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APRIL 2018

Member Updates from AMT — The Association For Manufacturing Technology

What a start to Spring PRESORTED FIRST CLASS MAIL U.S. POSTAGE PAID PERMIT #163 DULLES, VA

Market Data Review, pg. 8

IMTS Exhibitor Workshop Updates Coming to a city near you!

AMT — The Association For Manufacturing Technology 7901 Jones Branch Drive, Suite 900 McLean, VA 22102-3316 Address Service Requested

IMTS Exhibitor Product Innovation Competition pg. 5

It’s a jungle out there Smartforce, pg. 6

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INDUSTRY NEWS Prima Power Laserdyne LLC has named Dominic Louwagie Product Manager for the LASERDYNE product line, with responsibility for defining and implementing the product roadmap for the LASERDYNE product line in support of the company’s growth Louwagie goals. Louwagie has more than 15 years of product management experience with leading technology companies. Most recently he was senior product manager of Entrust Datacard. Prior to that he held marketing, product management, and engineering positions with ADC Telecommunications, now TE Connectivity. In both companies, Louwagie was responsible for domestic and international business with a concentration on European and Asian markets. Shop Floor Automations celebrated 20 years in business in March 2018, marketing the milestone by changing its company logo and unveiling an upgraded website at www.shopfloorautomations.com. The company has been open for two decades in San Diego and specializes in solutions for software, machine monitoring, production scheduling, and improvements to legacy machines. On March 6, Hurco welcomed approximately 400 guests to its global headquarters in Indianapolis to its 50th anniversary open house. The event featured a toast led by Hurco President Greg Volovic and was attended by Indianapolis Mayor Joe Hogsett. There were additional appearances from IndyCar team owner/driver Ed Carpenter, NHRA team owner/driver John Force, and NHRA driver Robert Hight. Hurco staff also presented technical seminars and demonstrations for their newest technologies. Highlights from the celebration – including the debut of Hurco’s first music video - can be found at www.hurco.com/50.

Gehring Group has merged with copperING Group to unite both companies’ product portfolios. While Gehring’s focus is on technology for honing cylinders in combustion engines, copperING has extensive experience in manufacturing production technology for electrical powertrains, of increasing importance as production grows for electric vehicles. In combination with those technologies, Gehring brings its system and automation competence, as well as reliable order processing and an established service network for customers. HEIDENHAIN President and Managing Director David Doyle received a 2018 Silicon Valley 50 Award at Stanford University. This is the 11th annual Silicon Valley Global Awards being hosted by ITLG (Irish Technology Leadership Group), which brings Doyle together the most entrepreneurial minds in the Silicon Valley and beyond to honor top Irish and Irish-American executives making a significant impact in their field. A total of 50 executives are selected and honored each year. Doyle joined the company in 2016 and currently oversees organization and business development activities for electronics, automation, and machine tool capital equipment markets. Born in Nenagh, Co. Tipperary, Ireland, David attended St. Paul’s College, Dublin, and Maynooth University (National University of Ireland), earning a double honors degree in chemistry and experimental physics. He has also attended Stanford University for professional development programs.

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Brought to you by AMT — The Association For Manufacturing Technology

AMT — The Association For Manufacturing Technology ©2018 7901 Jones Branch Drive, Suite 900 n McLean, Virginia 22102-3316 703-893-2900 n Editor@AMTonline.org Contact AMT: Penelope Brown, 703-827-5275, pbrown@AMTonline.org

AMT NEWS Amber Thomas, Vice President Marketing & Communications Penelope Brown, Director Marketing & Communications Cesar Sosa, Graphic Designer Submit company news articles to: AMTonline.org/membercms ADVOCACY Amber Thomas 571-216-7448 athomas@AMTonline.org BUSINESS SOLUTIONS Kim Brown 703-827-5223 kbrown@AMTonline.org

This years 5K Winners #9 #8 #54 #23 #53 #22 #5 #4 #36 #30 #28 #33 #43 #57 #49 #24 #32 #55 #56 #19 #44 #21 #2 #51 #10 #46 #45 #3 #52 #50 #37 #41

Mike Hirsh 23:46 John Burley 23:49 Doug Woods 23:59 Timothy Mccarthy 25:45 Stacy Schroeder 26:03 Michael Eisler 26:05 Wade Anderson 26:16 Gary Lowery 26:30 Karl Kleppek 27:19 Damon Wolf 27:20 Mike Difranco 27:22 Jeffrey Clarkin 27:28 Sean Jiang 27:48 Eike Huebner 27:51 Brittany Belko 28:00 Erika Ward 28:06 David Warren 28:20 Mary Woods 28:46 Kim Tilstone 29:09 Bob Mosey 29:55 Dirk Von Gal 31:07 Tim Wetzel 32:19 Tim Thiessen 35:30 Elvira Thiessen 42:37 Cessala Hirsh 46:38 David Lawton 46:44 Joyce Lawton 46:46 Jim King 52:20 Teresa Anderson 52:22 Patty King 52:23 Nina Anderson 54:28 Peter Eelman 54:39

GLOBAL SERVICES Ed Christopher 703-827-5296 echristopher@AMTonline.org

MTCONNECT® Russ Waddell 703-827-5258 rwaddell@AMTonline.org

MANUFACTURING TECHNOLOGY Tim Shinbara 703-827-5243 tshinbara@AMTonline.org

MTINSIGHT Ian Stringer 703-827-5209 istringer@AMTonline.org

Bonnie T. Gurney 703-827-5277 bgurney@AMTonline.org

MEETINGS meetings@amtonline.org AMTonline.org/meetings

Michelle Edmonson 703-827-5242 medmonson@AMTonline.org

MEMBER SERVICES Steve Lesnewich 703-827-5227 slesnewich@AMTonline.org

SMARTFORCE DEVELOPMENT Greg Jones 703-827-5203 gjones@AMTonline.org

EXHIBITIONS Apply for space at IMTS 2018 Tom Snyder 703-827-5235 tsnyder@AMTonline.org Mark Kennedy 703-827-5220 mkennedy@AMTonline.org

