EuroBLECH Bulletin
Issue 9
May 2010

News from the Organisers

EuroBLECH 2010 – Visitor brochure now available

Marketing and Press Services for Exhibitors

BLECH Events 2011: Stand reservation for BLECH India and BLECH Russia 2011 has started

News from the Industry

Trumpf: The new generation of the TruLaser Cell Series 1100

AP&T: New furnace concept offers more effective press hardening

Positive outlook for major domestic appliances

Eurofer opposes considerable price increases for steel

Small but weighty - new trends in the vehicle market

Not enough welders in the UK

ISSF: Stainless production drops in 2009, but results better than expected

Technologies

Remote laser fine blanking

Magnetic sheet divider also works with oil film

Markets

Inshoring, backshoring or offshoring - where should I put my production plant?

BLECH Russia

BLECH India

EuroBLECH

News from the Organisers

EuroBLECH 2010 – Visitor brochure now available


Comprehensive information for visitors planning their trip to EuroBLECH 2010 in Hanover, Germany is now available. A visitor leaflet in 12 languages can be ordered for free via the show website. The brochure includes the key details, a site map, the show profile as well as useful travel information.
Read more »


Marketing and Press Services for Exhibitors


Exhibitors at EuroBLECH 2010 have access to a wide range of marketing and press services in order to make the most of their participation at the show. Information about promotional material, marketing packages, the on-site press services and the Show Preview will be sent to exhibitors at the end of May. The organisers, once again, execute a world-wide trade visitor campaign...
Read more »


BLECH Events 2011: Stand reservation for BLECH India and BLECH Russia 2011 has started


After its successful launch in November 2009, the dates for the second BLECH India, trade exhibition for sheet metal working, have now been published: BLECH India 2011 will take place from 14-17 April 2011 at the Bombay Exhibition Centre in Mumbai. The next BLECH Russia will take place from 15-17 March 2011...
Read more »


News from the Industry

Trumpf: The new generation of the TruLaser Cell Series 1100


Trumpf: The new generation of the TruLaser Cell Series 1100 is easy to integrate into existing production lines and can be configured individually, by using either a CO2 or solid state laser. The TruLaser Cell 1100 is particularly suited for continuous welding of tubes, profiles and coils.
Read more »


AP&T: New furnace concept offers more effective press hardening


In co-operation with furnace manufacturer Schwartz, AP&T has developed the new Feeder Furnace concept which offers quicker heating, greater availability and a smaller footprint, as well as consuming less energy than conventional furnaces.
Read more »


Positive outlook for major domestic appliances

Whilst for 2009, the German market research company GfK Retail and Technology estimates a fall of around 8% in world-wide turnover, the drop in sales in the US was around 12%. Globally, the picture was however quite varied, ...
Read more »


Eurofer opposes considerable price increases for steel

In an official notice to the European Commission, the European Confederation of Iron and Steel Industries complains about the dramatic in iron ore prices.
Read more »


Small but weighty - new trends in the vehicle market

According to the British consultancy firm Network Automotive Management, the car industry now seems ready to bid farewell to its concept that the prestige of any car depends solely on its size.
Read more »


Not enough welders in the UK

According to the information given in the online news service "manufacturingtalk", The Welding Institute (TWI) notes a general shortage of skilled welders, especially multi process pipe welding experts.
Read more »


ISSF: Stainless production drops in 2009, but results better than expected

The International Stainless Steel Forum (ISSF) has released preliminary stainless crude steel production figures which show that 24.6 million metric tons (mmt) of stainless was produced during 2009. This is a decline of 5.2% on 2008.
Read more »


Technologies

Remote laser fine blanking


The Fraunhofer Institute for Laser Technology ILT in Aachen, Germany, has developed a remote laser cutting concept with highly brilliant beam sources which can be used for cutting, welding, structuring and marking of thin sheet metal.
Read more »


Magnetic sheet divider also works with oil film


Goudsmit Magnetics, a Dutch producer of magnetic materials handling equipment, has introduced a new magnetic sheet divider, highlighting that this unit is able to separate steel sheets and blanks of almost any size or shape, including round and asymmetrical.
Read more »


Markets

Inshoring, backshoring or offshoring - where should I put my production plant?

