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Italian
Innovation A Manufacturing Renaissance
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FALL 2004
OPENING LETTER
Why reinvent
the wheel? Turning innovation into productivity
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hat you hold in your hands is a special publication, brought to you by the Italian Trade Commission in conjunction with the editors of The Manufacturer, which
explores the creativity, flexibility, and innovation of machine manufacturing in Italy. With famous names such as Ferrari and Lamborghini in the auto industry, and Prada and Dolce & Gabbana in the fashion world, Italian brands have long been associated with design and innovation. But did you know that Italy is also the second largest exporter of pharmaceutical packaging equipment to the United States, or that annually its plastics Paola Bellusci,
machinery exports are in excess of $152 million to this country?
Trade Commissioner The following pages are filled with the latest news and insightful features that detail the doings of more than 14 industrial machinery manufacturing sectors and 10,000 companies that encompass Machines Italia: agricultural/farm machinery; ceramics;
Italian Trade Commission
earthmoving machinery; food technology; footwear, leathergoods and tanning; foundry
Government Agency
and metallurgical machinery; glass; marble and stone; metalworking; packaging;
Address: 401 N. Michigan Avenue Suite 3030 Chicago, Illinois 60611-4257
plastics and rubber; printing, graphic and converting; textile machinery; and wood.
The cover story on page 12 first digs into the rich history of Italian innovations. For centuries, Italian innovators like Da Vinci, Galileo and Marconi have dramatically
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changed the world in which we live. The tradition of creative excellence they embody
Telephone: (312) 670-4360 (outside the U.S. and Canada)
McCallion delves into how some Italian companies are bringing better visibility to
lives on through today’s Italian manufacturers. Jolyon Helterman looks at what is happening today. In our special feature on global supply chain on page 18, Ruari
operations. Rich Weissman goes into the latest techniques of lean manufacturing, and how some Italian companies are profiting as a result, on page 23.
Fax: (312) 264-6209
There is much happening in the world of Italian machines. Read on for some of the
E-Mail: info@italtradeusa.com
highlights. We hope you enjoy it.
Web Site: www.machinesitalia.org
Sincerely,
Paola Bellusci Trade Commissioner—Chicago
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Table of
contents 4
Machines Italia News Newsbriefs from a selection of our 10,000 partner companies
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Through Italian innovation America becomes more competitive Many American companies seeking competitive advantage have tried to reduce costs by outsourcing or off-shoring their manufacturing
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Best Practices Best-practice business guides from Machines Italia can help your company achieve excellence
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Italian Innovation If necessity is the mother of invention, Italian is its native tongue. The list of inventions that began life on Italian soil is long and wholly astounding
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Global Vision Visibility across the global supply chain isn’t an option—it’s essential in today’s business world
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Lean Manufacturing Offers Global Appeal The benefits of lean manufacturing are truly international—how manufacturing companies from Italy are contributing
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Trade Shows in Italy Upcoming exhibitions in Italy sponsored by our partner associations
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30
Industry Summary A brief look at Machines Italia’s 14 partner associations and industries
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MACHINES ITALIA NEWS
Machines Italia
news
News Briefs Concetti (www.concettigroup.it) is a packaging machinery company that created a faster machine to form and fill plastic bags. Concetti’s Continua 1800 is the latest in form-fill-seal packaging machinery, the newest in a series of machines that have been popular with major U.S. companies. The Continua processes 10 to 50 kg bags at a rate of 1,800 bags an hour—one of the fastest on the market. Change-over times have been reduced to two minutes or less, allowing for increased production capabilities. Italian machinery manufacturers offer big innovations in the aerospace industry. Italian machinery manufacturers solved the problems that grounded the military use of tiltrotor aircraft and are now moving these vehicles to civilian markets. Italian companies created the latest Mars orbiter and rover, which was launched June 2003. Italy’s latest helicopter designs are being used by some of the leading search and rescue missions.
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Salvagnini finds new opportunities in niche markets and new industrial sectors Salvagnini Italia S.p.A. (www.salvagnini.com)
is
a perfect example of a traditional Italian machinery manufacturer which actively seeks new opportunities in a mature market. Founded approximately 40 years ago, Salvagnini is now one of the largest manufacturers in Italy’s machine tools industry. From its early days, Salvagnini, which now manufactures laser-
high-end home furnishings made from steel formed
cutting, punching and bending machinery, focused on
and fabricated by Salvagnini machinery. In April
metal-forming machinery for the air conditioning
2003, the furniture—with new state-of-the-art
industry. However, as that market matured and demand
designs—was unveiled at a Milan furniture show.
decreased, Salvagnini’s management and engineers
Through this initiative, Salvagnini was introduced to
searched for new applications and new markets.
an entirely new audience of potential customers for its
Salvagnini found its new opportunities in both
machinery.
Additionally,
Salvagnini
gave
its
niche markets and entirely new industrial sectors. In the
traditional customers a vision of new applications and
past, Salvagnini machinery had been used in the
uses for their machinery.
production of office furniture, but when demand
Salvagnini continues to explore new business
dropped, Salvagnini naturally shifted its focus to other
opportunities outside of traditional sectors. It realizes
arenas. Although there was still little demand for
that
machinery
the
advent
of
new
materials—strong,
furniture,
lightweight metals with high resistance—will
Salvagnini’s management realized that office furniture
dramatically reshape the automotive industry and
was just one aspect of the entire furniture sector. Working
potentially create new applications for its machinery.
with top Italian interior designers, Salvagnini
In preparation for this, Salvagnini engineers are
partnered with three Italian designers and a design
working closely with large foundries and with
school and launched its “Steel and Style” project, creating
universities in Italy and abroad.
used
to
produce
office
SACMI’s focus on added value leads to innovation
Advanced Wood Products Laboratory offers targeted classes
SACMI Imola (www.sacmi.com) is
equipment that not only benefits its
another Italian company discovering that
traditional customers, but also may allow
Duluth,
meeting market needs often leads to new
SACMI to enter new markets. One of
(www.scmgroup-usa.com),
applications in less-traditional industrial
these machines, introduced in February
manufacturing
GA-based
SCM
woodworking
Group a
USA
leader
in
machinery
and
sectors. Founded in 1919, SACMI is
2003, is an infrared device that can
subsidiary of Rimini, Italy-based SCM Group is
comprised of three main divisions:
measure the level and “taste” of the fluid
dedicated to ongoing training which led to its
injection-filled machinery, ceramics and
in fruits (such as apples, melons, pears or
collaboration with Georgia Tech (College of
beverages/packaging. Although SACMI
oranges) before they are packaged.
Architecture) and the State of Georgia to establish
is well known for its ability to build the
Another machine being developed by
the Advanced Wood Products Laboratory (AWPL) at
entire line of closure machines—from the
SACMI will function as an “electronic
Georgia Tech. Manufacturers from across the
creation of the closure to the packaging of
nose” that can “smell” coffee beans to
country participate in introductory and advanced
the final product—it faces strong
detect their level of bitterness. These
CNC programming, machine-side training and
competition from other manufacturers
technologies will introduce SACMI
targeted managerial training workshops. Since its
across the globe.
customers to the latest in quality and
inception in 2000, through an equipment loan
Because of this competition, SACMI
freshness control measures and SACMI’s
agreement, SCM placed 16 SCM Machine Centers
continually looks for new ways to add
R&D department is currently exploring
at Georgia Tech.
value for its customers and this focus has
applications for both of these devices in
led to the development of innovative new
the medical field.
ATOM S.p.A. shows flexibility by adding new markets ATOM S.p.A. (www.atom.it) originated as a manufacturer of cutting machinery for the footwear industry. However, a changing marketplace led ATOM to expand into new markets. ATOM now develops cutting machinery for footwear; insulating materials; foam packaging and carpets. They also developed a water-cutting machine used by a luxury car manufacturer for leather interiors.
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MACHINES ITALIA NEWS
Cannon finds new applications for existing product line
Nordmeccanica machine doubles Lawson’s production capabilities Nordmeccanica S.p.A. (www.nordmeccanica.com), a packaging company, has created a new solventless packaging machine. Lawson Mardon USA Inc., an Alcan Packaging Company, purchased Nordmeccanica’s Duplex Compact SL off-line solventless laminating machine because Lawson needed to deliver flatter, clearer packaged products to one of its biggest customers. The Nordmeccanica machine doubled Lawson’s production capabilities, reduced waste, and saved energy.
S.p.A
has moved from being solely a
family-owned
manufacturer of polyurethane foam
manufacturing
machinery into the plastics industry,
Advanced Italian glass cutting machinery gains popularity
polyurethane foam machinery. Since
having
gas-injection
Low-E (low emissivity) glass became popular for its energy
then, Cannon has diversified and
application used to make plastic parts
efficiency, but due to its complexity, traditional glass-cutting
grown into a multinational company
for refrigerators. But as is often the case
machinery could not cut low-e glass without destroying the
(their
near
in a mature market, companies like
invisible coating on the glass’s surface. Lovati Fratelli
Pittsburgh, PA, became a manu-
Cannon sometimes find that a fresh
S.r.l. (www.lovatifratelli.com) and Bottero S.p.A.
facturing facility in 1980) with sales
take or a new application for an older
(www.bottero.com) introduced machinery that can cut this
reaching
product line can increase sales.
glass. Popular in Europe, this glass is being used in more
Forty years ago, Cannon (www.cannon.it), company,
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a
started
U.S.
office
$340
located
million
in
2002.
patented
a
Cannon attributes much of its success
While plastics remains Cannon’s
to its strong commitment to research
main focus overseas, U.S. markets have
and development, not just the R&D
driven the creation of new applications
W. Virginia plant creates jobs
behind machinery, but of new markets.
for its polyurethane foam machinery.
