THIS ISSUE: Competing With Talent / Making a Difference in Washington / Dynamic Job Descriptions
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The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas
PrecisionNews TM
TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY
Inside: HEALTHCARE REFORM THE IMPACT OF ‘REFORM’ ON MANUFACTURERS FROM AN EMPLOYEE BENEFITS COMPLIANCE PERSPECTIVE
AMERICAN MANUFACTURING LOYALTY DO MULTINATIONAL CORPORATIONS HAVE A DUTY TO MAINTAIN A STRONG PRESENCE IN THEIR HOME COUNTRIES?
SHAKE N BAKE JOIN US THIS AUGUST IN DOWNTOWN PHOENIX FOR THE NTMA SOUTHWESTERN REGIONAL CONFERENCE! p.33
KEEP YOUR EDGE...
KEEP YOUR COOL! / AND KEEP YOUR BUSINESS MOVING FORWARD! /
Sandvik Coromant CoroMill 316 exchangeable-head milling system is available with internal coolant
THE WORKING ISSUE
NTMA SW BRINGS YOU:
THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!
PN HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP
Work Comp Rates... critical and growing Work comp rates have increased at double-digit rates for the last three years. This trend is expected to continue for the next three to five years. Call Glenn Van Noy at Champion Risk to discuss how you can avoid the increases.
For more information contact: Glenn VanNoy at Champion Risk & Insurance Services, L.P. 858-369-7923 or email Glenn at: gvannoy@championrisk.net.
MARCH /APRIL 2013 VOLUME 3 • ISSUE 2
Contents Features
Departments
SPECIAL EDUCATION SECTION
10 12 16
TALENT AND TRAINING
03 President’s Letter
ATMA partners with agencies in Phoenix and Maricopa County in the development of the Arizona Precision Manufacturing Apprenticeship Program (AzPMAP), and the NTMA works with your employees to ensure that your Workforce Training requirements are achieved online through its NTMA-U.
04 Policy Matters 08 People Power 20 Websites that Work
HEALTHCARE REFORM As manufacturers adjust employee benefits strategies under the Patient Protection and Affordable Care Act (ACA), it is important to understand the key provisions in the new law from a compliance and financial perspective.
20 Arizona Chapter Info 27 NTMA Initiatives 28 North Texas Chapter Info
AMERICAN MANUFACTURING LOYALTY Do multinational corporations have a duty to maintain a strong presence in their home countries? In a recent poll, the vote was 54% “yes,” and 46% “no.”
30 Focus: Taxes 32 Focus: Insurance
OUR MISSION:
“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”
The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas EXECUTIVE DIRECTOR & EDITOR Chris Mignella
PrecisionNews
TM
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CONTRIBUTING WRITERS Anita F. Baker, Dave Bolt, Dante Fierros, Rick Hansen, Margaret Jacoby, Maxine Jones, Omar S. Nashashibi, Michele Nash-Hoff, PN Editors, Ted Szaniawski ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL, ADVERTISING & ADDRESS CHANGES Chris Mignella, Executive Director & Editor Phone: 602.388.5752 Email: ExecutiveDirector@arizonatooling.org
Precision News is published bi-monthly by the Arizona Tooling & Machining Association (ATMA). Opinions expressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes no liability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from ATMA is prohibited. Precision News is the registered trade name of this publication. Copyright ©2013 by ATMA. All rights reserved.
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ATMA PRECISION
2013 ATMA GOLF CLASSIC Friday - April 26, 2013
CAMELBACK GOLF CLUB 7847 N. Mockingbird Lane, Scottsdale, AZ 12:00 pm - Check In & Putting Practice 1:00 pm - Shotgun Start, 4 Person Scramble Register Online at arizonatooling.org Price includes boxed lunch, golf, cart, Contests, dinner buffet & awards after play! Contact Chris Mignella: arizonatooling@cox.net or call 602.388.5752 All players must register by Friday, March 22nd.
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First Word PRESIDENT’S LETTER
Thank You to Our Team I would like to thank all of our team members that are helping to support our business needs more and more with each passing day. Just recently I received great updates from Dave Bolt (SBG Capital), Dave Gunderson (Makino) and Ken Goodman (Adams Machinery) regarding 2013 equipment tax benefits as a result of the American Taxpayer Relief Act of 2012. We will be posting more details about this important legislation on our website soon. Other great helpers I would like to thank are Ted Szaniawski of HR Group and Margaret Jacoby of MJ Management Solutions. Look for their respective important articles in this edition entitled “Job Descriptions: A Blueprint for What Employees Should Do” and “If the Job Could Talk”. Our major sponsor, Clifton Larson Allen, and specifically Anita Baker, Managing Partner of CLA will be providing information regarding “Health Care Reform on Small Employers” at our next dinner meeting. Thanks also to David Senkfor of Top Gun Consulting for presenting a free roundtable regarding IT and Facilities Security recently. To all those folks that are working to aid our members by helping us with our business, technology and other support needs, we thank you. As a final update, I am very pleased to follow up an email announcement I recently sent to you regarding our first “Southwest Conference for 2013”. This is being beautifully orchestrated by the NTMA San Francisco, San Diego, North Texas and Arizona chapters is scheduled for August 9th-11th , 2013. Key aspects of this event to consider include:
• Lower cost than the national conference ($325 total per person). • Concise and insightful program highlighting specific technical and business topics you can use immediately. • Breakout sessions to allow for maximum dialog, idea gathering and networking. • Insightful speakers with topical subjects (i.e. Federal Reserve Board and others). • Pricing is set at a minimum to foster greater involvement by your management team. • Associate members can participate as sponsors, exhibitors and presenters. DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com
As the first hosting chapter we would like this conference to be a huge success for the Arizona Chapter and your participation will greatly improve the value the conference will bring to the these southwest chapters. We are endeavoring to provide our members with ever increasing Service to allow for further growth in our Membership which will allow for more Revenue and the positive wheel continues forward.
Join-Participate-Prosper
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Policy Matters BECOME A VOICE FOR CHANGE
Manufacturing in Washington: Small Numbers, Big Difference by OMAR S. NASHASHIBI
Washington, D.C. – There are 435 members of the U.S. House of Representatives, who on average each represent 710,000 citizens in their Congressional District. While their primary responsibility is to their voters back home, thousands of special interests compete every day for the attention of members of Congress. Washington has 12,374 registered lobbyists in the nation’s capital representing such varied groups as doctors, military veterans, the homeless, and foreign governments, and yes, manufacturers have lobbyists too. So how can the typical manufacturing owner or employee break through the hoards of lobbyists and have their voice heard by their Representatives? An even larger question is how can you make a difference with your Senator who represents millions more people than your member in the House of Representatives?
