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Welcome to Advanced Manufacturing magazine's e-newsletter! "A must-read for decision-makers who manage, source and implement manufacturing technologies. Canada's #1 source for advanced manufacturing technology news, analysis and products." e-Newsletter Today's e-newsletter is sponsored by:
The Digital Edition of Advanced Manufacturing’s February edition makes it easy for readers to access the important market information that the magazine has provided for more than nine years. Hotlinks on all editorial and advertising are also provided to speed you to ALL the websites mentioned in the magazine, BOTH in the editorial (feature stories, news, product announcements) and the advertisements. Let us know how you enjoy the Digital Edition of Advanced Manufacturing. Please email your comments to jtenpenny@clbmedia.ca.
The fact that manufacturers tend to concentrate in geographic areas probably isn’t that surprising, but a recent study has proven that advanced manufacturing technology adoption is driven by those who where there first or “prior adopters.” The study “Cities and Growth: Knowledge Spillovers in the Adoption of Advanced Manufacturing Technologies,” released by Statistics Canada, examines in greater detail the role that geographic clustering plays in the adoption of advanced manufacturing technologies that generate productivity growth. The study used detailed survey data on advanced manufacturing technologies to show that plants that adopt advanced manufacturing technologies often cluster together in local regions. It also found that the likelihood that plants will adopt new technologies is influenced by the presence of past adopters in the same region. This is evidence that localized knowledge spillovers related to technology use are an important part of the link between clustering and productivity growth. The study reports: “The results indicate that technology adoption is facilitated by the presence of prior adopters with four characteristics. First, they are adopters of the same technology (as opposed to advanced technologies in general). Second, they reside in the same region. Third, they are similar to the potential adopter in that they purchase a similar set of intermediate goods and services. Finally, they are dissimilar to the potential adopter in that they do not operate in the same product market.” Click here to view the complete study. John Tenpenny, editor Please feel free to drop me a line: Today's e-newsletter is sponsored by: 
New General Motors of Canada Automotive Centre of Excellence launched at UOIT The establishment of a new General Motors of Canada Automotive Centre of Excellence at the University of Ontario Institute of Technology (www.uoit.ca) took the next step towards reality with more than $120 million in contributions from General Motors of Canada (www.gmcanada.com) and the PACE partnership, the Government of Ontario and the Government of Canada. The GM of Canada Automotive Centre of Excellence will be the hub of the broader Automotive Innovation Network linking automotive engineers, auto suppliers and Canadian universities. When completed, the centre will house state-of-the-art research and development tools in the areas of vehicle dynamics, noise and vibration, thermal climatic wind tunnel, structural durability testing and the ability to accommodate future automotive fuels like hydrogen. “Our vision has been to create a new advanced automotive technology cluster centered at UOIT that links together our best Canadian companies, universities, students and engineers with companies in the Canadian automotive supply chain,” said Arturo Elias, president, General Motors of Canada. “At GM we believe that building new innovation and commercialization linkages is critical for our industry’s success in Canada and Canadian suppliers’ ability to use innovation as a core advantage for the future.” The new centre will partner with PACE, (Partners for the Advancement of Collaborative Engineering Education) a consortium of companies with five partners – GM, EDS, HP, Siemens PLM Software and Sun Microsystems – and 10 other PACE contributors. PACE will provide an initial investment of more than $60 million in state-of-the-art computer based hardware, engineering software and student and instructor training and academic support. That level of support is expected to grow over time as it is integrated into new curricula. The Ontario government is investing $58 million in the centre as part of its $235 million auto strategy investment in GM’s Beacon project. GM and the Government of Canada also announced further support in the form of a Natural Sciences and Engineering Research Council of Canada (NSERC) grant to co-fund an NSERC-GM of Canada Chair in Innovative Design Engineering, which has been awarded to Dr. Remon Pop-Iliev, an associate professor at UOIT. NSERC and GM of Canada will contribute $1 million each over a five-year period, in combination with UOIT’s contribution of $250,000, to fund this key new academic position. “By investing in know-how, the McGuinty government is bolstering the long-term future of our auto industry. The centre will help inspire our next generation of auto engineers and strengthen Ontario’s R&D network that is essential to make this province the best place to create the products and jobs of the future,” said Sandra Pupatello, Minister of Economic Development and Trade. “UOIT is honoured to have the opportunity to create the GM of Canada Automotive Centre of Excellence here on campus,” said UOIT President Dr. Ronald Bordessa. “This partnership is very important strategically as it significantly builds upon the foundation we have developed at UOIT for educating Canada’s next-generation automotive engineers, men and women who will blend technical knowledge and creative design skills to greatly advance automotive research and design.” Today's e-newsletter is sponsored by:
