LAS VEGAS – A sudden bout of cold weather across the Nevada desert did nothing to dim the spirits of FABTECH attendees last week. Throughout the show, exhibitors and visitors at the Las Vegas Convention Center seemed to revel in the positive vibes the manufacturing industry was experiencing.

Around 26,000 people were estimated to have walked the floor between November 12-14 and Mark Hoper, one of the show’s co-managers, was pleased with the overall atmosphere.

“A constant theme I heard both on the show floor and at the seminars was that, while challenges and uncertainties remain, most manufacturers believe their businesses are headed for continued growth in 2013,” he stated.

“If you can take the pulse of the economy by what’s happening in manufacturing, then you have to be optimistic that we are headed for economic growth.”

Lincolns new VRTEX is a virtual welding tool designed to engage new potential welders.

While the show was received well by most, there were some nagging concerns that seemed to stick in people’s minds – albeit by no fault of the organizers. The first was the lack of skilled workers which, as Ian Campbell pointed out in a recent column for Canadian metalworking, is a serious problem for the welding trade. The other, that affects Canadians in a more ambient way, was the state of the American economy after a divisive election – which was only a week old by this point.

To combat the lack of skilled workers, many of the welding companies at the show were eager to get people involved and try their hand at the trade.

Miller and Victor Technologies were offering demos on MIG and TIG welding and Lincoln Electric was showcasing its new VRTEX virtual welding program that let newcomers try the craft in a safe, low stress environment.

Plenty of other demonstrations were on hand as PFERD was showcasing new grinding and cutting discs at their booth, while many waterjet companies such as OMAX, and Jet Edge and laser companies like TRUMPF were interactively demoing their new equipment.

ESAB unveiled the Warrior at FABTECH, a multi-process power source and feeder.

For the state of the manufacturing industry, a number of different panels and talks addressed major issues. The first was a roundtable featuring CEOs from a cross-section of the industry, and another discussed the impact the 2012 election would have on manufacturing. Naturally, with a U.S.-based show, the topics covered were primarily for the American market, but as Canadian manufacturers have been aware of for some time, the U.S. economic engine drives more economies than just their own.

A key portion of the election discussion – not unlike the election itself – focused on tax reform; particularly how this would drive the cost certainty that is crucial to manufacturing businesses.

The panel featured David Goch, a partner with the Washington-based law firm Webster, Chamberlain and Bean and Omar Nashashibi of The Franklin Partnership – both Washington-based trade and industry specialists. As one would expect, the topic of debt reduction and the looming issue of the so-called “fiscal cliff” were discussed.

“Most of our clients spend most of their time worrying about taxes… We’re going to have to give up some of these credits and reductions. We’ve gotten used to R&D tax credits, LIFO (last in, first out) – all of these things cost money. So we’ve got to make up for that somehow. But, if that goes away, maybe that impacts whether you buy a new stamping press,” said Nashashibi.

“We’re hoping for a comprehensive business tax reform, not just corporate tax reform – along with personal – so that small business don’t get left behind,” he continued.

Canadian metalworking Editor Jim Anderton tests out a new MIG welder at the Miller booth.

The two focused on the sentiment that small to mid-size businesses were key to a resurgent manufacturing sector. They also echoed concerns of some FABTECH exhibitors about the shortage of skilled labour, and suggested that education was the best way to combat the problem. This talk was one of the most well-attended events of the show with hundreds gathering at the North Hall Theater for the talk.

Finally, Harry Moser, the founder of the Reshoring Initiative spoke on the topic of Reshoring versus Offshoring. The former GFAgie Charmilles president discussed a similar topic at IMTS 2012 in Chicago and was at the Vegas show to help manufacturers understand some of the cost issues with doing manufacturing work at home versus sending it overseas.

Overall, the message was: the costs of sending work abroad versus doing it at home are slowly converging and in many cases it is cheaper and easier to reshore this work – or (for Americans), “nearshore” it to Canada. Often, some of the hidden costs of doing business abroad are not properly studied – something Moser is seeking to rectify.

While these issues were front and centre during FABTECH, the tone of exhibitors and attendees never felt defeatist. Many were happy to talk about their new leads and the business they’d generated, leaving a palpable optimism for wher the industry was headed despite the challenges that lie ahead.

The show was co-sponsored by: the American Welding Society (AWS), the Fabricators & Manufacturers Association, International (FMA), the Society of Manufacturing Engineers (SME), the Precision metalforming Association (PMA), and the Chemical Coaters Association International (CCAI).

FABTECH 2013 will be held November 18-21 at McCormick Place in Chicago, IL.

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