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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:
Watch for our March/April Digital Edition available in early April. 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.
Where’s the advantage? The federal government’s recent budget failed to address Canadian manufacturer’s most pressing need – the extension of the two-year write-off for investments in manufacturing and processing equipment. This budget extends the two-year write-off for one year then provides two additional years of declining depreciation rates, well short of the five-year write-off the Canadian Manufacturers and Exporters had called for. By failing to give companies time to make investment decisions, customize equipment, and meet regulatory approvals, the government is effectively rendering useless the tax measure that can stimulate business investment in new productive technologies. “This just doesn’t cut it,” says CME president Jayson Myers. “Manufacturers are under the gun to innovate and this measure basically takes us back to where we started. With an one-year extension at current levels, it doesn’t fit into the business planning cycle for Canadian companies, so many hard-pressed businesses won’t be able to take advantage of this.” While the budget does provide $250 million for an Automotive Innovation Fund to help Canada’s automotive sector adapt to the challenges of the future, it really didn’t’ address the issues surrounding building a competitive advantage for Canadian manufacturers. John Tenpenny, editor Please feel free to drop me a line: Today's e-newsletter is sponsored by: 
Major investment in groundbreaking clean energy technologies The Ontario Centres of Excellence (OCE) Inc. and its industry and academic partners announced an investment of $28 million in the research and development of six groundbreaking clean energy projects that promise to create cleaner and more efficient ways for Ontarians to generate, consume and manage energy. The six projects address issues critical to Ontario’s energy sustainability: These innovative made-in-Ontario technologies will benefit consumers, institutions and industry alike by reducing greenhouse gas emissions, delivering economic returns and putting Ontario on the forefront of clean energy production, distribution and consumption. The announcement of $13 million from OCE and $15 million from industry will be shared among the six projects involving breakthrough technologies in solar, hydrogen and energy conservation and demand management. This unique collaborative effort brings together industry leaders with academic experts from universities across the province, fostering world-class research in clean energy options, and is supported by 100 undergraduate to PhD researchers. “OCE is committed to playing a significant role in transforming the energy sector to establish Ontario as a world leader in clean energy through the commercialization of innovative solutions,” said David McFadden, Chair, OCE Board of Directors, who made the announcement with The Honourable John Wilkinson, Minister of Research and Innovation, at the Accelerator Centre in Waterloo, Ont. “The projects unveiled today promise to reshape the way Ontarians use and think about energy,” added McFadden. “Today’s investment builds on the considerable talent of our world-class researchers to ensure Ontario maintains leadership in growing sectors and consistently turns global challenges – such as climate change and environmental sustainability – into opportunities for Ontario,” said Wilkinson. “These projects represent the strong partnerships among our top researchers, global business leaders and government that will provide Ontarians with a cleaner environment, a higher quality of life and more opportunities for success.” “Ontario has the skills, talent and technology to address many clean energy challenges – from generation to consumption, in both the short and long-term – not only across the province, but on a worldwide scale as well,” said McFadden. “To ensure these challenges are met, OCE is committed to connecting industry with academia to help bring cutting-edge research out of the laboratory and into the marketplace.” For more information about the Ontario Centres of Excellence (OCE) Inc.,
Manufacturing CEOs confident according to study The industrial manufacturing sector is optimistic about its future, with 86 per cent of executives confident of achieving business growth over the next 12 months, according to a recent study. The PricewaterhouseCoopers (PwC) 11th Annual Global CEO Survey also found the top three rated opportunities for contributing to this growth are new product development, geographic expansion and better penetration of existing markets. The survey also found, however, that industry is currently facing a shortage of highly skilled and trained employees. This is clearly an area of concern, with 62 per cent of respondents anticipating that lack of availability of key skills will become worse and could pose a threat to business growth. “This is a challenging time for Canadian manufacturers with pricing on goods continuing to decline due the rising Canadian dollar and with the lack of skilled labour companies are feeling the pinch,” says Dean Mullett, Canadian Leader Automotive and Industrial Products for PwC. “Manufacturing CEOs need to focus attention on investing in their people. Going global and driving technological innovation requires collaboration and strong skill sets. Industrial manufacturing companies need to be proactive in addressing people issues to succeed in the evolving world economy.” Industrial manufacturing CEOs are also keenly aware of the importance of technological innovation with 75 per cent looking to it as a source of competitive advantage, compared with 65 per cent of respondents across all industries.