In November, 2002, Sogefi S.p.A. (www.sogefi.it),
As a global company, Cannon
Working with a major U.S. customer,
an Italian automotive parts manufacturer, invested
realized that its success would hinge on
Cannon has developed an innovative
$27 million to build a new facility in West Virginia,
bringing the right products to the right
method to insulate pipes with poly-
creating nearly 150 new jobs. As West Virginia
markets at the right time. This led
urethane foam. This new application
Governor Bob Wise said, “Automotive manufacturing
Cannon to produce machinery for
will allow Cannon’s U.S. customers to
facilities, such as Sogefi, have strong economic
several industrial sectors—such as
develop home-cooling systems to reduce
impact potential to the state by creating quality jobs
refrigeration, automotive, furniture,
temperatures without the use and
at their own facilities as well as creating spin-off
construction and packaging. Cannon
expense of air-conditioning.
employment and payroll at supplying companies.”
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homes and businesses along America’s coasts.
Santoni—changing American fashion Santoni S.p.A. (www.santoni.com)
fashion landscape to promote
materials and glass fibers; laser
developed
electric,
new designs. Italian textile machin-
finishing treatments for ready-made
circular knitting machine, giving
the
first
ery manufacturers, like Santoni,
garments; hi-tech, continuous dye-
birth to the “seamless” technology
are now introducing innovative
ing lines for denim wraps; fully
in which entire articles of clothing
machinery, including: multi-purpose
automated hank-dyeing lines; and
are knit from a single yarn. This
weaving
equipment for the finishing of
technology changed the American
processing the most valuable natural
machines
suited
for
industrial textiles.
News Briefs Italian manufacturers capitalized on a major U.S. manufacturer’s aggressive push into the wind-power market by designing and building larger generators that offered more efficiency and higher tolerances than those produced by other countries. As a result, the company has relied almost exclusively on Italian generators since the late 1980s. Italian farm equipment manufacturers broke into the tight U.S. tractor market by focusing their efforts on smaller, 20- to 40-horsepower tractors, ideal for the two fastest growing farming segments—hobby farmers and specialty crop producers who sell to local markets.
Tria turns scrap into return on investment Established in 1955, Italian manufacturer Tria
such as an injection-molding plants, to increase
S.p.A. (www.tria.it) built its entire business around
efficiency and reduce product waste. According to
a niche market—the design and manufacture of
Tria’s Managing Director Luciano Anceschi, 40
machinery for the in- and off-line recovery of plastic
percent of plastic scraps can be recycled and reused,
scraps. Basically, Tria machinery gathers and
turning what was once waste into an excellent
collects the scraps produced by other machinery,
return on investment.
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INDUSTRY ANALYSIS
Through Italian
America becomes grown so quickly in some markets that the 10-to-1 Many American companies seeking competitive cost advantage has been halved in just a few years. advantage have tried to reduce costs by outsourcing or off-shoring their manufacturing. For all these reasons, a growing number of U.S. But the practice has come under fire recently—both from politicians seeking popular companies are seeking domestic alternatives to support in an election year and die-hard outsourcing or off-shoring. And there are many supporters of American business, Donald A. opportunities available. Why? Because the U.S. has done little to embrace Goodwin reports efficiency-producing workplace automation. The U.S. hy? Because the outsourcing or off-shoring
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has, for example, a fraction of the manufacturing
trend does not always deliver on promised
robots used in either Europe or Japan—where
cost-savings—and because it brings significant risks.
companies have been forced to increase efficiency
Consider for a moment:
because of a consistent decrease in population.
•
Hidden costs. While labor savings can be
The Automation Option
considerable, they must be weighed against the
A critical part of any lean manufacturing strategy is
real cost of doing business half a world away. A
picking the optimum combination of labor, capital and
recent Wall Street Journal article quotes an official
materials for a particular product. Often overlooked in
with TransOceanic Shipping Co., a major U.S.
the mix is more intensive use of capital machinery and
logistics firm, as saying, “For some companies, the
automation. American businesses tend to rely more
transportation cost...is so expensive that their
heavily on labor in the production mix than do other
business is no longer commercially viable.” Other
countries. This explains why U.S. companies embrace
companies
the replacement of high-cost U.S. labor with low-cost
have
found
that
international
productivity rates are so low they dramatically reduce the cost advantage. •
•
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labor from Asia. Higher levels of automation are necessary in
Lack of legal protections. The laws in most low-
developed countries to maintain the “manufacturing
cost countries do not protect intellectual property
multiplier” that generates value for the economy and
rights. This means Asian suppliers can “borrow”
to drive innovation. Europe and Japan have
proprietary manufacturing processes and use them
embraced automation, recognizing that it is
to compete against the American companies that
necessary to remain competitive. Just one look at
provided them in the first place.
U.N. statistics should be enough. The U.S. has a
Changing market dynamics. Cost advantages can
population of manufacturing robots that is less than
erode dramatically. The demand for labor has
one-third the size of either Europe’s or Japan’s.
innovation
more competitive Boeing’s Delta IV relied on technology from Pietro Carnaghi. Image courtesy of Boeing.
each
available for better productivity is the precision
purchase two to three times more automation
vertical turning, milling and grinding centers
equipment per year than their U.S. counterparts.
available
Italian textile machinery manufacturers such as
(www.pietrocarnaghi.com) of Italy for the production
Santoni S.p.A. (www.santoni.com), for example,
of turbine blades. This multiple function unit can
are now introducing automation machinery such as
produce new blades to exacting tolerances and also
multipurpose
for
bring old blades back into tolerance. These machines
processing valuable natural materials and glass
are used by the leading turbine engine manufacturers
fibers, laser finishing treatments for ready-made
and subcontractors throughout the world.
European
and
Japanese
weaving
manufacturers
machines
suited
garments, high-tech continuous dyeing lines for
Another
from
Pietro
Italian
Carnaghi
producer,
JOBS
S.p.A.
S.p.A.
denim wraps and fully-automated hank-dyeing lines.
(www.jobs.it), produces high-speed, high-power milling
One way for U.S. companies to catch up is to
centers for the aerospace industry. It has the ability to
consider new sources for machine tools from these
manufacture complex large-scale precision airframe
countries that depend heavily on automation. These
structural components. This allows airframe builders to
sources can provide state-of-the-art capabilities and
reduce part counts, weight and assembly time.
experience to help U.S. companies move to the next
positioned to help U.S. companies compete more
levels of automation and productivity. The aerospace industry is a hotly contested market with only a few global airframe builders and a few engine builders remaining.
These suppliers and other Italian companies are
Acquiring the
most productive machinery available is crucial for their continued survival. One example of machines
effectively in the global economy. Donald A. Goodwin is President of Technomic International, (www.technomics.com)a business intelligence and consulting firm with over three decades of domestic and international experience which has worked for leading companies in a wide variety of manufacturing industries.
www.machinesitalia.org
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Best
practices Machines Italia, a joint initiative between the Italian Trade
“BENCHMARKING: AN EXECUTIVE PRIMER TO
Commission and 14 leading Italian machinery manufacturers’
LOCATING AND LEVERAGING MANUFACTURING
associations, is proud to make available to this publication’s readers
BEST PRACTICES”
a complimentary series of four best-practices business guides.
Envy may be one of the seven deadly sins, but its presence is vital
The guides written by industry experts John R. Brandt and
when it comes to operations performance. Every executive wants
George Taninecz, both of the Manufacturing Performance Institute,
his or her company or plant to be at least as good as those of his or
outline the step-by-step actions and policies that plant managers,
her peers; most, in fact, want them to be better-or even the best.
purchasing executives, and senior management must implement to
Unfortunately, it takes more than simple desire to be the best.
avoid the common pitfalls which can impede a company’s growth and
Outperforming competitors requires an intense study of those
success in today’s dynamic marketplace.
competitors-of their financial results, of their operating metrics, of their management strategies and practices-as well as a willingness to invest
“SMART CAPITAL: THE SHARP MANUFACTURER’S
time, energy, and resources into adapting the results of that study to a
GUIDE TO EQUIPMENT PURCHASES”
new operations environment.
More than $143 billion was spent on capital expenditures by U.S.
