Precision News May/June 2013

THIS ISSUE: Your Role in Recovery / Is Tax Reform for Real? / Detecting Heat Stroke / Shake & Bake 2013

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ARIZONATOOLING.ORG MAY/ JUNE 2013

The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas

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TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

BITby

BIT THE GROWTH ISSUE

Inside:

HOW THE CARBON TAX WILL HARM MANUFACTURERS

NOTHING CAN STOP YOUR COMMITMENT TO MANUFACTURING IN AMERICA, OR SO YOU THOUGHT

DETERMINING LARGE EMPLOYER STATUS TAKE ACTION NOW AND EXAMINE YOUR WORKFORCE TO DETERMINE IF YOU WILL BE SUBJECT TO PENALTIES IN 2014

TAXES / ENERGY / INFRASTRUCTURE / PROPERTY RIGHTS / CYBERSECURITY / TRADE / ENFORCEMENT / LABOR

FOUR GOALS FOR A MANUFACTURING RESURGENCE HOW WE CAN TRANSFORM A DIFFICULT AND SLUGGISH RECOVERY INTO AN ECONOMIC RESURGENCE

DISCOVER A BLUEPRINT FOR COMPETITIVENESS THAT WILL UNLEASH THE ECONOMY AND MANUFACTURING’S OUTSIZED MULTIPLIER EFFECT

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NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

PN HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP

Sandvik Coromant CoroMill 172 disc cutter offers a versatile and timesaving solution for milling gear profiles

WORKERS

HEALTH

PROPERTY

LIABILITY

AUTO

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 lessen the impact of these increases.

For more information contact: Glenn VanNoy at Champion Risk & Insurance Services, L.P. 760-419-1393 or email Glenn at: gvannoy@championrisk.net.

MAY/ JUNE 2013 VOLUME 3 • ISSUE 3

Contents 10 12 16

Features

Departments

GAME CHANGER: HOW THE CARBON TAX WILL HARM MANUFACTURERS

03 President’s Letter

You lead a company in the united states, where it is already more expensive to manufacture than in other countries around the globe. You continue to do so despite the higher tax rates, regulatory burdens and other structural costs that your company faces. Nothing can stop your commitment to manufacturing in America, or so you thought.

04 Policy Matters 06 You Built This 08 People Power

THE AFFORDABLE CARE ACT: DETERMINING LARGE EMPLOYER STATUS FOR 2014

20 Websites that Work 20 Arizona Chapter Info

Starting in 2014, employers with 50 full-time employees and full-time equivalents are required to offer affordable health insurance coverage to all of their full-time employees and dependent children or pay a penalty.

Employers need to take action now and examine their workforce to determine if they will be subject to penalties.

26 San Diego Chapter Info 27 NTMA Initiatives 28 North Texas Chapter Info

A GROWTH AGENDA: FOUR GOALS FOR A MANUFACTURING RESURGENCE IN AMERICA

30 Future Focus 32 Shop Floor

Manufacturers are ready to power the economy. With the right policies in place, we will transform a difficult and sluggish recovery into an economic resurgence.

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

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CONTRIBUTING WRITERS Anita F. Baker, Dorothy Coleman, Ross Eisenberg, Dante Fierros, Margaret Jacoby, Sanford Kahn, NAM & PN Editors, Omar S. Nashashibi, 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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Materials expire 11/1/13. © 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (894067_08195)

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First Word PRESIDENT’S LETTER

At the Table I am sure that everyone has heard that old adage by now that if you are not at the table you are on the menu. Well, I am pleased to say that your ATMA is not only “at the table” when it comes to activities within the State that affect our businesses but we are making inputs as to what the menu should be.

Specifically, ATMA members and board members participated in a very large effort lead by the Arizona Commerce Authority to determine the extent of, reasons for and what to do about the workforce skills gap we are all experiencing. Many of us will now serve on committees that are outlining specific steps that State agencies, education centers and manufacturers will take to rectify the situation at least locally.

Another example of raising the awareness of ATMA and “being at the table” is our participation at the Second Annual Aerospace, Aviation, Defense and Manufacturing Requirements Day sponsored by the Arizona Technology Center, Arizona Commerce Authority and your ATMA. Customers and suppliers alike came together to learn of new technologies and to hear speakers providing the latest information relative to not only technology initiatives but manufacturing as well.

I believe we are seeing a growing awareness in many quarters that for every invention or new idea contemplated and put forth by a designer, someone has to manufacture it. This seems intuitively obvious to many of us but we have all seen instances where it appears many have lost sight of this obvious fact. For every designer, inventor, senior manager/engineer that we hire, we also need some greater multiple of manufacturing worker to “turn the crank” and produce that invention.

I would argue that the State and the community in general benefit greatly (tax base) by considering enticing those companies to the State that bring opportunities for greater numbers of manufacturing positions and are equally important to those companies that bring engineering technologies alone.

DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com

This was my message at this forum and those of you that attended know that indeed the subject of manufacturing is getting some attention as it should.

Look to hear more about what we (industry) can do and should do in support of those agencies and schools that will support our needs more and more into the future. Please join the conversation, come to the table and let’s look at the menu together.

Shall I make reservations?

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Policy Matters BECOME A VOICE FOR CHANGE

Is Tax Reform for Real?

by OMAR S. NASHASHIBI

Washington, D.C. – Initial estimates for 2013 are the federal government will collect roughly $2.7 trillion in taxes, up from $2.45 trillion in 2012. Federal revenue will hover at 19% of the Gross Domestic Product (GDP) by mid-decade, similar to the 19.1% called for in the House Republican federal budget proposal (“Ryan Budget”). Politics aside, based on these numbers alone, can Washington tackle tax reform in a way that does not raise taxes or increase the debt by reducing revenues? Can Congress pass a tax reform bill all?

