The Bearing Industry and ABMA Al Nixon, The Torrington Company A Perspective on The Bearing Industry and ABMA Al Nixon, The Torrington Company Scott Lynch, ABMA BSA Presentation Palm Springs, CA April 30, 2001

1999 World Bearing Sales $25.0 Billion

World Bearing Industry Number of bearings produced per day: 25 - 30 million Amount of steel consumed per day: 10 million pounds Size range - 1/16” (1.5875mm) to 14 ft (4.267m) Price range - 10¢ to $200,000

US Bearing Industry Bearing industry accounts for about 180 plants in the U.S. Employs about 36,000 workers in the U.S. Large international and smaller specialty companies Largest producers in the U.S. also the largest in the world

USA Production Breakdown $5.7 Billion Source: ABMA

USA Bearing Applications Source: ABMA

Shipments for the Industry Source: US Industry & Trade Outlook 2000 CAGR 5.1% Millions of Dollars

Imports of Ball and Roller Bearings Source: US Industry & Trade Outlook 2000 CAGR 6.4% Millions of Dollars

Industry Trends Consolidation Globalization Developing country production Price - competitiveness in the world market Improved steel quality & new materials, i.e. ceramics

ABMA

ABMA Started in 1917 to help aid bearing production during World War I. Eventually formed the Anti-Friction Bearing Manufacturers Association (AFBMA). In 1993, the organization decided to change to the American Bearing Manufacturers Association (ABMA) to include component manufacturers. Membership Requirements - Manufacture bearings or major components in the US. Component Manufacturers Delta Rubber - Seals Cooper Products - Ceramic Balls As long as a company manufactures in the US their headquarters can be overseas and still be member of ABMA. SKF and FAG are two good examples.

ABMA Members Here is a list of many of the ABMA members. Some of these companies are in the room right now. ABMA members range from large corporations to small component and specialized manufacturers.

Role of ABMA Conduct Industry Conferences and Meetings Define National and International Standards Offer Targeted Education Programs Compile Market Statistics Role of ABMA ABMA is focused on maximizing the networking capability of US bearing manufacturing. ABMA has four main roles to the membership.

ABMA Meetings Spring Meeting - Washington DC - Focused on keeping up contacts with government agencies and elected officials Annual Conference - Theme-oriented and networking opportunity. Past themes have included Supply Chain Management and E-Business World Bearing Summit (WBS) Meeting - Members of ABMA, Japanese Bearing Industry Association (JBIA) and Federation of European Bearing Manufacturers Association (FEBMA) get together and discuss issues dealing with the global bearing industry. This year’s meeting will be Washington DC on May 10 -11, 2001.

ABMA Standards Program ANSI/ABMA Standards ANSI/ABMA/ISO Standards Bearing Technical Committee (BTC) B3 Committee - Accredited Standards Developer Secretariat for ISO Committees ABMA Standards Set Two types of Standards ANSI/ABMA ANSI/ABMA/ISO BTC - Made up of representatives from ABMA member companies specializing in bearing standards. This committee makes recommendations for new standards and revisions of old standards. B3- This is the standards development arm of ABMA accredited though the American National Standards Institute (ANSI) This committee is made of up of ABMA representatives and industry professionals who work with bearings. ISO Secretariat US Voting Body for International Standards for the Technical Committee on Bearings (TC4). Secretariat for SC6, SC9, SC11.

ABMA Education Program In the early 1990’s, Penn State University Professor, Ted Harris, a former SKF USA employee, worked with ABMA and ad-hoc committee of ABMA members to put together a curriculum on bearing technology. Program began in 1995 with three courses at Penn State. Since its inception in 1995, ABMA has offered eight different courses have been offered In recent years, ABMA has expanded to Georgia Tech University as well as doing a course on Bearings and Their Lubrication at the Society for Tribologist and Lubrication Engineers (STLE) meeting . Over 500 managers & engineers have attended the ABMA courses.

2001 Education Program Advanced Concepts of Bearing Technology Bearing Basics: A Course for Non-Engineers Seal Technology: Design Principles & Application Essential Concepts of Bearing Technology Application of the New ISO 281 Standard for Bearing Life Prediction Bearing Vibration, Noise & Diagnostics Bearings and Their Lubrication 2001 program is endorsed by BSA and STLE. BSA members can attend all ABMA courses at the discounted member rate.

ABMA Statistics Program Current Reports Quarterly Statistics Quarter Turns Import / Export Data R & D / Profitability & Capital Expenditures Bearings Market Survey World Bearing Statistics

ABMA Today, ABMA has 35 member companies manufacturing approximately 80% of the bearings produced in the US. Similar organizations throughout the world Japanese Bearing Industry Association (JBIA) Federation of European Bearing Manufacturers’ Association (FEBMA) Chinese Bearing Industry Association (CBIA) India, Ball & Roller Bearing Mfrs. Association (BRBMA)

Questions Comments