In short, every great performance, every continuous-improvement
manufacturers in 2001, representing about $400,000 per
project, begins with a benchmark. Leading manufacturing facilities
manufacturing facility or $2.8 million per purchasing executive
annually save on average more than $8,000 per employee through
(purchasing agents and purchasing managers). Yet many of those
continuous-improvement projects and programs, and benchmarking is
investment decisions were made by purchasing departments with
a core component of that success. And while no two organizations
little or no input from operations executives. Equally disturbing is that
benchmark in the same fashion, there are four fundamental phases that
a significant number of these purchases came directly from the plant
manufacturing organizations must address in order to get the most out
floor, without any real involvement of either local or corporate
of a benchmarking effort.
purchasing departments. Purchasing capital equipment without the active participation of
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“POWERFUL PERFORMANCE MEASURES:
operations personnel inevitably leads to decisions based only on price
AN EXECUTIVE PRIMER TO PERFORMANCE
- often with disastrous consequences. On the other hand, investing in
MEASURES THAT DRIVE IMPROVEMENT”
capital equipment without the expertise of a corporate purchasing
Every organization has its favorite metrics measurements that gauge
department often results in organization-wide inefficiencies including
control, progress, and success. At a world-class organization, these
overpayment, missed economies of scale, and lack of integration
measures serve as a common “performance language” that links
between facilities and business units.
corporate strategy, divisional goals, plant targets, departmental
Smart manufacturers avoid such pitfalls by assembling a
budgets, and individual incentives into a unified, results-oriented
capital-purchase team that combines the broad skills of
system. But at a mediocre or failing organization, these measures
purchasing and manufacturing, as well as the strategic input of
usually turn into management babble and confusion reams of records
senior executives.
and disjointed findings tracked simply because “that’s what we’ve
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always done.” Metrics at these organizations become restraints that
costly overproduction. Savvy manufacturers focus instead on capacity
actually waste resources, aggravate employees, and block improvement.
optimization—the ability to efficiently produce exactly what’s needed,
How can companies break out of the metrics maze and develop
when it’s needed, without costly buildups of unwanted inventories.
a more successful performance-management process? By focusing
For your complimentary copy or copies of best-practices
executive effort on what makes performance measures powerful
business guides contact us directly at 888-ITALTRADE (482-5872),
and useful and by implementing a seven-step review that
email info@italtradeusa.com or through our “Media Center” on
continuously analyzes, updates, and transitions new and better
www.machinesitalia.org where you will find them as well as
metrics into the organization.
featured case histories, news articles, etc., showing how we are “Turning Innovation into Productivity” for numerous North
“CAPACITY OPTIMIZATION: A MANUFACTURER’S GUIDE FOR GETTING THE MOST OUT OF
American based manufacturers. We hope that once you have had a chance to review these
EQUIPMENT, PEOPLE, AND PROCESSES”
guides you will find them beneficial for your company’s needs
The ability to squeeze every ounce of productivity from existing
and that when making future purchasing decisions, you will
operations can mean thousands of dollars in savings. Yet many
consider at least a few of the tens of thousands Italian
companies still confuse productivity with increased output—forgetting
manufacturers who are members of our 14 partner Italian
than profitable productivity not only increases margins but prevents
machinery manufacturers’ associations.
Association for Manufacturing Excellence’s 20th Anniversary Conference and Trade Show If you make the purchasing decisions for your company, you Cincinnati, OH October 18-22, 2004 have an enormous responsibility. You must know the ins and
Visit Machines Italia at booth #217
outs of production in a way no one else does—finding machines and systems solutions that are functional, reliable and durable, with readily available service and spare parts. You decide whether the return on investment can ultimately be realized. In short, much of your company’s success depends on your purchasing choices. Italian machinery can make your decision easier. That’s why this year Machines Italia is proud to be one of the corporate sponsors of the Association for Manufacturing Excellence’s 20th Anniversary Conference, being held in Cincinnati, Ohio from October 18th to 22nd, 2004 as well as an exhibitor at the concurrent trade show, Advanced Manufacturing & Productivity Exposition (AM-Expo) 2004 (October 19th-21st, 2004). Both the conference and expo share the common goal of striving to improve global competitiveness within the
manufacturing industry, presenting technological advances, workshops and education on best practices. In keeping with this aim, Machines Italia will present the latest information on its partner associations and companies at these events. At our booth #217 in the Northern Kentucky Convention Center (Covington, KY), Machines Italia representatives will be on hand to help you find the right partners and manufacturers who can administer to your most challenging and specific production needs. You will be able to find information on the world’s most highly skilled engineers, designers and manufacturers who always turn innovation into productivity either by re-tooling existing concepts or by creating entirely new systems not yet imagined. While the conference will address a variety of issues affecting global enterprise excellence, Machines Italia will provide visitors with case histories, industry white papers and current information on what Italian machinery manufacturers are doing here in North America to keep local manufacturers productive.
For more information, please visit: www.ame.org/conf2004/
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ITALIAN INNOVATION
Italian
innovation If necessity is the mother of invention, Italian is its native tongue. The first maritime compass? Flavio Giola. The thermometer? Galileo Galilei. The radio? Guglielmo Marconi. Alessandro Volta and the battery, Salvino D’Armate and eyeglasses, Pellegrino Turri and the typewriter— the list of inventions that began life on Italian soil is long and wholly astounding.
K
nowing what to do with a machine can be as
An early compass
valuable as dreaming it up. A Dutchman, Hans
Lippershey, built the telescope in 1608. But the contraption sat, useless, for an entire year until it occurred to an Italian (Galileo) to point it up toward the stars. The architect Filippo Brunelleschi, tired of unrealistic-looking blueprints, devised the theory of linear perspective; Masaccio, a fellow Florentine, was the first to use it to give the illustion of depth in a painting. Bartolomeo Cristofori grew fatigued with the incessant plucking sound of the harpsichord and decided to do something about it: He created the
Alessandro Volta demonstrates his battery
world’s first keyboard with volume control: the piano. Italy’s busiest innovator may have been a man named Leonardo, who left the tiny Tuscan town of Vinci to become one of history’s most visionary thinkers. When he wasn’t tied up making masterpiece of Lisa Gioconda’s smile or hiding codes in The Last Supper, Leonardo whiled away the day developing expertise in music,
engineering,
anatomy,
military
science,
astronomy, botany, geology, and more. Depending on the account, the original Renaissance man counted among his numerous inventions the parachute, the helicopter, scissors, and an auto-feed hydraulic saw.
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Alenia Spazio contributes to exploration of Mars
Italy has become synonymous not just with
APM Inc., which handles the Bologna-based
ingenuity but with unmatched quality. After 300 years,
company’s U.S. distribution and service. “Their
Stradivarius is still the world’s most-sought-after brand
equipment is used all over the world in coffee, flour,
of string instrument. Ferrari (www.ferrariworld.com),
rice, bakery, and confectionery packaging.”
Lamborghini (www.lamborghini.com), Maserati
One of the keys to packaging efficiency is
(www.maserati.com)—for car buffs, Italy represents the
completing all production steps in one cycle. Patented
ultimate in edgy performance and style. Consistent
machines like ICA’s HF100C/P automate the process
invention from the likes of Versace (www.versace.com),
from the formation of bags out of flat paper to
Armani (www.armani.com), Dolce & Gabbana
measuring and filling to the heat-sealed final product.
(www.dolcegabbana.com), and Prada (www.prada.com) is what pushed Milan to displace Paris as the fashion capital of the world. But Italy’s most forward-looking innovation today goes on far removed from the glitzy spectacle of runway and racetrack. In a country so beloved for its colorful style, cuisine, and la dolce vita, the Italian manufacturing sector hums quietly along.
“Having private ownership for three generations, with the same family running the company, it’s a signal of continuity, which is very highly appreciated by the market.”
A package deal Prada and ICA S.p.A. (www.icaspa.it)have two things in common: an Italian headquarters and a flair for
By saving reloading wait times, labor and production
inventive bags. But while Prada’s bejeweled handbags
costs are minimized.
are destined for the fashion-forward few, ICA’s bagging machines have revolutionized the packaging industry.
Another challenge is how to deal with products that release gas after packaging—the most common
Anyone who’s ever opened up a package of flour
example is coffee. Small holes in the package stave
understands implicitly that some materials are more
off explosions caused by the extra volume, but aroma
unwieldy than others. If you’re unsure, try emptying
and flavor are compromised. To solve the problem,
one onto your counter, then scooping the contents
ICA’s packaging machines incorporate Aroma
back into the bag. Now repeat the process about
Systems technology—essentially a one-way degassing
6,000 times an hour—with minimal spillage—and
valve—to keep shape and flavor intact.
you’ll get an idea of ICA’s challenge.
Packaging flour and coffee is hard enough. The task
“The ICA line is extremely innovative in bag
gets more daunting with increased size and toxicity. APM
forming and filling of difficult-to-handle products,”
also distributes machinery for the Bastia Umbra–based
said Denton C. Smith, executive vice president of
Concetti Group (www.concettigroup.it), which
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ITALIAN INNOVATION
specializes in machines that package chemicals, animal
expensive. Since a substantial portion of costs
feed, and fertilizer. “Many products that Concetti is
involves setup and breakdown, rotogravure has
running today would have been thought impossible to
traditionally been an option only for customers in a
run less than a decade ago,” Smith said. Concetti
position to place large orders. The shorter the press
machinery is built with metals that can withstand the
run, the more prohibitive the costs.
corrosive effect of toxins, and several lines include
Cerutti S.p.A. (www.cerutti.com), a printing
multiple separate chambers that perform duplicate
equipment manufacturer based in Casale Monferrato,
functions—to avoid cross-contamination dangers.
has been working to making rotogravure a feasible option
“I think one important aspect of the Italian culture is to propose not only the products, but to place them side-by-side [in front of] the customer and actually solve their production problems.”
for
more
customers.
