CMTDA Annual Spring Meeting

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W elcome to the summer issue of our newsletter. It would have been nice for me to be able to report better sales statistics and a good economic recovery but the reality of the situation is quite dif- ferent. It is however a pleasure to confirm that our association remains strong in these difficult times.

Our membership continues with 63 regular and 10 associate members participating in the bene- fits of CMTDA. Our annual Spring Meeting and Harbour Cruise was held on June 5th and was attended by 86 members and guests. Unfortunately, I was not able to attend, however according to Jim Burrows, the cruise was fun and the food was excellent.

In keeping with the tradition, our media friends, CM&M, MP&P and CIP provided support with the wine and spirits and we thank them for their commitment. Kurt Neiman, our Vice President, presented Manfred Jahn and his wife Trudy with an Honourary Membership to CMTDA. Manfred retired recently from his machine tool distributorship after a long and successful career.

He is also a past president and a very loyal supporter of CMTDA. Man- fred and Trudy, good luck and good health in your retire- ment. Kurt also welcomed Eric St.

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Keith Hann of Paramount Machinery as new members, Bob and Sandy Burnside, Jim Smith and Jim and Marilyn Burrows as hon- ourary members. Once again, CMTDA is supporting a Toronto exam site for the CMTSE program operated by AMTDA on July 26th. The site will once again be held at Ryerson in the downtown area. Good luck to all participants. The Canadian Machine Tool Show in Toronto is just around the corner at the National Trade Centre on October 20 thru 23, 2003. The show will group machine tools, metal forming, measurement technology, tooling and factory automation together in one package. Our responsibility will be to promote the show with our suppliers and customers alike to make this show a success in these trying economic times. CMTDA The newsletter of the Canadian Machine Tool Distributors 9 Association PO Box 262, Minden, ON KOM 2KO Phone: (705)286-6921 Fax: (705) 286-6905 www.cmtda.org Albert Leblanc CMTDA Annual Spring Meeting June 5, Toronto Harbour Boat Cruise Kurt Neiman (left), vice president and trade shows, pre- sents Trudy Jahn (center) and Manfred Jahn with a plaque making the Jahns Honourary Members of CMTDA. CMTDA Executive Director Jim Burrows (left) and Bob Mathieu of Reed Exhibitions. by CMTDAExecutive Director Jim Burrows Sales for machine tools are continuing at a similar pace to last year. The first five months of 2003 have shown an increase in dollars and a decrease in units. While the units are down approximately 11%, the dollar increase is approximately 12%. Average order size is $307,000 for lathes, $173,000 for ver- tical machining centers, $504,000 for horizontal machining centers, $538,000 for horizontal boring mills, $195,000 for wire EDMs, $114,000 for EDM sinker, $145,000 for grinders and $171,000 for coordinate measuring machines. Conventional machine tools average $20,000, CNC fabricat- ing equipment was $198,000, non-CNC fabricating equipment was $16,000, and metal stamping equipment was $43,000. The overall average machine tool sale was $98,400. Some of these numbers are up significantly, especially in the CNC lathe and horizontal machining categories. Both show substantial increases in units and average dollars. It seems the market demands increased sophistication and automation in these areas, however the overall machine tool market remains extremely competitive. Machine tool sales remain depressed More industry statistics on page 3 CMTDA President 9s Message Newsletter The CMTDA recently held its annual spring meeting and social gathering. The highlight of the evening was a boat cruise around the Toronto Harbour. Approximately 86 CMTDA members and guests attended the annual event which also included dinner as well as the cruise. Assembly and design of the CMTDA Newsletter courtesy Action Communications, publisher of MP&P and The Dealer. Editor: Jim Bur rows Bill Bowden (left) and Andy Lux, both with Iscar Tools Inc., Oakville, ON. (Left to right) Dave Collison, Ruth Collison, Angie Colli- son, Denise Carr, Michael Carr and Dorne Collison. The Collisons were representing SMS Machine Tools while the Carrs were representing Elliott-Matsuura. Keith Kerr (left) of Amada Canada and wife Lynne Kerr enjoy the cruise. Numbers in $000 for Jan. 1, 2003 - May 31 2003 Atlantic 44 Units $5,000m Ontario 1677 Units $128,005m West 294 Units $27,486m Continued on Page 2 Summer, 2003 CMTDA has welcomed two new regular members since our last newsletter. Joining the associa- tion as regular members are Canadian Measurement- Metrology Inc ., Mississauga, ON, Elliott Foster , president and Paramount Machinery Inc ., Mississauga, ON, Eric