www.tmanet.com. tooling & manufacturing association founded in 1925 by 8 tool & die co’s....
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www.tmanet.com
www.tmanet.com
Tooling & Manufacturing Association
Founded in 1925 by 8 tool & die co’s.
Chicago area association of 1,330 co’s.
Advocacy, Community, Information, Employee Benefits, Education, Group Purchasing & Business Services
You can find TMA and our membership at www.tmanet.com or just put “tooling” into Google and we come up one of 1.6 million (until they change their algorithm).
www.tmanet.com
We’ll be discussing . . . 1. What TMA members do
2. Import penetration of metal components, dies, and molds
3. How small and medium size manufacturers view global trade
4. Issues impacting small manufacturers:
ownership
costs
pricing
workforce
productivity
marketing
www.tmanet.com
www.tmanet.com Here’s what TMA members
do?Means of productiontools, dies, molds, jigs, fixtures, automation equipment
Intermediate inputscomponents made of metal and plastic and subassemblies
Value-added servicesDesign, engineering, prototyping, product development
Related servicesheat treating, plating, engraving
Customers Sell directly to OEMs or tier one or two suppliers to OEMs. Sell to companies larger than themselves. Key links in the domestic and global supply chains.
www.tmanet.com
NAICS3321
Forging &
Stamping
2001
99.3%
0.7%
Value of Shipments 24,063,000,000Value of Exports 277,000,000Value of Imports 177,000,000Balance of Trade 100,000,000
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NAICS 333514
Special Die/Tool,Die Set &
Fixturing Mfg.2001
6.7%
93.3%
Value of Shipments 7,979,000,000Value of Exports 321,000,000Value of Imports 546,000,000Balance of Trade (225,000,000)
www.tmanet.com
NAICS 333511Industrial Mold
Mfg. 200120.7%
79.3%
Value of Shipments 5,224,000,000Value of Exports 763,000,000Value of Imports 1,161,000,000Balance of Trade (398,000,000)
60% of imports from Canada, but China growing rapidly.
www.tmanet.com
Component suppliers feel underappreciated
“The economy is becoming increasingly conceptual. I think that’s good, not bad, for the economy as a whole. But if you’re a maker of stuff, it isn’t [good].”
– Fed Chairman testifying at a July 2003 Senate hearing.
“. . . firms benefit from falling prices on intermediate components and parts, . . . ”
Quoted from “Midwest manufacturing and trade with China” from the November 2003 Chicago Fed Letter
www.tmanet.com Who moved my
cheese?
www.tmanet.com
www.tmanet.com
Just Kidding
www.tmanet.com
Free but FairFair
Democrats
Labor
Smaller Manufacture
rs
Single issue fair trade
groups
Free
Republicans
NAM
Larger multination
als
Academic community and the Fed
Playing Field
www.tmanet.com
Free but FairFair
Democrats
Labor
Smaller Manufacture
rs
Single issue fair trade
groups
Free
Republicans
NAM
Larger multination
als
Academic community and the Fed
Playing Field
www.tmanet.com
Free but FairFair
Democrats
Labor
Smaller Manufacture
rs
Single issue fair trade
groups
Free
Republicans
NAM
Larger multination
als
Academic community and the Fed
Playing Field
www.tmanet.com
Metalworking Manufacturing Coalition
Industrial Fasteners InstituteForging Industry AssociationMetals Service Center InstituteNational Tooling & Machining AssociationNon-Ferrous Founders’ SocietyPrecision Machined Parts AssociationPrecision Metalforming AssociationSpring Manufacturers AssociationSteel Founders Society of AmericaTooling & Manufacturing Association
www.tmanet.comWhich path is most critical?Both important – One essential
www.tmanet.com Current Evaluation of Business
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Date
Ind
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3845
Excellent
Very Good
Good
Fair
Bad
26
www.tmanet.com Contract Mfg.
ownershipValue is in owner and his relationships. Sell design and production capability, not product.
Owner/operators take long term view.
Succession planning. Some sell to familyor employees. Some sell to competitorsor customers.
Without a succession plan why invest?
Should I invest in my business or in my retirement account?
Access to capital an issue. Banks are tough.
www.tmanet.com
Difficult to control costsTariffs lifted. Steel prices up 30% to 60%; shortages looming. Due to weaker $, transport cost, Chinese demand.
Material 5% to 60% of sale price.