“Rotogravure
is
unmatched as far as printing quality,” said Massimo Genio of Cerutti’s U.S. branch, “but the technology was out-of-reach for smaller customers—or for larger customers interested in short runs.” The latter appeal especially to manufacturers of retail products that depend heavily on impulse purchasing. “If you go to the supermarket, you need to be attracted by a packaging that is one day yellow, another day green, another day orange. We had to find an innovative
Smith, based in Norcross, Ga., said ICA and
way to be flexible, to give our customers the
Concetti have managed to flourish in the U.S.
possibility to be profitable even in a short-run
market despite competition from countries where
market, where a lot of their customers are moving.
labor is cheaper. “Labor costs are certainly a factor in
For example, Nabisco, Cadbury—all these big, big
determining cost and value,” he said. “However,
names—they tend to change their design more and
when buying a custom piece of packaging machinery,
more frequently. We had to give our customers a way
the technical side usually outweighs any labor
of handling those orders.”
savings that would only provide a cheaper cost. Our success is directly related to innovation.”
Cerutti’s solution, the R970, was the company’s featured product introduction this past May at DRUPA, the print-production industry’s quadrennial
14
Printing: Changing types
international trade show. The company wanted the
Avoiding downtime and mess aren’t a packaging
product to address three basic challenges, Genio said.
company’s only concerns. Adorning the packages
“First is the time you need to change from one
with eye-catching labels and colors can be a
production to the next. The second is the number of
budgetary challenge. The highest-quality printing
people you hold. The third is the number of
process is called rotogravure, and it’s also the most
components you have to handle doing this
www.machinesitalia.org
changeover.” The R970, he said, succeeds in
Pietro Carnaghi’s vertical lathes, gantry-type
streamlining the short-run process on all three fronts.
milling machines, vertical grinding machines, and
Cerutti also makes publication press equipment,
fabricated machine parts include the defense
and one of its U.S. customers is Quad/Graphics, an
contractor Lockheed Martin Corp., the aircraft-engine
enormous Wisconsin-based press house used by
manufacturer Pratt & Whitney, and the construction-
popular magazines such as Newsweek, People, and
equipment company Caterpillar Inc.
Sports Illustrated. What attracts the printer of some of
To service such customers adequately, Pietro
America’s highest-circulation periodicals to an Italian
Carnaghi’s lathes do offer some of the world’s largest
company like Cerutti? According to Genio, it’s
capacities in machining, as well as the more standard
Cerutti’s commitment to keeping up with the
capacities used to make generators, steam turbines,
cutting edge of technology—but also the company’s
and general-mechanics products. But according to
structure and philosophy.
Giuliano Radice, U.S. sales manager for Pietro
“Having private ownership for three generations,
Carnaghi and the great-grandson of the man who
with the same family running the company, it’s a
started the company, what keeps customers coming
signal of continuity, which is very highly appreciated
back goes beyond simply shape, size, and power.
by the market,” Genio said. “The Cerutti family
“The U.S. market is very exemplifying of the high
always took pride in meeting and personally
added value that our technology provides,” Radice
knowing every customer they had—which is not so usual these days.”
The engines that could In 1504, Leonardo da Vinci was hard at work sketching plans for never-built flying machines. In 2004, Pietro Carnaghi S.p.A. (www.pietrocarnaghi.com) is hard at work making vertical lathes used to build actual flying machines. The company, based in Villa Cortese, provides heavy-duty machine-tooling installations for the aerospace,
power-generation,
and
mechanical
applications industries. Need a vertical lathe with a capacity of 6/8 meters of workpiece diameter? Not likely. Unless perhaps you happen to work for the aerospace manufacturer The Boeing Co., a longtime customer. Other large companies that depend on
Above: Cerutti, a printing equipment maker based in Casale Monferrato, has been working to make rotogravure a feasible option for more customers.
1-888-ITALTRADE
15
ITALIAN INNOVATION
said. “I think one important aspect of the Italian culture
painter. When a servant showed up at Giotto’s Tuscan
is to propose not only the products, but to place them
home to request a sample work, the artist dipped his
side-by-side [in front of] the customer and actually
brush in paint and—in one, continuous stroke—
solve their production problems.”
produced a perfect circle. Though annoyed by the apparent act of contempt, the minion brought it back to his boss, who decided that any artist who could draw a
“[Italian producers] always fight to give a ‘plus,’ to push the technological level to be one step forward of our competitors. It is appreciated by the high-level end users that want to have the very latest, very best performing solutions.”
perfect circle freehand must be the most accomplished in the land. Giotto was hired on the spot. Whether the story is fact or fiction, what’s indisputable is how vividly it illustrates the appreciation for perfection that remains a defining characteristic of Italian culture. No wonder that Italy is home to so many manufacturers devoted to precision-oriented output. For example, the BLM Group (www.blmgroup.com), headquartered in Cantú, is currently the largest supplier
What’s more, said Radice, the company is
of metal tube fabricating equipment in Europe. The
owned by a family that for generations has
company has made considerable strides penetrating the
recognized the importance of generous R&D
U.S. market since it set out to do so in 2001, and its
investment. That philosophy, he adds, helps Pietro
equipment
Carnaghi outpace the competition from countries
customers—including a market leader in the motorcycle
where labor is cheaper.
and
ATV
has
attracted
(all-terrain
several
vehicle)
high-profile
industry.
Other
cost
manufacturers that use BLM’s precision installations
conditions are not playing well in our favor,” Radice
include makers of hospital beds, wheelchairs, lawn and
said. “That’s why we always fight to give a ‘plus,’ to
gardening equipment, and snowmobiles.
“Italian
producers
know
that
labor
push the technological level to be one step forward of
If you’ve never had to fabricate extremely precise
our competitors. It is appreciated by the high-level
tubes, you’re not alone. Suffice it to say that Giotto’s
end users that want to have the very latest, very best
precocious-eyeballing method wouldn’t have cut it
performing solutions.”
here. At the very basic level, it breaks down like this, said Jim Rutt, president and chief operating officer of
16
1-888-ITALTRADE
Totally Tubular
BLM Group USA, in Wixom, Mich. “Let’s say you
In the 14th century, legend has it that Pope Boniface
take a 2-inch-diameter tube and you try to put a
VIII began vetting candidates to be his new court
simple 90-degree bend in it. Because of the
characteristics of the material, when you bend it in the bender, then release it, it will tend to spring back so that the actual bend may be closer to, say, 89.5 degrees.” Good enough to land a court-artist gig, perhaps, but not to ensure accuracy in subsequent procedures. “So now, let’s say you need a quarter-inch-diameter hole in the tube that has to meet up—precisely—with another tube: If you had cut a hole in the tube before bending, the specifications would be off,” he said. The solution, the company realized, was to cut the hole after the bending process. Because
cutting
what’s
virtually
a
two-
dimensional prebent tube is much easier than negotiating a bent one, BLM Group recently developed the Model LT905, an automated laserbased tube-cutting system that specializes in handling prebent tubes. “When we’re cutting tubes that have
Above: Pietro Carnaghi S.p.A. is hard at work making vertical lathes used to build actual flying machines.
been bent before the cutting process, the LT905 acts under computer control—it has a touch probe—and
with robot-automated grinding, handling, and
defines in place exactly where that tube is. So after it
polishing technologies. Nordmeccanica S.p.A.
touches both ends of our ‘90-degree’ tube, it knows
(www.nordmeccanica.com), based in Piacenza, recently
that the actual degree of bend is actually only 89.5
helped the Bellwood, Ill., company Lawson Mardon USA
and can adjust the cutting accordingly.”
Inc. produce flatter, clearer food-product packaging to
The new technology has been a success, said Rutt.
meet its competition head-on. FATA Aluminium
Recently, a supplier of muffler and exhaust-system
S.p.A. (www.fataaluminium.com), based in Rivoli, was
parts to one well-known high-performance German
the only company in the foundry tooling and machinery
automaker has adopted the LT905 to ramp up the
industry whose casting lines could muster the daunting
precision of its fabricated-tube offerings.
performance and size specifications that General Motors Corp. demanded in a recent production overhaul.
And the innovation continues...
The
list
of
Italian
companies
offering
Lovati Fratelli S.r.l. (www.lovatifratelli.com),
technological advances above and beyond their global
based near Milan, has found a way to bring age-old
competition is growing every day. And savvy U.S.
artisanal glassblowing techniques into the future
manufacturers are clearly beginning to catch on.
www.machinesitalia.org
17
GLOBAL VISIBILITY
Keeping an
eye on supply
Visibility across the global supply chain isn’t an option—it’s an essential element in today’s business world. Ruari McCallion finds out how Italian machine manufacturers are accomplishing this feat.
chains across the globe—and the need to keep stocks to a minimum, in order to minimize the capital tied up in inventory—has emphasized the need for visibility, right from raw material to delivery of finished product into the customer’s hands. Nearly 60% of web-based customers
18
T
here’s a Disney song that tunefully tells us that it’s a
and partners now monitor the status of their orders
small world. And if that’s true in the entertainment
during shipping. But is it really essential or is it just a case
business, then it’s even more the case in industry and
that
manufacturing. There are those who would assure you
organizations just can’t let things take their course?
information
and
management-obsessed
that it’s possible to run a ‘lights out’ factory in China from
“Part of it is the ‘Amazon effect’,” Mr. Heim said. “You
a desktop PC in Chattanooga. That may be stretching the
bought some books on the Net and you’re able to track
envelope a little, right now, but not much.
it all the way through from the warehouse to your front
“You can have a great deal of visibility to whatever
door. You expect to get the same thing in the
goes on—right to the factory floor. You can check an
workplace—especially as people try to drive inventory
order was received on such-and-such a date, was
out of the supply chain.” But supply chains used to be
shipped then, here’s the container and the tracking
very short, and a phone call would elicit information
record. That’s the power of the Web,” said Chris Heim,
about the whereabouts of an order from a vendor who
president of HighJump software, a 3M company. The
was based 20 miles away. An emergency order could be
demand is definitely there. The extension of supply
supplied, quite possibly, within a day, at a price. Vendors
www.machinesitalia.org
may now be thousands of miles away, across an ocean or
huge effort to make every linkage—and the small guy in
two and half a continent.
