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Robert Swinehart. President & COO, Emerson Power Transmission & Chairman, ABMA. THE BEARING INDUSTRY. A Perspective on The Bearing Industry and ABMA Robert Swinehart, Emerson Power Transmission. 2005 World Bearing Sales. $30 Billion. Global Market Shares. Global Market Size: $30 Billion.
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Robert Swinehart President & COO, Emerson PowerTransmission& Chairman, ABMA
THE BEARING INDUSTRY A Perspective onThe Bearing Industry and ABMA Robert Swinehart, Emerson Power Transmission
2005 World Bearing Sales $30 Billion
Global Market Shares Global Market Size: $30 Billion
USA Bearing Industry • Because of Product Standards and relatively low trade barriers very much a World Market versus Regional • About 250 manufactures worldwide but 75% of market served by seven companies • Typically segmented as Anti-Friction (Rolling Element) and Plain (Sliding) • Production per day 25 – 30 million • Sizes 1/16” to 45 feet (15 meters)
USA 2005 Consumption Breakdown Source: ABMA $6.5 Billion
USA 2005 Consumption$ in Billions $4.8 ABMA Stat’s Participants + $1.2 Other ABMA & Non-ABMA + $2.0 Imports - $1.4 Exports = $6.5 – $7.0 USA Consumption
USA Bearing Applications Source: ABMA
USA Bearing Manufacturing Source: US Census Bureau and ABMA Millions of Dollars
Imports / Exports $ M I L L I O N S O F D O L L A R S $ $ $ $
Three Currently Hot Industries • Material Handling • Trucking and Railroad • Gas and Oil Exploration
Material Handling Equipment Manufacturers Growth in 2005 Over 2004 New Orders +20.9% $22.3B Shipments +24.3% $21.7B Unfilled Orders +10.9% $ 6.5B Imports +23.3% $ 4.6B Exports +29.8% $ 3.1B Consumption +23.4% $23.2B …..and they predict record levels through 2007
North American Class 8 Sales Source: Automotive Aftermarket Suppliers Association. www.aftermarketsuppliers.org, 2005.
Canadian Market Development Source: ABMA Millions of Dollars ($CAD)
Canadian Shipments Breakdown (%) Source: ABMA
Canadian Bearing Applications (%) Source: ABMA
Industry Trends • Consolidation / Globalization • Alliances & Outsourcing • Developing country production • Price - competitiveness in the world market • Improved steel quality, new & better materials, improved seals and lubricants • Better installation, maintenance and monitoring • Increased prices for steel and energy Net, Net – Longer Bearing Life per Dollar than 30 Year Ago
ABMA • Started in 1917 to facilitate bearing production during World War I. • Initially called the Anti-Friction Bearing Manufacturers Association (AFBMA). • In 1993, the organization decided to change to the American Bearing Manufacturers Association (ABMA) to include component manufacturers & Plain Bearing mfgs. • Membership Requirements - Manufacture bearings or major components in the US. New membership initiative currently initiated by Board of Directors.
Role of ABMA • Conduct Industry Conferences and Meetings • Develop and Maintain National and International Standards (Bearing Technical Committee) • Organize Targeted Education Programs (Engineering and Education Committee) • Conduct Wage & Salary Surveys Specific to Bearing Industry (Human Resources Committee) • Compile Bearing Industry Market Statistics (Statistics Committee) • Track Legislative and Regulatory Issues that may directly impact bearings. Active coordination with NAM.
Overview of ABMA Meetings • Annual meeting once a year - Historically held in Fall, but changed this year to Spring in conjunction with AGMA (America Gear Manufactures Association) • Directors meeting & 3 day conference • Theme oriented such as Supply Chain, Automotive Trends, or Employee Benefits. • Washington meeting – Historically held in the Spring, changing to the Fall this year. Focused on maintaining contacts with government agencies and elected officials. • Directors meeting & 1 day conference • Leverage Washington location with presentations by government agencies in D.C. based associations
Overview of ABMA Meetings • World Bearing Summit – ABMA plus Japan Bearing Industry Association (JBIA) and Federation of European Bearing Manufactures Association (FEBMA). • Three meetings to date: 2001 / 2003 / 2005 • Primary focus – Statistics • Transitioning to WBA (World Bearing Association) • More on WBA in a few minutes
Technical Advisory Group – TC4 - Provides US Position on TC4 Standards Technical Advisory Group – TC20 - Provides US Position on TC20 Standards * ABMA Leadership ABMA Product Standards ABMA ANSI ISO * BTC - Bearing Technical Committee - Provides Direction - Approves Standards B3 - Approves as ANSI - Publishes Standards ISO TC4 Rolling Element Brgs Plain Spherical Brgs Insert Brgs Tapered Roller Brgs Miniature & Inst Brgs Linear Brgs . . - Develops, Approves & Publishes Standards BTC Subcommittees Load Ratings . . - Develops Standards * * ISO TC20 Airframe Bearings - Develops, Approves & Publishes Standards
ABMA Education Program • Early 1990’s, ABMA discussed the need for continuing education in Bearing Technology. • Ted Harris, a former SKF employee and Penn State Professor, worked with ABMA and ad-hoc committee of ABMA members to put together a curriculum. • Program began in 1995 with three courses at Penn State. • Through 2005, ABMA has offered sixteen different courses and expanded relationships with Georgia Tech, Notre Dame and STLE. (Society of Tribologist & Lubrication Engineers) • Nearly 1,000 Managers & Engineers have attended.
2006 Education Program • Bearings and their Lubrication • May 10 w/STLE in Calgary, Alberta • Advanced Concepts of Bearing Technology • June 26-29 @ Penn State University • Essential Concepts of Bearing Technology • Sept. 6-8 @ Sofitel Hotel, Chicago O’Hare • Lubrication & Wear: Advanced Concepts • Sept. 11-13 @ Notre Dame, South Bend, IN ….And ABMA’s program is endorsed by BSA ….BSA members attend at ABMA member rates
ABMA Statistics Program • Current Reports • Quarterly Shipment Statistics by Bearing Type and Size • Quarter Turns Report (23 Pages) Shipments $ and Pieces by Quarter by Bearing Type Inventory $, Imports, Exports Reconciled to MA332Q Capacity Utilization • R & D / Profitability & Capital Expenditures • World Bearing Statistics
ABMA • ABMA has 27 member companies manufacturing approximately 80% of the bearings produced in the US. • Similar organizations throughout the world • Japanese Bearing Industry Association (JBIA) • Federation of European Bearing Manufacturers’ Association (FEBMA) • Chinese Bearing Industry Association (CBIA) • India, Ball & Roller Bearing Mfrs. Association (IBRBMA)
World Bearing Association (WBS) • Proposed as an Association of Associations • Constitution drafted on March 27 in Frankfurt, Germany by ABMA, JBIA, and FEBMA • Contemplates other bearing associations joining • Activities Contemplated: • Statistics Standardized and consolidated • Initiatives against counterfeiting • Other such as environmental, trade, ?? • First meeting Kyoto, Japan – Sept 2006