Throughout the country, there are over 1.1 million employees classified under Machinery Manufacturing (NAICS 333) and another 1.4 million under Fabricated Metal Product Manufacturing (NAICS 332). That is a sizable number accounting for more than twenty percent of all manufacturing establishments in the country. Imagine if just one percent of these manufacturers sent a letter to Congress with a unified voice on a single issue – whether tax reform, regulations, or job training. That is 25,000 people. Now imagine if all those manufacturers traveled to Washington, D.C. to meet with their elected officials – quite a lobbying force would descend upon Capitol Hill. While someday we hope to reach those numbers, manufacturers from around the country are coming to Washington as part of the One Voice Annual Legislative Conference April 23-24, a joint government advocacy partnership between the National
fyi: There are 435 members of the U.S. House of Representatives, who on average each represent 710,000 citizens in their Congressional District. +
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Tooling and Machining Association and Precision Metalforming Association (www.metalworkingadvocate.org). Last year, over one hundred manufacturers took to Capitol Hill for meetings with their Senators and Representatives as part of the One Voice Annual Legislative Conference. These men and women held over two hundred meetings in less than twenty-four hours and even though they accounted for only .0004% of all the machinery and fabricated metal products manufacturers in the country, they made a big difference in Washington. The U.S. Court of Appeals handed employers and employees a major victory last month when they ruled the President’s recess appointments to the National Labor Relations Board (NLRB) as unconstitutional. This potentially nullifies countless NLRB decisions and possibly blocks many of the unions’ top priorities. continued on page 06
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Policy Matters Manufacturing in Washington: Small Numbers, Big Difference continued from page 04 Manufacturers also successfully convinced lawmakers during the Fiscal Cliff negations last month to extend key tax provisions saving businesses billions. Lawmakers agreed with our concerns and extended the R&D Tax Credit through 2013 while also making it retroactive to January 1, 2012. Manufacturers also consistently tell us that among their top tax priorities are credits and deductions supporting capital equipment purchases. Throughout 2012, manufacturers actively lobbied members of Congress to educate them on Bonus “Accelerated” Depreciation, Section 179 Expensing and other provisions supporting equipment acquisition and business expansion. A recent survey of 200 One Voice members showed that 88% of NTMA and PMA members use Bonus Depreciation and Section 179 – an overwhelming number of voices that Congress heard loud and clear when they also extended both provisions through 2013.
After years of lobbying by small and medium sized businesses, Republicans and Democrats reached an agreement on the Estate Tax exempting individual estates up to $5 million and $10 million per family. The compromise included a 40% tax rate on amounts over the exemption, however, and indexed the limits to inflation meaning that by 2020, the family estate exemption reaches $17 million. This was a crucial 11th hour victory for manufacturers many of whom are family-owned businesses. Looking ahead, sources in Washington indicate both Republicans and Democrats may allow $85 billion in Sequestration to take effect on March 1st. While Congress delayed the debt ceiling until May 19, 2013, the federal government’s current budget will expire on March 27th, meaning a looming government shutdown unless both parties can manage to come together on taxes and spending.
MAKE YOUR VOICE HEARD ON CAPITOL HILL! For additional information, please visit
www.metalworkingadvocate.org or contact the NTMA at 800.248.6862
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With so much at stake in Washington, it is critical more manufacturers stand up and have their voices heard. This is why we encourage NTMA and PMA members to attend the One Voice Annual Legislative Conference in Washington April 23-24 (click on metalworkingadvocate.org for information on how to register). These are just a few examples of how a small number of manufacturers have made a big difference in Washington. It is clear we can continue to make a difference in Washington, but only if our voice is loud enough.
OMAR NASHASHIBI is a founding partner at The Franklin Partnership, LLP, a bi-partisan government relations firm retained by the National Tooling and Machining Association in Washington, D.C. Learn more at: www.franklinpartnership.com
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A CUT ABOVE.
///////////////////////////////////////////////// We have the capabilities and the skills to get any job done.
CNC Machining 5-Axis Machining Multi-Spindle Machining Lights Out Machining Blade and Blisk Machining Electro-Discharge Machining Laser Machining Waterjet Machining Sheet Metal Fabrication Gun Drilling Jig Bore/Jig Grind Hydroforming Cylindrical Grinding Surface Grinding Curvic Grinding Tool Grinding Thread Grinding Creep Feed Grinding Chemical Milling
Swiss Turning Micro-Machining Honeycomb Seals Tube Bending High Speed Stamping Sand Casting Investment Casting Molded Rubber Plastic Injection Molding Rapid Prototyping Balancing Electromechanical Assembly Clean Room Assembly Wire Harness Production MIG/TIG Welding Resistance Welding Hydrogen Brazing Vacuum Brazing Laser Welding
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////////////////////////////////////////////////////////////////////////////////////////////////////////////// Arizona Tooling & Machining Association
Contact the Arizona Tooling and Machining Association and discover how you can put your unique skill-set to work in Arizona and give your company the Competive Edge.
ATMA
CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752
PRECISION
executivedirector@arizonatooling.org
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People Power YOUR MOST VALUABLE RESOURCE
Job Descriptions A Blueprint for “What” Employees Should Do
by MARGARET JACOBY, SPHR
Job descriptions are dynamic documents that act as a blueprint for an employee and the supervisor. They provide reference points for measuring performance, providing a basis for counseling and coaching and enabling training and development plans in problem areas. They are the building blocks of the organization detailing who does what for whom in the company. The descriptions also form the basis of both your hiring and performance management. Your employment ads are basically job descriptions, dressed up to attract talent. And your performance appraisals measure achievement on the job as it was originally described. Job descriptions are a bear to write – it is sometimes difficult to decide what to include and what to omit. How do you keep them concise, effective and legal? At a minimum, a solid job description should contain: • a brief summary of the reason for the job • 4 or 5 “essential functions” – those tasks or duties that the employee MUST fulfill • additional tasks or duties that complement the essential functions • supervisory responsibilities, if any • education and experience – only that which is required by the job, not your “ideal” • tools and equipment which must be used/operated – i.e. heavy or precision equipment • licenses required – i.e. Forklift, CDL, driver’s license • physical requirements – i.e. must be able to lift 50 pound sacks of flour regularly • mental requirements – i.e. must be able to think analytically, make decisions • environmental factors – i.e. noisy factory, work outdoors in all weather conditions Anything in the description that hints at a preconceived desire to eliminate or favor candidates due to race, color, age, gender, religion, national origin or disability would work against you. Avoid gender-oriented job titles such as “Saleswoman” and “Repairman.” By providing structure via a job description, you leave little room for misunderstanding on the part of the employee and the supervisor thereby heading off complaints of “favoritism” or discrimination by misinterpretation of responsibilities assigned to the employee.