Maximizing your equipment investment: BDC recommends long-term planning WIf you’re buying equipment as a quick fix for a rapidly growing business then there may be a better way to make the most of your investment without draining the company’s cash. “That equipment purchase can be a costly decision. Entrepreneurs need to anticipate growth and do some long-range planning first,” says Mary Gagliardi, Business Development Bank of Canada (BDC) Vice President and District Manager, Southern Ontario. Gagliardi has seen many companies unexpectedly pick up new contracts and buy new equipment without carefully assessing their needs. “In capital-intensive sectors such as manufacturing, if you have an unusual blip in production, you need to know whether that’s just temporary and how new equipment will serve your business.” Gagliardi recommends that business owners purchase equipment with a long-term plan in mind. BDC Consulting (www.bdc.ca) can help companies assess their overall business needs and devise a sound production strategy by implementing a step-by-step plan that might involve a plant overhaul or redesign. “Entrepreneurs wouldn’t necessarily have to tackle an entire production line but focus on improving one area of their business,” she says. “Ultimately, you could reduce storage space, decrease inventory, improve turnaround time, and use those cost savings for an additional investment in equipment,” she adds. Strategic alliances can also benefit companies that want to share knowledge and skills. “Small businesses could consider sharing basic office equipment and telecommunications technology if it doesn’t adversely affect productivity. It’s just a question of being innovative with your resources,” says Gagliardi. For example, a company could schedule the use of machinery to accommodate other users, so that a few companies are footing the bill. Today's e-newsletter is sponsored by:
Phoenix Contact celebrates 25 years in Canada Phoenix Contact kicked off its 25th year in Canada by announcing plans to build a new headquarters in Milton, Ont. The new 2,125 square-meter building will meet LEED energy efficiency design standards. “Our rapid growth over the past years has now made it impractical for us to remain in our current building,” stated Joe Perfetto, Director of Finance and Operations, “Milton represents a perfect location with proximity to the highway and a very business friendly environment.” The ground breaking of the new building is expected to take place during the spring with occupancy taking place early 2009. Andreas Sobotta, Director of Sales and Marketing for Phoenix Contact Canada also announced that the company surpassed 1 billion (EUR) in worldwide sales for the first time in the Germany-founded company’s 85-year history. “It is great to see our continued growth in Canada,” said Sobotta.
Education Next forum discusses changing needs of technologists More than 100 employers, government officials and educators met in Hamilton on January 22 to help chart the future of an innovative partnership between McMaster University and Mohawk College. Participants in Education Next: A Forum for Advancing Technology Education, provided input for building on the success of the McMaster-Mohawk Bachelor of Technology Partnership. Launched in May 2006, the partnership is the first in Canada to offer an accelerated path for working technologists, internationally trained professionals and high school graduates to earn both a college diploma and university degree in technology. “We need the technicians and technologists who know how to make things work better,” said keynote speaker Murray Elston, president and CEO of the Canadian Nuclear Association, speaking in regard to the future of clean energies. The Bachelor of Technology Partnership recently introduced a new two-year degree completion Energy Engineering Technologies program addressing the changing needs of the energy sector. “Two compelling reasons are driving the partnership,” noted MaryLynn West-Moynes, president, Mohawk College. “They are the changing needs of employers and students who want to get jobs and make a difference.” A series of breakout sessions were held to get ideas and input from participants. Topics included energy engineering technologies, training for internationally educated engineers and technologists, continuing technology education, educational and career pathways in engineering and technology, and employment issues for students and graduates. “A tremendous amount of work has been completed to take the concept of the McMaster-Mohawk Bachelor of Technology Partnership and make it a reality,” said Mo Elbestawi, vice-president, Research and International Affairs, McMaster University. “Those involved from both Mohawk and McMaster are to be commended for their commitment and dedication to this initiative.” For more on the McMaster-Mohawk Bachelor of Technology Partnership, go to btech.mcmastermohawk.ca.
Turning whiners into winners will help manufacturers compete globally When Canadian manufacturers faced their self-proclaimed “brush with death” experience with the recently soaring Canadian loonie, it starkly exposed the traditional Canadian method of making money — use a cheap dollar and cheap wages (compared to the U.S.) to compete and produce essentially commodity products in many cases. It’s how we make profits in this country, encouraged and even mandated by government. But is it logical to simply compete on price? No, simply because someone somewhere will always be cheaper than you. The “almighty” Canadian forestry industry, which pays high school educated workers $70,000 salaries to pump out two-by-fours instead of more value-added products, is being destroyed by foreign competition. We are selling forestry commodities, not value-added products to make profits. Where is our Canadian IKEA?
Green IT: Moving lean from the shop floor to the data center Green is the new black. It’s hard to pick up a newspaper in the early 21st century without being assaulted by messages about the environment. If it’s not climate change than it’s toxic spills. Manufacturers have responded with a variety of new controls and lean processes. Unfortunately, this diligence hasn’t extended to IT operations. It’s time to explore green for the IT department. But do it for the bottom line. Manufacturers that ignore environmental issues face government fines, boycotts, and rising operating costs due to inefficiencies. Sony, for example, spent more than $130 million in 2001 when the Dutch government banned its PlayStations due to toxic levels of cadmium. In 2004, Dupont was fined $16.5 million by the US Environmental Protection Agency (EPA) and suffered public outrage as information surfaced about the dangers of Teflon. GE, on the other hand, was able to identify tens of millions of dollars worth of inefficiencies through IT-driven environmental performance monitoring and resource management. These cases demonstrate that green—or the lack-thereof—can have an impact on the bottom line.
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