|CMTDA President’s Message
The annual harbor cruise was held on June 7 and was attended by 90 members and guests. The weather was perfect, the food and drink was up to the usual good standard and the evening was enjoyed by everyone. In keeping with tradition, our media friends provided the wine and spirits, and we thank them for their continued support. In May, the association hosted a negotiating skills seminar. The two-day event was extremely interesting and valuable skills were learned by all who attended. It is very important in these trying economic times to be armed with all the available tools to make the most out of each potential sale.
In April, several members attended the American Machine Tool Distributors’ Association (AMTDA) conference held in Bermuda. The educational value of the meeting is but one of the benefits of these conferences. The opportunity to meet and socialize with so many of our industry peers is invaluable. During this meeting the attending CMTDA board members had a meeting with Ralph Nappi and his staff regarding some cooperative efforts concerning Canada. We discussed the possibility of hosting a CMTSE exam in Toronto, or other Canadian location if there is enough interest. We spoke about a joint statistics program to better track the total North American machine tool sales. Updating the existing AMTDA educational video aimed at high school students was another issue that was discussed.
CMTDA is pleased to announce an agreement with Reed Exhibitions to sponsor the Edmonton and Vancouver machine tool shows. This sponsorship will continue for years. Speaking of trade shows, the CMTS show is fast approaching-October 15 to 18. The show is the biggest manufacturing show in North America in the off year to IMTS and with the current economic conditions, the event becomes even more important. As exhibitors and key suppliers to the manufacturing sector, it is our job to keep them interested, informed and motivated to attend the show.
We need to push our builders and our staff to put our best foot forward and make this show a success. By now you have heard that the CMTDA will hold a golf day on August 30. All the details have been sent out by letter and I look forward to seeing everyone there. Thanks to Kurt Neiman for his efforts in organizing the event. Mark your calendars for the CMTDA annual general meeting scheduled for November 29th.Along with the usual agenda, our guest speaker is guaranteed to capture your attention. His field of expertise is the automotive industry and I look forward to seeing all of you at his presentation. This is my last newsletter column as president of the association. The experience on the board and as president has been most enlightening and educational. I would invite any member to get involved and make their ideas known. It is your association. I acknowledge and thank the membership for the opportunity, and the board of directors who give their time freely and who are committed to the betterment of our industry. A special word of thanks to Jim Burrows, without his support and commitment the job would have been impossible. See you at the golf outing.
|Machine tool sales depressed with Ontario feeling brunt of slowdown
CMTDA Executive Director Jim Burrows
The downturn in orders began in December of 2000 as reported dollars were approximately 2/3 of the 1999 figures. The average order size in dollars has remained within close range. CNC lathes averaged $197,000, vertical turning lathes averaged $176,000, $404,000 for horizontal machining centers, horizontal boring mills averaged $671,000, vertical boring mills averaged $493,000, $205,000 for EDM wire machines, EDM sinker units averaged $222,000, $309,000 for grinders, and a new category, coordinate measuring machines, averaged $283,000.
Conventional metal cutting machine tools averaged $18,000 per order and fabricating averaged $53,000. Metal stamping was $24,000. The overall average order was reduced from $95,000 in 2000 to $76,500 in 2001.
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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.
Any individual, partnership, firm, company or corporation may be elected to membership in the CMTDA by an affirmative vote of not less than a simple majority (i.e. 51%) of the members in good standing when such vote is taken. To qualify for regular membership an applicant is required to:
Maintain an office or other recognized place of business; represent at least one recognized manufacturer of machine tools on an exclusive basis in a designated territory; carry its own accounts; be established and actively engaged in the distribution of machine tools in Canada for at least one year at the time of application for membership is made; does at least 51% of its business in new machinery; provide monthly orders booked data in the format set out by the association.
To qualify for associate membership an applicant is required to: maintain an office or other recognized place of business; provide equipment/services ancillary or complementary to machine tools; carry its own accounts.
