Global Forecasting & Marketing Conference

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AGENDA

AMT offers a glimpse into the future by providing you with direct contact with the experts who understand what is happening now and who have ideas about what is going to happen in the future.

2009 Global Forecasting & Marketing Conference • Hilton Orlando Wednesday – October 21, 2009 10:00 am – 12:00pm 12:00 pm – 1:00pm 1:00 pm – 1:15pm

Registration – Florida Ballroom Foyer Lunch – Florida Ballroom 1,2,3 Rodger Pinney, President & CEO, United Grinding Chairman, AMT Economics & Statistics Committee

Florida Ballroom 4

Opening Remarks

1:15 pm – 2:10 pm

Richard Noble, Project Director, The BLOODHOUND Project

Keynote

Florida Ballroom 4

2:10 pm – 3:05 pm

John Walker, Chairman, Oxford Economics

Global Forecast

Florida Ballroom 4

3:05 pm – 3:30 pm 3:30 pm – 4:25 pm

Break – Florida Ballroom Foyer Richard Aboulafia, Vice President, Analysis, Teal Group Corporation

Aerospace Market Outlook & Industry Trends

Florida Ballroom 4

4:25 pm – 5:20pm

Eli Lustgarten, Senior Research Analyst, Longbow Securities

Machine Tool Forecast and General Industrial Machining Outlook

Florida Ballroom 4

5:20 pm – 6:15pm

Robert Wendover, Managing Director, The Center for Generational Studies

Dude! Profiting in the Age of Generational Transition

Florida Ballroom 4

6:15 pm – 7:15 pm 7:15 pm – 8:45 pm

Reception – Florida Ballroom 1 Dinner – Florida Ballroom 3

Thursday – October 22, 2009 7:00 am – 8:00 am

Breakfast – Florida Ballroom 1,2,3

8:00 am – 8:15 am

Charlie Ingram, VP Sales & Marketing, Eriez Magnetics Chairman, AMT Global Marketing & Sales Committee

Florida Ballroom 4

8:15 am – 9:10 am Florida Ballroom 4

9:20 am – 10:15 am

Opening Remarks – Day 2

Steven R. Kline, Jr., Director of Market Intelligence, Gardner Publications, Inc.

U.S. Capital Spending Survey & Forecast for the Machine Tool Industry

Philippe Cesson, President Cesson 2.0

Eli Lustgarten, Senior Research Analyst Longbow Securities

Generating Business Growth through Social Networking & Social Media

Off-Road/ Construction

Location: Florida Ballroom 4

Location: Florida Ballroom 5

Sean Jiang, Arun Mahajan, & Carlos Mortera, General Managers AMT China, India, & Mexico

Power Generation – China, India, Mexico Location: Florida Ballroom 6

10:25 am – 11:20 am Robert Akers, Chief Operating Officer National Tooling & Machining Association (NTMA)

John Fedor MRD Solutions LLC

Wind Energy

Capital Spending Survey for the Job Shop Industry Location: Florida Ballroom 4

11:20 am – 12:30pm

David Dornfeld, Professor University of California Berkeley

Philippe Cesson, President Cesson 2.0

Green Issues in Manufacturing

Generating Business Growth through Social Networking & Social Media

Location: Florida Ballroom 4

Location: Florida Ballroom 5

Location: Florida Ballroom 7

Sean Jiang, Arun Mahajan, & Carlos Mortera, General Managers AMT China, India, & Mexico

Auto/Truck/Tier 1 – China, India, Mexico Location: Florida Ballroom 6

Break – Florida Ballroom Foyer Jim Ellison, Chairman Ellison Technologies

Market Intelligence from a Distributor’s Perspective

Location: Florida Ballroom 4

Florida Ballroom 4

Location: Florida Ballroom 6

Jean-Paul Burtin, President, JP Consulting

2:30 pm – 3:05 pm

4:10 pm – 5:00 pm

Location: Florida Ballroom 5

Developing Business at New Domestics/ Transplant Companies

Manufacturing Outlook for the Orthopedic Device Market

Florida Ballroom 4

3:05 pm – 4:00 pm

Aerospace – China, India, Mexico

Dan Conrad, President ASD International

Lunch – Florida Ballroom 1,2,3

12:30 pm – 1:25 pm 1:35 pm – 2:30 pm

Sean Jiang, Arun Mahajan, & Carlos Mortera, General Managers AMT China, India, & Mexico

Bill Horwarth, President MAG Americas

Alfredo Domador, Vice President B2B Portales, Inc.

Survival and Sustainability Through Customer Service in Unprecedented Times

Capital Spending Survey for Mexico & Brazil

Location: Florida Ballroom 5

Location: Florida Ballroom 6

Kim Korth, President & Owner, IRN, Inc.

Automotive Industry Outlook

Network with your colleagues from: AMT – The Association For Manufacturing Technology American Machine Tool Distributors’ Association (AMTDA)

Ian Stringer, Industry Analyst AMT – The Association For Manufacturing Technology