Strong supplier (not just customer) relationships.
Double digit increases in healthcare. HSA AHP.
Product liability insurance. Was mainly problem with aerospace. Now also automotive and medical. Underlying issue is tort reform.
www.tmanet.com
Squeeze on marginsBreakeven on the first run. Squeeze out cost and make money on the second run.
That doesn’t work for “one shot” tooling or automation equipment jobs.
Used to be Price, Delivery, Quality – pick two.
Now it’s China Prices, Today, Perfect. Throw in FREE design and engineering services. And if material costs go up, absorb it.
www.tmanet.com
WorkforceI don’t want to run three machines!
How does this thing work?
Sensor groups.
Manufacturing technology programs at risk.
If I train them they leave.
The changing face of apprentice programs.
Life long learning – moving up the value chain.
Fewer, but better people.
www.tmanet.com
Multiple CAD Systems40 person Pro Mold & Die in Roselle operates with seven CAD systems
UNIGRAGHICS
PRO-E
CIMATRON
CADKEY
FastSURF
SMART CAM
SOLIDVIEW
www.tmanet.com
Productivity – IMTS 9/8-15Machines that cost $50,000 to $2,000,000 or more.
Automation. High-speed (30,000 rpm). Pallets.
Program and set-up in day to make parts overnight.
Automatic tool changers. Rapid set-ups.Flexible Cells.
In die or in mold assembly.
Lean manufacturing & 5s.(Sort, Set In Order, Shine, Standardize, Sustain)
Reduce secondary operationsand human intervention.
www.tmanet.com
www.tmanet.com
Marketing strategies
Diversify customer base and diversify process.
Brand the process or special tooling or equipment. Develop niche.
Do “no way in hell jobs” and earn better margins. Move up the complexity curve.
Form strategic alliances with U.S. or foreign partners.
www.tmanet.com
Component suppliers look for opportunities to make:
Subassemblies, not just discreetparts – move up value chain.
If not subassemblies, kits of parts that go into a subassembly.
Parts coupled with valued-added services like design & engineering.
www.tmanet.com Some marketing
examplesChicago area metal stamper selling to Japanese Tier 1 in Mexico.
A machining company has a strategy for producing “orphan products”.
Diversified 100 person company provides product development service, designs in Ukraine, build molds in-house and also acts as an agent for overseas mold source.
Addison, IL stamper makes parts for Motorola worldwide in Addison, in Mexico, and in China. Strategic global supplier.
www.tmanet.comTarget industries likely toremain strong in North
AmericaAerospace
Agriculture/Off-highway
Appliance/Home Products
Automation
Automotive
Computer/Business Machines
Defense/Ordinance
Electronics
Health & Medical
Hydraulics/Pneumatics
Industrial/Consumer Hardware
Instrumentation
Packaging
Telecommunications
Truck
www.tmanet.com
Target industries in theU.S. with products that:
Are highly engineered complex electro-mechanical devises.
Are produced with capital intensive highly automated processes and skilled labor.
Are assembled from high value components
Have unique technologically advanced applications.
Require extremely tight tolerancesand/or advanced materials.
www.tmanet.com
Target industries in theU.S. with products that:
Require considerable service support and maintenance
Are heavy and/or difficult and expensive to ship.
Are industrial or commercial, not consumer.
Are short lived, rapidly obsolete, or for one time use. (packaging, medical)
Are frequently changed and revised
www.tmanet.com
Target industries in theU.S. with products that:
Depend on short run production and JIT shipments.
Are demanded in both domestic and export markets – get involved in a global supply chain
Are demanded in U.S. for security reasons -- defense, homeland security, NASA, etc.
Require complex communications among engineers and project managers.
www.tmanet.com
NAICS 3391Medical Equipment
& Supplies Mfg.2001
82.7%
17.3%
Value of Shipments 53,595,000,000Value of Exports 10,549,000,000Value of Imports 9,020,000,000Balance of Trade 1,529,000,000
Percent Change from 1997 to 2001 in 1997 dollars was plus 18.9%.
www.tmanet.comThe Hedgehog Concept
From Good to Great
www.tmanet.com
How to reach TMA . . .
Bruce Braker, PresidentTooling & Manufacturing Association1177 S. Dee RoadPark Ridge, IL 60068Phone: 847-825-1120Fax: 847-825-0041Web site: www.tmanet.comE-mail: [email protected]