China is never going to do it, he’ll never get there. The
“You have to have the visibility and you need a great
Web allows you to speak to each other.”
deal of planning,” Mr. Heim said. “If you have a 45-day
The question arises: does the level of visibility that’s
lead time, you need to know 45 days ahead what’s
now available convey an advantage, or has it become an
going on in your suppliers’ factories. The need is for
essential block on the structure of business? The reality
greater linkages and the problem is how those linkages
is that it depends on the nature of the business. If you’re
are established to get information automatically and
a third-party logistics provider, for example, then your
overcome the problems of human error, like forgetting
customers will expect you to be able to tell them what’s
to order.” The reality is that visibility is probably greater
happening with their consignments, at any time of the
now than it has ever been, even though the distances
day or night. So they need the tools to deliver on their
have become greater. It’s also the case that it can get
promise to be an extension of your business.
even better.
Organizations with maturity in the supply chain need to
Between OEM and Tier One, the connections are
have the visibility, also. Consider an auto manufacturer,
well established, most likely through EDI. But EDI is
relying on JIT and scheduled lineside delivery. The
expensive, and it gets more expensive the further back
whole process would quickly collapse into chaos without
the supply chain you go. EDI has its advantages: it’s
real-time, end to end visibility, 24/7 and Ford wouldn’t
secure, it’s instant and it’s as comprehensive as the
have been able to make the headway that has brought it
parties want it to be. But its security means that, the
back into strong profitability in the first quarter of 2004.
more customers a supplier has, the more it needs to
Not everyone is in the same position.
are
“The spares side of our operation is very important.
problematic, time consuming and tedious: there’s a lot of
There are machines of ours in use today that date back
commitment and investment involved in connecting
to 1974,” said Jackie Rose, spare parts manager for
different operating systems to each other. There is
Cannon
another way: the Internet. The Web browser is the
headquarters and main manufacturing plant is located
common platform that software vendors have talked
near Venice, Italy. It deals in technology and equipment
about for years. Even little jobshops in the boondocks of
for polyurethane applications and its U.S. head office is
the developing world can communicate instantly,
in Cranberry Township, PA. The service and
through a desktop PC and the Internet. The perceived
maintenance operation depends upon technicians and
problem is security, of course.
service engineers who travel all across the U.S., Canada
spend.
Disparate
operating
environments
USA
(www.cannon.it), whose global
“There has been a great deal of progress in security
and Mexico. New machines automatically get commis-
on the Internet,” Mr. Heim said. At a very basic level,
sioning and initial service and maintenance support and
people are prepared to share credit card information with
the company keeps stock of spares at Cranberry.
on-line shops and suppliers. “Yes, EDI is secure but it’s a
“Typically, our computer system plays a big role. It
1-888-ITALTRADE
19
GLOBAL VISIBILITY
sets minimum and maximum levels of inventory, we run
which is based in Duluth, Georgia. The U.S. operation is
weekly reports and restock when levels fall below
a distributor of specialist woodworking machinery,
minimum,” she said. Approximately 70% of the
ranging from standard equipment to high accuracy CNC
company’s spares inventory by U.S.$ value is supplied
machining centers. The lower end equipment is
from its Italian parent. “Some components are kind of
manufactured in Taiwan; the more complex products are
unique to our equipment. Regular orders are fulfilled on
produced by its parent company, SCM Group
a regular schedule: the computer program calculates
(www.scmgroup.com), which is based in Rimini, Italy. “If
needs and places the order automatically. We use a Web-
a customer is investing $800,000 to $1 million in a piece
based system with our parent company and order
of machinery, the more they want customized, so we
directly through the Internet. An automatic report
can’t carry much inventory.” Sales orders and dis-
confirms our order to our purchasing agent and we
tribution are handled through business managers, each
receive shipments three times a month.” The level of
directly in touch with their production managers in Italy.
visibility isn’t at the ‘Amazon’ level but it probably doesn’t have to be—at the moment.
20
“Visibility from our end is limited: we can’t look at the shopfloor in Italy, but the Rimini factory can look at our
“We use two freight carriers and they send us pre-
order situation,” Dr. Checchi said. “Orders are generated
alerts, which advise the items that are coming and their
in different markets—here and across the world—and
tracking numbers. They give us a ‘heads up’ as soon as
worked back to scheduling in the factory. When we’re
the parent company advises of shipping,” Ms. Rose said.
involved in sales negotiations with a customer, we always
“We get confirmation and estimated delivery date and
inquire from Italy what the schedule is—it’s part of our
they’re normally accurate. If something is urgent, we use
offer to our customers, we get that information before the
e-mail to communicate.” The system works quite
order.” The distribution within the U.S. is the
smoothly and exceptions are dealt with through e-mail
responsibility of SCM Group USA and it is able to see
and phone. Trade routes between the US and Europe are
clearly what is going on. “Our regional managers work
pretty well established but new times bring new
with our regional distributors and deal with them at a
problems. There are anti-dumping laws that exclude
personal level. Orders come in electronically and are
certain items or require more documentation—especially
loaded directly onto our ERP system.”
on computer components and bearings, which also carry
Effective distribution is always dependent on a good
tariffs of anywhere between four per cent and 50%.
warehouse management system. Dichtomatik, which is
“There are stricter policies on certain components and
also European-owned, supplies custom-built rubber
we are at the mercy of our suppliers to ensure the
molded O-rings, for everything from a pen to heavy
documentation has all been completed,” she observed.
construction machinery, to the OEM market. It carries
“As we go higher up the market, our machines get
over 20,000 SKUs and holds over 6,500,000 units of
more customized,” said Dr. Giordano Checchi, CEO of
inventory at its Minneapolis facility, and the
SCM Group USA, Inc. (www.scmgroup-usa.com),
management of them is the responsibility of Dennis
www.machinesitalia.org
be made very quickly, although complex models aren’t
Bollinger, director of distribution operations. “We want to keep our inventory to a minimum but
always easy to amend. Changing the shape and size of a
99.9% of our goods are imported. With a lead time of 60
product can take quite a lot of work.” But ‘quite a lot of
days, we have to maintain a large stock,” he said. “Our
work’ isn’t the same as it was 20 years ago, when
big customers give us annual forecasts but we also get
blueprints made their leisurely way from OEM to
people coming in ‘out of the blue’, so we cover with a
supplier and back again through the post or by courier.
little extra for them.” Suppliers send Dichtomatik an
“Shareware creates transparency and you can see who’s
electronic advice of shipping notice, with a complete list
holding everything up. When different people in
of items. When the container comes in, with 48 pallets
different places are interacting, you need to keep track of
on board, the ‘license plate’ is scanned; that confirms the
who changed what, and who was the last person to do
contents and automatically updates the central system,
something, what is the current model, and control
which
matters of access and authorization.”
is
HighJump
Advantage,
modified
to
Dichtomatik’s needs. “It goes into pick and pack instantly. We check in 350 to 500 orders a day, averaging three-and-a-half line items each, and we ship 100% on same-day turnaround. Five to 10 years ago, prior to the installation of our warehouse management system, it used to take five to six days to receive goods inwards. Now, we receive the container, quality control it and it takes three days at most. The greater efficiency, reliability and visibility has enabled us to triple sales, improve efficiency and reduce the labor cost element.” Global visibility isn’t just a question of monitoring goods through the distribution chain. Supplies that come from all over the world are being designed all over the world, also. Responsiveness to market demands requires
“If you have a 45-day lead time, you need to know 45 days ahead what’s going on in your suppliers’ factories. The need is for greater linkages and the problem is how those linkages are established to get information automatically and overcome the problems of human error, like forgetting to order.”
that products are constantly subject to redesign— whether to meet market demands or exploit opportunities to improve efficiencies.
Cross-border collaboration, over huge distances, is a reality. Airbus Industrie, a partnership involving Italy,
“3D modeling on computer is much more intense
Germany, the United Kingdom, Spain, and France, and
and it really delivers speed downstream,” said David
using suppliers from the U.S. and other parts of the
Raffo, principal of Raffo Design Associates, which is
world, uses Parametric Technology CAD. When Ferrari’s
based in Chester, England, and has clients all over
Grand Prix auto racing team began its resurgence, its car
Europe, in the USA and across the world. “Changes can
was designed in England and built in Italy. Menard
1-888-ITALTRADE
21
GLOBAL VISIBILITY
Engineering Limited has a virtual reality studio that can
Electronic Warfare System components and assem-
host presentations and launch events with participants
blies. Piaggio Aero is also providing high-speed
from all over the world. It’s clear that such international
machining and a Rudder Torque Tube. Meanwhile,
collaboration is only going to grow as time goes on.
Aerea is involved with launcher production, fuel-
For example, in 2002, Italy joined a number of nations, including the United Kingdom, Canada,
system valve manufacturing, as well as Fuselage Remote Interface Unit chassis machining.