USMTC – Its Use & Value Location: Florida Ballroom 7

ATTENDEES BY LAST NAME

Meeting Registrants by Last Name

2009 Global Forecasting & Marketing Conference October 21, 2009

To

October 22, 2009

AMTDA Peter A. Borden President

AMTDA Rockville, MD

Joseph A. Braun President

Braun Machinery Co., Inc. Grand Rapids, MI

Mike Cekanor Senior Vice President

Machinery Systems, Inc. Schaumburg, IL

Patty Chang Operations Manager

Chevalier Machinery, Inc. Santa Fe Springs, CA

Ross A. Clark VP Sales North America

CHIRON America, Inc. Charlotte, NC

Travis Egan Publisher

Gardner Publications, Inc. (GPI) Cincinnati, OH

Johnson Lan Vice President

Chevalier Machinery, Inc. Santa Fe Springs, CA

Ronald J. Mager President & CEO

Machinery Systems, Inc. Schaumburg, IL

Anthony J. Simone Director of Membership

AMTDA Rockville, MD

Cris Taylor CEO

CHIRON America, Inc. Charlotte, NC

Member Robert R. Albaugh Corporate Marketing Analyst

Hurco Companies Inc. Indianapolis, IN

Paula C. Ameigh Director, Corporate Marketing & Customer Services

Hardinge Inc. Elmira, NY

Page 1 of 12

10/9/2009

David Barned Global Marketing Manager

Master Chemical Corporation Perrysburg, OH

Susan A. Bartholomew Director of Marketing, North America

ESAB Welding & Cutting Products Florence, SC

Fred G. Becker Director of Sales & Marketing

Thielenhaus Microfinish Corp. Novi, MI

Tim Bell Sales Director - North America

Sescoi Inc. Southfield, MI

Bill Bender International Sales Director

Milltronics Manufacturing Company Waconia, MN

Richard W. Bertsche President

Bertsche Buffalo Grove, IL

Harsh Bibra General Manager

Fagor Automation Corporation Elk Grove Village, IL

Charles R. Birkle Vice President, Sales & Marketing

Mazak Corporation Florence, KY

Richard R. Blake President

Edgewater Automation, LLC Saint Joseph, MI

Edward L. Boggs III VP International Sales & Marketing

SGS Tool Company Munroe Falls, OH

Judy Brauer Senior Marketing and National Accounts Manager

M.A. Ford Mfg. Co., Inc. Davenport, IA

Timothy J. Burns President/CEO

Preco, Inc. - Corporate Headquarters Lenexa, KS

Glen A. Carlson III President

Acme Manufacturing Co. Auburn Hills, MI

Robert B. Carson Jr. Manager, Distribution & Business Development

Seco Tools Inc. Troy, MI

Diane L. Cedarberg Marketing Manager

Milltronics Manufacturing Company Waconia, MN

John B. Cheung Chief Executive Officer

OMAX Corporation Kent, WA

Charles N. Clark Sr. Division President

Dukane Corp.- I.A.S. Division St Charles, IL

Page 2 of 12

10/9/2009

Dougald A. Currie II President and CEO

Erie Press Systems Erie, PA

Chuck F. D'Amico Co-Principal/Director of Operations

Jorgensen Conveyors, Inc. Mequon, WI

Mary Delaney Marketing Manager

Jergens, Inc. Cleveland, OH

Bryon G. Deysher President/CEO

Methods Machine Tools, Inc.-MA Sudbury, MA

Thomas R. Dillon President, Mori Seiki USA

Mori Seiki USA, Inc. Hoffman Estates, IL

Timothy B. Dining President & CEO

Greenerd Press & Machine Company, Inc. Nashua, NH

Todd L. Drane Marketing Manager

Fagor Automation - Texas Houston, TX

Maureen Durkin Vice President

Gehring L P Farmington Hills, MI

Willie R. Eichele Director of Sales

Ultra Tech Machinery, Inc. Cuyahoga Falls, OH

Troy Estes President

Vektek, Inc. Saint Joseph, MO

Alan R. Finegan Director of Marketing

Gleason Corporation Rochester, NY

Glynn Fletcher President

Agie Charmilles (Headquarters) Lincolnshire, IL

R. Stephen Flynn President

Optical Gaging Products, Inc. (OGP) Rochester, NY

Richard F. Glennon President & CEO

Assembly & Test Worldwide, Inc. Dayton, OH

Edward J. Goldman Senior Vice President

QinetiQ North America/Foster-Miller Waltham, MA

Javier Gomez Regional Sales Manager

Flow International Corp. Kent, WA

Robert Goossens Director of Marketing/e-Business

Ellison Technologies - Southern California Santa Fe Springs, CA

Page 3 of 12

10/9/2009

Thomas J. Haag President & CEO

SGS Tool Company Munroe Falls, OH

Eugene R. Haffely Jr., PE Chief Operating Officer

Assembly & Test Worldwide, Inc. Dayton, OH

Robert A. Hagarty Vice President

Ultra Tech Machinery, Inc. Cuyahoga Falls, OH

Steve Harder Manufacturing Manager

Edgewater Automation, LLC Saint Joseph, MI

Gary Hargreaves VP, Business Development

Mastercam/CNC Software, Inc. Tolland, CT

David Hartman Product Manager - Rotating Products

Parlec, Inc. Fairport, NY

Brad Hasty National Sales Manager

LNS America, Inc. Cincinnati, OH

Johan Israelsson President, Sandvik Coromant USA

Sandvik Coromant Company Fair Lawn, NJ

John D. Jacobsen Director, Business Intelligence

Sandvik Coromant Company Fair Lawn, NJ

Mike S. Jacobsen Marketing Manager

Genesis Systems Group, LLC Davenport, IA

Costikyan Jarvis COO

Jarvis Cutting Tools, Inc. Rochester, NH

Marshall N. Jarvis II President

Jarvis Cutting Tools, Inc. Rochester, NH

Peter E. Johnson CEO

Darmann Abrasive Products, Inc. Clinton, MA

Christoph K. Kaiser President/COO

BIG Kaiser Precision Tooling Inc. Elk Grove Village, IL

Steve M. Kane Sales & Marketing Manager

Kurt Manufacturing - Industrial Products Minneapolis, MN

Ronald S. Karaisz II President

Novi Precision Products, Inc. Brighton, MI

Karl Kleppek National Sales Manager

GE Fanuc Intelligent Platforms, Inc. Oak Creek, WI

Page 4 of 12

10/9/2009

Jim Kletzien VP & General Manager

Toyoda Machinery USA Wixom, MI

John Krasnokutsky Marketing Manager

Siemens Norcross, GA

Gary J. Kropf Vice President of Marketing & Sales

Allied Machine & Engineering Corp. Dover, OH

Donald D. Lane CEO

Makino Inc. Mason, OH

Bradley L. Lawton President

Star Cutter Company Farmington Hills, MI

Ryan Legg Product Manager

Siemens Elk Grove Village, IL

David D. Leist General Manager

Coe Press Equipment Corp. Sterling Heights, MI

John Leone Director, Sales & Marketing

Cinetic Landis Corp.-CITCO Diamond & CBN Chardon, OH

Timothy J. Leoni Vice President - Sales

Toyoda Machinery USA Arlington Heights, IL

Bradley W. Lindeblad VP of IPS Sales & Marketing

Ingersoll Production Systems Rockford, IL

John F. Logan Chairman

Assembly & Test Worldwide, Inc. Dayton, OH

Mark Logan VP Business Development and Marketing

MAG Americas Hebron, KY

Ernest L. Long CMTSE Director, Sales Operations

Okuma America Corporation Charlotte, NC

W. Kent Lorenz President - Midwest Region

Ellison Technologies Automation Pewaukee, WI

James T. McEachen Chief Executive Officer

Cleaning Technologies Group, LLC Cincinnati, OH

Tim McMurdo Marketing Manager

United Grinding Miamisburg, OH

Page 5 of 12

10/9/2009

William T. Meo Jr. President

Koma Precision, Inc. East Windsor, CT

Howard W. Michael President & COO

Toyoda Machinery USA Arlington Heights, IL

Detlef Mieth President

Hoffmann Filter Corporation Brighton, MI

Marjorie J. Millay Product Manager

Flow International Corporation Kent, WA

Lawrence Murray International Marketing Director

Jergens, Inc. Cleveland, OH

Rodney E. Nelson Vice President of International Sales

Vektek, Inc. Saint Joseph, MO

Kurt Nordlund President

Seco Tools Inc. Troy, MI

Brian Norris Vice President, Marketing

Sandvik Coromant Company Fair Lawn, NJ

Luciano Novacco Director of Sales

Seco Tools Inc. Troy, MI

Amy Odell Manager of Strategic Planning

Ellison Technologies Automation Council Bluffs, IA

Gregory M. Olenick VP & General Manager

Ellison Technologies Automation Council Bluffs, IA

Brian J. Papke President

Mazak Corporation Florence, KY

James K. Peters President

T-Drill Industries Inc. Norcross, GA

Daniel L. Pheil President & CEO

Cinetic Landis Corp. Hagerstown, MD

John E. Piehl Sales Manager

Ahaus Tool and Engineering, Inc. Richmond, IN

Jack T. Pierson Jr. Chairman

Preco, Inc. - Corporate Headquarters Lenexa, KS

Rick D. Pollick Marketing Manager

Penn United Technology, Inc. Cabot, PA

Page 6 of 12

10/9/2009

Michael Powell President

Master Work-Holding, Inc. Morganton, NC

Jerry R. Purcell Vice President of Operations

Penn United Technology, Inc. Cabot, PA

Michael Ramsey Distributor Development

Kennametal Evans, GA

Cary R. Ramthun Vice President, Engineering

DrillMaster Tool, LLC Slinger, WI

Karl Rapp Manager-Machine Tool Branch

Bosch Rexroth - Electric Drives & Controls Hoffman Estates, IL

J. Brooks Reece Vice President

Adcole Corporation Marlborough, MA

Harold E. Reinke President

Vibro/Dynamics Corporation Broadview, IL

Mark G. Rentschler Marketing Manager

Makino Inc. Mason, OH

Doug Robinson Global Marketing & Business Development

Goellner, Inc. Rockford, IL

Ronald F. Schildge President

Eitel Presses, Inc. Orwigsburg, PA

Richard A. Shore Jr. Chief Financial Officer

Automation & Modular Components, Inc. Davisburg, MI

Larry G. Schwartz President and Chief Operating Officer

Okuma America Corporation Charlotte, NC

Jerald Smathers Chief Financial Officer

Penn United Technologies, Inc. Cabot, PA

Sean Stapulionis General Manager

Jergens, Inc. Cleveland, OH

Steven R. Stokey Executive VP

Allied Machine & Engineering Corp. Dover, OH

Gregory Strosaker VP Product Management & Marketing

Mayfran International Cleveland, OH

David E. Suica President

Peter Wolters of America Inc. Des Plaines, IL

Page 7 of 12

10/9/2009

Dana Super Marketing Manager

Mori Seiki USA, Inc. Hoffman Estates, IL

John M. Terranova VP, Americas Sales

Gleason Corporation Rochester, NY

Olaf Tessarzyk Managing Partner, President

ZPS America LLC Indianapolis, IN

Jonathan D. Towner Business Intelligence Manager - Americas

MAG Americas Erlanger, KY

Robert Vandermolen President & CEO

Gehring L P Farmington Hills, MI

James L. Vosmik President

Drake Manufacturing Services Co. Warren, OH

Mike Walker VP Sales & Marketing

Hess Industries, Inc. Niles, MI

Damien F. Wenisch Director of Technology

LNS America, Inc. Cincinnati, OH

Michael A. Whitney President

Creative Strategies LLC Cincinnati, OH

John Wilt Sales Manager - Automotive

Adcole Corporation Lake Orion, MI

Katie Yun Assistant Manager, Intelligence Analyst

Doosan Infracore America Corp & Eng Center West Caldwell, NJ

Daniel C. Zimmerman Manager Sales / Service Support

Eriez Magnetics Erie, PA

Steve Zlotnicki Product Business Manager

ESAB Welding & Cutting Products Florence, SC

Non Member Scott A. Boyle CFO

Nook Industries, Inc. Cleveland, OH

Joseph DiFranco Group Publisher

Today's Medical Developments Richfield, OH

Marc Diebold President & CEO

dgs Marketing Engineers Fishers, IN

Page 8 of 12

10/9/2009

Ed Hascup GM, Marketing & Sales

Fanuc America Corporation Hoffman Estates, IL

Richard G. Kline Sr. President

Gardner Publications, Inc. (GPI) Cincinnati, OH

Richard G. Kline Jr. Publisher

Gardner Publications, Inc. (GPI) Cincinnati, OH

Edward D. McCallum III President

McCallum Research Beverly Hills, MI

Jeff Paulson Marketing Manager

Wilson Tool International White Bear Lake, MN

Gregory S. Sheremet Director of Publishing

Society of Manufacturing Engineers Dearborn, MI

Daniel Smyers Director of Sales and Marketing

II-VI Incorporated Saxonburg, PA

Roy Sweatman President

Southern Manufacturing Technologies, Inc. Tampa, FL

Speaker Richard Aboulafia Vice President, Analysis

Teal Group Corporation Fairfax, VA

Rob Akers Operating Manager

National Tooling & Machining Association Fort Washington, MD

Jean-Paul Burtin President

JP Consulting Phoenixville, PA

Philippe Cesson

Marketing Solutions by Cesson San Diego, CA

Daniel Conrad President

ASD International Novi, MI

Alfredo Domador Operations & Marketing VP

B2B Portales Miami, FL

David A. Dornfeld Director

Laboratory for Manufacturing and Sustainability Berkeley, CA

J. E. Ellison Chairman

Ellison Technologies - Southern California Santa Fe Springs, CA

John W. Fedor Director

MRD Solutions Eastlake, OH

Page 9 of 12

10/9/2009

Bill A. Horwarth President MAG Americas

MAG Americas Erlanger, KY

Charles Ingram VP Sales & Marketing

Eriez Magnetics Erie, PA

Sean Jiang Regional Manager

AMT - Shanghai Office

Steven Kline Jr. Director of Market Intelligence

Gardner Publications, Inc. (GPI) Cincinnati, OH

Kim Korth President

IRN, Inc. Grand Rapids, MI

Eli S. Lustgarten Senior Vice President

Longbow Securities Independence, OH

Arun Mahajan General Manager - CTC

AMT - Chennai Tech Centre

Carlos G. Mortera General Manager

AMT - Mexico Office Monterrey, NL

Richard Noble Project Director

Bloodhound SSC.

Rodger Pinney President & CEO

United Grinding Miamisburg, OH

John Walker Chairman

Oxford Economic USA Oxford, UK

Robert W. Wendover Managing Director

The Center for Generational Studies Aurora, CO

Guest Patricia Frith Personal Assistant

Bloodhound SSC.

AMT Staff Taimur Baig Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Kimberly L. Brown Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Peter R. Eelman Vice President - Exhibitions & Communica

AMT - The Association For Mfg. Technology McLean, VA

Page 10 of 12

10/9/2009

Paul H. Freedenberg Vice President - Government Relations

AMT - The Association For Mfg. Technology McLean, VA

Kathryn E. Fritz Membership Manager

AMT - The Association For Mfg. Technology McLean, VA

Julie A. Germain SIR Project Manager

AMT - The Association For Mfg. Technology McLean, VA

Bonnie T. Gurney Director, Communications

AMT - The Association For Mfg. Technology McLean, VA

L. Knox Johnstone Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Malcolm S. Mason Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Jacquelyn McFarland Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Patrick W. McGibbon Vice President-Strategic Info & Research

AMT - The Association For Mfg. Technology McLean, VA

Christine T. Rasul Vice President - Meetings & Conferences

AMT - The Association For Mfg. Technology McLean, VA

Desiree Richard Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Dominika G. Skarka Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Ian S. Stringer Industry Analyst

AMT - The Association For Mfg. Technology McLean, VA

Jeffery H. Traver Vice President - Business Development

AMT - The Association For Mfg. Technology McLean, VA

Russell K. Waddell Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Mario C. Winterstein Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Douglas K. Woods President

AMT - The Association For Mfg. Technology McLean, VA

Page 11 of 12

10/9/2009

Page 12 of 12

10/9/2009

ATTENDEES BY COMPANY NAME

Meeting Registrants by Company Name

2009 Global Forecasting & Marketing Conference

October 21, 2009

To

October 22, 2009

AMTDA AMTDA Rockville, MD

Peter A. Borden President

AMTDA Rockville, MD

Anthony J. Simone Director of Membership

Braun Machinery Co., Inc. Grand Rapids, MI

Joseph A. Braun President

Chevalier Machinery, Inc. Santa Fe Springs, CA

Patty Chang Operations Manager

Chevalier Machinery, Inc. Santa Fe Springs, CA

Johnson Lan Vice President

CHIRON America, Inc. Charlotte, NC

Ross A. Clark VP Sales North America

CHIRON America, Inc. Charlotte, NC

Cris Taylor CEO

Gardner Publications, Inc. (GPI) Cincinnati, OH

Travis Egan Publisher

Machinery Systems, Inc. Schaumburg, IL

Mike Cekanor Senior Vice President

Machinery Systems, Inc. Schaumburg, IL

Ronald J. Mager President & CEO

Member Acme Manufacturing Co. Auburn Hills, MI

Glen A. Carlson III President

Adcole Corporation

J. Brooks Reece

Page 1 of 12

10/9/2009

Marlborough, MA

Vice President

Adcole Corporation Lake Orion, MI

John Wilt Sales Manager - Automotive

Agie Charmilles (Headquarters) Lincolnshire, IL

Glynn Fletcher President

Ahaus Tool and Engineering, Inc. Richmond, IN

John E. Piehl Sales Manager

Allied Machine & Engineering Corp. Dover, OH

Gary J. Kropf Vice President of Marketing & Sales

Allied Machine & Engineering Corp. Dover, OH

Steven R. Stokey Executive VP

Assembly & Test Worldwide, Inc.

