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"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
April 2008
Volume 7, Issue 4


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Advanced Manufacturing March/April Digital Edition is Now Available

Advanced Manufacturing’s March/April fully interactive Digital Edition is now available. Click here to view the Digital Edition.

The Digital Edition of Advanced Manufacturing’s March/April 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.


1. EDITOR’S NOTE:
Provincial government steps up for manufacturers

“The best insurance policy on tomorrow is based on the decisions you make today.”

That was the advice to the audience from Robert Krycki, CEO of air ring manufacturer Future Design. He made this remark at the town hall meeting on financing innovation at this year's Advanced Manufacturing Expo. Krycki was on the panel with representatives of government agencies, which offer programs and services to help Canadian companies innovations within their operations and offered his experiences with these programs as being very rewarding.

“We had more ideas than we had money and this is where innovative financing was needed,” he said.

While most are familiar with federal programs such as the Scientific Research and Experimental Research tax credit program and the Industrial Research Assistance Program run by the National Research Council, a more recent program offered by the Ontario government caught my attention.

Launched in 2005, the Advanced Manufacturing Investment Strategy (AMIS) is a $500 million incentive loan program that encourages companies to invest in leading-edge technologies and processes. AMIS provides repayable loans that are interest-free for six years (new this year) to companies that meet the threshold of creating 50 jobs or investing $10 million over those six years.

To receive AMIS money, companies have to propose projects that fall under the category of advanced manufacturing. Typical eligible projects include industrial research and development, robotics/software development, prototyping and engineering, waste reduction or energy conversion and setting up centres of excellence.

Recent recipients of AMIS funding include Skyjack Inc. of Guelph ($2.48 million), Roxul Inc. of Milto ($10), FAG Aerospace of Stratford ($1.78) and the Flakeboard Co. of Sault Ste. Marie ($1.78). Total project investments ranged from $16 million to more than $100 million.

Ivan Krmpotic from the Ontario Ministry of Economic Development and Trade also talked about the Next Generation of Jobs Fund, which is a five-year, $1.15 billion strategy to help innovative companies grow and create well-paying sustainable jobs for today's workforce and for the next generation of Ontario's highly skilled workers.

According to Krmpotic, Ontario’s Next Generation of Jobs Fund will fund companies that make everything from car parts to advanced health products to Academy Award-winning special effects technologies.

For more information about AMIS visit www.ontario-canada.com

John Tenpenny, editor
Advanced Manufacturing

Please feel free to drop me a line:
jtenpenny@clbmedia.ca
(905) 713-4367


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2. INDUSTRY EVENTS:

Study compares costs for advanced manufacturing locations

KPMG LLP recently released the results of its 2008 Competitive Alternatives study—an independent analysis of major cost factors affecting business site selection. The 6-month research program for the study, the 7th in a series dating back to 1994, covered more than 100 cities in Australia, Canada, France, Germany, Italy, Japan, Mexico, Netherlands, the United Kingdom, and the United States. This edition measured 27 significant cost components, including labour, taxes, real estate, and utilities.

Even more interesting, these cost components are cross-referenced with 17 different vertical industries over a 10-year planning horizon. Eleven of those industries are in manufacturing, and most qualify as advanced manufacturers.

This year marked the first time the study compared an emerging industrialized country—Mexico—with the control group of mature industrialized countries. Mexico clearly separated itself from the competition with a 20 percent overall cost advantage. Everyone is curious to know how Canada fared, and the answer is favorably. Despite a 17.4 percent appreciation of our dollar relative to the US, Canada has been able to maintain a slim 2nd place ranking in the survey.

Bearing in mind that Mexico ranked number one for costs in all manufacturing industries, Canada also made a strong showing here. We always ranked in the top half, and most often in the number two or number three position. Our closest competitor was usually Australia or the United States. Canada proved to be especially competitive in chemicals, medical devices, pharmaceuticals, and telecommunications.

What is behind Canada’s manufacturing competitiveness? The study provides detailed charts that show that Canada’s main advantages lie in a low income tax rate, as well as relatively low costs for statutory and other benefits.

A fascinating aspect of the study is the cost comparison of 102 international cities by manufacturing industry. Next to the Mexican contingent, Canadian centres like Sherbrooke, Moncton, St. John’s, Charlottetown, and Saskatoon ranked among the lowest cost manufacturing cities.
– Willy Kruh, National Industry Leader Consumer & Industrial Businesses

The 2008 Competitive Alternatives study is available at no cost by visiting www.competitivealternatives.com.