MARGARET JACOBY is the president of MJ Management Solutions, Inc. She can be reached at margaret@mjms.net Learn more at: www.mjms.net
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IF THE JOB COULD TALK... Let it tell you what is required for optimal performance! There are two sides to any rock-solid Job Description. One side focuses on “whatâ€? the job should do and the other side on “howâ€? to be successful in the job. “Whatâ€? is constructed by looking at the job from the outside-in and identifying specific essential Tasks (see the accompanying article). “Howâ€? is constructed from the inside-out - by letting the job talk - and identifies required Abilities and Behaviors. Letting the job talk - and listening carefully - enables managers to assess the unique talents required for optimal performance. Therefore hiring managers can predict how a candidate may perform on-the-job before someone is hired. The result is that job assessment increases the likelihood of good job fit and peak performance. The process of predicting the talents required for on-the-job success consists of an assessment of your proven high-performing workers that identifies their distinctive Behaviors and Abilities. Imagine the power of being able to understand key Behaviors such as: • Interpersonal Skills – Friendliness, Assertiveness, Teamwork • Personality Traits – Optimism, Objectivity, Rule-following, Focus on feelings vs. facts • Motivators – Customer Service, Money, Creativity, Knowledge, Power And the value of capturing the crucial Abilities required for: • Problem-Solving • Vocabulary • Arithmetic • Speed and Accuracy in Handling Small Details • Grammar, Spelling and Word Use Studies show that most interviewers do poorly at predicting the actual future job performance of candidates. But a rock-solid Job Description - one that includes clearly defined essential Tasks (the “whatâ€?) as well as the Behaviors & Abilities (the “howâ€? - will provide them with a remarkably powerful tool that will enable them improve their ability to select and hire the best. Let’s face it. You wouldn’t invest in new equipment or software without fully evaluating what it will do for your organization and how it can contribute to your success. So why not invest in fully understanding the “whatâ€? and “howâ€? of each job and the ways that they can contribute to your success? TED SZANIAWSKI Principal, HRGroup, LLC Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com
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Education Update KEEPING YOUR ESSENTIAL SKILLS SHARP
ARIZONA’S PRECISION MANUFACTURING APPRENTICESHIP PROGRAM (AzPMAP)
Precision Manufacturing Apprenticeship Program
Manufacture Your Future
A Model for Competing withTalent Few would argue with the notation that companies, regions, and even countries should compete on their ability to innovate and create new products and services that meet the needs the customers effectively and efficiently. To have to compete for the intellectual talent as a primary determinant of success or failure is a lose lose situation for everyone. Recognizing the critical importance of ensuring a more sustainable and predictable supply of skilled and competent employees, the Arizona Tooling and Machining Association (ATMA) has partnered with the Arizona Commerce Authority, the City of Phoenix, Maricopa County, The Maricopa Community Colleges, and the National Tooling and Machining Association in the development of the Arizona Precision Manufacturing Apprenticeship Program (AzPMAP). AzPMAP is a comprehensive workforce development support program, designed and implemented to fill and retain the metalworking and manufacturing skilled workforce pipeline, by upgrading and standardizing regional training sites into world class centers of excellence. The Apprenticeship Program’s goals is to ensure a continual additional supply of very qualified Certified Machinists and CNC Programmer and Setup Milling and Turning workers.
Although the program requires significant commitment on the part of both the apprentice and the sponsoring employers the benefits derived are well documented. There are 20 apprentices in the program working in companies throughout the Greater Phoenix area and attending classes that will lead to certification. The program continues to accept applications from job seeks interested in the aerospace manufacturing industry. For more information, please contact: Maxine Jones AzPMAP Project Coordinator Employer Engagement mjones@azpmap.org 602.723.8191 www.azpmap.org Applications may be submitted through the website.
Article provided by Rick Hansen with additional comments added by Maxine Jones. Learn more at: www.azpmap.org
fyi: There are currently 600,000 open skilled manufacturing positions in the U.S. today - Deloitte
+ 85 percent of NTMA members expect to have challenges recruiting qualified employees, especially younger workers. - NTMA Photo: NTMA
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TH
NTMA- U
SMART WAY
TO
TRAI
NTMA-U Work orce YOUR
THE SMART WAY TO TRAIN We will work with your employees to YOUR WORKFORCE insure that your Workforce Training requirements are achieved while they learn essential skills On-Line
We will work with your employees to insure that your Workforce Training We will be using over 100 Tooling-U requirements are achieved while they odules, Plus Hundreds of Learning Videos learn essential skills On-Line. We will be using over 100 Tooling-U Modules, plus We will offer One-on-One Instructor Hundreds of Learning Videos. We will access, plus NationalInstructor Manufacturing Best offer One-on-One access, plus National Manufacturing Best Practices. Practices NTMA-U offers Articulated College Credit.
NTMA-U offers Articulated College Credit NTMA-U
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ForInformation More Information For More Contact: NTMA Vice President Ken McCreight Contact: NTMA Vice President Call: 216.264.2834 Email: Kmccreight@NTMA.ORG Ken McCreight @ 216-264-2834 or E-Mail: Kmccreight@NTMA.ORG
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permitted to register for NTMA-U at a Semester Pricing of $449.00 and $120 inest textbooks will00 beand $120 Sem er Pr(these i ci textbooks ng of$449. used for two Semesters. Non-member i fees n t are ext$899.00 books and ( t $180 heseinttextbooks ext books wi l l b per semester. used f or t wo Semest er s. Non- member
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NTMA-U Online TRAINING NTMA-U On-Line SEMESTER - I Machine Tools Technology I TRAINING SEMESTER - II Machine Tools technology II SEMESTER - III CNC Programming & Set-Up
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Feature Story // PrecisionNews
STORY BY ANITA F. BAKER, CPA, CEBS
the impact of health care reform on manufacturers: an employee benefits compliance perspective As manufacturers adjust employee benefits strategies under the Patient Protection and Affordable Care Act (ACA), it is important to understand the key provisions in the new law from a compliance and financial perspective. The primary compliance considerations include providing employees with information about coverage, including costs on employees’ Forms W-2, and understanding rebates from insurers.
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summary benefits and coverage
It does not offer full-time employees the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan, and
As plan sponsors, manufacturers were required to provide a Summary of Benefits and Coverage (SBC) document to health plan participants beginning on the first day of the first open enrollment period starting on or after September 23, 2012. The SBC must be provided to participants and beneficiaries who enroll or re-enroll in group health coverage during open enrollment.
At least one full-time employee enrolls in a health plan via a state or federallyestablished health insurance exchange, and
The SBC should include uniform standard definitions of medical and health coverage terms; a description of coverage (including the cost-sharing requirements such as deductibles, coinsurance, and co-payments); and information about any exceptions, reductions, or limitations under the coverage. Examples of benefits and coverage for common scenarios are also required.
The full-time employee receives government subsidies to pay the premiums for the health insurance exchange coverage.
w-2 reporting A full-time employee is defined as someone who works an average of 30 or more hours per week. A company will need to total employee hours worked in a month and divide by 120 to determine whether someone is a full-timeequivalent employee.
Employers must also report the cost of employer-sponsored health coverage on plan participants’ annual Forms W-2 for calendar year 2012. The purpose of the requirement is to provide information to employees about the cost of health coverage; it does not affect taxation. The amount reported includes both the manufacturer’s and the employee participant’s contributions. Small employers — those required to file fewer than 250 Forms W-2 for the calendar year prior to the reporting year — are not subject to the requirement.
medical loss ration rebates unaffordable coverage penalty
The ACA Medical Loss Ratio (MLR) standard requires insurers in the individual and small group health insurance markets to spend at least 80 percent of premium dollars on medical care and quality improvement. This amount increases to 85 percent for insurers serving large groups.
This penalty applies if an employer offers full-time employees the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan that either is unaffordable or does not provide minimum value. A plan is unaffordable if the full-time employee’s premium payments for self-only insurance coverage are more than 9.5 percent of household income.
Insurers that do not satisfy the MLR standards must provide rebates to their employer plan sponsors. For individual policies, the insurer must provide an MLR rebate to each individual participant/employee. For group policies, the insurer must generally provide the rebate to the manufacturer as the plan sponsor, who, in turn, must ensure that the rebate is used for the benefit of plan participants. There are also financial implications to consider under reform. ACA mandates responsibilities for employers regarding coverage, including analysis of costs.
