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February 2017



Common use cases for MTConnect ®

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The India Trade Mission was a winner

The MTConnect standard enables next-

The week prior to IMTEX, participants from seven AMT member

generation manufacturing by allowing communi-

companies took part in the trade mission, visiting 10 large manufac-

cation between different types and brands of

turers in Pune and Bangalore. Everyone walked away with new

devices on the factory floor.

high-level contacts and local insight.

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A monthly report to members from AMT - The Association For Manufacturing Technology

A closer look: tax proposals come to the table Since the election, there has been increased commentary on the prospects for comprehensive tax reform in the 115th Congress. The election of President Trump and a Republican majority Amber Thomas V.P. - Marketing & in Congress represent Communications the first real opportunity for comprehensive tax reform in 30 years, but dissent within the party and a full agenda may doom the effort. Much of the groundwork on the House proposal is done. The House Ways & Means committee, led by Chairman Kevin Brady (R-TX), spent the last two years researching, holding hearings, and soliciting comments for a blueprint that is now part of the House Republican “A Better Way” agenda introduced by House Speaker Paul

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Tax reform

Gain the competitive advantage, attend the MFG Meeting!

Address Service Requested

AMT - The Association For Manufacturing Technology 7901 Jones Branch Drive, Suite 900 McLean, VA 22102

By Kathy Webster AMT Media Communications Manager

Every spring AMT members and industry leaders gather at the MFG Meeting to discuss the forces transforming the manufacturing industry and strategies to lead a successful manufacturing business. Hosted by AMT and the National Tooling and Machining Association (NTMA), this year’s MFG Meeting, will be held March 22-25, 2017, at the Omni Amelia Island Plantation in Amelia Island, Fla. The MFG Meeting provides the opportunity for

executives from every step in the manufacturing chain to network and attend conference sessions that focus on technology, industry economics, market trends, workforce development and business leadership. Keeping informed on the latest technology is crucial to maintain a manufacturing company’s competitiveness, especially in an evolving manufacturing industry. Tech-focused agenda highlights include: • Additive’s Future in Manufacturing by Kirk Rogers, technology leader at GE’s

Center for Additive Technology Advancement. Rogers will discuss how additive is changing the economics of manufacturing, offer ways manufacturers can start their AM journey, and share how GE is pushing the limits of additive in part production at its new $39-million flagship additive technology center located in Pittsburgh, Pa. • Innovation & the Future of Manufacturing by New York Times Bestselling Author Josh Linkner. As a tech

The MFG Meeting

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Tax reform

Cont’d from page 1 Ryan (R-WI) last Congress. Ryan, who chaired Ways & Means before Brady, played a major role in the reform plan. President Trump is expected to send his plan to Congress for consideration, but few details are currently available. The president has voiced conflicting messages on his support for major provisions of the House plan. Senate leaders, led by the Finance Committee Chairman, have raised their own concerns with the plan and are considering drafting their own proposal. These differences must be resolved to move forward. Here are the details we have now: Rates: It’s widely known that the United States has the highest corporate tax rate in the industrialized world, and the third highest in the entire world. A major goal of every tax reform proposal is lower rates. The House blueprint would reduce the federal corporate rate to 20 percent. It would also create a

AMT NEWS Published monthly by the Marketing & Communications Department ©2017 AMT The Association For Manufacturing Technology 7901 Jones Branch Drive, Suite 900 McLean, Virginia 22102-3316 703-827-5234 E-mail: Ruth Sharpe . . . . . . Editor & Designer Kathy Webster . . . . Media Communications Manager Amber Thomas. . . . Vice President - Marketing & Communications Penny Brown. . . . . Director - Marketing & Communications

Contact AMT AMT NEWS Ruth Sharpe . . . . 703-827-5234 . . . . .

AMTonline Eric Gorte . . . . . . 703-827-5236 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Submit company news articles .

Advocacy Amber Thomas . 703-827-5230 . .

Asset Management & Operations Jeffery Traver . . . 703-827-5251 . .

Exhibitions - Apply for space at IMTS 2018 Tom Snyder . . . . 703-827-5235 . . Mark Kennedy . . 703-827-5220 . .

Finance and HR Becky Stahl . . . . . 703-827-5246 . . .

Global Services Ed Christopher . . . 703-827-5296 . . .

Manufacturing Technology Tim Shinbara . . . 703-827-5243 . .

Meetings . . . . 888-379-4659 . . . Member Services Steve Lesnewich . . . 703-827-5227 . . Melissa Williamson . 703-827-5272 . . .

MTConnect® Tim Shinbara . . . 703-827-5243 . . .

MTInsight Ian Stringer . . . . . 703-827-5209 . . .

Smartforce Development Greg Jones . . . . . 703-827-5203 . . .

Strategic Analytics Pat McGibbon . . . 703-827-5255 . . .

AMT NEWS/February 2017 new 25 percent maximum rate for pass-through entities. President Trump would lower taxes to 15 percent to all businesses. It’s unclear if businesses would be required to incorporate to be eligible for the lower 15 percent rate. AMT & Death Tax: The corporate alternative minimum tax and estate tax would be repealed. Expensing: Under the blueprint, the cost of capital investment would be fully and immediately expensed rather than depreciated over time. It would be automatic and available for all business investment (including buildings, tangible and intangible assets). The intent is to move away from an incomebased system to one based on consumption. Tax Credits and Deductions: With the exception of the R&D tax credit, just about every deduction and tax credit would be repealed. That includes the deduction on interest as a business expense. Repatriation: Currently, the United States is the only country among the G-7 nations that has a worldwide system of taxation. Under a worldwide system, a corporation headquartered in the United States pays taxes on all its income, regardless of where it’s earned. The foreign earnings are taxed when they are “repatriated” by bringing the income back to the U.S. Under a territorial system, the United States would tax U.S. income and would exempt foreign income. This would allow U.S. companies to play on a more level playing field. The House plan would adopt a territorial system by first levying an immediate 8.75 percent on existing offshore earnings held in cash/cash equivalents and taxing

other earnings at 3.5 percent, both payable over eight years. From then on, there would be a 100 percent exemption on earning from foreign subsidiaries. The president has said he would impose a one-time repatriation tax of 10 percent payable over 10 years and keep the worldwide system of taxation. Border Adjustment: The border adjustment included in the House plan is causing the most contention. The blueprint would apply a border adjustment that would rebate tax on U.S. exports and tax imports, converting the current business income tax to a destination-based cash flow tax. The adjustment is intended to be consistent with the border adjustments applied by other countries. The president has made conflicting statements on border adjustability so it remains to be seen if an adjustment is included in the proposal he sends to Congress. Meanwhile, some in the Senate leadership have voiced their opposition to the border adjustment. Right now, however, no formal proposal has been introduced in the Senate. Elimination of the border adjustment is a non-starter in the House. Without it, lawmakers have no obvious way to pay for the business tax rate reductions. Next steps: House tax writers are requesting input from stakeholders. Your participation in the process is essential to making Congress aware of the varying impacts on companies in different parts of the manufacturing supply chain. Contact the Ways & Means Committee at to get involved.

