Features

The Intersection Of Art and Connecting Mechanics

By Robert Strauss

Today’s Machining Archives August 2007 Volume 03 Issue 08

Fernando Orellana’s father was a civil engineer and Fernando, when he was growing up, liked art. There seemed little to connect them.
“But I saw my father tinkering when he came home, doing this and that. I watched, but with no particular interest,” said Orellana. “Then someone connected the dots for me. What my dad was doing was no less art than what I did. The idea is that he was being creative and trying to figure things out. That is art.”

What finally dawned on Orellana is what has become an exciting mini-trend inmodern art, the connection of mechanics, technology and art, primarily sculpture. Since it is primarily robotics-based, it is called ArtBots, and its advocates are positively evangelical about it.

Drawing Machine 3.1415926 v. 2 by Fernando Orellana

“The definition of robotics is not firm and, frankly, the definition of art isn’t firm either,” said Douglas Irving Repetto, whose day job is as the Director of Research at the Columbia University Computer Music Center, but whose lifeblood is as the guru of the ArtBot movement. He has been the curator of several significant ArtBot exhibitions, the most recent one this summer at the Klein Art Gallery in the University City Science Center, a research facility just off the campuses of the University of Pennsylvania and Drexel University. “It is a diverse and wide open field and full of open questions. The primary one is, ‘What does it mean for a non-human system to be creative?’ Each artist is asking different questions when he or she enters the world of robotics. There is a sense now that there is a lot here, and that we don’t really know the answers yet.”

Repetto curated the Klein Art Gallery exhibit, of which Orellana’s “Drawing Machine 2.1415926 v.2” was a part. Orellana, who is 33, has been tinkering, not unlike his civil engineer father, with the idea of a robot that can make its own art ever since he was an undergraduate at the Art Institute of Chicago.

“I enrolled with a painting and drawing focus, but by chance I took a couple of computer classes that related to art,” he said. The Art Institute of Chicago was at the forefront, he said, of the connection of technology to art. During his undergraduate years, Orellana produced what he called a “clunky” machine that he could program to make a small amount of randomly produced paintings. Then for his bachelor of fine arts show, he modified it so that certain sounds or movements around the machine would cause it to draw one way or another with its appendages, to which brushes were attached.

He heard about ArtBots in 2002 and got to show the drawing machine to Repetto. Soon, Orellana – almost now more like an agent for his robot than the artist himself – sold four of the drawing machine’s drawings through Sotheby’s ArtLink auction house, which emphasizes emerging modes of art from young artists. The Drawing Machine, under 10 years of age even then, was about as young an artist as there could be.

The Drawing Machine Orellana showed at the Philadelphia show was a more sophisticated version than that of his collegiate days. He is now a professor at Union College in Schenectady, New York, where for the last two years, he has been setting up a new electronic arts program in the computer science department. He is trying to get students to integrate all sorts of electronic and mechanical materials into their art.

He does just that with the Drawing Machine. As it sits ready to draw, the spectators can yell, hum, sing, whisper or otherwise create sounds that will affect the computerized system within the machine, changing its movements randomly.

“Once it does not hear anything interesting,” Orellana writes in his description of the piece, “it goes back to automatic drawing, slightly changing its programming by incorporating the data from the last sound it heard.” The drawings are usually a bit chaotic, not at all representational. So it isn’t a tree or a scene of bathers or a self-portrait with a damaged ear, but it is art, according to Orellana.

Wildfower Meadow Glacier (autonomous robotic sculpture that plants fowers & monitors local climate change) by James Powderly.

“Each piece it creates is different in that there is no way it can produce the same thing again. It isn’t a human being after all,” he said. “But they are also the same, like snowflakes. All are alike in that they are essentially the same shape, but different in the micro sense.” Artist Jason Van Anden grew up in an IBM-employeeinfested neighborhood in Yorktown Heights, outside of New York City.

“My parents weren’t IBMers, but there were so many around there that there was a computer lab in my middle school in 1977,” he said. He learned Basic by the time he was in grade school and even though he studied art, “I hung out with bigger computer nerds than I was, so it was natural to incorporate it in my art.”

Now, Van Anden said, he lives in what might be the first ArtBot community in the country, near Prospect Park in Brooklyn.

“There is a ragtag group of us here,” he said. “It’s the do-it-yourself crowd.” Van Anden’s signature ArtBot piece is Neil and Iona, two robots in the quasi-R2D2 mode that interact with people viewing them, and with each other. To Van Anden, they are the first step in finding out whether robots can have feelings.

Neil and Iona are about life-sized, though with television-like heads and pear-shaped bodies on a swivel at the base.

“They have a magical kind of feel to them,” said Dan Schimmel, the curator of the Klein Gallery in Philadelphia, where Neil and Iona took up residence during that Gallery’s ArtBot spring show. “They were definitely engaged with each other. They made sounds like the underwater noises during the mating rituals of whales. It was definitely more mysterious than grunting. It was definitely a happy kind of thing.”

Van Anden developed a software system that allows Neil and Iona to act out improvisational phases. There is a Mac Mini in each head with the monitor and an Ethernet connection in the neck that helps control the motion sensors inside each sculpture.

Neil and Iona have animated facial expressions that change when people – or the other sculpture – passes by cameras underneath their chins.

“When they see someone, it changes the weight for the computer system. It causes a radical shift in the behavior [of the sculpture],” Van Anden said. “Each time the robots interact, they pass information between each other and weigh the probability toward the other one.

In other words, if one is ‘happy,’ it will get sadder as the other one gets happier, until they reach parity.”

With all this going on, Neil and Iona appear, with gallery-goers around them, to be living creatures, according to Van Anden, “living puppets capable of pulling their own strings.”
The Klein Gallery show also had a young student component. Schimmel discovered that schools in both the city and suburbs of Philadelphia were interested in enhancing their technology programs with an artistic component. One school had a robot that worked underwater. It floated around a 100-gallon tub and with its underwater camera, visitors could see what it was looking at through a monitor attached above the surface.

“Another had a robot that you could fasten a brush to, with a remote control like with toy cars,” said Schimmel. “It was engineered to dip into different colors of paint and then swivel around to paint a picture. It was crude, but it was art.

“ArtBots, in this way, can excite kids not only about art, but about the practical applications of robotics and engineering,” he said. “What seems like diametrically opposed things are actually quite complementary.”

Van Anden and Orellana are already on to their next projects. Orellana is looking for ways to anthropomorphize inanimate objects. For a show in Saratoga Springs, New York, he embedded four robots in the ceiling of an elevator. Each time a person got in the elevator, the robots became curious, and that caused the dynamics of the elevator, and the people in it, to change. He embedded a couch with a robot in a living room in another piece.

“Pun intended, the room then became living – alive. I wanted to see what it would be like if a couch was sentient,” he said.

For Van Anden, his own future work may not look exactly robotic, but it will definitely be of the ArtBot genre. “It is about the motion and the gesture, that is what ArtBots is about,” he said. “As a film is to a painting, a robot– an ArtBot – is to a painting.”

The Line on Linear: How Linear Motor Works (New June Issue)

By Barbara Donohue

Today’s Machining World Archive June 2010 Volume 6 Issue 05

A linear motor from Siemens

Electric motors go around and around, right? Not necessarily. About a hundred years ago, the idea of a linear motor was conceived—a motor that directly produces straight-line motion, rather than rotary motion. Over the years, inventors and engineers developed many different types of linear motors, suitable for many kinds of applications. You’ve probably seen machine manufacturers touting products with “linear” in the name, as these unusual motors have begun making their way into machine tools in recent years.

How a linear motor works
The familiar type of rotary motor depends on magnetic attraction to make the shaft rotate. Magnets located around the circumference interact with the magnetic fled produced by windings affixed to the shaft, which pulls the windings around and makes the shaft turn.
You can think of a linear motor as the same thing—magnets and a coil. But they are “unwrapped” to lie fat. There is a fixed component (called the track, platen or secondary) and a moving component (called the forcer or primary).

Unrolling a rotary motor to show how it relates to a linear motor

In this type of linear motor, the track, or fixed component, contains a series of permanent magnets laid side by side along its length, and the moving component contains electrical windings. When current flows through the windings, the resulting magnetic fled engages with the fled from the magnets in the track, causing motion. You can increase the length of the motor simply by adding more fixed sections. In one machining application, the linear motor was 100 feet long.

Manufacturers build many types of linear motors, large and small, with different technologies and capabilities. MicroMo Electronics, Inc., Clearwater, Fla., produces a tiny linear motor that uses piezoelectric “legs” that essentially walk the output shaft back and forth with nanometer resolution. Baldor Electric Company, Fort Smith, Ark., manufactures dual-axis linear motors that position the moving component anywhere on a rectangular platen, across both the length and width.

The linear motors designed for various types of machine tools are typically linear servomotors. For some applications—most often the X and Y axes on a vertical machining center, for example, or all three axes on a laser cutting machine—linear motors provide distinct advantages over the usual rotary-motion-into-linear conversion through ball screws or other devices.
Each model of motor has its own dynamic and force characteristics. When a single motor generates insufficient force, adding a second moving component on the same track can increase the load capacity, said Steve Czajkowski, application engineering manager, motion control business machine tools; Siemens Industry, Inc.; Elk Grove Village, Ill. This is similar to connecting two rotary motors to a single shaft to produce higher torque.

The operating characteristics of a linear motor
Linear motors bring several advantages to an application:

  • High traversing speeds
  • High acceleration
  • High precision
  • Elimination of mechanical transmission elements, such as ball screws
  • Long life: only one moving part, and, because the motor elements don’t touch, no need for lubrication

A sinker EDM machine showing a linear motor in use

Linear motors directly produce the back-and-forth linear motion required by machine tools and many other applications. Where a conventional rotary motor is used to drive a load in a linear motion, some kind of mechanism is required to transform the rotary motion of the motor shaft to the desired straight-line motion. A mechanism such as a linear ball screw, rack and pinion assembly or linkage can do the job. Each type of mechanism places one or more components between the motor and the load. Each component defects to some degree, and everywhere components connect there is a potential for backlash.

