In Machine Tools. Now the Lean Years

by:Gewinn     2020-06-07
Robert Walker set
1970 this is a digital version of an article from The Times Print Archive, before it starts online in 1996.
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A successful machine tool manufacturer needs the nerve of a stable bomb handling team.
They have experienced a recession before, and now they are doing it again. Sales are expected to drop 1970 from last year, down from record business in 1967.
Their understanding of the cyclical nature of the industry does not mean that they welcome the recession they know they have to go through --
Without panic-stricken cost cuts
At least for the next two or three quarters.
On the one hand, these manufacturers have to go through not only bad times but also good ones, but also continue to spend on competitive research and development.
Tearing the naval barrel of World War II to a machine tool that looks miraculously good tolerance in 1945 looks like a stone axe next to today\'s equipment.
An operator can tell a computer in Cincinnati to instruct a Detroit automatic cutting tool to adjust itself in the next batch of engine parts it will manufacture to accommodate a slightly harder steel grade.
Henry D: \"You can keep your income growing in the business cycle and look very smart for a while, just fire almost everyone . \"Sharpe Jr.
Observed last week.
Brown, maker of machine tools in Rhode Island, and Mr. Sharp, president of Sharp Manufacturing, added, \"but yoti did not sell, service or research capabilities when the next upturn arrived-
That\'s why the management of the industry has to be evaluated on the basis of decades of performance and long-term profit growth.
\"A minority in the advertising industry has been saying recently --
Especially Wall Street equity analysts.
Prosperity and famine in this industry are disappearing.
In the rebuttal, most of the focus of 350 US machine tools is only on current shipments and new orders, and they acknowledge that some diverse concerns may be exceptions, such as the largest company in the industry, cin cinnati Kelon. —
Original cinnati Milling Machine Company.
But this is only because products other than machine tools have formed more than a quarter of dollars.
Most industries are cyclical because of its products.
Machine used to make basic and general separation of almost all other machines
It can only be sold to industrial customers who plan or build or expand production lines.
By definition, machine tools are hardly consumer goods.
For example, although the heavier version of the same thing, the hand-held drilling machine in the base workshop is not qualified;
Fixed by bolts on the floor of the metal processing plant, it does meet the definition.
In fact, the value of the new orders announced by the National Machine Tool Manufacturers Association in Washington every month is an indicator of the future capital expenditure of the US industry that is eagerly awaited and closely watched.
Investment budget in the final phase of redistribution
This is what most Americans desperately want today.
The industrial sector is under pressure to reduce consumer spending, and capital investment budgets are also being cut.
The first signal of this kind of enterprise tightening the belt is in the new order of Chinese tools --
The first half of the year was US dollars, down 48 percentage points from the figure of just over US $1 in the first six months of 1969.
Because the time difference between order and delivery is usually between three and nine months
Machine tool manufacturers can already see a disappointing sales year.
Volume is expected to be about $1.
For the full year of 1970, it was $0. 4 billion, below $1.
6 billion last year.
So as the industry competes with about 100,000 executives and professional buyers at the 1970 machine tool exhibition, sched is from Sept. 21 through Oct.
In Chicago, unlike the last show in 1965, it was frustrating.
Five years ago, the advertising industry boomed and plunged it into the biggest boom in history.
In the four years from 1965 to 1968, its sales will exceed $6.
0. 5 billion worth of machine tools.
At the beginning of this boom, foreign instruments may account for the US market, but when the boom ends, they account for about the amount of dollars.
It is a difficult task to fully demonstrate the Chinese Tools. since World War II, American activities have only been held every five years.
They also rule out all products except those made in the US, but both policies have changed.
Washington-based trade group, National Association of machine tool manufacturers, announced that an exhibition will be held in 1972 and will be held every two years thereafter, welcoming exhibitors from all countries, even though this decision will bring tough problems in logistics and accommodation.
The exhibition, which will begin in Chicago next week, will work with 1970 production engineer ing show, and in addition to machine tools, potential customers will see almost all types of industrial equipment
Computer, conveyor, Crane, safety goggles, fixed telephone system, pulley, clutch, gear and pump.
The production works show will fill the Navy Pier, while the machine bed show will test the capacity of the International Amphitheater.
The latter event alone will occupy more than 12 acres of ground space and will show about $2,000 worth of machine tools, nearly half of which are first shown.
It will attract delegates from almost all major manufacturing companies in the United States and most other developed countries, as well as observers from most branches of domestic and foreign governments.
Given the size of this anticipated population, these programs will not be open to the public.
For the first time in the United States, the Export Import Bank will have an office on site ready to process export financing applications on the spot, or at least, before foreign buyers leave Chicago at the end of the show.
Just like the hottest topic at the 1965 show is to automatically operate machine tools with perforated tape --
Called \"digital control\"
The slogan of this year\'s exhibition is expected to be \"direct numerical control \".
\"It\'s a complicated problem, but in a broad sense these techniques have made the perforated tape obsolete.
The advertising computer does not need to be in the same metal processing plant as the machine tool, or even in the same country, it can adjust and modify the instructions to one or more automation tools.
These developments have led to an active market for small computers and related control devices, one of several product categories diverse by Cincinnati Mila cron.
\"Business is tough, but it used to be tough,\" an industry veteran said last week . \".
\"But the show will prove once again that the long-term future is good.
\"The only real concern we have is whether Chicago can handle 100,000 expensive account people who are already used to the best food and service and will immediately want it.
\"A version of this file was printed on the F1 page of The New York edition on September 13, 1970, with the title: in the machine tool.
It\'s lean years now.
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