Mach comment

Whilst some companies are understandably cautious about committing to MACH 2010 event in the current economic climate, others signed on the dotted line straight away. One such company is Mills CNC and Dave Tudor caught up with its managing director, Nick Frampton to get his take on the subject.
 
First of all Nick, how has 2010 kicked off for Mills in general? There is talk of some signs of recovery in the machine tool sector but are you experiencing this firsthand?

Following on from a buoyant last quarter in 2009, which helped take our sales for the year beyond the £26 million mark, business in the first two months of 2010 shows definite signs of picking up. Sales to date are encouraging and we have seen the volume of enquiries rise rapidly in recent weeks.

It may be too early at this moment in time to say for definite that the recovery has arrived, but from talking to our customers there is decidedly more optimism about the future – and this renewed confidence has resulted in machine tool orders. It's definitely a better market than it was a year ago.

Possibly the most encouraging news here has been the sales of our new Doosan models – the DNM range of VMCs with Heidenhain Controls, launched at the tail end of 2009 and the new VC630/5AX range of 5-axis machining centres which was introduced into the UK and Irish markets at the beginning of March 2010.

Has attendance at MACH 2010 ever been a doubt for Mills in light of the current economic climate? If I remember correctly, Mills signed up pretty early for the show.

MACH is an important event in our calendar and always has been. That's we booked our stand space and position early in 2009.

We began our actual MACH planning back in the summer of 2009 and this has gathered pace ever since. We recognise that it is an important and unique exhibition, not just for Mills, but for UK manufacturing as a whole. The show is the only national event of its kind in the UK and for us is the ideal venue to showcase a cross-section of the Doosan machine tool range to customers and prospects alike.

Do you have your stand details to hand? Have you opted for a larger or smaller stand this year?

At nearly 470m², our stand for MACH 2010 in Hall 5 on Stand 5430 is our biggest yet. We will be exhibiting 14 Doosan machines all under power on the stand along with a number of impressive machining demonstrations.
  Will Mills be unveiling any new products this year? Can you provide details? We will have a good balance of Doosan machines on the stand from the popular Lynx 2- and 3-axis lathes through to the large scale Doosan 700LM lathe – a machine that has become very popular in oil and gas and power generation applications.

On the milling side we will be showcasing our DNM range of 3-axis VMCs – including the latest Heidenhain controlled models – as well as the new VC 630/5AX 5-axis machine, and the high performance and flexible HP 5100 horizontal machining centre.

Doosan multi-axis mill/turn centres and multi-tasking turning centres will be represented by the MX 2100ST and TT 1800SY machines, and the new larger and more powerful MX 3100 mill/turn centre will be making its Mach debut.
In addition to the machines on show, we will also be showcasing our ‘360' Training Academy from stand 5545 in hall 5.

Located at our facility in Leamington, the ‘360' Training Academy provides high quality, professional and added value CNC (Fanuc and Heidenhain) Programmer Training Courses to UK and Ireland precision manufacturers. The Academy operates independently from Mills CNC and has its own stand.

From a personal viewpoint, what would constitute a successful MACH 2010 for Mills CNC?

This is difficult to say categorically. Certainly we would like a busy show. All reports I have had from the MTA suggest that visitor numbers will be good so let's hope that's the case.

I imagine every machine tool company would judge whether Mach had been successful by how many orders or enquiries were taken during the five days, but more than ever we're looking to present Mills CNC and Doosan machine tools to new prospective customers. I would be more than happy if we replicated our performance at Mach 2008 this time around, which if I cast my mind back was 19 machine tool orders placed and over 127 serious enquiries.

I guess it's simply a question of economics, but can you understand why some companies are apprehensive about attending this year?

Absolutely. Attending MACH as an exhibitor isn't cheap, and for some companies – especially in the current economic climate – the bottom line implications from attending the show possibly just don't add up.

But I believe it's all about having confidence in your products regardless of market conditions. We booked very early and it was never really a discussion point as to whether we would attend. At Mills we know we have a great product and we are always on the lookout for the most cost-effective means and methods to spread the word. Our new product launches will help us make inroads into new markets and I can think of no better platform than Mach of reaching a wider audience.

I believe that MACH is coming at just the right time for the manufacturing industry but I still detect a lack of confidence when it comes to buying new machine tools. Would you agree?

Without a doubt confidence is returning to the machine tool market and most customers I speak to are optimistic about the future. We have seen an increase in visitor numbers to the Mills Customer and Visitor Centre, and increased enquiries about a number of different Doosan machines, especially the new 5-axis and DNM 500 Heidhenhain models.

There's a general acceptance that investing in new technology and advanced machine tools can give companies a distinct competitive advantage. But to make this a reality for a customer a number of boxes need to be ticked such as stock availability, finance options, value for money and machine quality and reliability. At Mills we have all these bases covered.

Mills has been pretty proactive in providing financial assistance to its customers. Can prospective customers visiting your stand at MACH be assured that Mills will do all it can to make buying a new machine as painless as possible?

Mills CNC Finance operates independently from Mills CNC and is actively involved in designing and developing innovative, bespoke and flexible machine tool finance/funding packages for customers rather than offering a ‘one size fits all' solution.

During 2009, Mills CNC Finance launched its Machine Tool Scrappage Allowance Scheme that ran from April to November and in June it introduced a SMART Options Rental Scheme for precision manufacturers looking to benefit from a new Doosan machine, but didn't want the long term commitment of a machine tool purchase. This has been very successful with 14 customers taking advantage of the scheme to date.

What current trends are you seeing in the industry? Have the tough economic times meant that your customers have changed their requirements? For example have you seen any move towards more automated processes or do clients simply need more versatility than previously?

Customers in tough economic times want and demand more from their machine tools – this is natural and is to be expected. Companies cannot allow or afford their machines to be down or idle and, as a consequence, this has meant they focus more and more on aftersales support as a vital and integral part of the decision making process. Here at Mills we have continued to improve and invest in new support systems and to recruit additional engineers to ensure that our customers receive the best support in the business.

We have also developed a cost-effective and planned service route that helps customers budget for unexpected circumstances such as machine breakdowns and downtime.

As far as other trends are concerned we have certainly noticed – especially with OEMs and tier one and tier two organisations – a requirement for full or assisted turnkey solutions. Mills has strong applications and technical capabilities that major manufacturing organisations in aero-engine, defence and medical sectors have used extensively over recent years.

Somewhat understandably, some companies believe that Mach is an expense they don't need at the moment whilst others hold the view that a market presence is more vital than ever during a recession. What's your view?

It doesn't take long in this market to lose your visibility and in the vacuum that's created misinformation and disinformation can often rule.

It is important for machine tool manufacturers to maintain market presence and visibility particularly when launching new products and essential also that brand awareness and recognition is maintained. Once brand awareness disappears, customers do too!

Finally, I'd love to see a successful Mach. I think the industry needs it and UK manufacturing has still got much to offer despite fierce competition from overseas. What would you say to any company deliberating over whether to exhibit or not?

I'd always resist offering advice to any other company. Every business is different and it's an individual choice. However, having said that, for any company that has the commitment, the time and the budget to exhibit, I would say go for it!

The show's success depends on the machine tool industry being able to enthuse and motivate target audiences to attend. Giving up time to visit Mach in today's environment is difficult so it's down to the industry to ensure that exhibitor stands and the products being showcased are exciting and inspiring.

At Mills we have a lot to shout about so for us it wasn't so much about whether we would be attending, but how big our stand needed to be.

Mills CNC
www.millscnc.co.uk