Eugene R. Haffely Jr., PE

Dayton, OH

Chief Operating Officer

Assembly & Test Worldwide, Inc. Dayton, OH

Richard F. Glennon President & CEO

Assembly & Test Worldwide, Inc. Dayton, OH

John F. Logan Chairman

Automation & Modular Components, Inc. Davisburg, MI

Richard A. Shore Jr. Chief Financial Officer

Bertsche Buffalo Grove, IL

Richard W. Bertsche President

BIG Kaiser Precision Tooling Inc. Elk Grove Village, IL

Christoph K. Kaiser President/COO

Bosch Rexroth - Electric Drives & Controls Hoffman Estates, IL

Karl Rapp Manager-Machine Tool Branch

Cinetic Landis Corp.-CITCO Diamond & CBN Chardon, OH

John Leone Director, Sales & Marketing

Cinetic Landis Corp. Hagerstown, MD

Daniel L. Pheil President & CEO

Cleaning Technologies Group, LLC Cincinnati, OH

James T. McEachen Chief Executive Officer

Coe Press Equipment Corp. Sterling Heights, MI

David D. Leist General Manager

Creative Strategies LLC Cincinnati, OH

Michael A. Whitney President

Page 2 of 12

10/9/2009

Darmann Abrasive Products, Inc. Clinton, MA

Peter E. Johnson CEO

Doosan Infracore America Corp & Eng Center West Caldwell, NJ

Katie Yun Assistant Manager, Intelligence Analyst

Drake Manufacturing Services Co. Warren, OH

James L. Vosmik President

DrillMaster Tool, LLC Slinger, WI

Cary R. Ramthun Vice President, Engineering

Dukane Corp.- I.A.S. Division St Charles, IL

Charles N. Clark Sr. Division President

Edgewater Automation, LLC Saint Joseph, MI

Richard R. Blake President

Edgewater Automation, LLC Saint Joseph, MI

Steve Harder Manufacturing Manager

Eitel Presses, Inc. Orwigsburg, PA

Ronald F. Schildge President

Ellison Technologies Automation Council Bluffs, IA

Gregory M. Olenick VP & General Manager

Ellison Technologies - Southern California Santa Fe Springs, CA

Robert Goossens Director of Marketing/e-Business

Ellison Technologies Automation Pewaukee, WI

W. Kent Lorenz President - Midwest Region

Ellison Technologies Automation Council Bluffs, IA

Amy Odell Manager of Strategic Planning

Erie Press Systems Erie, PA

Dougald A. Currie II President and CEO

Eriez Magnetics Erie, PA

Daniel C. Zimmerman Manager Sales / Service Support

ESAB Welding & Cutting Products Florence, SC

Susan A. Bartholomew Director of Marketing, North America

ESAB Welding & Cutting Products Florence, SC

Steve Zlotnicki Product Business Manager

Page 3 of 12

10/9/2009

Fagor Automation Corporation Elk Grove Village, IL

Harsh Bibra General Manager

Fagor Automation - Texas Houston, TX

Todd L. Drane Marketing Manager

Flow International Corp. Kent, WA

Javier Gomez Regional Sales Manager

Flow International Corporation Kent, WA

Marjorie J. Millay Product Manager

GE Fanuc Intelligent Platforms, Inc. Oak Creek, WI

Karl Kleppek National Sales Manager

Gehring L P Farmington Hills, MI

Robert Vandermolen President & CEO

Gehring L P Farmington Hills, MI

Maureen Durkin Vice President

Genesis Systems Group, LLC Davenport, IA

Mike S. Jacobsen Marketing Manager

Gleason Corporation Rochester, NY

John M. Terranova VP, Americas Sales

Gleason Corporation Rochester, NY

Alan R. Finegan Director of Marketing

Goellner, Inc. Rockford, IL

Doug Robinson Global Marketing & Business Development

Greenerd Press & Machine Company, Inc. Nashua, NH

Timothy B. Dining President & CEO

Hardinge Inc. Elmira, NY

Paula C. Ameigh Director, Corporate Marketing & Customer Services

Hess Industries, Inc. Niles, MI

Mike Walker VP Sales & Marketing

Hoffmann Filter Corporation Brighton, MI

Detlef Mieth President

Hurco Companies Inc. Indianapolis, IN

Robert R. Albaugh Corporate Marketing Analyst

Ingersoll Production Systems Rockford, IL

Bradley W. Lindeblad VP of IPS Sales & Marketing

Jarvis Cutting Tools, Inc.

Costikyan Jarvis

Page 4 of 12

10/9/2009

Rochester, NH

COO

Jarvis Cutting Tools, Inc. Rochester, NH

Marshall N. Jarvis II President

Jergens, Inc. Cleveland, OH

Mary Delaney Marketing Manager

Jergens, Inc. Cleveland, OH

Lawrence Murray International Marketing Director

Jergens, Inc. Cleveland, OH

Sean Stapulionis General Manager

Jorgensen Conveyors, Inc. Mequon, WI

Chuck F. D'Amico Co-Principal/Director of Operations

Kennametal Evans, GA

Michael Ramsey Distributor Development

Koma Precision, Inc. East Windsor, CT

William T. Meo Jr. President

Kurt Manufacturing - Industrial Products Minneapolis, MN

Steve M. Kane Sales & Marketing Manager

LNS America, Inc. Cincinnati, OH

Brad Hasty National Sales Manager

LNS America, Inc. Cincinnati, OH

Damien F. Wenisch Director of Technology

M.A. Ford Mfg. Co., Inc. Davenport, IA

Judy Brauer Senior Marketing and National Accounts Manager

MAG Americas Hebron, KY

Mark Logan VP Business Development and Marketing

MAG Americas Erlanger, KY

Jonathan D. Towner Business Intelligence Manager - Americas

Makino Inc. Mason, OH

Donald D. Lane CEO

Makino Inc. Mason, OH

Mark G. Rentschler Marketing Manager

Master Chemical Corporation

David Barned

Page 5 of 12

10/9/2009

Perrysburg, OH

Global Marketing Manager

Mastercam/CNC Software, Inc. Tolland, CT

Gary Hargreaves VP, Business Development

Master Work-Holding, Inc. Morganton, NC

Michael Powell President

Mayfran International Cleveland, OH

Gregory Strosaker VP Product Management & Marketing

Mazak Corporation Florence, KY

Charles R. Birkle Vice President, Sales & Marketing

Mazak Corporation Florence, KY

Brian J. Papke President

Methods Machine Tools, Inc.-MA Sudbury, MA

Bryon G. Deysher President/CEO

Milltronics Manufacturing Company Waconia, MN

Bill Bender International Sales Director

Milltronics Manufacturing Company Waconia, MN

Diane L. Cedarberg Marketing Manager

Mori Seiki USA, Inc. Hoffman Estates, IL

Thomas R. Dillon President, Mori Seiki USA

Mori Seiki USA, Inc. Hoffman Estates, IL

Dana Super Marketing Manager

Novi Precision Products, Inc. Brighton, MI

Ronald S. Karaisz II President

Okuma America Corporation Charlotte, NC

Ernest L. Long CMTSE Director, Sales Operations

Okuma America Corporation Charlotte, NC

Larry G. Schwartz President and Chief Operating Officer

OMAX Corporation Kent, WA

John B. Cheung Chief Executive Officer

Optical Gaging Products, Inc. (OGP)

R. Stephen Flynn

Rochester, NY

President

Parlec, Inc. Fairport, NY

David Hartman Product Manager - Rotating Products

Penn United Technology, Inc.

Rick D. Pollick

Page 6 of 12

10/9/2009

Cabot, PA

Marketing Manager

Penn United Technology, Inc. Cabot, PA

Jerry R. Purcell Vice President of Operations

Penn United Technologies, Inc. Cabot, PA

Jerald Smathers Chief Financial Officer

Peter Wolters of America Inc. Des Plaines, IL

David E. Suica President

Preco, Inc. - Corporate Headquarters Lenexa, KS

Timothy J. Burns President/CEO

Preco, Inc. - Corporate Headquarters Lenexa, KS

Jack T. Pierson Jr. Chairman

QinetiQ North America/Foster-Miller Waltham, MA

Edward J. Goldman Senior Vice President

Sandvik Coromant Company Fair Lawn, NJ

Johan Israelsson President, Sandvik Coromant USA

Sandvik Coromant Company Fair Lawn, NJ

John D. Jacobsen Director, Business Intelligence

Sandvik Coromant Company Fair Lawn, NJ

Brian Norris Vice President, Marketing

Seco Tools Inc. Troy, MI

Robert B. Carson Jr. Manager, Distribution & Business Development

Seco Tools Inc. Troy, MI

Kurt Nordlund President

Seco Tools Inc. Troy, MI

Luciano Novacco Director of Sales

Sescoi Inc. Southfield, MI

Tim Bell Sales Director - North America

SGS Tool Company Munroe Falls, OH

Edward L. Boggs III VP International Sales & Marketing

SGS Tool Company Munroe Falls, OH

Thomas J. Haag President & CEO

Siemens Norcross, GA

John Krasnokutsky Marketing Manager

Page 7 of 12

10/9/2009

Siemens Elk Grove Village, IL

Ryan Legg Product Manager

Star Cutter Company Farmington Hills, MI

Bradley L. Lawton President

T-Drill Industries Inc. Norcross, GA

James K. Peters President

Thielenhaus Microfinish Corp. Novi, MI

Fred G. Becker Director of Sales & Marketing

Toyoda Machinery USA Wixom, MI

Jim Kletzien VP & General Manager

Toyoda Machinery USA Arlington Heights, IL

Timothy J. Leoni Vice President - Sales

Toyoda Machinery USA Arlington Heights, IL

Howard W. Michael President & COO

Ultra Tech Machinery, Inc. Cuyahoga Falls, OH

Willie R. Eichele Director of Sales

Ultra Tech Machinery, Inc. Cuyahoga Falls, OH

Robert A. Hagarty Vice President

United Grinding Miamisburg, OH

Tim McMurdo Marketing Manager

Vektek, Inc. Saint Joseph, MO

Troy Estes President

Vektek, Inc. Saint Joseph, MO

Rodney E. Nelson Vice President of International Sales

Vibro/Dynamics Corporation Broadview, IL

Harold E. Reinke President

ZPS America LLC Indianapolis, IN

Olaf Tessarzyk Managing Partner, President

Non Member II-VI Incorporated Saxonburg, PA

Daniel Smyers Director of Sales and Marketing

dgs Marketing Engineers

Marc Diebold

Page 8 of 12

10/9/2009

Fishers, IN

President & CEO

Fanuc America Corporation Hoffman Estates, IL

Ed Hascup GM, Marketing & Sales

McCallum Research Beverly Hills, MI

Edward D. McCallum III President

Nook Industries, Inc. Cleveland, OH

Scott A. Boyle CFO

Society of Manufacturing Engineers Dearborn, MI

Gregory S. Sheremet Publisher

Southern Manufacturing Technologies, Inc. Tampa, FL

Roy Sweatman President

Today's Medical Developments Richfield, OH

Joseph DiFranco Group Publisher

Wilson Tool International White Bear Lake, MN

Jeff Paulson Marketing Manager

Guest Bloodhound SSC. London, United Kingdom

Patricia Frith Personal Assistant

Speaker AMT - Chennai Tech Centre Guindy, Chennai - 60032, India

Arun Mahajan General Manager - CTC

AMT - Mexico Office Monterrey, NL

Carlos G. Mortera General Manager

AMT - Shanghai Office Shanghai, Peoples Rep. of China

Sean Jiang Regional Manager

ASD International Novi, MI

Daniel Conrad President

B2B Portales Miami, FL

Alfredo Domador Operations & Marketing VP

Bloodhound SSC. London, United Kingdom

Richard Noble Project Director

Ellison Technologies - Southern California

J. E. Ellison

Page 9 of 12

10/9/2009

Santa Fe Springs, CA

Chairman

Eriez Magnetics Erie, PA

Charles Ingram VP Sales & Marketing

Gardner Publications, Inc. (GPI) Cincinnati, OH

Richard G. Kline Jr. Publisher

Gardner Publications, Inc. (GPI) Cincinnati, OH

Richard G. Kline Sr. President

Gardner Publications, Inc. (GPI) Cincinnati, OH

Steven Kline Jr. Director of Market Intelligence

IRN, Inc. Grand Rapids, MI

Kim Korth President

JP Consulting Phoenixville, PA

Jean-Paul Burtin President

Laboratory for Manufacturing and Sustainability Berkeley, CA

David A. Dornfeld Director

Longbow Securities Independence, OH

Eli S. Lustgarten Senior Vice President

MAG Americas Erlanger, KY

Bill A. Horwarth President MAG Americas

Marketing Solutions by Cesson San Diego, CA

Philippe Cesson

MRD Solutions Eastlake, OH

John W. Fedor Director

National Tooling & Machining Association Fort Washington, MD

Rob Akers Operating Manager

Oxford Economic USA Oxford, UK

John Walker Chairman

Teal Group Corporation Fairfax, VA

Richard Aboulafia Vice President, Analysis

The Center for Generational Studies Aurora, CO

Robert W. Wendover Managing Director

United Grinding Miamisburg, OH

Rodger Pinney President & CEO

Page 10 of 12

10/9/2009

AMT Staff AMT - The Association For Mfg. Technology McLean, VA

Taimur Baig Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Kimberly L. Brown Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Peter R. Eelman Vice President - Exhibitions & Communica

AMT - The Association For Mfg. Technology McLean, VA

Paul H. Freedenberg Vice President - Government Relations

AMT - The Association For Mfg. Technology McLean, VA

Kathryn E. Fritz Membership Manager

AMT - The Association For Mfg. Technology McLean, VA

Julie A. Germain SIR Project Manager

AMT - The Association For Mfg. Technology McLean, VA

Bonnie T. Gurney Director, Communications

AMT - The Association For Mfg. Technology McLean, VA

L. Knox Johnstone Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Malcolm S. Mason Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Jacquelyn McFarland Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Patrick W. McGibbon Vice President-Strategic Info & Research

AMT - The Association For Mfg. Technology McLean, VA

Christine T. Rasul Vice President - Meetings & Conferences

AMT - The Association For Mfg. Technology McLean, VA

Desiree Richard Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Dominika G. Skarka Meetings Manager

AMT - The Association For Mfg. Technology McLean, VA

Ian S. Stringer Industry Analyst

Page 11 of 12

10/9/2009

AMT - The Association For Mfg. Technology McLean, VA

Jeffery H. Traver Vice President - Business Development

AMT - The Association For Mfg. Technology McLean, VA

Russell K. Waddell Industry Economist

AMT - The Association For Mfg. Technology McLean, VA

Mario C. Winterstein Business Development Director

AMT - The Association For Mfg. Technology McLean, VA

Douglas K. Woods President

Page 12 of 12

10/9/2009

PINNEY - OPENING REMARKS

OPENING REMARKS Rodger Pinney, President & CEO, United Grinding

AMT Economics & Statistics Committee Chairman Rodger Pinney welcomes everyone to the 38th annual Forecasting & Global Marketing Conference. Produced and managed by AMT – The Association For Manufacturing Technology, the conference is co-sponsored by the American Machine Tool Distributors’ Association in an effort to strengthen networking opportunities.

