Industry Watch 20241

ENGEL TO BUILD LARGE-MACHINE PLANT IN CHINA
Continuing a strategy consistent with being a unified worldwide molding systems supplier, Engel says it will build a new factory for large molding machines in China by the end of 2005. The new plant will complement Engel’s Korean factory for small and medium machines, which parallels what the company has done in Europe and North America.

Peter Neumann, CEO of parent company Engel Holding, says Engel is locating the new plant in China to be near that country’s burgeoning automotive business, with its associated demand for larger presses. The exact location in China was not settled at the end of May, but Neumann confirmed it will be a greenfield project.

Engel also announced that it will open a technology center in Italy, similar to one it opened two years ago in Germany.

On the sales side, the company recently sold its largest machine to date in North America—a 4400-ton, two-barreled, two-platen press. It was shipped to an unidentified Tier One auto molder for producing bumper fascia.

U.S. MOLDMAKERS ARE OPTIMISTIC
Of the 120-plus member companies responding to the spring 2004 online survey conducted by the American Mold Builders Assn. (Roselle, IL), 11% reported "excellent" business conditions. Another 75% reported either "good" or "fair" conditions. All the numbers reportedly are higher than the association’s winter 2004 survey. AMBA has about 350 member companies nationwide.

Most respondents, 45%, expect business to remain the same over the next quarter, although those anticipating an increase in business came in at 44%, up slightly from 41% in the winter survey.

A major surprise was that none—repeat, none—of the respondents expects business to decrease substantially, as they have in similar surveys over the past three years. When comparing current business activity with that of the previous three months, 45% say quoting is up; 40% say shipments are up. Backlog is up for 35%.

Now for the bad news.

Only 25% of survey respondents report an uptick in profits and only 26%

say employment has increased—56% say hiring is static. Pricing pressures are driving profits down for 32% and backlog is down for 32%. The last number can be expected, since lead times have been whacked by several factors, such as high-speed machining and concurrent engineering.

In other news, shop employees put in an average of 47 workweek hours; design engineers put in 46 hours, according to survey results. The average number of shop employees is 25—design and engineering employees average out at five.

PRESS SHIPMENTS DOWN, REVENUE STEADY
Guess what? Shipments of injection molding machines were down last year. According to the SPI’s Committee on Equipment Statistics’ full-year 2003 report, a total of 3290 units shipped, totaling $688.5 million—a 7% decrease in units vs. the 3537 units shipped in 2002. There was some good news, though. "Surprisingly, there was virtually no change in shipment dollars as 2002 also totaled approximately $688.5 million," the report says.

HUSKY BOSTON OPENS ITS HOUSE TO IMLInmold labeling was a hot topic in Westford, MA this spring at the Husky Boston Technical Center’s open house. IML is one of the differentiating, innovative technologies that Husky Boston’s regional manager, Scott Kroeger, says North America molders must adopt to adapt to the new norm.

"The global economy has altered the landscape of injection molding as we know it," Kroeger says. "Molders in New England have been pioneers in molding. We need to build on that here and inspire the industry in North America to specialize and diversify."

Husky gathered an inspirational group of Yankees to treat attendees to presentations on what the new norm is and how they can better use factory planning, automation, and lean business strategies to hook customers and reel them in.

Speakers included Brian Jones, CEO of Nypro Inc. (Clinton, MA), and Jack Avery, manager of operational assets at GE Plastics (Pittsfield, MA), from whom IMM has pinched the "new norm" phrase.

Paul Gelardi, president of E Media (Kennebunk, ME), also spoke. Gelardi’s company is the exclusive U.S. sales and service agent for automated systems supplier Hekuma GmbH (Eching, Germany). Husky has entered into a strategic alliance with Hekuma to supply turnkey IML systems.

"Molding competence alone is no longer enough," Gelardi says. "Molders must take on a single-source responsibility for producing more complex parts with more sophisticated processes. Automation helps to reduce variability."

SHORT SHOTS

WEB-EXCLUSIVE SHORT SHOT
Resin Technology Inc. (RTi), a resin consultancy based in Fort Worth, TX, recently added a new group to advise processors how to reduce the cost of color concentrate. Sam Beasley—a veteran of PolyOne, M.A. Hanna Color, and PMS Consolidated—will be the managing partner for this division. The company says it has reduced color additive costs 10% to 30% for its clients. For more information, check www.resinpros.com.—MM