Advanced Manufacturing 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."

Who would have thought sky-high oil prices might have a positive effect on manufacturing?

Recent reports from the U.S. suggest that some manufacturers are bringing some production and sourcing home, with a closely related effect being that some near-shoring to Canada may occur.

Near-shoring refers to sourcing or manufacturing from a foreign country that is relatively close in distance and time to the U.S. such as Canada or Mexico. Currently, according to a recent survey of manufacturing executives by AMR Research Inc., 68 per cent near-shore manufacturing in Mexico, followed by 49 per cent in Canada.

The survey found that companies are looking to build a balanced portfolio for sourcing and manufacturing. The scenario for manufacturers trying to stave off higher operations costs overseas is an increase in U.S. capacity or more near-shoring to Mexico and Canada. What’s happening is not so much closing plants in China; it’s more that companies are putting in additional volume, whether it is in the U.S. or Mexico or Canada.

Reasons for near-shoring include: increase in cost competitiveness compared to traditional low cost countries such as China; better trade incentives; less supply chain risk due to proximity to market; less transportation risk; more control over environmental compliance; and more flexibility to respond to changes in supply chain.

The AMR survey showed that 21 per cent of U.S. manufacturers planned to increase manufacturing activities in the United States over the next year, while another 21 per cent expect to increase near-shore production. (64 per cent of the companies in the survey had more than $5 billion in revenue.)

For some U.S. manufacturers it makes sense to source back in the U.S. or nearby where the cost of offshoring outweighs the higher cost of labour that exists in the U.S. and Canada, which is why some companies are considering similar sourcing models, according to a recent survey by MFG.com.

Out of more than 500 responses, 40 per cent say the current value of the U.S. dollar has an effect on where they choose to source their business. Nearly half of the survey participants say they are already sourcing more business in the U.S. They also indicated that they’re sourcing closer to home in either Mexico or Canada. In the AMR survey, 30 per cent of those responding say they plan to increase their near-shore sourcing activities through next year.

While it may be too early to tell whether this trend will continue and what, if any, effect it might have on Canadian manufacturing, the situation deserves to be closely monitored.

The Society of Manufacturing Engineers (SME) announced that Canadian Auto Workers Union President Buzz Hargrove will deliver a keynote address on Tuesday, September 23, at the International Centre in Mississauga, Ont.

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3. INDUSTRY EVENTS:

Annual gathering discusses the future of technology education

The 46th annual Advanced Technology Think Tank (ATTT), held at Chippawa Cottage Resort in Barry's Bay, Ont., focused on where industry is expected to be in the very near future and the need for educational programs to get young people interested in science, technology, manufacturing, and the processes of developing inventions.

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More than 31,856 people from 101 countries attended the biennial AUTOMATICA trade event in Germany, which took place June 10-13 at the New Munich Trade Fair Centre.

Technological exhibition brings productivity solutions and systems to Canadian manufacturers Siemens Canada Limited is proud to announce the arrival of exiderdome, a two-storey exhibit constructed from 55 containers that transform into a must-see exposition of technological innovation.

Bosch, a leading global supplier of technology and services, announced it has become a member of the Chicago Climate Exchange (CCX), the world's first and North America's only voluntary, legally binding greenhouse gas emissions reduction, registry and trading program.

The Canadian Energy Efficiency Alliance (CEEA) released their National Energy Efficiency Report Card and analysis of the federal, provincial and territorial governments.

North American robotics companies reported that new orders sold to North American manufacturers fell 17 per cent in the first quarter of 2008 from the same quarter in 2007, but revenue rose five per cent.

The editors and publishers of Energy Management, Green Business and PEM Plant Engineering and Maintenance magazines and Canada's largest manufacturing consortium, Excellence in Manufacturing Consortium (EMC) have joined forces to create Canada's leading energy management & efficiency conference and exhibition.

Natural Resources Canada (NRCan) has announced that three Canadian universities have been selected to participate in ''EcoCAR: The NeXt Challenge,'' a vehicle engineering competition set to begin in Fall 2008.

The 2008 ISA Honors & Awards recipients were announced and will received their awards at a dinner that will be held in conjunction with ISA EXPO, which will take place at The Westin Galleria, Houston, Texas, October 13.

Siemens Canada's exiderdome Tour
August 25-29 Toronto
September 8-12 Montreal
September 23-24 Quebec City
October 6-7 Halifax
Visit: www.exiderdome.ca

International Manufacturing Technology Show (IMTS)
September 8-13, 2008 Chicago, IL
Visit: www.imts.com

ENEX08
September 23-24, 2008 Mississauga, ON
Visit: www.energyexcellence.ca

Canadian Manufacturing Week co-located with Weld Expo Canada
Sept. 23-25, 2008 Toronto, ON
Visit: www.smecanada.ca

MainTrain
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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