If at least one full-time employee enrolls in the exchange and is certified to receive a government subsidy, the manufacturer is subject to the penalty of $3,000 for each full-time employee who enrolls in the exchange. The government subsidies are available for individuals whose household income is between 133 percent and 400 percent of the Federal Poverty Level — currently $92,200 for a family of four. Fulltime employees whose household income is below 133 percent of the poverty level will be covered by Medicaid, unless the state opts out of this provision of the ACA.
employer mandates Beginning in 2014, employers with 50 or more full-time equivalent employees become subject to penalties if they fail to comply with ACA. Employers are required to offer coverage or pay a penalty if they have full-time employees who would qualify for premium tax credits and other cost-sharing assistance. Also in 2014, health insurance exchanges will allow millions of individuals and small employers to access and compare insurance plans. These exchanges are also central to determining whether individuals are eligible for Medicaid or premium tax credits to assist in purchasing health insurance coverage.
no coverage penalty (pay or play) An employer is subject to a penalty of $2,000 per full-time employee (excluding the first 30 full-time employees) if:
continued on page 14
Business owners should take time to consider the financial and regulatory impacts of the ACA on their companies and their employees.
+
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It is important for manufacturers to + understand the effects of reform for their specific companies.
Feature Story // PrecisionNews
the impact of health care reform on manufacturers: an employee benefits compliance perspective continued from page 13
health insurance and penalty calculator CliftonLarsonAllen has a Health Insurance and Penalty (HIP) Calculator to provide employers with concrete information about how ACA will impact them. The calculator helps manufacturers weigh their options about coverage, cost-sharing, and health plan design. The financial impact of health reform depends on the specific demographic information for each individual manufacturer. The chart below shows final HIP calculator results for an actual company. These results are based on three scenarios: Pre-reform 2014 - The current-year total employer-sponsored-insurance premium cost, with projected annual premium and volume increases. Post-reform cost 2014, with employer-sponsored insurance - The 2014 total employer-sponsoredinsurance premium cost, including premium increases and health reform penalties. Post-reform cost, without employer-sponsored insurance - The 2014 total employer penalty cost where an employer does not offer health insurance. right: This chart shows final HIP calculator results for an actual company.
EMPLOYER FULL-TIME EQUIVALENT EMPLOYEES $927
PRE-REFORM 2014 COST
POST-REFORM COST, WITH EMPLOYEESPONSORED INSURANCE
POST-REFORM COST, WITHOUT EMPLOYEESPONSORED INSURANCE
$3,215,000
$4,072,000
$1,724,000
Not all employers will pay more for insurance under these provisions; results vary quite dramatically between individual employers. It is important for manufacturers to understand the effects of reform for their specific companies. Business owners should take time to consider the financial and regulatory impacts of the ACA on their companies and their employees. To learn more about health care reform, access information about the Health Insurance and Penalty (HIP) calculator, and download the whitepaper, “Medical Loss Ratio Rebates,” visit http://www.cliftonlarsonallen.com/healthcare/.
ANITA F. BAKER, CPA, CEBS is a partner with CliftonLarsonAllen LLP, a national accounting and consulting firm with 90 offices across the country. Based in Arizona, Baker leads the firm’s employee benefit plan practice group. She can be reached at anita.baker@cliftonlarsonallen.com. CliftonLarsonAllen is the fourth-largest auditor of employee benefit plans in the U.S. and audits more than 2,000 plans.
CliftonLarsonAllen is one of the nation’s top 10 certified public accounting and consulting firms. Structured to provide clients with highly specialized industry insight, the firm delivers assurance, tax and advisory capabilities. CliftonLarsonAllen offers unprecedented emphasis on serving privately held businesses and their owners, as well as nonprofits and governmental entities. The firm has a staff of more than 3,600 professionals, operating from more than 90 offices across the country. For more information about CliftonLarsonAllen, visit their website at: www.cliftonlarsonallen.com
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A PrecisionNews SPECIAL REPORT
What Do
American Manufacturers Owe Their Country? Last week The Economist conducted an on-line debate on the question: Do multinational corporations have a duty to maintain a strong presence in their home countries? After a very intense written debate between Harry Moser, former president of GF AgieCharmilles and founder of the Reshoring Initiative, and Jagdish Bhagwati, Professor of Economics and Law, Columbia University, the vote was 54% “yes,” and 46% “no.”
BY MICHELE NASH-HOFF
THE MODERATOR OF THE DEBATE was Tamzin Booth, European business correspondent for The Economist, who introduced the topic by stating, “after the Great Recession, with high levels of unemployment persisting in rich countries, politicians are putting enormous pressure on firms to either keep operations at home or bring them back. The offshoring and outsourcing of work overseas have never been more unpopular. So strong is the backlash against firms which shift jobs abroad that many companies are choosing not to do it for fear of igniting a public outcry. And a “reshoring” trend, bringing factories home to America from China and elsewhere,
is gathering pace and support from several American multinationals, including General Electric and Ford Motor Company.” While Mr. Moser acknowledges that multinational corporations (MNCs) “have a responsibility to enhance shareholder return and obey relevant laws and regulations,” he believes that “MNCs also have a duty to maintain a strong presence in their country of origin,” which he defines “as investing, employing, manufacturing and sourcing at least in proportion to their sales in the origin country.” continued on page 18
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What Do American Manufacturers Owe Their Country? continued from page 17
HE STATES, “THIS DUTY HAS TWO SOURCES. The first is a quid pro quo for the special benefits that their charter provides. The second is based on understanding that a strong presence is almost always in the interest of their shareholders.” In his pro argument for the first duty, Mr. Moser quotes Clyde Prestowitz: “Corporations are not created by the shareholders or the management. Rather they are created by the state. They are granted important privileges by the state (limited liability, eternal life, etc). They are granted these privileges because the state expects them to do something beneficial for the society that makes the grant. They may well provide benefits to other societies, but their main purpose is to provide benefits to the societies (not to the shareholders, not to management, but to the societies) that create them.” This view is corroborated by a recent essay,“The American Corporation,” by Ralph Gomory and Richard Sylla, in which they provide a brief history of corporation formation in America. From 1790 to 1860, over 22,000 corporations were chartered under special legislative acts by states, and several thousand more were chartered under general incorporation laws introduced in the 1840s and 1850s. These state granted charters were not perpetual and had to be renewed periodically, “with its “powers, responsibilities − including to the community − and basic governance provisions carefully specified.”" The essayists comment that general incorporation laws were the answer to the problem of corruption in legislative chartering, but created their own problems in the late 19th Century with the rise of “Robber Barons, both the business leaders who amassed great power and wealth in the rise of mass-production and mass-distribution industries, and the great financiers of Wall Street who collaborated with them.” The concentration of wealth and power in the hands of so few led to the passage of antitrust laws and corporate regulations at both the federal and state levels regulations in the 20th Century to prevent or rein in monopolies. The stock market crash of 1929 and the Great Depression resulted in a multitude of “New Deal” reforms and regulations on the corporate and financial sectors to protect and inform stockholders and the general public. Gomory and Sylla write that for decades after WWII, “the problem of corporate goals seemed under control,” and “the interests of managers, stockholders workers, consumers and society seemed well aligned” while the U. S. and the Soviet Union were fighting a Cold War. As late as 1981, the U. S. Business Roundtable issued a statement recognizing the stewardship obligations of corporations to society: “Corporations have a responsibility, first of all, to make available to the
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public quality goods and services at fair prices, thereby earning a profit that attracts investment to continue and enhance the enterprise, provide jobs, and build the economy.” In addition, “The long-term viability of the corporation depends upon its responsibility to the society of which it is a part. And the well being of society depends upon profitable and responsible business enterprises.” Establishing plants in another country in order to do business in that country and be closer to your customers is a reasonable business decision for many companies whose products are sold globally, such as Coca Cola and other food and beverage manufacturers. I concur with Mr. Moser’s statement. “We do not question multinational companies’ right to invest offshore.” However, it is another thing to transfer all or most of the manufacturing of your products to be sold mainly in the U.S. market to another country, at the cost of hundreds, if not thousands, of American jobs. This brings us to Mr. Moser’s second pro argument to the question; namely, “a strong presence is almost always in the interest of their shareholders.” He states that his experience with the Reshoring Initiative’s free Total Cost of Ownership EstimatorTM has shown that “in their excessive focus on offshoring of manufacturing, many MNCs make suboptimal decisions, actually reducing the long-term return to their shareholders. Thus many MNCs will more fully maximise returns for shareholders if they maintain a stronger presence.” This is because most MNCs do not accurately measure the “Total Cost of Ownership” or “landed costs” in making decisions regarding where to manufacture their products. They ignore the “hidden costs” of doing business offshore about which I have written extensively in my book, such as: quality problems, legal liabilities, currency fluctuations, travel expenses, difficulty in making design changes, time and effort to manage offshore contract, and cost of inventory.
