BSA 2017 Convention Temp Photo Placeholder Chris Coughl Ch ris - - PowerPoint PPT Presentation

Ch Chris Coughl ris Coughlin in

EVP and Group President, The Timken Company & ABMA Chairman

BSA 2017 Convention

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ABMA’s primary mission is to provide leadership in the United States to address issues impacting the bearing industry.

ABMA Mission

• Abbott Ball Company
• Accurate Bushing

Company, INC

• American Roller

Bearing

• Atlantic Bearing

Services

• Baldor Dodge
• Bearings

Manufacturing Company

• Coorstek Inc
• Hoover Precision

Products

• Koyo Corporation
• Nachi Technology
• Nakanishi

Manufacturing

• New England

Miniature Ball

• New Hampshire Ball

Bearings

• NN, Inc.
• NSK Corporation
• NTN Bearing

Corporation of America

• Precision Enterprises
• Regal Beloit
• Rexnord
• Schaeffler Group USA
• SKF USA, Inc.
• Standard Locknut LLC
• The Timken Company
• Universal Bearings

LLC

Primary Members

• Ajax Rolled Ring &

Machine

• Aubert & Duval
• Charter Steel
• Gravotech
• Greer Steel
• Latrobe Specialty

Metals, A Carpenter Company

• Leech Carbide
• Ovako North America,

Inc

• PARTsolutions
• REM Surface

Engineering

• Rotor Clip Company
• Sentient Science
• Specialty Ring

Products, Inc.

• Specialty Steel

Treating

• Sullivan Steel Service
• TATA STEEL
• Universal Stainless

and Alloy Products, Inc.

• Worthington Industries

Associate Members

• North America Industry Statistics
• 1Q Business Environment
• Long-term Trends Affecting the Bearing

Industry.

Today’s Topics

• 2016 Was a Very Difficult Year for the Bearing Industry

within the United States.

• Quarter to Quarter comparisons for 2016 vs. 2015 Show

Production Was Down in the 7-10% Range.

• It Was a Broad Based Reduction Across Most Product

Ranges With Only the Automotive Industry Holding its Ground.

• Imports Significantly Outpaced Exports. 4Q Imports

Were 80% Higher than Domestic Production.

Executive Summary for 2016 Statistics

US Bearing Production

• 35%
• 30%
• 25%
• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 30% 35% Q1 1994 Q1 1995 Q1 1996 Q1 1997 Q1 1998 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

Percent Change

Quarter v. Quarter Year Ago

Total Bearings Market - ABMA Estimates

US Bearing Production

900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 Q1 1994 Q1 1995 Q1 1996 Q1 1997 Q1 1998 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

USD in Millions

Total Domestic Production - Value

Total Bearings Market - ABMA Estimates

Total Shipments 3 Months Moving Avg (3mma)

US Production by Bearing Type

100 200 300 400 500 600 700 800 900 Q1 1994 Q1 1995 Q1 1996 Q1 1997 Q1 1998 Q1 1999 Q1 2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

USD in Millions

Domestic Production by Product Lines - Value

ABMA Estimates

Ball Bearings Tapered Roller Bearings Other Roller Bearings Mounted

• North America Industry Statistics
• 1Q Business Environment
• Long-term Trends Affecting the Bearing Industry

Today’s Topics

• Off-Highway Markets Have Clearly Turned
• OE service leading the way.
• Original equipment builds improving, but still low.
• Industrial Distribution Demand is Improving
• Metals, mining, and general industrial improving.
• Energy Improving as Well
• Oil & Gas has turned off very low levels
• Coal has stabilized, but long-term future uncertain
• Bearing Companies are Cautiously Optimistic in

Public Comments.

Q1 2017 Environment

• North America Industry Statistics
• 1Q Business Environment
• Long-term Trends Affecting the

Bearing Industry

Today’s Topics

• Mega-Trends
• Electrification of the Powertrain

Trends Affecting Bearing Industry

Mega Trends - Urbanization

Driving Long-term Growth in Many Industries

• Rail
• Construction
• Mining
• Metals
• Energy

Mega Trends – Energy Efficiency

A Dynamic “Bearing” Environment

• Emission reduction affecting equipment

designs in terms of weight / efficiency

• Renewables continue to gain traction and

are on long-term growth trend.

• Areas such as coal appear to be under

long-term pressure.

• Government policy a major variable

Mega Trends – Globalization

Increasing Operational Complexity

• Increased channel complexity
• High variability with regards to equipment

designs

• Globalization of manufacturing creates

various challenges

Mega Trends – Digitalization

A Major Long-term Impact

• Affects product design in terms of sensing

capability and integration into systems

• High impact on manufacturing process in

terms of connectivity and automation

• Integration bearing manufacturers into

supply chains, customers, and channels will continue to increase.

Electrification of the Powertrain

• Wide ranging consensus that this trend is

real and will have a large long-term impact.

• Automotive industry is leading the way.
• Large impact on equipment design and

associated components.

• Long-term, not confined to automotive.

Many principles are equally applicable to industrial equipment

• A long-term issue for all bearing producers

Bearings and Their Lubrication

• May 21, 2017 – STLE Annual Meeting
• Atlanta, GA

Advance Concepts of Beating Technology

• June 19-22, 2017
• Oakbrook, IL

Essential Concepts of Bearing Technology

• August 22-24, 2017
• Oakbrook, IL

Advance Concepts: Lubrication and Wear

• Fall 2017
• Location TBD

Continuing Education

On Behalf of All ABMA Members, I Would Like to Thank the BSA Organization for the Opportunity to Present Our Industry This Morning. And We Greatly Appreciate the Support of Our Distribution Partners Who Help Us Bring Our Products and Services to Market.

Closing Comments