US Cutting Tool Consumption Up 7.4% for First 2 Months of…

US Cutting Tool Consumption Up 7.4% for First 2 Months of…

Apr 16, 2018

“US Cutting Tool Consumption Up 7.4% for First 2 Months of 2018” By USCTI, AMT – Press Release Featured on AdvancedManufacturing.org February US cutting tool consumption totaled $190.12 million according to the US Cutting Tool Institute (USCTI) and AMT – The Association For Manufacturing Technology. This total, as reported by companies participating in the Cutting Tool Market Report collaboration, was up 3.5% from January’s $183.61 million and up 8.7% when compared with the $174.98 million reported for February 2017. With a year-to-date total of $373.73 million, 2018 is up 7.4% when compared with 2017. These numbers and all data in this report are based on the totals reported by the companies participating in the CTMR program. The totals here represent the majority of the US market for cutting tools. “February cutting tool sales show that business continues to grow, gaining 3.5% over January, a very solid start to 2018,” said Philip Kurtz, President of USCTI. “Year-over-year sales posted a 7.4% gain and it certainly looks like the trend will continue. News of tariffs and pressure on raw material prices could have an effect, but with strong market momentum it is certainly not a given that much will change. March may or may not bring winds of change, but it will for sure bring spring.” “Orders for cutting tools have benefitted in recent months from a faster rate of business investment spending, due to recent tax cuts and renewed strength in key markets such as metals, mining and machinery,” said Mark Killion, Director of US Industry at Oxford Economics. The Cutting Tool Market Report is jointly compiled by AMT and USCTI, two trade associations representing the development, production and distribution of cutting tool technology and products. It provides a monthly statement on US manufacturers’ consumption of the primary consumable in the manufacturing process -– the cutting tool. Analysis of cutting tool consumption is a leading indicator of both upturns and downturns in US manufacturing activity, as it is a true measure of actual production levels. Historical data for the Cutting Tool Market Report is available dating back to January 2012. This collaboration of AMT and USCTI is the first step in the two associations working together...

Putting the ‘smart’ in manufacturing

Putting the ‘smart’ in manufacturing

Apr 11, 2018

By Silke Schmidt, University of Wisconsin-Madison, Phys.org “Although smartphones and tablets are ubiquitous, many of the companies that make our everyday consumer products still rely on paper trails and manually updated spreadsheets to keep track of their production processes and delivery schedules,” says Leyuan Shi, a professor of industrial and systems engineering at the University of Wisconsin-Madison. That’s what she hopes to change with a research idea she first published almost two decades ago. During the past 16 years, Shi has visited more than 400 manufacturing companies in the United States, China, Europe, and Japan to personally observe their production processes. “And I have used that insight to develop tools that can make these processes run much more smoothly,” she says. These tools are based on the notion of a “digital twin,” or a computer representation of physical assets (machines and people) and processes that helps managers better operate the systems that connect them. Take, for example, a car manufacturing company with 15 different suppliers, each of which delivers a specific car part. As these parts arrive at the company, they are assembled by people who work in different departments, such as sheet metal cutting, heat treatment, welding, painting and so forth. The overall goal of this manufacturing system is to fill a set number of vehicle sales orders. That’s a classic example of a supply chain: a set of processes that link raw source materials to final consumer products. A company’s goal for making supply chain manufacturing more efficient might include decreasing production downtime due to delivery delays for required parts, and better adjusting to unpredictable events, such as rush orders, machine breakdowns, or defective parts. The technology Shi has developed helps managers meet these goals. With a database system, user software and equipment sensors, it creates a digital twin of what is physically happening at the supply facilities and shop floors. Managers can use that digital representation to visually track the global production progress in real time and adjust workflows as needed. The tool provides continuously updated start times for each assembly stage and constantly refined delivery times for the customers who ordered the cars. “That’s what we mean by smart manufacturing,” Shi says. The technology...

China Lists $50B of US Goods it Might Hit With 25 Percent…

China Lists $50B of US Goods it Might Hit With 25 Percent…

Apr 5, 2018

“China Lists $50B of US Goods it Might Hit With 25 Percent Tariff” By Joe McDonald, Associated Press Featured on Manufacturing.net China on Wednesday issued a $50 billion list of U.S. goods including soybeans and small aircraft for possible tariff hikes in an escalating and potentially damaging technology dispute with Washington. The country’s tax agency gave no date for the 25 percent increase to take effect and said that will depend on what President Donald Trump does about U.S. plans to raise duties on a similar amount of Chinese goods. Beijing’s list of 106 products included the biggest U.S. exports to China, reflecting its intense sensitivity to the dispute over American complaints that it pressures foreign companies to hand over technology. The clash reflects the tension between Trump’s promises to narrow a U.S. trade deficit with China that stood at $375.2 billion last year and the ruling Communist Party’s development ambitions. Regulators use access to China’s vast market as leverage to press foreign automakers and other companies to help create or improve industries and technology. A list the U.S. issued Tuesday of products subject to tariff hikes included aerospace, telecoms and machinery, striking at high-tech industries seen by China’s leaders as the key to its economic future. China said it would immediately challenge the U.S. move in the World Trade Organization. “It must be said, we have been forced into taking this action,” a deputy commerce minister, Wang Shouwen, said at a news conference. “Our action is restrained.” A deputy finance minister, Zhu Guangyao, appealed to Washington to “work in a constructive manner” and avoid hurting both countries. Zhu warned against expecting Beijing to back down. “Pressure from the outside will only urge and encourage the Chinese people to work even harder,” said Zhu at the news conference. Companies and economists have expressed concern improved global economic activity might sputter if other governments are prompted to raise their own import barriers. The dispute “may compel countries to pick sides,” said Weiliang Chang of Mizuho Bank in a report. “U.S. companies at this point would like to see robust communication between the US government and the Chinese government and serious negotiation on both sides, hopefully...