Obviously, if you are a loyal, faithful, devoted citizen of the United States this means that you take actions in your personal and business life to support your country. All that matters, he argues, is that worldwide operations bring profits to the multinational, thereby benefiting the country in which it is headquartered. “MNC investment abroad is good, not bad, for America unless it is a result of distorting tax policies that lead to overinvestment abroad. Asking MNCs to have a presence at home, and subsidising or forcing them under threat of penalties to do so, makes little sense unless you claim that this presence produces some externalities...the benefits to the MNC, and hence to America most likely, will accrue regardless of where the MNC does R&D, in Bangalore or Boston.”
In addition, Mr. Moser states that the behaviors of MNCs include: “Ignoring a whole range of medium-term risks: IP loss; impact on innovation; and loss of competence and control due to increasing reliance on offshore outsourcing firms. The further a firm is removed from the manufacturing of its products, the harder it is to evolve and make future related products. Ignoring longer-term catastrophic risks associated with shifting their presence offshore, including the decline in American economic, technological and military strength: risk of losing sales and assets in developing countries, especially when competing with local state-owned enterprises (SOEs); loss of the government-funded R&D that gives them a head start in many technologies; loss of strong origin-country defence and legal systems that protect the corporate charter; loss of “Pax Americana” that protects their trade around the world; and populist calls for anti-MNC political actions resulting from income inequality driven by a shriveling middle class.”
In is rebuttal, Professor Bhagwati states, “Compelling an American MNC to retain a strong presence in America would be the wrong prescription no matter which of the two rationales you accept...Forcing them to produce at home when that makes them uncompetitive in world markets is surely the wrong prescription: it makes them uncompetitive in markets which today are fiercely competitive.” While I realize and have written about the fact that American manufacturers are under a disadvantage in dealing with countries like China that practice “predatory mercantilism,” it is my opinion that American multinational and national manufacturing corporations have more than a “duty to maintain a strong presence in their home countries.” As American citizens, we “pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all.” Thus, we owe “allegiance” to our country, which is defined as “the loyalty of a citizen to his or her government." Other synonyms are: fidelity, faithfulness, adherence, and devotion.
One important risk that Mr. Moser did not mention is the risk of theft of Intellectual Property by offshore manufacturers, especially in China. For many years, China has been doing this by reverse engineering, counterfeiting, and cyber espionage, but it has been made easier in the past two years by the mandatory technology transfer required by the Chinese government for corporations who set up plants in China.
Obviously, if you are a loyal, faithful, devoted citizen of the United States this means that you take actions in your personal and business life to support your country and do not purposely take actions that may cause harm to your country. Moving a majority of manufacturing to other countries, especially China is doing harm to your country since China has a written plan to replace the United States as the world’s super power. Therefore, American multinational corporations and other American manufacturers owe allegiance to the United States of America by maintaining a strong presence in our country.
In his con argument, Professor Bhagwati asserts that global sourcing and locating plants around the world has happened already, and “there is little point in tilting at reality.” He states, “Multinationals’ products, after all, can now hardly even be defined as American, French or any other nationality when their parts come from every corner of the world.
MICHELE NASH-HOFF is the President ElectroFab Sales and the author of Can American Manufacturing be Saved? Why We Should and How We Can, available at www.savingusmanufacturing.com or www.amazon.com
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Steve Warner
EMJ Metals
at Phoenix Heat Treat, 2450THANKS W. Mohave, Phoenix S. Potter, Tempe, 85282 MANY Micro-Tronics, Dinner2905 Meeting 5:00-8:00pm at Phoenix 6/29 General 6/29Airport General Dinner Meeting at Phoenix Marketing & Program 5/12 Combined Membership, Hilton, 2435 S.5:00-8:00pm 47th Street, Phoenix TO OUR 2013 ATMA VALUED SPONSORS: 480.775.6462 Airport Hilton, 2435 S. 47th Street, Phoenix Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe 602.272.0461
Mickey Gartman
Gartman Technical Services, Inc.
5/17 Board of Directors Meeting 11:30-1:00 at 602.788.8121
Bill Herbst
Global SuperAbrasives
413.231.6530
HUB International
5/25 General Dinner Meeting 5:00-8:00pm at Phoenix 602.749.4190 Airport Hilton, 2435 S. 47th Street, Phoenix
Jackie Bergman
at Leavitt Group, 919 N. St., Phoenix Meeting 11:30-1:00 at1st Foresight Technologies,
6/21
602.910.0808
Meeting 11:30-1:00 at Foresight Technologies, Board Meeting 11:30-1:00 at 1301of W.Directors Geneva, Tempe
Micro-Tronics, 2905 S. Potter, Tempe, 85282
Anna-Lena Seedhill
IFLEX Resource Management
480.429.4508
David Cohen
Industrial Metal Supply
602.454.1500 6/08 Safety Meeting (General Safety Standards) 11:30
Tim Kloenne
Klontech Industrial Sales
at Leavitt Group, 919 N. 1st St., Phoenix 480.948.1871
Barry Armstrong
L.A. Specialties
6/09 Combined Membership, Marketing & Program 602.269.7612
David Hopkins
CliftonLarsonAllen, LLP
480.615.2300
Bob Von Fleckinger
Leavitt Group
602.264.0566
Jeff Trimble
Magnum Precision Machines
602.431.8300 Micro-Tronics, 2905 S. Potter, Tempe, 85282
JUNE
Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe
6/21 Board of Directors Meeting 11:30-1:00 at
David Gundersen
Makino, Inc.
602.228.0347 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix
Chris Porter
Methods West Machines/Tools
Airport Hilton, 2435 S. 47th Street, Phoenix 480.437.2220
Thomas Moore
Moore Tool & Equipment
602.455.8904
Glen Zachman
North-South Machinery
602.466.2556
Pete Hushek
Phoenix Heat Treating
602.258.7751
Scott Sherman
Phoenix Metal Trading
602.257.4660
Jim Perlow
Quality Advisory Services
602.910.1510
Arlene Helt
Ryerson-Phoenix
602.455.3386
Dave Bolt
SBG Capital
480.897.4988
Jane Rousculp
Samuel Aerospace Metals
602.721.0176
Frank Encinas
Semiray
602.275.1917
Russ Kurzawski
Star Metal Fluids LLC
602.256.2092
David Senkfor
Top Gun Consulting
602.510.5998
John Drain
Tornquist Machinery Co.
602.470.0334
Greg Burke
TW Metals
602.864.0014
Doug Pratt
Ulbrich Stainless Steel & Spec.