With a linear motor, the moving component moves the load to the desired position. A linear encoder, sometimes called a tape scale, reads the location precisely. According to Siemens literature for 1FN series linear motors, “If suitable measuring systems are used and the temperature conditions are appropriate, the motors can be positioned in the nanometer range.”

Because linear motors can accelerate and move very quickly, the controller needs to be able to handle such rapid movement. “It’s not just the motor components. It’s the control,” as well, said Dave Thomas, president of Sodick, Inc., Schaumburg, Ill. “You can add a linear motor to a machine, but if your controller can’t handle it, it loses [some of it’s] advantages.”

“With a traditional ball screw or rack and pinion there is a good deal of mechanical stiffness,” or resistance to movement of the load, Czajkowski said. A linear drive, by contrast, depends on the control system to realize constant position. To test dynamic stiffness, the mass is struck and the axis defection measured as a function of the force of the hit. This can be compared to the force of a cutting tool coming into contact with a workpiece. The lower the defection for a given external force, the better.

The linear motors are fast, and are especially good for use where the table needs to be traveling fast, aerospace and automotive applications, for example, said George Yamane, marketing manager, Mazak Corporation, Florence, Ky. The force the linear motors are capable of providing is less than a conventional drive setup can achieve, so they are best suited for applications with lower cutting forces, he said.

The parts of a linear motor.

Because linear motors accelerate and move so fast, they can cut machining time if the tool needs to move frequently from place to place on the work piece. Even short distances add up, Yamane said, and high acceleration and rapid traversing can save considerable time.

To operate at their full rated capacity, linear motors may require special cooling, with air or liquid.

Linear motor applications in metal cutting
Linear motors were first applied to metal cutting back in the 1990s, in a laser cutting machine, Czajkowski said. Since then, linear motors have found application in machining, laser- and water-jet cutting, electrical discharge machining (EDM) and honing, he said.

The precision and stability of linear motors makes them ideal, even for some applications that do not need their speed. Sodick, Inc., makes linear motors and controls, and builds EDM systems that use them, said Thomas. The linear motors provide better positioning accuracy than ball screws, he said. Ball screw machines typically showed a loss of accuracy after one or two years, and high-precision customers often needed to replace the ball screw driver after three years. Linear motor EDM machines showed no detectable loss of accuracy over five years. By 2001 all Sodick machines used linear motors, Thomas said. Sinker EDM systems take advantage of the linear motor’s speed, too, by using the advancing tool to flush out debris from the hole or cavity, he said. This eliminates the need to drill flushing holes in the work piece.

More recently Sodick developed a line of linear motor machining centers. They are high speed surfacing machines designed for high precision, small features and producing a fine surface finish. “We are able to do what is not possible with a ball screw, which has inherent vibration and backlash,” Thomas said. Linear motors produce next to no vibration and have zero backlashes. For operations with very small cutters, linear motor machines provide the acceleration necessary for keeping the tool in the work with the correct chip load. Consistent loading and the lack of vibration help extend tool life and prevent breakage, he said.

The Mazak F3-660L horizontal machining center uses linear motors

Mazak Corporation uses linear motors in some of its machining centers. “The F3-660L [horizontal machining center] is designed for automotive applications, especially for die-cast aluminum,” said Yamane. “Automotive manufacturers put a lot of money up front for die castings such as transmission casings,” where the F3-660L would be used for operations such as facing and hole making, he said. This machining center uses linear motors for X, Y and Z axes, and offers a traverse speed of up to 208 meters/minute (8189 inches/minute), according to product literature.

Simple concept, big benefits
A machine tool that uses linear motors will offer faster traverse speeds, higher precision, lower vibration and lower maintenance cost than a similar conventional machine. Linear machines can also provide longer tool life and lower operating cost. If you have a suitable application, linear may be worth considering the next time you’re planning to buy.

Feature Story: Saving Akron’s Soap Box Derby (New June Issue)

by Mary Ethridge

Today’s Machining World Archives June 2010 Volume 06 Issue 05

In the shadow of the hulking Goodyear blimp hangar, on a precisely paved and paint-lined hill in south Akron, Ohio, Corbin Bernsen shakes a rolled up sheaf of papers at a dozen of his crew members. It is early April, chilly and windy, and everyone appears tense. They are about to film the first scene of 25 Hill, a family-oriented movie Bernsen was inspired to write after learning last summer in USA Today about the financial trouble and potential demise of the All American Soap Box Derby.

The scene begins but the actor’s words are swallowed by the spring wind. No matter. I know them by heart now.

I would have relished my life’s U-turn at 21, but now, at 51, I find it a little terrifying.

It all started because of a phone call I made last summer to a writer friend of mine at USA Today. I asked her if someone there would be interested in writing a story about the Derby’s financial problems. Someone was and did. Corbin Bernsen read it, and seven months later I’m helping the Hollywood actor produce the movie he says will unify Akron and help save the Derby.

I knew who Bernsen was, of course. I’m a fan of Psych, the USA Network’s longest-running original series in which the now-nearly bald Bernsen plays the main character’s father. I remember him best in those bespoke double-breasted suits as the handsome womanizer Arne Becker in the 1990s hit, L.A. Law. He’s beloved in Northeast Ohio for his role as the Cleveland Indians’ fussy third baseman Roger Dorn in Major League.

Until late last summer, I hadn’t had much to do with the Soap Box Derby, which has been headquartered in my hometown of Akron, Ohio, since 1933. As a writer for the Akron Beacon Journal for 18 years, I’d covered some of its events on occasion. And one of my personal claims to fame is that I went to high school in New Hampshire with a cousin of the Derby racer who cheated in 1972.

But last summer when I heard the Derby was heading into its third year without a title sponsor and falling deeper into debt, I felt surprisingly indignant. My civic pride was insulted. The Derby may be seen as old-fashioned by some people, a little hokey perhaps or too slow-moving in these days of turbo tweeting techies, but it has been ours—Akron’s—for decades, and it is a very good thing.

Cars race down the Derby Downs hill in Akron in 1941. The next year the event was cancelled because of the U.S. entry into World War II.

To build a Derby car—which is powered only by gravity—children work closely with an adult, usually a patient parent. During that one-on-one time, the garage becomes a place where things that might not be said otherwise are said. The children learn about math, physics, communication, teamwork and the vital lesson that if you hope to win; you have to finish what you start.

I couldn’t believe a corporation wouldn’t step up to support such a rare program. It just seems like a no-brainer for a marketing team: spend $250,000—pocket change in the multi-million dollar sponsorship world—help kids, and be associated with a wholesome bit of Americana with a 75-year legacy. Beyond that, racers come from 150 cities in 43 states and seven countries. Although its image may be local-yokel, Fourth of July and Main Street USA, its reality is far more than that. The All American Soap Box Derby is a year-round effort that requires a paid staff of engineers, machinists, marketers, secretaries and maintenance workers, as well as a board of directors, to steer it. In the spring and summer race season, its volunteers number in the thousands.

Chevrolet sponsored the All American Soap Box Derby from 1936 to 1972. In the Derby’s heyday in the 1950s, Chevrolet spent millions of dollars sponsoring and marketing the race. Chevrolet’s presence attracted smaller sponsors as well as plenty of Hollywood glamour. Celebrities including then-actor Ronald Reagan, Rock Hudson, Evel Knievel and O.J. Simpson came to mingle with corporate executives and fans. The late actor Jimmy Stewart attended six times.

Back then, crowds numbered in the 60,000s, compared to the 15,000 who’ve come in recent years. Despite the financial troubles of the Derby, it’s more popular than ever among young people. In 1975, about 100 competed in the championship race in Akron. Last year a record 603 did, although that includes a new Ultimate Racing League for competitors 18-21. (Standard races are for children 7-17.)

Corbin Bernsen addresses a group of reporters on the frst day of flming at Derby Downs in Akron, Ohio.

When I met Bernsen, he expressed other reasons to save the All American Soap Box Derby. The United States is a relatively young country, said Bernsen, and we must preserve those few traditions that have become part of the fabric of the nation. As something that sprouted from a unique time in the nation’s history—the Great Depression—the Soap Box Derby certainly qualifies as a living piece of America’s heritage. Although it has remained the same at its core, the derby has also changed with the times as its tricked-out cars attest; its history is ours. In this time of war, Bernsen believes, the American-grown Derby provides a patriotic rallying point for the country’s declared and instinctive values of family, faith and freedom.

Sadly, the world of corporate sponsorship has changed drastically, according to Roger Rydell, a public relations executive with Goodyear Tire & Rubber Co. and a new member of the Derby board.

“Corporations are looking for return on investment,” Rydell told the Wall Street Journal in a recent story about 25 Hill. “It could be that the metrics associated with that return have become a little more mercenary than in the past.”Nevertheless, I expressed my outrage to William Evans, president of the board of the Soap Box Derby. Knowing of my media background, Evans asked if I could help get the word out nationally that the Derby needed help. That’s when I called the columnist friend at USA Today, and she passed it on to her colleague, marketing writer Bruce Horovitz. In early September, USA Today published Horovitz’s story that outlined the seriousness of the Derby’s financial trouble and its efforts to modernize itself without a pile of cash.

The Derby had lost money four out of the past five years and was, according to Horovitz, “living hand to mouth.” It owed its lender, Akron-based FirstMerit Bank, more than $500,000. It had been making interest-only payments on its loan some months and the bank had cut the line of credit the Derby uses to buy materials to make car kits—a primary source of revenue. If the Derby didn’t get help soon, Horovitz wrote, it would be bankrupt within months. Our hope with the USA Today story was to attract a new national sponsor. What we got was Corbin Bernsen.

As Bernsen tells it, he had nothing to read on that September afternoon as he was stuck on a plane stranded on a tarmac. He grabbed a discarded USA Today from a nearby seat pocket and read about the Derby’s woes.