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3. INDUSTRY EVENTS:

Annual APMA conference and exhibition returns to Hamilton

Canada’s original equipment automotive supply industry returns to Hamilton, Ont. April 30-May 1 for its 2008 APMA Annual Conference and Exhibition. This year’s theme is “Developing 20/20 Vision” and will be attended by a significant majority of Canada’s automotive executives and industry suppliers. In addition to featuring a stellar lineup of speakers, including recently added Mr. Kiyoshi “Nate” Furuta, Chairman and CEO, Toyota Boshoku America, Inc., and Barry Engle, President and CEO of Ford Motor Company of Canada, this two-day event will identify key issues confronting the industry, provide key strategic insights and strategies to address them while highlighting opportunities and providing superb networking opportunities.

The Exhibit Hall will feature the AUTO21 Inc. “Innovation Showcase” featuring a number of innovative technologies and products, which will sure to be an attraction and focal point of the Exhibit area. In addition, conference sponsors, IBM Canada Inc. will be facilitating an “Internet Collaboration Zone” providing complimentary Internet access to all conference attendees and Ontario Centres of Excellence (OCE) will be showcasing a “Commercialization Zone.”

For more information and to register for the event, visit www.apma.ca.


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4. INDUSTRY EVENTS:

The 2008 AM Expo featured interactive town halls,
including one centred on the financing of innovation.

Support for manufacturing by governments highlighted at AM Expo

Canadian manufacturers saw the latest technologies available and also learned about government funding for advanced manufacturing technologies and R&D at the Advanced Manufacturing Expo, held March 27-28 at the International Centre in Mississauga, Ont.

Some 2,000 attendees sampled technologies such as CNC precision machining, CAD/CAM software, machine vision and sensors from more than 100 exhibitors.

New to this year’s event were a pair of interactive town hall meetings with members of government and industry. The first meeting, “Business Strategies for Global Competitiveness”, highlighted the business opportunities emerging in the Mexican manufacturing sector and discussed mechanisms and services available to Canadian companies to explore these opportunities.

The second town hall meeting, “Financing Innovation”, assembled a panel of experts to discuss some of the programs and services available to Canadian manufacturers seeking assistance in financing innovation within their business operations. The panel included representatives from the Business Development Bank of Canada, the National Research Council (Industrial Research Assistance Program), the Canada Revenue Agency (Scientific Research and Experimental Development program) and the Government of Ontario’s Advanced Manufacturing Investment Strategy (AMIS) program.


5. INDUSTRY EVENTS:

EMC and IGLOO unveil new online manufacturing community portal

The Excellence in Manufacturing Consortium (EMC), the City of Kitchener, Waterloo Region and IGLOO recently unveiled a new online manufacturing community portal the two organizations are developing, called the Manufacturing Innovation Network (MIN).

EMC is Canada’s largest manufacturing consortium while IGLOO, which recently moved its headquarters to downtown Kitchener, is a local firm specializing in creating online portals.

EMC is utilizing IGLOO’s Web 2.0 platform for the development of our ‘next generation’ website, which in-turn will provide the foundation for MIN. MIN’s focus is to become a portal community and social networking hub for members of the manufacturing sector to facilitate collaboration and share best practices with one another. MIN will also help businesses self promote and connect with other local suppliers, rather than shopping halfway around the world for raw materials or services.

“We are well aware of the challenges and problems facing the manufacturing sector, and most especially in recent months and years,” said City of Kitchener Mayor Carl Zehr. “In terms of focusing on the key area of supporting manufacturing competitiveness, the key priority of city staff is to establish a mass collaboration network among our manufacturers.”

EMC’s consortium infrastructure and model provides the framework for the ‘virtual’ manufacturing community. “Just as innovation, creativity and optimism are the hallmarks of the manufacturing sector’s spirit, the new Manufacturing Innovation Network, or MIN, is expected to become a vital tool in manufacturers’ future marketing and daily operating machinery,” added Zehr.

In all, 68 per cent of participants in this year’s (City of Kitchener) visitation program expressed an interest in participating in MIN. Dan Latendre, CEO of IGLOO Inc., said initiatives like MIN, are extremely innovative, taking corporate networking a step further, going beyond corporate firewalls and enabling collaboration within specific industry sectors and across regions and job functions.

A pilot steering committee has been set up to guide and direct the new local manufacturing innovation network, comprised of local government, manufacturers, manufacturing associations and academic representatives. Currently, it is mapping out its business plan, strategy and conducting a needs assessment with EMC.

“Through the development of our next generation website, EMC is supporting the Manufacturing Innovation Network platform to build the collective expertise of industry.” said EMC President Al Diggins. “By connecting the region's manufacturers with each other, as well as community partners, government and other stakeholders, this community will provide industry with an opportunity to become more competitive, more responsive and more collaborative in building competitive advantage across all sectors.”