FINANCE & HUMAN RESOURCES Becky Stahl 703-827-5246 bstahl@AMTonline.org

Melissa Williamson 703-827-5272 mwilliamson@AMTonline.org

STRATEGIC ANALYTICS Pat McGibbon 703-827-5255 pmcgibbon@AMTonline.org


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TECHNOLOGY Data transformations The following is an article I contributed to the Industrial Internet Consortium (IIC) for a framework on machine learning for manufacturing test beds. To learn more, visit www.iiconsortium.org/industrial-analytics.htm. Exploratory analysis of information will often reveal distributions that are skewed, thereby affecting how relationships in the data can be effectively measured with machine learning classifiers. The nature of data points to be measured may not indicate much strength. There may be data points that deviate from the overall pattern of the dataset. It may be the case that relationships in the data truly are inconclusive; however, it is worthwhile to apply transformation techniques to clarify these relationships. Identifying the appropriate categorical and quantitative data points to measure and specifying whether they are explanatory or response variables are the first steps involved in preparing to transform the information. It is also beneficial to think through any biases that may exist in the data. For example, if the response variable is biased based on another variable in the dataset, converting it into a ratio that cancels the effect of the bias and using this conversion as the response variable instead is one way to transform the data to be measured. To achieve greater dispersion, the variables being measured can be grouped within

applicable categories. Defining groups using mations aid in generating forecasted values with greater accuracy. Transformations can statistical packages that generate specified types of intervals is one approach that helps be mathematical or based on adjustments such as using indexes to represent a current the process of categorizing information be less arbitrary. Other techniques for grouping or scaled value of the series. Additionally, differencing is a type of transformation that data include using percentiles or clusteradjusts for the seasonality ing algorithms. and trend patterns to To establish a Creating helpful approximations stabilize the mean of the closer to normal with data tranformations distribution, series prior to using the mathematical data in certain time series Before After transformations algorithms. Differencing can be applied to seasonality produces a the natural values representation of the depending on the current data with its positive or negacorresponding data from tive nature of the the previous year. skew. These inThe transformation The ‘After’ plot indicates and improvement clude computing in the distribution. approaches described the log, square are specific to optiroot, cube root or applying common power mizing how to measure information by selectively altering the shape of the distritransformations such as Tukey’s Ladder of bution in a way that is still aligned with the Powers or a Box–Cox transformation on broader business and strategic perspectives the variables. The latter two power transformations use a power coefficient based on of each use case. The goal of the data transformation phase in machine learning lambda to transform the values. is to simplify complexities which may exist When reviewing the time dimension in in the data such that the information more historical data, a combination of transformations may need to be considered based appropriately falls within the parameters of on either seasonality and trend patterns or to the algorithms.  stabilize the variance in the data. This reducFor more from Nina, visit her blog at es the impact of time in order for the data to www.datametrologyworld.wordpress.com. be better statistically assessed. These transfor-

NINA ANDERSON

Data Scientist, Business Intelligence Group

MPETAC update On March 6, 2018, the Materials Processing Equipment Technical Advisory Committee (MPETAC) met to discuss the latest matters in export control. The purpose of this committee is to advise the Office of the Assistant Secretary for Export Administration with respect to technical questions that affect the level of export controls applicable to materials processing equipment and related technology. MPETAC covers articles, materials, and suppliers of metal-working equipment, numerically controlled machine tools, and robots. One of the committee’s ongoing goals is to integrate the control definitions between the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). “Fiber placement technology is the new 5-axis.” For the first time, fiber placement technology dominated the open discussion portion of the meeting. The U.S. manufacturers of fiber placement and tape lay-up technology have noticed an increase in European competition in the U.S. market. In this meeting, there were discussions re-

garding U.S. competition nationally and internationally. Two key areas were identified for consideration going forward: 1) continual improvements on end-use of such technology sold requiring an export license; 2) the role of third-party computer aided manufacturing (CAM) software for the fiber placement technology. Currently, there is no aftermarket CAM software for fiber placement. CGTech and Autodesk were mentioned as examples of companies that are developing CAM for fiber placement, but manufacturers generally stated they do not want third-party companies knowing how their machines work, because it is their intellectual property. Fiber placement machines cannot be programmed without proprietary software from the machine manufacturer. Today, proprietary software is necessary for such manufacturing technology for two reasons: intimate knowledge of how the machine works (which is clearly that firm’s IP), and what the machine is doing (improve the customer’s experience in their end use). Development of third-party CAM software

for use on a specific machine generally raised two main concerns, both pivoting on the ability of the third party to reverse engineer. The concern mentioned for manufacturers was: if there is third-party CAM software for a fiber placement machine, it means that machine has been reverse engineered to ensure the CAM works. If the machine can be reverse engineered for STEPHEN LAMARCA CAM, it can be reverse engineered to counter- Manufacturing feit the machine. The other reason being, if the Technology Analyst machine programing software is proprietary, the machine manufacturer provides the support for the machine and software and thus can see what the end-user is doing with the machine. If this use differs from what the end user claimed when having the distributor obtain the export license, they can alert authorities to protect themselves, and in some cases the manufacturer can even brick the machine.  For more information on the Bureau of Industry and Security Technical Advisory Committees (TAC) including a schedule of meetings, visit: https://www.bis.doc.gov/.


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TECHNOLOGY Are you up to speed on technology acceleration?

