United Technologies Corp.
) signed a licensing agreement with CGTech to integrate its
PromptFM machining process optimization technology into the
latter's VERICUT cutting process software. The combination is
expected to enhance productivity for machining equipment operators,
with applications in a wide spectrum of industries. The financial
details of the agreement were kept under wraps.
CGTech specializes in computer numerical control (CNC) simulation
software for manufacturing. Its flagship product, VERICUT software,
has become the industry standard for simulating CNC machining. It
identifies error, impending collisions, and areas of inefficiency,
and is used throughout the CNC machining industry.
United Technologies' PromptFM, designed specifically to ensure
compatibility with VERICUT, is a physics- and mathematics-based
modeling software that optimizes machining rates for machined
parts. The software seeks to determine the optimum speeds for a
cutting process, considering the type of material being cut, and
thus enables the CNC machine to cut efficiently and quickly. The
conglomerate has seen productivity improvements of over 50% after
implementing PromptFM in its own internal machining processes.
The newly integrated software will facilitate considerable
improvements in productivity, as it will lead to lesser development
time, shorter cycle times and less process variation. These
benefits will translate to extended machine life and improved part
The technology has significant implications in industry verticals
such as industrial, aerospace, automotive and others that utilize
automated machining. Extensive adoption and integration of this
software has the potential to drive efficiency throughout the
United Technologies presently holds a Zacks Rank #3 (Hold). Some
better-ranked stocks in the diversified operations industry include
Federal Signal Corp. (
), ITT Corporation (
) and Macquarie Infrastructure Company LLC (
), each carrying a Zacks Rank #2 (Buy).
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