6 million in October, 11 percent less than $33.3 million tallied in September, and off 25.5 percent from October a year ago. The year-to-date total of $263 million was 25 percent less than the comparable figure a year ago.

At $19.5 million, Western machine tool consumption in October was up 12.5 percent compared to September's $17.4 million, and up 66.5 percent compared to October a year ago. The year-to-date total of $157.3 million was off 21.5 percent compared to 2002 at the same time.

The United States Machine Tool Consumption report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment.

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UAW president calls Medicare bill disastrous
United Auto Workers president Ron Gettelfinger called the Medicare prescription drug reform bill, which passed the Senate Nov. 25, “disastrous” and a deplorable attempt by the Bush administration to privatize Medicare and force millions of retirees to pay higher premiums.

“This plan moves Medicare toward privatization and steers seniors and the disabled to private HMOs,” Gettelfinger said. “If President Bush thinks he can pull the wool over the eyes of 32.5 million retirees, he’s wrong. They’re too smart for that and will see this bill for what it really is: disastrous."

Gettelfinger said the legislation would make millions of seniors worse off.

“It’s a lose-lose for America’s senior citizens,” Gettelfinger said. “The only winners here are the political backers of the plans: the drug companies and the HMOs.”

Gettelfinger said the pharmaceutical industry, which lobbied heavily for the bill, would reap a $139 billion windfall profit because the legislation does not contain mechanisms to control prices and does not allow Medicare to negotiate prices for prescription medication.

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Israeli university develops high-power magnesium battery
Professor Doron Aurbach of the Bar-Ilan University's chemistry department in Israel and his team of scientists developed a rechargeable magnesium battery that can be recycled thousands of times with extremely low capacity fading. 

The battery, which is environmentally non-toxic and non-explosive, may reach a practical energy density of greater than 60 watt-hours per kilogram and demonstrates virtually no self-discharge.

The team said the battery has an operating temperature of -20 C to 60 C and possesses a stable, almost constant voltage of about 1.1V. Aurbach said he feels confident that the new battery’s energy density can rival that of lead-acid and Ni-Cd technologies.

“We feel the new magnesium battery technology is well suited for heavy-load applications and load leveling systems,” said Aurbach.

Currently, kilo-per-kilo, the new magnesium batteries may be able to generate roughly twice the amount of energy as their lead-acid counterpart. Aurbach and his team are currently working to develop more advanced magnesium batteries with higher energy density.

“It took us several decades to come up with a good rechargeable lithium battery, the lithium-ion system,” said Aurbach. “Because we have so many years of experience with lithium science and battery electrochemistry, I can speculate we may quickly develop new generations of magnesium batteries with a wide spectrum of applications.”

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3M to cut 125 workers
3M announced it will eliminate 125 jobs as demand falls for some of its industrial commodities. Affected workers will have 60 days from Dec. 31 to locate other work at 3M or face layoff.

"Global demand for many of our products has been encouraging, but U.S. demand for traditional abrasives and industrial tapes remains soft," said 3M Industrial Business executive vice president Harold Wiens.

Most of the cuts will take place at the company's Maplewood, Minn., facilities. During the company's 2001-2002 restructuring, 3M cut 6,500 workers from its payrolls. Since that time, layoffs have come at a slower pace, but the company is still restructuring eight business units into six.

"Cutting jobs is never an easy decision, but this action is necessary to reduce costs, increase our productivity and position our business for solid growth going forward," Wiens told the Star Tribune in Minneapolis.

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LeanWerks solution to cut time from machining process
Setpoint Systems Inc. created a new division, LeanWerks LLC, to oversee its innovative systems approach to outsource machining for industrial, medical and aerospace manufacturers who require custom-built parts and automation solutions.

"Using Setpoint's business expertise, we've developed a solution to a wasteful manufacturing process," said LeanWerks president Reid Leland. "We have developed a faster, easier way for our clients to go from art to part, bringing proven, state-of-the-art technology and a thoughtful systems approach to the fast-turn manufacturing market."

LeanWerks offers a way to eliminate a long used, but now unnecessary step in outsource machining. When a company needs a custom-made part for its manufacturing operation, designers create a virtual solid of the part using computer aided drafting software. A second drawing, much like a blueprint, is then created, printed and delivered or sent to a shop where it is used to manually program a machine to make the part. LeanWerks' system makes the second drawing unnecessary.

"We see this as an opportunity to offer a more efficient process for our customers," Leland said. "Ninety percent of the information we need to manufacture a part is contained in the first CAD drawing. Why start from scratch and create a line drawing when you don't have to? Our system allows our customers to e-mail us the virtual solid, instead of sending us a blueprint. We're helping them use their resources better by eliminating a huge step that isn't necessary."

"This is something we have been looking for, a shop that can work with us to help us avoid the tedious nature of making paper drawings," said Mark Coy, CEO of GSC Inc., a company that has been doing business with Setpoint for 11 years. "LeanWerks will help us bypass a lot of the bureaucratic, intermediate steps."

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Unemployment slips to 5.9 percent in November
Employment continued to trend up in November and the unemployment rate, at 5.9 percent, declined slightly from 6 percent in October, according to the Department of Labor.

Total non-farm payroll employment edged up by 57,000 in November to 130.2 million, seasonally adjusted. Some 8.7 million Americans were still without work.

Monthly factory job losses have averaged 17,000 since August, compared with an average decline of 53,000 for the 12 months ending in August. Employment in durable goods manufacturing was unchanged in November, while small job losses continued in nondurable goods.

The manufacturing workweek rose by 0.2 hour to 40.8 hours, and manufacturing overtime edged up by 0.1 hour to 4.4 hours. Since July, the factory workweek has increased by 0.7 hour and factory overtime has risen by 0.3 hour.

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Factory orders increase 2.2 percent in October
New orders for manufactured goods in October increased $7.3 billion or 2.2 percent to $341.2 billion, according to the Department of Commerce.

New orders for manufactured durable goods in October, up five of the last six months, increased $6.2 billion or 3.4 percent to $184.9 billion, revised from the previously published 3.3 percent increase.

New orders for machinery increased 1.8 percent in October to $21.8 billion. Within the machinery category, industrial machinery orders declined 4.4 percent in October following a 7.8 percent increase the month before.

New orders for computers and electronic products increased 3.9 percent in October to $34.2 billion. And, orders for transportation equipment, which includes motor vehicle manufacturers, increased 5.5 percent to $54.2 billion.

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OSHA cites hardwood mill following crushing accident
A Sparta, Wis., company is facing $150,000 in fines proposed by the Occupational Safety and Health Administration (OSHA) following a May 2003 accident in which an employee suffered several fractures to his pelvis, right leg and both hips while performing preventative maintenance on a conveyor system at the facility.

An OSHA investigation into the accident revealed that the Sparta Hardwoods Division of Midwest Hardwoods Corp. failed to develop machine-specific procedures to control hazardous energy sources and to train employees in energy lockout procedures. OSHA also charged the Sparta hardwood mill with failing to provide locks or other hardware to isolate energy during machinery servicing.

"This company failed to protect its workers," said Labor Secretary Elaine L. Chao. "This administration is committed to protecting workers from such accidents, and this significant fine of $150,000 demonstrates that we will vigorously enforce safety standards."

The Sparta Hardwoods mill employs about 24 workers in Sparta and is a division of Maple Grove, Minn.-based Midwest Hardwood Corp. The Sparta mill had never been inspected by OSHA.

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