TIM SHINBARA Vice President, Technology

AMT has a primary obligation to the membership to ensure we provide relevant market intelligence and market access to best compete in today’s dynamic environment. We also have an obligation to take an over-the-horizon perspective of our industry both nationally and globally. Therefore, we continue our endeavor toward better understanding the changing landscape of transformative technologies and their impact on our industry’s businesses. Through these efforts we have had opportunities to meet the companies, see the technologies, and witness new partnerships that are making buzz words more practical. To ensure you, the member, and our industry have valuable insight of the changing landscape AMT initiated

a leadership community to specifically illuminate the reality of transformative technologies told firsthand by the companies building a business around them. The Manufacturing Tech Council (www.manufacturingtechcouncil.com/) provides manufacturing leaders both a platform to engage and content to accelerate technology awareness, improve planning, and build partnerships to ensure the U.S. is driving manufacturing technology to its next generation capabilities. The Manufacturing Tech Council is an opportunity to directly engage with the market movers as well as better understand the potential technologies or partners to best-position your business. The Tech Council is also intended to build timely

relationships and momentum for AMT’s inaugural conference, MT360; making its market debut in Silicon Valley in 2019 (June 18 – 20, 2019, Santa Clara, CA). MT360 is a first-hand immersion into the tech, the people, and the businesses transforming our industry, today. Interested in learning about transformative technologies to help you develop and drive strategy from the convenience of your own office or mobile device, then MTCouncil membership is for you. Additionally, we challenge our industry movers to participate in MT360 and help carve the path to the next-gen market. Find out more about MT360 from Bill Herman at bherman@amtonline.org.

Manufacturing Tech Council Transforming Manufacturing Through Advanced Technology Join the Manufacturing Tech Council for exclusive access to the tools you need to understand and capitalize on the latest technology trends impacting manufacturing. This membership-based community exists at the forefront of emerging technologies, bringing together a network of manufacturing and technology leaders to chart the course for the future of our industry

Visit manufacturingtechcouncil.com to schedule a demo.

LESSONS LEARNED How to swim with your data

ANDREAS WEBER President, REGO-FIX Tool Corporation

In 1984, John Naisbitt wrote in his book Megatrends that “we are drowning in information but … starving for knowledge.” While his book was written 34 years ago, his insight is even more true today. The importance of data has always been forefront to me as a business owner. Like most managers, I would much rather make a decision on hard facts, as opposed to using just instinct or gut feel. Surrounded by a plethora of data — input, details, results and figures — I’ve had plenty of information to draw from. Through the years we had been doing well at turning this data into information to help

the business continue to have success and grow. Over time, however, I began to realize that we were actually drowning in this data. Carly Fiorina, former CEO of Hewlett-Packard Co. once said, “The goal is to turn data into information and information into insight.” Yes, we had a flood of information, but as I learned, we really did not have insight, and much less actionable insight. As we explored means to help us swim through the data waters, it became apparent we were not taking full advantage of a highly valuable asset: granular knowledge of our customers’ buying patterns and trends. With assistance from business intelligence

software and other outside resources, we were able to consolidate, search, and visually analyze our information. Our data was refined into a useful tool — knowledge that helped us make smarter decisions, ask better questions, develop more effective marketing strategies, and increase sales. Lesson learned? You probably have more useful data than you realize. If you don’t give your data the right environment to thrive, you will find it difficult to realize its full value. However, if you can turn data into knowledge, you have an invaluable asset that will help your company thrive and grow. 


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IMTS Exhibitor Workshop Updates, coming to a city near you! Your success at IMTS is always our priority and we want to do everything we can to help you to reach your company goals this September. As a new addition to our exhibitor communication and training efforts, we are pleased to announce the launch of our new IMTS Exhibitor Workshop Updates in nine cities across the country. Designed to dig even deeper than the traditional Exhibitor Workshop held in January, these updates focus on key issues in exhibitor operations, marketing & sales, and show news. The events are free to all IMTS exhibitors and will be presented by IMTS show staff. This is a great opportunity to get the latest updates, find new promotional opportunities and most importantly ask your questions as we head into the final months of preparation for the show. Here’s a brief peek at the agenda: • In The State of IMTS, we’ll discuss projected attendance, market conditions, media outreach, and the theme of the AMT Emerging Technology Center and the AMT Additive Manufacturing Emerging Technology Center. • Connecting with Customers will offer 10 tips and proven tactics that ensure buyers come to your booth, concluding with the No. 1 tactic of successful IMTS exhibitors: utilizing the new and improved IMTS Exhibitor Passport. • In Operations Updates, your show operations team will demonstrate how to make the e-Kit work for you. Ordering services, learning about the new hanging

PETER EELMAN

Vice President, Exhibitions & Business Development sign procedures, making badge changes, and any important questions you have will be answered here. • Finally, What’s on the Horizon will look at the changes from IMTS 2016 to IMTS 2018, including new locations for the expanded Additive Pavilion, the Machine Components, Cleaning and Environmental Pavilion, the Controls, CAD-CAM, Software Annex, and the Hannover Messe USA exhibits. You’ll also find out about the inaugural IMTS Exhibitor Product Innovation Competition, which was announced in the last Exhibitor Report e-Newsletter (March 21). IMTS wants to recognize exhibitors with the newest manufacturing technology that will be on display at IMTS 2018. Winners will be divided among three rankings: gold, silver, and bronze. They will receive recognition in various forms of publicity, ranging from a

“Exhibitor Product Innovation winners earn prominent publicity for IMTS 2018!” feature story on IMTSTV and in the IMTS Insider e-newsletter to prominent at-show signage and an interview on the Making Chips podcast. Check out more details on www.imts.com/exhibitor/contest/. We’ll close the Update with an overview of the McCormick Place neighborhood enhancements and what’s on the horizon for IMTS 2020.  Register for the IMTS Exhibitor Workshop Updates at: www.xpressreg.net/register/imtsworkshop/start.asp. Learn more about the IMTS Exhibitor Product Innovation Competition at www.imts.com/exhibitor/contest/.