MFG Advocate …

So, what do I post? A social media content primer By Penny Brown, Director AMT Marketing & Communications

So your business is getting started on social media. That’s great! Welcome to your digital marketing journey. But once you get your accounts up and running, what types of content should you look to post? Here is a quick primer on channels and how to approach them.

Facebook Getting started: First, before you create your page, take the time to gather some good content. That means photos of your shop and staff (consider hiring a pro to take some) and writing some basic content – a brief “about” statement that describes your company, a calendar of company events, and videos. Try to include an image with every post you create, which increases the likelihood that someone will click on it. Put some thought into a basic timeline for making posts. The beauty of Facebook business pages is that you can create and schedule posts in advance, meaning it’s easy to sit down and create a week’s worth of posts at one time. You can assign user roles to a variety of people at different tiers of access for your page – meaning it’s easy to get several people involved. Remember, Facebook doesn’t post things chronologically, and just because someone likes your page it doesn’t mean your posts are going to show up in their feeds. For business pages, it’s a pay-to-play world (though you don’t have to spend much to be successful). Advanced: In recent times, Facebook’s algorithm (which determines what posts get in

front of how many eyes) has been most friendly to video, especially video that users upload natively to Facebook (vs. linking to it from another site). That’s because Facebook wants to compete with YouTube as the internet’s video upload platform of choice. And that’s doubly true of the new Facebook Live feature, which is almost guaranteed to get you at the top of your followers’ feeds.

Twitter Getting started: The primary complaint about Twitter is that its real-time feed is overwhelming and difficult to follow. I’d challenge you to instead think of Twitter as the world’s biggest 24/7 networking party. Use it as an engagement platform – a place to reach out to your customers, partners, and journalists, and even your elected officials. Finding, following, and tagging these people in your posts will help you connect with them. The Twitter feed also loves videos and images. Adding a visual element to your posts increases the likelihood that they’ll get clicks. Advanced: Journalists love to use Twitter to find sources for their stories. You can leverage this as a way to get coverage for your company. Find reporters who cover topics relevant to your business and tweet to them directly with your company news, or offer to act as a source on their future stories. Local, state and federal government officials and agencies can also be reached in the same manner.

LinkedIn Getting started: It’s easy enough to duplicate or slightly

MFG Advocate See Page 3

Border adjustability and territoriality level the global playing field By Pat McGibbon VP - Strategic Analytics

The goal of the House Republican tax plan is a simpler, fairer and flatter tax code that strengthens American competitiveness rather than hinders it. On the business side, that means leveling the playing field for U.S. products by lowering rates, encouraging investment and moving to a territorial, international tax system like most of our foreign competitors. A majority of our trading partners tax economic activity where it is consumed or purchased. Exports, and the revenue they generate, are not taxed in the country of origin but in the

country where they are bought. In the U.S., however, revenue is taxed here (as the country of origin) and also abroad where the product is bought. When the profits from the export sales are brought back to the United States, they are subject to tax again. The House plan would level the playing field for U.S. manufacturers by moving the United States toward a territorial tax system similar to that of our trading partners and by lowering the corporate rate to 20 percent (down from 35 percent) to be competitive to the rest of the world. Border adjustability is an essential element of a more equitable global business environ-

ment for U.S. companies. As an example, let’s compare two identical products – one from a U.S.-based manufacturing technology builder and the other from a foreign country with a 20 percent business tax rate. Other factors are equal, including cost structure, margin, importer of record, units sold domestically and units exported. Based on AMT’s analysis, under current law, U.S.-based manufacturers’ profits are about 70 percent of their foreign counterparts and their global tax liability is three to four times more. The House blueprint levels the playing field for these two competitors yielding the same

profit levels and tax liabilities in both instances. How? 1. The blueprint will lower the corporate rate to 20 percent (two points lower than the world average). 2. Exports and export revenue will not be taxed (same rules as our international competitors). 3. Imports will be taxed as revenue in the United States ( as U.S. products are treated in destination countries). 4. Importers of record will collect the revenue for selling their product in the United States and therefore pay the tax – not

Tax code

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February 2017/AMT NEWS

Diverse data reporting for diverse member businesses By Ian Stringer Director, MTInsight

It’s true that AMT’s members are connected by their engagement with the manufacturing technology sector. However, there is quite a bit of diversity when you look more closely at our membership profile. AMT’s membership is made up of manufacturers who represent a variety of distinct product areas. In addition, our distributor members cover clear territories of the country and specialize in offering unique technology solutions and services to a number of different customer industries. AMT is able to deliver tailored business information either through ad-hoc custom research or through members’ use of our business intelligence platform. In fact, the business intelligence platform found at helps to extend our custom research resources by automating report generation and delivery for the data most commonly requested. However, even with a platform that’s automated to give regular updates on new information, we recognized what users needed was to be able to customize the contents and shape of that data to suit their unique requirements.

the show will change on a daily basis. This gives the Passport user a very useful tool to easily generate new lists with this same set of criteria for continuous updates to marketing efforts. Figure 2 illustrates an example of how the saved scenario feature is used within the USMTO app. The tool is able to summarize many product categories and rename them by size of the major product type so that the user can easily analyze reports by large or small VMCs. From that, you can imagine the ability to build dozens of specific market reports covering varying

combinations of machine categories, geographic regions (including custom defined territories) or time frames. The saved scenario feature and its associated custom report building capabilities is one way AMT can extend its resources to satisfy a wide range of needs for our members. Feel free to contact Jackie McFarland at 703-827-5206 or or Asim Mukhtar at 703-827-5244 or if you have questions about the platform applications or need access to

modify your Facebook posts to use on LinkedIn, though be mindful of making your LinkedIn posts businesslike and relevant to a professional audience. While Facebook is a good place to have some fun, LinkedIn posts should always wear a proverbial shirt and tie, or at least a golf shirt and khakis. Keep it polished and stick to topics you’d