Rodger Pinney joined United Grinding, a member of the international Körber Schleifring Group, as its President and CEO in December of 1997. He is responsible for directing the company's overall strategic, tactical, and operational developments with a focus on continuous business growth, sustainable profitability, and industry-leading customer satisfaction. Prior to joining United Grinding, Rodger gained valuable machine tool industry experience first as Vice President of Sales and Marketing for Hurco Manufacturing and subsequently as the Vice President and General Manager at Emco Maier Corporation. His passion for ensuring North American manufacturing remains strong is exemplified by his being Chairman of AMT’s Economics and Statistics Committee, Co-Chairman of AMT’s Joint Statistics Committee, and a member of the board of directors for the American Machine Tool Distributors’ Association. Rodger holds undergraduate degrees in electrical engineering, mechanical engineering and business administration. He has also completed graduate studies in business administration.

United Grinding 510 Earl Boulevard Miamisburg, OH 45342-6411 Telephone: 937-847-1202 E-mail: [email protected] www.grinding.com

Global Forecasting & Marketing Conference

Welcome To The 2009 Global Forecasting & Marketing Conference

Rodger Pinney

Opening Remarks

1

Global Forecasting & Marketing Conference

Rodger Pinney President and CEO United Grinding Technologies

Chairman AMT Economics and Statistics Committee Co-Chairman AMT-AMTDA Joint Statistics Committee Member AMTDA Board of Directors

Rodger Pinney

Opening Remarks

2

Global Forecasting & Marketing Conference

Successfully Charting Your Business’ Future…. Seeking Certain Information for Uncertain Times Rodger Pinney

Opening Remarks

3

Global Forecasting & Marketing Conference

So Many Economic Factors…Which Are Most Important to Use? Global Economic Forecasts

DJIA

Emerging Markets

Energy

Health Care Reform

Exports and Imports

Currency Rates

Federal Reserve Interest Rates

GDP

Machine Tool Consumption Credit Rates Rodger Pinney

Going Green

Opening Remarks

Housing Recovery Manufacturing Unemployment

4

Global Forecasting & Marketing Conference

%ULQJLQJ,W$OO7RJHWKHU«$W2QH3ODFHDQG2QH7LPH

$Q([FHOOHQW$VVRFLDWLRQ3DUWQHUVKLS)RFXVHG2Q$VVLVWLQJ $75 million) to be ploughed back in the form of sourcing equipment and services from India. MRO – 100% FDI permitted under automatic approval route.

7

AMT- CHENNAI TECHNOLOGY CENTRE

INDIA AS MANUFACTURING DESTINATION ADVANTAGE

 High Domestic aircraft demand

 Offset Requirements

 Cost advantages  Talent Pool  Leveraging IT competitiveness 8

AMT- CHENNAI TECHNOLOGY CENTRE

AVENUE SEGMENTS IN AEROSPACE INDUSTRY

Aero structure elements + mechanical assembly systems 1.

2.

Avionics + testing equipment

3.

Precision machined parts

4.

Design & engineering services 9

AMT- CHENNAI TECHNOLOGY CENTRE

STRUCTURAL ELEMENTS + OTHER MECHANICAL ASSEMBLY SUPPLIERS

ELASTOMERIC ENGINEERS

TRIVENI HITECH PVT LTD

VARMAN AVIATION

10

AMT- CHENNAI TECHNOLOGY CENTRE

AVIONICS & CONTROLS + TESTING INSTRUMENTS SUPPLIERS

genser aerospace MAP SYSTEM (INDIA) PRIVATE LIMITED

11

AMT- CHENNAI TECHNOLOGY CENTRE

PRECISION MACHINED PARTS- SUBSUPPLIERS STEEL & INDUSTRIAL FORGING Thread Gauge Products Pvt. Ltd. Super Industrial Components TECHNO TOOLS Turbocam India Pvt. Ltd. Kumaran Industries Pvt. Ltd.

Unique Instruments & Manufacturers

MAINI PRECISION PRODUCTS BASHI AEROSPACE PVT. LTD

Vishnu Forge Industries Ltd 12

AMT- CHENNAI TECHNOLOGY CENTRE

DESIGNING + ENGINEERING SERVICES PROVIDERS

Plexion technologies Pelorus consulting

13

AMT- CHENNAI TECHNOLOGY CENTRE

OPPORTUNITIES IN HELICOPTER SEGMENT



India invited bids for 22 attack and 15 heavy lift helicopters worth around $2 billion.



Tata Advance Systems Ltd.) ties up with Sikorsky (U.S.-based helicopter mfg. co.) to manufacture fuselage of S-92 helicopters in India. Deal has been struck for $350 million and plant is coming up in an SEZ at Hyderabad. First 19-seater S-92 aircraft would be delivered by end of 2010. 14

AMT- CHENNAI TECHNOLOGY CENTRE

OPPORTUNITIES IN SPACE PROGRAM

• First manned mission to moon by 2020. Project is likely to attract an investment of $3 billion. • ISRO is going to double the capacity for commercial launching of various foreign satellites. • Raytheon awarded $85 million contract for building the ground stations for the GPS aided Geosynchronous Augmented Navigation System. • $1 billion has been allocated to ISRO to work upon GSLV Mark III for launch of four ton communication satellites. 15

AMT- CHENNAI TECHNOLOGY CENTRE

OPPORTUNITIES IN DEFENSE AIRCRAFTS



Trial for procurement of 126 multirole combat aircrafts is in process. This is decade’s largest defense deal valuing around US $12 billion. Eighteen aircrafts would be procured on fly-away basis and remaining would be built up by HAL under the license.



Airbus is planning to set up a final assembly line (FAW) at Karnataka/Tamil Nadu with an estimated investment of $600 million.

16

AMT- CHENNAI TECHNOLOGY CENTRE

OPPORTUNITIES IN MRO SECTOR

Boeing forms JV with Air-India for MRO in Nagpur. The project is expected to be completed by end of 2011 and will have two hangers suitable for wide-bodied 777s & 787s. Total investment planned is $100 million. HAL TIMCO to set up airframe MRO facility at HAL’s Bangalore Airport. EADS ties up with National Aerospace Co. Ltd. to start MRO facility. Total investment planned is $40 million. 17

AMT- CHENNAI TECHNOLOGY CENTRE

HINDUSTAN AERONAUTICS LIMITED DIVISIONS

18

AMT- CHENNAI TECHNOLOGY CENTRE

19

AMT- CHENNAI TECHNOLOGY CENTRE

PROJECTS – AEROSPACE SECTOR 1)

SAAB and TAML sign agreement for components manufacture Tata Advanced Material Ltd & Saab have signed a business agreement for manufacture of structural composite components. The agreement is for a period of four years for manufacture of composite components for one of Saab's commercial programs. TAML is engaged in Design, Manufacture & Supply of Composite components & subassemblies for Aerospace, Defence & Industrial applications.

2) India

AgustaWestland And Tata Sign MoU For AW119 Helicopter Assembly In

AgustaWestland, a Finmeccanica company, and Tata announced the signature of a Memorandum of Understanding (MoU) for the formation of an Indian joint venture company which will establish a final assembly line for the AW119 helicopter in India. 3) GMR-HIAL & MAS Aerospace Engineering seal agreement for MRO JV GMR Hyderabad International Airport Ltd. (GHIAL), and MAS Aerospace Engineering (MAE), a wholly-owned subsidiary of Malaysia Airlines sealed an agreement to set up a 50:50 joint venture Airframe Maintenance, Repair and Overhaul (MRO) company in Hyderabad. 4)

HAL receives order for manufacturing doors from Airbus Industries (HAL) has received an order from aircraft manufacturer Airbus Industries for the supply of 2,000 doors for its single aisle family of aircraft. Net worth of order is around US $150 million. 20

AMT- CHENNAI TECHNOLOGY CENTRE

PROJECTS – AEROSPACE SECTOR Cont’d 5)

Tata in JV with Israeli firm for defence aerospace unit Tata has formed a joint venture with Israel Aerospace Industries (IAI) for setting up defence aerospace manufacturing facilities in the AP SEZ. The JV- Nova Integrated systems Ltd would design, manufacture and integrate advanced defence and aerospace systems with transfer of technology from IAI. The project would see an initial foreign direct investment of $50 million

21

CONRAD

DEVELOPING BUSINESS AT NEW DOMESTICS/ TRANSPLANT COMPANIES Daniel P. Conrad, President, ASD International If your company is interested in gaining access to transplant companies in the U.S., this session will give you the information you need to know to walk through the process from initial contact to having a purchase order in hand.

In 2002, Mr. Conrad formed ASD International Inc., located in Michigan to provide business development services for both Japanese and American companies wishing to accelerate their selling efforts in Japan and North America. Previously, Mr. Conrad had successfully established and managed a Tokyo office for Unova Industries Inc., as Vice President and General Manager. In his role as senior executive of the Tokyo office, he expanded the company sales of automation and metal cutting equipment in a highly competitive market to over $20M per year with companies including Toyota, Nissan, Isuzu and Honda. Following his efforts in Japan, he returned to the States as Vice President of Asia Sales and successfully secured a $50M purchase order from Hyundai for their new plant in Montgomery, Alabama. With his in-depth knowledge of Japanese and Asian Business Culture gained from twenty-one years of living and working in Japan, Mr. Conrad also was able to develop high-level executive relationships throughout Japan that allows ASD International to quicken the pace of business development efforts for companies focused on top-line growth. Through these connections and his knowledge of the Asian Business market, he has successfully set up Asian distribution including Thailand, Taiwan, Malaysia, Korea and Singapore along with establishing Joint Ventures, licensing and acquisitions. Previously, Mr. Conrad held an International Sales position for Valenite, an international tooling division of GTE, leading the company to its expansion of sales and manufacturing in Japan. Prior to GTE, Mr. Conrad gained a 55% sales increase for ODETICS Inc, located in Anaheim, California, for their international sales of security equipment. Besides his business development efforts, Mr. Conrad has often provided seminars for area companies looking to broaden their understanding of doing business with Asian companies and has conducted training for several international firms. He is a member of the American Chamber of Commerce in Japan as well as the Japan Chamber of Commerce Mr. Conrad has a BA from the University of Hawaii, Japanese language and business degrees from Nanzan University in Nagoya Japan and Masters Studies from Bethel University.

ASD International 3829 Elk Drive Rochester Hills, MI 48036 Telephone: (248) 601-2229 Fax: (248) 601-9551 E-mail: [email protected] www.asdintl.net

DEVELOPING BUSINESS WITH JAPANESE FIRMS

BACKGROUND • With over 20 years of living and working in Japan, Daniel Conrad has successfully gained access to some of the top level players in the automotive and manufacturing industries in Asia • ASD provides a solution to not only gaining access to the right people, but has secured sales within various industries in Asia and within the New Domestics. • Japan is still a large player in the machine tool industry, however, we see more and more from China and South Korea. • The economies have changed drastically over the last 12 months and companies are changing their business ways.

Nominal GDP (millions of USD)

Manufacturing Investments

Present Manufacturing Sales

Creating a Strategy • First, a company must have a well-defined strategy that focuses on the New Domestics. • We must look at the strategy the way the New Domestics look at it – long term and short term. • The key ingredient is creating trust. • Will having a strategy and a relationship make a difference in this economy? • Is it worth the time and energy for 2009 and beyond – what can you expect?

How to Win in 2009 / 2010 What new action must take place, or do you continue doing what we have for 2009 / 2010? • New Domestics are looking at new ways to save money and be more green. • Let your clients know that you are taking steps in your own organization to cut costs. • Recycling is a key word. • Many seem to be most interested in cost, but is that the final word?

How to Win in 2009 / 2010 Talk to the right person – how do you know who is the right contact? • Engineering managers are key in Japanese organizations – in the U.S., start with the local manager, but you must talk to the Japanese staff member as well. • Japan HQ is very important for large or new programs. Japan will still make decisions in many cases. • Create a relationship / friendship with key person. • Should you consider an agent or go direct?

How to Win in 2009 / 2010 • Once you make the right contacts, what’s next? – Show your product quality and uniqueness of your organization – are you global? – Can you show how they can save money – ROI within one year? – Offer services beyond the norm: • Extended warranty periods • Innovative financing • Extended trial periods at no charge

How to Win in 2009 / 2010 Can you go after new sales or concentrate on servicing existing equipment – refurbishing? • Toyota is looking for used equipment at all of its plants globally for Alabama. • Toyota has asked its suppliers to cut costs by 50%. • Honda has cut its budget by more than 50%. • Suppliers are looking for help. • If you have a unique product and can show the benefits to their bottom line, you will be in a good position for 2010. • Start with something small.