IMTS becomes founding partner of the Smart Manufacturing Experience With its community in advanced manufacturing and a wealth of technology partners, IMTS became a founding partner of the Smart Manufacturing Experience, taking place April 30 – May 2, 2018, at the Boston Convention Center. Created by SME and AMT, the Smart Manufacturing Experience provides an interactive learning environment for manufacturers to explore advanced technologies to boost productivity, increase sales, improve efficiency and reduce costs. IMTS is offering manufacturers complimentary invitations to the event’s Experience Zone. To register for your pass, visit www.smartmanufacturingexperience.com/amt. As the leading manufacturing technology trade show in North America, IMTS will showcase some of its front-end technology partners in the Smart Manufacturing

Experience, including the Department of Energy’s Manufacturing Demonstration Facility at Oak Ridge National Laboratory, Local Motors, and MTConnect. Oak Ridge National Laboratory ORNL will showcase the results of its research on the use of data analytics to qualify and certify additively manufactured parts. In addition to optimizing components for end use, data analytics can reduce costs and time to market. Applications of interest include 3D printed highly non-weldable nickel-base alloys for gas turbine engines and the development of new high-temperature aluminum alloys. Local Motors IMTS will also bring technology partner Local Motors and the famous Strati 3D-printed vehicle to the Smart Manufacturing Experience. 3D printed, assembled

live from the ground up and driven off the show floor at IMTS 2014, the Strati proved the viability of Cincinnati Incorporated’s Big-Area Additive Manufacturing system and gained worldwide attention. MTConnect MTConnect is a royalty-free open standard that fosters interoperability between controls, devices and software applications. Created with support from AMT, MTConnect was introduced at IMTS 2008 and is now one of the most widely-used protocols in manufacturing. There will be workshop and knowledge bar presentations on MTConnect during the Smart Manufacturing Experience.  To get a complimentary registration to the Smart Manufacturing Experience courtesy of IMTS, visit smartmanufacturingexperience.com/amt.

Workshop Dates: Tuesday, May 15 Detroit, Mich. Wednesday, May 16 Indianapolis, Ind. Friday, May 18 Chicago, Ill. Wednesday, May 30 Anaheim, Calif. Friday, June 1 San Francisco, Calif. Tuesday, June 12 Atlanta, Ga. Thursday, June 14 Providence, R.I. Tuesday, June 19 Cleveland, Ohio Thursday, June 21 Cincinnati, Ohio


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SMARTFORCE

GREG JONES

Vice President, Smartforce Development

“We also need to continue to change perceptions about careers in It’s a jungle out there manufacturing. The skills gap has presented quite the chal- espoused in AMT’s Smartforce in the manufacturing industry’s ability Development: An excellent lenge to hire enough qualified candidates to fill 1. Improve alignment between our open positions. For many job functions, education and workforce has been especially difficult besystems; opportunity recruiting cause we’re in competition with many other 2. Expand leadership roles for industries for the same small pool of talent. local employers in education and for that is A new study by Burning Glass and the workforce systems; U.S. Chamber of Commerce Education 3. Improve employer signaling for coming at the Foundation’s Center for Education & Work- its workforce needs, particularly force demonstrates that the job categories around changing competencies associated with the largest shortages include: and credentialing requirements Smartforce healthcare (1,153,617 openings); business for the fastest-growing and and financial operations (985,214); office hardest-to-fill jobs. Student and administrative (461,263); sales (388,857) While Amazon is searching for and computers and mathematics (356,527). its secondary headquarters city, the For comparison, the skills gap in mancompany is also building wareSummit at ufacturing has been running at a rate of housing and logistics centers in about 300,000-340,000 over the past year all over the country. Amazon IMTS 2018.” or so. You can also make a case that manu- cities has become expert at the three solution facturing is competing for talent in some of those categories listed above. In addition to the imbalance of demand and supply in engineering jobs, the study noted a significant swing in the installation, maintenance, and repair job function (field service technicians). Since 2012, when the Bureau of Labor Statistics reported a 14 percent surplus of field service techs, there’s now a 2 percent gap in the available talent to the number of open positions, a 16 percent swing in just five to six years brought on by retiring baby boomers, but most significantly, by a lack of qualified talent in the education-to-work pipeline. The Burning Glass report suggests three solutions to the skills gap, the same as we’ve

Students engaged with a mentor from Rippl3D. com to design 3D printed tailfin blades during the air rocket challenge at the Smartforce Student Summit at IMTS 2016.

steps listed above. We frequently talk to community college leaders and economic and workforce development professionals who are being bombarded by Amazon executives to start up or ramp up the logistics and supply chain programs at their schools. The attention that Amazon is getting makes it even more critically important that we re-double our efforts. It is expensive for schools to invest in programs to develop more talent in machining, welding and, mechatronics that serve the manufacturing industry. School leaders must see a demonstrated need for those types of programs. We also need to continue to change perceptions about careers in manufacturing.

An excellent opportunity for that is coming at the Smartforce Student Summit at IMTS 2018. I encourage all AMT members to work with the schools in their local area, especially if you’re located within a day’s drive of Chicago, to take their teachers and students to the summit. We will continue to change perceptions about careers in manufacturing. By working in our local communities, we can continue to change the skills gap in favor of manufacturing.  For more information, have the schools in your area visit IMTS.com/student. For more frequent updates on Smartforce Development or the Smartforce Student Summit, follow me on Twitter @GregoryAJones.


