Cutting Edge Newsletter™ September 2008
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United States Exports, Woodworking Machines, by Country, January-June |
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|
|
$ millions |
% share |
% Change |
|
Rank |
Country |
2008 |
2008 |
- 08/07 - |
|
|
-- World -- |
88.3 |
100.0 |
11.0 |
|
1 |
Canada |
27.8 |
31.5 |
18.9 |
|
2 |
China |
8.3 |
9.5 |
137.4 |
|
3 |
Australia |
7.0 |
8.0 |
67.3 |
|
4 |
United Kingdom |
5.5 |
6.3 |
42.3 |
|
5 |
Mexico |
4.2 |
4.8 |
-47.5 |
|
6 |
Germany |
3.4 |
3.8 |
28.2 |
|
7 |
Belgium |
2.4 |
2.7 |
6.9 |
|
8 |
Russia |
2.3 |
2.7 |
130.0 |
|
9 |
Poland |
1.6 |
1.9 |
15.1 |
|
10 |
New Zealand |
1.5 |
1.7 |
-3.6 |
|
Source of Data: U.S. Dept. of Commerce, Bureau of Census |
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Cutting Tools
Cutting tools imports continued to increase, for the first six months by 6 percent to $260 million. Shipments from China outpaced the average as did imports from the following top ten suppliers: Germany (8 percent), Italy (30 percent), New Zealand (4 percent) and Brazil (38 percent). Together, China and Germany account for about 40 percent of imports.
Exports increased 10 percent to $70 million. Although shipments to Canada dropped, it continues to be our largest market accounting for 32 percent of sales.
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United States Exports, Cutting Tools, by Country, January-June |
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|
$ Millions |
% Share |
% Change |
|
Rank |
Country |
2008 |
2008 |
08/07 |
|
|
-- World -- |
69.8 |
100.0 |
9.9 |
|
1 |
Canada |
22.4 |
32.0 |
-4.5 |
|
2 |
Mexico |
18.8 |
27.0 |
80.8 |
|
3 |
Netherlands |
2.0 |
2.9 |
-58.9 |
|
4 |
Japan |
2.0 |
2.8 |
-23.4 |
|
5 |
Germany |
1.9 |
2.8 |
-0.9 |
|
6 |
Brazil |
1.9 |
2.7 |
137.3 |
|
7 |
China |
1.8 |
2.5 |
-38.3 |
|
8 |
Venezuela |
1.5 |
2.2 |
48.8 |
|
9 |
Korea, South |
1.4 |
1.9 |
153.3 |
|
10 |
Belgium |
1.3 |
1.9 |
447.4 |
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Source of Data: U.S. Dept. of Commerce, Bureau of Census |
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Parts & Accessories
Imports dropped 8 percent to $59 million for the period. Together, China and Canada make up 52 percent of the import market. Other leading suppliers include: Italy, Germany, Taiwan, Switzerland, Thailand, Finland, Austria and Japan.
Exports decreased by 22 percent to $39 million. Canada accounts for 45 percent of our parts and accessories market with the following countries rounding out the top ten: Poland, Mexico, Germany, Taiwan, Ireland, Japan, Guatemala, Belgium and Italy.
Trade Winds Pan European Business Conference – Warsaw, Poland, April 20 - 22, 2009
Does your company have a Pan European Business Strategy? U.S. exports are growing four times faster than the economy as a whole. Europe presents a market filled with opportunities for U.S. businesses. If you're already doing business in one, two or several European countries, expansion throughout the continent is the next logical step. Poland constitutes a market of 38 million people located in the heart of central Europe and is a fully integrated member of the EU. By participating in this event, sponsored by the U.S. Export Assistance Center of New Hampshire, U.S. companies have the chance to make or increase sales in this booming region with a customized itinerary, according to country market demand.
Each company participating in the full event will have customized, one-on-one meetings with potential business partners in Poland.
Option 1: April 20-22, 2009:
Day 1: Pan-European Business Conference
Day 2: Private Consultations with Country Commercial Officers
Day 3: Gold Key Business Matchmaking Sessions in Poland
Networking Luncheons/Reception
CNUSA Advertisement in Special Trade Winds Europe Edition
Participation Fee: $1,650 for companies with less than 500 employees, $2,850 for companies with more than 500 employees
Option 2: April 20-21, 2009:
Day 1: Pan-European Business Conference
Day 2: Private Consultations with Country Commercial Officers
Networking Luncheons/Reception
Participation Fee: $650 for all companies
Click here for more details.