Application for membership is to be in writing to the president who will submit it to the first general meeting and not later than the next annual meeting. Contact the CMTDA at PO Box 262, Minden, ON KOM 2KO Phone: (705)286-6921 Fax: (705) 286-6905
The CMTDA has arranged to have John Cleveland, vice president of IRN Inc., Grand Rapids, MI as the main speaker for the November 29, 2001 Annual General Meeting. Cleveland will speak on “Supplying the Automotive Industry: New Rules for Success.” Cleveland has spent years working with OEMs and component suppliers to the auto industry. Cleveland and his firm, IRN Inc., provide automotive intelligence to help improve the positioning and marketing strategies of suppliers. He has been quoted in such business publications as Forbes, Fortune, the Wall Street Journal and others. Cleveland and IRN have extensive experience in creating alignment between distributors, manufacturers and the markets they serve. Cleveland will discuss the changes impacting the automotive supplier industry including consolidation, cost reduction pressure and the impact of e-business on changing customer/supplier relationships. To prosper in this market, machine tool companies need to create new business designs that differentiate them from competitors and add new value to the customer relationship. Learn to stay profitable by creating deeper levels of "strategic fit" with key customers. The AGM will be held the Toronto Board of Trade Country Club in Woodbridge, Ontario on November 29 at 4:00 P.M.
The 2001 Canadian Machine Tool Show (CMTS) is fast approaching, and the CMTDA executive has been working hard with Reed Exhibition Companies to ensure a successful show this year.
The show will be held at the National Trade Centre in Toronto on October 15-18, 2001. This year’s show features new procedures for moving in. Each exhibitor will be assigned a scheduled move-in time. I know your thinking move in time of 10:00 a.m., I don’t need to be there till noon. Not this year, the marshaling yard will ensure your move-in goes as scheduled. Miss your scheduled move-in time, and it’s back to the end of the line for you.
Reed introduced this system last year at the Fabricating & Stamping Machinery Show (FSMS) and it went off without a hitch. In fact, the machinery movers were calling exhibitors if the could come earlier. CMTS is bigger than the fabricating show, however Reed doesn’t expect any problems since an additional move-in day has been added. The show will be approximately the same size and will include International Pavilions represented from Austria, Italy, Spain, Taiwan, and others.
There will also be seminars with individual experts speaking on "lean manufacturing" and "automotive overview". Reed will be advertising the show with trade magazines, plus a large mailing will be sent directly to our customers. Canadian Machinery and Metalworking will produce the official Show Preview and Show Guide this year. CMTDA has recently signed an agreement with Reed Exhibition Companies to sponsor the recent Edmonton Trade Show, and the Vancouver Show. For more information on CMTS 2001 visit the website: http://www.reedexpo.ca/cmts www.reedexpo.ca/cmts
We have produced two charts showing the moving average on overall order intake and our index which is the orders reported from the same distributors each month.
The CMTDA has welcomed three new members to the association. The new members include Hartford Technology Limited, 4525 Rhodes Drive, Unit 300, Windsor, ON, N8W 5R8, Lee Shaffer, president; Toolmex Corporation, Machine Tool Division, 2015 S. Mitchell Blvd., Schaumburg, IL, 60193, Tom Kob, general manager; and Mitutoyo Canada Inc., 2121 Meadowvale Blvd., Mississauga, ON, L5N 5N1, Jay Summers, national sales manager. CMTDA now has a total of 61 members enjoying the benefits of the association.
Group Equipment Ltd.
Peter Turton of 600 Machine Tools and CMTDA
(left) with Upton & Sullivan and Ian Jones
Left to right:
Elaine Smith and Bob Mathieu, both with
of A.W. Miller Technical Sales and CMTDA vice president and trade shows
welcomes members and guests aboard the cruise.
Jim Gear and Gilbert E. Storey, both representing Gilbert C. Storey Machinery Ltd.
We are saddened to report the passing of Bob Lawrence on March 1, 2001. He was the mainstay in sales for the A.R. Williams Company for many years. Bob was an Honorary Member of CMTDA and participated as a Director for several terms.
Due to lack of participation, your Directors have decided to cancel our 2001 compensation survey. Some distributors felt that it was not necessary to collect this information every year and others felt the information was not directed or concentrated in the proper areas. CMTDA will reevaluate the questionnaire and its contents. We will be sending requests for member input to make this management tool as valuable as possible. It is the association’s intent to run the survey again in 2002.
CMTDA held a seminar on “The Art of Negotiating” on May 10- 11. The seminar was attended by 18 students who heard Sy Bosworth of the Negotiation Institute in New York discuss negotiating tactics based on needs for both parties.