By Lloyd Graff
Tesla Motors went public this week. The company’s all electric roadster has not been a resounding success financially or mechanically, but has been a publicity magnet. Elon Musk, one of the company’s founders has an amazing track record as an entrepreneur. He has Toyota money behind him now and the modern Nummi factory in the Bay Area to make the new versions of Tesla cars. Tesla chose not to participate in the X Prize competition to produce a production-capable 100-mile-per-gallon car, but the company could still be a big big winner over the next 10 years.
Prices for nice CNC machinery at auction show some firmness in the market. On June 29, James Murphy Auctioneers sold a 2007 NV5000 A1B40, 20” x 50” table for $135,000. The machine had a Lyndex Nikken 5th axis trunnion. A 2005 NV5000A140 Mori 23 x 30 table brought $102,000. The sale of New Concepts in Redmond, Washington, also had a Mori DuraCenter 2005, which sold for $67,000 and a Doosan 3016, 2006 which fetched $25,000. A Zeiss CMM Contoura G2 2006 fetched $61,000.
On the same day Thompson Auction Co. sold Sherman Tool near Dayton. Two Hurco VMX 30 machines new in 2004 sold for $40,000 each, while a little Okuma ES-6 new in 2007 brought $35,000 and a 1998 Okuma Cadet with a 16” chuck brought $45,000.
Last week at a Winternitz sale near Duluth, Minnesota, a 2008 240-C Doosan 3-axis lathe sold for $49,000.
I would describe these prices as reasonably strong, particularly for the Hurcos. On the other hand a couple sales in Michigan, MetaVision in Traverse City and a Hilco and Maynards Auction in Detroit, were softer for machines that ran mostly automotive related stuff. Dealers bought the bulk of the equipment, and at Metavision a lot of older cam equipment went straight to the scrap yards.
Statistics from the Precision Machined Products Association indicate that business amongst its member companies has made a full V–shaped recovery over the last 18 months. After business dropped by a third during the worst of the recession in the spring of 2009, it regained the base level of sales in May of 2010. The ascent of automotive business to the still not so lofty level of 11.5 million units and the rebuilding of paltry inventories everywhere have fueled the resurgence. Weak home sales, tepid employment growth and a depressing stock market have eroded confidence in June, but as the BP mess slips from the news and the stats show the world wasn’t coming to an end confidence will come back.
Question: Do you believe Wall Street insiders are manipulating the market to make President Obama look bad?