The Surprising Key To Keeping The U.S. Expansion Going…

The Surprising Key To Keeping The U.S. Expansion Going…

Apr 2, 2018

“The Surprising Key To Keeping The U.S. Expansion Going: Manufacturing Innovation” By Marco Annunziata, Forbes  The current U.S. economic expansion is already one of the longest on record—it turned 104 (months) in February. The manufacturing sector holds the key to making it the longest. Manufacturing is currently seen as unglamorous, unloved, needing protection just to survive. I believe this view is profoundly misguided, and that it is in manufacturing that we will see the most powerful growth-enhancing technological transformation ahead. The U.S. economy has picked up speed, and the global economy with it. The IMF recently noted that we are enjoying the most broad-based synchronized upswing since 2010. The U.S. labor market keeps expanding at a robust pace and has created over 17 million jobs since the recovery started; the unemployment rate holds at a very low 4.1%, and strong economic activity keeps attracting more people into the labor force. Wage growth remains muted, however, with average hourly wages increasing at a modest 2.6% pace in the last twelve months. This is a problem. Stronger wage growth would give better support to household consumption, and it would make it easier to reduce income inequalities. Slow wage growth is disappointing, but it should not be too surprising. True, a tighter labor market should boost wages—I believe that it will, and that in the coming months we will see more robust wage pressures. But sustainable strong wage growth depends on productivity. Only when productivity rises at a robust pace can workers enjoy faster wage increases without compromising their firms’ competitiveness and market position. Productivity growth has been dismal of late. In the decade prior to the financial crisis, 1996-2005, U.S. labor productivity rose at an average pace of 3% per year. During the recovery, 2011-2017, it averaged a measly 0.7%–over four times slower. Most other advanced economies have suffered a similar fate. What I find most worrying is that manufacturing sector productivity has suffered an even more severe slowdown: from 4.8% to 0.3% a year. From the early 1990s to the onset of the global financial crisis, productivity growth in manufacturing outpaced the rest of the economy by a significant margin; now it is lagging behind....

U.S. Trading Partners, Businesses Say Tariffs Will Backfire

U.S. Trading Partners, Businesses Say Tariffs Will Backfire

Mar 12, 2018

By Lorne Cook & Joe McDonald, Associated Press, Manufacturing Business Technology BRUSSELS (AP) — The Trump administration’s decision to impose tariffs on aluminum and steel imports drew warnings Friday from businesses and U.S. trading partners that the measure could backfire, provoking a trade war without resolving the problems it’s intended to address. President Donald Trump said the tariffs, due to take effect in 15 days, are needed to protect U.S. workers. Businesses say the 25 percent tariff on imported steel and 10 percent levy on aluminum will jack up costs, raising prices for consumers and potentially putting people out of work. Trump has long singled out China as being unfair in its trade practices and for dumping cheap steel on the global markets, depressing prices. But experts say the new tariffs will in fact not affect China much, but rather hurt key allies like the European Union and South Korea. The move drew consternation outside the U.S. The Chinese government said it “firmly opposes” the move but gave no indication whether it might make good on threats to retaliate. “These measures could make a significant impact on the economic and cooperative relationship between Japan and the U.S., who are allies,” said Japan’s foreign minister, Taro Kono. The EU said it hoped to be exempt from the tariffs, like Canada and Mexico are, or that the issue might be solved in international arbitration at the World Trade Organization. If not, the EU vowed to retaliate. “We will have to protect our industry with rebalancing measures,” said Cecilia Malmstroem, the EU Trade Commissioner, who this week confirmed that EU states are finalizing a list of U.S. goods — from peanut butter to bourbon — to hit with retaliatory tariffs. The head of Eurofer, Europe’s main steel federation, said Trump’s reasons for slapping tariffs on steel and aluminum were an absurdity and that the move could cost tens of thousands of jobs across the continent. The tariffs would cost lost trade worth $2.6 billion a year for the EU and $1.1 billion for South Korea, according to Chad Bow, senior fellow at the Peterson Institute for International Economics. While that is not a lot for the economy...