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CMTSE celebrates its 25th anniversary When it comes to purchasing machinery and other technology for their businesses, companies want to know they are working with a knowlegeable sales professional that they can trust. The Certified Manufacturing Technology Sales Engineer designation (CMTSE) is the only nationally recognized program that designates an individual as having the skills and knowledge needed to perform effectively as a manufacturing technology sales professional. This year, the program is celebrating its 25th anniversary. The concept for the CMTSE program began in 1985 when the AMTDA committees and Board of Directors set out to address a need for a program to increase and recognize sales professionalism in the industry. After extensive research, including surveys, interviews, and a great deal of commitment, time, and expense by dedicated industry volunteers on technical work groups, consultants and practitioners, the original intent and purpose of the certification program materialized, and the first administration of the CMTSE examination took place in March 1993. The CMTSE program requires continuous professional development via lifelong education and training, and a recertification process every three years after earning the credential. To date, more than 1,800 individuals have participated in the program with new CMTSEs earning the certification every year. CMTSE founding principles have not changed and the reasons to become a CMTSE today are the same: it’s a way to stand out above the competition. The title Certified Manufacturing Technology Sales Engineer adds credibility by tying the individual to a third-party accredited and industry-recognized certification program. “When CMTSE was first proposed to me over 20 years ago, it was a chance to earn a certification in machine tools, which I thought was a very niche industry. Now I realize that our little niche is actually where the rubber hits the road when it comes to manufacturing all the things created by humans,” said Tim Thiessen, Vice President of Sales & Marketing at Okuma and CMTSE since 1997. “This is what

has kept me in this industry and both challenged and satisfied me professionally all these years.” “If you haven’t considered becoming a CMTSE, or if you’ve been putting it off, I urge you to take that step. Don’t do it for ‘credentials’ – do it for yourself and for those you are serving,” Thiessen said. “You will be better for it and others will see the additional value from you.” “I’ve been in the machine tool business less than five years. Soon after I started, I noticed that most of Technical Equipment’s top performing sales engineers were CMTSEs,” said Tom Nugen, Sales Manager at Technical Equipment and CMTSE since 2015. “As a manager, I felt that I needed to understand what set them apart and wanted to know if the CMTSE certification played a role in their success. Accordingly, I went through the preparation process and took the CMTSE exam. It was very apparent that this certification involved much more than just knowing machine tools.” “To pass this exam you must understand the industry, territory management, metrology, machine construction, as well as many other manufacturing disciplines,” Nugen said. “This certification is truly a differentiator among sales people in our industry. Anyone who obtains the CMTSE should be proud of that accomplishment.” “I am thankful to those who put this certification together. Knowingly or not, they perpetuated excellence in our industry,” Nugen said. “We are pleased that AMT manages this program to help with the development of staff. Obtaining CMTSE certification is a must for every sales engineer who wants to see success.” CMTSE’s value might have been summed up best by Optical Gaging Products President Steve Flynn, one of the original CMTSEs from the class of 1993: “CMTSE … it just means more!”  The CMTSE program is supported by AMT-The Association For Manufacturing Technology, the National Tooling and Machining Association (NTMA), and the Precision Metalforming Association (PMA). To learn more about obtaining the CMTSE credential, visit www.cmtse.org.

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AMT congratulates 13 new CMTSEs In February, 13 candidates passed their exam to earn the Certified Manufacturing Technology Sales Engineer (CMTSE) credential, recognizing them as knowledgeable, experienced and committed to the industry. CMTSE is celebrating its 25th anniversary and is the only nationally recognized accreditation of its kind that gives customers the certainty that they are dealing with a qualified sales professional. We welcome: • Bradly Baas, Technical Equipment Sales Company, Ohio • Joshua Belhumeur, Lyndex-Nikken Inc., Ind. • Corey Boese, Technical Equipment Sales Company, Ind. • Matthew Fenton, Hartwig, Inc. - Tulsa Division, Okla. • Joseph Gurzick, EBBCO INC., Mich. • Chris Harris, Hartwig, Inc. - Tulsa Division, Okla. • Mark Kohmescher, Technical Equipment Sales Company, Ohio • Jesse R. Meade, Koma Precision, Inc., Ohio • Brent L. Ohl, OSG USA, INC., Ill. • Shannon Sallee, Hartwig, Inc. - Tulsa Division, Okla. • Gary J. Sullivan, Spark & Co., Canada • Johnathon S. Taylor, OSG USA, INC., Wash. • Joshua von der Heyde, Allendale Machinery Systems, Inc., N.J. AMT also appreciates the support of the proctors who assist during the three-hour exam. The next exam will be held on July 25, 2018. The registration deadline is May 30, 2018. Questions? Please contact Clara Mora, Smartforce Certifications Manager at 703-827-5276 or at cmora@AMTonline.org.

CONNECT WITH AMT RENEW YOUR MEMBERSHIP

visit www.AMTonline.org today to learn more!


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MARKET DATA REVIEW What a start to Spring

PAT MCGIBBON

Vice President, Strategic Analytics

It’s been a month of change and disruptions in the markets so where to begin. The stock market was 8% stronger a month ago and despite the decline Consumer Confidence climbed to greater than 100 in March, a truly rare event. Orders are growing at double-digit rates not seen since 2010 and many of U.S. can’t get the material to meet customer demands fast enough. News from the MACH in the UK is very promising as is the feedback from members exhibiting in the Shanghai Machine Tool Show – CCMT.

The release noted that in the past two weeks the U.S. Government announced two new trade related actions that impact our industry. A national security action to help revitalize the steel and aluminum industry and another set of tariffs (a Section 301 case) on China to retaliate for their unfair trade and industrial policies. Included on this page is a set of graphics to explain U.S actions in unfair trade case against China and includes China’s actions in response retaliation for our retaliation. AMT is for free and fair trade. We have provided both positive and negative feedTariffs back on U.S. trade actions throughout the The U.S. government announced on past. Meanwhile, our membership, like March 18th that the steel and aluminum so many other manufacturers around the industry was essential to our nation’s defense world, have spent considerable resources to and levied hefty tariffs on the import of develop work arounds to unfair practices these products to provide relief to the dothat were not addressed. Sometimes the mestic industry from imports then exempted company couldn’t develop a work around every country till May except China. A and just had to decide whether to do busilittle less than a month later, the government ness in that market or not. This was often determined that China’s current trade polthe case with China. icies are unreasonable and discriminatory Today, most manufacturers are survivand are a burden on and restriction of U.S. ing, even thriving, within the status quo. Certainly, they would like to see trade commerce. Essentially, the government is saying that China is leveraging American issues resolved and be able to re-allocate companies with China’s market size to the resources dedicated to expensive work obtain U.S. companies’ intellectual property arounds be re-aligned with strategic growth while restricting those companies’ ability initiatives. In today’s global economy, almost no manufacturer could survive without acto conduct business in China. That is a lot cess to the U.S. or Chinese markets. These of trade action and tariffs levied inside a two countries represent more than a 45% month. When tied to the numerous anof manufacturing in the world when added ti-dumping cases whose preliminary filings together. As our government takes steps were announced last fall, many companies in our industry will have to step back and to improve our standing in international reevaluate what this will mean to their suppartnerships they need to be aware of the ply-chain and their cost structure. ramifications their actions could have on Here’s where you can help, become a the companies they intend to help. It is here manufacturing technology rock star. AMT where we need your help, your input! sent out a press release to members on three recent trade actions that impact our industry. China The release notes that last fall a dumping case Since there is so much going on with that levied temporary tariffs on carbon steel China and trade, we thought it would be a tube products used to produce cutting tools. good idea to piece together some informaChinese Imports of U.S. Mfg Tech Products $million and Share of Chinese Imports $900