There was a lot to like from our recent Winter Economic Update Webinar at the end of January. Not only did Oxford’s Mark Killion do an outstanding job updating participants on the impact of a Trump presidency, but AMT staff also gave short briefings on your association’s advancement Pat McGibbon in expanding market access opportunities, indusV.P. - Strategic Analytics try intelligence assets and technology trends tools. I had the opportunity to share how AMT has built a deeper pool of industry intelligence assets and is working to create a manufacturingfriendly environment for building, selling and servicing.

Expanding Market Data

In 2016, the two associations took the collaboration one step further by jointly commissioning IHS, a global player in economic consulting, to produce a quarterly forecast on the cutting tool market. The first iteration of that forecast was presented at IMTS and the first publication of the results was in December. It has been widely praised by its audience – cutting tool producers in either association who contribute to the Cutting Tool Market Report. In 2007, AMT provided the initial funding for a global forecast of the machine tool market covering 20 countries and the six top industrial markets. The next year, CECIMO – representing the European machine tool associations and the MTA in the UK, the Indian Machine Tool Manufacturers’ Association, and the Australian Manufacturing Technology Institute Limited joined with AMT to fund the production of this forecast twice a year and pledged to work toward increasing participation in the program. During 2016, this collaboration expanded to include China and Taiwan and expects to add South Korea in early 2017. These three countries will be contributing information on what currently amounts to nearly 50 percent of the world market for machine tool products, increasing the accuracy and fidelity of the global forecast tremendously.

As a result, several apps on the platform include a feature that gives users the ability to select and save criteria that can be easily recalled whenever new results are available. For example, Figure 1 shows a user who has saved a set of criteria in the IMTS Exhibitor Passport app: IMTS 2016 attendees who are interested in VMCs, who are from the user’s northeast territory, and who do business in the aerospace industry. For pre-show marketing, the number of registrants who match this criteria leading up to

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Industry intelligence goes deep, deep deeper

During 2016, AMT expanded its relationships with other organizations to increase access to timely, detailed data on our markets. The expansion has led to deeper dives into the analysis of what is going on in your business and the wider manufacturing technology market. In 2013, AMT and the United States Cutting Tool Institute began a collaborative effort to provide better detail on the market for cutting tools by merging our market data surveys. This created a 33 percent increase in market coverage for the combined programs.

BI platform “saved scenarios” feature

MFG Advocate

Market Data Review

discuss if you were attending a professional networking event. Like other platforms, using a visual element, like a photo or a graphic, increases the likelihood that your posts will get clicked. Advanced: Through its publishing platform, LinkedIn is a fantastic place to show your company’s expertise. Long-form articles written by members of your company’s staff and then shared within relevant groups on LinkedIn can draw attention and increase engagement. (And while there are many groups that focus

on manufacturing, I suggest you start with sharing your posts in AMT’s!) Social media is a must-have for any marketer – a great way to connect with your partners and clients, while also giving your company a more human voice and digital presence. When it comes to marketing, it is no longer an option. Your audience is there, and it’s growing every day. Want more social media tips? Have a success story to share about how social has worked for you? Drop me a line at

Over the past year, recruiting initiatives and collaborations with other organizations have helped improve the USMTO program. Additionally, the Advanced Workholding Technology market report was rewritten from scratch in 2016 and launches with the first report in 2017 on January 2017 data. In 2016, Strategic Analytics began providing in-depth market studies on a limited basis as constrained by resources. The first iterations received rave reviews on the quality, thoroughness and value. AMT staff looked at the underlying market share issues on a member's brand then interviewed hundreds of customers and potential customers, as well as the brand’s distribution chain, creating an in-depth report identifying issues and suggesting solutions. While the in-depth studies come with a price, AMT provided custom research for nearly a thousand research requests in 2016 at no cost. These are just the highlights as to how AMT staff – your virtual staff – increased the depth of their understanding and offerings on the manufacturing technology market. Participation in the market surveys is open, at no charge, to members and non-members alike. Access to the cutting tool forecast requires that you are a member participating in the CTMR. Access to the global Oxford forecast by country and industry is available to those companies that subscribe to the Global Forecasting and Marketing Package, as well as those who attended the 2016 Global Forecasting & Marketing Conference. AMT provides up to four hours of complimentary custom research to members, with additional time billed at $100/hour.

Market Data Review

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AMT NEWS/February 2017 Market Data Review

February FEBRUARY 28 - MARCH 2 HOUSTEX - Houston, Texas

March MARCH 7 - 10 TECMA Mexico City, Mexico MARCH 15 CMTSE Certification - Online Exam Proctored online exam using your computer MARCH 22 - 25 The MFG Meeting Omni Amelia Island Plantation Resort Amelia Island, Fla.

April APRIL 4 MT Sales Fundamentals Workshop BIG KAISER Precision Tooling Hoffman Estates, Ill. APRIL 17 - 22 CIMT 2017 China International Center Beijing, China

May MAY 4 Spring Economic Update Webinar – Online Economics & Statistics Committee Meeting AMT Headquarters McLean, Va. MAY 8 MT Sales Fundamentals Workshop BIG KAISER Precision Tooling Hoffman Estates, Ill. MAY 9 - 13 EXPOMAFE - São Paulo, Brazil AMT Emerging Technology Center MAY 16 - 18 EASTEC West Springfield, Mass. MAY 17 - 18 Show Committee Meeting West Springfield, Mass.

June JUNE 14 CMTSE Certification - Online Exam Proctored online exam using your computer

JUNE 20 - 24 FEIMAFE - São Paulo, Brazil AMT Emerging Technology Center

September SEPTEMBER 12 - 14 WESTEC - Los Angeles, Calif. SEPTEMBER 13 - 14 Distribution Summit 2017 (D17) The Ritz-Carlton, St. Louis, Mo. SEPTEMBER 18 - 23 EMO - Hannover, Germany SEPTEMBER 19 - 20 Show Committee Meeting Hannover, Germany

October OCTOBER 11 - 13 GFMC Atlanta Marriott Marquis Atlanta, Ga. OCTOBER 24 - 26 SOUTH-TEC - Greenville, S.C.