Passage to India – October 24, 2008, Philadelphia Event
The U.S. Commercial Service and Philadelphia University announce a half-day program to help guide U.S. businesses into one of the fastest growing markets in the world. Discover trade with India!
Featured Speakers include Carmine D’Aloisio, Minister-Counselor for Commercial Affairs,
U.S. and Foreign Commercial Service, American Embassy New Delhi, and Diane Farrell, Board Member, Exim Bank.
Date: Friday October 24, 2008
Time: 8:00 am - 1:00 pm
Location: The Tuttleman Center, Philadelphia University
Admission: $125
As one of the world’s largest democracies, India is committed to political freedom and strives for ever-greater economic freedom. With significant investment in its infrastructure, political stability, and increases in information technology, India has become increasingly accessible and conducive for foreign business.
With a sustained GDP growth rate of 8 percent, India is a rapidly developing country with ample business prospects for U.S. exporters. The U.S. is India’s largest trading partner with 5.9 percent of India’s imports coming from the U.S. And yet, the pace of India-U.S trade is accelerating. In 2007, U.S. exports totaled $17.6 billion, a 75 percent increase from the previous year.
Click here for more details.
Ho
using Starts – August 2008
The Housing Starts trend was weak through July.
New Residential Construction – August 2008
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 937,000. This is 17.7 percent below the revised rate of 1,138,000 and is 32.4 percent below the revised July 2007 estimate of 1,386,000.
Corporate Bond Prices – August 2008
There is some tentative good news coming from the rates-of-change for Corporate Bond Prices.
Purchasing Managers Index – August 2008
The net input from the Purchasing Managers Index this month is that the overall economy will avoid recession for the next six months.
Gross Domestic Product: Second Quarter 2008 Advance
Real gross domestic product – the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 3.3 percent in the second quarter of 2008, (that is, from the first quarter to the second quarter), according to preliminary estimates released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.9 percent.
Manufacturer's Shipments, Inventories and Orders - July 2008
New orders for manufactured goods in July, up five consecutive months, increased $5.9 billion or 1.3 percent to $465.4 billion, the U.S. Census Bureau reported today. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 2.1 percent June increase.
Think Light- Innovative Lightweight Panels Symposium
The marketplace is ever changing. Lightweight panels might be the latest indication of change within the wood processing industry. Want to learn more? Then consider attending Think Light – Innovative Lightweight Panels Symposium, hosted by Virginia Tech, in Grand Rapids, Michigan on November 17 – 18, 2008 or November 19 – 20, 2008.
More information can be found at http://www.woodscience.vt.edu/thinklight/ or requested by email at VTThinkLight@gmail.com.
Getting Beyond Your Frustrations, By Phil Horton, The Wellspring Company, LLC, barboniman@verizon.net
Chances are that we won’t be calling these the “good old days.” It seems like just about everyone is feeling some degree of pain. However, this might be a good time for company owners and leaders to take some time for a little introspection. Ask yourself:
Certainly every company is unique, but they all need the same key ingredients. We will take a high level look at these key ingredients, but include enough detail that you can begin to engage at a practical level. Think of your own company objectively as we look at each component of the chart below, and evaluate how you stand in each area.
Vision
The most important question that any organization needs to answer has to do with its vision. In other words, is everyone in your organization clear on where you are going and how you intend to get there?
Picture Babe Ruth’s famous gesture in the 1932 World Series. When he pointed to the centerfield wall he left no question as to his intent, and that simple gesture provided both inspiration and expectation to his fans and the team. What else could he do after that but hit a homer? Without a strong vision component in your company, priorities become unclear, focus turns hazy, and decisions become random. The “flavor of the month” reigns supreme.
The Right People
Once you have a clear destination in mind, the next most important requirement is that you build your company with the right people. To do that you not only need to understand what constitutes the right people but you need to be able to define their qualities in such a way that you know when you’ve found one. Hiring the right people, especially in leadership positions, is one of your greatest responsibilities to the company.
In the case of a leadership position, which can you more reliably teach or compensate for – values or skills? First and foremost you’re building an organization, and people who share your values and your ambition make the best additions to your team. So how do you know if they have the values and skill-set you need? Assuming that you can now articulate the company’s core values and that you’ve clearly identified the significant accountability associated with the position you’re trying to fill, you ask them very specific questions and rank their responses. Set up a simple matrix that will let you grade candidates on how well each fits and decide what constitutes a passing score.