He felt so upset about the possibility of losing an American tradition; he decided to write a screenplay about it. Seven weeks later, screenplay done, he wanted to come to the Derby’s racetrack, Derby Downs, to see the place for himself.

At the Derby Downs office, Evans, Huntsman and I listened as Bernsen outlined the story for us, which incorporates the real-life troubles of the Derby. In the film, the Derby dreams of 11-year-old Trey Caldwell are threatened, first when his father is killed fighting in Afghanistan, and then when the Derby is shut down because of money troubles. Nathan Gamble, a 12-year-old whose credits include major studio films Marley & Me and The Dark Knight plays Trey. Tim Omundson, who stars with Bernsen on Psych, plays Trey’s father. Through the efforts of Trey and his peers the Derby is eventually saved.

Bernsen then told us he needed about $1 million to make the movie. He envisioned 40 investors at $25,000 each. Then, he turned his intense, blue-eyed gaze on me. “Mary, do 40 people in Akron have $25,000?” he asked. I felt the color leave my face; I could sense what was coming. Rather than turning to his usual Hollywood sources, Bernsen said, he wanted 25 Hill to be an Akron movie—funded and made possible by the people of the community that has nurtured the Derby all these decades. “If I went to L.A. for funding, they’d have only the bottom line in mind. They’d want to make it where and how it would be least expensive,” said Bernsen. “But if the project is funded by the Akron area, then it’s Akron’s movie, not L.A.’s.”

I told him that yes, more than 40 people in Akron had $25,000, but getting them to part with it to invest in a movie would be a challenge.

“Well, let’s do it, Mary. Get me a dozen or so of these people in room and we’ll just talk and I’ll tell them what I have in mind,” Bernsen told me. I wanted to run and hide but I just nodded. I knew what we were in for. Akron is a conservative community that is willing to change, but changes very slowly. Filmmaking is about as far out of Akron’s realm as tire building is out of Hollywood’s.

Two weeks later, I managed to gather a group of wealthy community leaders to listen to Bernsen speak about the Derby and the proposed movie. He gave a speech I would hear over and over, in various forms.

“Computers and televisions are great. Nothing wrong with them, but that’s not all there is to the world. Every kid has the instinct to put wheels on a piece of wood and make it go, and we need to nurture that kind of creative thinking,” Bernsen said. The Soap Box Derby is also a way of life. It’s about families coming together to make something with their hearts and hands.

“It’s spirited competition rooted in community and innovation,” Bernsen said. “We just can’t lose that. If the Derby disappears, the world won’t fall apart, but what will go next?”

Two weeks later, Corbin made the presentation to another group I put together, and two weeks later to another. After four visits to Akron, Bernsen didn’t have one check in the account for 25 Hill Akron Filmworks, the LLC we set up for the investments.

There were two primary obstacles. People wanted the Derby fixed first; then we could talk about a movie. Bernsen explained to those people that a movie would bring thousands of new “eyeballs” to the Derby, which meant a higher profile, a better chance at sponsorship and more awareness among kids. Also, potential investors had little idea how an independent movie makes money and seemed skeptical that they do. They were also tired of throwing money down Akron’s gaping booster hole. After awhile the good feelings run out.

So Bernsen gave them a mini-lesson in film industry finance, dancing painfully around statements that might get him in trouble with the Ohio Securities Commission. He talked about a “typical” independent film of the sort he wanted to make. Such films, he said, can possibly double or triple an investment over a period of 30 to 36 months, a relatively long lag time because of the post-production work that needs to be done on such a “typical” film as well as the hashing out of agreements with distributors.

Long gone are the days when movies went automatically to the theater; long gone even are the days when going straight to DVD was seen as the mark of schlock. The marketing costs associated with putting a movie in theaters across the country are so enormous now, in part because of the skyrocketing number of advertising outlets (millions of Web sites; thousands of cable stations), that even if a film does well at the box office, it may lose money for investors. Today, we can get our movie from a vending machine, on our computer, at the video store or straight from our cable company in addition to seeing it at a theater.

In a late night phone call with Bernsen—and there were dozens—he told me he’d never done anything so difficult in his life. It took two months and a lot of ups and downs to get our first check. It came from someone who wasn’t even at any of our meet-and-greets with Akron leaders and Bernsen.

An architect in an Akron suburb had happy memories of the Derby from his childhood in the 1940s and 1950s. He’d heard about the project and thought it would be “fun” to invest in it. Where were more of those people? How could I find them?

Looking back, I think I turned to the obvious choices first to find investors, which meant I was mining a tired, compassion-fatigued lot. And although we did get support from some of those traditional Akron leaders, most of the money came from sources that surprised me or of whom I’d never heard—mainly doctors, lawyers and other professionals whose names aren’t found on city buildings. These were primarily average upscale Joes, not the Fortune 500 executives and medium-sized business owners I expected. As this issue goes to press in June, we’re still seeking a few investors so we can finish up the movie the way Bernsen envisions. The filming for 25 Hill is scheduled to finish on July 24, at the real-life International Championship of the All American Soap Box Derby.

Crossing the fnish line in the 2009 Soap Box Derby

The Derby is also faring better financially. In December, Akron-based FirstMerit Bank, which held the Derby’s loan, sued the Derby for the $623,000 it was owed. It looked more and more like the Derby would be put on the auction block. But within weeks, the City of Akron stepped in with a plan to back the Derby’s loan, and the bank set up new, more favorable terms.

If the Derby failed, Akron would have to take over the $42,000 annual principal payments, which the city pointed out are less than the $60,000 a year the city has been giving the nonprofit.

“The last thing we want to see is Derby cars coasting down the hill in another city,” Akron Councilman Mike Freeman told the Beacon Journal. The Greater Akron Chamber agreed to help with a business plan and fundraising. The Derby board was remade to include more members of the corporate community, including representatives from Goodyear Tire & Rubber Co. and FedEx Custom Critical.

One thing hasn’t changed since the Derby’s early days: “You’re going to Akron,” are the sweetest words a soap box racer can hear. Having lived in Akron most of my life, I’ve suffered through every Rust Belt, Rubber and Dacron joke imaginable. It’s a bit startling and wonderful to hear my hometown’s name said with such reverence and longing.

That, to me, is a reason to save the All American Soap Box Derby.

There are plenty of them, just ask me. And bring your checkbook.

How it Works: Automated Measurment

By Barbara Donohue

Today’s Machining World Archive: May 2010 Vol. 6, Issue 04

Automatic part-measuring technologies can not only verify dimensions, but can collect the data for you and help improve quality.

Do certain features on certain parts cause you headaches or heartburn? If the answer is yes—and most folks in the machining business will probably answer yes—you might consider using automated measurement techniques to keep tabs on those challenging parts.

Many automated measurement options are available, measuring everything from a single critical dimension to an array of dimensions and forms on a workpiece. You can measure while a part is being machined, watch the dimensions of parts coming off a machine, or use a separate gaging station to measure dozens of dimensions on a finished part. Automated measurement systems come off-the-shelf or custom-made, and their abilities seem to be limited only by the imagination.

Various methods of automated measurement have been used for a long time. But over the last 30 years, innovations in sensors and improvements in computer technology have made automated measurement more and more applicable to different machining processes and machined parts. In addition to measuring parts and collecting the data, some measurement systems can even send information back to the machine.

What, how and when to measure
David Hayes, president of Control Gaging, Inc., Ann Arbor, Mich., described three classifications of measurements, according to where and when they are made:

In-process—inside the machine during the machining process
In-line—as soon as a part comes off the machine
Post-process—as a separate step, placing the part in a standalone gaging fixture, for example.

In-process measurement might include contact sensors within a grinder that measure the part while it is being ground. The WG2 gage head from Control Gaging Inc., is designed to withstand the hostile environment inside a machine. It protects the sensors within a small enclosure and contacts the part with fingers that are connected to the sensors. Though you can mount a touch sensor on the spindle of a machining center and use that to measure parts on the table, ideally the measuring device should have no relation to the mechanism that created the part. You want independent verification of part dimensions and need to have any error in the machine show up in the measurement, according to Don Engles, manager of the automation group at Productivity Inc., Minneapolis, Minn.

Grip-Gage-Go solution from Control Gaging Inc., two standard gages are attached to a robot gripper.

In-line gaging measures the parts immediately after a process is finished. For example, you might measure the outside diameter of individual parts as they come off a grinder.

In post-process gaging you measure the part outside the machine. You’re “measuring in a world that is good for measurement,” said Jack Gaughan, vice president of sales and marketing at Edmunds Gages, Farmington, Conn. In a dedicated fixture, you can accommodate any necessary measurement conditions or adjustments. If a part coming out of a lathe is hot, for example, the measurement system can incorporate temperature compensation to allow for thermal expansion.

Preventing bad parts
To help keep parts within spec as tools wear or other drift occurs, some automated measurement systems can send measurement data to the machine control. In-machine measurement with feedback to the machine was used for grinding processes starting in the 1980s, Gaughan said. In the last decade, the technology has developed to provide this ability to feed dimensional information to other processes as well.

With the addition of a macro to the program for the part, the control can receive measurement data from the gaging system and calculate any necessary change in offset. Then it sends the offset adjustment to the machine. This way, adjustments are made before the dimension(s) go outside the tolerance band. This concept works with dimensions that can be changed with an offset adjustment, but not with others. Surprisingly, Engles said, shops sometimes forget this. A turned outside diameter is an ideal candidate, but an inside diameter produced by a drill,  reamer or boring bar, can’t be corrected automatically.

Types of sensors
Many different types of sensors are used for automated measurement. Here are a few examples.

Linear variable differential transformer (LVDT): This is a type of contact sensor that measures displacement and can be used for measuring linear dimensions. Basically, the LVDT is an electrical transformer that produces a voltage output that varies with the location of a magnetically permeable core attached to a measurement probe.