203.234.3464
MANY THANKS
MANY THAN TO OUR 2011 ATMA VALUED SPONSORS!
TO OUR 2011 ATM VALUED SPONSOR
MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!
Get Turned-On to the ATMA! Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org
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a
Welcome! MARK YOUR CALENDAR WITH THESE NEW ASSOCIATE MEMBER!
UPCOMING ATMA EVENTS! Chris Porter
Methods West Machines/Tools MAY 614 W. 24th St. Tempe, AZ 85282 5/11480.437.2220 Safety Meeting (General Safety Standards) 11:30 phone: at Phoenix Heat Treat, 2450 W. Mohave, Phoenix CPorter@methodsmachine.com • www.methodsmachine.com 5/12 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe
Providing precision machining and fabricating of diverse parts and assemblies Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries Our Quality System is AS9100 B Compliant Equipment Capacities range up to HS-4R HAAS 4-Axis Horizontal Milling Center @ 150” x 66” x 48” and Ikegai VTL CNC Lathe @ Ø 55” Diameter
5/17 Board of Directors Meeting 11:30-1:00 at Micro-Tronics, 2905 S. Potter, Tempe, 85282
Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ long and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50#
5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix JUNE 6/08 Safety Meeting (General Safety Standards) 11:30 at Leavitt Group, 919 N. 1st St., Phoenix
Dynamic Machine and Fabrication Corp. and Dynamic Centerless Grinding 3845 E. Winslow Ave., Phoenix, AZ 85040
6/09 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe
(602) 437-0339
‘SHAKE & BAKE’
(602) 437-8947 fax
6/21 Board of Directors Meeting 11:30-1:00 at Micro-Tronics, 2905 S. Potter, Tempe, 85282 AT THE NTMA
www.
dynamic-machine.com
SOUTHWESTERN 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix REGIONAL Airport Hilton, 2435 S. 47th Street, Phoenix CONFERENCE! SAVE THE DATE:
AUGUST 9-11, 2013 HYATT REGENCY IN DOWNTOWN PHOENIX
ATMA EVENTS in MAR/APR 2013 “Shakin’ hands & bakin’ ideas”
March
MANY THANKS
NTMA Conference > 3/4-9 Board of Directors Mtng > 3/19 @ 4:00pm (MicroTronics) Safety Team Meeting > 3/20 @ 11:30am - 1:00pm (MicroTronicst) Membership/Mktng & Program Mtng > 3/21 @ 4:00pm (Fiesta Inn/Raintree Room) @ 4:00pm - 5:30pm DINNER MEETING > 3/27 @ 5:00-8:00pm (Airport Hilton)
TO OUR 2011 ATMA VALUED SPONSORS!
YOU DO NOT WANT TO MISS THIS CONFERENCE!
• SR.VP of R&D, Federal Reserve Board • Technology Updates & Trends • Education Updates • Business Focus Breakout Sessions • Networking SAVE THE DATE AND JOIN US AUGUST 9-11, 2013 Discover which trends and issues will impact your business in the next 1, 3, or 5 years!
April Precision News Articles/Ads Due > 4/15 Membership/Mktng & Program Mtng > 4/18 (Fiesta Inn/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 4/23 @ 4:00pm (MicroTronics) GOLF OUTING > 4/26 @ 1:00pm Shotgun (Camelback) Register online by 3/22 at arizonatooling.org For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org Arizona Tooling & Machining Association
ARIZONA • CALIFORNIA • COLORADO • TEXAS • UTAH
Contact your local Chapter Executive for details or visit arizonatooling.org
ATMA PRECISION
See our ad on page 33 march/april 2013
23 arizonatooling.orgarizonatooling.org PrecisionNews /23
ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19
• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses
Contact Nichols at 480-804-0593 www.nicholsprecision.com
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• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses
Contact Nichols at 480-804-0593 www.nicholsprecision.com
ONE STOP SHOP
Are you looking for? ELECTROLESS NICKEL BRIGHT NICKEL PASSIVATION CHEM FILM - CLEAR OR YELLOW COPPER or CHROME PLATING POWDERCOATING POLISHING GLASSBEADING VIBRATORY DEBURRING or FINISHING ULTRASONIC CLEANING PRE & POST BAKE STRESS RELIEVE PAINT/NICKEL/CHROME STRIPPING Pick up and delivery upon request.
L.A. SPECIALTIES, INC. 4223 North 40th Avenue, Phoenix, Arizona 85019
602-269-7612 barry@laspecialties.com • www.laspecialties.com Please feel free to contact us. We will be happy to assist.
www.SunGrindingUSA.com
For All Your Grinding Needs!
We have the largest centerless grinder in the state!
Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.
Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!
Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated. info@sungrindingusa.com / 522 E. Buckeye Rd. Phoenix, AZ. 85004
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PrecisionNews // NTMA -SAN DIEGO CHAPTER
MEMBER LISTINGS
SAN DIEGO CHAPTER
REGULAR MEMBERS 2013 BOARD OF DIRECTORS President SEAN TILLETT Alphatec Spine Vice President and Treasurer HEATHER RUSSELL K-Tech Machine Secretary TAMMY TILLETT
Todd C. Lawson
Academy Machine Products
760.439.0109
Jodi Deane
Advanced Maching and Tooling
858.486.9050
Steve Doda*
Aerotek Commercial Staffing
619.278.3014
Bill Mengel
Aerotek Commercial Staffing
619.278.3042
Sean Tillett
Alphatec Spine
760.494.6774
Peter Neville
B&H Tool Company Inc.
800.272.8878
Alejandra Rogue
BMW Precision
760.439.6813
Lyle Anderson
C&H Machine and EDM Services
760.746.6459
Margarita Brear
Compucraft Industries, Inc.
619.448.0787
Michael J. Brown
Computer Integrated Mach., Inc.
619.596.9246
Melinda Coldwell
Cornerstone Machining, Inc.
760.727.5228
Membership MIKE BROWN Computer Integrated Machining
Erich Wilms
Diversified Tool & Die
760.598.9100
Alex Fima
Directed Mfg.
512.355.1360
Donovan Weber
Forecast 3D
760.929.9380
Past President TONY MARTINDALE Martindale Manufacturing
Andrew Allen
Henry Machine, Inc.
760.744.8482
Karen Green**
Industrial Metal Suppy Inc.
619.977.9486
Martin Mechsner**
Industrial Metal Suppy Inc.
858.277.8200
Jim Piel
J I Machine Company, Inc.
858.695.1787
Antonio Dominquez
Johnson Matthey, Inc.
888.904.6727
Dan Faupel
Johnson Matthey, Inc.
858.716.2301
Joel Schuman
JS Manufacturing
760.940.1322
Education Board Member John Riego de Dios Construction Tech Academy
Heather Russell
K-Tech Machine, Inc.
760.471.9262
Frank Harton
L.F. Industries, Inc.
760.438.5711
Cliff Manzke
Manzke Machine, Inc.
760.504.6875
Member at Large Cliff Manzke Manzke Machine, Inc.
Russell Wells Sr.
MarLee Manufacturing, Inc.
909.390.3222
Tony Martindale
Martindale Manufacturing Co.
760.744.3078
Linda Kurokaw***
Mira Costa College
760.795.6824
Mark Rottele
Roettele Industries
909.606.8252
Robert Kemery
Solar Turbine
619.544.2808 760.471.2600
BOARD MEMBERS
Chapter Executive Tammy Tillett
OUR MISSION “To form an alliance within the San Diego region of the local machining and tool industry and to foster mutual success through education, technology, opportunity sharing and act as one voice with the government and the community.”