The Right Data
How will you know if you’re on track to reach your vision? In order to measure your progress, identify and monitor the right data.
Some of you have heard the term “dashboard” used to describe this information. A reference to the dashboard of your car, it tells you about your journey. In reality, you have latitude in how you put it together. It should contain information drawn from throughout the organization that pertains to keeping the vision in your sights, and tells you how you’re doing at getting there. Everyone on your leadership team should be reviewing this data together on a weekly basis and disseminating the relevant parts to the rest of the organization so that they know what is going on. The beauty of consistently tracking the right information is that you acquire the ability to see trends and patterns while they’re still fresh and relevant.
Issues
Sometimes there are issues that nobody talks about or, like the “elephant in the room,” everybody just ignores. More than likely you have issues that have just been talked to death without getting resolved. As a general rule, the ability to identify and solve your problems is a key indicator of your chances of achieving your vision. Identify issues as they emerge, get to the bottom of them as quickly as possible, and resolve them completely. Find the method or tool that works best for you and make it a priority for the entire organization.
Process
Working our way around the chart we come to the “secret weapon” in building a great organization, otherwise known as process. Examine the essential processes in your company and analyze how much time is spent remedying mistakes, taking shortcuts, making exceptions, and not getting the results you’re looking for. Getting your key processes nailed down provides huge dividends to the company and dramatically increases the likelihood of achieving your vision.
The task is simple, but not easy, and involves documenting all important processes so that regardless of the circumstances the outcome is consistent.
Traction
Probably the biggest challenge in reaching any long range objective, and the last component in our exercise, is maintaining traction, or steady forward progress towards the finish line. Think about it in terms of the wheels on your car. When you stop, or when you’re spinning your wheels, you’re not getting anywhere. Taking the vision of the organization down to the ground and exercising the discipline and accountability that turns it into a reality needs to be an everyday experience.
From the Outside In
If you have been successful in seeing your world from the outside in, I hope you come away with some ideas for dealing with whatever frustrations you may have. This has been a fairly broad view of some possible remedies for any company, but is only meant to get you thinking. Avoid the temptation to look for a quick fix, especially in times like these. Focus on the fundamentals. Maybe, just maybe, you’ll even lose some of that frustration along the way.
Meet George Shackleton III, a WMMA Scholarship Recipient
My name is George Shackleton III. I am an industrial engineering
student at North Carolina State University. My concentration in the department of industrial engineering is furniture manufacturing. I chose the furniture manufacturing concentration because my family owns a custom cabinetry shop in Frankfort, Illinois.
In the spring of 2007, I was awarded a four semester scholarship by the WMMA. The scholarship program included a summer internship with a member of the WMMA, which led me to C.R. Onsrud. C.R. Onsrud manufactures CNC machines and is located in Troutman, North Carolina.
The Onsrud family hired me to work in the final assembly department. The final assembly department is in charge of building the finished product that is delivered to the customer. I was placed on a team with four other builders.
A really great thing about working alongside my team members was that they were very good at explaining what to do, why it is important, and the purpose it serves on the machine. I think that is essential for a person learning a new skill or process.
One of the first tasks I was given was to install the safety bars attached to the machine. It required me to center the plastic strip on a round bar, drill a hole into the bar, and then rivet the plastic piece onto the bar to secure the safety sensor pad. This application is important for the safety of the people working around the machine.
For the machine to power up and run programs, the operator’s console needs to be put together. The console is made up of different gauges, buttons, and switches all of which is wired in a particular orientation. I was required to install the gauges, buttons, and switches along with the actual computer and keyboard necessary to power up the machine.
Another task I was given during the internship was to work with the machine after it was all put together. I worked alongside my team members inputting the machine parameters into the operator’s console computer, which is necessary for the machine to run smoothly and accurately. A number of tests were required to check the accuracy of the machine. This assured us that the machine was running well and perfectly square.
I am very grateful that I was given the opportunity to work at such a great company. I also would like to thank dearly the people of the WMMA for helping me find a member to participate in a summer internship with.
The tasks I mentioned above were just a few things I learned this summer. I learned a lot about CNC machines and C.R. Onsrud. The company product is of the highest quality and each machine is built with pride and care. I think that C.R. Onsrud has built one of the best companies a person like me could work for. I also feel strongly that I can model my own company on the example set by the Onsrud family.