13%

$750

12%

$600

11%

$450

10% 9%

$300 2014

2015 Imprts MT Impact

2016 China % of World

2017

tion about China, the U.S. and machine tool trade. China’s exports $602 million of machine tools and parts to the directly to the U.S. in 2017. I emphasize the addition of parts to these ratios because parts were represented 41% of the total dollar volume of machines and parts together. Their exports of these products to the U.S. represent about 12 percent of their total machine tool and parts exports worldwide. The tariffs will likely lead to higher prices in the U.S. market for Chinese machines and components. However, the rapid growth in the U.S. manufacturing technology market over the past year suggests that some of tariff can be absorbed by change in demand. US imports of Chinese machine tools and parts in 2017 totaled $776 million or 13% total imported from all countries. You will note that this is considerably more than the $602 million that China reported exporting to the U.S. There are several reasons that both numbers can be correct. There are several charges that are added to the export value like the cost of freight, insurance, transfer fees, duties etc. Changes in exchange rates can have an impact on the final value as well. The biggest difference is likely the exports that China makes to other countries or ports, like Canada or Mexico, that make their way into the US. While China would report those machines as an export to one of those countries, the U.S. would collect duties and report the origin as China unless the product was substantially changed. Global trade is very important to global economic health. Unfair trade reduces the positive impact of growing trade volumes on specific countries economies. Shutting down trade isn’t the best solution as governments work to level the playing field globally. Unfair trade practices can’t be tolerated in the long run or the good works of the World Trade Organization will unravel as one country after another twist the rules to garner greater wealth for their constituents. The question is what tactics are the most effective balanced against the disruption and economic impact that the tactics are likely to inflict. If you would like to provide your position on the trade actions noted above and their impact on your company, please contact Amber Thomas, Vice President of Marketing and Communications, by phone at 571-216-7448 or email at athomas@amtonline.org. If you have any questions about any of the issues or data noted above, please contact Pat McGibbon, Vice President of Strategic Analytics at 703-827-5255 or by email at pmcgibbon@amtonline.org.


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ON GOVERNMENT FY18 spending deal reached In March, Congress and the president finally agreed to disagree on several budget issues to keep the government funded through the rest of this fiscal year ending September 30. In the end, the deep cuts proposed in the administration’s initial budget request were moderated by members of Congress intent on enacting the $1.3 trillion, 2,000+ page deal. Several manufacturing programs that many feared would be diminished were restored or actually strengthened. Below is a snapshot of funding for programs of interest to manufacturers. The Department of Energy’s Advanced Manufacturing Program saw an 18 percent budget increase over last year’s level despite the administration’s request to decrease it by nearly 70 percent.

The National Institute of Standards and Technology (NIST) received $1.2 billion, $247 million above FY2017. This amount includes a $10 million increase over the FY2017 level for the NIST Manufacturing Extension Partnership. Targeted funding will continue to focus on cybersecurity through cutting-edge research, expanded advanced manufacturing opportunities, and the promotion of standards to maintain fairness in the marketplace. Funding also includes continued support for Manufacturing USA, the framework for network of manufacturing innovation institutes to advance U.S. manufacturing capabilities. National Science Foundation (NSF) funding totals $7.77 billion, including $295 million above the FY2017 enacted level and

Trump announces tariffs

$1.1 billion above initial request. Funding is provided for basic research across scientific disciplines to support the development of effective Science, Technology, Engineering, and Mathematics [STEM] programs. The Department of Labor funding earmarks $145 million, a 53 percent increase, for training programs utilizing the flexible and effective apprenticeship model. Workforce Training programs saw an increase of $80 million above FY2017. The Omnibus includes more than $21 billion for infrastructure projects across the country, including transportation, energy, water, and cyber. For more details on the FY18 funding, visit: www.appropriations.senate.gov.

China retaliates

The stiff tariffs could affect some $50 billion in Chinese imports across 1,300 categories of products

China is targeting a narrower range of 106 types of U.S. goods and products, including major export earners

The imports targeted for 25% levies range from high-value-added goods to intermediate goods

Soybeans and planes are the most valuable U.S. exports to China under threat of the tariffs, worth nearly $23 billion in 2017

Consumer goods such as dishwashers, televisions and automobile parts are targeted, but retail is excluded

China has not yet announced the start date of the new tariffs. The Chinese Ministry of Commerce will likely begin negotiating with the USTR

The tariffs do not go into effect immediately. They may never be imposed if China agrees on a deal to open the country further to U.S. imports

The Chinese tariffs are crafted to hit states that supported President Trump hard, targeting S.U.V.s and agricultural products

U.S. companies have until May 22 to raise objections; a public hearing on the issue is scheduled for May 15 in Washington Sources: Bob Davis, Josh Zumbrun and Lingling Wei, “U.S. Announces Tariffs on $50 Billion of China Imports,” WSJ, April 3, 2018; Reuters staff, “China commerce ministry condemns U.S. tariffs, will take countermeasures,” Reuters, April 3, 2018; Lingling Wei and Yoko Kubota, “China Tariffs Threaten U.S. Cars, Planes and Soy in Response to Trump,” WSJ, April 4, 2018.