At least four of the most powerful people in Washington think the answer is yes. House of Representatives Speaker John Boehner (R-OH) designated the first official bill in the House, H.R. 1, for tax reform; an important symbolic statement saying tax reform is his top priority. House Ways and Means Committee Chairman Rep. Dave Camp (R-MI) held more than twenty hearings last year on tax reform and has already released a substantial portion of a draft tax reform bill. On the Senate side, Finance Committee Chairman Max Baucus (D-MT) is holding ten meetings for Senators and senior staff only from April 1st to August 1st to work through specific parts of tax reform. However, President Obama’s proposal includes only C Corporation tax reform which would not cover the majority of small businesses in the country.

Unless policymakers in Washington hear from small and medium sized businesses, tax reform could leave thousands of manufacturing companies in a less competitive position than they are today. An April 2011 Ernst & Young, LLP report showed that 81% of all manufacturers are structured as pass-through companies and the U.S. Census shows 89.5% of all manufacturing establishments have fewer than 500 employees.

This is why Washington must only move forward on comprehensive tax reform for both C Corporations and Passthrough businesses such as Subchapter S Corporations, Partnerships, and others who pay taxes at the individual rate.

Tax reform is more than just about the rates we pay. Until lawmakers reached “Fiscal Cliff” deal over New Year’s several months ago, 101 temporary tax credits, deductions, and other provisions were scheduled to expire. Instability in the tax code is one of the largest complaints I hear from manufacturers. This April, a member of the National Tooling and Machining Association testified before Congress about just this problem.

This business with 24 employees claimed $400,000 in Section 179 Equipment Expensing in 2011. However, in 2012, because Congress allowed the Section 179 to lapse, the limit was $139,000 with a phase out if you purchased over $560,000 in equipment. The company needed a machine that cost $611,000

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but if they purchased this equipment would lose the Section 179 deduction because it exceeded the phase out provision. This one piece of equipment exceeded their entire limit because Congress failed to act on time. Therefore, they only purchased $130,000 worth of smaller equipment to stay within the threshold of the tax provision and did not hire the two additional employees they would have needed had they purchased all the equipment.

Another NTMA manufacturing company recently reported to us that in 2011 they spent $730,000 on new equipment and $934,000 in 2012 because they were able to benefit from the expanded equipment expensing provisions. However, for 2014, they are budgeting $100,000 just to maintain equipment because of the uncertainty surrounding Section 170 and Bonus “Accelerated” Depreciation.

In Washington, we are actively lobbying 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 metalworking manufacturers showed that nearly 90% use Bonus Depreciation and Section 179. We must explain to lawmakers that when they fail to do their job, it creates uncertainty among manufacturers who do not invest as much in their businesses or hire more employees.

In addition, countless manufacturers are subject to the Alternative Minimum Tax (AMT), which bars a company from claiming the R&D Tax Credit or even the $1,000 credit for hiring a long-term unemployed person in your shop. The tax code is a mix of contradictions and roadblocks to expanding manufacturing in America.

With so much at stake in Washington, it is critical more manufacturers stand up and have their voices heard. Members of the National Tooling and Machining Association flew to Washington in April as part of the One Voice Annual Legislative Conference to educate lawmakers about this issue.

No one knows for sure if Washington can strike a grand bargain on tax reform but one thing is certain, right now they are drafting a bill and the stakes couldn’t be higher for businesses who want to grow manufacturing in America.

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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You Built This YOUR ROLE IN ECONOMIC RECOVERY

Where Do You Stack Up? from nam.org/statedata • mfgdata@nam.org

Nearly 9 percent of all nonfarm workers in the United States work for a manufacturer, but manufacturing has played an outsized role in recent economic recovery. Some states are more closely tied to production than others, and in several states, a large percentage of overall employment is devoted to working for a manufacturer. The map shows what percentage of each state’s workforce is employed in manufacturing.

Manufacturing Employs Sizeable Workforces in the States (thousands of workers)

source: Bureau of Economic Analysis

DID YOU KNOW? • Manufacturing in the United States produces $1.8 trillion of value each year, or 12.2 percent of U.S. GDP. For every $1.00 spent in manufacturing, another $1.48 is added to the economy, the highest multiplier effect of any economic sector.

• Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards.

• Manufacturing supports an estimated 17.2 million jobs in the United States—about one in six private-sector jobs. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing.

• Manufacturers in the United States perform two-thirds of all private-sector R&D in the nation, driving more innovation than any other sector.

• In 2011, the average manufacturing worker in the United States earned $77,060 annually, including pay and benefits. The average worker in all industries earned $60,168.

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• Taken alone, manufacturing in the United States would be the 10th largest economy in the world.

Learn more at: www.NAM.org @2013 NAM. Used with permission.

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Even the best businesses can have claims. Contact your local Federated representative to lear learnn more about risk management resources, like a distracted driving program, designed to help keep your business on the right road.

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People Power INFORMATION FOR ACTION

Dealing with High Maintenance Employees

Difficult vs. High Maintenance Employees . . .

And How to Deal With Them

by MARGARET JACOBY, SPHR

WORKING WITH DIFFICULT PEOPLE CAN BE HARD, BUT MANAGING SOMEONE WHOSE BEHAVIOR CLASHES WITH YOUR EXPECTATIONS CAN CAUSE MAJOR TENSION. Experienced supervisors know that they must separate emotions from job requirements.