NTMA - San Diego Chapter 1377 Armorlite Dr., Suite B San Marcos, CA 92069 Phone: 760.419.1393 ntmasandiegochapter.org
Scott Cormony
Waterjet West, Inc.
Hernan Luis y Prado
Workshops for Warriors
619.550.1620
Steve Grangetto
5th Axis
858.505.0432
*National Associate Members **Associate Member ***Educational Partner
FOUNDING PARTNERS Glenn Van Noy
Champion Risk and Insurance Services
760.419.1393
Dave Stanton
Digital Dimensions, Inc.
858.279.2557
Gail Houser
National Tooling & Machining Assoc.
602.758.6912
Mark Selway
Selway Machine Tool Company
888.735.9290
NTMA - San Diego Chapter EVENTS March Chapter Meeting March 21st - Location to be announced.
April Chapter Meeting April 18th - Location to be announced. Updates at: ntmasandiegochapter.org
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PrecisionNews // NTMA INITIATIVES
How Can NTMA Help You Grow Your Business? Profitability grows when revenue increases and costs are controlled. NTMA can help you with both. Though most of our members are small- to medium-sized companies, the power of the association can help you do business like a large corporation. REVENUE GROWTH • We organize regular business-to-business purchasing fairs, designed to operate like speed dating for suppliers. We invite 100 or more buyers from large companies and then give you opportunities to briefly pitch your products and services. As a result attendees leave with good contacts and solid leads, leading to increased business. Companies have been awarded millions of dollars in contracts as a direct result of these events. • We offer a program called Members First, designed to help members turn to each other to meet needs. Perhaps your next customer is an NTMA peer? Or perhaps an NTMA member would make an excellent vendor for you? Members First helps make the connections. • By interacting with fellow members in your local chapter, you may discover new business opportunities, or ways to work together with peers to increase business or market yourselves cooperatively. COST CONTROL • We offer discount programs with several large suppliers (including Grainger, UPS and Yellow Freight), allowing you to leverage NTMA’s combined buying power for your own benefit. • Our business insurance program keeps more money in your pocket by offering a necessary product in a low-overhead, notfor-profit manner. Our decision resources allow you to be smarter about how you use your resources, resulting in greater efficiencies and lower costs. Learn more at: www.ntma.org/initiatives
NTMA UPCOMING EVENTS MFG 2013 - Manufacturing for Growth March 5-8, 2013 Location: Hilton Waikoloa Village, Waikoloa, HI
MAKE YOUR VOICE HEARD ON CAPITOL HILL! For additional information, please visit
www.metalworkingadvocate.org or contact the NTMA at 800.248.6862
NTMA/PMA Legislative Conference April 22-24, 2013 Location: Washington D.C. Visit: www.ntma.org march/april 2013
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NORTH TEXAS CHAPTER 2013 BOARD OF DIRECTORS President TODD ELLARD Manda Machine Company Vice President JEFF SPENCER Clay Precision Treasurer BARRON SMITH R.W. Smith Company Chapter Executive LISA ELLARD Trustee JOE O’DELL Plano Machine & Instrument, Inc.
BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works Bill Walter Ellison Technologies Micah Embrey CNC Precision/Shamrock-Bolt Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason
NTMA - North Texas Chapter ntc.ntma@gmail.com phone: 214.536.4970 PO Box 541236 Dallas, TX 75354-1236 ntmanorthtexas.org
NTMA-NORTH TEXAS MEETINGS & EVENTS Thanks to our January, 2013 Meeting Sponsor: Manda Machine Company March 2013 – No Meeting April 18, 2013 – DFW Movers May 16, 2013 – Shamrock Precision
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PrecisionNews // NTMA -NORTH TEXAS CHAPTER
MEMBER LISTINGS REGULAR MEMBERS
ASSOCIATE MEMBERS
Vincente Chan
Aeroweld Technologies, Inc.
972.247.1189
Larry Ellison
AJR Metalworks, Inc.
214.352.3766
Wade Whistler
A.C.T. Precision Sheet Metal, Inc.
214.678.9114
Tommy Thompson
Bodic Industries
972.840.1015
Guy Allen
All Special, Inc.
972.641.0110
Lewis Lance
Bodycote Heat Treat
817.265.5878
Wayne Applegate
Applegate EDM, Inc.
972.488.8997
Rick Blair
Brook Anco Corporation
585.475.9570
Tony Woodall
AST Waterjet
972.554.0383
Craig van Hamersveld
Campat Machine Tool, Inc.
972.424.4095
Dan Wiktorski
Axis Machine Works, Inc.
214.390.5710
Claudia Pautz
Castle Metals
972.339.5000
Steve Ingersoll
Bailey Tool & Manufacturing
972.974.8892
Norm Williamson
H & O Die Supply, Inc.
214.630.6660
Michael Berdan
BE-Technologies, Ltd.
972.242.1853
Mike Johns
Haas Factory Outlet
972.231.2802
Christi Cameron
Cameron Machine Shop, Inc.
972.235.8876
Stephen Draper
Hartwig, Inc. - Texas
972.790.8200
Jeff R. Spencer
Clay Precision, Ltd.
903.891.9022
Matt Curtis
Hillary Machinery, Inc.
972.578.1515
Joseph Lodor
Commerce Grinding Company, Inc.
214.651.1977
Rod Zimmerman
Iscar Metals, Inc.
817.258.3200
Robert McNamara
Davis Machine & Manufacturing
817.261.7362
Randy Joyce
Joyce Engraving Company, Inc.
214.638.1262
Charles Gilbert
DNS Tool Cutter Grinding, LLC
972.241.5271
Curtis Dahmen
Kaeser Compressors, Inc.
972.245.9611
David Ellis
Ellis Tool & Machine, Inc.
903.546.6540
Mark S. Holly
Machinists Tools & Supplies
214.631.9390
Jim Harris
E.W. Johnson Company
972.436.7528
Leland McDowell
McDowell Machinery & Supply Co.
214.353.0410
Rudy D. Kobus
Expert Tool & Machine, Inc.
972.241.5353
Nicki Smith
MSC Industrial Supply
817.590.2637
Monte Titus
F& R Machine & Repair, Inc.
214.631.4946
Ray Jones
MWI Inc. / Southwest Division
972.247.3083
Gary Fore
Fore Machine Company, Inc.
817.834.6251
Mike Chadick
North Texas Precision Instrument
817.589.0011
Mike Lee
Fort Worth Centerless Grinding, Inc.
817.293.6787
Reed Hunt
Reed Hunt Services, Inc.
817.261.4432
Larry Borowski
Greenslade and Company, Inc.
817.870.8888
Scott Devanna
SB Specialty metals
800.365.1168
Oscar Guzman
Guzman Manufacturing
972.475.3003
Bob Severance
Severance Brothers
972.660.7000
David L. Hodgdon
H. H. Mercer, Inc.
972.289.1911
Alan VanHoozer
Top Tooling of Dallas, Inc.
972.278.8300
Don Halsey, Jr.
Halsey Engineering & Mfg., Inc.
940.566.3306
Tom Beurkle
Traxis Manufacturing
512.383.0089
Mike Kenney
Kenney Industries
214.421.4175
Glenn Wise
Wise Machinery, LLC
817.905.9473
Cory Trosper
K & D Tool & Die, Inc. 972.463.4534 ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM
Keith Hutchinson
Lancaster Machine Shop
972.227.2868
MANY THANKS
Scott Cody
LSC Precision, Inc.