Denmark, the Netherlands, and Norway, which are
22
Other Italian companies involved with the
participating in the development of the cutting-
development of the JSF include Marconi
edge F-35 Joint Strike Fighter (JSF) aircraft, as part
Communications S.p.A. (www.marconiselenia.com),
of an international team led by Lockheed Martin
which is providing emergency UHF radio systems, while
Aeronautics Co., a division of Lockheed Martin
Sirio Panel S.p.A. (www.siriopanel.it) is making
Corp. These countries, since they are participating
cockpit panels and lights. Secondo Mona S.p.A.
in the decade-long System Development and
(www.secondomona.com) is working on ice detection
Demonstration (SDD) phase of the JSF program, will
equipment, while another Italian company is building
have the opportunity to supply parts and systems,
life-support systems. Mecaer S.p.A. (www.mecaer.it)
and influence the aircraft’s design and capabilities.
and
OMA
S.p.A.
(Officine
Selenia
Meccaniche
During the program’s SDD phase, Italy alone will
Aeronautiche) (www.omafoligno.it) are working
contribute approximately $1 billion to the JSF’s
on various Nose Landing Gear components, Moog
development. Several Italian companies are collaborating
Italiana S.r.l (www.moog.it) on actuation com-
in the effort, and a number of Italian engineers and
ponents, and Oto Melara S.p.A. (www.otomelara.it) on
managers are currently on site at Lockheed Martin in Fort
gun production.
Worth, TX, where the principal design activities and final
World-spanning collaboration is becoming more
assembly are taking place. A leading company is Alenia
widespread, creating new challenges for supply chain
Aeronautica S.p.A. (www.alenia-aeronautica.it/),
visibility. “In five years time, I expect to see RFID allow us
who is working on composite wing production and is part
to track production from creation to consumption.
of the Integrated Product Team, which also includes
Demand signals will be flowing at all times and visibility
Italian companies Datamat S.p.A. (www.datamat.it),
throughout the supply chain will reach all the way down
Galileo Avionica (www.galileoavionica.it), PIAGGIO
to individual packages. It will be like the nerve signals that
AERO
Industries (www.piaggioaero.com) and
travel up and down the human body, stimulating actions
AEREA S.p.A. (www.aerea.it), providing engineering
and reactions, maybe sub-assembly in China, final
and design participation.
assembly in Mexico, with added parts from Central
Galileo is providing a number of components,
America,” Chris Heim said. “We won’t shorten shipping
including Electro-Optical Targeting System vacuum
time—but we’ll see a more and more complex supply
cells, Multi-Function Display components, and
chain and have the tools needed for complete visibility.”
www.machinesitalia.org
Lean manufacturing offers global appeal
BLM’s equipment is like a work cell in and of itself
The positive aspects of lean manufacturing are truly international. Rich Weissman discusses how manufacturing companies from Italy such as BLM are contributing.
L
ean manufacturing is a phenomenon that continues
By maintaining a strong customer focus, evaluating
to gain momentum with companies around the
and adjusting manufacturing processes, integrating
globe, improving the operational, financial, and
the supply chain into operations, and improving
customer
organizational
service
performance
of
adopting
effectiveness,
companies
can
organizations. Manufacturing companies don’t become
experience the benefits of lean almost instantly. Lean
lean overnight, and many experts feel that some of the
success is best viewed incrementally. Many small
greatest rewards of lean lie in the journey of continuous
improvements add up quickly, allowing for a ramp up
improvement. Lean manufacturing is an evolutionary
of enthusiasm and the desire to see even more
process and a company wide positive attitude and
improvements. Lean is contagious.
honest self-analysis are important.
All
manufacturing
companies
share
basic
All companies can begin the lean process by
competitive priorities, including manufacturing products
concentrating on the critical areas of their business.
at the lowest total cost, delivery that meets customer
1-888-ITALTRADE
23
LEAN MANUFACTURING
Key Elements of the Lean Manufacturing Process • Maintain a customer focus
helps eliminate waste and improve quality during the manufacturing phase. Improved product design centers on utilizing standard product configurations, reducing the amount of part numbers through standardization
• Design a process flow
and simplification, and incorporating process design with product design.
• Become compulsive on quality • Balance the production schedule
Once the customer order is booked, the focus turns to the manufacturing process. The key elements of lean manufacturing include designing a
• Incorporate a pull system
process flow, improving product quality, establishing a stable manufacturing schedule, utilizing a kanban
• Integrate the supply chain into operations • Reduce and manage inventories
or demand flow process, integrating the supply chain into operations, aggressively managing inventory, improving
• Improve product design through collaboration
product
design,
and
encouraging
employee involvement. The design of the manufacturing flow is often
• Encourage employee involvement
viewed as the critical component of lean manufacturing. It may also be the most disruptive to the factory. Many
24
requirements, high quality products and services,
factories are moving to cellular manufacturing, with its
efficient service levels, and organizational flexibility.
dedicated work areas that incorporate all of the tooling,
Lean manufacturing, with its emphasis of cost reduction
inventory and documentation necessary to build a
through the elimination of waste, process simplification,
product or sub assembly. Cellular manufacturing
and employee involvement, allows for companies to
typically increases manufacturing throughput, reduces
meet these competitive priorities.
manufacturing cycle time, and improves product quality,
The front end of lean manufacturing needs to focus
due in part to a specifically trained employee who
on the customer. Without completely understanding the
maintains and operates the work cell. Group technology,
business and technical requirements of their customers,
the grouping of like equipment in a machine shop, also
organizations cannot align their operations effectively.
assists in improving production flow. Maximizing the
The lean process begins before accepting the sales order.
floor layout in any manufacturing facility results in the
Through processes such as Quality Function Deployment
need for less manufacturing space, saving overhead costs
(QFD), a systematic way to capture and integrate
and reducing the need for facility expansion.
customer product requirements, specific criteria can be
Some manufacturers are not only lean, but they
integrated into the design of products. Completely
support lean manufacturing with the type of equipment
understanding product requirements at the design phase
they produce. BLM Group (www.blmgroup.com) of
www.machinesitalia.org
Cantù, Italy manufactures fabricating equipment used
reaching a crescendo during the last few days of the
in the recreational vehicle, health and fitness, and
month. The trend line actually looks like an inverted
medical equipment markets that bends, cuts, and forms
hockey stick. This causes excessive strain on employees
metal tubing. According to James Rutt, the president
and the manufacturing system, resulting in rushed
and chief operating officer of Wixon, Michigan based
shipments, shortcuts, poor quality, dissatisfied customers
BLM Group USA, a wholly owned subsidiary, “Our
and an impacted cash flow. The situation is usually
equipment is really like a work cell onto itself. Our
repeated monthly. Lean manufacturing calls for a level-
design philosophy is to consolidate as many tube
loaded schedule that meets customer demand no matter
fabricating steps into one machine as is possible.” Rutt
what the time of month. This allows for a measured
adds that their objective is to help customers address
material flow leading to managed inventory levels,
their lean initiatives by dramatically reducing direct
efficient equipment loading, reasonable supplier delivery
and indirect labor content, simplifying the production
schedules, and effective labor planning. Eliminating the
process flow, reducing work-in-process inventory, and
end of the month rush reduces organizational stress and
saving manufacturing floor space.
improves all aspects of the operation, with an especially
Improved product quality is usually an outcome of
favorable improvement in cash flow.
lean manufacturing. Lean forces a company to analyze and improve many manufacturing processes, and while doing so, firms often find process errors that lead to poor quality. During lean implementations, employees also become inspired to solve as many quality related problems as possible. By focusing on quality assurance rather than quality control, firms can determine root cause analysis and provide permanent corrective action to eliminate the defect. Using innovative techniques such as Six Sigma, kaizen, statistical process control (SPC) and mistake proofing, companies can aggressively seek to identify and solve
“We negotiated kanban based agreements for complex high tech vacuum systems with our operation in Torino, and that helped us solve many inventory and customer service problems...We were able to reduce order points and inventory while improving our customer satisfaction goals.”
quality problems, leading to reduced scrap and rework and improved customer satisfaction.
The smoothing of the factory from a scheduling and
Often, under performing companies will tend to
manufacturing aspect allows for smaller lot sizes,
have an unbalanced production schedule, resulting in a
another key aspect of lean manufacturing. Lean
“hockey stick” trend of monthly shipments. In this
organizations convert their manufacturing process from
scenario, there are few shipments early in the month,
a push system, one hoping to meet customer demand, to
and the shipment rate continues to increase weekly,
a pull system, actively reacting to customer demand.
1-888-ITALTRADE
25
LEAN MANUFACTURING
With reduced manufacturing cycle times and a
says Sandy Selvey, the Varian Vacuum Technologies
streamlined manufacturing process, lean companies can
Supply Chain Manager. “We were able to reduce order
often build to customer order, or at least closer to
points and inventory while improving our customer
actual customer demand, than traditional batch
satisfaction goals.” Selvey says that most of the daily
manufacturing. Many companies use kanbans, a
communication with the plant in Italy, after the
Japanese term for signal, as the key to know when to
establishment of the kanban system, is electronic, which
build a product or replenish inventory. In a pull system,
certainly assists in overcoming time and communication
product is only supplied when a kanban signal is issued,
issues. “Having our factories transition to a pull system
allowing for reduced work in process inventory. Smaller
has greatly improved our relationship and operating
lot sizes also allow companies to be flexible in meeting
efficiencies with the plant in Torino,” says Selvey.
changing customer demand. With less material in production, defects are also caught earlier.