Smart managers put their focus on tasks, projects and outcomes. Personal feelings cannot interfere, and all employees must be treated the same way.

Too often, though, managers turn away from or ignore their least favorite employees.

They avoid interaction with the employee and write them off, preferring to do the job themselves. This kind of avoidance is not only a management mistake, but can create legal problems for the employer. Difficult employees that frequently “bump heads” with management are the ones most likely to file lawsuits when they feel wronged.

When faced with employees who don’t do what is asked, it’s better to devise a strategy for making the best of the situation which can be potentially explosive. Consider the following steps to make compliance easier: CONFRONT PROBLEMS HEAD-ON If you don’t like an employee, chances are they probably feel the same about you. Clear the air and acknowledge any ill will to help the employee focus on getting the job done.

SEEK CONFIRMATION When you give instructions, don’t assume you are fully understood.Ask the employee

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to explain what you said and what your expectations are for the job.

STICK TO BEHAVIOR Don’t let a person’s attitude or personality interfere with the job. Focus on describing the work and your expectations.

SPEAK AND WRITE After explaining the assignment, have the employee confirm their understanding, ask questions and make suggestions--then follow up with email or memo to summarize the assignment and reinforce the deadline.

TALK ON THE EMPLOYEE’S TURF A practical way to encourage difficult employees to comply is to meet them on their own ground, not yours. Calling them into your office could instantly put them on the defensive.

While it may not be possible to transform a difficult employee into a friendly ally, you can take steps to make it easier for them and for yourself.

MARGARET JACOBY is the president of MJ Management Solutions, Inc. She can be reached at margaret@mjms.net Learn more at: www.mjms.net

may/june 2013

It’s said that “Difficult Employees” are easy to spot, but before you assign that label to an employee, consider “Stewart”. As a candidate and as a new hire he was impressive, but now, not so much. Stewart has become aggressive and lacks tact. He wants to take on too much, too soon and his nervy tendencies irritate his co-workers and supervisor. He has even begun to get on your nerves. Stewart sounds like a difficult employee ... but could he be a “High Maintenance” employee? Could he be challenging, but also a talented and valuable asset? Before you write him off, you should get to know Stewart.

High maintenance employees want to do things their way. They don’t respond well to being directed, but they can be coached and will respond well to options. For example, make sure that Stewart understands how his actions positively, or negatively, impact your operation. Avoid telling him what he can’t do or is doing wrong. Instead, find out what frustrates him about his work and consider what he suggests as an alternative approach. What he proposes must be acceptable to you, but keep in mind that by their nature high maintenance workers are innovative problem-solvers.

High maintenance employees may be mavericks, but don’t overlook the reality that they are naturally results-oriented, high-achievers. Take a good look at the Stewarts in your organization. Evaluate them; uncover their work styles and their workplace motivators before you label them a difficult employee ... you may be dealing with a high maintenance “gem”.

TED SZANIAWSKI Principal, HRGroup, LLC Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com

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Economic Focus VIEWS OF POLICIES AND PRACTICES

Game Changer Carbon Tax Will Harm Manufacturers

by DOROTHY COLEMAN AND ROSS EISENBERG

Picture this scenario, if you dare. You lead a company in the United States, where it is already 20 percent more expensive to manufacture than in other countries around the globe. You continue to do so despite the higher tax rates, regulatory burdens and other structural costs that your company faces. Nothing can stop your commitment to manufacturing in America, you think. or so you thought. flash forward a year. Your natural gas costs have increased by 40 percent. Gasoline for your fleets costs an additional 20 cents per gallon, and you can no longer afford the electric bill to power your plant. You have no choice but to consider cutting back or even shutting down your operations. All this could happen in year one of a graduated carbon tax.

For anyone who thinks this scenario is overblown, consider the results of a nonpartisan study of carbon tax outcomes commissioned by the National Association of Manufacturers (NAM). Economic Outcomes of a U.S. Carbon Tax found that a $20 per ton tax increasing at 4 percent each year would cut GDP by 0.5 percent, or $97 billion, in 2023 alone. In Congress, Sens.

Barbara Boxer (D-CA) and Bernie Sanders (I-VT) have introduced a bill to levy a $20 per ton carbon tax increasing 5.6 percent each year. Blows to the overall economy would far outweigh any of the $300 billion in revenue

that the Boxer-Sanders proposal and a second energy bill promise to deliver. The impact of the tax on manufacturers, which use one-third of our nation’s energy, would be particularly damaging. Prices for coal, natural gas and petroleum products critical to manufacturing would rise. Consumption, investment and jobs would plunge, reducing federal revenue from taxes on capital and labor. Higher costs and lower labor productivity would drive down real wage rates. In short, manufacturers in the United States would struggle more than ever to continue manufacturing domestically.

BLOWS TO THE OVERALL ECONOMY WOULD FAR OUTWEIGH ANY OF THE $300 BILLION IN REVENUE THAT THE BOXER-SANDERS PROPOSAL AND A SECOND ENERGY BILL PROMISE TO DELIVER. fyi:

A $20 per ton tax increasing at 4 percent each year would cut GDP by 0.5 percent, or $97 billion, in 2023 alone.

