- 03 July 2008 -
SUR/FIN 2008 Steers Into Indianapolis

Quality technical educational programs and business seminars; invaluable networking opportunities and information sharing; and new product demonstrations and membership activities on the exhibition show floor. SUR/FIN 2008 attendees were treated to all of this and more at the Indiana Convention Center in Indianapolis last month. Following are some highlights from the show:

Exhibition
More than 900 visitors came to SUR/FIN 2008 in search of new products, equipment, and answers to address their day-to-day finishing challenges. And the scores of exhibitors and vendors on the show floor—companies specializing in everything from metal finishing chemicals and supplies to machinery and components—were more than happy to oblige.

“We were so busy that we couldn’t break for lunch on [the first day],” said Christine Venaleck, director of marketing of Process Technology, a Mentor, Ohio–based manufacturer of wet process heating and cooling equipment. Traffic was equally brisk across the hall at the Plating Process Systems booth. “We’ve had a lot of international attendees stop by the booth,” said Mark Schario, executive vice president. “We loved the show, and we obtained a lot of quality leads.”

Schario’s experience is in keeping with other vendors. In fact, one company told Metal Finishing that it generated more than 75 leads—and that was just on day one! “ SUR/FIN is the one place were you can check out all the resources/suppliers in one stop,” said Eric Olander, vice chairman of the SUR/FIN 2008 Steering Committee and president of Electrochemical Products, Inc. (EPI) of New Berlin, Wis. “I heard one potential customer say he was so busy that he needed more time to complete his projects.”

Others attested to the show’s ongoing evolution. “SUR/FIN today is remarkably better than the old SUR/FIN, and we’re continuing to look for ways to further enhance it,” said Tony Revier, Uyemura International. “Hats off to the Steering Committee.”

(For more highlights from the exhibition, look for the July/August issue of Metal Finishing, which mails in mid-July.)

NASF Announcements
During the MFSA Council Annual Meeting, the National Association for Surface Finishing (NASF) announced several major objectives for the short and long term. Among the announcements:

• The association is focusing on bundling more NASF-sponsored events (i.e., Washington Forum, NASF Management Conference, SUR/FIN, etc.) with the aim of offering a more affordable package to potential attendees. This would also encourage greater recognition of those suppliers that sponsor such events, according to John Kinne, MFSA Council member. Proposed changes would also call for higher premiums for “non-NASF” members seeking to participate in the association’s events.

• NASF disclosed plans to revamp its tier-based dues structure. According to the NASF, the goal is to encourage more corporate membership without adding further financial burdens. In the face of membership attrition (NASF brass say supplier membership is down 15%), Ray Lucas, NASF president, called for greater grassroots recruitment efforts. “It’s really up to the existing members to get new members,” he said. “Imagine how many we could get if every member signed on just one new person.”

• The Supplier Committee is developing a robust roster of projects. According to MFSA’s Kinne, this entails rejuvenating programs that have languished over the years. NASF also plans to streamline its website (www.nasf.org) while making it more descriptive and user friendly.

• SUR/FIN 2009 is slated for mid-June in Louisville, Ky.

Education
The featured J.D. Power & Associates’ presentation that kicked off the Automotive Symposium on Tuesday, June 18, lived up to its advanced billing as session attendees listened attentively to Dr. Bob Schnorbus’ outlook for the global automotive industry. As chief economist and director of macroeconomics at the renown research firm, Dr. Schnorbus covered a vast spectrum of issues ranging from short- and long-term automotive industry production forecasts and the impact of sourcing on sub-suppliers, to the impact of rising fuel costs as well as general economic challenges. In his statistics-laden presentation—based heavily on hard numbers gleaned directly from auto dealers—he offered a sobering assessment of the automotive market and economy. Following are some of his findings:

• U.S. automotive sales reached a record 17.4 million units in 2000—a record for the industry. Based on first-quarter 2008 performance, the annualized rate for the year would amount to 12–13 million units. “If current trends persist, those numbers would equate to ‘scrappage,’ ” Dr. Schnorbus said. “In other words, people would only buy cars to replace older, non-working models.”

• Global light vehicle sales were 66 million units in 2006; by 2012 that number is expected to reach 82.9 million. China sold 7 million cars last year and is expected to add 1 million units each year.

• First quarter 2008 GDP would be 2.2% higher if not for the troubled housing market, which is down 1.2%, and the struggling automotive sector, which is down 0.4%. “Housing and automotive sales are getting killed,” Schnorbus said, adding that auto sales historically follow housing. Although signs point to a nearing to the bottom, he said the main question is, ‘Will the rest of the economy remain strong enough to support these two softening sectors?’ ”

• Consumer confidence is at historic lows. And as confidence declines, so go auto sales—though not quite to the same degree, Schnorbus noted. Likewise, the sub-prime housing fiasco is putting a pinch on available credit—and tight credit conditions are preventing people from getting auto loans. “The current financial crisis is four times greater than what we saw in the ’90s,” Schnorbus said.

• Profitability of foreign automotive manufacturers has allowed them to absorb the impact of the weak U.S. dollar. And the weaker the dollar, the more incentive for companies to move plants to the United States.
  
• Outlook for alternative vehicles. “Fuel-cell-based cars always seem to be perpetually five to 10 years away,” Schnorbus said. “By 2015, we estimate one in four light vehicles sold in the U.S. will be based on fuel alternatives.” Schnorbus cites the barriers to building more alternative vehicles: challenges in energy generation; lack of necessary infrastructure in local communities; and the hesitancy of legislators to pass the appropriate regulations.