Canada offers growing market for computer numerical controls

Business America, May 20, 1991

U.S. firms should position themselves now to supply a hungrier market for computer numerical control equipment in Canada, according to a spending survey conducted by Canadian Machinery and Metalworking Magazine.

The survey indicates that many Canadian manufacturers expect 1991 to be a healthier year than 1990. Purchases of numerical controls were down during 1990, due in part to high interest rates, a strong Canadian dollar, and the high cost of numerical control machine tools.

Two-thirds of the replies reported no significant plans for an increase or decrease in their numerical control equipment inventory. About one-third expect to increase their total numerical control inventories by purchasing new machines, buying old machines, or refurbishing existing machines.

Almost half of those surveyed planned to invest in some numerical control equipment. Of these, more than 70 percent planned to spend most of their budgets on new machines. About 20 percent of respondents showed moderate interest in used machinery. Refurbishing existing equipment was popular, with more than 47 percent of respondents indicating activity in this area.

What type of numerical control machine tools will be purchased in 1991? Thirty-five percent of respondents mentioned turning centers or lathes as possible purchases in 1991, while 33 percent mentioned machining centers. Most respondents will be purchasing for flexibility; more specialized types of machines, such as milling machines, drilling machines, cylindrical grinders, and lasers, trail sharply in interest.

Survey respondents expected the employment situation to be stable during 1991. No respondent expected to close down plant production capacity, while about 9 percent of the respondents planned plant expansions during 1991. Roughly 12 percent of those surveyed expected a further decline in capacity utilization during 1991; 38 percent expect improvements. Of those anticipating increases, 13 percent expect to see increases of more than 10 percent.

To help U.S. industry take advantage of new opportunities, the U.S. and Foreign Commercial Service offices in Toronto and Montreal will be hosting a Plan Modernization Matchmaker Event, June 17-21, 1991. U.S. manufacturers of plant modernization equipment and technologies who are interested in arranging distribution channels for their product lines in Canada are invited to participate. For further information, contact Karen Gladson, U.S. Department of Commerce, Room 2116, Washington, D.C. 20230; telephone (202) 377-8433.