Optical sensor: Similar to a video camera, this type of sensor captures an image of the part and determines the dimensions from the image.

Laser sensors: Several different kinds of laser sensors make non-contact measurements of distance. The Keyence LK-G5000 laser displacement sensor, for example, uses a triangulation method. The relative positions of the laser emitter and the detector allow the position of the target to be calculated according to the location at which the reflected beam strikes the detector.

Air gage: Air pressure or air flow can be used to measure the clearance between a part and a fixture. As clearance increases, the flow goes up and the pressure goes down. Air gaging is suitable for checking tolerances up to 0.005”, Gaughan said. This is an old technology and had fallen into disuse, he said, but it is ideal for many automated measurements.

 Measuring the inside diameter of a bushing after the first machining operation. A robot arm has placed the workpiece in the  gaging  fxture (the blue box). The gage amplifer in the foreground  shows the  ID measurement

Measuring the inside diameter of a bushing after the first machining operation. A robot arm has placed the workpiece in the gaging fixture (the blue box). The gage amplifier in the foreground shows the ID measurement

Application examples
Very large parts and very small parts can be measured using the appropriate sensor technology and any necessary fixturing, special lighting, or other setup. Vision systems can measure small or delicate parts without having to touch and possibly damage or distort them. On the other extreme,  Montgomery said that wind turbine blades are measured between grinding operations, using many sensors.

Sometimes measurements are used to control subsequent processes. Engles told about a particularly creative use of a measurement feedback system. For a small-engine manufacturer, Productivity Inc. provided a system for the CNC lathe that turned the pistons. The finished piston needed to weigh a certain amount. When machining was nearly complete, a robot removed the piston from the lathe and placed it on a scale. The scale sent the weight data to the machine control. A macro in the CNC program used the weight measurement to calculate the cutter compensation required to remove the correct amount of material to achieve the desired weight. The robot returned the part to the lathe and the turning process was completed.

Bringing automated measurement on board
If you have a part that is giving you headaches and you think it would benefit from automated measurement, contact a company that provides this type of equipment. Be prepared to discuss the print, the tolerance problems it presents and how you machine the part, plus lot size and other relevant information. Is there a regulatory requirement to retain measurement data, for example?

The good news about automated measurement is “this kind of technology has gotten down to where small, non-automotive shops can implement it and get a good return on investment,” Engles said. “You could hardly even do this 10 years ago. Now, it’s becoming more popular, and the price is coming down. What you could do for $100,000 10 years ago costs much less now.” Metrology equipment has become more affordable and machine tool control technology is more flexible and open than it has been in the past, making it easier to implement measurement feedback.

The cost of an automated measurement system or device varies greatly. A manual-load fixture measuring one dimension and feeding the data back to the machine might start at $3000, Gaughan said, and you could spend millions on a complex measurement station that checks a great many dimensions. From another company, a rough estimate for a simple, manually loaded gaging system with feedback was “no less than $15,000.”

When you encounter one of those headache-producing parts, check out your options for automatic measurement.  You can start small with a simple gaging fixture, and over  time, as costs go down and measurement capabilities  improve, you may find that automated measurement can help you get a handle on more and more of those troublesome parts.

Horizontal Drilling Shale Set Us Free–Making Natural Gas Accessible in the U.S

By Bridget Mintz Testa

Devon’s Bridgeport natural gas processing plant is one of the largest in the country, serving hundreds of gas wells in the rapidly expanding Barnett Shale feld in north Texas.

Devon’s Bridgeport natural gas processing plant is one of the largest in the country, serving hundreds of gas wells in the rapidly expanding Barnett Shale feld in north Texas.

Until about three years ago, it was widely thought that most natural gas in North America was either gone or too expensive to drill. Today, new approaches to extracting this fuel have revealed drillable reserves sufficient to last another hundred years at current levels of consumption.“Unconventional” natural gas is the source of this new abundance. Conventional natural gas is typically found along with oil. Just as the easiest oil is gone, so is the associated natural gas. Shale gas is the main source of the enormous increase in reserves.

Shale gas lies in deep high-pressure and high-temperature formations 10,000 to 25,000 feet (or more) beneath the Earth’s surface. Shale is impermeable, and it must be fractured repeatedly to create pathways for the gas to flow back to a well hole. Without a wide variety of precision-machined products that follow the American Petroleum Institute’s specifications, like tubular steel, couplings, valves, wellheads, drilling bits, bridge plugs, perforating guns and packers, unconventional natural gas extraction and production would not be possible. Any good machine shop can make oil and gas products, but getting a foothold in the industry involves much more than cutting steel.

The Long Road To Exploiting Shale Gas
“The oil and gas industry has known for decades that shale is a source rock for hydrocarbons,” says Chip Minty, a spokesperson for Devon Energy, a major player in unconventional gas. “Shale has produced the reservoirs we’ve used for about 100 years.”

Over geological time periods, oil and gas from shale formations moved into permeable sandstone reservoirs. Those sandstone reservoirs were reached by drilling vertical wells through the shale.

Attempts were made to extract the hydrocarbons in shale, but they weren’t very successful. “The old literature said that the typical shale gas well would produce about 500,000 cubic feet per day in its first year and then drop off to a very low level (unprofitable) for the next 30 years,” says Rick Smear, a director of the natural gas practice at Navigant Consulting in Houston.

“In 1981, George Mitchell of Mitchell Energy directed his engineers to look into tapping the Barnett Shale north and west of Fort Worth,” Minty says. Mitchell had leased about a half million acres of land above the Barnett Shale, where he’d been producing oil and gas from conventional sandstone reservoirs associated with the formation. Mitchell knew, however, that the shale held far more hydrocarbons. He drilled more than 100 vertical wells into the Barnett Shale to learn how to get the gas so it could be produced, according to Steven Holditch, head of the petroleum engineering department at Texas A&M University in College Station.

“Mitchell’s people started experimenting with fracturing the shales,” Minty says. “They tried a number of methods and started seeing progress in the late 1990s. That was when they started honing in on hydraulic fracturing, which is injecting water under high pressures into the well. This created enormous pressure on the rock, which shattered the shale. That creates the porosity necessary for the gas to move to the well borehole.”

Only some 150,000 acres of the lease could be reached this way. In the other roughly 350,000 acres, the shale lay above the Ellenberger Aquifer. When hydraulic fractures penetrate through shale into water, the water seeps into the wells, which “kills” them. In the 150,000 acres Mitchell was drilling, tough layers of limestone encased the shale, both top and bottom. There was no possibility of seepage.

Devon Energy bought Mitchell Energy in 2002. The company wanted to exploit those other 350,000 acres of the Barnett Shale. It applied a familiar industry technology, horizontal drilling, to the Barnett Shale and also figured out how to use the shale itself as a barrier against the Ellenberger Aquifer.

“We drilled down into the Barnett, but took the well laterally through the top half of the shale, using the bottom half as the fracture barrier,” Minty says. “This let us get to the other 350,000 acres. We also discovered that by drilling horizontally, we could make the well even more productive than vertical wells because we were exposing the well to a much greater area of the shale.”

Since 1981, seven more major North American shale gas basins have been developed. “We produce 20 trillion cubic feet per year of natural gas in the United States and import three trillion cubic feet from Canada,” Smear says. Including all natural gas sources, “the total recoverable resource in 2008 was 2247 Tcf,” he says. “At 23 Tcf per year, that’s about a century of low-greenhouse-gas-emitting fuel for the United States.”
Can’t quite visualize those volumes? Try this. Lake Superior, the biggest of the Great Lakes, is 350 miles long, 160 miles wide and an average 483 feet deep. It contains 2900 cubic miles of water (more than all the other Great Lakes combined). The total volume of recoverable natural gas Smear cites, at 2247 Tcf, would fall about 5.26 Lake Superiors. The volume of natural gas the U.S. uses in one year, 23 Tcf, is about 5 percent of Lake Superior.

Hydraulic Fracturing
“To produce natural gas at commercial flow rates and recover enough volume to make a profit, the horizontal wellbore must be treated to create cracks or fractures in the shale,” says Holditch. This is done through a “fracture treatment,” which means applying high-pressure hydraulic fluid at specific locations along the wellbore. “The cracks provide the paths for the gas to flow to the wellbore,” he says.

Before hydraulic fracturing ever begins, a vertical well, or “hole”, as it’s called in the industry, is first drilled to assess the quality of the shale formation. If the quality is good, data about the formation from the original vertical hole is used to gradually turn the well horizontally. The point where the well becomes horizontal is its heel and the point furthest from the surface is called the toe.

A horizontal hole is typically 2000 to 6000 feet long and 8 to 12 inches in diameter, according to Holditch. Once this hole is drilled, the operator must decide whether to leave the hole open or cased and cemented. Most commonly, the second method is chosen: steel casing is run into the well and cement is pumped down and around the casing to anchor it in place.

To fracture shale in stages by the conventional method, sections of the horizontal hole are isolated with bridge plugs. These devices completely plug the hole from the casing to the cemented wall of the formation to isolate sections of the wellbore. Bridge plugs can be made of steel or steel alloys but are usually made of composites that can be drilled easily.

Once a section is isolated, the hydraulic treatment must be applied, and for this, the casing, cement and shale must be opened up in some way. Perforating guns, which are tools that contain shaped charges, create entry cracks in the shale. The perforating gun shoots high-pressure jets of gas and particles out in 360 degrees, all around the gun.

Next, “fracture fluid” is pumped at high pressure down the casing through the perforations in the formation. Mainly composed of water with small amounts of bactericide, a friction-reducing agent, and a polymer to increase viscosity, fracture fluid also contains large quantities of sand. When this high-pressure fluid is pumped in, the entry cracks expand and penetrate further into the shale. Pressure forces the sand into the fractures, where it remains, propping them open. The industry refers to the sand as a “proppant.”

Fracture treatments start at the toe of the well. Each stage requires setting bridge plugs and perforating. Subsequent stages are pumped by moving closer to the heel of the well, until the entire horizontal hole has been “stimulated” to allow the gas to flow.