How to Win in 2009 / 2010 • 2010 looks to be promising – or is it? – Toyota Thailand, China, Brazil and India are increasing. – Toyota still does not see many increases in 2010. – Nissan is doing very well in China. – Nissan is building an Electric Vehicle now. – Honda has a long term strategy and doing good with the new hybrid and new economical vehicles. – Suppliers to the New Domestics are all waiting for the upturn. – Machine Tool suppliers are hurting the most.

How to Win in 2009 / 2010 • How to secure a Purchase Order: – Be patient but persistent. – Talk to the right people including Japanese in the U.S. and Japan if needed. – Be willing to go beyond the norm. – Have the right product for their needs. – Have the right price. – Be sure you can offer maintenance and local servicing – many times at no charge. – Be prepared to give further discounts after the agreement.

How to Win in 2009 / 2010 • How to secure a Purchase Order: – Have quick response times. • 2 weeks on quotes and 1 week on re-quotes or changes

– Communication is key. • E-mail is good, calling is good, face to face is best. • If you can offer discussions in Japanese, it is a benefit and very helpful.

How to Win in 2009 / 2010 • What matters most? – Price is key for 2009/2010. – With a weak dollar, buying “American” is a cost savings (Toyota can make money at Y90 / $1). – Show good service and keep up the relationships you have started.

• What will this cost you? – Cost of entry for the first time can be high but once in, Japanese companies will continue working with you. Now is the best time before everyone comes in.

How to Win in 2009 / 2010 • How long will this take you? – Depending on the program, it can take as little as a couple of months to a couple of years. – With an existing relationship, it will be faster and a smaller program will be faster. – A larger program can take much longer, yet with a good strategy and a “stick to it” attitude, a purchase order can come much faster. – If you can use a source with good contacts, this can also speed up the process.

How to Win in 2009 / 2010 • Are there variations between companies? – Toyota, Nissan, Honda and suppliers all have uniqueness of their own • Toyota is very conservative. • Honda is very independent (Honda Engineering). • Nissan is open to foreign companies, but servicing is key.

– In general, most Japanese companies operate similarly.

Summary • Within the last 6 months, many companies have cut back drastically on placing any new orders. • The next 12 months will see companies starting to place more orders but will be much more conservative than previous years. Pricing will be key. • Saving money will be a key phrase • We should continue to build the relationships, as they will last and be there when the economy starts to shine. • You must have a long term approach and be willing to make some sacrifices in the beginning, and you will win.

BURTIN

MANUFACTURING OUTLOOK FOR THE ORTHOPEDIC DEVICE MARKET Jean-Paul Burtin, President, JP Consulting

Jean-Paul Burtin, President of JP Consulting, will use his many years of experience in the world of medical devices to educate us about the market today. He will break down the market geographically and explain the impact of various market drivers such as growth, consolidation, segments, and technologies. This information will be put into an understandable framework, and the past and present will be used to make projections about the future.

Jean-Paul Burtin provides marketing & sales consulting services for the Orthopedic Industry worldwide. His main areas of expertise are strategic marketing, marketing communications, international business, M&A, search for new technologies, product licensing and distribution networks. Prior to founding JP Consulting with offices in Phoenixville, PA and Paris, France last January, Jean-Paul worked 17 years in the orthopedic industry as an executive, both on the OEM and the supplier sides with companies like Landos (DePuy), Aesculap Inc., Encore Medical and Tecomet. During his 40 year career, Jean-Paul also worked in other Medical Device fields namely in Hemodialysis and blood cell counters. Jean-Paul has been in the U.S. for 18 years and worked in various states including Colorado, New Jersey, Pennsylvania, California, Texas and Massachusetts. Prior to moving to the U.S., Jean-Paul worked in Brazil, Switzerland, Canada and France. Jean-Paul holds a Bachelor of Science in Chemistry from the University of Lyon, France. He is a member of the Institute for Orthopaedics™ and he served several years as a member of the Exhibitor Advisory Board of the American Academy of Orthopedic Surgeons and of the French-American Chamber of Commerce in Philadelphia.

JP Consulting 40 Amherst Court Phoenixville, PA 19460 Tel: 610-933-8171 Fax: 610-933-7626 E-mail: [email protected]

2009 Global Forecasting & Marketing Conference Hilton Orlando Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market - Segments ƒReconstruction Devices: Hip, Knee, Shoulder, Upper

extremity, Foot & Ankle

ƒTraumatology: Fracture Repair ƒSpine: Fusion, Motion Preservation, Vertebral Fractures, Deformations

ƒArthroscopy/Soft Tissue Repairs: Also called “Sports Medicine”

ƒOrthobiologics: Biomaterials, Growth Factors, Bone

Substitutes

ƒOther: Power Tools, Casting/Bracing systems, Soft Goods, Cement,

Cement mixing systems, Pulsed Lavage/Irrigation systems, Bone Growth Stimulators, Image Guided Surgery systems, Diagnostics, etc.

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Musculoskeletal Diagnoses - Facts ƒ ƒ ƒ ƒ ƒ ƒ

Musculoskeletal conditions (150 diseases) are among the most costly illnesses to treat ($254 billion in the U.S.) One in 5 adults in the U.S and one in 10 Canadians suffer with osteoarthritis (OA) Knee osteoarthritis is as disabling as any cardiovascular disease (except stroke) More than 50 million fractures occur worldwide every year 32% of people over 18 are limited in their activity due to chronic back pain Cost to treat back pain conditions exceed $100 billion/year worldwide Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Marketplace vs. Demographics Population

Market Distribution

18%

82%

18% US-EuropeJapan ROW

US-EuropeJapan ROW

82%

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Market Dynamics - Drivers „ „ „ „ „ „ „ „ „ „

Demographics: volume – worldwide, life style (“Baby Zoomers”) New Products / Technologies: US, Europe, Japan New Surgical Techniques: US, Europe, Japan (MIS, CAS, Robotics) New Materials Revision Surgery: (mostly Western World) Spinal Surgery: huge demand worldwide Trauma: regular growth “Globesity” Availability of information: Web, DTC Ads, Rapid development of certain countries (China, India, etc.)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™ Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Market Dynamics: Restraints „ „ „ „ „ „

Cost Containment pressure on healthcare systems worldwide Uncertainties around availability and increasing cost of raw materials Preventive measures and prescription of non-surgical treatments reduce number of procedures Uncertainty in reimbursement of new products/technologies Cost of R&D and regulatory constraints impedes/delay the introduction of new products Intense competition requires a high level of product differentiation and shorten product life cycle

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market - Consolidation Trend 2006 OEMs

2007

2008

20 transactions 20 transactions 22 transactions for approx. for approx. for approx. $6,500MM $16,000MM $3,200MM

Contract 4 transactions Manufacturing for approx. $100MM

13 transactions 5 transactions for approx. for approx. $420MM $350MM

2009? Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide Sales ($billion) by Segment & Region Segment

U.S.

Ex-U.S. Total

Change vs. 2007

Reconstructive Devices

$6.7

$6.0

$12.7

9.0%

Trauma

$2.6

$2.3

$4.9

12.7%

Soft Tissue Repair / Arthroscopy

$1.9

$1.3

$3.1

9.8%

Spinal Implants / Instrumentation

$4.6

$1.9

$6.5

13.0%

Orthobiologics

$2.7

$1.0

$3.7

8.8%

Other

$3.1

$1.7

$4.9

6.3%

Total Market

$21.7

$14.0

$35.7

9.9%

Change vs. 2007

9.4%

10.6%

9.9%

(Source: Orhoworld Inc.)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market - Growth by Segment 16 Reconstruction

14 12

Trauma

CAGR:13.3%

10

Spinal

8 6 4

Arthro/Soft Tissue repair

2

Orthobiologics

0

11 20

20

09

07 20

20

05

03 20

01 20

19

99

Others

Source: JP Consulting/Orthoworld

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Main Players – 2008 Revenues & Market Share Others $9,836 27.6%

Stryker $5,547 (4) 15.5%

J&J-DePuy $4,518 12.7%

(1) (2) (3) (4)

Biomet $2,093 (3) 5.9%

S&N/Plus Synthes $2,959 (2) $3,193 8.3% 8.9%

Medtronic $3,642 (1) 10.2%

Spine/CMF Only Includes Soft Tissue Repair Excludes Dental Excludes non Ortho Products

Zimmer $3,894 (3) 10.9% Others: Includes more than 100 companies

Source: Medtech Insight / JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide Joint Reconstruction Sales Revenue by Segment ($ Million) Other Joints 300

Shoulders 500

Knees Hips Shoulders Other Joints Knees 6,500

Hips 5,400 Source: Knowledge Enterprises

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Trends by Segment „

Reconstruction „ Mature market (except for shoulder and upper extremity) „ Will enjoy steady growth (7 – 9% CAGR) over next 5 years „ Hip and Knees becoming commodity products „ Knees: Outpacing Hips (driven by

“Globesity”)

„ Pressure on prices worldwide „ Major consolidation process is (almost) over „ More and more need for differentiation on the

manufacturer side, but based upon existing technologies „ MIS difficult to implement due to type/size of implants „ CAS/Robotic will boost number of surgeries helping surgeon training Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Joint Reconstruction Procedures by Product & Region Country

World

Joint Replacement

U.S

2,717,000 1,359,000

Europe

Japan

ROW

802,000

263,000

293,000

Hip 1,378,000

559,000

510,000

122,000

187,000

Knee 1,100,000

711,000

210,000

94,000

85,000

Shoulder

118,000

60,000

37,000

12,000

9,000

Other Joints

121,000

29,000

45,000

35,000

12,000

Source: Medtech Insight / JP Consulting

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market $Billion

2008 Worldwide Joint Reconstruction Sales History & 3 Year Forecast

16 14 12 CAGR: 12.2%

10 8 6 4 2 0 1999

2001

2003

2005

2007

2009

2011

Source: Knowledge Enterprises/JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Joint Reconstruction Segments U.S Forecast (Units in 000) 2008-2012 1000 900 800 700

Hips Knees Shoulders Small Joints

600 500 400 300 200 60

100

68 36

29

76

84 41

93 51

45

Global CAGR: 7.40%

0 2008

2009

2010

2011

2012

Source: Medtech Insight

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide Trauma Sales by Segment ($ MM)

378 (7.8%)

940 (19.2%)

1,220 (24.9%)

External Fixation Plates/Screws IM Nails Hip Screws (Fractures) Pins/Screws (small bones)

1,012 (20.6%) 1,350 (27.5%) $4.9Billion Source: JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Trends by Segment „

Trauma „ Mature market „ Many implants have been commodity products for a long

time „ Innovation in the upper extremity segment (small bones) „ Advancements in plates (locking plates) and nails „ Development of non-metal implants: bioresorbable (Polylactic-polyglycolic), composites, polymers (PEEK) „ Will enjoy growth in the low double digit range for the next 5 years (Osteoporosis, China boosting # of traffic accidents) „ Pressure on prices will continue Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide and U.S. Trauma Procedures Procedure

External Fixation

Plates Screws (internal fixation)

IM Nails (internal fixation)

Hip Screws (hip fractures)

Small Bones Fixation (1)

U.S.A.

223,000

527,000

476,000

342,000

618,000

Ex-U.S.A

280,000

661,000

597,000

510,000

775,000

Total

503,000

1,188,000

1,073,000

852,000

1,393,000

(1) Small plates + screws / pins /small screws

~5MM Procedures

Source: Windhover Information / JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide Trauma Sales History & 3 Year Forecast $Billion 7 6 5 4

CAGR: 14.9%

3 2 1 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: JP Consulting

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Ex-US and U.S. Trauma Procedures / Forecast Procedures (000) / $ (MM) 4,000 3,500 3,000 2,500 2,000 1,500

CAGR: 7.3% CAGR: 4.2%

1,000

CAGR: 4.2%

CAGR: 7.3%

Ex-USProcedures

Ex-US ($)

2007 2008 2009 2010 2011 2012

500 0 USProcedures

US ($)

Source: Windhover Information / JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market 2008 Worldwide and US Spine Procedures Instrumented Fusions (cages, spacers, rods, hooks, pedicle screws)

Motion Preservation (Discs)

Fracture Fixation

Total

U.S.A.