Only a few years ago when manufacturing companies were weighing up where to locate their production, the motto was usually "Go east", and it seemed that the further east one went, the better the chances for profitable production.
Read more »


BLECH Russia

BLECH India

EuroBLECH

News from the Organisers

EuroBLECH 2010 – Visitor brochure now available

Comprehensive information for visitors planning their trip to EuroBLECH 2010 in Hanover, Germany is now available. A visitor leaflet in 12 languages can be ordered for free via the show website. The brochure includes the key details, a site map, the show profile as well as useful travel information.

With its motto “Time for Innovation”, this year’s EuroBLECH will focus on cutting-edge technologies and sophisticated solutions. From 26-30 October 2010 the exhibiting companies will present a wide variety of machines, systems, tools and materials in halls 11,12,13,14,15,16 and 27 at the Hanover exhibition grounds. Innovative solutions for the future of sheet metal working and live demonstrations of new machines and systems will be, once again, a major focus of the show. Research institutions complement the event by providing the necessary foundations for technological development. Here, the ongoing research projects are about new materials and innovative, environmentally sustainable fabrication processes.

Five months ahead of the show, 1250 exhibitors from 40 countries have already booked their stands at the world’s largest trade exhibition for sheet metal working. Companies interested in exhibiting should contact the organisers as soon as possible, to ensure that they can still be placed in the relevant industry sector.

http://www.euroblech.com


Marketing and Press Services for Exhibitors

Exhibitors at EuroBLECH 2010 have access to a wide range of marketing and press services in order to make the most of their participation at the show. Information about promotional material, marketing packages, the on-site press services and the Show Preview will be sent to exhibitors at the end of May.

The organisers, once again, execute a world-wide trade visitor campaign for EuroBLECH 2010. The campaign includes, for example, information/press events in selected target markets, a global advertising campaign, printed and online information for visitors and media representatives in twelve languages as well as travel packages from all parts of the world. EuroBLECH is famous for its high level of international trade visitors. A total of 69,400 visitors from 98 countries attended the previous show.


BLECH Events 2011: Stand reservation for BLECH India and BLECH Russia 2011 has started

After its successful launch in November 2009, the dates for the second BLECH India, trade exhibition for sheet metal working, have now been published: BLECH India 2011 will take place from 14-17 April 2011 at the Bombay Exhibition Centre in Mumbai. Companies interested in exhibiting will find extensive information on the new show website: Key exhibitor information as well as photos and facts about the previous show, featuring 50 exhibitors from 8 countries and 3,600 trade visitors. The new exhibitor brochure can also be ordered via the website.

BLECH Russia 2011, which will take place from 15-17 March 2011 at the Lenexpo exhibition centre in St. Peterburg, also has a new website with information and important facts for companies interested in the complex growth market of Russia. Here, the stand booking has already started, and a large number of exhibitors at the previous show have already reserved their stand space again. At BLECH Russia 2009, 170 companies from 20 countries had presented their products and services to an audience of 3,500 trade visitors.

http://www.blechindia.com
http://www.blechrussia.com


News from the Industry

Trumpf: The new generation of the TruLaser Cell Series 1100

Trumpf: The new generation of the TruLaser Cell Series 1100 is easy to integrate into existing production lines and can be configured individually, by using either a CO2 or solid state laser. With enhanced user friendliness thanks to controlled axes, combined with the integrated user interface for lasers and machine control, the TruLaser Cell 1100 is particularly suited for continuous welding of tubes, profiles and coils. The TruLaser Cell Series 1100 comes with universal beam guidance and can also be used in mobile applications.

Photo: The new TruLaser Cell Series 1100


AP&T: New furnace concept offers more effective press hardening

In co-operation with furnace manufacturer Schwartz, AP&T has developed the new Feeder Furnace concept which offers quicker heating, greater availability and a smaller footprint, as well as consuming less energy than conventional furnaces. Instead of transporting blanks on a roller conveyor through a long furnace, it is possible to use several furnace modules with separate compartments that are stacked on top of one another and allow the blank to rest in the furnace. Being able to stack several furnace modules means Feeder Furnace is very space-saving and only takes up a quarter of the floor space of a conventional furnace with the same capacity (see graph). Feeder Furnace is also scalable, which means press hardening production can be started on a smaller scale without needing to invest in a furnace for larger production volumes.