“Each stage of the treatment can take a day or more to complete, although two stages can sometimes be pumped in a single day,” Holditch says. “If an operator pumps 10 or more fracture stages in a single well, it can take days to completely fracture-treat the shale formation along the entire length of the wellbore.”

Once all the treatments are complete, the shale is laced with fractures, most of which will be propped open with sand. In the first few days after fracturing are complete, fracture fluid flows back along with small amounts of gas. Before the gas can be produced in significant quantities, the bridge plugs must be removed by milling. All this debris must be cleaned out and removed with water or brine before real production can begin.

Machining for the Oil Bidness
If you’d like to make bridge plugs, perforating guns, packers, tubing or any other oil and gas products, the good news is that you don’t need any special or exotic machining skills. The bad news is that getting into the oil and gas “bidness” isn’t easy. And due to the boom-bust nature of the industry, a conservative business owner should think twice about relying solely on oil and gas for a living. Nevertheless, a good shop with the right attitude and capabilities can do it.

Mike Bowman, president and owner of Hunt and Hunt, a contract machine shop in Houston that specializes in perforating tools, identified a couple of barriers to entry. The industry is now “chasing low-cost overseas manufacturing,” Bowman says. He says these are “just low-quality, low-tolerance parts. High-quality, intricate parts are still made in the United States, but [the overseas manufacturing] makes it very difficult to compete as a domestic manufacturer.”

Another barrier is the face-to-face nature of the business. “The oil field likes you to come down and discuss a project, so being close to your customer is important,” Bowman says. “It’s all about in-person relationships.” The headquarters of the Big Four oil services companies— Baker Hughes, Halliburton, Schlumberger and Weatherford—are in Houston, which has more than 4,000 machine shops. If you’re not in or near Houston, Bowman believes your shop faces a disadvantage.

These barriers can be penetrated. If your shop is far from Houston, but has special capabilities, like the ability to work with exotic materials such as inconel or hastalloy or handle large-diameter tubular goods of 40 inches in diameter or more, that may trump the distance issue.

“Machine shops that want to get into oil and gas need to have capacity, good prices and quality,” says Mark Adamson, owner and founder of Tech-Seal International, a 40,000-square foot facility in Houston. Adamson makes flow-back equipment and a solar-powered pump for the oil fled. By capacity, he means knowing how to work with large tubular goods and how to provide fast product delivery. Because so many of the products in oil and gas are tubular, Adamson says that knowing how to work with those goods is very helpful.

He also stresses the value of certification by ISO or the American Petroleum Institute. “Certification by either of these shortens the time to become an approved vendor for the major oil and gas service companies,” he says. “They won’t even send out an audit team otherwise.”

Dan Themig, CEO and c0-founder of Packers Plus, a Canadian oil service company, advises machine shops to develop relationships with the large oil services companies. “That usually starts with small jobs,” he says. “Develop the expertise to machine oil-field products. Pick specific products. A starting point would be to meet with companies that purchase downhole tools, learn their requirements and then start developing the expertise to do that work. The larger service companies have the staff to set up inspection and quality standards. Then transition to some of the smaller services companies.”

Besides providing certification, The American Petroleum Institute is helpful in other ways. “The API publishes about 500 standards,” says Dave Miller, API’s standards director. “But if you winnow those down to the specs that facilitate discussion between buyers and sellers, it’s about 60 standards.”

API’s Web site, www.api.org, features a list of API-licensed manufacturers, along with the products they make categorized by standard. Machine shop owners and managers can study this list to identify products they’d like to make. “Then they can go to the publications part of the site and search for the specs they want,” Miller says.

API holds regular standards meetings around the country. “The meetings draw 300 to 500 people, including owner-operators, oil companies, oil services companies, manufacturers, consulting engineers and government representatives,” Miller says. It’s an opportunity to network face-to-face with people in the industry, discover their needs and where you and your shop might fit in. Registration fees are $400 to $500 for the week-long meetings. “Look at the site and the composite list,” Miller says. “Zero in on a particular area and maybe buy one or two of the standards. Then maybe go to a meeting to find out about the needs in the industry or if a standard is going to change.” (To go directly to the list, go to www.API.org, click on “certification program,” then “monogram program,” then “composite list.”).

Taking this advice can help a machine shop overcome distance from Houston and build its own network of oil and gas customers. Packers Plus started out in Canada and didn’t start working with the oil and gas industry in Houston until several years after its founding. Despite its small size of 300-400 people, it’s now a major player in the industry, and its technology is so highly sought-after that in 2005, Schlumberger bought an undisclosed minority share of the company. It also entered into a partnership where Schlumberger would internationally promote several Packers Plus technologies. Themig won’t cede any more control, however. He wants to keep the company closely-held and focused on being world-class. It took Packers Plus a few years to find its niche, as it did for Bowman and Adamson. The two Houstonians each did job-shop work initially, but then they found specialties that set them apart. That’s the path to success for machine shops in oil and gas.

African Lean: Pioneering Precision Machining in Ghana, Africa

An iron ore mine site reclaimer

An iron ore mine site reclaimer

In 2007-08 I spent a year in Benin, West Africa, as a volunteer with the U.S. Peace Corps. Although Africa is easy to write off as a hopeless mess, there’s an important culture and movement toward economic change fueled by locals and West African nationals living abroad that is not visible in the calamity-focused news.

Michael Frank, the COO and founder of HUFRA, a precision machining company in Accra, Ghana, in West Africa, is one of those people. He has made it his mission to bring precision machining technology to his homeland by establishing one of the first CNC job shops in West Africa. Frank finished his Masters degree in manufacturing engineering in Russia and worked for 10 years in Britain. He now splits his time between his family in the UK and his homeland of Ghana, trying to get his fledgling business up and running.

Frank is attempting to do what thousands of immigrants worldwide are doing without notice from the international press—bring technology, opportunity and education back to their homelands. For instance, thousands of Turks who labored as machinists in Germany have returned to Turkey and started job shops. Today Turkey has a well-developed manufacturing core with many shops sending product back to Germany.

But does Frank have a fighting chance at being successful in Africa? At this stage of development in West Africa, with its ever-present economic, political and religious tension, is it possible to make a precision machining business not just function but thrive?

A young man at work in the  precision machine shop, HUFRA.

A young man at work in the precision machine shop, HUFRA.

Imports from China currently fill most of the need for precision metal components in West Africa, and the product is cheap and abundant. A lack of machine-ready raw materials make start-up costs for a manufacturing business enormous and on-time delivery of product difficult. The workforce, although willing, must be trained from scratch in the art and science of machining. Frequent power outages, a lack of replacement parts and too few trouble-shooters make every small issue blow up—for example, a breakdown can require calls or even a trip to the UK for a new control. Also, steel bars must be shipped by 40’ container, a significant upfront expense.

But Frank is trying to make it all work, and claims honorable intentions. “I decided, because of the poverty in Africa, to set up some technology in Ghana,” he said during our phone interview as he was traveling to the UK to search for more start-up capital. Frank has fund raised and spent about $1.8 million so far, primarily on machines, the HUFRA building, which is located in a tax-free zone set up by the Ghanian government, and salary for the company’s 22 employees.

The company has four CNC machine tools; a 4-axis milling machine, a 3-axis milling machine, a 2-axis lathe with a bar feeder and a 2-axis long bed lathe for machining parts for the mining industry.About 70 percent of the company’s business comes from the mining industry, which is booming in West Africa because of the region’s abundance of natural resources, including gold, diamonds, petroleum and iron.

Earth moving equipment for the mining industry is hydraulic and HUFRA has contracts to make glands, pistons and bolts including large bolts designed specifically for mining. He also has orders for cutting shafts from chrome rod. HUFRA also make bronze and stainless bushings with complex oil grooves for AngloGold Ashanti, the second largest gold mining company in the world. Frank has taken on the responsibility of training his workers from scratch.

With no programs in Ghana to train a CNC-based workforce, Frank went to the local polytechnic institute and found technically-minded young men he could train, including two university “chaps” and one experienced mechanical engineer. With obvious pride, he said that training these young men has been one of the largest successes of the project.

Frank has shown his clients, founders, the Ghanaian government and  local non-profits that Africa is a source of trainable, hard-working and  technically able workers.

The Hufra Precision  Machining Company  located in Accra,  Ghana, West Africa. Photos courtesy Michael Frank

The Hufra Precision Machining Company located in Accra, Ghana, West Africa. Photos courtesy Michael Frank

Not to mention, they work for cheap. Frank pays his new recruits about $200 per month, experienced workers $300-$400 per month and technically trained people and engineers$700-$1000 per month.

Frank’s assertions that few people want to invest in Africa ring true in my experience. Working on Peace Corps projects, volunteers often ran up against the same wall—no funding, no projects. It was normal for volunteers to solicit money from family and friends back home to complete their projects. But most found that surprisingly diffcult.

For Frank this lack of startup funds has been especially frustrating. “The Chinese are there [investing],” he said. But the Chinese aren’t socially minded do-gooders like Frank would like them to be.

So far he has about 10 major investors, including non-profits, government grantors and interested individuals. It’s a hard sell when his records show no profits since HUFRA officially began in 2006, and even harder when you hear him speak of the lack of the bare necessities that are needed to make sophisticated machinery work smoothly. Frank intends to create satellite locations in other countries in West Africa after he gets the Ghana location up and running smoothly. But his seemingly honorable intentions to create employment and develop the skills of the locals may be just that—honorable intentions.

Frank himself admits, “The project is big, but my [financial] backbone is slim.” He speaks of designing machinery to improve food production, create employment and reduce poverty with such passion one wants to believe he can do it all—raise $10 million in capital, train all the “chaps” in West Africa, and heck, conquer the AIDS epidemic in his spare time. But it doesn’t seem totally realistic. The world is plagued by a recession, Africa’s reputation as a place for investment is dismal and the infrastructure to successfully run a business as sophisticated as precision machining may not be fully in place in West Africa for years to come.