AMBER THOMAS Vice President, Marketing and Communications


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ROAD WARRIOR “Magic in an App!”

STEVE LESNEWICH Vice President, Member Services

Oh boy am I excited about this one! So how many times have you been to a meeting or attended a conference where there are flip charts, white boards, or slides on a screen full of data, graphs or pictures that you really want to capture in some way? Most of the time, right? If you’re like me, when there is an image I want to have, I use my phone to try to take a picture. The end result is pictures that are, at best, severely lacking in all respects. I either get half the chart or an unintelligible image because it was taken from a funny angle. Or I jump up, blocking everybody’s view behind me, and am immediately humbled by that little zoom circle on my iPhone camera that never works the way I want it to. I end up with a great close-up of just some of the slide, or a picture of the whole stage, including the speaker, with the slide image so small that it can’t be enlarged to the point of being readable. Or I end up with the wrong picture because the speaker moved on to another slide. Add it to

the pile of worthless images headed straight for the “delete” bin. Big problem? Yes! Is there a solution? Oh yeah! It’s an app called Office Lens that works like magic. Office Lens was developed by Microsoft and it works on iPhone and Android. Even better, it’s FREE! To give credit where credit is due, I first came across Office Lens when our CFO, Becky Stahl, forwarded me an image from a white board during a conference call we were on. The image was remarkably clear, glare free and evenly proportioned. When I saw that the image was created in Office Lens, I went right to the Apple store and downloaded the app. What does Office Lens do? It trims, enhances, digitizes, and makes pictures of white boards, documents, business cards, photos, and projected screens readable. It can even convert images to Word and PowerPoint documents that are editable. It’s kind of like having a scanner in your pocket. Personally, I

like it because I can now capture and digitize my crinkled receipts, hand written notes, and my granddaughter’s amazing skills in finger painting. Sounds too good to be true, right? I had to test this app and see if it was as good as it seemed. My test was on the Amtrak train 111 from Metro Park, N.J., to Union Station, D.C. The image was my “seatmate’s” PowerPoint presentation. I was sitting back in my seat pretending that I was checking my email and took a photo of the screen. Then I quickly opened the Office Lens app and did the same thing from the same angle. As you can see in the two images, it went from the first photo, a picture of a laptop on a meal tray, on a train that was traveling at a very high speed, to the dramatically different second photo — an easily readable document. Here are some other features that Office Lens offers: • It trims images and cleans up glare, shadows, and colors perfectly • It can extract contact information from business cards and save it to your address book or One Note • It converts images to Word or PowerPoint files • It takes pictures from the side and other odd angles and easily squares up the image In my humble opinion, this is a great app, not only because it’s free, (which is very important) but because it is so easy to make difficult-to-photograph images not only perfectly clear but editable. I mean really — how cool is that? 

Solution of the month KIM BROWN DIRECTOR, BUSINESS SOLUTIONS “I don’t know if you are the right person …” That is how a lot of the emails I receive start out and the answer is YES, I am the right person! Immediately following The MFG Meeting I received an email asking about sponsorship opportunities for the MTForecast conference this October in Indianapolis. This member witnessed the success of the sponsors at The MFG Meeting and wanted to jump on the next opportunity. I steered them to the appropriate contact at AMT, Bill Herman - Director - International Exhibitions & Sponsorships,

but also followed up with a question. I had noticed that this member was purchasing quite a few company and contact records in MTProspects, a tool inside of MTInsight that allows users to search for companies and contacts by industry, location, and/or size and purchase records as needed without signing a contract. My question was, “How can we help you find what you are looking for?” They were unaware that our team of Industry Analysts answer hundreds of research requests for members each year, mostly at zero cost. Long story short, the member was able to get help on a project that would have taken them considerably more time and

effort without the help of our custom research team. The moral of the story is ask questions! AMT probably has the answer and if we don’t, we will find someone who does. Accelerating connections – that is what Business Solutions is here to do. The Business Solutions team at AMT focuses on increasing the exposure and awareness of AMT product and service offerings to the industry and understanding our members needs. Our primary objective is connecting the right people and companies with the right services and information. I’ll be sharing some of our success stories and shedding light on how you can best utilize your AMT membership. 


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MFG ADVOCATE

PENELOPE BROWN Director, Marketing and Communications

Networking tips for the networking phobic We all know it’s important to build your personal network to develop and maintain professional relationships. We know it, and many of us set out to do it. But what if you’re the more reserved type? Do you identify with any of the following? • You go to a conference and spend cocktail hour staring at your phone over a glass of wine (or trying to hold a conversation with the one or two people you actually know). • You stare longingly at another attendee/ speaker/expert and really, really want to strike up a conversation … but don’t. • You die a little inside when a conference speaker forces you to interact with the people around you. You aren’t alone, friend – I have done all of the above. But there’s the saying: “we do business with people, not with companies.” And we’re likely to do even more business with people we know and like. So how can you get over your “networkaphobia” to have a productive

event and make successful connections? Here are a few tips you might want to try. Come prepared with questions. Have a few softballs in your back pocket to get the conversation going. “What types of new things are you working on at XYZ company?” “What business software/tools/practices have you added recently?” “What do you think is most important for someone who wants to advance their career in this industry?” Listen. Your conversations are going to be awkward if you’re constantly just thinking about what to say next. Listen intently to other people and be present for them to keep the talk flowing. Develop your elevator pitch. How would you describe your company and your role in it in 30 seconds or less? Coming with questions is great, but be sure to have something interesting to say about yourself. Set goals and a “finish line.” Consider this rewarding yourself for doing what you don’t want to do. “I will give myself permission to go back to my hotel room

after I speak to two new people.” Set challenges to meet people and pat yourself on the back when you do. Over and over again, when AMT members are asked about the top benefits of membership, they repeatedly point to the networking opportunities. Through meetings and events, membership committees, and other chances to get involved, savvy AMT members know that they can find plenty of chances to get connected with their business peers. And the universe of networking opportunities expands far beyond those offered by AMT. There is everything from the brown bag lunch ‘n learn with your local chamber of commerce to the vast and wild unknowns of the internet. The hardest part is taking the first step. You might not ever be the kind who “never meets a stranger,” but you don’t have to be the most outgoing person in the room to develop a high-quality professional network. Develop your own strategy and the results will follow.

