Datanomix Digest March 2021
Market Observations
Recently, there has been a significant increase in the need for manufacturing capacity in the United States. Our customers are reporting an average backlog of 12 weeks or more. Industries such as semiconductor processing, robotics, defense hardware, and medical components are consistently growing, while other sectors are still recovering from the parts shortages caused by the high demand for industrial goods in 2020.
Based on conversations with CNC toolmakers and distributors, the market conditions for machine tool sales appear strong. Reports show that a few suppliers have been facing stock shortages for at least a quarter, particularly in turning machinery. This shortage is partly due to the need to catch up on parts shortages, including electronic components in short supply across various sectors. This marks a significant shift from the market conditions of a year ago.
Many of the factory spaces we have visited in the quarter are either planning or executing an expansion of footprint. In some cases, factory layouts are redesigned to accommodate more machines in a workflow pattern to increase efficiencies. The rate at which this work is getting done is impressive. Coupled with the low-interest rate environment, this is a significant catalyst for continued growth.
More frequently, we see precision machining companies, at total capacity or more, outsourcing much of the rough machining work to subcontractors. In contrast, they focus their existing machines and more experienced staff on the final precision work that differentiates them from others. This strategic flex move enables an entire network of smaller shops to participate in the growing wave of local production and perform these operations at a fraction of the shop rate of doing this coarse-grain work in-house for the larger vendor.
Meeting Chatter
We’ve had the good fortune of meeting dozens of great innovators in the precision component industry during the last 12 months. There are some very consistent themes we hear across these meetings.
- Ownership has the mandate to find increased productivity out of their workforce and equipment.
- Information systems have not kept pace with modern factory workflows. The information is not current or relevant and something is always lost in translation, requiring interpretation and additional data input.
- With backlogs as deep as they are, asking people on the floor to do anything but run more machines is a non-starter. The need for information to increase productivity is clear. Still, that information needs to be delivered in a non-disruptive fashion that keeps machinists engaged with their jobs, not distracted from them.
Latest News from Datanomix
Product Innovation with Digital Gemba
Datanomix launches its second major product in a year. We announced our Digital Gemba Board on March 2, 2021. We support ProShop, ShopTech E2, JobBoss, and GlobalShop ERP Solutions. Have something different? We’re more than happy to work with you! We instantly transform a paper process into a streamlined immersive experience that delivers answers at the speed of production.
Customer Spotlight: CADREX
In Western Massachusetts, DFF Corporation (CADREX) is a precision manufacturing and electronic assembly company. To meet the increasing demand from customers like Amazon, Siemens, and BAE, they are not only adding capital equipment to their plant but also implementing the concept of the Visual Factory, which includes Datanomix Production Monitoring Software and Digital Gemba Board functionality.