November NOVEMBER 13 - 16 CCIMT - China Chongqing International Machine Tool Show Yubei, Chongqing, China

Please call 888-379-4659 for meetings information. Call 800-524-0475 for information on international events.

The MFG Meeting Cont’d from page 1

entrepreneur and investor in dozens of startups, Josh opens the conference with his keynote address on practical tools and a systematic process that manufacturers can easily implement to increase innovation and deliver bottom-line results. • Fast-Forward Future: The Competitive Technologies You Need to Know by AMT President Doug Woods. A lifelong and forward-thinking manufacturer, he will present an overview of the latest competitive technologies transforming manufacturing. Presentations on the economy and market trends include: • Contract Machine Shop Market & Oil Industry by Harbour Results President Laurie Harbour. She will shed light on how contract machining and additive manufacturing may influence future business models, as well as the current state and future forecast of the oil and gas industry. • Economic Outlook by Oxford Economics Founder John Walker. A leader on major projects with government

departments and multinational companies from Europe and the United States, John will take a close look into economic forecasts to help attendees gauge the market and hone their business strategic plan and sales projections. Back by popular demand, the MFG Talks offer inspiring 15-minute messages from AMT and NTMA members including Jim Carr, owner and president, Carr Machine & Tool, Inc. and cohost of Making Chips, a podcast for manufacturing leaders. The closing keynote presentation, Live in Vision Not in Circumstance, is sure to leave attendees feeling inspired as Jon Dorenbos, NFL Philadelphia Eagles long snapper and TV personality, shares his insight on ways to strengthen leadership style and business.

Events beyond MFG While attendees are being inspired, their travel companions can take part in Lifestyle Reporter Anna De Souza’s program: What’s Trending in Beauty, Fitness Nutrition & Skincare.

Remember to bring sneakers to run or walk in the Miles 4 Manufacturing (M4M) 5K race, which donates all proceeds to programs promoting careers in manufacturing. Taking place Thursday, March 23, at 6:15 a.m., the M4M is a great way to enjoy the island landscape and pump some energy into your day before the MFG Meeting sessions begin. (For more details, see the article on page 7.) Of course, the MFG Meeting offers plenty of networking opportunities including breakfasts, receptions, dinners, a golf outing on the award-winning Ocean Links course, and a dinner dance on Saturday night. There is ample time to reconnect with colleagues and make new introductions to potential partners and clients. Many of the networking events at the MFG Meeting are supported by our sponsors: Gardner/MMS, Kennametal, SME, Festo, BIG KAISER Precision Tooling, Inc., Royal Products, alliantgroup LP, GIE Media, Makino, Erowa, and Okuma. Don’t delay! Register today at

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In addition to providing you a deeper dive on your markets, the staff at AMT is expanding the intelligence on your customers as well. Global Services staff in Mexico, Brazil, China and India provided members one-onone consulting on their respective country’s markets for your products and personally obtained information on business opportunities, including introductions to customers in many cases. This is just one of many a la carte services that Global Services provides in-country for members. All of this means that AMT can provide members information on when and where new plants will be built, the investment level, the purpose of investment and who will be making the investment. AMT participates in councils with representatives from companies such as Ford, Joy, Caterpillar, Rockwell International and many additional mid-size and small companies. These efforts help to develop trade policy, create awareness of key business challenges and make policy-setting agencies aware of the needs facing different sectors of manufacturing. These relationships also help create an understanding of these customers’ future manufacturing technology needs, how those customers utilize trade shows and what resources they rely on in making capital equipment decisions. The in-depth market studies and surveys we have conducted for other organizations have increased our contact with the customer base, building a population of individuals we can call on to add depth to our knowledge of customer actions and motivations. Our collaboration with other organizations and custom research has helped AMT staff to develop an extensive set of processes for creating customer and competitor profiles – most at no cost. As we move further into 2017, I encourage you to take advantage of the resources that are available to all members of AMT. If you have any questions about the opportunities or want more details about any of our services, don’t hesitate to call or email Pat McGibbon at 703-827-5255 and at or Kim Brown at 703-827-5223 and at kbrown@

Foreign Trade Report – November 2016 U.S. machine tool exports valued $145.26 million in November, down 22.9 percent from October’s total of $188.35 million. Exports for year-to-date 2016 totaled $1,844.97 million, a decrease of 14.0 percent when compared to the same period for 2015. Monthly machine tool imports valued $387.86 million in November, down 1.3 percent from October’s total of $393.07 million. Imports for year-to-date 2016 totaled $4,340.45 million, a decrease of 1.3 percent when compared to the same period for 2015. Mexico was the leading destination for U.S. machine tool exports in November with $36.90 million, a 31.4 percent decrease from October. The second largest destination for U.S. machine tool exports was China, with $14.70 million, a 39.3 percent decrease from October. Completing the top five destinations for U.S. machine tool exports were Canada ($14.26 million), Germany ($12.69 million) and Taiwan ($3.98 million). Japan ($121.22 million) and Germany ($42.58 million) were the top suppliers of U.S. machine tool imports for November 2016. Compared to October’s figures, Japanese imports decreased by 12.0 percent and German imports decreased by 37.0 percent. Completing the top five sources of U.S. machine tool imports in November were Italy ($32.32 million), Taiwan ($31.34 million) and South Korea ($24.72 million). For more information about any aspect of this report or to make a specific data request, contact Juan Guerra at or 703-827-5278.