Graph: AP&T's new furnace concept

http://www.aptgroup.com
http://www.schwartz-wba.de


Positive outlook for major domestic appliances

Whilst for 2009, the German market research company GfK Retail and Technology estimates a fall of around 8% in worldwide turnover, the drop in sales in the US was around 12%. Globally, the picture was however quite varied, ranging from 27% in the Ukraine to +30% in Brazil. Currently, Eastern Europe, the Middle East, South Africa, the USA, the UK, Ireland and Spain are still considered weak MDA markets. GfK notes that, quite unlike in previous declines, most end users opted for up market products with innovative features and that mid term MDA markets remain highly attractive, as the replacement cycle in developed countries creates relatively stable conditions. Also, in some developing markets, penetration rates are still quite low, and initial purchases will drive these markets over many years.

http://www.gfk.de


Eurofer opposes considerable price increases for steel

In an official notice to the European Commission, the European Confederation of Iron and Steel Industries complains about the dramatic increase in iron ore prices. The Association claims that price increases of 80-100% do not reflect the realities of the steel market and cannot be justified by the current demand for iron ore. "That is why we are calling upon the Commission, as regulator, to examine closely what is happening among iron ore suppliers", Eurofer said in its letter.

http://www.eurofer.com


Small but weighty - new trends in the vehicle market

According to the British consultancy firm Network Automotive Management, the car industry now seems ready to bid farewell to its concept that the prestige of any car depends solely on its size. Current examples that back this theory are the new Audi A1, the Aston Martin Cygnet and the Citroën DS3. "These little hatchbacks cost around 40% more than a comparable standard vehicle." Network Automotive anticipates that customers will accept this mark-up if the little luxury cars convey the values symbolised by their respective manufacturers.

http://www.networkauto.co.uk


Not enough welders in the UK

According to the information given in the online news service "manufacturingtalk", The Welding Institute (TWI) notes a general shortage of skilled welders, especially multi process pipe welding experts. TWI highlights a general shortage of skilled welders, since the numbers leaving the job market are not being replaced by enough newly trained staff. In view of the planned new power stations, Olympic stadiums and other infrastructure developments, as well as new shipbuilding projects, the loss during the next 10 years of half the skilled British welding workforce is expected to have serious implications for the UK economy.

http://www.twi.co.uk


ISSF: Stainless production drops in 2009, but results better than expected

The International Stainless Steel Forum (ISSF) has released preliminary stainless crude steel production figures which show that 24.6 million metric tons (mmt) of stainless was produced during 2009. This is a decline of 5.2% on 2008. However, the decrease was not even around the world, with some regions reporting that production declined by up to 30% (Central/Eastern Europe), while in other areas stainless production increased by up to 27% (China). According to the ISSF this result probably reflects the uneven nature of the global economic downturn and subsequent recovery, which has seen some countries and regions affected more than others.

http://www.worldstainless.org


Technologies

Remote laser fine blanking

The Fraunhofer Institute for Laser Technology ILT in Aachen, Germany, has developed a remote laser cutting concept with highly brilliant beam sources which can be used for cutting, welding, structuring and marking of thin sheet metal. In a demonstration unit, the system can for instance be used to cut 0.2 mm thick steel sheets in seconds. Fitted with a 1 kW single mode fibre laser and a mirror scanner, the unit can machine components in the millimeter range at cycle times of less than 100 ms. This short processing time is achieved by dispensing with mechanical movement axes. Beam movement is performed by mirrors mounted on highly dynamic galvanometer drives. Cuts of 20 μm are achieved with suitable optical systems, so that precision parts, such stator sheets for electric motors, can be processed rapidly and accurately. Fine blanking with remote laser is particularly suited to the production of prototypes and small series, because it offers much greater flexibility and freedom with regard to component geometry than conventional methods such as milling or punching. Unlike conventional punching processes, a laser system is instantly available, dispensing with long set-up times and tool modifications, reducing development times and enhancing process flexibility whilst helping to cut costs.

Photo: Remote laser cutting (left) and Lead frame produced by remote laser cutting

http://www.ilt.fraunhofer.de


Magnetic sheet divider also works with oil film

Goudsmit Magnetics, a Dutch producer of magnetic materials handling equipment, has introduced a new magnetic sheet divider, highlighting that this unit is able to separate steel sheets and blanks of almost any size or shape, including round and asymmetrical. The system is equipped with powerful and long-lasting Neoflux7 magnets and can be switched on and off pneumatically. Thanks to the recently developed neodymium iron boron sheet dividers, the sheets can be separated even if they are covered by an oil film, which means that a robot can lift them from the stack one by one. This reliably eliminates downtimes and machine damage. The unit can be switched off and opened pneumatically for maintenance or reloading the sheet stack.