To watch a video inside the HUFRA machine shop in Ghana, West Africa, visit www.youtube.com/user/HUFRACT

Pulp Web & Iron:Where Do You Find Information on Used Machinery?

Today’s Machining World Archive: April 2010 Vol. 6, Issue 03

Tom Scanlan, president of Surplus Record,in front of the Lyric Opera of Chicago, whichshares the same building as his 87-year-old usedequipment listings company.Photos courtesy of Noah Graff

Behind Tom Scanlan’s desk at the office of Surplus Record in downtown Chicago sits an old manual Royal typewriter. It’s a reminder to Tom of the roots of the information business his grandfather started 87 years ago to help transform the “junk” business into a more prestigious “machinery” business.

Surplus Record is a stubby 5” x 8” monthly digest of thousands of listings of used machinery offered for sale by dealers. Sixty-five thousand copies hit mailboxes each month, and the publication has more than double that number on its well-massaged circulation list. It also has around 60,000 listings on its Web site, which averages about 7,000 searches a day in its database.

But Tom told us the typewriter served another purpose during the height of Internet bubble hysteria when he was listening to offers to buy the family company almost weekly.

Scanlan said that Surplus Record was an attractive business to the dot-com guys because of its content. “They had more money than anyone in the machine tool world had ever dreamed of. These were the fastest talking, most educated and unknowledgeable guys about the machinery business. We were pretty far along on the Internet, but I wanted to soak up all the knowledge I could get out of them. So when these guys in their 20s and 30s came in, I hid all of the computers and modems and pulled out the old Royal and carbon paper so they would think they could transform our business. Some of those guys were so arrogant,” Scanlan recounted.

Tom ultimately did sell the business to Ariba Corporation in 2000. “It was a family decision. I have two sisters and a brother who were not in the business. If I had owned Surplus Record 100 percent, I never would have sold it.”

But Tom has continued to run the firm while remembering its Royal typewriter origins and investing heavily in the data systems that make the company relevant in 2010.

Noah Graff and I wanted to get Tom Scanlan’s take on the used machinery industry that he and his family have been immersed in since machine buyers would hop on the New York Central sleeper from Cleveland to check out the Kearney and Trecker mills on Lake Street in Chicago.

“My grandfather would walk down Lake Street hustling ads. The dealers would often be loading or working on the machines. He would urge the guys to put on a jacket and tie so the customers would have more respect for them,” according to Tom.

The senior Thomas Scanlan helped start the Machinery Dealers National Association (MDNA) in 1941. The association’s office was at Surplus Record, and housed its first board meeting there. “Josephine Corcoran, who became my step grandmother, was the first executive secretary of the MDNA,” Scanlan recounted.

Tom has a long perspective on the machinery business. Fresh energy came into the business when the World War II veterans got to sell war assets to other veterans who were starting up in manufacturing. They rode the Korean War build-up and infrastructure build-out in 1950s and 1960s into the Vietnam War. Tom said Vietnam fueled the machine tool business, but listings in the magazine went down because dealers had no inventory to advertise.

During the 1970s business grew moderately. Tom’s father diversified into chemical, oil and gas processing machinery listings, which compensated for slackness in metalworking. The oil boom in the seventies saw the development of the Texas and Oklahoma machinery markets.

In the 1990s Tom was running the business and watching the movement of manufacturing, first to Japan and then China. Surplus Record’s business grew slowly as more brokers entered the machining business. More transparency was coming into the business as pricing became less of a mystery, traditionally known only by stocking dealers in the old dealer fraternity. eBay was starting to be a factor and auctions were becoming a preferred way for firms to dispose of equipment.

These trends continued into the post 2000 decade. Tom sees the distinction between dealer and auctioneer dissolving as the Web software to conduct auctions has come down in price. Several dealers have morphed into auctioneers while maintaining traditional used machinery distribution firms. New dealers are selling used, and some used machinery firms have added new machinery lines. Scanlan used to shun auction ads, now he takes them gladly.

Surplus Record continues its dealer protection policy by refusing listings of machinery for sale by end users. Scanlan travels one or two days a week visiting his dealer clients in their offices and maintains cordial relations with the MDNA, despite a 41-year annoyance that the association his family helped start became his competitor through its Locator book and database.

Scanlan views eBay and its close ties with Google as major competition. eBay’s auctions have been debased by piracy and manipulation, but it is still a significant machinery advertising medium, though Tom regards its listing organization as confusing and less effective than his own.

Surplus Record has pulpy bound volumes of the monthly magazine prominently displayed for visitors who come to its offices. Tom believes in the value of the printed listings and has eight employees assiduously working on mail circulation daily. But he knows that the whole enterprise depends on the Web.

Surplus Record is a hybrid family business—run by a third generation Scanlan, but owned by a publicly held Internet firm. Many of its customers are multi-generational family firms. The machinery business that Surplus Record has always been a part of is iron based, information dependent and family driven—as it has been for 87 years. Pulp, Web, used machinery and Scanlan continue to flourish together.

How It Works – Rapid Material Removal

Today’s Machining World Archive: March 2010, Vol. 6, Issue 02

Exair 2” Super Air Nozzle,showing pattern of air flow.Illustration courtesy of Exair Corporation.

The customer sends you a print. It specifies material, dimensions and surface finish. It’s up to you to make the part to spec, and you’re hoping to put in as little machine time as possible. You know how long it would usually take to make the part, but you have control of many aspects of the process, and maybe there is something you can do to speed it up. You select the tool and set the feeds and speeds, and your CAM system provides the tool path. You can select the mechanical capacity of the machine, within the limits of the machines you have in the shop.

Where there is a lot of material to remove, as with dies, molds, aerospace parts and a variety of other jobs, a big part of how you stay competitive is in being able to remove as many cubic inches of metal as possible per minute while maintaining good surface quality and acceptable tool life. There are many different approaches to maximizing those cubic inches/minute. A good place to start investigating your options is with your tooling supplier. Most have had a lot of experience with applications like yours. They can offer a range of cutting tools to do the job and provide help in applying them, no matter which way you decide to maximize your material removal rate.

Large Depth of Cut

The first approach you might think of is to take a larger depth of cut than you might normally—as large of a depth of cut as possible. You’ll need lots of torque and horsepower, strong tools designed for this type of service and superior workholding. If you’re set up for this kind of heavy material removal, it can save you a lot of machining time on the parts that need it.

Many shops are accustomed to thinking in terms of going light and fast, said Kenneth Accavallo, product specialist for milling products, Sandvik Coromant US, Fair Lawn, N.J. “It’s hard to explain when a company is not used to doing heavy milling. They have to look at the machine’s horsepower, rigidity, torque, the size of the spindle” to get those cubic inches of material removal.

Accavallo said he has been seeing more interest in this approach recently. “A lot of manufacturers of machine tools seem to be going bigger now—bigger machines, bigger spindles. Customers buying them want to explore the capabilities of [their new] machines.”

Tooling is critical for these challenging applications. Accavallo explained two new face mill lines from Sandvik designed for heavy material removal. The CoroMill 300 features round inserts, he said. The round shape gives the inserts extra strength. The CoroMill 360, available in sizes up to 20 inches in diameter, is designed to take up to a 0.709” depth of cut. One application in the nuclear
industry, Accavallo said, is heavy roughing on Inconel billets. “Customers want to take off as much material as they can.”

High-feed

Family of high feed millingtools from Seco Tools.Photo courtesy of Seco Tools.

If you reduce the depth of cut from the usual, you can run more surface feet/minute (SFM) and feed faster, said Todd Miller, milling product manager, Seco Tools, Troy, Mich. The net result can be material removal rates up to one-third faster than the conventional approach, with the added benefit of increased tool life.

Miller gave the example of machining steel, 4140. With a conventional 4” face mill with seven teeth, as listed in the tooling catalog, you’d take a 0.120” depth of cut, with 650 SFM, and a feed of 0.012” per tooth. This would give you feed rate of 52” per minute, and you’d remove 25 cubic inches of material per minute. With a high-feed 4” mill, you’d take a 0.060” depth of cut, 0.040” feed per tooth, 985 SFM. That would give you a 245” per minute feed rate, and 63.6 cubic inches/minute of material removal. This represents a 27 percent increase in material removal rate.

The extremely fast feed—in this example, 245” per minute versus 52” per minute for conventional machining—can be alarming when you first run it, Miller says. And older machines may not be able to handle that rate of feed. The mechanical stability of the ways and feed mechanism, as well as the machine control, need to be able to handle it.

Tool Path

Another way to increase material removal rate is to use your CAM system to provide a tool path that allows the highest material removal without undue strain on the tool. An innovative way to do this is to optimize the angle at which the tool engages the workpiece. This can minimize the forces on the tool, allowing you to run it to remove material as fast as it is capable.

Mike MacArthur, applications engineer at RobbJack Corporation, Lincoln, Cal., gave an example of a titanium part that had previously taken about four hours to cut. With the controlled-engagement-angle approach and the proper tooling, the cut was complete in 15.7 minutes.

He gave other examples. “We cut stainless steel at 150” per minute and titanium at 75” per minute, instead of 2” per minute,” MacArthur said.

The different CAM software packages have their own names for this capability. MacArthur has found that customers often already have the capability in-house in their existing CAM system, but don’t know how it works. He recommends they call their CAM software provider and ask, “Does this software have the ability to control the tool engagement angle?”

Tool manufacturers are designing tools that take advantage of these newer programming approaches. For example, RobbJack has a 3-flute end mill designed for use in aluminum, which incorporates vibration dampening. In another line of tools designed for high removal rates, the flutes are designed with different helix geometries to prevent vibration. This can allow up to double the material removal rate, he said. Where a conventional tool would squeal and vibrate and damage the cutting edges, this line of tools stays very stable and quiet while it cuts, MacArthur said.