Tax code

Cont’d from page 2 U.S. consumers, distribution houses, etc. 5. The market is too competitive for foreign companies to pass the entire tax increase downstream to the distributor or consumer. 6. Changes in exchange rates will help to mitigate the impact as the dollar gets stronger, reducing the cost of imports. AMT is working to develop tools to explain these changes in a dynamic fashion. Transactional

depictions miss the elimination of the import subsidies that the U.S. government created when it did not move to a border adjustable, territorial system when the rest of the world made that move. I’d like to know your thoughts on this proposal. Members from different parts in the supply chain will be impacted differently. How do you see your company being affected? Write me with questions and comments at If you have questions about the legislative process, contact Amber Thomas at athomas@

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February 2017/AMT NEWS ®

Update By Russell Waddell Managing Director, MTConnect Institute @mtconnect

The MTConnect standard is helping enable next-generation manufacturing by allowing communication between different types and brands of devices on the factory floor. Getting started with MTConnect requires little more than a survey of a facility’s capabilities, an assessment of needs, and an evaluation of current and nearfuture vendor solutions available. Machine tool builders and distributors are increasingly fielding customer requests for digital manufacturing applications like factory monitoring, predictive or condition-based maintenance, remote access or control, and more. Some customers specifically request MTConnect. A basic understanding of the standard, its capabilities and limitations, how it works with other technologies, and its development requirements makes for higher customer satisfaction and better sales performance.

Monitoring Factory or machine monitoring is the most common use case

Common use cases for MTConnect for MTConnect today. Machines that support the MTConnect standard enable a wide range of software applications for realtime or historic status reporting. The most basic and most common function is automatically reporting utilization. Utilization is “green light” time, or a measure of machine uptime. More sophisticated applications offer downtime analysis. Using MTConnect data on its own, or using it in combination with operator input, downtime analysis adds a layer of explanation for different categories of downtime. The categories of downtime vary from company to company, but generally include things like scheduled maintenance, unscheduled maintenance, waiting for material, waiting for tooling, etc.

Overall Equipment Effectiveness Most factory monitoring suites also show a calculation for Overall Equipment Effectiveness, or OEE. This is a statistical process control measure that takes into account Availability, Performance, and Quality. MTConnect data from a machine control can provide “Availability” by automatically logging utilization. Performance uses a combi-

nation of data from a control and from Engineering on how fast a process runs vs. how fast it could run. Quality depends on defect data that usually comes from a source other than the machine control.

System control and integration MTConnect is also an enabling technology for machine or system control and integration. Applications for controlling a machine, robot, part loader, or automated system can use MTConnect to simplify communication between components. For example, MTConnect is able to pass information about current states and statuses between machines, reducing the complexity of communication between devices or from devices to a cell controller. This functionality, known as “interfaces” within the standard, has been implemented in a test environment with robots and is commercially available today for some bar feeders. Development is underway on bringing interfaces to other common machine accessories like probes and on-machine gaging.


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Meet Jackie McFarland, AMT Senior Industry Analyst In her role as senior industry analyst for AMT, Jackie McFarland is all about the data. But her passion lies in helping AMT member businesses thrive. With nearly 10 years at AMT (with a couple of years away at Okuma), Jackie uses qualitative and quantitative data analysis to inform members about products, processes and markets that can enhance business productivity gains. “In the past 10 years, we have investigated many questions for our members and have never received the same question twice,” Jackie said. After graduating from Frostburg State University with a double major in economics and international studies, Jackie joined AMT’s Strategic Analytics team, where she put her knowledge of economics, mathematics, and keen attention to detail to work. Five years ago, she relocated to Charlotte, N.C., where she was able to transfer her skills to work for AMT member company Okuma as a market analyst developing sales projections and performance metrics. Within two years, her family returned to the Washington, D.C., metro region.

She then rejoined AMT with greater insight into how members needed and used data analytics to make business decisions. “Jackie was a wonderful analyst before she joined Okuma, but her experience working for a member has provided her with an understanding of members' needs that you can't buy in the D.C. area,” said Pat McGibbon, VP – Strategic Analytics. “I am motivated by the unique needs of every member,” Jackie said. “The variety of members’ questions keeps my job stimulating. I also appreciate that I am not

at my desk all the time. I love that this position requires me to visit members’ facilities, attend conferences, and join in industry events.” Looking ahead, Jackie wants to take the AMT Strategic Analytics team to the next level to be an even better source of information for AMT members. She would like to use and consolidate more data to create apps that will produce actionable items for members. To get there, Jackie is pursuing a master of science degree in predictive analytics. When Jackie isn’t exploring facts and figures, she’s exploring the great outdoors or traveling. On a recent trip to Greece she was thinking of advanced technology as she toured the country’s 2,500-year-old archeology ruins. Awed by their impressive size and beauty, she wondered about the technology employed by the ancient Greeks. For her next trip she’d like to visit Cuba and get a closer look at the impact of having a somewhat closed economy. To find out how Jackie and the Strategic Analytics team can help your business thrive, give her a call at 703-827-5206 or email her at

Kitagawa North-Tech, Inc. has named Kevin Bennett as Vice President of Sales and Marketing. In his new post, he will be spearheading sales and marketing endeavors for North America and involved with the operational aspects associated with how the company brings new workholding products and services to the market, responding to customer needs and enhancing the customer experience. LVD Strippit announces the opening of its Southeast Support Center located in Charlotte, N.C., and its Southwest Support Center in Dallas, Texas. The two new regional facilities are dedicated to improved customer care at the local level. They join the company’s Midwest Support Center opened in 2016 and its Northeast Support Center located at LVD Strippit headquarters in New York.

John B. Hoy II

LVD Strippit announces the opening of its Southeast and Southwest Support Centers. The Southeast Support Center in Charlotte, N.C. (pictured here), celebrated its grand opening February 6-10 with a week-long open house event.

MAPAL welcomes a new VP Sales and Marketing for North America and a VP Business Development for the United States & Canada. As the new Vice President of Sales & Marketing for North America, John B. Hoy II will be responsible for sales, team leadership, strategic initiatives, driving revenue, as well as general management responsibilities.

MAPAL has promoted Deryl Carter to Vice President of Business Development for the United States & Canada. He will be responsible for sales, market development, channel management, strategic initiatives and general management responsibilities targeting customer accounts outside of the automotive Big 3.

Deryl Carter Master Chemical Corporation is pleased to announce that Michael A. McHenry has joined the company as Chief Executive Officer. McHenry will provide leadership, technical expertise and strategic direction for Master Chemical implementing both short- and long-range programs that support organizational objectives, leveraging Master Chemical’s existing strengths in the specialty lubricants and Michael A. McHenry metalworking industry.

