It seems like I just finished writing my message for the winter newsletter and here we are well into summer already. How time flies when you are having fun.

I believe all of our trials and tribulations from 2006 have carried over into 2007. The continuing strength of our dollar, overseas competition in the manufacturing sector and the continued strength in Japanese and European car builders continue to make all of our businesses a daily challenge.

The one bright spot is that in metal cutting and metal fabricating in Ontario> we are up 10% in unit sales and up 15% in dollar volume over 2006. Unfortunately this is offset with declines in Quebec and Western and Atlantic Canada from the previous year. Hopefully the balance of the year will bring growth for everyone across the country.

On the show front everyone is aware that Reed Exhibitions have been purchased by SME and they have just completed their first show in Edmonton. I did not attend but our Executive Director Jim Burrows did and reported that the attendance was strong and overall the exhibitors were very pleased with the results.

Our sights are now set on CMTS 2007 which will be held from October 15-18th at the National Trade Center in Toronto, ON. We are looking forward to working with SME on it and making this an event which will benefit all of our members.

We held our spring cruise in June and again had a fabulous evening on the Mariposa Belle. Thanks again to MP&P, CM and CIM for contributing to our refreshments for the evening. This is the perfect time to come out socialize a little, network a little but ultimately just have a great evening. It was great to see a few of our honorary members notably Buell Manning at 94 years young and Murray Roberts who is 82. A special thanks to Jim and Marilyn Burrows for organizing a great evening. Hopefully more members will have an opportunity to attend this great event next year.

Also I would like to take this opportunity to congratulate Jim and Marilyn Burrows on the celebration of their 50th wedding anniversary.
Have a great summer and I look forward to seeing you at our annual general meeting which will again be held at The Country Club (Formerly the Board of Trade) on Thursday, November 15, 2007.

Best Regards
Brian Donnelly

Our records indicate that machine tool units are up by 12% in Ontario but down in Western Canada and Quebec by approximately 10%. The $numbers are up 20% in Ontario, lower in Quebec and Western Canada by between 20% and 25% showing an overall average difference of 0% in units and 0% in dollars.

Average order size in CNC metal cutting was: horizontal spindle lathes, $147,000, vertical spindle lathes, $251,000, multi tasking lathes, $282,000, vertical machining centers to 40” X, $109,000, vertical machining centers over 40” X, $242,000, vertical machining centers, 5 or more axis, $579,000, horizontal machining centers to 4 axis, $363,000, horizontal machining centers, 5 or more axis, $1,068,000, milling machines, $73,000, horizontal boring mills, $707,000, vertical boring mills, $586,000, EDM wire, $168,000, EDM sinker, $149,000, grinders, $313,000, CMM’S, $154,000, saws, $40,000.

The average booked order for conventional metal cutting was $14,500 The CNC fabricating average order was: press brakes, $98,000, shears, $39,000, turret punches, $332,000, single end punches, $58,000, profile laser cutting, $744,000, profile plasma cutting, $210,000, profile water jet cutting, $225,000, tube benders, $45,000 and other items, $216,000.

Conventional fabricating machine tools averaged $9,300 and metal stamping orders averaged $18,000. Overall, the larger increases have been in CNC Grinders and Saws, CNC profile laser cutting, and conventional Bending Rolls.

The CNC fabricating average order was: press brakes, $101,000; shears, $49,000; turret punches, $472,000; single end punches,$118,000; and profile laser cutting, $704,000.

Other CNC fabricating average orders included profile plasma cutting, $215,000; profile water jet cutting, $213,000; tube benders, $37,000; and other items, $149,000.

Conventional fabricating machine tools averaged $18,000 and metal stamping orders averaged $20,000.

Overall, the larger increases have been in areas including CNC multitasking lathes, 15% in units, -8% in dollars and vertical machining centers over 40 in. X axis, 47% in units, 19% in dollars.

Large increases have also been achieved in CNC press brakes, 7% in units, -5% in dollars; plasma profile cutting, 69% in units and 36% in dollars; and conventional press brakes, 26% in units and 17% in dollars.