“We all know it’s important to build your personal network to develop and maintain professional relationships.”

Email me at pbrown@AMTonline.org.

“I can see clearly now” — Why networking matters BY BROOKE N. SYKES, CMTSE AMT MEMBER Looking back to the beginning of March and the recent MFG Meeting in Miami, an increased clarity came to me sometime during and right after the meeting. The clarification was one for the question “WHY?” Why be involved in an association? Why spend the money to go to the MFG Meeting? Yes, Miami is great in early March. Yes, the MFG Meeting speakers and sessions offer beneficial pieces of information for me to use. Yes, the food and music at the closing event are great. But there must be more to make the investment worth it. The answer is yes there is. In the past, I was always mindful of a certain characteristic/reward of my AMT involvement and my attendance at the MFG meetings, but I never really focused on it. I was talking to Steve Wherry (past AMTDA Chairman) about the MFG Meeting and the usual question of “WHY?” quickly came up. Steve sums up his answer to “WHY?” in one word – CONNECTIVITY. He said he

found clarity when he experienced a separation from his major builder product line. As a distributorship owner there was a dire necessity to find the next partnership to supply products and services to his customer base. He turned to his relationships. Many if not most of those relationships were built through his involvement at both AMTDA and AMT. Steve’s company would not be where it is today without his connectivity! I have to say I agree, but my moment of focus came from a different point of view – my career. At the beginning of 2018 I found that I had a new assignment: Find a new job! As the MFG Meeting approached, the question came up of do I go to the meeting or not? Wow, a tougher “WHY?” to answer this time. For the first time the meeting attendance cost came directly out of my personal pocket. How could I justify that, especially being unemployed? As I focused on the dilemma, I began to see more clearly. How could I not attend what would be one of the largest potential interviewing platforms to occur in my industry? Yes, the weather was great, the food was the great, sessions infor-

mative, but that was not my focus. My connections due to my past involvement with my association became clear to me as the meeting progressed. I formed several new connections as well. I accomplished more to help my situation than I ever could have imagined. Not to mention, I gained confidence by the realization of being connected. It also renewed the pride I have for our industry as well. This is where I need to be. I know we can all look to modern technologies and the internet to replace how things are processed today. I am still a very firm believer in the need for interaction within our species, especially us, the manufacturing sub-species! As one of my mentors said early in my career, “People want to do business with people; this is a human fundamental. And further, they want to do business with people they know and respect.” Thanks to John Hackenberg for this tidbit of wisdom! In conclusion, don’t just be mindful of the benefit of being connected to others in our world through AMT meetings and involvement, FOCUS on it. You will be amazed at the connections you develop and how they will enhance you and your company’s well being!


22 Deadline to Register for CMTSE exam in October SEPTEMBER 10–15 IMTS 2018 Chicago, Ill.

4–5 MT Sales Fundamentals Workshop

12 IMTS Exhibitor Workshop Update Atlanta, Ga.

JULY 23 Summer Economic Update Webinar

21 IMTS Exhibitor Workshop Update Cincinnati, Ohio

19 IMTS Exhibitor Workshop Update Cleveland, Ohio

14 IMTS Exhibitor Workshop Update Providence, R.I.

NOVEMBER 1 Deadline to Renew CMTSE Credential

17 CMTSE Certification Online Exam

10–12 MTForecast 2018 Indianapolis, Ind.

OCTOBER 9–13 31.BI-MU Milan, Italy

AUGUST 9 Show Committee Chicago, Ill.

JUNE 1 IMTS Exhibitor Workshop Update San Francisco, Calif.

13 Technology Issues Committee Webinar Meeting Online Exam

25 CMTSE Certification Online Exam

30 Deadline to Register for CMTSE exam in July

John R. Wald Company, Inc. Huntingdon, Pa. Primary Products: Metalforming Machines

prospective customers on their own. - USA Today

FOR UPCOMING ANSI B11 AND ISO MACHINERY SAFETY MEETINGS, GO TO www.b11standards.org Contact Dave Felinski, B11 Standards, Inc., at dfelinski@b11standards.org for updated information.

PARI Robotics Inc. Rochester Hills, Mich. Primary Products: Automation/ Integration/Robotics/Custom Systems

DID YOU

WELCOME NEW MEMBERS

30 IMTS Exhibitor Workshop Update Anaheim, Calif.

18 IMTS Exhibitor Workshop Update Chicago, Ill.

16 IMTS Exhibitor Workshop Update Indianapolis, Ind.

15 IMTS Exhibitor Workshop Update Detroit, Mich.

13 Technology Issues Committee Webinar Meeting

10-11 MTConnect TAG Meeting Disputanta, Va.

MAY 9 CMTSE Certification Online Exam

30–May 2 Smart Manufacturing Experience Boston, Mass.

APRIL 26 Spring Economic Update Webinar

2018

CALENDAR

of small-business owners say “ 50% they do not know how to reach SOURCE Staples survey of 503 small-business owners

KNOW... Exhibitor Passport helps you reach customers. Learn more at ExhibitorPassport.org/IMTS

AMT News: April 2018  
AMT News: April 2018