Why do most people seem to need external reinforcement of situations they have already evaluated? Over the past two weeks, two events, EASTEC 2011 in the U.S. and Laser World of Photonics in Munich, put the seal of approval on the roaring recovery in the industrial laser market. No longer is it a wish; it is a full blown phenomenon.
At EASTEC, a regional manufacturing trade show which has become a must-do for makers of laser marking and engraving systems, about two dozen companies showed their products, many new to market, to a crowd of 11,000 Northeast manufacturers who braved three days of rain to scurry between five halls at windy West Springfield fairgrounds.
The common thread this observer picked up was that suppliers were dancing on the grave of the recent recession. Not only was it dead and buried, it’s ugly memory was almost erased as the industrial laser market is booming with record sales and bookings, and the future looks very bright for continuing good business at pre-recession levels.
Four thousand miles and a week apart, the good burghers of Munich welcomed a record crowd to this year's renewal of the biennial event. We knew that this one would be different when on opening day, which traditionally does not attract German visitors in large numbers, crowds entered the halls as the opening bell rang, a pattern that was in effect for three of the four show days. As the closing bell sounded. more than 27,500 visitors, an 8% rise over 2009, had pushed through the turnstiles.
What they saw was one of the most powerful displays of innovative industrial laser technology in the two Production halls of the six hall show. Product suppliers had used the recession to advantage, marshalling their reduced work force to focus on new products to introduce to a post-recession market.
On top of this, the German VDMA announced a 57% increase in industrial laser sales over 2009. But more exciting was the 2010 order intake of German companies: 90% over 2009 and within 25% of the record year of 2007, which looks to be reachable in 2012, a year and a half ahead of the industry consensus schedule
The more than 3200 attendees at the concurrent World of Photonics Congress heard hundreds of papers on the new applications, such as ultra-fast laser processing, that will be using the new products shown at the show. Topping it off, if you are a German supplier, was the Federal Ministry of Education and Research's announcement at this trade fair of itsone-billion Euro, ten-year investment to promote photonics research and development. Line up at the trough, guys.
Euphoria was the rule as personnel from over 1100 exhibitors made their way home from this -- the most successful ever -- Munich Show, The consensus of exhibitors and attendees was that business is great and will continue for the next 12 months.
Tuesday, May 31, 2011
Wednesday, May 25, 2011
Laser World buzz: Phenomenal growth
After two days here at Laser World of Photonics in Munich, it is clear that the laser business, especially the industrial laser sector, is having a great year globally and is recovering nicely from the recession which had left a lot of companies shaken about the future.
The VDMA, the organization that represents the machine tool industry, reports that orders received for new laser equipment in 2010 surpassed the record set in 2008. This suggests that laser revenues for 2011 may be able to exceed the record year of 2007.
Germany thrives on industrial laser and system exports, primairly to Southeast Asia (17%) including India. When shipments to Japan are factored in, Asia represents 23% of German exports. This is expected to drive their laser markets for the coming year or two.
Most of the buzz in the halls is about the phenomenal growth of the industrial laser market last year and this. Companies are projecting growth percentages from 35 to 65%, with bookings guaranteeing a record year for many.
Euphoria compared to two years ago reigns supreme amongst the hundreds of exhibitors here. You can confirm this by observing the show crowds filling the Munich beer gardens at night. I can vouch for this as I made an exhaustive survey.
The VDMA, the organization that represents the machine tool industry, reports that orders received for new laser equipment in 2010 surpassed the record set in 2008. This suggests that laser revenues for 2011 may be able to exceed the record year of 2007.
Germany thrives on industrial laser and system exports, primairly to Southeast Asia (17%) including India. When shipments to Japan are factored in, Asia represents 23% of German exports. This is expected to drive their laser markets for the coming year or two.
Most of the buzz in the halls is about the phenomenal growth of the industrial laser market last year and this. Companies are projecting growth percentages from 35 to 65%, with bookings guaranteeing a record year for many.
Euphoria compared to two years ago reigns supreme amongst the hundreds of exhibitors here. You can confirm this by observing the show crowds filling the Munich beer gardens at night. I can vouch for this as I made an exhaustive survey.