We are sorry to report the death of Mr. Al Miller. Al was the founder of A.W. Miller Technical Sales with offices in both Canada and U.S.A. He will be missed by all involved in the machine tool business.

The Western Manufacturing Technology Show held in Edmonton from June 19th through June 21st was rated by our members as very good. This was the first time the show was run by SME Canada. Reports from exhibitors were that the quality of attendees was excellent and several members reported selling equipment from the floor.

SME Canada are now working diligently on the Canadian Manufacturing Technology Show scheduled for the National Trade Center in Toronto on October 15 through 18, 2007. CMTDA is a major sponsor of CMTS and is looking forward to participating with our members in this important event.

Our Spring Meeting held on June 13th aboard the Mariposa Belle was a terrific evening. The event was attended by 80 members, spouses and guests. The evening of June 13th was warm with Lake Ontario very flat. Mariposa Cruises provided an excellent beef tenderloin dinner and combined with cocktails, music and networking with other machine tool people, the evening was a resounding success.

Our Annual General Meeting is coming in November and again this year, we will have election of officers. Should you be interested in running as a Director, please contact the CMTDA office.

Many thanks to Canadian Metalworking, Canadian Industrial Publishing and MP&P for their support.

The Annual General Meeting of the Canadian Machine Tool Distributors’ Association will be held at the Country Club, Lloyd Street, Woodbridge ON on Nov. 15, 2007 at 4:00 p.m.

We will have a full program in November as we have an election of Officers along with our committee reports. Our election takes place every two years and should you wish to nominate a member with their consent, please advise the CMTDA office.

We will also have two speakers presenting their thoughts regarding the machine tool industry. One speaker will come from Doosan Infracore and the other from MAG Industrial Automation Systems. We look forward to meeting you at that time.

Membership continues to maintain a high level in CMTDA as companies enjoy the benefits. We are pleased to report a total of 62 regular members, 16 associate members and 18 honourary members.

Regular members continue to benefit from our increased detail of our monthly statistical program. Monthly input from regular members is compulsory which continues to make the data more valuable and consistent. We will be reviewing our format for 2008 soon should you have suggestions. CMTDA also supports continuing education with some programs of its own and the support of AMTDA’s CMTSE certification.

One other very valuable opportunity is networking with your peers in the machine tool business. We offer at least two occasions every year for members to attend and participate in meetings where they can talk to other members about mutual concerns regarding machine tool distribution. If you are not attending, you are missing your chance to gain this knowledge.

With new show owners, excitement is growing for the upcoming Canadian Manufacturing Technology Show to be held at the National Trade Center in Toronto, ON this coming October.

SME, with headquarters in Dearborn, MI have established an office in Toronto as SME Canada and have staff together to run their Canadian operations. SME are very experienced in running trade shows and are involved with both AMTDA and AMT exhibitions in U.S.A. Their goal is to make CMTS an event rather than just another trade show.

New features this year include “Innovations 2007”-a showcase of the latest technologies available, “Manufacturing Insights”-a comprehensive education program and a panel of industry experts who will discuss global competition, the rising Canadian dollar, skills shortage and workforce development

While customers continue to struggle exporting their product because of the increased value of the Canadian dollar, machine tool distributors must be conscious of their bottom line due to the same effect.

In our Summer 2002 newsletter, we reported an average CNC lathe selling for $232,500. At this time, our average selling price for a horizontal spindle lathe is $178,800, down some 23%. Vertical machining centers are in a similar boat as the average sale has dropped from $185,000 to $167,000.

It seems that machine tool distributors must be ever conscious of the free services offered to customers which can include items like service, applications, training and many other bonuses customers have taken for granted along with your sales force offering same.

The Canadian Machine Tool Distributors Association was founded in 1942 as a trade association dedicated to the marketing of machine tools and services in Canada through distributorship companies. 

• To promote friendly business relations among its members
• To provide means whereby problems 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 and secure wider markets for these tools
• To advertise the industry and the specific advantages attainable through the use of machine tools
• To make available information which will assist users and prospective users to obtain properly selected 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 problems and other issues relating to machine tools.