- NAM

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“AS CONSUMERS OF ONE-THIRD OF OUR NATION’S ENERGY SUPPLY, MANUFACTURERS AND OUR EMPLOYEES WILL STRUGGLE WITH HIGHER ENERGY PRICES. A CARBON TAX WILL SEVERELY HARM OUR ABILITY TO COMPETE WITH OTHER NATIONS.” - NAM PRESIDENT AND CEO JAY TIMMONS

Manufacturers need to join the NAM in educating their members of Congress—who NAM members can look up on GovTrack— about how a carbon tax would diminish their bottom line. Recently, our policy experts held a briefing on this topic for Senate Republican staff and another for member companies. We also responded to a bicameral group of legislators who back yet another carbon tax bill that would hurt manufacturers. As we pointed out to Rep. Henry Waxman (D-CA) and Sen. Sheldon Whitehouse (D-RI), unilateral restrictions on U.S. carbon tax emissions would not even achieve the desired environmental benefits.

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Unchecked by similar restrictions, countries around the world would continue to emit carbon into the atmosphere. Unconstrained by similar burdens, our global competitors would make gains at our expense.

Meanwhile, many NAM member companies are the same ones driving energy-efficiency measures, alternative energy sources and new technologies that reduce greenhouse gas emissions without resorting to taxation.

We continue to provide support for such innovators and be a voice for manufacturers on Capitol Hill through furthermeetings, briefings and other outreach efforts.

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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

Together, we can prevent burdensome taxation. A carbon tax is not an economic Band-Aid. It is the source of economic injury.

For more information, please contact DOROTHY COLEMAN, vice president of tax and domestic economic policy, at dcoleman@nam.org, and ROSS EISENBERG, vice president of energy and resources policy, at reisenberg@nam.org.

Learn more at: www.NAM.org @2013 NAM. Used with permission.

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Electron Beam Welding Heat Treating Vacuum Heat Treat Nitriding Shot Peening Cryogenic Processing Plasma Spray Coating HVOF Coating Diffused Aluminide Coating Electroless Nickel Plating Hard Chrome Plating Cadmium Plating Silver Plating Copper Plating Anodizing Phosphating Black Oxide Dri-Lube Painting

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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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Feature Story // PrecisionNews

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PrecisionNews presents continuing coverage of the Patient Protection and Affordable Care Act and its impact on employers both large and small.

the affordable care act: determining large employer status for 2014 SPECIAL REPORT BY ANITA F. BAKER, CPA, CEBS

Starting in 2014, employers with 50 full-time employees and full-time equivalents (FTEs) are considered a large employer and are required to offer affordable health insurance coverage to all of their full-time employees and dependent children (play) or pay a penalty. Employers need to take action now and examine their workforce to determine if they will be subject to penalties in 2014.

“play or pay” penalties A large employer who does not offer minimum essential health insurance coverage to all of their full-time employees and dependent children under an employer-sponsored group health plan will “pay” a $2,000 annual penalty per full-time employee starting January 1, 2014, if at least one full-time employee purchases health insurance through an Exchange and the employee receives a premium tax credit or a cost-sharing reduction towards the cost of their coverage. This penalty applies to all full-time employees after the first 30 and is assessed monthly.

The alternative for a large employer is to offer health insurance coverage that is both affordable and covers at least 60 percent of the costs of the benefits (actuarial value) for all full-time employees (or at least 95 percent of them).

However, to ensure employers provide competitive plans to their employees, an employer will be subject to a $3,000 annual penalty if one or more full-time employees purchases coverage through an Exchange because their employersponsored group health plan fails to provide a sufficient level of coverage (60 percent actuarial value) or it is too expensive for the employee and the employee receives a tax credit or cost-sharing reduction toward the cost of their coverage through an Exchange. This is commonly known as the “play” penalty.

large employer status The employer-shared responsibility provisions are applicable to large employers based on the number of full-time employees and full-time equivalents during the preceding calendar year. A special six month transition rule, applicable for 2014 only, allows employers to use any six consecutive-month period in 2013 when determining whether they are a large employer, versus using the full twelve months. continued on next page

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This transition rule gives employers time to make decisions and plan for 2014. For instance, employers could use a period of January 1 through June 30, 2013, to calculate if they are a large employer for 2014, thus giving them time to analyze the results and make decisions. New businesses are considered large employers if they reasonably expect to employ an average of at least 50 full-time employees and full-time equivalents during the current year, rather than the next year.

defining full-time employees and equivalents A full-time employee is a common law employee who has on average at least 30 hours of service per week or 130 hours in a calendar month.

The number of full-time equivalent employees is calculated by dividing the total hours of service of all part-time employees for a month, but not more than 120 hours for any one employee, by 120. This number is added to the number of full-time employees to determine if the grand total is at least 50.

Sole proprietors, partners, 2 percent S-Corp shareholders, and leased employees are not considered employees and are therefore not counted.

However, an employee serving as both an employee and a director for an employer is considered an employee. Related businesses such as a controlled group, affiliated service group, or qualified separate lines of businesses (QSLOBs) are treated as a single employer under the Internal Revenue Code rules, whereas all employees of each entity and their hours of service must be taken into account when determining large employer status.

hourly and salaried employees Employers may use different methods for salaried employees based on different classifications of employees under the Fair Labor Standards Act, as long as the classifications are reasonable and consistently applied. In addition, employers may change methods each calendar year. However, employers are prohibited under the proposed regulations from using the days-worked or weeks-worked equivalency methods if the result would substantially understate an employee’s hours of service so that the employee would not be treated as a full-time employee.

determining full-time status Employers may use the current month-to-month method or the lookback measurement method to determine an employee’s full-time status.

The current month-to-month method may be problematic, because most employers determine employee status at the end of a month. However, employers need to set an employee’s status at the beginning of the month to avoid penalties.

The look-back measurement method is a safe harbor method which involves counting hours of service to determine if an employee has averaged at least 30 hours of service per week. Employers choosing this method must use it for both ongoing and new employees.