Master Chemical also announces that David A. Barned has been appointed Global Vice President – Operations & Supply Chain, and General Manager for USA. In his new role, he will provide leadership, focus, and strategic direction for the company’s global Operations & Supply Chain teams and will work to better connect Master Chemical’s complete Supply Chain from raw material supplier to end-user.

Industry News

David A. Barned

See Page 6

Page 6

AMT NEWS/February 2017

Industry News

Cont’d from Page 5

Mastercam is proud to sponsor the 2017 FIRST Robotics Competition ( by granting use of the Mastercam Educational Suite for the duration of the competition to teams in need of CAM software. The FIRST (For Inspiration & Recognition of Science & Technology) Robotics Competition is held yearly. High schoolaged teams the world over compete head to head on a special playing field with robots they have designed, built, and programmed. Okuma America Corporation has named Koma Precision as Partner of the Year. Koma Precision received the highest number of votes among all 50 members of Partners in THINC in the annual partner effectiveness survey to earn the distinguished title. Okuma distributors from North and South America participated in the survey rating Koma Precision on service responsiveness, sales support, perceived value of products/services and recommendations. Third Wave Systems has received the prestigious Tibbetts Award from Barry Agosti (left), President, the Small Business Administration recognizing the company's successes Koma Precision Inc. with Jeff Estes of Okuma. implementing manufacturing technologies via the SBIR program. Third Wave Systems develops and sells materials-based modeling software and services that dramatically reduce costs of machined components, accelerate design cycles and improve part quality. The software products are used by the top aerospace, automotive, medical and cutting tool companies. QVI® (Quality Vision International) has announced a Kerry Marusich (Left) Third Wave Sysseries of key appointments in tems President and Mark Walsh, SBA its Manufacturing, Operations Associate Administrator and Service organizations: • Randy Weaver, CIO, assumes the additional position of Director of the company’s Electronics Manufacturing group, which produces proprietary electronic and embedded control systems used in QVI metrology products. • Wade Cook, PhD, Vice President of Optics Manufacturing, assumes additional responsibilities as leader of the company’s Research & Development team. • William (Bill) Stickles is promoted to the position of Director of Production with responsibility for all standard product assembly operations at the QVI Hudson Avenue campus. • Bob Scheidt assumes the position of President of Quality Vision Services, the technical support, calibration and field service arm of QVI. • Keith Polidor, Vice President, is promoted to the position of Senior V.P. and Chief Operating Officer, with responsibility for the company’s worldwide Supply Chain, Manufacturing and Quality functions. We want to hear from you! What’s happening at your company? When you send out a press release (or just have some interesting news), please email information to To add your news to AMTonline, go to

For upcoming ANSI B11 and ISO machinery safety meetings, go to Contact Dave Felinski, B11 Standards, Inc., at for updated information.

Tech Time…

Graphically display causes with the Ishikawa diagram By Benjamin Moses AMT Technical Director

Known alternately as the fishbone, fish skeleton, herringbone, cause and effect, and 5M, the Ishikawa diagram is a dispersion analysis that graphically displays causes to a problem/effect. This tool has been used since it became popular in the 1960s. Similar to other problem-solving tools, the Ishikawa diagram will only aid in the management and structure of getting to the resolution. The process of creating and maintaining this tool is straightforward. The fishbone diagram begins with the problem statement (effect) at the head. This is not the easiest item to determine. The tools to create a problem statement are 5 Whys and observational analyses. The spines of the fishbone diagram (causes) are then defined. This is based on the application. Most manufacturing problems are grouped into the following categories: Man (people), Method (process), Machine (equipment), Measurement, and Material. Environment may be a factor in some processes such as welding or precision manufacturing. Details of each cause are added. Brainstorming, then categorizing, aids in the process. The next step is to further understand what can be controlled. Noise is defined as a variable that

can’t be controlled. Control is a variable that can be changed on demand. The starting point for further investigation is labeling each cause as control or noise. Causes can be investigated for in or out specification during the manufacturing process, or tested on sample pieces and completed by single elimination or a design of an experiment if there is a risk of interactions. Observational analysis will help document the testing and once the major contributors are found, they can be changed and controlled in the future. This tool has several pros and cons:

Pros • Visual • Builds consensus • Robust • Repeatable • Tracks progress

• Can be used in a variety of scenarios • Resolution of causes scales with complexity

Cons • Requires time • May require more than one person • May require further investigation This tool can be used in a variety of settings and scenarios. These include sales and marketing, business organization, design engineering, and personal development. There are a variety of aids for this tool: • Juran’s Quality Handbook, page 551 • LucidChart Template: http:// • Mindjet MindManager has an embedded template

International Report…

How Brazil is handling crisis and what to expect in 2017

Lately, Brazil has public expenditures to the been one of the most past year’s budget (after targeted discussion topics inflation). This is natuin the concerns of rally a very complex and business and the econunpopular measure, and omy. It is a fact that the the effects are only country has gone through expected in the long term. difficult times over the The good news is that this last three years, whether measure has been Achilles Arbex due to corruption issues progressing and has General Manager or a downturn in several already made a positive São Paulo Technology & market segments. Now impact on business and Service Center there is an invitation to the economy, contradictfurther understand what measures ing most skeptical economists and were taken by agencies and critics. government to change the course of It is true that the proposal for the political and economic scenarlimiting public expenditures ios, combined with a quick update sounds too simple given the on what is being done to improve dimensions of the problem caused three different fronts: fiscal by years of running out of control. adjustment, investment in infraWhat has often gone unreported is that this proposal is valid for 20 structure and international trade. years, which means a long-term Front 1: Fiscal adjustment commitment from government to An official measure has been getting things settled in Brazil, taken to address the issue associwhich will positively contribute ated with public debt: tightening (even in low doses) to the turn-

around of Brazil’s economy.