Profits in Canada’s food manufacturing industry continue to grow After posting a 36 per cent growth in profits last year, Canada’s food manufacturers can expect another record year of profitability at $3.5 billion in 2008, according to the Conference Board’s Canadian Industrial Outlook: Canada’s Food Manufacturing Industry – Winter 2008. “Industry profits have been booming over the past year, thanks to a strong rebound in prices and increased exports to emerging markets,” says Conference Board economist Valérie Poulin. “Yet, rising costs continue to put pressure on food manufacturers. Higher prices for products used to make ethanol, such as corn and sugar, are driving up material costs for manufacturers, so consumers should expect higher food prices.” Grain prices are at the highest level ever recorded and are expected to remain high in the short term. Labour costs are also contributing to increased industry costs as a tight labour market pushes up wages. Although profit growth is not expected to match the 2007 performance, production growth— averaging 2.4 per cent annually over the next four years—and steady price increases will allow profitability to continue rising through 2012.
London jet manufacturer receives $19.6-Million repayable investment The Honourable Jim Prentice, Minister of Industry, announced a $19.6-million repayable investment in Diamond D-JET Corporation of London, Ont, for the pre-competitive research and development of an all-composite, single-engine, five-passenger jet aircraft. “The Government of Canada, guided by our Science and Technology Strategy, supports Canadian researchers and innovators in developing new ideas and bringing them to the marketplace,” said Minister Prentice. “By enabling Diamond to expand its technological capabilities, the D-JET project will build on Canadian strengths and help maintain Canada's place as a world leader in small all-composite aircraft.” The $95.2-million D-JET program will allow Diamond to develop expertise in a new class of aircraft, small business jets, and continue to excel in the development of products for general aviation. Additional benefits of the program include attracting foreign investment to Canada and leveraging private sector investment in R&D, both of which will create significant economic benefits, particularly in the London region. “This R&D program is critical to helping our company become a major player in the rapid growth of the very light jet market,” said Peter Maurer, President of Diamond D-JET Corporation and Diamond Aircraft Industries Inc. “With its single engine and innovative composite construction, the D-JET redefines personal air transportation in terms of affordability and environmental impact.” This project will be funded through the new Strategic Aerospace Defence Initiative (SADI).
Why, what and when to automate on the manufacturing floor Manufacturing automation, found in all our plants falls under the capital costs factor of the manufacturing costs equation. Automation leverages our competitive advantages and makes our products economically viable by creating an optimum mix of the three factors of production. Capital in the form of automation is our control dial and is the most responsive control point so that we can “dial in” our resultant manufacturing costs. Therefore, as materials and labour are commodities in the global markets, automation remains our most important competitive advantage.
Deconstruct problems and rebuild them into improvement ideas FINDING THE CAUSE: IN PURSUIT OF PURPOSE “Why do we eat?” If this question were asked, many would answer, “To gain nutrition, so that we can enjoy a long and healthy life.” The reality may differ. Sometimes we eat just because food is there, or just to enjoy the momentary satisfaction of having food in our mouth. Even worse, we might eat a certain food because we saw it on a TV commercial, and are unwittingly serving the purpose of benefiting a company’s bottom line, instead of our long-term health. For the most part, human action is based on reason. Nevertheless, we often forget our purpose or misunderstand what the ultimate purpose really is. Consciously pursuing the purpose and reasoning behind one’s action is just as important in manufacturing as it is in our daily lives. Indeed, sometimes the solution to a problem is discovered only in the process of realigning our actions with their true purpose.
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