This method varies based on whether employees are ongoing or new, and whether new employees are expected to work full-time or are variable or seasonal employees. There are also special rules for employees who take unpaid leave from work or who are rehired after a termination of employment.

seasonal and ongoing employees Through at least 2014, employers are permitted to use a reasonable, good faith interpretation of the term “seasonal employee” for the purposes of determining whether an employer is large. A seasonal worker performs services at certain seasons or periods of the year that that cannot be

conducted throughout the year. For example, retail workers employed exclusively for holiday seasons are considered seasonal employees.

If an employer has more than 50 FTEs for a period of 120 days or less due to seasonal workers, they can exclude the seasonal workers for the purpose of determining whether or not they are a large employer.

An ongoing employee has generally been employed for at least one complete standard measurement period. A variable employee is defined as someone the employer cannot reasonably determine will work an average of at least 30 hours per week during the initial measurement period, due to the employee’s hours being uncertain or variable.

measurement periods An ongoing employee’s full-time status is determined by examining a standard measurement period lasting between three to 12 consecutive calendar months, as determined by the employer. Employers must then calculate whether the employee averaged at least 30 hours of service per week during this period.

If an employee had at least 30 hours of service per week during the standard measurement period, they will be considered a full-time employee for the stability period which has to be at least six calendar months following the measurement period and at least as long as the measurement period.

Employees that did not work full-time during the standard measurement period will also not be considered full-time employees during the stability period. Additionally, employers may opt to use an “administrative period” between the measurement and stability periods to determine which ongoing employees are eligible for coverage and provide time for enrollment. This can last up to 90 days and must overlap with the prior stability period to prevent any gaps in full-time employees’ health care coverage.

Generally, the standard measurement and stability periods selected by the employer must be uniform for all employees. However, employers may apply different measurement, stability, and administrative periods for the following employees: • Each group of collectively bargained employees covered by a separate collective bargaining agreement • Collectively bargained and non-collectively bargained employees • Salaried and hourly employees • Employees whose primary places of employment are in different states • New employees expected to work full time An employer will not be subject to a penalty for not offering coverage to new full-time employees during the first three calendar months of employment. This rule applies if the employee is expected to work full time right away, and the employer sponsors a group health plan and offers coverage on the date of or before the employee’s three month anniversary.

For 2014, a new employee who works at least 30 hours per week may be considered a variable hourly employee if he/she works these hours for a limited amount of time, and the employer cannot determine if the employee will work these hours for the entire initial measurement period. Effective as of Jan. 1, 2015, employers must assume that employees will be employed for the entire initial measurement period. continued on page 14

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It is important for manufacturers to understand the effects of reform for their specific companies.

Feature Story // PrecisionNews

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the affordable care act: determining large employer status for 2014 continued from page 13

new employees expected to work full time An employer will not be subject to a penalty for not offering coverage to new full-time employees during the first three calendar months of employment. This rule applies if the employee is expected to work full time right away, and the employer sponsors a group health plan and offers coverage on the date of or before the employee’s three month anniversary.

For 2014, a new employee who works at least 30 hours per week may be considered a variable hourly employee if he/she works these hours for a limited amount of time, and the employer cannot determine if the employee will work these hours for the entire initial measurement period. Effective as of Jan. 1, 2015, employers must assume that employees will be employed for the entire initial measurement period.

rehired or returning from leave The proposed regulations include guidance for employers on how to classify an employee who earns an hour or more of service after the employee terminates employment (or has a period of absence). If an employee goes at least 26 consecutive weeks without an hour of service and then earns an hour of service, he or she may be treated as a new employee for purposes of determining the employee’s fulltime status. The employer may apply a rule of parity for periods of less than 26 weeks. Under this rule, an employee is treated as a new employee if the period with no credited hours of service is at least four weeks long and is longer than the employee’s period of employment immediately before the period with no credited hours of service.

For an employee who is treated as a continuing employee, the measurement and stability periods that would have applied to the employee had he or she not experienced the break in service would continue to apply upon the employee’s resumption of service.

special unpaid leave The proposed regulations include a method for averaging hours when measurement periods include special unpaid leave — leave under the Family and Medical Leave Act (FMLA) or the Uniformed Services Employment and Reemployment Rights Act (USERRA) and leave for jury duty. This method only applies to those treated as a continuing employee upon resuming work for the employer, and not to an employee who is treated as terminated and rehired.

Under the averaging method, the employer either: • Determines the average hours of service per week for the employee during the measurement period excluding the special unpaid leave period, and uses that average for the entire measurement period; or • Treats employees as credited with hours of service for special unpaid leave at a rate equal to the average weekly rate during the measurement period that was not special unpaid leave.

It is imperative that employers determine their large employer status and the number of full time employees for purposes of making the determination of whether they will continue to offer coverage (play) or drop coverage (pay) in 2014.

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 GROWTH AGENDA: Four Goals for a Manufacturing Resurgence in America Introduction by Jay Timmons, President and CEO, National Association of Manufacturers Manufacturers are ready to power the economy. With the right policies in place, we will transform a difficult and sluggish recovery into an economic resurgence. After all, manufacturing has the highest multiplier effect of any other sector of our economy. Investments in manufacturing multiply across the economy, creating jobs and growth in other sectors.

Simply put, manufacturing makes America strong.

The United States needs a comprehensive plan for economic growth. A bipartisan commitment in Washington to pro-growth policies will make our nation a more competitive place to do business.