St. James , president. Manfred and Trudy Jahn were made Honourary Members of CMTDA at our recent spring meeting. Manfred has now retired from his machine tool business, M. Jahn Machine Tools Inc ., after many years of working for and representing Index Corpora- tion . Manfred was president of CMTDA in 1992-1993. The Society of Manufacturing Engineers (SME) has launched a Jobs Connection service to allow professionals to post their resumes for review by manufac- turing employers. The Jobs Con- nection service is free for SME members. Click on http://job- sconnection.sme.org to go to Jobs Connection. Quebec 344 Units $31,184m NEWS UPDATE Sadly, we report the passing of Rudi Walter , president and founder of Westway Machinery Limited . Rudi was a great supporter of CMTDA and a very long standing member. Rudi started Westway Machinery approximate- ly 30 years ago. The business also involved his wife, Hildegard and their three sons, Frank, Bernie and Kurt. Rudi was always honest, a lover of his work and business and a very successful machine tool dis- tributor. He will be missed but has left Westway in the capable hands of his three sons. The CMTDA 9s purpose and objectives Any individual, partnership, firm, company or corporation may be elected to mem- bership in the CMTDAby an affirmative vote of not less than 2/3 majority of the cur- rent directors of the Corporation. A regular member is one which maintains an office or other recognized place of business, represents at least one recognized manufactur- er of machine tools on an exclusive basis in a designated territory, carries its own accounts, is established and actively engaged in the distribution of machine tools in Canada for at least one year at the time of application, does at least 51% of its busi- ness in new machinery and provides monthly orders booked data in the format set out by the Corporation. Contact the CMTDA at P.O. Box 262, Minden, ON K0M 2K0. Phone (705) 286 6921 or fax (705) 286 6905. The Canadian Machine Tool Distributors Association was founded in 1942 as a trade association dedicated to the marketing of machine tools and services in Canada through distributorship companies. Its aims are: CMTD A Board of Directors To promote friendly business relations among its members To provide means whereby problems affecting the industry can be readily discussed and to co-operate, as a group, to further the interests of the industry by all desirable and lawful means To stimulate growth in the use of machine tools and secure wider markets for these tools To advertise the industry and the specific advantages attainable through the use of machine tools To make available information which will assist users and prospective users to obtain properly selected machine tools To collect and disseminate statistics on market capacity and other pertinent matters To exchange information among members for the purpose of reducing distribution costs and eliminating waste and duplication of efforts To enable the members, as a group, to discuss with the govern- ment, if need be, tariff problems and other issues relating to machine tools. " " " " " " " " The most graphic representation of the market conditions is the Moving Average Orders chart, which plots the year over year moving average. We have also produced a moving average chart showing results over the past two years. This chart shows the true picture of business conditions today. The 2003 Canadian Machine Tool Show scheduled for October 20-23 is fast approaching and your Board of Directors has been working with Reed Exhibitions to insure a successful show. This year, the show will include machine tools, factory automation, measurement technology, tooling and accessories, metal forming equipment and much more. CMTDA continues to be the major sponsor for CMTS and most members are par- ticipating and anxious to display their new technology to prospective customers. Some discussion has taken place concerning the show time frame. Because of conflicting events, it was suggested that a Spring Show might attract more attendees. Both CMTDA and Reed Exhibitions did a survey of members and past show cus- tomers and found the fall time frame to be much more popular with everyone. Lets hope the show puts a spark into the machine tool market. Rudi Walter-1919/2003 Pr esident Albert Leblanc, A.W. Miller Technical Sales Past Pr esident Robert Dunbar, Toshiba Machine Co. Canada V ice Pr esident and T rade Shows Kurt Neiman, Neiman Machinery Sales S tatistics Darren Carroll, Ossco Machine Sales AMTDA Liaison Michael Carr, Elliot Matsuura Can. Ltd. Government Relations John Manley, Machine Tool Systems Inc. Membership Brian Donnelly, Ferro Technique Ltd. Education Juergen Moeglich, UBJ-Boehringer Inc. Upcoming Events August 21, 2003 CMTDAAnnual Golf Tournament, Pheasant Run Golf Club, Newmarket, ON October 20-23, 2003 Canadian Machine Tool Show, National