The performance of suppliers is directly linked to customer satisfaction. Without high performing suppliers, companies may be starved of quality products that are delivered on time and at the lowest total cost.
“In our industry, collaborating with suppliers is quite important. Our conclusion is that technology like this works well, will pay for itself quickly, and it will help us maintain our competitive position in the global automotive industry.”
Lean recognizes the importance of suppliers and advocates the inclusion of supplier performance metrics into operating plans. Once lean efforts have begun in the factory, suppliers are often asked to begin the lean process themselves in an effort to reduce their lead times, reduce costs, improve quality, and make smaller and more frequent deliveries to their customer. Often, first level suppliers to lean organizations have also embraced lean, but it is important for all members of the supply chain to do so as well, allowing for increasingly streamlined and aligned processes.
26
Varian Vacuum Technologies’ manufacturing facility
Once a company starts to become lean, related
in Turin, Italy, Varian S.p.A. (www.varianinc.com)
operational improvements begin to gain momentum.
supports their Lexington, Massachusetts based sister
One area is inventory. A steady production schedule
division with lean based kanban and EDI programs. Lead
caused by factory smoothing and a closer relationship
times have been reduced from eight weeks to two weeks
with customers and suppliers allows for reduced
and inventory has been reduced by 30%. “We negotiated
inventory in all areas. A tighter production schedule
kanban based agreements for complex high tech vacuum
allows for reduced raw material inventory. A shortened
systems with our operation in Torino, and that helped us
manufacturing cycle time allows for reduced work in
solve many inventory and customer service problems,”
process inventories, and a customer based pull system
www.machinesitalia.org
allows for reduced finished goods inventory. Lower
enthusiastically embracing the aspects of lean, most lean
inventories result in improved inventory turns, reduced
initiatives will fail. Employees in lean environments are
warehouse space, less wasted production floor space,
often empowered to make the required operations
and improved cash flow.
decisions to keep the factory running smoothly.
Improved product design, as a result of closer relationships and collaboration with customers and suppliers,
also
supports
lean
manufacturing.
Collaboration calls for the integration of information and data from customers, manufacturing operations, and suppliers in order to improve the effectiveness of the overall manufacturing process. Collaborative manufacturing
increases
visibility,
improves
“Our equipment is really like a work cell onto itself. Our design philosophy is to consolidate as many tube fabricating steps into one machine as is possible.”
communication throughout the supply and demand chains, reduces cycle times, shortens time to market, improves quality, and aids in the product development
Many companies utilize cross-functional and self-
process. Collaboration is often done electronically,
directed work teams to tackle the problems that lean
seamlessly sharing data in support of lean operations.
implementations encounter. In addition, strong
Collaboration is critical in the automotive
leadership is imperative. Senior management must be
industry. Magneti Marelli Powertrain S.p.A.
convinced that lean will work and understand and
(www.magnetimarelli.com), the Milan, Italy based
support working through the obstacles of the never
manufacturer of high tech components and systems to
ending lean journey. Lean implementations often bring
automobile manufacturers such as Renault, Fiat Group
management and employees closer together as they
(www.fiat.com), Ford and Toyota, uses design
share information, education, successes, and failures.
interoperability software supplied by Proficiency, Inc. the
Lean manufacturing is not a panacea, nor a fad.
Marlborough, Massachusetts based company for
It is a logical process to eliminate waste, streamline
supporting the exchange of CAD models. “In our
operations, improve relationships with customers
industry, collaborating with suppliers is quite important,”
and suppliers, and save money. Not all lean
says Ferruccio Bondesan, V.P. of Purchasing at Magneti
programs work, often failing due to lack of
Marelli Powertrain. “Our conclusion is that
management support, employee apathy and short-
technology like this works well, will pay for itself quickly,
term thinking. Lean is international in scope,
and it will help us maintain our competitive position in
especially in this time of international operations.
the global automotive industry.”
Lean works, and may soon be more than just a
Potentially the most important aspect of lean manufacturing is the employee. Without employees
phenomenon. It may be the only way for companies to compete in the global marketplace.
1-888-ITALTRADE
27
MACHINES ITALIA TRADE SHOWS
Italian exhibitions
listed by
Trade Show
Title
Sector
Participating Partner Asso.
Show Location
Show Dates
SAIE 2004
The International Show of Building Technologies
Construction
Not In Attendance
Bologna, Italy
October 13-17, 2004
MEDPACK 2004
Exhibition of Packaging and Handling Technologies for the Mediterranean Food, Chemical and Pharmaceutical Industry
Packaging
UCIMA
Naples, Italy
October 21-24, 2004
MEDPRINT 2004
Exhibition of Technologies for the Mediterranean Printing, Publishing and Paper Converting Industry
Printing, Graphic and Converting
ACIMGA
Naples, Italy
October 21-24, 2004
TANNING-TECH International exhibition of tanning machinery, accessories and systems 2004
Footwear, Leathergoods and Tanning
ASSOMAC
Bologna, Italy
October 26-29, 2004
SAMAB 2004
11th International Clothing Industry Machinery and Accessories Show
Textile Machinery
Not In Attendance
Milan, Italy
November 3-6, 2004
EIMA & EIMA Garden 2004
International Agriculture and Gardening Machinery Manufacturers Exhibition
Agriculture / Farm UNACOMA Machinery
Bologna, Italy
November 10-14, 2004
Plastics and Rubber
ASSOCOMAPLAST
Bari, Italy
February 10-13, 2005
MACPLAS 2005 Trade Fair for Plastics and Rubber Machinery
28
VITRUM 2005
Specialized International Exhibition for flat, bent and hollow glass manufacturing machinery, equipment and plants, glass manufactured and processed, glass products for industry
Glass
GIMAV
Milan, Italy
Ocotober 5-8, 2005
GRAFITALIA 2005
Exhibition of Machinery and Materials for the Graphic Arts, Publishing and Communication Industries
Printing, Graphic and Converting
ACIMGA
Milan, Italy
October 11-15, 2005
CIBUS TEC
Food Processing & Packaging Technology Exhibition
Food Technology
Not In Attendance
Parma, Italy
October 18-22, 2005
IKME 2005
International Exhibition of Finishing and Kniting Technologies
Textile Machinery
ACIMIT
Milan, Italy
November 18-22, 2005
EMO
The Trade Fair for the world production of machine tools, systems, robots and automation products
Metalworking
UCIMU
Hannover, Germany Milan, Italy
Hannover - 2005 Hannover - 2007 Milan - 2009
Ipack-Ima 2006
International Exhibition for Packing, Packaging, Material Handling and Packaging/ Food Processing Machinery Food Technology
UCIMA - ANIMA (ASSOFOODTEC)
Milan, Italy
February 14-18, 2006
PLAST 2006
International Plastic and Rubber Industries' Exhibition
Plastics and Rubber
ASSOCOMAPLAST
Milan, Italy
February 14-18, 2006
GEC'07
International Exhibition of Technologies for the Graphic Arts, Publishing, Paper and Converting Industries
Printing, Graphic and Converting
ACIMGA
Milan, Italy
2007
Eurocarne
International Exhibition of Meat and Meat Processing Industries
Food Technology
ANIMA (ASSOFOODTEC)
Verona, Italy
TBA
1-888-ITALTRADE
sector Website
Organizer
Address
Zip Code
City
Telephone
http://www.bolognafiere.it/ eng_default.asp
BolognaFiere S.p.A.
Viale della Fiera, 20
40128
Bologna
011-39-051- 011-39-051saie@bolognafiere.it 282111 6374013
http://www.medpack.it/en/ index.htm
Ipack-Ima S.r.l.
Corso Sempione, 4
20154
Milano
011-39-023191091
011-39-0233619826
ipackima@ipackima.it
http://www.medprint.it/en/index.htm
CENTREXPO S.p.A.
Centro Mostre Specializzate, Corso Sempione, 4
20154
Milano
011-39-023191091
011-39-02341677
centrexpo@centrexpo.it
http://www.tanning-tech.it/
Assomac Servizi S.r.l.
Via Matteotti, 4/A P.O.Box 113
27029
Vigevano (PV)
011-39011-39info@assomac.it 0381-78883 0381-88602
http://www.senaf.it/samab04/index.htm SENAF Mestiere Fiere
Via Eritrea, 21/A
20157
Milano
011-39-023320391
011-39-0239005289
samab@senaf.it
http://www.eima.it/en/home.html
UNACOMA Service S.r.l.
Via Lazzaro Spallanzani, 22/A
00161
Roma
011-39-06442981
011-39-064402722
eima@unacoma.it
http://www.macplas05.org
Promaplast S.r.l.
Centro Direzionale Milanofiori, Palazzo F/3 Casella postale 24
20090
Assago (MI)
011-39-028228371
011-39-0257512490
info@macplas05.org
www.vitrum-milano.it/
VITRUM
Via Petitti, 16
20149
Milano
011-39-0233006099
011-39-0233005630
vitrum@vitrum-milano.it
www.grafitaliaonline.com/ en/default.htm
CENTREXPO S.p.A.
Centro Mostre Specializzate, Corso Sempione, 4
20154
Milano
011-39-023191091
011-39-02341677
centrexpo@centrexpo.it
Via Rizzi, 67/a
43031
Baganzola (PR)Milano
011-390521-9961
011-390521996235
tecno@fiereparma.it
www.fiereparma.it/cibustec/emain.htm Fiere di Parma S.p.A.
