1. The Bearing Industry and ABMA Sten Malmstrom, SKF USA Inc.
A Perspective on
The Bearing Industry and ABMA
Sten Malmstrom, SKF USA Inc.
BSA Presentation Vancouver, Canada May 14-17, 2005

2. 2004 World Bearing Sales
$28 Billion

3. Global Market Size: $28 Billion
Global Market Shares
Global Market Size: $28 Billion
Source: Various Annual Reports and external financial reports.

4. World Bearing Industry
Number of bearings produced per day: million
Amount of steel consumed per day: 10 million pounds
Size range - 1/16” (1.5875mm) to 45 ft (15 m)
Price range - 10¢ to $600,000

5. USA Bearing Industry
Bearing industry accounts for about 120 plants in the U.S.
Employs about 30,000 workers in the U.S.
Large international and smaller specialty companies

6. USA 2004 Consumption Breakdown
$5.6 Billion
Source: ABMA

7. USA Bearing Applications
Source: ABMA

8. USA Bearing Manufacturing
Source: US Census Bureau and ABMA
CAGR 5.1%
Millions of Dollars

9. Imports of Ball and Roller Bearings
Source: ITC and ABMA
CAGR 6.4%
Millions of Dollars

10. Imports by Selected Countries

11. ABMA USA Production v. US Manufacturing

12. Canadian Market Development
Source: ABMA
Millions of Dollars ($CAD)

13. Canadian Market Shares (%)
Source: ABMA

14. Canadian Shipments Breakdown (%)
Source: ABMA

15. Canadian Bearing Applications (%)
Source: ABMA

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

17. ABMA

18. 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. New membership initiative currently initiated by Board of Directors.
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.

19. ABMA Members

20. Role of ABMA Conduct Industry Conferences and Meetings
Develop and Maintain National and International Standards
Organize Targeted Education Programs
Compile Bearing Industry Market Statistics
Track Legislative and Regulatory Issue that my directly impact bearings. Active coordination with NAM.
Role of ABMA
ABMA is focused on maximizing the networking capability of US bearing manufacturing. ABMA has four main roles to the membership.

21. Overview of ABMA Meetings
2005 Spring Meeting - Washington DC - Focused on maintaining contacts with government agencies and elected officials. Timely updates on counterfeiting, legislative issues impacting manufacturing, China and US Commercial Services’ export support.
Annual Conference - Theme-oriented and networking opportunity. Topics included supply chain management, automotive trends and employee benefit trends.
World Bearing Summit (WBS) - Members of ABMA, Japan Bearing Industry Association (JBIA) and Federation of European Bearing Manufacturers Association (FEBMA) address global bearing industry issues.
The next WBS meeting is May in Washington DC.

22. ABMA Standards Program
ANSI/ABMA Standards
ANSI/ABMA/ISO Standards
Bearing Technical Committee (BTC)
B3 Committee - Accredited Standards Developer
Technical Advisory Group (TAG)
ISO Secretariat for Bearing Subcommittees
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.
TAG -Technical Advisory Committee
Submits US vote on technical committee (TC4) for bearings.
Secretariat in charge of standards development for three bearing subcommittees under TC4 and Secretariat for TC20 /SC15 on airframe bearings under aerospace technical group.

23. ABMA Education Program
Early 1990’s, ABMA discussed the need for continuing education in Bearing Technology.
Ted Harris, a former SKF employee and Penn State Professor, worked with ABMA and ad-hoc committee of ABMA members to put together a curriculum.
Program began in 1995 with three courses at Penn State.
Through 2004, ABMA has offered sixteen different courses and expanded relationships with Georgia Tech, Notre Dame and STLE.
Nearly 800 managers & engineers have attended the ABMA courses.
Program has been extremely successful to fill the void of education on the bearing industry at US Colleges and Universities.
Looking toward continued expansion to other universities and topics

24. 2005 Education Program Advanced Concepts of Bearing Technology
June 28 – July 1, 2005 in Baltimore, MD
Lubrication & Wear: Advanced Concepts
August 17 – 19, 2005 in Chicago, IL
Essential Concepts of Bearing Technology
September 20 – 22, 2005 in Atlanta, GA
ABMA’s program is endorsed by BSA.
BSA members can attend at the ABMA member rate.
BSA Annual Convention attendees receive an additional 5% off the ABMA member rate on all remaining 2004 courses.

25. ABMA Statistics Program
Current Reports
Quarterly Statistics
Quarter Turns
R & D / Profitability & Capital Expenditures
Bearings Market Survey
World Bearing Statistics
Quarterly Reports
Four times a year
Used as a way to supplement government data only done twice a year.
Quarter Turns
High Level Executive Summary of ABMA quarterly reports
Import / Export
Commerce Numbers screened for bearings and posted once a month
WBS
Statistics gathered by ABMA,JBIA and FEBMA. Statistics focused on these regions. Broken down quarterly but reported twice a year.
All reports are only for ABMA members that participate in the program

26. ABMA
ABMA has 28 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 (IBRBMA)

27. China Anti-Dumping February 13, 2002 - Petition Filed with ITC
March 6, The DOC issued affirmative final determination
April 14, The ITC issued negative final determination
May 14, 2003 – ABMA filed an appeal with the Court of International Trade
January, 2005 – Court of International Trade rejected ABMA’s appeal

28. Questions or Comments