Machine Tool Builder Sees Signs of Recovery

Machine tool-makers, hard-hit by the credit crunch, are bellwether companies, and one had good news to share at its North American headquarters in Florence, Ky., recently.

Mazak hosted about 1,250 customers and collaborators Sept. 15 to 18 for its “R3: Refocus, Rediscover, Reinvent” event.

“I’m telling you, we’re at the beginning of an upturn,” said Mazak President Brian Papke. “People don’t travel in this environment unless they have genuine interest.”

The event came after three months of increasing orders at Mazak, a welcome relief after historic lows earlier this year. At the end of 2008, orders from Canadian machine shops stayed stronger longer than from other areas, according to Papke.

“We were doing very good business, but it has cooled off significantly, I think more so than the United States [market],” he said.

Papke called the situation in Canada “a double-edged sword.” On the one hand, the drop in the U.S. dollar has made machine tool purchases look more attractive to Canadian buyers, but on the other hand, the U.S. remains Canada’s largest export market. As U.S. customers struggle, so do their Canadian suppliers.

Mazak had record sales in 2008, but starting in October of that year, orders fell as capital equipment purchases across North America plummeted with the credit crunch.

Still, Mazak sees early signs of growth in both the U.S. and Canada, though managers conceded that it will take time for sales volumes to return to previous levels.

New Technology

The company unveiled 10 models manufactured at the company’s Kentucky plant, as well as four new machines from Japan.

The machines range from the relatively small Quick Turn Smart turning centers to high-end multitasking machines such as the addition to the Integrex® line, the e-420HST-II. Mazak also introduced its “Ultra-Tasking” concept—turn-mills with additional custom tools for processes such as polishing, honing, and gear cutting.

To handle the expanded product line, the machine tool-builder recently added several massive VERSATECH V-100N double-column, five-axis machining centers, a $9 million investment that, according to the company, improved productivity by between 40 and 70 percent. It also recently completed a $3.5 million factory expansion.

Mazak used the event to tout its “On-Demand Production” philosophy, adapted from lean and demand-pull manufacturing concepts. Production is triggered by actual orders instead of a forecast, and inventory is minimized. Managers said the approach is proving successful in times of decreased volumes and a greater variety of orders.

Quick-response, small-lot-size production may be driving much of manufacturing as the global economy recovers, as customers throughout the supply chain hesitate to accumulate significant inventory. It’s no longer about handling a few large jobs; it’s about taking on many small jobs.

Papke pointed to increased demand for multitasking machining centers that can complete a part in one setup and handle a variety of products and small lot sizes. He added that because each such machine has a higher price tag than conventional mills or turning centers, sales volume has gone up faster than units.

For more information, visit www.mazakcanada.com.