Machine Tool Demand Increases

Any feel for why? Did imports climb with the fall in the value of the dollar?

Unka' George [George McDuffee]

------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).

India and China/Asia need equipment.

American made machine tools have been a better and better value to foriegn purchasers for the last eight calendar years. I'd be willing to bet without even looking at the numbers that two thirds or three quarters of the increase in sales is going oversees. The rest of the increase is probably price inflation that has been pent up for the last three years, replacements for existing machines and new sales to companies that are bringing out sourced parts in house.

Unka George:

The article further states:

============================================================================== "The March consumption numbers, as well as the first quarter as a whole, clearly demonstrate that the investment incentive stimulus package along with the weak dollar are helping metalworking manufacturing to counteract the weaknesses in the other sectors of the economy," said AMTDA President Peter Borden in a statement.

Demand for machine tools soared throughout the country in March. In the Midwest, demand grew 201.9 percent, while demand increased 67.8 percent in the South and 64.3 percent in the West.

Demand also rose 57.3 percent in the Northeast and 21.9 percent in the Central United States. ==============================================================================

A personal anecdote, we're got a lot of work right now and it seems we are likely to be busy for the rest of the year.

John:

He is some info I saw the other day that I thought was interesting:

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At the ongoing 5th China CNC Machine Tool Fair (CCMT 2008) it was announced that in 2007, China's annual output of CNC metal-cutting machine tools reached 123,000 units ? three years ahead of the production goal to manufacture 10,000 annually set by the "11th Five-year Plan." This makes China the largest annual producer of CNC machine tools in the world.

According to the China Machine Tool & Tool Builders' Association (CMTBA), from 2001 to 2007, China has manufactured a total of 2,740,000 metal-cutting machine tools, 400,000 of which are CNC metal-cutting machine tools. The output during the last seven years is four times more than that made during the 15 years prior to the year 2000.

The market share for China-made CNC machine tools has risen to 48% in

Interesting. American machine tool builders, the ones that are left, have a real opportunity to make sales in the emerging markets like this. HAAS is an example of a succesfully implimented strategy to grow on exported sales. I think they only actually make one machine of their entire line in the PRC. That might well change but apparently they can bring their US built product to that market at a better price.

BottleBob wrote in news:c-GdnQaPpdIyCK3VnZ2dnUVZ snipped-for-privacy@earthlink.com:

i don't know about the investment incentive. It doesn't hurt but I've never thought that it would influence someone to buy a machine tool who didn't already have a need for one. It might encourage an upgrade of older equipment, but again, if the underlying business is weak, the purchase ain't gonna happen.

We've been selling at a record pace all year. March will prove to be a particularly strong month industry wide because it's the end of the Japanese fiscal year. So Japanese machine tool buiilders were out in force trying to close orders by the end of the month. April was just as strong for us but I don't think that will prove to be the case for everyone else. Swiss remains insanely busy with orders for multiple units being the rule rather than the exception.

The weak dollar is helping manufacturers and the economy isn't nearly as weak as the TeeVee news and politicians running for president would have you believe. If automotive wasn't down we would be well and truly screwed. There would be no way we could add the people we would need to keep up with current demand plus strog automotive orders.

Speaking of people, that is quickly becoming the choke point for manufacturing. I know of eight openings for experienced CNC Swiss machinists in southern Wisconsin alone. All at very good companies. I know of dozens and dozens of openings elsewhere.

Someone recently called me and told me about a place willing to pay $140k/yr for someone who can run a high end Swiss shop. That's damn decent money IMO.

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem of is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA

Jon Banquer San Diego, CA

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem of is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA

Jon,

Your normal revisionist statement. I said I never had a hard time finding and hiring machinists in San Diego and I NEVER HAVE.

I said it is more likely the people "YOU WERE LISTENING TO" were complaining they couldn't find machinists to work for operator wages.

"YOU SAID" they were paying $18-$20 per hour. So I ASKED you what "YOU" felt the going wage for Journeyman machinists in San Diego is, YOU STILL Haven't answered Jon!

So JON, one more time. What do "YOU" feel is the going pay rate for Journeyman Machinists in San Diego?

Tom

Jon,

Your normal revisionist statement. I said I never had a hard time finding and hiring machinists in San Diego and I NEVER HAVE. Unlike you I have actually hired machinists in San Diego, you never have.

I said it is more likely the people "YOU WERE LISTENING TO" were complaining they couldn't find machinists to work for operator wages.

"YOU SAID" they were paying $18-$20 per hour. So I ASKED you what "YOU" felt the going wage for Journeyman machinists in San Diego is, YOU STILL Haven't answered Jon!

So JON, one more time. What do "YOU" feel is the going pay rate for Journeyman Machinists in San Diego?

Tom

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem of is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA

Jon,

Your normal revisionist statement. I said I never had a hard time finding and hiring machinists in San Diego and I NEVER HAVE. I have hired machinists in San Diego, YOU have not.

I said it is more likely the people "YOU WERE LISTENING TO" were complaining they couldn't find machinists to work for operator wages.

"YOU SAID" they were paying $18-$20 per hour. So I ASKED you what "YOU" felt the going wage for Journeyman machinists in San Diego is, YOU STILL Haven't answered Jon!

So JON, one more time. What do "YOU" feel is the going pay rate for Journeyman Machinists in San Diego?

Tom

Just answer the simple question, lunatic. What is the going rate for a journeyman machinist in San Diego?

I know two or three different first class managers/programmers that I could hire tomorrow if I really had a need for them. I'd just have to give them $80-90K a year.

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA

So Jon, What do you feel is the going rate for a Journeyman Machinist in San Diego?

Tom

Jon,

And speaking of lying, you never answered this question as well:

What does your engineering department doing while you say you are busy trying to figure out customer design intent before you start arbitrarily hacking and whacking customer supplied models?

Tom

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA

I have said this was the case in San Diego, CA and a worthless, lying, ignorant piece of shit named Tom Brewer, who doesn't even live here, denied it. The problem is going to get worse.

If you want more Swiss machinists suggest your industry setup training programs specifically to learn Swiss machining and start trainee=92s off at a decent wage.

I can't figure out why Matt S. is not busy as hell.

Jon Banquer San Diego, CA