Friday, May 20, 2011
Laser marking leads the manufacturing recovery
This week, for the 35th time, Eastec - the East Coast’s largest annual manufacturing event - was held in West Springfield, Mass. The show's organizer, the Society of Manufacturing Engineers, was concerned that an entire week of rain and chilly weather would hold the expected attendance of 11,000 down, but this was allayed as cars started filling the parking spaces early on Tuesday and continued for the first two days.
This was the first Eastec since the recession turned the corner and the US manufacturing economy started its remarkable recovery. New England has responded more slowly than the national average, but you wouldn’t know it from the crowded aisles in the five show halls that featured over 900 exhibitors.
I attended because Eastec is a showplace for industrial laser systems exhibitors, especially those with laser marking equipment, of which I counted 24 companies showing markers powered by: fiber, solid-state, CO2,and diode lasers. Other suppliers showed laser welding, cladding, and microprocessing equipment.
I spoke at length with representatives of more than half the laser exhibitors and received almost uniform consensus that business had turned around during 2010 and that growth was continuing, for some at a record pace, into 2011. And the laser systems exhibitors, even those experiencing modest growth, were optimistic that 2011 would be a good year for their business.
Admittedly my survey was heavy with marking system suppliers, an industrial laser segment that historically has experienced double digit growth every year but one. Laser marking applications cut across the entire manufacturing sector so, in that respect, its success this year may be a stronger indication of the overall health of the manufacturing economy here in the US.
This was the first Eastec since the recession turned the corner and the US manufacturing economy started its remarkable recovery. New England has responded more slowly than the national average, but you wouldn’t know it from the crowded aisles in the five show halls that featured over 900 exhibitors.
I attended because Eastec is a showplace for industrial laser systems exhibitors, especially those with laser marking equipment, of which I counted 24 companies showing markers powered by: fiber, solid-state, CO2,and diode lasers. Other suppliers showed laser welding, cladding, and microprocessing equipment.
I spoke at length with representatives of more than half the laser exhibitors and received almost uniform consensus that business had turned around during 2010 and that growth was continuing, for some at a record pace, into 2011. And the laser systems exhibitors, even those experiencing modest growth, were optimistic that 2011 would be a good year for their business.
Admittedly my survey was heavy with marking system suppliers, an industrial laser segment that historically has experienced double digit growth every year but one. Laser marking applications cut across the entire manufacturing sector so, in that respect, its success this year may be a stronger indication of the overall health of the manufacturing economy here in the US.
Monday, May 9, 2011
End educational turf wars to foster skilled workers
In an article entitled, "Help Wanted on the Factory Floor," by James R. Hagerty, appearing May 6th on the Wall Street Journal Digital Network, the author cites three factors that are causing the shortage of factory floor workers in the US. First is the remarkable growth in employment numbers for the last seven months. In seeming contrast to all the gloom and doom on the unemployment front for the past few years, US companies roared out of the recession, loaded for bear with a lean manufacturing team. Nice scenario, but they got caught in a dilemma as orders rolled in at an unexpected pace, which these companies were unprepared to handle with current staffing.
The second factor, baby boomer retirements, is starting to impact companies as their most experienced and productive workers are opting out for the “good” life. Hagerty says 25% of US manufacturing workers are 55 or older.
And finally, he, like many others, faults the US education systems for neglecting to nurture the skills that modern factory jobs require: math, science, and computer programming.
Of these factors, one, education, could have been corrected years ago. Job growth in the industrial market is a phenomenon. After two decades of reductions in factory employment, the US lost hundreds of thousands of manufacturing jobs that will never be offset by employment blips such at we are now experiencing. Just drive around Michigan if you need an object lesson.
Yes, the baby boomer retirements on top of this will make manufacturing a bright spot on the employment scene, but this is not the cause for the lack of employable young people in what is left of the US manufacturing base.
I personally have been involved with the “technical education” problem for several decades. I got involved with a southern state educational system as it moved to lay a base for trained technical workers to serve relocating industry. And as president of the Laser Institute of America, I dedicated my term to fostering support of the nation’s secondary schools offering laser processing curricula. And I was enmeshed in a political tug-of-war at a state university that missed an opportunity to become a leader in industrial laser material processing education. There, I ran into one of the most hierarchal and entrenched groups: professional educational administrators.
In this example, as the department head I was advising struggled with an academic turf war, I used to ask, “Who is representing the students in these discussions?” It got so bad that when he and I went to the faculty club for lunch, we were made to wait or if we were lucky, we were led to a table near the kitchen door.