Front 2: Investments in infrastructure The second front concerns investment in infrastructure and its role in the turnaround of the economy. There is no other measure with such power of change as infrastructure. Consumption is depressed by the downturn in income combined with growth in public debt and unemployment; public expenditures are limited to the fiscal adjustment mentioned at Front 1. All these factors have pushed government toward opening infrastructure business through concessions to private companies, which directly increases consumption for things like heavy machinery, trucks and other equipment. Companies in this sector are faced with making investments in new equipment to supply this


See Page 7

Page 7

February 2017/AMT NEWS


Cont’d from page 5 Future application areas Future application areas for MTConnect data include process optimization and, eventually, fully autonomous operation. Applying machine learning and algorithms to manufacturing processes holds promise for the near future, but most applications are still in the R&D phase. One particularly promising application area is predictive or condition-based maintenance. Most equipment undergoes preventative maintenance on a predetermined schedule. By applying machine learning algorithms (which work similarly to recommendation algorithms for Netflix or Google’s targeted ads), requests for maintenance can be triggered based on actual conditions rather than a pre-ordained schedule. This will save time and money by avoiding unnecessary maintenance and premature breakdowns prior to a scheduled maintenance interval. Finally, MTConnect data has


Cont’d from page 6 demand, concurrently pushing an increase in international trade (especially imports, as Brazilian companies aren´t able to fully meet technology demands). The manufacturing sector will for sure benefit from this effect. Besides stimulating consumption of value-added products, infrastructure investment has also been promoting increased competitiveness among the industrial base, reducing the so-called “Custo Brasil” and diminishing bottlenecks in power supply, logistics and manufacturing. As they envision a plan for economic growth, the Brazilian government has also put together incentive packages for private companies to invest, grow and expand, which supports economic turnaround.

Front 3: External sector While forecasts published two

been experimentally used for optimization, tuning, and real-time feedback. Fine tuning a manufacturing process on the fly requires input from sources including a machine or control, sensors, tooling, etc. For example, a vibration sensor may be able to detect damaging harmonics in a metal cutting process and automatically adjust or pulse cutting speeds to overcome the harmonic resonance. MTConnect-enabled devices have more data available as inputs to real-time optimization software and control systems. Real-world, commercial applications are just starting to see the light of day but are expected to proliferate rapidly in the next 5 to 10 years. As a data standard, application areas for MTConnect are primarily limited by customer needs and vendor implementations. Making data available in a non-proprietary, open format is simply a pre-requisite for next-generation manufacturing solutions. The most exciting applications of MTConnect aren’t the ones that have already been invented, but those that have yet to even be imagined. years ago indicated that external factors like Brexit and terrorism would cause market uncertainty, central banks adopted expansionist attitudes. Monetary expansion, low or negative interest rates all over the world and the existence of inexpensive assets in Brazil due to the down economy have opened a window of opportunity for new investments. To make a long story short: Brazil is on the right track, showing clear indications of growth. Many manufacturing sectors have already indicated increases in production over the last three to four months, as the positive environment is contributing to a business-oriented mindset. Expectations are quite high and all sectors are looking forward to recording positive results in 2017! For more information, please don´t hesitate to contact Achilles Arbex, General Manager for AMT Brazil São Paulo Technology Center (

To register for the run, select the M4M option when registering for the MFG Meeting, To be a sponsor for the M4M, contact Bill Herman at 703-827-5282 or Follow Miles for Manufacturing on Facebook:

Global Services

The results are in: The India Trade Mission was a winner

We have written in ence the culture, food, people, and plant tours showed their this column before about the business landscape to undermanagement philosohow AMT trade missions stand potential opportunities. The phies in practice. At the are an inexpensive and industrial visits gave me a sense of on-site wrap-up effective way to learn the current developmental state of meetings, they asked us firsthand about a for recommendations for the end-user’s quest for increased country’s culture and productivity and quality.” improvement. The business practices, to Gene Welti of Mastercam companies we visited are meet high-level executives shared, “It is a big advantage to looking for partners and at local companies that physically visit the local companies we walked away with Ed Christopher would normally be out of to see how they have their shops set personal contacts for the V.P. - Global Services your reach, and to gain future,” commented Fred up, be exposed to the working valuable business intelligence about Mason, Quality Vision International. conditions, and learn from highthe level of technology and prolevel executives what challenges Tying the trade mission into cesses used in order to develop a they are facing. It is very eye the AMT/USA Pavilion at the sales strategy. opening.” IMTEX show had certain advanIndia has a $1.7 billion annual “I would highly recommend tages, said Dave Moskey of Mastermachine tool appetite with 60 other AMT members who want to cam. “One of the large companies percent of it being imported. GDP increase their footprint in foreign that we visited on the trade mission growth in 2016 was 7.2 percent and countries to participate in future just stopped by our booth for a they are expecting the same for 2017. demo. We’re very, very happy we trade missions,” said Monte Dhatt of The country is experiencing Master Chemical. participated.” particularly strong growth in the In addition to trade missions, An AMT trade mission makes aerospace, automotive, and power AMT Tech Centers in India, China, for great preliminary reconnaisgeneration sectors. Given all of this, Mexico, Brazil, and Eastern Europe sance for a country you are considit seemed judicious for Arun offer a wealth of products and ering in your growth strategy. Kim Mahajan and his team at the services to assist you in gaining a Chia of Balance Technology noted Chennai Tech Centre to organize a foreign foothold. Let AMT’s global that “my objective for joining the trade mission in conjunction with reach give you a local presence. trade mission was to be at the IMTEX 2017, India’s premiere ground level to personally experimachine tool show. Additionally, AMT also hosted a pavilion at IMTEX for exhibiting members. The week prior to the show, participants from seven AMT member companies took part in the trade mission, visiting 10 large manufacturers in Pune and Bangalore. Well-known names like GE, Mahindra, Cummins, Toyota, and Dana-Spicer were among those on the agenda. Everyone walked away with new high-level contacts, local insight, and optimism about their strategies for India moving forward. Hats off to the Chennai Tech Centre team! The trade mission participants had a lot to say reflecting on their time on the road: “An AMT trade mission is a great way to get face to face with senior executives looking for ways to Participants from seven AMT member companies took part in the trade mission, visiting 10 large manufacturers in Pune and Bangalore. improve their productivity. The

Hit the starting line at the next M4M 5K Get active while supporting a good cause at the Miles 4 Manufacturing 5K race, once again coming to the MFG Meeting. Proceeds from the event are donated to programs benefiting the development of the future manufacturing workforce. Scheduled for March 23, at 6:15 a.m., this exciting early morning event will take a scenic route through the Omni Amelia Island Plantation Resort. Funds raised will go to purchase a MakerGear 3D printer

for Imperial Estates Elementary School, a Brevard County public school on Florida’s Space Coast in Titusville, Fla. The 3D printer will be used to enhance the STEM and Makerspace program in the school’s media center. Students and teachers in the Imperial Estates STEM program enjoy the support of industry mentors from NASA, RUAG Space, OneWeb, Kamm Consulting Group and other local aerospace companies. Since its debut at IMTS 2014,

the M4M 5K has been run at meetings around the country and has raised more than $45,000 to assist middle school, high school and technical college programs that promote careers in manufacturing. IMTS covers all of the costs associated with staging and promoting M4M, so 100 percent of all sponsor revenue and every dollar of runner registration fees go directly to the schools. Your support, whether as a sponsor, runner or a contributing spectator, directly benefits the students!