Trade Center, Toronto, ON November 20, 2003 CMTDAAnnual General Meeting/Sales Seminar, Toronto Curling, Skating & Cricket Club HOW TO JOIN THE CMTDA 600 Machine Tools A.M.T. Machine Tools Ltd. A. W. Miller Technical Sales Canada Acme Saw Ltd. Advanced Fabricating Machinery Inc. Akhurst Machinery Ltd. Amada Canada Ltd. Amcan Machine Tool Technology Inc. Barer Engineering Co. Cahmac Int 9l Machinerie Inc. Canadian Hardinge Machine Tools Canadian Measurement-Metrology Inc. CIT Financial Ltd. Citicapital Commercial Corp. CML Machinery Inc. Cutting Systems Inc. DMG Canada Inc. Elliott Matsuura (Canada) Inc. Ellison Machinery Company EMEC Machine Tools Inc. Fagor Automation Canada Ferro Technique Ltd. Forward Precision Tools Ltd. G.E. Capital Canada Equipment Financing Gilbert C. Storey Machinery Ltd. Graham Machine Sales & Service Inc. Gross Machinery Group Haco Canada Ltd. Hartford Technology Ltd. Hascotech Inc. H. H. Roberts Machinery Ltd. Heinman Machinery Ltd. Huron Canada Inc. Ian Jones Sales Ltd. Industrial Machinery Exchange Inc. Iscar Tools Inc. KBC Tools & Machinery Inc. Key Equipment Finance M. Jahn Machine Tools Inc. MF Technologies Inc. Machine Tool Systems Inc. Machineries BV Ltee Machinery Canada Matcom Industrial Installations Inc. Megatel Inc. Mitutoyo Canada Inc. National Leasing Group Inc. Neiman Machinery Sales Inc. Omnitrade Machinery Ossco Machine Sales Paine Machine Tool Inc. Paramount Machinery Inc. Parpas America Inc. Phoenix CNC Tech. Powermaster Machinery Ltd. Quickmill Inc. Royal Products Sirco Machinery Co. Ltd. SMS Machine Tools Ltd. Sparquetec Inc. Stan-Canada Inc Swiss Instruments Ltd. TTL Inc. Thomas Skinner & Son Ltd. Toolmex Corp., Machine Tool Division Top Tech Machinery Ltd. Toshiba Machine Co. Canada Limited Ultra Machine Sales Ltd. Upton & Sullivan Co. Limited UBJ-Boehringer Inc. Wells Fargo Equipment Finance Westway Machinery Limited Yervant Industriel/AL Inc. Recently, George W. Bush, President of the United States of America, approved a bill giving accelerated depreciation to companies purchasing machine tools and other equipment. This new law allows 50% expensing in the first year of use and helps customers justify new machine tools sooner and easier. Your board of directors has decided to have our association join the Canadian Federation of Indepen- dent Business (CFIB) for lobbying and for other ben- efits. CFIB has approximately 105,000 Canadian mem- ber companies and as a result receives an audience from Ottawa easily and promptly. Our membership now has 11 member companies that belong to CFIB. While your board of directors feel that there are many benefits, they also feel that this will increase our exposure with Ottawa and possibly encourage a similar depreciation incentive in Canada. It seems that most of the work putting this togeth- er in the U.S.A. was accomplished by AMT. We will be advising you of the advantages of membership and possibly encourage your participation. Individual membership starts at $265.00 for a one man organization. Your association has hired Mr. Dave Prentice to be the presenter at a seminar organized for November 20, 2003 at the Toronto Curling Skating and Cricket Club. Dave Prentice is one of Canada's most dynamic sales and marketing professionals. He is President of Learning Corp. Inc., a very successful training and management consulting firm. This session will focus on advanced skills, techniques and strategies to cre- ate the conditions that give you a competitive edge. Specifically, the session will deal with the concept of "value based selling". Success in sales seldom just happens. Success in sales takes hard work, skills, techniques and sales strategies. This event will be an interactive learning experience that reinforces skills and introduces new ideas and approaches. In addi- tion, it will be fun, lots of fun. CMTDA Investigating Accelerated Depreciation C.M.T.D.A. MEMBERS MOVING AVERAGE ORDERS CMTS 2003 Update Once again, we are planning our annual CMTDAgolf tournament. The date will be August 21st and we will be playing at Pheasant Run in Newmarket. Thanks to Kurt Neiman for his effort in organizing this enjoyable event. Our Annual General Meeting will be held this year on November 20th at the Toronto Curling, Skating and Cricket Club. Our speaker will be David Prentice. He will be conducting a seminar during the day for sales people as well. We will advise the details for you shortly. As this is my last newsletter column as pres- ident of your association, I want to tell you that the experience has been wonderful. I have learned a lot working with a fine group of directors over the past 6 years. Thank you to all of them and a spe- cial thanks to Jim Burrows for his support and commitment. President 9s Message Continued from Page 1 Best regards, Albert LeBlanc, President CMTDA Offers Sales Seminar

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