After years of observing how other countries approached the same educational situation, I remain more convinced that we here in the US talk a good game but rarely follow through with positive action. I have heard and read about the same problems finding trained skilled employees for decades and Hagerty’s examples could have applied 30 years ago.It’s great to acknowledge a problem in our educational systems but when solutions are bogged down by internal territorial protection policies, then we should address that problem first.
I am very impressed with the community college programs I have witnessed in the states that are attracting new industry. Administrators at these colleges, backed by state educational programs, are tuned into the needs of local industry and follow through by initiating new programs to supply the needed employees. I have met several enlightened and committed administrators of these programs who place students first. It's one bright light I see to alleviate the lack of skilled employees.
The second factor, baby boomer retirements, is starting to impact companies as their most experienced and productive workers are opting out for the “good” life. Hagerty says 25% of US manufacturing workers are 55 or older.
And finally, he, like many others, faults the US education systems for neglecting to nurture the skills that modern factory jobs require: math, science, and computer programming.
Of these factors, one, education, could have been corrected years ago. Job growth in the industrial market is a phenomenon. After two decades of reductions in factory employment, the US lost hundreds of thousands of manufacturing jobs that will never be offset by employment blips such at we are now experiencing. Just drive around Michigan if you need an object lesson.
Yes, the baby boomer retirements on top of this will make manufacturing a bright spot on the employment scene, but this is not the cause for the lack of employable young people in what is left of the US manufacturing base.
I personally have been involved with the “technical education” problem for several decades. I got involved with a southern state educational system as it moved to lay a base for trained technical workers to serve relocating industry. And as president of the Laser Institute of America, I dedicated my term to fostering support of the nation’s secondary schools offering laser processing curricula. And I was enmeshed in a political tug-of-war at a state university that missed an opportunity to become a leader in industrial laser material processing education. There, I ran into one of the most hierarchal and entrenched groups: professional educational administrators.
In this example, as the department head I was advising struggled with an academic turf war, I used to ask, “Who is representing the students in these discussions?” It got so bad that when he and I went to the faculty club for lunch, we were made to wait or if we were lucky, we were led to a table near the kitchen door.
After years of observing how other countries approached the same educational situation, I remain more convinced that we here in the US talk a good game but rarely follow through with positive action. I have heard and read about the same problems finding trained skilled employees for decades and Hagerty’s examples could have applied 30 years ago.It’s great to acknowledge a problem in our educational systems but when solutions are bogged down by internal territorial protection policies, then we should address that problem first.
I am very impressed with the community college programs I have witnessed in the states that are attracting new industry. Administrators at these colleges, backed by state educational programs, are tuned into the needs of local industry and follow through by initiating new programs to supply the needed employees. I have met several enlightened and committed administrators of these programs who place students first. It's one bright light I see to alleviate the lack of skilled employees.
Wednesday, April 27, 2011
Growing the industrial laser market
I’ve been looking at the most recent fiscal year quarterly reports from companies in the Industrial Laser Solutions financial database because I was curious to see if a statement I have made a number of times is correct. The statement refers to companies pushing every last order out the door on the last day of their fiscal year so that annual sales were shown most favorably.
I averaged out the published results from a dozen leading suppliers of industrial lasers, laser systems, and related products and found two interesting facts: one related to the statement and the other confirming that the economy in the industrial laser sector was greatly improved.
On average the surveyed companies showed a modest single digit growth in revenues in the first quarter of FY11 compared to the last quarter of the previous fiscal year. Not surprising I guess, confirming my statement. I also noted that the last quarter of FY10 easily outperformed the previous three quarters.
At first I was a little disappointed in the numbers for the start of the new fiscal year, until I considered that fourth quarter FY10 was for many companies a record quarter, with some companies enjoying a 50% growth in revenues over the year coming out of the recession. Thus, a modest single digit growth on top of record revenues meant that FY11 was starting off with a bang.
On another matter, the Laser Institute of America's Northeast Regional meeting, held last week in Nashua, NH, focused on ultra-fast laser processing of industrial material. With a modest promotion, this event drew a record attendance with more than 80 members and non-members showing up, including some from the West Coast, who arranged their travel to include this event.