Once the pilot community is completed, EMC will make the Manufacturing Innovation Network model available to all of its 50 consortium regions, which currently represent over 185 communities.

For more information, visit www.emccanada.org.


6. INDUSTRY NEWS:

$2.1 Million R&D funding boost for environmental and manufacturing innovation

Ottawa-based Precarn Incorporated announced a $2.1 million funding boost to promote the research and development (R&D) efforts of Canadian companies applying intelligent systems to solve commercial problems in the environment and manufacturing sectors.

Under the program – which is administered and funded by Precarn, a not-for-profit company representing a national network of corporations, universities, colleges, research institutes and government partners engaged in the development of enabling technologies – companies are being asked to respond to a Request for Proposals (RFP) for the development or implementation of intelligent systems technologies in areas related to environmental technologies (clean-tech) and manufacturing, particularly automotive parts. Up to $700,000 is available per project.

Paul Johnston, President and CEO of Precarn, explained that “this program addresses two key sectors applying Precarn’s collaborative Rx model, which has proven that strong linkages among private, public and academic organizations are critical to successfully stimulate the growth and competitiveness of an industry segment, foster the use of intelligent systems to transform and build a sustainable industry innovation model, and ultimately keep jobs in Canada.”

With a focus on the introduction and advancement of innovative made-in-Canada solutions, this initiative aims to fund commercially viable projects that address the challenges of the Canadian environmental technology and manufacturing industries.

Companies can access the RFP at www.precarn.ca.


7. INDUSTRY NEWS:

George Brown College recently held its annual
Technology in the City event.

“Green” expectations high for construction and engineering grads and employers

According to a George Brown College survey released at the 7th annual Technology in the City, four in five employers in the construction and engineering sectors put priority on recruiting staff with training and knowledge in environmentally sound practices, while nine in 10 students feel a company’s environmental practices and policies will play a significant role in their decision to work for them.

The survey, conducted with nearly 100 high school and college students and almost 200 industry representatives, also reveals many employers believe that their current workforce lacks the skills and knowledge to properly address and implement government and public demands for increased environmental responsibility. In addition, nearly a third identify the need to find qualified workers as the single greatest challenge they face in the next five to 10 years – more than a slowing economy, rising cost of materials, increased competition and changing government regulations.

“Ontario’s construction and engineering industries are changing, with employers and graduates citing the environment as a growing priority,” said Nancy Sherman, Dean, Centre for Construction and Engineering Technologies (CCET), George Brown College. “It is clear these sectors offer young Canadians a rare opportunity to join a growing and attractive workforce – one with high demand for jobs that gives environmentally conscious youth a way to affect positive environmental change instead of just being advocates for change.”

Other highlights of the survey demonstrate the environment’s impact on education and industry:
• 95 per cent of students say it is important for college or university curriculums to teach practices that are environmentally sound
• 94 per cent of industry respondents agreed that environmental responsibility plays a role in their business decisions, with 28 per cent strongly agreeing
• 82 per cent of industry respondents say that finding applicants with training and knowledge in environmentally sound practices is important to their recruitment decision-making process

Technology in the City is an annual event that engages youth and introduces them to the breadth of potential career options in the construction and engineering technologies sectors, including skilled trades. It highlights the important role that these sectors, and their workers, will play on the overall sustainability of our economy, society and the environment.

This year’s ‘green’ theme is supported by the mandate of the CCET at George Brown College – to integrate an environmental perspective into its curriculum to better prepare graduates with the skills and knowledge sought by employers.

The event featured a keynote address from renowned environmental educator Lisa Glithero, speaking to students about technology and the skilled professional’s contribution to a more sustainable future. According to Glithero, colleges like George Brown are well positioned to face the challenges of preparing students with environmental related skills because they offer an intimate, hands-on, participatory-based approach to learning, allowing for a more direct and immediate real-world application of students’ learning.

The event also featured a display of George Brown student inventions, as well as competitions for high school students to win a year’s tuition at the College’s Centre for Construction and Engineering Technologies. Among the green-focused inventions were an electric Vespa, a portable wind turbine and a solar tracker.


8. INDUSTRY NEWS:

The Automated Imaging Association
released its latest study on the North American
machine vision market.

North American machine vision market continues to grow

A new machine vision market study reports that machine vision and automated imaging continues to be a growth industry in North America.

The 2008 study is based on 2007 actual results and is organized primarily around the major machine vision product markets: optics, lighting, cameras, imaging boards, smart cameras and application-specific machine vision systems (ASMV). While the study predominantly focuses on the North American market, two chapters are dedicated to the emerging Chinese and Indian machine vision markets. The study also provides worldwide estimates of sales.