940.482.9700
Sammy Maddox
Maddox Metal Works, Inc.
214.333.2311
TO OUR NTMA-NORTH TEXAS SPONSORS:
Todd Ellard
Manda Machine Company, Inc.
David Evans
Manek Equipment, Inc.
Rodie Woodard
Maximum Industries, Inc.
Woodrow W. Thompson
Metal Detail, Inc.
Allen Meyer
Meyer Enterprises
Eddie Mills
Mills Machine Shop
Eddie Steiner, Jr.
O E M Industries, Inc.
Morris Padgett
Padgett Machine Tools, Inc.
Troy Paulus
Paulus Precision Machine, Inc.
Page 19
214.352.5946
• Machining Excellence since 1997 903.439.6414 • ISO 9001 + AS9100B Certified 972.501.9990 • Experienced senior machinists • Experts in stainless, aluminum, 214.330.7757 plastics and exotics 972.353.9791 • 8A Certified, Viet Nam Vet, 940.479.2194 Minority Owned Small Business 214.330.7271 • Eager to provide you with quality performance and quick responses 254.865.9772
Contact Nichols at 480-804-0593 940.566.5600 www.nicholsprecision.com 940.665.2814
Joe O’Dell
Plano Machine & Instrument, Inc.
Bill Gilliland
Quality Tool
972.221.0537
Matt Harrell
Quickturn Technology, Inc.
469.643.5010
Barron Smith
R. W. Smith Company, Inc.
214.748.1699
Mike Embrey
Red Rock Industries
940.665.0281
Gary Embrey
Shamrock Precision
972.241.3931
Frank Burch
Southern Machine Works
580.255.6525
John Anselmi
Sunbelt Plastics Inc.
972.335.4100
Marshall B. Taylor
T & K Machine, Inc.
903.785.5574
Jake Bailey
Tower Extrusions Fabrication
940.564.5681
Tom Buerkle
Traxis Manufacturing
512.383.0089
David Greer
Tribal Solutions, Inc.
972.436.0422
BIL L OR M A C H IN E T OOL SE RVIC E
“The Power of Connections” march/april 2013
arizonatooling.org
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PrecisionNews // TAX FOCUS
Tax Incentives For Equipment Purchases EXTENDED Through 2013 BUSINESSES HAVE SIGNIFICANT REASONS to acquire and install capital equipment before the end of 2013, thanks to the American Taxpayer Relief Act of 2012. And, because the allowable Section 179 deduction is expected to be reduced to $25,000 in 2014 and Bonus Depreciation is scheduled to expire, it’s important to plan now to maximize these important benefits in 2013.
PHOENIX METAL TRADING, INC.
Industrial Scrap Specialists OUR MISSION:
SECTION 179 “SMALL BUSINESS” EXPENSING INCREASED The Section 179 expensing allowance is boosted to $500,000 for new and used equipment purchases ordered and placed in service in the 2013 tax year. Moreover, the cap on how much equipment can be purchased to fully enjoy the write-off increases to $2 million. Section 179 deduction may not exceed taxable income for the year it is taken. 50% BONUS DEPRECIATION EXTENDED For the 2013 tax years, 50% bonus depreciation on NEW equipment purchases is allowed. Unlike Sec. 179 (see above), there is no cap on the amount of equipment that can be depreciated under this bonus depreciation provision. Bonus depreciation can be combined with the Section 179 depreciation. In addition, the normal first years deduction under MACRS is available and can be combined with Section 179 and Bonus Depreciation. This could mean a substantial boost to your bottom line this year as a result of the impact on your taxable income. But, to get the deduction for tax year 2013, you have to act this year, as once the clock strikes midnight on December 31, 2013; Section 179 deduction is expected to be reduced dramatically, and Bonus Depreciation is scheduled to expire. If you would like to have more information on these extended tax incentives or have some questions, please contact Dave Bolt at SBG Capital 480.897.4988.
Our mission at Phoenix Metal Trading is to provide the best service at a fair price and to continually improve our company to be a leader in our industry.
EPA and ADEQ Environmental Compliance We Purchase All Types of Scrap:
Copper Brass Aluminum Steel Stainless Steel
Titanium Plastic Cardboard Nickel and Cobalt Alloys
State of the Art Fleet and Plant Equipment Never a charge for pickup
602-257-4660 www.phxmtl.com SCRAP METAL RECYCLING SINCE 1989 • ATMA MEMBER
SBG Capital is an Associate Member of the ATMA.
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PrecisionNews // INSURANCE FOCUS
2013 Rings In New Calculations for Workers’ Compensation Premium Controlling workers’ compensation insurance costs is vital to maintaining a profitable and competitive business. Business owners will want to pay attention to recent changes in Arizona insurance law that affect how these costs are calculated in 2013 and beyond. Arizona employers can expect to see increases in their workers’ compensation insurance costs in 2013 because of new ways the NCCI is calculating the experience modification factor, or “x-mod”. Part of the formula used to determine an employer’s x-mod is the primary loss dollar amount. For example, in the past, only the first $5,000 of a $20,000 claim was included in the x-mod calculation. Starting in 2013, this primary loss dollar amount will increase to $10,000 for the same $20,000 claim. Further increases will occur in 2014 and 2015. Because a higher amount is being used in the x-mod calculation, the resulting x-mod will also be higher.
Employers who currently have an x-mod credit may see a higher credit as a result of the new calculations, meaning they’ll pay a lower premium for their Worker’s Compensation insurance in 2013. Employers who currently have an x-mod debit may see their debit increase with the new calculations, meaning they’ll pay a higher premium for their Worker’s Compensation insurance in 2013. Your insurance carrier’s Worker’s Compensation loss prevention department can help you implement effective measures to increase worker safety and reduce worker injuries that may help lower your insurance premium. Source: National Council on Compensation Insurance, Inc. “Experience Rating Update”, Fall 2012
TM
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ARIZONA • CALIFORNIA • COLORADO • TEXAS • UTAH
‘SHAKE & BAKE’ AT THE NTMA SOUTHWESTERN REGIONAL CONFERENCE! SAVE THE DATE: AUGUST 9 -11, 2013 HYATT REGENCY DOWNTOWN PHOENIX
“Shakin’ hands & bakin’ ideas”
YOU DO NOT WANT TO MISS THIS CONFERENCE!
• SR.VP of R&D, Federal Reserve Board • Technology Updates & Trends • Education Updates • Business Focus Breakout Sessions • Networking SAVE THE DATE AND JOIN US AUGUST 9 -11, 2013 Discover which trends and issues will impact your business in the next 1, 3, or 5 years!
CONTACT YOUR LOCAL NTMA CHAPTER EXECUTIVE FOR MORE INFORMATION:
SOUTHWEST REGION CHAPTERS
ATMA ARIZONA
NTMA - NORTH TEXAS
CHRIS MIGNELLA, EXECUTIVEDIRECTOR@ARIZONATOOLING.ORG PH:602.388.5752
LISA ELLARD, NTC.NTMA@GMAIL.COM PH:214.536.4970
NTMA - SAN DIEGO
NTMA - SAN FRANCISCO
TAMMY TILLETT, TAMARA.TILLETT@YAHOO.COM PH: 888.904.6727
MICHELLE MYHRE, MICHELLE@RM-MACHINING.COM PH:650.591.4178