438,330

5,070

247,000

690,400

Ex-U.S.A

166,520

1,650

93,850

262.020

Total

604,850

6,720

340,850

952,420

Procedure

~1MM Procedures Source: Windhover Information / JP Consulting

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market US and Ex-US Spine Procedures Forecast 600,000 500,000 400,000

2007 2008 2009 2010 2011 2012

300,000 200,000 100,000 0 US (Fusions) US (Fractures)

Ex-US (Fusions)

Ex-US (Fractures)

CAGR Fusions: 4.5% / CAGR Fractures: 20.7% Source: Windhover Information / JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Ex-US and U.S. Spine Sales Forecast ($MM) 9,000 8,000

CAGR: 11.8%

7,000 6,000 5,000

Ex-US Sales US sales

4,000 3,000 2,000 1,000 0 2006

2007

2008

2009

2010

2011

Source: UBS / JP Consulting / Orthoworld

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Trends by Segment „

Spine „ Growing Market „ Will enjoy growth in the double digit range for the next 5

years (the most prevalent medical disorder in industrialized societies) „ Prices will remain high although slightly declining „ Increased adoption of MIS/CAS. „ Future growth will come with 2nd generation discs (non metal nucleus replacement), revision products, facet replacement „ Development of non-metal implants: bioresorbable (Polylactic-polyglycolic), composites, polymers (PEEK), biogels Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Market Main Players by Segment / Market Share Reconstruction

Zimmer 25%

DePuy 21%

Stryker 18%

S&N 11.5%

Biomet 11%

Trauma

Synthes 43.2%

Stryker 17.8%

S&N 8.7%

DePuy 4.7%

Zimmer 4.5%

Medtronic 39.3%

DePuy 13.5%

Synthes 12.6%

Stryker 8.6%

Aesculap & Nuvasive 3.9%

Spine

Source: JP Consulting

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Market Structure

Raw Material Supplier

Contract Manufacturer

O.E.M.

Provider

Patient

Payer

Manufacturing Technology Producers

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Industry Regulatory Aspects „

„

Before 2007 „ FDA would enforce compliance with QSR (former GMPs) with both OEMs and Contract Manufacturers „ ISO would also enforce compliance with both After 2007 „ FDA is enforcing compliance with QSR with OEMs only „ OEMs are held responsible for compliance of their suppliers with QSR „ ISO keeps enforcing compliance with both OEMs and Suppliers „ OEMs have been strongly pushing suppliers to comply with the same level of compliance as their own, leading for example most suppliers to comply with ISO 13485

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

The Orthopedic Industry Implant Manufacturing „ „

„ „ „ „

Some processes are mostly outsourced (Forging, Casting, Coating, Sterilization, etc.) Some OEMs tend to retain a maximum of work in house (Synthes, Biomet) whereas some, like DePuy, Medtronic tend to outsource more and more and sell plants to suppliers (4 recently) Less off-shore low labor cost outsourcing compared to instruments Main Processes: Forging, Casting, Milling, Coating, Polishing, Grinding, Wire EDM Proprietary processes are of course performed in house 25% are outsourced by OEMs

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Example of Hip Components

Modular Hip Stem Ceramic-Ceramic Acetabular Cup

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Examples of Knee Components

Tibial Tray

Unicondylar

Total Knee

Patella Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Upper & Lower Extremities Implants

Ankle Shoulder

Elbow

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Examples of Small Bones Implants

Finger Joint

Staple

Great Toe Joint

Wrist Radial Head Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Trauma Implants

External Fixator

Cortical Screw

Cranial Mesh Cancellous Screw

Plate for Wrist Fracture

Locking Plate

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Examples of Spinal Implants

Lumbar Disc

Cervical Plate

Rod and Pedicle Screw

Pedicle Screws Spinal Hooks Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Cages for Lumbar Fusion Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Non-Metal Components / Implants Zirconia head Polyethylene (Patella)

Polyethylene (Tibial Tray)

PEEK Cages

Polyethylene Outside Co/Cr (metal-metal insert)

Polyethylene inside Co/Cr (Bipolar Cup)

PLLA Plates

Silicone Finger Joint

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

PLLA/PGLA Cervical Plates Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Instruments Manufacturing „

Many types of instruments „ Procedure Related: Impactors, Cutting Guides, Alignment Guides, Screw Drivers, Sizing Guides, Rod Cutters, Holders, Planers, Templates, etc „ Orthopedic Surgery Related: Mallets, Handles, Reamers, Broaches, Blades, Awls, Drill bits, Taps, Bone Mills, Rongeurs, Osteotomes, Chucks, etc. „ General Instruments: Retractors, Distractors, Scissors, Forceps, Curettes, Spreaders, Clamps, etc „ Power Instrument Systems: Drills, Saws

„

55% are outsourced by OEMs

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Instruments

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Instruments

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Instruments

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Power Instrument Systems

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Delivery Systems „ „ „ „ „

Trays and Containers Function: Deliver sterilized instruments/certain implants to the O.R. Materials: aluminum, various polymers Main Mfg Processes: metal forming, molding, extrusion, ink jet printing, assembly 90% are outsourced by OEMs

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Examples of Delivery Systems

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Major Manufacturing Processes in Orthopedics „ „ „ „ „ „ „ „ „ „ „ „

Design and Engineering Forging / Casting / M.I.M CNC Milling / Turning Porous Coating (Sintering, Plasma Spray) Swiss CNC Wire EDM Grinding Metal Forming / Bending Polishing Electro-polishing Finishing (Tumbling, Blasting) Tungsten Inert Gas Welding (TIGW)

„ „ „ „ „ „ „ „

„ „ „

Electron Beam Welding Photo-Chemical Etching Heat Treatment Anodizing / Plating Passivation/Ultrasound Cleaning Precision Assembly, Laser Marking Silicone Molding Polymer Processing (molding, extrusion, machining) Packaging / Labeling  / ETO Sterilization QC Procedures

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Common Raw Materials used in Orthopedics „ „ „ „ „ „

Titanium Alloys (Ti-6Al-4V, Ti-6Al-4V ELI, Ti-6Al-7Nb) Commercially pure Ti (CP-1-2-3-4) Co/Cr (Co-28Cr-6Mo, Cast and wrought) Stainless Steel (316 L) Oxinium (Zirconium + Oxidized Zirconium + Niobium) Polyethylene (UHMW) (machined, compression molded, cross-linked, vitamin E stabilized)

„ „

Delrin, Acetal, Radel, Ultem PMMA, Calcium-Phosphates (TCP, Hydroxyapatite)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

More Recent Materials used in Orthopedics „ „ „ „ „ „ „ „

Ceramics (Alumina-Yttrium, Alumina + ZrO2) PEEK (Polyetheretherketone) + PEEK/Carbon fibers Pyrolytic Carbon (upper extremity implants) Polylactic acid (PLLA), Polyglycolic acid resorbable copolymers Nitinol (Ti/Ni) (shape memory implants like staples) Silicone (small joints) Silicone Nitride (ceramic bearings for hip/knee/spine) Composites (polymer/metal, Ca-P/PLLA, polymer/fiber, carbon composites)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

New Materials „ „

Polyurethane (replacement of P.E., discs) Porous Ti (Tritanium™, Regenerex™, BioFoam™, Gription™,

Trabecular Titanium™, Stiktite™) „ Porous Tantalum (Trabecular Metal™) „ „ „ „ „ „

Polymers for resorbable scaffolds, spacers, tendons, ligaments Polyethylene Terephtalate (PET) (vesselplasty for VCF, mesh) Coatings: Nanowire coating on Ti, antibiotic coatings Hydrophilic Polymers (UHMWPE + Polysaccharide) Hydrogels (disc nucleus) Polycrystalline Diamond (Hip Bearings)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Manufacturing Spending (2008)

$2,430 27%

Outsourced

OEMs In-House

Contract Manufacturers $6,500 73%

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Capital Expenditure Company

Year

2008

2007

2006

$142MM (6.7%)

$109MM (5.4%)

2005

Biomet (*)

$190MM (8%)

$97MM (5.2%)

Wright Medical

$62MM (13.3%) $35MM (9.0%)

$29.6MM (8.7%) $30.4MM (9.5%)

Stryker

$95MM (2.4%)

$127 MM (3.5%)

$135MM (4.3%)

$183MM (6.4%)

Zimmer (*)

$250MM (6.0%) $192MM (5.2%)

$142MM (4.3%)

$105MM (3.3%)

Medium Size Supplier ($50MM)

$2.0MM (4.0%)

$1.0MM (2.2%)

$3.7MM (9.2%)

$3.0MM (7.0%)

Symmetry

22.8MM (5.4%)

$8.8MM (3.0%)

$20.3MM (8.3%) $37.5MM (14.4%)

(*) Capital Expenditures may not consist of purchased manufacturing equipment, research and testing equipment only; They may include computer systems, office furniture and equipment, and plant improvement. Source: Annual Reports

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

CAPEX Trends „ „ „

„ „

Largest investments in equipment are in the US and Europe (Ireland, Switzerland, UK, Germany, France) Both OEM and Suppliers also investing in China and India Nature of the business (medical), and need for automation require acquisition of most sophisticated and expensive equipment and renew them often (every 5 -7 years?) Market size assumption: 3 to 4% of Sales? ($1.0 to 1.5billion in 2008?) Impact of worldwide economy slow down in 2009 and further on?

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Outsourcing and OEMs Outsourcing is proving to be a vital strategic tool to OEMs which core competencies are R&D, Marketing, and Sales, by: ƒReducing or eliminating investments in new production

capacity and in employees ƒProviding manufacturing flexibility enhancing speed to market and generating cost reduction ƒProviding access to highly skilled labor ƒProviding access to services and technologies in the areas of delivery systems and specialized processes Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Outsourcing by Segments

Delivery Systems

Outsourced Insourced

Instruments Implants

0%

20% 40% 60% 80% 100%

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Outsourcing Trends „ „ „ „ „ „ „

Market expected to increase from 26% of OEM production costs in 2007 to 33% by 2012 Contract Manufacturers are adding capacity and capabilities Gradually transforming into OEM’s strategic partners On-going consolidation resulting in larger firms that dominate the market Competition intensifying within the US and with low labor countries (China, India, Vietnam, Malaysia, etc.) Attracting attention and capital from private investors Vendor consolidation trend is on-going (OEMs reducing their vendor basis)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Manufacturing Spending Forecast ($MM) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

OEM Contract Manufaturing

2007 2008 2009 2010 2011 2012

33%

26% Source: P&M Corp. Finance

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Outsourcing Market Value by Capabilities ($MM) 115 345

255

Forging

115 105

Casting Texturing/Coating Forming/Machining

140

Assembly Polishing

105

Polymer Machining

115 Screws

115

Delivery Systems

1020

Packaging/Ster.

Source: JP Consulting

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Threats to Traditional Manufacturing „ „ „

Slow but progressive replacement of metal by new materials Development of Cartilage transplant Resurfacing of partially damaged cartilage (Copolymers with similar properties like UHMWPE + polysaccharide

„ „ „ „ „

Potential cure for Osteoporosis (New drugs) Development of Tissue Engineering Development of Bone Substitutes Potential cure for Osteoarthritis (New drugs) Replacement of machined components by molded ones (P.E., ceramics, M.I.M,)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Change in Manufacturing „ „ „

„ „

Most facilities have implemented and will continue to implement cell / lean manufacturing Processing new materials (PEEK, Ca/P ceramics, PLLAPGLA, Bone (machined allografts) Highly (mirror) polished implants: Metal-on Metal and Resurfacing heads and cups, Co/Cr bearings (knee, disc, ankle) Processing new porous materials: porous Ti, porous Tantalum with implications on possible debris Processing more smaller implants for MIS, Spine, Small Bones

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Change in Manufacturing „

More and more CNC Machining Centers: „

Implementing more automation to cut on labor cost and compete with off shore manufacturing competition „ Unattended / Lights out manufacturing, MultiTasking, Done-in-One Machining „ Palletization, Automatic Feeders and Part Catchers „ High Capacity Tool Magazine (240 tools) „

Development of Robotics: Forging, Polishing

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

Introduction of manufacturing processes uncommon in this industry until recently „

Vapor Deposition „ Nano Technologies „ Rapid Metal manufacturing (EBM) „ Application of Anti-Bacterial Coatings „ Implementation of Radio Frequency Identification (instruments) Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

Incorporation of sensors, micro-electronics into implants (discs, rods) „ e-Disc™ from Theken (Integra)(wirelessly transmits forces of motion and loads applied to the disc in post-recovery period)

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

Incorporation of sensors, micro-electronics into implants (discs, rods) „

„

Monitoring of the progress of spinal fusion via a sensor placed on an implanted metal rod to measure strain (OrthoData) (in development)

Combination of Polymers and Metals (Composites) Epoch™ stem from Zimmer

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

CAD to Metal (Rapid Metal Manufacturing by Electron Beam Melting of Metal Powder (ARCAM AB, Sweden)

