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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
April 2008
Volume 7, Issue 4
Today's e-newsletter is sponsored by:
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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
Today's e-newsletter is sponsored by:
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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