Will a price markdown on laser marking units boost market?

The development of "affordable" laser marking machines by the U.K.'s 600 Group company, Electrox, highlights the increasing demand from many manufacturing sectors for product traceability.

The fact that the price of a laser marking system based on a diode-pumped YAG laser has fallen to $45,000 from twice that six years ago means that laser marking is now within reach of small- to medium-sized enterprises, according to Howard Moore, general manger and director of Electrox.

The builder (Letchworth, Hertfordshire, U.K.) has installed more than 2500 laser marking units in 40 countries, of which over 450 are being used in the U.S. "The market is extremely competitive," said Moore, "but of the suppliers out there, only three or four can actually design, develop, and manufacture laser marking systems. The rest 'cobble' systems together--they cannot do development in-house." Electrox's biggest competitors are Rofin Sinar and, occasionally, Control Laser.

All research, development, and manufacturing is carried out in Letchworth. In the U.S., where its office is in Indianapolis, Ind., Electrox has a direct sales team supported by a core of three service engineers. Moore estimates the U.S. market consumes some 1200-1500 laser-marking units per year, of which Electrox ships around 100 units/year. That arena is seen by up Electrox as offering the most growth, particularly in aerospace and medical equipment. The company recently recruited an American sales manager, Jeff Matmuster. "We intend to put more resources into the U.S. as we increase our market share," says Moore. He puts his company's share at 15-20% worldwide.

Electrox (www.electrox.com) sells its YAG laser marking units to system builders in Asia, while all "total solution" systems for the U.S. market are built in the U.K. Electrox employs 68 in Letchworth, where it also manufactures C[O.sub.2] and pulsed Nd:YAG laser systems for cutting and welding.

Traditional applications for laser marking are in computer keyboards, telephone keypads, rubber products and painted materials. Electrox claims that some 40% of keyboards are laser marked by its systems worldwide.

Growing usage of laser marking is seen in medical equipment--like matrix coding on surgical instruments and metals implants. The pharmaceutical industry is also a growing market. The automotive industry now is demanding the marking of "safety-critical" components and "important" components. Electrox's sales and marketing director, Ray Gawn, comments that the aerospace area is a developing market, with, for example, approvals from companies like Rolls-Royce, though there is still an issue on the laser marking of rotating parts.

Aiming at affordability, Electrox's repackaged entry-level Cobra ES brought the price down to a point, says salesman Gawn, that will suit job shops that require a portable workstation.

From our European correspondent.