1. The part is designed in a 3D CAD program.

2. The part is built up in the 3. The result is a solid metal part. Electron Beam Melting (EBM) process.

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

Replacement of metal implants by Ceramic ones (Zirconia) „

Kyocera (Japan) / Kinamed (USA)

Zirconia Knee Femoral Component

Alumina Components Of an Elbow

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Alumina Ankle

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Impact of New Materials / New Technologies on Manufacturing „

Machining of Allograft (Processed Human Bone) or Xenograft (Animal Bone)

Machined Interference Screw from Bovine Bone

Machined/Freeze-dried “Biocleansed”/low irradiated Spinal Fusion Cage and Dowel (from human femur and tibia)

Consulting™

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

OEMs – Contract Manufacturers – MachineTool Producers OEMs M.T Producers . . . . . . . . . . . . . . . . . . . . . ƒNo consultation between OEM and Suppliers in the acquisition of M.T. ƒDo not forget: OEMs and Suppliers are also competitors (mfg costs, know-how, etc) ƒ Protection of trade secret and proprietary processes is essential on both sides

Contract Manufacturers

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Conclusion „ „ „

Orthopedics continues to be the most dynamic and fast growing segment of the medical device industry A highly capital intensive industry avid of new technology Requires more and more sophisticated, diversified and automated equipment to cut labor cost and implement new processes to deal with new specifications, tolerances and materials

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

Manufacturing Outlook for the Orthopedic Device Market

Conclusion ƒUS and European markets for equipment are negatively impacted by off shore manufacturing ƒTechnology shifts can be swift especially in terms of new materials and processes used in implants ƒConsolidation on both sides (OEMs / Suppliers) generating quick changes in the players landscape ƒLong term: pharma drugs, tissue engineering and Stem Cell technologies may reduce need for implants Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

2009 Global Forecasting & Marketing Conference Hilton Orlando Orlando, FL

Manufacturing Outlook for the Orthopedic Device Market

Thank You for your Attention!

Global Forecasting & Marketing Conference – October 21-22, 2009 – Orlando, FL

Consulting™

DORNFELD

GREEN ISSUES IN MANUFACTURING

David Dornfeld, Professor, University of California Berkeley Green manufacturing and sustainability are increasing in importance and impact on business. This presentation will review the background, vocabulary and motivation for green manufacturing and highlight the competitive opportunities for manufacturers who embrace, seriously, this growing movement. Mr. Dornfeld has a blog on green manufacturing that can give you more background information on the subject: http://green-manufacturing.blogspot.com.

David Dornfeld received his Ph.D. in Mechanical Engineering from University of Wisconsin-Madison in 1976 and is the Will C. Hall Family Chair in Engineering in Mechanical Engineering at the University of California Berkeley. He leads the Laboratory for Manufacturing and Sustainability - LMAS (lmas.berkeley.edu) with research activities in green and sustainable manufacturing; monitoring and analysis of manufacturing processes; precision manufacturing with specialization on chemical mechanical planarization for semiconductor manufacturing; and intelligent sensors and machine interoperability for process monitoring and optimization. He has published over 350 papers in these fields, authored two research monographs, contributed chapters to several books and has seven patents based on his research work. He is Fellow of the American Society of Mechanical Engineers (ASME) and recipient of the ASME Blackall Machine Tool and Gage Award in 1986, Fellow of the Society of Manufacturing Engineers (SME) and a recipient of the 2004 SME Fredrick W. Taylor Research Medal, member of Japan Society of Precision Engineering (JSPE) and recipient of the 2005 JSPE Takagi Prize, and Fellow of the CIRP (International Academy for Production Engineering). He is a consultant on sensors, manufacturing productivity, automation and process modeling and the associated intellectual property issues.

University of California Berkeley Department of Mechanical Engineering University of California at Berkeley Berkeley, CA 94720-1740 Telephone: (510) 642-0906 Fax: (510) 643-7463 E-mail: [email protected] http://green-manufacturing.blogspot.com/

and opportunities

Green IssuesVin Manufacturing

David Dornfeld Will C. Hall Family Professor of Engineering Director, Laboratory for Manufacturing and Sustainability University of California, Berkeley, CA e-mail: [email protected]; web: lmas.berkeley.edu blog: http://green-manufacturing.blogspot.com/

Outline • • • •

Background, motivation, drivers What is “sustainable” (or “green”)? What are the opportunities/challenges? What about manufacturing and machine tools? • Some examples • Summary

Laboratory for Manufacturing and Sustainability © 2009

Why does industry care? • Push - from Government(s), Regions – regulations – penalties – tax benefits • Pull - from consumers/customers – customer demand – attract new customers • Pull - from market – first-mover advantage – reputation – continued market leadership

Laboratory for Manufacturing and Sustainability © 2009

Why does industry care? • Pull - good business practice • Push - reduce risk/exposure to scarcity of resources (materials, energy, transport) • Push - from Society/NGO’s • Push - from Competitors

Laboratory for Manufacturing and Sustainability © 2009

And benefits to manufacturing • Cost reduction - efficiency/reduced CoO • Lean processes/continuous improvement • Responsiveness to consumer • Better product (!)

Laboratory for Manufacturing and Sustainability © 2009

Major Opportunities • Manufacturing for an energy and environmentally aware consumer (autos, consumer products, buildings, etc.) • Manufacturing alternate energy supply systems • Machine tools using less energy, materials, and space • Efficient factory operation • Green supply chain (what’s happening outside of your facility?) • Comply with government and regulations These can all be competitive advantages if addressed by the machine and tool manufacturers and industry

Laboratory for Manufacturing and Sustainability © 2009

Let’s look at autos What kind of car are we building? Chevy Volt

AIRPod

Nissan Pivo 2

“There isn’t going to be any part of the vehicle that will remain untouched by the search for better mileage.” Paul Lacy, IHS Global Insight Source: P. Grier and M. Clayton, “Cars - The shape of a new industry,” Christian Science Monitor, June 28, 2009. Laboratory for Manufacturing and Sustainability © 2009

Where will it be built? Chevy Volt

Vehicle Market - Lower growth - Rapid growth - Mature economies Nissan Pivo 2 AIRPod

Laboratory for Manufacturing and Sustainability © 2009

What manufacturing technology will it rely on? Chevy Volt

Nissan Pivo 2 AIRPod

• More plastic - dies and molds production • More “hybrid” technology (mixing process requirements) • Higher precision components (fuel efficiency and performance) • Wider range of materials to machine • Design/build for reuse, recycling, reman. • Larger production volumes (?) • Sustainable production • More complex supply chains/distribution • Sustainable supply chain • Low “life-cycle costs” of operation

New materials - New energy sources - New processes - New business models Laboratory for Manufacturing and Sustainability © 2009

Example: Energy and GHG Lowest (so far)

A new car’s “embodied energy” is approximately 76,000 kWh; depending on where it is manufactured: France Japan USA India

5.8x wrt France

7.4x wrt France China 788

= 6.30 MTons CO2* = 36.70 MTons CO2 = 46.60 MTons CO2 = 71.76 Mtons CO2

Same car…same process steps… big difference! (* 76 MWH x .083 MTon/MWh = 6.30 MTon)

India 944

Carbon intensity of electricity production (gCO2 per kWh of electricity (or 0.001 MTon/MWh)

What about within the US?

Source: MacKay, D., Sustainable Energy - without the hot air, UIT, Cambridge, 2009, pp. 335 Embodied energy data: Treloar, G., et al, “Hybrid life-cycle inventory for road construction and use,” J. Const. Engrg. and Mgmt., 130, 1, 2004, 43-49. (Values vary depending on recycling, etc.) China/India: http://www.ghgprotocol.org/calculation-tools/all-tools; accessed 7/9/09 Laboratory for Manufacturing and Sustainability © 2009

1998-2000 Average State Level CO2 Emissions Coefficients for Electric Power, metric tons/MWH (US Average 0.606) New England

West-North Central

Pacific Contiguous

East-North Central

0.203 (0.111-0.275

Mountain

0.784 (0.362-1.0173)

0.740 (0.5286-0.9427)

0.446 Mid Atlantic tic c (0.0138-0.579) 0.471 (0.320-0.575)

0.709 (0.0131-0.9732)

WA = 0.111 CA = 0.275 West-South Central 0.648 (0.534-0.781)

East-South Central

South Atlantic

0.677 (0.587-0.9114)

1 - Idaho 2 - Wyoming 3 - North Dakota 4 - Kentucky 5 - West Virginia 6 - Illinois 7 - Indiana 8 - Vermont

0.612 (0.378-0.8975)

Pacific Non-contiguous 0.707 (0.626-0.754)

Source: Data: EIA, US DOE, “Updated State-Level Greenhouse Gas Emission Coefficients for Electricity Generation 1990-2000,” April 2002 Map: http://wordpress.org/support/topic/255876, accessed 6/27/09

Laboratory for Manufacturing and Sustainability © 2009

Let’s build our car in… (Same car and “embodied energy” of approximately 76,000 kWh) If it is manufactured: France = 6.30 MTons CO2 Japan = 36.7 MTons CO2 US ave = 46.6 MTons CO2

What if this was a precision machine tool instead of a car? Washington (0.111) California (0.275) North Dakota (1.017) Kentucky (0.911) Vermont (0.013)

Laboratory for Manufacturing and Sustainability © 2009

= 8.44 MTons CO2 = 20.90 MTons CO2 = 77.30 MTons CO2 = 69.00 MTons CO2 = 0.99 MTons CO2 (!!??)

Ricoh “comet circle” - an excellent visualization of the green supply chain

economy

environment

society

- The Comet Circle represents a sustainable society; tighter circles - more sustainable - Circles indicate partners we work together with to achieve a sustainable society. - The upper and lower routes represent the upstream and downstream supply chain - Resources taken from the natural environment at the upper right are processed into products - The end-of-life products move from left to right along the lower route. Source: Ricoh, 1994; http://www.ricoh.com/environment/management/concept.html; accessed 6/29/09 Source: D. Dornfeld, Path of Precision - Machine Tools and the Products they Make, Mori Seiki, 2008. Laboratory for Manufacturing and Sustainability © 2009

Sustainability frame of reference ith ion w y umpt Cons d efficienc se increa

Rate of Consumption or Impact

t na ptio te” m u ra ns Co day’s “to

Required Con sumption Rat e to reach Susta inability

Sustainable rate

Today

Future

How do we achieve this? Laboratory for Manufacturing and Sustainability © 2009

The “drivers” Manufacturing - plant/HVAC - cafeteria, HR, mgmt - packaging - shipping - other waste

Customer Competitor Society Gov’t/Regs

Processes & Systems - energy - water - materials - consumables - compressed air - other waste

Machinery & Tooling - design - setup - operation - maintenance - other waste

Repeat

Across the supply chain

Laboratory for Manufacturing and Sustainability © 2009

Opportunities for improvement Improve manufacturing process Technology Cost issue

1 Improve Improve energy material efficiency Green efficiency manufacturing system triangle

2

Use clean energy sources

Energy

Reduce embedded energy

Cost issue Ref: Chris Yingchun Yuan, LMAS Presentation, 2009

Cost issue

3

Material

Use lower impact materials

Look how far we’ve come Key to each transition

Automation “F. W. Taylor”

Break complex tasks B into elements; control

Computer Aided Manufacturing (CAM) “M. E. Merchant”

Move non-essential elements outside productive time

Minimize working capital Lean Manufacturing Include whole life cycle cost “Toyoda, et al” of environmental impact, After: F. Jovane, et al, “Present and Future of Flexible Automation: Towards New Paradigms,” CIRP Annals, 52, 2, 2003, 543. externalities Laboratory for Manufacturing and Sustainability © 2009

Costs identified and eliminated Costs Identified and Eliminated* Task 1

Task 2

….

Task n

Taylor

t or $ Processes

Tooling/Setup Costs

Merchant Processes

t or $

Supply Chain Externalities

Toyoda

t or $ Environmental Externalities

$

Sustainable * or accounted for Laboratory for and Sustainability © 2009 Laboratory forManufacturing Manufacturing and Sustainability © 2009

Effects at different scales Factory/enterprise

And across the supply chain…

Process/detail

www.caranddriver.com/features/7207/virtual-tour-of-vws-transparent-factory.html www.remmele.com/flash/contractManu/pca.html Laboratory for Manufacturing and Sustainability © 2009

Supply chain considerations SUPPLIER - Location

TRANSPORTATION Economic - Accessibility - Availability - Lead Times - Risk

Environmental - Emissions - Resource Use - Distance

Laboratory for Manufacturing and Sustainability © 2009

Economic - Part Quality - Resource Availability - Lead Times & Inventory - Risk

Environmental - Electricity Mix - Resource Availability - Electricity Demand - Emissions Fate - Regulations

Social - Quality of Life - Pay Rates - Working Conditions - Health Care

Supply chain impacts Impact/Consumption

(Depends on the product/process!) Materials Energy Water GHG

“upstream” impact

Big reductions if recycle/reuse/reman Big variation depending on mfg supply chain(s)

Laboratory for Manufacturing and Sustainability © 2009

Product “life-cycle” - focus on manufacturing All phases are important and impact manufacturing!

