Manufacturing AUTOMATION magazine

"Canada's leading publication providing industrial automation news and technology information aimed at the discrete and process industries."

E-newsletter
January 2006
Volume 4, Issue 1

In this issue

From the editor: How are you really doing?
In the news

• Conference board sees growth for Canada in 2006
• Automation business in discrete industries could exceed $38 billion US
• DoALL launches new division
• ISA announces electronic certification testing for 2006

From the editor

How are you really doing?

A report released by TD Bank economists in December suggests that a slowdown in the American economy will present major challenges for Canadian factories in 2006. Specifically, the report says that Canada's automotive and forestry industries will face a decline in the demand for both light vehicles and building materials in 2006, and that we shouldn't expect to see a full-fledged recovery in manufacturing until 2007, at the earliest. (More information on the report is available at www.td.com/economics.)
Clearly, this is not the kind of news with which you want to start your year. January is supposed to be a new beginning, a time when you can look with hopeful anticipation towards the things to come.
But not all messages are of doom and gloom. This e-newsletter's top story is some good news from the Conference Board of Canada. The board reports that it sees growth for Canada in 2006, and that the outlook for the manufacturing sector is bright this year.
Where do you, our readers, fit in? Are you expecting growth in 2006, or will it be a difficult year? Send me a note and let me know what your expectations are for the coming year. Is the glass half empty or half full?
I wish you and your families a happy new year. And I truly hope you are expecting it to be a happy and profitable one.

All the best,

Mary Del Ciancio
Editor
mdelciancio@clbmedia.ca

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In the news

Conference board sees growth for Canada in 2006
OTTAWA, Ont. — Western Canadian cities will top the list of the fastest growing metropolitan economies in Canada this year, just as they did in 2005, according to the Conference Board’s Metropolitan Outlook - Winter 2006.
“In 2005, Western Canada boasted eight of the nine fastest-growing metropolitan economies, led by Edmonton. In 2006, four of the top five are expected to be in the west,” said Mario Lefebvre, director, Metropolitan Outlook Service.
This year, Vancouver is expected to have the fastest growing economy in Canada, with a predicted 31,000 new jobs, and real gross domestic product (GDP) growth of four per cent.
Calgary’s real GDP is expected to grow by 3.8 per cent in 2006, a slightly slower pace than in 2005, while Edmonton will see growth of three per cent in 2006, as energy-related investment remains strong.
A recovery in the goods sector in 2006, particularly in manufacturing and construction, will boost Halifax’s real GDP growth to 2.9 per cent.
Saskatoon’s economy, which posted a 4.5 per cent gain in 2005, will expand by a further 2.9 per cent in 2006.
Ontario cities will post their second consecutive year of modest growth in 2006, according to the report. Real GDP in the Toronto Census Metropolitan Area (CMA) is forecast to expand by a robust 3.7 per cent in 2006, its fastest growth rate in four years. Manufacturing activity should pick up as the sector completes its adjustment to the stronger dollar. Between 2007 and 2010, economic growth in Toronto is expected to surpass, on average, that of all other Canadian cities.
After struggling in 2005, Ottawa-Gatineau will post GDP growth of 2.9 per cent.
Stronger demand for steel is expected to support Hamilton’s key manufacturing sector in 2006. The construction and services sector will also contribute to real GDP growth of 2.8 per cent, allowing employment to bounce back.
Improved manufacturing and construction activity will contribute to stronger economies in London, Ont. and the St. Catharines-Niagara region. The Conference Board predicts that London’s economy will post real GDP growth of 2.7 per cent in 2006, while the St. Catharines-Niagara CMA can expect growth of 2.6 per cent.
With a recovery expected in manufacturing and activity remaining strong in non-residential construction, Montreal’s real GDP growth in 2006 is forecast to reach 2.9 per cent, the city’s strongest economic growth in four years.
www.conferenceboard.ca

Automation in discrete industries to exceed $38 billion US, report says
DEDHAM, Mass. — The worldwide automation market for the discrete industries is expected to grow at a compounded annual growth rate (CAGR) of seven per cent over the next five years. A new ARC Advisory Group study, Total Automation Business for Discrete Industries Worldwide Outlook, states that the market was over $27 billion US in 2004, and is forecast to grow over $38 billion US in 2009.
The study attributes the growth of automation businesses to the number of manufacturers that increased expenditures for automation equipment to set up new plants in Asia and expand production capacities globally. A primary factor contributing to market growth during the next five years, according to ARC, is the continued infusion of capital for automation in many industries and regions driven by globalization.
The report states that China will continue to be the primary country driving automation market growth, while India will also provide increasingly bright prospects for automation. In most Asian countries, end-users continue to build new infrastructure, expand their manufacturing base and modernize existing plants that have less sophisticated or limited automation. Eastern Europe is also experiencing a surge of automation investment. This is in response to increased consumer demands coming from rising wages in a number of countries, and a stabilizing labour market. New activities in the OEM machine builders segment are pushing high growth in Latin America.
www.arcweb.com

DoALL launches new division
TORONTO, Ont. — DoALL Canada has announced a major realignment of the company into two business units — DoALL Global Industrial Supply (DGI Supply) and DoALL Sawing Products.
The DGI Supply Division, headed in Canada by executive vice-president Jim Hobbs, will focus on distributing industrial supplies and providing integrated supply solutions for its Canadian customers.
Jim Carey, the vice-president of sawing products, will lead the DoALL Sawing Products Division, which will manufacture sawing machines, saw blades and cutting fluids for distributors, and support DGI Supply as a major distributor.
www.doall.ca

ISA announces electronic certification testing for 2006
RESEARCH TRIANGLE, N.C. — Starting this month, Instrumentation, Systems and Automation’s (ISA) three certification exams — Certified Automation Professional, Certified Control Systems Technician, and Certified Industrial Maintenance Mechanic — are offered electronically and are available at test sites around the world.
Candidates must meet eligibility requirements and complete an application before taking the exam at a testing centre.
Through a secure delivery network, ISA’s new electronic testing will feature: state-of-the-art testing technology providing the most current industry standards and fast reporting of test scores; an established network of highly secure testing centres that ensure a professional and consistent test experience; and certified proctors to provide a seamless test experience for the candidate and ensure the security of the exam.
As of January 1, 2006, all ISA exams are closed book.
www.isa.org

People watching

Michael Holland

Holland to head Micro Estimating sales NEW BERLIN, Wis. — Micro Estimating Systems, a provider of manufacturing process management, computer-aided estimating and process optimization for the machining, fabrication and metal service centre industries, recently named Michael Holland vice-president of sales. Holland has been with Micro Estimating for 15 years and has more than 35 years of diverse manufacturing experience. www.microest.com

David Barnett

Real-Time Innovations names VP of product management SANTA CLARA, Calif. — David Barnett is the new vice-president of product management for Real-Time Innovations, Inc. (RTI), a provider of software tools and middleware for distributed data-critical systems. Barnett joins RTI with 20 years of experience in the real-time software industry, and an extensive background in product management and marketing. Most recently, he was director of product marketing at Green Hills Software, a supplier of real-time operating systems. Before that, he was the vice-president of marketing for real-time middleware provider Highlander Engineering. www.rti.com

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Product focus: Test & measurement

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Mark your calendars

For more industry events, visit www.automationmag.com, where you can also subscribe to the magazine and read highlights from the latest issue.

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