To succeed, manufacturers need our elected leaders to choose policies that make this country a better place to invest, a better place to innovate and a better place from which to export. They must choose policies that strengthen our workforce so that it meets the needs of manufacturing in the 21st century.

This strategy is a blueprint for competitiveness that will unleash the economy and manufacturing’s outsized multiplier effect. Importantly, manufacturers’ aspirations—the four goals laid out in the pages that follow—are ones that all Americans who want to maintain our country’s economic advantage can rally around. To advance manufacturers’ cause, we must put policy above politics.

Making America strong: That’s what manufacturers have been doing for more than a century. And with the right policies in place, manufacturers in America will make this country even stronger.

may/june 2013

A NATIONAL ASSOCIATION OF MANUFACTURERS & PrecisionNews SPECIAL FEATURE

Goal #1:

Goal #2:

The United States will be the best place in the world to manufacture and attract foreign direct investment.

Manufacturers in the United States will be the world’s leading innovators.

Manufacturers have an array of attractive options around the world when deciding where to invest, conduct research, build new facilities and create jobs, yet policymakers too often choose policies that put manufacturing in America at a disadvantage. The United States must create a dynamic environment that supports jobs and economic growth.

Create a national tax climate that promotes manufacturing in America and enhances the global competitiveness of manufacturers in the United States. A pro-manufacturing tax policy must acknowledge that a high tax burden makes manufacturers in the United States less competitive.

Embrace an “all-of-the-above” approach to energy production.

Manufacturing accounts for one-third of the energy consumed in the United States. A dynamic and growing economy requires dependable and affordable energy supplies.

Modernize and invest in infrastructure to help manufacturers in the United States more efficiently move people, products and ideas.

Infrastructure in the United States is outdated and resting on the legacy of a previous era—improvements will strengthen our competitiveness and increase our export potential.

Ensure—and independently verify—that the benefits of regulations justify their costs to manufacturers in the United States. While some regulations are necessary, the current regulatory system is out of balance and a significant impediment to competitiveness and economic growth.

Implement common-sense, fair legal reform. Direct tort costs total almost 2 percent of U.S. GDP—among the highest levels in the world—and our system of “jackpot justice” injects damaging risk and uncertainty into the business climate.

Innovation propelled the United States to its global leadership position in manufacturing. But other nations are eager to take our place and are establishing R&D incentives that are far more attractive than those offered by the United States. To maintain its mantle of leadership, the United States must adopt policies that will attract and retain R&D activities and promote and protect manufacturers’ intellectual property (IP).

Provide a strong, permanent and competitive R&D incentive.

A permanent R&D incentive will allow manufacturers to invest and plan ahead—year-to-year incentives create uncertainty.

Support federal research agencies and public- and private-sector research. A continued focus by the federal government on basic R&D expands the knowledge base, spurring private-sector R&D as well as commercial development.

Recognize IP as the basis of America’s innovative economy. The protection of IP rights assures manufacturers that their inventions will be secure as they create jobs and build industries around them.

Develop appropriate general and industry-specific best practices for improved cybersecurity. The federal government should collaborate with the private sector and draw on industry best practices when formulating cybersecurity policy.

Support the growth of a healthy information and communication technology ecosystem. The federal government must promote policies that continue to allow manufacturers to leverage the Internet and other technology tools to grow their business, access global markets and enhance their supply chain without unnecessary regulation. continued on page 18

Reduce health care costs for both patients and providers. Rising health care costs siphon resources away from investing in new technologies and facilities and creating new jobs.

GOAL #2 may/june 2013

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Manufacturers in the United States

A NATIONAL ASSOCIATION OF MANUFACTURERS & PrecisionNews SPECIAL FEATURE

A GROWTH AGENDA: Four Goals for a Manufacturing Resurgence in America continued from page 17

Goal #3:

Goal #4:

The United States will expand access to global markets to enable manufacturers to reach the 95 percent of consumers who live outside our borders.

Manufacturers in the United States will have access to the workforce that the 21st-century economy demands.

Growth in manufacturing today increasingly depends on global customers. The United States must adopt policies that enhance access to new markets and expand existing ones.

Promote a global trade policy that opens international markets, enhances competitiveness and reduces regulatory and tariff barriers. Manufacturers must be able to reach the 95 percent of the world’s consumers living outside the United States to grow their businesses and create jobs.

Reduce trading costs, domestic export barriers and unnecessary red tape. Export control modernization in particular could promote substantial new exports and jobs.

Boost exports through improved export promotion programs and export credit assistance for both small and large manufacturers.

Trade fairs, marketing assistance and Export-Import Bank initiatives allow manufacturers to reach new markets and customers.

Ensure a level playing field for manufacturers by enforcing trade laws and international agreements. The United States should seek to end trade distortions among our competitors by enforcing our own trade laws and the international commitments our trading partners have made.

World-class manufacturing demands world-class talent. Our workforce must be proficient in science, technology, engineering and mathematics (STEM) and possess the skills that manufacturers seek. To remain competitive, the United States must develop a skilled workforce that includes the best talent from inside and outside our country. To attract and retain workers of all skill levels from abroad, policymakers should enact comprehensive immigration reform and address educational deficits to meet manufacturers’ workforce needs.

Address regulations and mandates that undermine employer flexibility and ultimately discourage the hiring of new employees.

Manufacturers and their employees rely on fairness and balance in our labor law system.

Develop a more productive workforce and encourage innovation through education reforms and improvements. More than 600,000 manufacturing jobs go unfilled because workers don’t have the right skills—this skills gap threatens U.S. competitiveness.

Enact comprehensive immigration reform. Improving our immigration system will strengthen the nation’s economic and national security.