Manufacturing

Laboratory for Manufacturing and Sustainability © 2009

Strategies for greening manufacturing • Create products/systems that use less material and energy • Substitute input materials: non-toxic for toxic, renewable for non-renewable • Reduce unwanted outputs: cleaner production, industrial symbiosis • Convert outputs to inputs: recycling and all its variants (zero waste) • Changed structures of ownership and production: product service systems and supply chain structure

Source: after J. Allwood, Cambridge University

Laboratory for Manufacturing and Sustainability © 2009

“Green” opportunity areas for manufacturing • Machine Design – Reduced embedded energy and materials in construction (including supply chain) – Basic operation costs (CNC, lub/thermal, standby, auxiliary functions, etc.)

• Machine/System Operation – Process planning (macro and micro) at machine level – System optimization within factory/industry

• Manufacturing for energy sector – New technologies for alternate energy – Scale up issues for new technologies – Enabling technology for new technology

• New more efficient products (e.g. autos) Laboratory for Manufacturing and Sustainability © 2009

Greening…effects at different scales Machine

Operation

(Build/Run)

(Macroplan)

Process

System

(Microplan)

(Factory)

Laboratory for Manufacturing and Sustainability © 2009

Greening…machine tool level

Machine (Build/Run)

• Minimum embedded energy, materials, resources per unit of performance (positioning accuracy, speed, thermal stability, etc. in machine tool frame and components) • Minimum operating energy (hydraulics, spindles, tables/axes, idle, energy recovery) • Alternate energy sources for operation (fuel cell, etc.) and energy storage/recovery capability; variable motors energy req’ts • Minimized environmental requirements • Machine work envelope/machine footprint minimization • Design using sustainability metrics (GHGROI, etc.) • Design for re-use/re-manufacturing/component upgrade • Low maintenance •? Laboratory for Manufacturing and Sustainability © 2009

Greening…machine operation level

Operation (Macroplan)

• Workholding/work orientation for minimum energy machining • Process sequencing for minimum energy, consumables, finishing, etc. • Combined tooling “mill-turn” type processing • Minimized environmental requirements •?

Laboratory for Manufacturing and Sustainability © 2009

Greening…process level

Process (Microplan)

• Feeds/speed for minimum energy machining • High speed machining • Rough/finish plan for minimum energy, consumables, finishing, etc. • Spindle/tooling design • Optimized tool path for high productivity and minimum energy • Minimized environmental requirements •?

Laboratory for Manufacturing and Sustainability © 2009

Greening…system/factory level

System • Energy “load balancing” over line/system • Energy “load balancing” over plant • Resource/consumable optimization • Factory/line alternate energy supply and network/grid • Minimized environmental impact over line/system and plant •?

(Factory)

Laboratory for Manufacturing and Sustainability © 2009

Greening…system performance tracking/optimization

1

2

3

4

5

6

Power

Synchronous cycles Asynchronous cycles

time • Energy “load balancing” over line/system • Energy “load balancing” over plant • Resource/consumable optimization Laboratory for Manufacturing and Sustainability © 2009

7

N

Greening…multi-process machine?

drill

+

turn

+

vertical mill

+

horizontal mill

Is one better than the other from an energy point of view?

drill + turn + mill • One machine with extended capability to replace several individual machines; for example, milling + drilling + turning  “mill-turn” Laboratory for Manufacturing and Sustainability © 2009

Embedded and process energy/part*

Energy footprint - individual machines

Handling energy/part

Machine tool process energy/part, f(t)

Handling equip embedded energy/part

Includes part handling between machines (embedded energy in hardware and process energy)

finished part

Time or process step

drill

+

turn

+

vertical mill

+

horizontal mill

* Energy in materials and construction/transport and setup/operation + energy for operating for specific part, including floor space and factory HVAC, etc. Laboratory for Manufacturing and Sustainability © 2009

Machine tool embedded energy/part

Embedded and process energy/part*

Energy- multi-process vs individual machines Individual machines

Potential reduction in energy per part

Multi-process machine

Time saving

Time or process step

finished part

Individual machines

Multi-process machine

* Energy in materials and construction/transport and setup/operation + energy for operating for specific part, including floor space and factory HVAC, etc. Laboratory for Manufacturing and Sustainability © 2009

Linking design to sustainability

Material C

How about mass, stiffness, thermal conductivity or thermal expansion/unit of primary water consumption, or primary energy consumption?

Water consumption, energy consumption, or greenhouse gas footprint

Material A

equal consumption or equal property lines Material E

Material B Material D

Thermal conductivity or thermal expansion

Laboratory for Manufacturing and Sustainability © 2009

Design for sustainability: thermal stability

Source: Dornfeld, D. and Lee, D., Precision Manufacturing, Springer, Chapter 12, 2008. Laboratory for Manufacturing and Sustainability © 2009

Manufacturing sustainability Footprint Social Water

Materials better

New Design

Greenhouse Gases

Economic

Existing Design Environmental

Energy Recycle/reuse

Laboratory for Manufacturing and Sustainability © 2009

Conclusions • Energy, green manufacturing and related issues are a big opportunity for industry/manufacturing - new products/services - better overall performance/lower CoO - more competitive, reduce risk - take advantage of growing regulatory environment • This

requires careful analysis and development of metrics and analytical tools

• Including energy and green manufacturing aspects can be part of a successful business strategy • The problem is too large for individual companies to solve - must be a cooperative effort among industry, associations, researchers, government Laboratory for Manufacturing and Sustainability © 2009

Thanks for your attention! Follow-on questions, comments, suggestions? Feel free to contact me: e-mail: [email protected] web: lmas.berkeley.edu blog: http://green-manufacturing.blogspot.com/ Laboratory for and Sustainability © 2009 Laboratory forManufacturing Manufacturing and Sustainability © 2009

AMT INT'L AUTO/TRUCK/TIER 1

POWER GENERATION, AEROSPACE, AND AUTO/TRUCK/TIER 1 IN CHNIA, INDIA, AND MEXICO Sean Jiang, Business Development Manager, AMT China Arun Mahajan, General Manager, AMT India Carlos Mortera, General Manager, AMT Mexico AMT’s staff in China, India, and Mexico will be speaking in three breakout sessions aimed at the Power Generation, Aerospace, and Auto/Truck/Tier 1 industries in each country. They will provide an overview of the big picture of each industry in each country, as well as trade opportunities, programs, and recommendations for how your company can capture new business in these countries. In addition to their expertise and advice, they will provide contact lists of the companies that are key players in these industries. Sean Jiang has over 17 years of experience in China’s machine tool industry, as well as in the international trade field. His expertise lies in marketing and sales, import and export, strategic alliance and investment. Prior to joining AMT, he was employed for eight years by the Shanghai Machine Tool Import & Export Corporation, where he took various positions such as project manager, group manager, department manager, assistant general manager and vice president. His experience includes World Bank loan project implementation, co-manufacturing with licenses from U.S. or European companies, agent for foreign products, and corporate level management. In his over 10 years of service at AMT, he was Regional Manager from 1998 to 2006 in Shanghai, where he helped AMT strengthen its relation with U.S. and China government agencies, Chinese customers and business circles, as well as helping AMT members’ business efforts in China. From 2007 until now, Mr. Jiang has been AMT China Business Development Manager. In addition to interacting with different Chinese organizations, he also takes on the new responsibility of helping members with their marketing plan design, strategies and sales improvement, and China economic analysis. Graduated from Shanghai Jiao Tong University, Mr. Jiang has a B.S. degree in English for Science & Technology, and a Master degree in Linguistics and Applied Linguistics. Mr. Jiang joined the staff of AMT in July 1998.

AMT - Shanghai Liaison Office

AMT – Chennai Tech Centre

1F, Hall 2, 458 North Fute Road Shanghai Waigaoqiao F.T.Z. 200131, P.R.China Telephone: (+86)-21 5868 1533 Cell: 011-86-13801803680 Fax: (+86)-21 5868 2102 E-mail: [email protected] www.amtchina.org

Regus Business Centre Olympia Tech Park, Level 2, Altius, 1- SIDCO Industrial Estate Guindy, Chennai-600032 India Telephone: 011-91-9790887032 E-mail: [email protected]

AMT – Mexico Office Pabellon Tec - Local 38-1 Av. Eugenio Garza Sada 427 Sur Col. Altavista C.P. 64840 - Monterrey, NL, Mexico Telephone: (52-81) 8359-1232 Cell: (52-1-81) 8254-1698 E-mail: [email protected] www.amtcenter.org.mx

Arun Mahajan has over 13 years of sales and sales management experience in the machine tool field. In his last assignment he worked with Francis Klein & Co. as Regional Manager for the New Delhi area, and managed the selling and servicing of high value machine tools manufactured primarily by European companies. He was actively involved in the sales & marketing of engine component finishing process machines and gear cutting machines for transmissions. Beyond managing sales, he also has experience in business development, new market development, and team building. As the General Manager for AMT’s Chennai Technology & Service Centre, he will have to call all of these business skills into practice. Apart from machine tools, Mr. Mahajan also has one year of automobile component manufacturing experience, and he was responsible for design and product development activities. Mr. Mahajan is a Mechanical Engineer with specialization in Tool Engineering. In addition to his technical background, he is also a post graduate in marketing management.

Carlos Mortera graduated from Monterrey Institute of Technology with a B.S. in Computer Systems in Monterrey, Mexico and pursued Masters Degrees in Business Administration & Manufacturing Sciences as well as numerous certifications in Operations, Sales/Marketing & International Management. Mr. Mortera’s experience in the industry includes employment at Emerson Electric, where he held several positions in industrial engineering, international trade, finance, technical training, HR, and materials in North America. He also worked at Cummins Inc. where he was responsible for various areas such as procurement, IT, operations management, engineering, and general management for their businesses in Brazil and Mexico. Mr. Mortera lived in Sao Paulo, Brazil for four years as manager of the Brazilian Cummins filtration & exhaust business unit, travelling extensively in South America. Mr. Mortera joined AMT in 2002. He is fluent in three languages and has broad experience in the industrial development in Latin American countries, as well as extensive experience in international manufacturing management.

AMT - Shanghai Liaison Office

AMT – Chennai Tech Centre

1F, Hall 2, 458 North Fute Road Shanghai Waigaoqiao F.T.Z. 200131, P.R.China Telephone: (+86)-21 5868 1533 Cell: 011-86-13801803680 Fax: (+86)-21 5868 2102 E-mail: [email protected] www.amtchina.org

Regus Business Centre Olympia Tech Park, Level 2, Altius, 1- SIDCO Industrial Estate Guindy, Chennai-600032 India Telephone: 011-91-9790887032 E-mail: [email protected]

AMT – Mexico Office Pabellon Tec - Local 38-1 Av. Eugenio Garza Sada 427 Sur Col. Altavista C.P. 64840 - Monterrey, NL, Mexico Telephone: (52-81) 8359-1232 Cell: (52-1-81) 8254-1698 E-mail: [email protected] www.amtcenter.org.mx

AMT China Staff AMT - Beijing Representative Office Xingbin Li Chief Representative Phone: (86-10) 6410-7374, 6410-7375, 6410-7376 [email protected] ([email protected]) 011-86-13901179646 (Cell)

Shanghai Technology & Service Center Harry Xiao General Manager Phone: (86-21) 5868-2809 ([email protected]) 011-86-13585950550 (Cell)

AMT - Shanghai Liaison Office Sean Jiang Business Development Manager Phone: (86-21) 6279-7640 Ext. 6219 [email protected] ([email protected]) 011-86-13801803680 (Cell)

AMT – Guangzhou Liaison Office Bill Chan Regional Manager Phone: (86-20) 8365-2629 ([email protected]) 011-86-15802772746 (Cell)

Auto & Tier 1 Motorcycle Railway & Rolling Stock

1

Largest Customer Base ►

Demand    

33 cars/1000people vs. 120 cars/1000people 130 vehicle manufacturers 30,000 auto parts manufacturers 70% CNC MT used in auto sector -

80% of which imported

 Investment in 2008: $7.4 billion (up 18%) -

4040-50% investment goes to MT

Source: CAAM & CMTBA

Policies ► Purchase

tax: 50% off (