Other tool-path methods are available that can improve material removal rates are:

  • Plunge milling
    As the name suggests, a specialized plunge mill cuts into the material in the Z direction, then withdraws and plunges again about half a diameter away. Plunge milling can be done from an edge or the outside of a hole, or the tool can gradually ramp its way into the workpiece. Repeated plunges can remove a lot of material. Because the cut is in the Z direction, the cutting
    forces are transmitted straight into the spindle, which minimizes side loads and vibration.
  • Helical interpolation
    The tool starts on the surface and ramps its way into the material in a circular pattern, making a hole or pocket.
  • Trochoidal milling
    This uses a similar tool that cuts into the workpiece from the side, making a slot. The tool is generally about half the width of the slot and advances along a straight line, making small circles in a swirling kind of motion, gradually advancing the slot through the material.

Above (left to right): Helical interpolation. Plunge milling: Depth of cut is ap. Plunge milling: Z-axis plunge followed by stepover. Ramp milling: The ramp angle, (alpha), is determined by the geometry of the cutter. Illustrations courtesy of Seco Tools.

Chip Evacuation

Tool manufacturers recommend dry machining for many heavy material removal processes, especially in steel, Miller said. Since you’re not applying a flow of cutting fluid, chip evacuation can become a challenge when cutting dry. On horizontal machines, this doesn’t pose a problem, of course—the chips fall out of the cut by gravity. On vertical machines, however, chip accumulation can be a problem, especially when you’re working in cavities or pockets. In this case, Miller suggests using an air blast to blow the chips out of the way. As a last resort, you could use a stream of cutting fluid, but that tends to reduce your tool life considerably, Miller said, as the cooling effect on the tool can produce thermal cracks in the tool’s coating.

Specially designed high-power air nozzles can remove chips effectively from the cutting area with a maximum of pressure and a minimum of noise. Exair Corporation, Cincinnati, Ohio, manufactures a line of high efficiency air nozzles that provide a high-force, focused-flow, low-noise air blast suitable for chip evacuation, while using a relatively small amount of compressed air. Which nozzle to use? If you can use a normal compressed air gun to blow chips off the part, Exair’s 1100 family of Super Air Nozzles will do the job, Exair marketing manager Gary Gunkel said. If a higher-force air blast is necessary, Exair’s 2” Super Air Nozzle provides higher force, also in a controlled pattern and at high efficiency.

No matter which approach to high material removal you decide to use, you will be able to turn more metal into chips faster using these methods. The job, the material and your machining and programming capabilities will determine which approach you can take. In the past, high material removal rate machining had the reputation of being a “black art,” MacArthur said. But you should talk to your tooling vendor. With the proper tooling and the right programming, machining at a high material removal rate is very predictable, he said.

Machining for the Stars

2009 MTV Music AwardsPhoto courtesy of Tait Towers

Michael Tait threads his pinky through a loop of fabric on the side of a piece of the stage for Bon Jovi’s “The Circle World Tour.” It’s one of more than 40,000 moving parts that Tait’s company, Tait Towers, has designed and predominantly manufactured for the massive tour stage.

“You think this looks simple, but roadies come in and tell us that this should be up three inches or to the right a bit. We’ve got to be precise, got to get it right,” said Tait, a former roadie and lighting director himself back in the early 1970s for the
band Yes. “We have some of the world’s most demanding customers and they can’t bear to have things screwed up.”

Tait Towers is the premier builder of sets for rock tours and elaborate casino and set shows. It’s a fun business, Tait admits, but it would be nowhere without his sophisticated machine shop filled with CNC machines. His designers and machine operators play the computer keyboards like Rachmaninoff at the piano and most often come up with staging as mellifluous and intricate as any of the great composer’s concertos.

When it isn’t Bon Jovi counting on Tait’s headquarters way out in Pennsylvania’s Dutch country it’s Bruce Springsteen, for whom Tait developed a now-ubiquitous click-and-lock, thus nut-and-boltless connecting system for decking and modular parts.

“This is a business that relies on getting from place to place, mostly on a daily basis,” said Tait. “The easier we can make it to take apart and put together these sets, the more valuable we are. And I have to say that CNC has made our growth, production and our advances really possible.”

Tait studied engineering at the Royal Melbourne Institute of Technology in his native Australia before wandering off to England, entranced by the rock scene. The Clair brothers, owners of a leading audio, video and lighting/design firm, invited him to sleep on their couch when he wanted to devise what was then an elaborate set for Yes. It was circular and cut in pie-shaped pieces so the band could play in the round and, thus, have a bigger audience encircling them.

“But we did it with saws and rulers and whatever passed as modern in the 1970s,” laughed Tait, leaning on his Haas CNC lathe, one of a dozen CNC machines the company uses in its four-building campus. “When one part didn’t fit because it was too wide or not straight enough, we sanded it and did it again.”

“It’s almost laughable now that we have minute tolerances from the CNCs, but you did with what you had back then. Now you can do just amazing stuff without worries,” said Tait.

Aluminum Extrusion Inventory Racks. Photos courtesy of Tait Towers

Teaming up with the Clair brothers, Tait built up his rock staging reputation and soon, like the better mousetrap maker, everyone started beating a path to his remote door in Lititz—ironic because also headquartered in Lititz is Woodstream, the makers of the Victor
mousetrap, the largest-selling trap in the world.

“With Woodstream, our businesses and Wilbur Chocolates and others, we have an amazing workforce here,” said Tait, who employs about 120 workers, almost all hailing from the Lititz/Lancaster area.

One of them is Jared Keim, who at 25 is Tait Towers’ machine shop manager. Keim was an avowed motorhead in high school and didn’t think he would ever go to an academic college. Instead, he headed to Thaddeus Stevens, a local technical school, and discovered that
working with computers and machines was his thing.

“I really didn’t know that Tait was this rock business. It was just a job where

CNC Mill for machining aluminum staging members. Photos courtesy of Tait Towers

I could use the CNC training I got,” said Keim, talking while squeezing a box on his computer that would display a part for the stage of Lady Gaga’s tour. He showed off a coffin lock, perhaps the most integral part of any rock stage, he said. It comes apart like those Russian dolls-within-dolls, a set of three larger pieces, each containing several smaller metallic and plastic parts. The coffin locks bind together the larger slab parts of the staging—which for Tait usually measure four by eight feet. The coffin locks have both springs to make sure the staging has a little give for the always-bouncing rock stars and, on the outside, a plastic sheathing that keeps it tight as well. Tait laughs and says that in the rock world, that piece is called a “fluffer.” “That’s what they call the woman in porn movies who, well, keeps things rigid,” he said.

It’s CNC technology, said Tait, that keeps things going at Tait Towers, which he said is set to be a $50 million business in 2010.

“When I bought my first Komo 15 years ago people thought I was nuts,” he said. What was the purpose of that? How was I going to make enough use of it?

“In the end, though, rock bands wanted more and more bells and whistles. With those CNCs, we were able to make whatever parts we could design,” he said.

Take the Bon Jovi tour set, for instance. Bon Jovi wanted innovative video as part of his tours. Tait Towers came up with a sort of Venetian blind effect, with doublesided video screens that open and close, expanding from 10-by-10-feet to 10-by-30 feet. When they are closed, crowds see full video 360 degrees around. When they separate, the crowd sees Bon Jovi live.

“As you may imagine, there has to be precise tolerance for all of that,” said Tait. “It is used many times and has to be packed away carefully to go to the next stop. You just couldn’t do that before CNC. We discovered that first, so we got the reputation and the business.”

Back in his Yes days it was a big deal to have two trucks to cart sets around. Now, Tait said, it is not unusual to have 20 trucks carrying a set from a Friday night show in Seattle to a Saturday show in Portland, or wherever. He estimated that the Bon Jovi set Tait is currently working on would need 23 trucks. For the last U2 tour, the group’s elaborate set had to go by plane to its opening show in Barcelona—a cost of $300,000 just to start.

“We are not cheap, at least up front,” said Tait, who would not reveal any particular charges but noted that seven-figure design and
construction costs were the norm. “What we save them in road workers and break-down and put-together costs are immense later on.”

Aluminum components for the Bon Jovi show. Photos courtesy of Tait Towers

Tait moves his hand along a piece of staging from Metallica’s last tour. The ends are rounded, the connecting parts smooth and with precise tongue-and-groove fits, no bolts are seen. With shipping and tight corners in trucks, he said, jagged corners are intolerable. There are no jigsaws or power drills in rock-roadie hands any more.

“We machine everything as smooth as we can,” he said. In her 2006 tour, Barbara Streisand wanted to come down a long staircase with sparkling railings along the side. Naturally, those railings had to come in pieces, but Streisand was going to slide her hands down them. “Each piece had to fit seamlessly together. Imagine Streisand gasping after she caught her hand on some edge, or if she even looked unsteady. Our machines were able to make it seemless, and have it be taken apart and put back together just as precisely at each stop.” Tait repeated that seamless railing for the Michael Jackson show that never happened because of the singer’s death. It’s not only older singers who need such joints on long, cylindrical items—as is apparent in Britney Spears’ pole-dancing sets or Lady Gaga’s almost-maniacal acts.

Down the road a bit from Tait’s unobtrusive building in the middle of a small industrial park is Tait’s new warehouse. It stores lots of old sets and items that rock groups either don’t want any more or couldn’t store anyway. In a way, it is a sort of rock museum. There are
the spray-foam guns that Tait designed for the Jonas Brothers, Britney Spears’ mainstage decks, Elton John’s piano deck and Springsteen’s video walkway. Each piece still has its sign and coding along the facing, so it could be snapped together again if another date came up—Metallica, the Eagles, Radio City, celebrating the stages of life.

“You could say this is just another boring machine shop, because in some ways it is what anyone would do—have an order and get it done,” he said. “But then these orders are from some of the great artists of our time who know what they want—or at least have cocktail
napkins that say what they want.”

Tait said that his company has thrived, ironically, because the recording business has dived.