Made in Atlanta – A Community Project 
Made in Atlanta – A WMMA Community Project
Thank you to all the WMMA member companies and their staffs, volunteers and donors who generously gave their time, energy and expertise to the U.S. Technology & Demonstration Center at IWF 2008! The project was a great success. With your help, complete sets of kitchen cabinets have been donated to Atlanta Habitat for Humanity and the Atlanta Habitat ReStore. You’ll hear more details on the project – stay tuned!
Participating WMMA member companies:
Generous donors who contributed services and products:
Annual Woodworking Industry Conference to Focus on Equipping Businesses to Succeed in a Challenging Environment
Opportunity for Industry Leaders to Gain Insight into Current Industry Issues and Future Trends
Woodworking industry leaders will meet to explore high-impact topics and industry-wideinterests at the 2009 Woodworking Industry Conference (WIC) to be held April 29 - May 2, 2009 at the Sawgrass Marriott Golf Resort & Spa, in Ponte Vedra Beach, Fla. The theme, Team Networking, Partnerships and Camaraderie, explains the event's focus on helping attendees develop the key business relationships and in-depth knowledge necessary to help achieve better business results. The annual WIC is considered the foremost event for the U.S. woodworking industry. The annual conference provides a broad variety of educational opportunities that offer insider strategies and techniques on the hottest topics.
New in 2009 is a redesigned Public Policy and Economic Outlook Forum. Noted experts will offer views of the underlying issues affecting the political front as well as an industry-focused economic outlook. Other innovations for 2009 include Industry Roundtables and a Panel of Change. These will allow lively participation in moderator-driven discussions. WIC '09 will also feature a re-vamped Manufacturers Forum, Distributors Forum and two End-User Forums, enhanced in their second year due to popular demand for expanded participation.
WIC offers the popular Contact Table Program. This unique, informal program offers manufacturers, distributors, importers and customers the opportunity to meet face to face. Proven to be extremely effective in generating new business and stimulating industry collaboration, this year's session will be held on one day with ample time for networking.
"WMMA members can have measurable returns from attending WIC," said WMMA President Tom Onsrud. "All the sponsoring association partners work diligently every year to create an engaging program. WIC '09 will address specific issues that affect company profitability as well as the future trends that will profoundly touch our businesses. Although we tend to be immersed in everyday challenges, we all need to pause to learn and question the risks and rewards of the future. WIC facilitates this deeper understanding – and in a very pleasant setting with very pleasant company."
WIC is sponsored by the Association of Woodworking & Furnishings Suppliers® (AWFS), the Woodworking Machinery Industry Association® (WMIA) and the Wood Machinery Manufacturers of America. In 2009, members of the Wood Component Manufacturers Association® (WCMA) will again participate.
WMMA is confident that you will benefit from this meeting. For new members and those who have not attended in the past five years, WMMA offers your company complimentary registration fees for two delegates. This is a savings of $695 per delegate – for a potential savings of $1,390! In addition to the free registration, when you and/or another delegate attend, your company will receive a $500 reimbursement check to help defray some of the travel expenses. Only one catch – members who take advantage of this offer must attend the All Member Meeting at WIC to learn more about the Association!
Expert Advice from a Recognized Attorney – An Essential WMMA Benefit
All WMMA members trust noted tax attorney and small business advocate John Satagaj for his insight into the complex legal, tax and political matters that he writes in his monthly column. Many know John for his easygoing and knowledgeable discussions at WIC and other WMMA meetings. After years of working with WMMA members, John understands the industry from the big-picture policy level to the daily details of making the payroll and paying the bills. A few members even pick up the phone and call him regularly to talk about his view on their critical business, legal, insurance and tax matters. He has provided confidential information to thousands of business owners over the years on a vast array of topics.
You can, too! As a free benefit of membership, all WMMA members are able to call John and seek his general advice on a variety of issues. WMMA encourages members to call John at (202) 639-8888.
Member Companies Showcased at IWF 2008!
You will see…
Stay tuned for a special edition of The Cutting Edge!
Over the summer Congress passed, and the President signed into law, a major consumer product responsibility bill. While our products are regulated primarily for their use in the workplace by the Occupational Safety Health Administration (OSHA), the new law will have an impact on consumer market sales, and perhaps give us some indications of the direction of future regulatory efforts.
The following is a summary of major trends of U.S. exports and imports for the January – June 2008 period. Statistics are reported for all woodworking equipment and its three component parts: machines, cutting tools and, accessories and parts.