The study, entitled Machine Vision Markets – 2007 Results and Forecasts to 2012, is published by the Automated Imaging Association (AIA), the world’s largest and only global machine vision trade group, with over 300 member companies from 26 countries.

The study found that the North American economy has indeed had an impact on both U.S. and Canadian manufacturing sectors, with most economists predicting a continued slowdown in the economy for the U.S. throughout 2008, which could result in a decrease in purchases of machine vision products.

Overall, sales results were mixed for 2007; while smart cameras and ASMV system sales were up over 2006, total component sales were down from the previous year. Smart cameras experienced sales of $116.6 million.

“Particularly in these challenging times, where the margin for error in decision-making is very thin, machine vision companies need to base their product-development and sales strategies on the most accurate view of the marketplace possible,” said Paul Kellett, AIA’s Director of Market Analysis. “AIA has prepared its latest market study with this need foremost in mind. To satisfy this need, the study specifically analyzes sales by product feature, identifying the best-selling feature configurations by product market and key trends that suggest the direction of evolving customer preferences. It also investigates sales opportunities in new geographic markets.”

To order the study, visit www.MachineVisionOnline.org.


9. INDUSTRY NEWS:

Research indicates growth for CAD market through to 2012

The CAD industry has been undergoing a remarkable renaissance over the last five years as a result of several factors, according to Jon Peddie Research’s 2008 CAD Report. Among those factors are hardware advances that put 64-bit, multi-core computers into the mainstream. In addition, there is broadening acceptance of 3D techniques. And finally, the marriage of CAD visualization with information management helps redefine the CAD industry and extend its relevance throughout the enterprise. In an industry known for a conservative rate of change, there is a significant shift taking place as smaller businesses are investing in new technologies to improve their processes and efficiency.

According to JPR’s research, CAD software vendors saw combined revenues of $5,234.95 million in 2007. The CAD software market increased an astounding 20 per cent in 2007 compared to 2006 when revenues reached $4,362.45 million. The trend will continue through 2008 in spite of challenges in the U.S. economy that could ripple through worldwide economies says the report and strong growth continues in the emerging economies that will than offset contractions in the west.

The report predicts the 2008 CAD market will grow to $6,024.55 million, an increase of 15 per cent. This is slightly down from our earlier prediction of 18 per cent growth as we see some vendors facing decreased sales primarily in the architectural fields. In all, however, the CAD industry is growing and will continue to grow through 2012 with a CAGR of 11 per cent.

In 2007 the worldwide installed base of CAD users reached 5.31 million, a 20% increase over 2006 when the number of CAD users was 4.42 million.

In 2007, according to Jon Peddie Research, the majority of CAD users, 63 per cent, are still working in 2D, and 37 per cent work in 3D. However revenues for 3D CAD programs are higher. In all revenues for 3D CAD accounted for 53 per of the market. This highlights a shift as comparatively fewer users account for a larger share of the revenue. This trend will continue says the report.

The 2008 CAD Report looks at the CAD market. It includes information on worldwide CAD software revenues, market share, and a information about the user base. The market looks at the industry from the two major subsets of Mechanical/Manufacturing and AEC (Architecture, Electrical, and Construction). The report also looks at major trends in the industry including the transition to advanced hardware, the approaches to multiCAD, and the addition of visualization to the repertoire of CAD companies’ capabilities.

For more information, visit www.jonpeddie.com.


8. CALENDAR OF EVENTS

Health & Safety Canada 2008 IAPA Conference & Trade Show
April 21-23, 2008 Toronto, ON
Visit: www.iapa.ca

AMPA Annual Conference and Exhibition
April 30-May 1, 2008 Hamilton, ON
Visit: www.apma.ca

BC Industrial Expo
April 30-May 1, 2008 Abbotsford, BC
Visit: www.bcindustrialexpo.ca

2008 World Quality Conference
May 5-7, Houston, TX
Visit: www.asq.org

Ontario Centres of Excellence - Discovery 08
May 12-13, Metro Toronto Convention Centre
Visit: www.ocediscovery.com

Montreal Manufacturing Technology Show
May 12-14, 2008, Montreal, QC
Visit: www.smecanada.ca/montreal/facts.asp

Canadian Conference on Intelligent Systems
May 27-30, 2008 Windsor, ON
Visit: www.aigicrvis.ca

National Manufacturing Week
September 23-25, 2008 Toronto, ON
Visit: www.smecanada.ca

MainTrain West
September 25-26, 2008 Edmonton, AB
Visit: www.maintrain.ca

AME International Lean Conference
October 21-23, 2008 Toronto, ON
Visit: www.ameconference.org

MainTrain
November 24-26, 2008 Toronto, ON
Visit: www.maintrain.ca



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