“They have to make their money on tours, and thus they want everything newer and newer, but want to know it won’t fail them,” he said. “Our reputation as a machine shop is important. We’re not just pie-in-the-sky, but people who can talk to their tech guys and assure them that it will all go together and come apart, so all [the artists] have to do is play the music and dance.”

Actually, said Tait, few if any musicians come to Lititz. The rock tour business is larger—the design and tech employees outnumber the musicians these days, and that is who Tait deals with. He had lunch with Bette Midler in downtown Lititz once, but he said no one even asked for her autograph.

“The people out here are respectful of your business, and they keep to theirs,” he said. Tait recalls a story that his sound-company friend, Roy Clair, told him about the day Billy Joel came to Clair Brothers to do a little testing.

“He was on the main street in the back of a car and was a bit lost,” said Tait. “He rolled down the window and asked someone where Clair Brothers was. The person said, ‘Oh, I can’t tell you that. They like to be private.’

“This is why I am in Lititz,” said Tait with another Australian chuckle. “Billy Joel, be damned. We are a good machine shop.”

Not Available for New Projects

by Mary Ethridge

Diversify. Diversify. Diversify.
In 2009, cheerful economic development types chanted that
mantra to frantic auto suppliers. Reinvent yourself, they said,
as they paraded shiny growth industries before tired eyes.

Think aerospace, they said, or alternative energies, or medical devices.

By diversifying into those areas manufacturers would protect themselves from a collapsing auto sector and its attendant woes, they reasoned. Expertise in precision machining, automation and systems integration along with an established supply chain would fit well into one of these growth industries.

It sure sounds like a good idea. But ideas are free, and diversification usually isn’t. Auto suppliers that followed the big thinkers’ suggestion to explore new routes to revenue found themselves up against the same roadblock time and time again: the closed doors of lenders. The weak auto market, the general decline of the economy and the credit squeeze make it vital for companies to reinvent themselves and, at the same time, more difficult for them to do so. This dearth of capital has been a complicating and sometimes insurmountable problem for automotive suppliers trying to diversify.

“It’s been a major problem for many but especially for anyone serving the automotive market,” said Rob Kiener of the Precision Machined Products Association (PMPA), who recently testified on the issue before Congress. “I think that by trying to prevent another crisis the banks are creating a whole new one.”

The Original Equipment Suppliers Association has estimated that when all the figures are tabulated, about 15-20 percent of the 4,000 U.S. auto suppliers will have gone out of business through 2009. Monthly billings just to the three Detroit automakers from the U.S. suppliers fell from an average of $16 billion to about $7 billion in less than a year.

Bill Shepard, president of Die-Matic Corp., a metal stamper in suburban Cleveland, was one of those who took the diversification message to heart. More than two-thirds of Die-Matic’s business is tied to the auto industry. The remainder is in small appliances, mining and construction, where sales are healthy but not big enough to sustain the company over the long term, let alone grow it. Shepard explored the high-growth medical device market but found that even if he mastered the industry’s complex requirements he would need new equipment. He was set up to stamp big pieces of metal, but the medical industry typically needs small parts, thoroughly cleaned and individually packaged. New equipment, of course, requires money. Even if Shepard had gotten over some of the other hurdles, he says he doubts he could have managed to convince a bank to follow him into new territory. He’s heard the similar horror stories from his peers.

Vacant auto dealership.

“They’re cutting off credit of good, solid companies after relationships of years and years,” said Shepard. “These aren’t flyby- night operations, but the banks want nothing to do with them.” For the time being, Shepard has pared his operations dramatically, laying off talented, skilled people he took years to find and train.

“It’s a shame, and I certainly don’t want it to continue this way,” he said. “I don’t really know what the answer is yet.”

About an hour south of Die-Matic in Akron, Ohio, machining company owner Lee Combs is trying to figure out how to fill a $60,000 order when he needs to spend $24,000 for 4,140 steel rings to do it.

“I would normally use a line of credit to buy what I need, but you can’t do business as normal anymore,” said Combs, who also operates a CNC school to retrain oldschool machinists that was featured on the NBC Nightly News in November. “I can’t finance it. My bank doesn’t want me. They told me that. They want to shed anyone who’s not all about cash flow.”

Combs said he went to a holiday party an Akron bank gave for its business customers in December, but it wasn’t out of the spirit of the season.

“I went so I could get a free drink off a banker and eat their shrimp,” Combs said. “I figured it’s the only thing I’ll get from them.”

Combs said only about 25-30 percent of his business is automotive and that he’s been diversified for years, but that doesn’t seem to matter to the banks.

“They see automotive and they don’t want you in their portfolio,” said Combs.

In mid-December, the Federal Deposit Insurance Corp. reported U.S. bank loans fell by $210.4 billion or 2.8 percent during the third quarter—the biggest drop since the FDIC started keeping records in 1984. Banks booked $2.8 billion in third-quarter profits, reversing a second-quarter loss of $4.3 billion, while loans to businesses fell 6.5 percent. Borrowing from the Fed for nothing and buying 10-year treasuries is a no-risk, can’t miss strategy for banks.

Several surveys of metalworking manufacturing companies estimate that roughly 75 percent of these businesses cannot secure sufficient credit for day-today operations, equipment acquisition and expansion, among other activities, according to PMPA. In some cases, a small to medium-sized manufacturer will see its line of credit significantly reduced or revoked, or a loan called due to the health of its manufacturing customers, not because of the company’s own business decisions. Or, a company will sometimes be denied credit because the lender is having its own troubles.

“Countless members I speak with who still manage to maintain profitability tell me they have held decades-long relationships with their bank but are now being told they must offer their life insurance collateral to help secure a loan,” said Rob Kiener of the PMPA.

Kiener said that even when a manufacturer seeks to renew a loan with its existing bank, it can take three to four months to process because of all the new lending requirements and paperwork, despite taking no more than 30 days in the past. Small manufacturers are required to purchase raw materials on their own, and some aren’t seeing full payments from customers for six months, prompting a cash flow squeeze. The federal government agrees. “We need to see banks making more loans to their business customers,” FDIC Chairman Sheila Bair said in a news conference. “This is especially true for small businesses.”

But the bankers have said they are doing what they can, and the federal government is partly to blame. Their lending is not only limited by a sluggish economy but by hawkeyed federal regulators eager to avoid the kind of shaky loans that led to the banking crisis in the first place. In addition, businesses are reluctant to expand in a poor economy, so loan applications are down.

GreenCleen Surface Preparation. Photo courtesy of Mark One Corp.

Aggravating the situation, according to Kiener, is the decline in value of assets traditionally used as collateral for loans. “You have a piece of equipment that used to be worth $100,000 and it’s now worth $10,000,” he said. Real estate has also lost value, so even owners who put up their own homes as collateral, which happens primarily when banks seek loans through the Small Business Administration, can’t convince lenders to make the loan.

But despite the grim lending picture, some auto suppliers have managed to diversify and expand, using a bit of creativity and daring to avoid banks altogether.

Gary Lawton, president and majority owner of Buell Automatics in Rochester, N.Y., is grateful he didn’t have to depend on a bank to expand his non-automotive business. Buell, which was founded in 1966 and has 44 Davenport screw machines, had a long-time relationship with a client who liked their work. The client told Lawton they had another job they wanted Buell to do, but it required CNC capabilities. Based on the client’s commitment, Buell purchased two Citizen A-32 Swiss CNC machines and got the job. Besides the investment in new CNC equipment, the company also purchased a Durr Ecoclean parts washer in early 2009.

“Fortunately we were in a position to pay cash and didn’t have to rely on the banks,” said Lawton.

Buell’s business has traditionally been about 60 percent automotive, but now has dropped to around 45 percent. This new non-automotive business more than compensates for lost automotive work, Lawton said. “You don’t want to put the cart before the horse and take the risk buying new equipment, but in this case it worked out for us by getting the commitment up front,” said Lawton. “These days you’d better be creating some revenue without the help of a bank if you want to survive.” Lawton said he’s optimistic about marketing his new CNC capabilities to lure new customers this year.

Frank Kestler, president and chief executive officer of the Mark One Corp. in Gaylord Mich., said it was a matter of some luck and a boost from a state organization that allowed him to expand his company into non-automotive territory. For years, the company’s bread and butter was designing and building material handling and surface preparation systems for automotive metal fabrication applications. In 2005, a steel drum manufacturer approached Kestler and asked if Mark One could develop a more efficient and eco-friendly way to clean the rolls of steel used to make the drums. They came up with GreenCleen, which eliminates chemicals by using only hot water and brushes.

Kestler began to think about marketing GreenCleen to other non-automotive industries but found that banks considered it speculative, even though he had already sold one system. Kestler turned to the Michigan Economic Development Corporation’s (MEDC) Auto Suppliers’ Loan Diversification Program. Through the program, the MEDC buys a portion of the loan from the bank and offers a grace period up to 36 months on its portion. The $1.1 million awarded Mark One Corp. protects the bank while giving Kestler the freedom to market GreenCleen to a variety of industries. In November, he shipped a GreenCleen machine to a U.S. company doing business in China. He said it was the biggest sale of the year for the company, which employs 50.

Bridget Beckman, spokeswoman for the MEDC, said the program was started with what the MEDC could “scrounge from its couch cushions”—about $12 million.

“It’s a start, but unfortunately, the need is about $1 billion,” she said.

Successful applicants to the program should have a solid plan already in progress, Beckman said. About $6 million has already been awarded.

“They chose us because we were already well on our way. We just needed a little support,” said Kestler. “You probably aren’t going to get it on just an idea.”

Kiener of the PMPA said programs like the MEDC’s are worthwhile, but what manufacturing really needs is a new attitude from the banks.

“If customers can’t receive the products they need because manufacturers can’t get the credit they need, they’re not going to wait. They’ll source them from overseas,” he said. “These lost jobs, once outsourced, will never come back to the U.S. We have to solve this problem”—and we have to solve it right now.”

Page 1 of 212
Maier

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