What drew this audience? For starters, four speakers form the laser supplier industry presented their products in a wide range of material processing applications, much to the surprise of many in the audience who were unaware of the rapid strides being made in the UFP technology. Led by the organizer and moderator Ron Schaeffer (Photomachining Inc.), presenters Bill Clark (Clark MXR), Mike Armas (Raydiance), Sid Wright (RPMC Lasers), and Paul Graham (TRUMPF) made a strong case for impressive sales growth over the coming years.
Even those familiar with this progress were impressed by the inroads these lasers are making into the industrial marketplace. And those of us who are always looking for the next big market push may have found it in the new applications that had, until now, not been laser capable.
I averaged out the published results from a dozen leading suppliers of industrial lasers, laser systems, and related products and found two interesting facts: one related to the statement and the other confirming that the economy in the industrial laser sector was greatly improved.
On average the surveyed companies showed a modest single digit growth in revenues in the first quarter of FY11 compared to the last quarter of the previous fiscal year. Not surprising I guess, confirming my statement. I also noted that the last quarter of FY10 easily outperformed the previous three quarters.
At first I was a little disappointed in the numbers for the start of the new fiscal year, until I considered that fourth quarter FY10 was for many companies a record quarter, with some companies enjoying a 50% growth in revenues over the year coming out of the recession. Thus, a modest single digit growth on top of record revenues meant that FY11 was starting off with a bang.
On another matter, the Laser Institute of America's Northeast Regional meeting, held last week in Nashua, NH, focused on ultra-fast laser processing of industrial material. With a modest promotion, this event drew a record attendance with more than 80 members and non-members showing up, including some from the West Coast, who arranged their travel to include this event.
What drew this audience? For starters, four speakers form the laser supplier industry presented their products in a wide range of material processing applications, much to the surprise of many in the audience who were unaware of the rapid strides being made in the UFP technology. Led by the organizer and moderator Ron Schaeffer (Photomachining Inc.), presenters Bill Clark (Clark MXR), Mike Armas (Raydiance), Sid Wright (RPMC Lasers), and Paul Graham (TRUMPF) made a strong case for impressive sales growth over the coming years.
Even those familiar with this progress were impressed by the inroads these lasers are making into the industrial marketplace. And those of us who are always looking for the next big market push may have found it in the new applications that had, until now, not been laser capable.
Tuesday, April 19, 2011
What the * is going on here?
The world's oldest marathon(115 years), the Boston Marathon, produced a new world record for the men’s winning time and almost did the same for the women. A mild day on Monday with a rather strong and gusty wind at the runners' backs helped them to phenomenal times this year. Unfortunately, an archaic marathon regulation dealing with the total drop in altitude over the course, from start to finish, which should be 150 feet instead of Boston's approximately 300 feet, prohibits this record from being officially world class. But as my neighbor, a four time Boston runner said, “Try telling the runners that the Boston isn’t tough.” Reports are that the winning time, a world record, will be accompanied by an asterisk.
This week is bringing to our attention the early first quarter reports from the public companies and, as expected from the comments we have received over the past three months, activity in the industrial laser sector continues its last quarter of 2010 performance. This alone is noteworthy because the end of the year, as mentioned in earlier columns, is a “clear the house” time at companies anxious to pump up annual revenues. So when 1Q11 numbers exceed 4Q10 numbers, you know that the market conditions are excellent, or as they say in the wine business, it has legs.
This is not in ignorance of the situation in Japan, as cited earlier, as those numbers are not available yet, but will obviously be seriously impacted by the reduced production schedules being experienced by most Japanese manufacturers. We are eagerly awaiting these numbers as we are now preparing a revised 2010 report and a new 2011 forecast to be presented in June on an ILS Webcast. But as we have stated earlier, any drag on the global economy should be noted with an asterisk as it is not a reflection on the market but on the result of the disaster in Japan.
This week is bringing to our attention the early first quarter reports from the public companies and, as expected from the comments we have received over the past three months, activity in the industrial laser sector continues its last quarter of 2010 performance. This alone is noteworthy because the end of the year, as mentioned in earlier columns, is a “clear the house” time at companies anxious to pump up annual revenues. So when 1Q11 numbers exceed 4Q10 numbers, you know that the market conditions are excellent, or as they say in the wine business, it has legs.
