Welcome to the summer edition of the CMTDA Newsletter. Inside this issue, you will find a variety of informative articles written by the executive. I think the best news is that there are some sure signs that some sectors of the machine tool economy are making a turn in the right direction.

Numbers out of the United States for factory growth are consistently coming in at above 60 (a reading above 50 points to growth). Therefore, we can expect these factories will eventually buy equipment, with some of this spin-off growth coming to Canada. In addition, you will see the positive results reflected in the companion story on this page entitled, "Machine tool sales units up 3%, dollars up 11% from 2003."

Yet, 2004 has continued to challenge many machine tool distributors and builders. Both a strong Euro and American dollar, used machinery and many global uncertainties are contributing factors. However, we must all face these challenges and be strong and keep an eye out for opportunities.

Since my last message, the Montreal Manufacturing Technology Show, which was sponsored by CMTDA, has come and gone. Reports of quality leads and machines sold are always welcomed. A large number of CMTDA members exhibited at the show. Also, CMTDA had a booth a the show to promote our association to the industry and recruit new members.

Our annual spring meeting was held on June 10 at a new venue-Woodbine Race Track. CMTDA sponsored the sixth race and we had a draw for the ladies present to me in the winner's circle. The winner's were Julie Mathieu, Marilyn Burrows, Vera Neiman, Trudy Jahn and Kim Laudrum. The evening, which also featured dinner and betting on the horse races, was enjoyed by all.

Thank you to all of our members and guests, and our media friends for coming out to the spring meeting. A special thank you to Jim Burrows for his efforts in coordinating andscheduling the event.

Speaking of Jim, for those of you not at the meeting, Jim and Marilyn celebrated their 47th wedding anniversary on June 8. Congratulations Jim and Marily.

I would also like to take the opportunity this opportunity to welcome Sandvik Canada Inc. and Finn-Power Canada Ltd. as new members of the CMTDA.

News of our Annual Golf Tournament will be out shortly. It is scheduled for August 24 at Pheasant run in Newmarket, ON. Keep an eye out for your invitation as this event is always an enjoyable day for members.

On behalf of the CMTDA, I wish everyone prosperity, good selling and a safe summer.

Best Regards Kurt Neiman, President

by CMTDA Executive Director Jim Burrows

Sales for machine tools in Canada show a rise in units of 3% and in dollars of 11% at the end of April compared to 2003. Interest at the Montreal Manufacturing Technology Show was brisk, resulting in increased activity and a positive outlook.

Average order size in CNC metal cutting was: horizontal spindle lathes, $186,000; vertical spindle lathes, $402,000; ver- tical machining centers, $167,000; horizontal machining cen- ters, $463,000; boring mills, $624,000; wire EDMs, $176,000; sinker EDMs, $125,000; grinders, $239,000; and CMMs, $138,000. Three new categories added for 2004 are multi-task- ing lathes at $284,000; milling machines at $175,000; and CNC saws at $150,000.

Conventional metal cutting machine tools averaged $17,300. In the CNC fabricating area, press brakes, $93,000; turret press- es, $332,000; laser profile cutting, $597,000; and an average CNC fabricating machine was $273,000.

In the non-CNC fabricating area, the average sale was $16,000, while the metal stamping/forming area averaged $59,000. New categories added for 2004 include plasma profile cutting at $353,000; water jet profile cutting at $218,000; and Machine tool sales units up 3%, dollars up 11% from 2003other laser systems at $106,000.

Our records show a significant increase in vertical machining centers, EDM sinkers and laser profile cutting systems.

On the other hand, larger equipment like vertical and horizontal boring mills have been hit hard and numbers have decreased substantially since the peak of 2000.

Conventional metal cutting machine tools have also suffered a 8% decrease in units and 20% decrease in dollars from this period last year.

Annual CMTDA Spring Meeting was held at the Woodbine Race Track on June 10, 2004.

The meeting was attended by nearly 100 members guests. The evening began with the President™s Reception at 5 p.m.

Kurt Neiman welcomed all attendees and everyone proceeded to have a great time along with a little wagering and an excellent buffet.

CMTDA sponsored the sixth race and we had a for the ladies present to me in the winner™s circle The winning horse in the sixth race was Sweet Count. The winners were Julie Mathieu, Marilyn Burrows, Vera Neiman, Trudy Jahn and Kim Laudrum. The networking opportunities with other members continues to be the highlight of the annual spring meeting.

We look forward to out next occasion at our tournament on August 24th and our AGM on November 17th. CMTDA Annual Spring Meeting

The CMTDA’s purpose and objectives

• 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.