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As 2012 Ends, Waiting to Exhale


orth America continues to be the bright spot in global manufacturing. In the US, economic activity in the sector grew in October, for the second consecutive month following a summer slowdown, the nation’s supply executives reported in the latest Manufacturing ISM Report On Business.


While the Euro zone remains a crisis zone, worldwide manufacturing is otherwise improv- ing. JPMorgan and Markit report that the global downturn moderated in October. They reported growth in the US, Mexico, Canada, Brazil, Denmark, India, Indonesia, Ireland, Russia, the Netherlands and Turkey. Data from China, where a recent slowdown had caused some concern, shows that manufacturing is also bouncing back. I recently visited the Japan International Machine Tool Fair—JIMTOF 2012—and found the


buzz rivaled my visit to IMTS in Chicago this September. (By the way, if you missed IMTS, be sure to check out our highlights of the show online at http://tinyurl.com/imtshighlights). Both events were shoulder-to-shoulder crowded and excited, despite the oft-discussed challenges of workforce shortages, Europe's economy and, in Japan, big losses among con- sumer electronics giants Sharp, Sony and Panasonic. At IMTS, registration topped 100,200, a 22% increase over 2010 and the largest show-to-show increase ever. At JIMTOF, atten- dance reached 128,674, growth of 12% from the prior show in 2010. In another sign of global manufacturing growth, machine builder DMG/Mori Seiki, whose union is approaching its fourth anniversary, announced a major expansion of its production facilities. Aside from its new facility in Davis, California, which opened with much fanfare in early November, DMG/Mori said at JIMTOF that it plans to open new production factories in China (September 2013) and Russia (late 2013). It's part of a play to capture the growing global business, as well as to hedge against currency fluctuations by near-sourcing. Despite the brightening mood, however, most manufacturers remain solidly cautious, with


the bitter aftertaste of the Great Global Recession still on their tongues. In fact, I have talked to companies that don’t even have capacity to meet all their current orders in a timely fash- ion, but who continue to fret about getting future orders. The Q3 2012 Manufacturing Ba- rometer, a survey conducted by PricewaterhouseCoopers LLP, bears out this anxiety. Details are available in this issue’s NewsDesk. The survey shows that 82% of manufacturers expect revenue growth in 2013—up from 75% last year. Yet only 29% are optimistic about the world economy. When will it be time to exhale?


Editorial Staff EDITOR IN CHIEF


Sarah A. Webster 313-425-3252


swebster@sme.org SENIOR EDITORS


Michael C. Anderson 313-425-3258


440-779-6946 jlorincz@sme.org


manderson@sme.org James A. Lorincz


James D. Sawyer 313-425-3053 jsawyer@sme.org


Patrick Waurzyniak 313-425-3256


Katelyn DaMour 313-425-3251


pwaurzyniak@sme.org ASSISTANT EDITOR


ASSISTANT EDITOR Darlene M. Pietryka 313-425-3255


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Business Staff GROUP PUBLISHER 313-425-3260


Tim Fausch


tfausch@sme.org PUBLISHER


Greg Sheremet 313-425-3261


gsheremet@sme.org PRODUCTION MANAGER


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ADVERTISING COORDINATOR Denise M. King 313-425-3259 dking@sme.org


MANAGER, CIRCULATION Vince Harrington 313-425-3265


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Sarah A. Webster Editor in Chief


Although reasonable efforts are taken to ensure the accuracy of its published material, the Society of Manufacturing Engineers is not responsible for statements published in this magazine. Readers are advised that SME shall not be liable to any person or company for losses or damages incurred as a result of accepting any invitation or offer contained in any advertisement published in Manufacturing Engineering®. Copyright © 2012 by the Society of Manufacturing Engineers. Photocopy information: Users registered with the Copyright Clearance Center, 21 Congress St., Salem, MA 01970, can purchase copies at $2.00 each referring to serial fee code 0361-0853/88/$2.00. All other photocopying without the permission of SME is prohibited. Reprint information: For tearsheets, reprints, and bulk orders, write the Production Manager, kstebbins@sme.org. Available on microfilm/ microfiche from University Microfilms International, 300 N. Zeeb Rd., Ann Arbor, MI 48106. Canada Post Publication Mail Sales Agreement No. 1436813


6 ManufacturingEngineeringMedia.com | December 2012


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