This is not in ignorance of the situation in Japan, as cited earlier, as those numbers are not available yet, but will obviously be seriously impacted by the reduced production schedules being experienced by most Japanese manufacturers. We are eagerly awaiting these numbers as we are now preparing a revised 2010 report and a new 2011 forecast to be presented in June on an ILS Webcast. But as we have stated earlier, any drag on the global economy should be noted with an asterisk as it is not a reflection on the market but on the result of the disaster in Japan.
Monday, April 11, 2011
Lasers not so unusual any more
The news early this week is more pessimistic than optimistic, but not enough to cause any media newsbreaks. Stalemates in Afghanistan and Libya, one step forward and one back in Fukushima, and the U.S. Congress kept the government from shutting down, just as most of us knew they would after a lot of posturing.
On a much smaller scale than these events, business in the industrial laser sector is great, sort of contrary to all the dull international and national news. China’s trade balance went negative, ho hum, in sectors not impacting laser sales. Yes, Japan has yet to get their industries perking again and that’s not good, but not news. Industry in the U.S. and Europe are still on an upward arc, even though the latter is coping with a bailout in Portugal.
So the past weekend was peaceful and quiet except for the concern for the Red Sox losing streak; two out of three wins over the Yankees ended that. So my only temporary concern was for the poor golfer who blew a 12 stroke lead in the Masters and plunged out of site on the scoreboard. With a gaggle of very good golfers in the hunt at the end, his disappearance went unnoticed.
Do you ever get the feeling that things are too stable and that something will upset the quiet this week? I’ll be participating in SALA, the Symposium for Advanced Laser Applications, where among my duties I have the pleasure of hosting the Innovation Award for Laser Applications in Manufacturing Operations. I haven’t seen the acceptance speech by the awardee, Dr. Marshall Jones from GE, but I hope that he will mention the impact that the laser technology he championed had on GE to make it more productive and competitive. Because this is typical of what pulled U.S. manufacturing out of the recession so rapidly, manufacturers here are the most productive among industrialized nations.
Here productivity equates to automation and automation is almost connected to the word laser. For the first decade of this technology, equipment sellers were hesitant to use the word automation, as it raised warning signal with unions. Then, as the threat of automation on the job market seemed to disappear, global competiveness made it an antidote for low labor cost competition.
Laser fit nicely into automation systems, and low operating cost and maintenance free operation make them attractive for multi-shift operations.
One aspect that I think has helped is that the mystique of the laser has all but disappeared as tens of thousands of units are operating around the world, many in plants where they are no longer considered unusual. And that is a good thing.
On a much smaller scale than these events, business in the industrial laser sector is great, sort of contrary to all the dull international and national news. China’s trade balance went negative, ho hum, in sectors not impacting laser sales. Yes, Japan has yet to get their industries perking again and that’s not good, but not news. Industry in the U.S. and Europe are still on an upward arc, even though the latter is coping with a bailout in Portugal.
So the past weekend was peaceful and quiet except for the concern for the Red Sox losing streak; two out of three wins over the Yankees ended that. So my only temporary concern was for the poor golfer who blew a 12 stroke lead in the Masters and plunged out of site on the scoreboard. With a gaggle of very good golfers in the hunt at the end, his disappearance went unnoticed.
Do you ever get the feeling that things are too stable and that something will upset the quiet this week? I’ll be participating in SALA, the Symposium for Advanced Laser Applications, where among my duties I have the pleasure of hosting the Innovation Award for Laser Applications in Manufacturing Operations. I haven’t seen the acceptance speech by the awardee, Dr. Marshall Jones from GE, but I hope that he will mention the impact that the laser technology he championed had on GE to make it more productive and competitive. Because this is typical of what pulled U.S. manufacturing out of the recession so rapidly, manufacturers here are the most productive among industrialized nations.
Here productivity equates to automation and automation is almost connected to the word laser. For the first decade of this technology, equipment sellers were hesitant to use the word automation, as it raised warning signal with unions. Then, as the threat of automation on the job market seemed to disappear, global competiveness made it an antidote for low labor cost competition.
Laser fit nicely into automation systems, and low operating cost and maintenance free operation make them attractive for multi-shift operations.
One aspect that I think has helped is that the mystique of the laser has all but disappeared as tens of thousands of units are operating around the world, many in plants where they are no longer considered unusual. And that is a good thing.
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