So far, 2013 has been a hectic year for the North American machine tool market.

South of the border, latest AMT statistics for the month of July show sales of 1,937 units with a total value of $341,191,000 – and an average value per unit of just over $176,000. Unit sales in July were almost 2% higher than in 2012. Machine tool unit sales in USA have grown for the last three months. AP reported at the beginning of October that US factory activity expanded in September at the fastest pace in the last 30 months – an encouraging sign that manufacturing could lift economic growth in the coming month. ISM (the Institute for Supply Management – a trade group of purchasing managers) has announced that its manufacturing index rose in September to 56.2, the highest since April 2011 (a reading above 50 indicates growth). The strength at factories has the potential to set the stage for even faster growth in the October – December quarter. Many analysts are forecasting the annual growth, in 2013, for the manufacturing sector at the very healthy rate of 3%.

In Canada, CMTDA’s statistics for the first eight months of the year (January to August, incl.) show declines over the previous year in all categories:
   • Metal Cutting (CNC and non-CNC) is down 12% in units and 10% in sales value
   • Metal Forming (CNC and non-CNC) is down 11% in units and 19% in sales value.
But good news seems to be just around the corner in Canada as well. The seasonally adjusted RBC-PMI (Canadian Manufacturing Purchasing Managers’ Index – a composite indicator designed to provide a snapshot of the health of the manufacturing sector) rose to 54.2 in September, up from 52.1 in August. Incoming new work at Canadian manufacturers increased for the sixth consecutive month in September, and the rate of new order growth was strong and the fastest in 15 months. Subsequently, I am quite confident that Q.4/2013 will be a successful selling period for our industry. For most CMTDA members the event of the fall was the just ended Canadian Manufacturing Technology Show, which this year took place between September 30th and October 3rd. For 2013 the CMTS has returned to the International Center in Mississauga, just across from Toronto’s Pearson Airport. Event producer SME has advised us following preliminary data regarding the show:
   •Total net attendance: 7,576 (a 23% increase over the 2011 event).
   •Total net exhibit space: 127,555 sq.ft. (an increase of 18% over the 2011 event).
   • Total number of exhibitors: 390 (an increase of over 11% over the 2011 event).
SME made great efforts and succeeded in showcasing the great technology and variety of equipment exhibited on the floor. Media exposure, the shuttle bus service, the speakers, conferences, and the student program, as well as the spectacular Avro Arrow display, have all contributed to the success of the show - appropriately called by many in our industry as ‘Canada’s National Manufacturing Event.” 70% of the floor space has been rebooked for the 2015 event.

I would like to take this opportunity to welcome Luke Kerr of Amada Canada to the CMTDA board of directors’, Luke will replace Daniel Medrea of DMG/Mori Seiki/Ellison Technologies who has resigned from the board due to the pressure of work. Many thanks go to Daniel for his effort and support.

The web based compensation survey is complete and should be ready to go shortly. As with statistics the information provided will be kept in strictest confidence and the compiled results will only be made available to those members that participate.

Our AGM will be held on December 5th at the Country Club in Woodbridge. The hockey fans who have enjoyed Wendel Clark’s presence at CMTS, will have a great incentive to attend our AGM, as Scotty Bowman, the Hall of Fame coach will be our guest speaker along with Elliotte Friedman from CBC Sports who will discuss “Building a Winning Team” This should be an informative and fun evening.

As we enter the very important last quarter of the year, I wish you all a most successful year end, and look forward to see you at the forthcoming AGM.

CMTDA Directory.

• To promote friendly business relations among its members.
• To provide means whereby challenges affecting the industry can be readily discussed and to co-operate, as a group, to further the interests of the industry by all desirable and lawful means.
• To stimulate growth in the use of machine tools
• To promote advances in machine tool technologies
• To assist clients in finding distributors to supply machine tools
• To collect and disseminate statistics on market capacity and other pertinent matters.
• To exchange information among members for the purpose of reducing distribution costs and eliminating waste and duplication of efforts.
• To enable the members, as a group, to discuss with the government, if need be, tariff concerns and other issues relating to machine tools.
• To promote and sponsor machining skills development for youth Canada-wide.

Canadian Machine Tool Distributors’ Association
www.cmtda.com

118 Landry Lane, PO Box 951
Thornbury, Ontario, N0H 2P0
(519) 599 2803, Fax (519) 599 5154
E mail info@cmtda.com