Attract the best and brightest to the United States. Attracting and retaining talent will make the United States a more competitive place to manufacture.

Did you know: The R&D credit is a jobs credit.

Seventy percent of credit dollars are used for salaries of high-skilled R&D workers. Some 162,000 new jobs would be created if the credit was strengthened—and even more if it was made permanent.

GOAL #4

ISSUE Trade

ISSUE FOCUS..........................................

Property Rights

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Manufacturers in the United States will have access to the workforce that FOCUS.......................................... the 21st-century economy demands.

Enforcement

U.S. policy should reflect the vital importance of IP rights for U.S. competitiveness. The protection of IP rights secures manufacturers’ ideas and inventions and drives future innovation and directed R&D. By adopting policies that safeguard IP rights, policymakers can create a business climate in which innovators can thrive, creating jobs and building industries around their ideas. A strong IP regime also promotes trade by assuring innovators that their ideas and inventions will be protected. Increase national awareness of the inseparable link between the protection of IP rights and innovation, improved trade performance, sound economic growth and strengthened national security.

t 4VQQPSU QPMJDJFT UIBU DPOUJOVF UP eliminate unnecessary costs, complexity and uncertainty in the U.S. patent system. t 1SPUFDU UIF IFBMUI TBGFUZ BOE XFMGBSF of American consumers by recognizing the harmful effect of counterfeit and pirated products on the public and on our economy; combat international counterfeiting and piracy by ensuring robust enforcement of IP rules.

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World-class manufacturing demands world-class talent. Our workforce mustt be &EVDBUF EFWFMPQJOH OBUJPOT BCPVU UIF importance of enforcing IP rules. to reduce trade barriers to exports of t 4VQQPSU B DPPSEJOBUFE QPMJDZ UIBU in science, technology, engineering and mathematics (STEM) and t possess PrecisionNews manufactured arizonatooling.org may/june 2013 andproficient goods, including through To thrive in the global economy, Market-distorting unfair trade practices 3FEVDF DPTUT BOE JODSFBTF FGmDJFODJFT strengthens the protection of IP rights in establishing global IP protections in all afforded by both domestic laws and negotiations on trade facilitation and the manufacturers need trade policies that by non-market and market economy nations. agreements. the skills that manufacturers seek. To remain competitive,international the United States must expansion of the Information Technology make the United States a better place from countries adversely affect manufacturers t 4USFOHUIFO DPPSEJOBUJPO BOE PWFSTJHIU

18

Cybersecurity The maintenance and protection of our nation’s cyber-infrastructure is critical to manufacturers, as Internet-based threats can disrupt commerce and communication and pose a threat to our national security.

Strengthening cybersecurity requires increased collaboration and coordination between government agencies and the private sector—industry-driven best practices can help guide efforts to formulate broader cybersecurity policy. t 'BDJMJUBUF JOGPSNBUJPO TIBSJOH CFUXFFO UIF private and public sectors without creating an unnecessary regulatory burden. t 4VQQPSU FGGPSUT UP TFDVSF HPWFSONFOU networks, increase the penalties for cybercrime and prioritize cybersecurity research using existing government funding. t &EVDBUF FMFDUFE PGmDJBMT BOE UIF QVCMJD about the high priority manufacturers

@2013 NAM. Used with permission. follow @ShopFloorNAM on the web at www.NAM.org

Issues In Focus Taxes Manufacturers in the United States face a significant disadvantage in the global competition for investment and jobs.

In fact, it is 20 percent more expensive to manufacture in this country compared to our major trading partners, excluding the cost of labor. Taxes drive this cost disadvantage.

Energy Energy is poised to be a significant competitive advantage for manufacturing in the United States. In fact, the United States enjoys a slight advantage on energy costs compared to our major trading partners. The United States can widen this gap and enhance our energy security.

Infrastructure Manufacturers rely on a strong infrastructure to move people, products and ideas. Unfortunately, the nation’s infrastructure is out of date and resting on the legacy of a bygone era. To compete in the 21st-century economy, the United States must invest in and modernize our infrastructure in ways that encourage economic growth, job creation and increased competitiveness.

Property Rights U.S. policy should reflect the vital importance of IP rights for U.S. competitiveness. The protection of IP rights secures manufacturers’ ideas and inventions and drives future innovation and directed R&D. By adopting policies that safeguard IP rights, policymakers can create a business climate in which innovators can thrive, creating jobs and building industries around their ideas.

Cybersecurity The maintenance and protection of our nation’s cyber-infrastructure is critical to manufacturers, as Internet-based threats can disrupt commerce and communication and pose a threat to our national security. Strengthening cybersecurity requires increased collaboration and coordination between government agencies and the private sector—industry-driven best practices can help guide efforts to formulate broader cybersecurity policy.

Trade To thrive in the global economy, manufacturers need trade policies that make the United States a better place from which to export. Manufacturers thrive when they can compete in open markets abroad.

Enforcement Market-distorting and unfair trade practices by non-market and market economy countries adversely affect manufacturers in the United States. The United States should ensure our competitors play by the rules through the vigorous enforcement of international and domestic rules, including trade and investment agreements and domestic trade remedy and IP rules.

Workforce Nearly 12 million men and women work in manufacturing in the United States. This workforce can grow significantly if manufacturers can find workers with the skills needed for the modern manufacturing workplace. Today, 600,000 manufacturing jobs are unfilled because of this skills gap.

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TMA Precsion Tube

623-221-4922

Mark Weathers

Excaliber Precision Machining

623-878-6800

Jacque Cowin

Tram-Tek, Inc.