Photo: Goudsmit Magnetics

http://www.goudsmit-magnetics.nl


Markets

Inshoring, backshoring or offshoring - where should I put my production plant?

Only a few years ago when manufacturing companies were weighing up where to locate their production, the motto was usually "Go east", and it seemed that the further east one went, the better the chances for profitable production. However, after surviving a financial crisis, at least to some extent, positions are being reconsidered - and sometimes the results are surprising.

A study published by the British manufacturers' organisation EEF in conjunction with the consultancy firm BDO, for example, already came to the conclusion back in late 2009 that several British manufacturers were shifting their production back to the UK. Important reasons cited for this move were lower-than-expected savings, concerns about production quality, delays in getting goods to market and higher transport costs. What also played a role in this development, according to EEF, was the fact that the UK has become increasingly competitive and efficient over recent years.

"If producers with low labour costs can't provide what they need when they need it, then the alternative is to produce in-house and bring production back to the UK, which some are clearly doing," the EEF's chief economist Lee Hopley told the BBC. Of the 300 companies surveyed, 70% regarded the United Kingdom as competitive - in 2007 the figure was just 43%. The current exchange rate of the British pound also plays a major role in the rediscovery of manufacturing potential in the UK, because it means that production there can be profitable once again.

It is, however, not just British companies who are revising their location concepts. In Germany, as far back as 2004, the Confederation of German Trade Unions (DGB) quoted a statistic from the Karlsruhe-based Fraunhofer-Institut für Systemtechnik und Innovationsforschung (ISI), which stated that in many cases shifting jobs abroad did not make sense from an economic point of view. According to the report, one in three of the companies who had moving their production abroad would revoke this decision. The risk of failure was particularly high if the move had been made for cost reasons. Companies returning home also regretted that they had paid too little attention to criteria such as flexibility and quality.

Similar trends are also visible in the USA, where new terms like 'nearshoring' and 'backshoring' have arisen. Area Development Online (Halcyon Business Publications), a location planning portal, reported that China's advantage has diminished. And whilst previously 30%-50% savings could be realised on production costs, the question now was whether the same cannot be achieved somewhat closer to home. As a production location China has now slipped to third place for the US market, behind India and the new number one - Mexico. Better responsiveness and short supply chains - these are the advantages cited for manufacturing countries nearer to the USA. The exchange rate of the US dollar, which is making imports more expensive, is another factor eating away at the competitiveness of Asian countries with low labour costs. Area Development also quotes a survey carried out in 2008 among 321 US company executives in which they stated where they would be expanding production - 44% of those polled said the USA, 37% Mexico, another 37% said China, and 24% each said Canada or India; multiple mentions were possible. Potential sourcing countries were: 50% China, 49% USA, 43% Mexico and 23% Canada.

The US trade magazine 'strategy+business' demonstrates this using the example of a major manufacturer of automated teller machines (ATMs). In 2009 the company moved production of its most sophisticated machines from China and India back to its home base in the USA. The reason for this was that the company feared outsourcing would distance its development engineers and customers from the production site, thereby slowing down its ability to develop new models. Qualifying this development, the magazine added that with more straightforward products, the trend towards shifting production to other locations would of course be likely to continue. Whirlpool, for example, recently announced that it would be closing its site in Evansville, Indiana, and moving production to Mexico instead.

However, the logic of the backshoring concept remains, because in addition to rising transport costs, wages and the price of raw materials are also increasing in low-wage countries as a result of the rapid growth in national economies. Patent law issues and the question of preserving production know-how are further aspects that speak clearly for regions like the EU and the rest of Western Europe, as well as America. National governments in the traditional production countries also do their best to keep their manufacturing companies at home or to fetch them back. As a result, American experts expect a trend towards backshoring, particularly with high-tech products, whilst mass-produced items are likely to still be made in Asia in the future.

Companies are unlikely to totally abandon the idea of shifting their production elsewhere, however, although by now the aim of the move is likely to be a greater share of the market, rather than to save money. With vehicles or machines, for example, major buyer countries like Russia or India now insist on a minimum of locally produced content. If this condition is not met, the threat of protective tariffs or import embargos looms. If profitability calculations are the only deciding factor, then production facilities located close-by start looking increasingly attractive and "Go west" may well be the motto of this decade.