Fax
http://www.ikme.it
Fiera Milano International S.p.A.
Domodossola, 1 Palazzina F
20145
Milano
011-39-0248550-1
011-39-0248008342
segreteria.ikme@fmi.it
www.emo-milan.com/eng/index.cfm
CEU-CENTRO ESPOSIZIONI UCIMU S.p.A.
Viale Fulvio Testi, 128
20092
Cinisello Balsamo (MI)
011-39-0226255225
011-39-0226255890
info@emo.it
http://www.ipack-ima.com/ index_eng.htm
Ipack-Ima S.r.l.
Corso Sempione, 4
20154
Milano
011-39-023191091
011-39-0233619826
ipackima@ipackima.it
http://www.plast03.org/ ?Cambia=ing
ENFIPLAST
Centro Direzionale Milanofiori, Palazzo F/3
20090
Assago (MI)
011-39-0282283756
011-39-0257512490
plast@assocomaplast.org
http://www.gecmilano.it/ index_eng.htm
CENTREXPO S.p.A.
Centro Mostre Specializzate, Corso Sempione, 4
20154
Milano
011-39-023191091
011-39-02341677
centrexpo@centrexpo.it
http://www.fieremostre.it/fiere/ geninfo.jsp?edizId=ec03&fieraId=ec
PROMEXPO S.r.l.
Via Caldera, 21-C
20153
Milano
011-39-0240922565
011-39-0240922599
cei.promo@promexpo.it
www.machinesitalia.org
29
ITALIAN MACHINERY
Innovation at work
in global
AGRICULTURE/FARM MACHINERY UNACOMA represents Italian manufacturers of tractors, agricultural machinery and gardening machinery. These Italian manufacturers produce everything from power mowers for the homeowner to tractors and harvesters used by the world’s leading agribusiness enterprises. UNACOMA members account for 90% of Italian farm machinery production. Italian farm equipment manufacturers rank first in the world in terms of the range of machines produced. www.unacoma.com
CERAMICS Italian manufacturers of machinery and equipment for ceramics have earned a world-class reputation for providing solutions that meet a vast range of customer needs—from traditional ceramics to the latest design trends. Customers around the globe choose machinery produced by members of ACIMAC, the Association of Italian Manufacturers of Machinery and Equipment for the Ceramic Industry, because it is easy to program and simple to maintain; this machinery is also known for its ability to increase productivity and for its design flexibility. www.acimac.it
EARTHMOVING MACHINERY COMAMOTER is the group of UNACOMA representing the Italian manufacturers of earthmoving machinery, attachments and components. COMAMOTER has approximately 40 members (manufacturing over 80% of the total output) who build high quality, reliable, heavy, medium and light equipment for worldwide use, valued at over 3 billion dollars a year. Italy exports more than $1 billion of earthmoving machinery, equipment and parts annually to more than 140 countries worldwide. www.comamoter.com
FOOD TECHNOLOGY ASSOFOODTEC (Incorporating UCMA)—the Italian Association of Machinery and Plant Manufacturers for Food Production, Processing and Preservation—has leveraged the Italian spirit of innovation into a global leadership position. ASSOFOODTEC operates within the Federation of Italian Mechanical and Engineering Associations (ANIMA), and its member turn out machines for global exports that are well known for technological superiority, durability and ingenuity. www.assofoodtec.it
FOOTWEAR, LEATHERGOODS AND TANNING ASSOMAC is the association of Italian manufacturers of footwear, leathergoods and tanning machinery— representing 190 Italian companies. Member manufacturers are world leaders in this sector, supplying over 50% of the world’s demand for footwear and leathergoods machines and over 80% of the demand for tanning machines. In 2002, 125 countries acquired Italian technology from this sector—representing 60% of Italy’s production volume of exported machines, with a value equal to $610 million USD.www.assomac.it
FOUNDRY AND METALLURGICAL MACHINERY AMAFOND is the Italian association of companies producing machinery, plants, furnaces and products for the foundry industry. Its 80 member companies provide machinery used in the manufacturing of everything from automobile engines and components to domestic appliances. AMAFOND credits the “Italian approach” to business—characterized by extra customer care and stronger personal relationships—as one of the reasons its member companies attract worldwide customers. www.amafond.com
GLASS As an evolution of the Italian glass-making tradition, GIMAV—the Italian Association of Glass-Processing Machinery and Accessory Suppliers—represents Italian excellence in glass-making machinery today. This industry sector has expanded internationally by employing innovative technology that meets today’s marketplace needs. GIMAV’s 72 member companies are known for customizing machines to meet exacting end-user specifications— from high-rise building construction to fine arts applications. www.gimav.it
30
www.machinesitalia.org
markets MARBLE AND STONE One hundred and seventy-two companies form the foundation of Associazione Italiana MARMOMACCHINE, the association representing the Italian marble and stone machinery industries. These companies supply the advanced technology that makes Italy a global leader in the stone and manufactured stone industries. Italian machinery is engineered to be versatile and provide customers with unique solutions to process marble and stone at competitive prices. www.assomarmomacchine.com
METALWORKING UCIMU is the Italian Machine Tools, Robots and Automation Manufacturers’ Association. These 214 companies create machinery and components for industries from aerospace and automotive to appliances. Italian machine tool manufacturing firms are smaller than their international competitors. As a result, their flexibility and ability to respond quickly is unmatched by manufacturers from other countries. Leading global companies choose Italian machine tool machinery. www.ucimu.it
PACKAGING UCIMA groups the Italian Manufacturers of Automatic Packing and Packaging Machinery. Its members represent 65% of the total Italian production and, on average, 85% of Italian exports. One packaging machine out of every four in the world bears the wording “Made in Italy.” And the USA is the industry’s main outlet market of the sector. The worldwide success of the Italian packing and packaging industry is firmly rooted in a consolidated technological tradition and in the ability to find customized packaging solutions.www.ucima.it
PLASTICS AND RUBBER The companies of ASSOCOMAPLAST, the Italian Plastics and Rubber Processing Machinery and Molds Manufacturers’ Association, are globally renowned for their “turnkey solutions”—addressing customer needs through sophisticated machines and engineering. As a result, the Italian plastics and rubber processing machinery industry has seen steady growth since its inception in 1960. Italian machines are highly prized by the world’s most industrialized and economically advanced countries. www.assocomaplast.org
PRINTING, GRAPHIC AND CONVERTING ACIMGA represents the Italian manufacturers of machinery for the graphic, converting and paper industry. Members of this association are world leaders in making machinery for rotogravure and flexographic printing, paper and cardboard processing, and converting. Most of what is produced is absorbed by the packaging market with 60% of the industry’s turnover, followed by the graphic sector with 35%, then niche applications with around 5%. www.acimga.it
TEXTILE MACHINERY ACIMIT is the Italian association representing 220 members who create textile machinery used throughout the world. Each member takes pride in helping their manufacturing customers spin “cloth into gold.” Italian textile machinery manufacturers meet the full spectrum of industry needs (spinning, weaving, knitting, finishing and laundry machines), and leading American clothing manufacturers rely on the quality of Italian high-tech machinery. www.acimit.it
WOOD In every segment of woodworking, from sawmills to the industrial processing of solid wood and panel to finishing, the Italian industry is present with technological solutions capable of responding effectively to a multitude of user requirements. ACIMALL, the Italian Woodworking Machinery and Tools Manufacturers’ Association, with over 200 of the most qualified companies in their field, represents 80% of the whole industry, both in terms of employees and in turnover. www.acimall.com
1-888-ITALTRADE
31
Thank you for your consideration to turn our innovation into your productivity! For information on the companies cited within this publication or any of our thousands of Italian manufacturers, you may contact them directly, through our partner associations or any Machines Italia Offices here in North America. Don’t forget to visit WWW.MACHINESITALIA.ORG for the latest updates on Italian innovation, flexibility and creativity ready to meet your company’s specific needs. ATLANTA c/o Italian Trade Commission 233 Peach Street N.E., Suite 2301 Atlanta, Georgia 30303 Tel: 888-ITALTRADE (482.5872) Fax: 404.525.5112 E-mail: atlanta@atlanta.ice.it
LOS ANGELES c/o Italian Trade Commission 1801 Avenue of the Stars, Suite 700 Los Angeles, California 90067 Tel: 888-ITALTRADE (482.5872) Fax: 310.203.8335 E-mail: losangeles@losangeles.ice.it
CHICAGO c/o Italian Trade Commission 401 North Michigan Avenue, Suite 3030 Chicago, Illinois 60611 Tel: 888-ITALTRADE (482.5872) Fax: 312.264.6209 E-mail: info@italtradeusa.com
TORONTO c/o Italian Trade Commission 438 University Avenue, Suite 1818 P.O. Box 112 Toronto, Ontario Canada M5G 2K8 Tel: 888-ITALTRADE (482.5872) Fax: 416.598.1610 E-mail: info@italtradecanada.com
MEXICO CITY c/o Instituto Italiano Para El Comercio Exterior Edificio Omega, Campos Eliseos N. 345 Colonia Polanco - 11560 Mexico D.F. Tel.: (01152 555) 2808425 2813950 - 2813957 Fax: (01152 555) 2802324 Toll free: (in Mexico City) 5281 50 10 or (outside Mexico City) 1.800.696.6032 E-mail: info@italtrademexico.com