Page 8

AMT NEWS/February 2017

By Willie Eichele President The Motch & Eichele Company, LLC

As a small distributor I had little clue what I was signing up for back in 2014 when I registered for my first MFG Meeting. I’m not going to lie, you start adding up the cost of flights, hotels, registration and time away from the grind and on the surface it could appear darn near impossible to justify. I couldn’t have been more wrong! For the benefit of someone that hasn’t attended or someone that is considering attending in March 2017 but is looking for justification, let me share the method to my madness to help you decide if it’s worth it for your company. I like to break down these events into three categories when determining value: Speaker relevancy, networking opportunities and opportunities to strengthen existing relationships. Speaker Relevancy: AMT spends a tremendous amount of time and money selecting speakers that are either relevant to our day-to-day operational challenges or enlightening with industry trend and technology information. In both cases topics are covered that make you continue to evaluate how you do things and if it's indeed the best and most efficient way. Whether it's implementing new sales incentive strategies or pursuing a new upcoming technology, we have benefited firsthand from what we learned from MFG Meeting speakers. Networking: I don’t know where to start on this one because

The MFG Meeting: Why you have to be there the opportunities for real networking are endless. Of course, there are many different types of opportunities, ones that can affect immediate business, ones where seeds are planted for future opportunities and ones that provide the opportunity and environment to resolve open issues. I can honestly say all of the above have been a reality from attending. Existing Relationships: Based on event venues, where could you possibly find a better place to relax and spend time with your current business colleagues? We all know how tough it is to get to know the people we work with every day while in the heat of the battle. It may be hard to associate a true value to this one but I think we can all agree it’s time well spent. So, with MFG 2017 right around the corner on March 22-25 in Amelia Island, Fla., it’s time to decide how attending can help your business. With speakers covering the future of manufacturing, competitive technologies, additive manufacturing and the state of the ever-so-important oil industry, I’d say there’s never been a better time to consider jumping on board. That’s before John Walker gives his economic outlook and the endless opportunities for networking with your industry peers. Hope to see you in Florida! Register for the MFG Meeting at


Register Today

Passengers – Art becomes life During my holiday Hollywood does have to justify spacecraft that is downtime, one of my the price of admission. showing all the signs favorite things to do is I hope that the story behind of trouble, without catch the latest Hollyspecifically leading the the story in this film is not lost on wood box office hits characters to the exact the American public. Any sense of with my wife and “kids.” source of the problem. apprehension about the potential I say “kids” because for automation, AI, AR, etc., to The limits of AI still they are both adults take jobs away from people in the abound in the future with careers of their near term or the very long term (in the context of this own now, but more on can be eased by watching films film; how else could Greg Jones that later. like this and the message they V.P. - Smartforce Development Hollywood justify the One of the movies convey that in the future, we will price you’ve paid for that we went to see, Passengers in continue to need skilled labor in your movie ticket?), but we’re 3D, was a favorite of ours this the form of mechanics, welders, working on AI in real life in the holiday season. Not only because machinists, technicians, engipresent day in many forms with our family loves neers, etc. human machine sci-fi and space Go see Passengers (or, by the interaction, In the future, we will continue to themed movies, but need skilled labor in the form of time you read this, check it out on collaborative the film included a mechanics, welders, machinists, DVD or Netflix) and let me know robotics, etc., and terrific story line, what you think: gjones@AMTonthat future looks technicians, engineers, etc. cinematography bright and exciting. and acting, and had Footnote: the movie poster Spoiler alert: I an emphasis on skilled, knowlfor Passengers includes a graphic was a bit disappointed with the edgeable workers and the for 3 dots, 3 dashes, 3 dots, Morse directors because none of the technology that will be available code for S.O.S. We’re not at that “fixes” in the film involved 3D to those workers in the future. critical point in printing anyIf you haven’t seen the movie U.S. manufacthing. But I yet, please read on. I promise I’ve turing workdigress. done my best to not give away the force developIn a discusplot. ment yet, but we sion with my wife The key protagonist, played still need more and kids after the by Chris Pratt, is a “mechanic” young people movie, my son who, by traveling in a state of seeking an (an IT network hibernation, is taking a 100+ year education in engineer) and journey to a new Earth colony. STEM and careers in daughter (a technical software He's traveling to a planet called manufacturing. specialist) quickly came to the Homestead II because his skills conclusion that all of the probFor more frequent updates about are valued there, and because the lems could have been solved much Smartforce Development, follow me Earth has become too overpopumore rapidly if they’d just used lated. In fact, even though the on Twitter @GregoryAJones. more engineers, but again, company that is providing colonization services has classes Manufacturers have confidence that when they are working of travel for their passengers — with a Certified Manufacturing Technology Sales Engineer think platinum, gold and silver for (CMTSE), they are working with sales professionals who are you frequent flyers — the skilled the most knowledgeable and experienced in the industry laborers are entitled to a discount and who can have a positive impact on their bottom line. on their travel because they are so highly prized and well regarded. Now, more than ever, qualified industry sales professionals This is a Hollywood movie should take this opportunity to become a CMTSE. after all, so suffice it to say that For more information and to register today, visit something went wrong and the Pratt character had to put his mechanical skills into action. And this is what really got my attention. In my role in Smartforce Development, I am also staff liaison to the AMT Global Service Committee. One initiative that we’re working on is investigating the potential for augmented reality in education and training for field service technicians and in providing real-time documentation at the point of install/ maintenance/repair. It was interesting to see Hollywood’s futuristic version of AR in the movie. Along the way, the movie’s characters engage with artificial intelligence in the form of an Android, of course, and with a

AMT News – February 2017  

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