602-305-8100

Mark Pendergrass

Filconn, Inc.

480-225-3656

Rick Lorenzen

Tri Star Design & Mfg.

480-345-1699

Jeff Hull

Foresight Technologies

480-967-0080

Jeremy Lutringer

Unique Machine & Tool Co.

602-470-1911

Tim Malin

Helm Precision, Ltd.

602-275-2122

Bill Ankrom

Vitron Manufacturing, Inc.

602-548-9661

Jeremy Schaulk

Hi-Tech Machning & Engineering

520-889-8325

Robert L.Wagner

Wagner Engineering, Inc.

480-926-1761

Robert Howell

Howell Precision Sheet Metal

623-582-4776

Denise & Bob Wright

Wright Prototype

623-825-8671

Don Theriault

Industrial Tool Die & Engineering

520-745-8771

Bruce Treichler

Zircon Precision Products

480-967-8688

Jim Carpenter

Kimberly Gear & Spline, Inc.

602-437-3085

Don Kammerzell

K-zell Metals, Iinc.

602-232-5882

Matt Kalina

LAI International, Inc

480-348-5942

Ernest Apodaca

Layke, Inc.

602-272-2654

Michael C. Majercak, Jr.

Majer Precision

480-777-8222

Edward Wenz

MarZee, Inc.

602-269-5801

Arle Rawlings

Mastercraft Mold, Inc.

602-484-4520

Paul Clark

Metal Spinning Solutions, Inc.

480-899-0939

Jeff Meade

Metalcraft

480-967-4889

Joe Tripi

Micropulse West

602-438-9770

Mark Travis

Micro-Tronics, Inc.

602-437-8995

Mark Lashinske

Modern Industries, Inc.

602-267-7248

Phillip LoCascio

National Aviation

480-966-1097

John Anglin

Nelson Engineering

602-273-7114

PrecisionNews

Dante Fierros

Nichols Precision

480-804-0593

THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

Greg Chambers

Noranco Jet Processing

623-869-6749

Rory Robinson

NorthStar Aerospace dba Heligear

602-275-4406

TM

visit: arizonatooling.org

may/june 2013

arizonatooling.org

PrecisionNews

21

PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

MARK YOUR CALENDAR WITH THESE

UPCOMING MEMBER LISTINGS ATMA EVENTS!

MAY MARK SPONSOR YOUR CALENDAR WITH THESE ARIZONA MEMBERS

ASSOCIATE MEMBERS

5/11 Safety Meeting (General Safety Standards) 11:30

UPCOMING ATMA EVENTS! Meeting 11:30-1:00 at Foresight Technologies,

Richard Short

Adams Machinery

480.968.3711

Treat, 2450 W. Mohave, Phoenix480.459.2826 Bank of Arizona Greg Kolton at Phoenix Heat

Greg Whelan

Arizona CNC Equipment

480.615.6353

5/12 Combined Membership, Marketing & Program Jeff Anderson National Bank of Arizona

623.872.2546

John Anderson

ATS Industrial

602.276.7707

Bennet Cromer1301 W. Geneva, Federated TempeInsurance

501.952.9391

Linda Daly

A 2 Z Metalworker

602.412.7696

Jon Gale CliftonLarsonAllen, LLP 11:30 5/11Board Safetyof Meeting (General Safety Standards) 5/17 Directors Meeting 11:30-1:00 at

480.615.2300

Vincent Thelander

Bank of America Merrill Lynch

602.523.2044

2905 S. Bank Potter, Tempe, 85282 Kevin Draper Micro-Tronics, Comerica

602.417.1188

Howie Basuk

Barry Metals

602.484.7186

MeetingDinner 11:30-1:00 at Foresight 5/25 General Meeting 5:00-8:00pm at Phoenix 480.884.4504 Arizona Bank & Technologies, Trust Joe Galvez

Joe Ciancio

Bralco

602.252.1918

Republic Indemnity David Pettycrew 5/17 Board of Directors Meeting 11:30-1:00 at

602.242.4602

JUNE Allen McDougall Wells FargoMarketing & Program Combined Membership, 6/09

480.348.5114

Marc Bissell

CadCam/Geometric

James Burriss

ChemResearch Co., Inc.

602.288.0394

Kerry Vance

Consolidated Resources

623.931.5009

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480.839.9511

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480.775.6462

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602.272.0461

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Gartman Technical Services, Inc.

602.788.8121

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Global SuperAbrasives

413.231.6530

Jackie Bergman

HUB International

602.749.4190

your business lans to profits

480.222.2242

Anna-Lena Seedhill

IFLEX Resource Management

480.429.4508

David Cohen

Industrial Metal Supply

602.454.1500

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Klontech Industrial Sales

480.948.1871

Barry Armstrong

L.A. Specialties

602.269.7612

David Hopkins

CliftonLarsonAllen, LLP

480.615.2300

Bob Von Fleckinger

Leavitt Group

Jeff Trimble

Magnum Precision Machines Makino, Inc.

Chris Porter

Methods West Machines/Tools

Thomas Moore

Moore Tool & Equipment

Glen Zachman

North-South Machinery

Pete Hushek

Phoenix Heat Treating

Scott Sherman

Phoenix Metal Trading

Jim Perlow

Quality Advisory Services

Arlene Helt

Ryerson-Phoenix

Dave Bolt

SBG Capital

Jane Rousculp

Samuel Aerospace Metals

Frank Encinas

Semiray

1301 W.Hilton, Geneva, 2435 TempeS. 47th Street, Phoenix Airport

JUNE Micro-Tronics, 2905 S. Potter, Tempe, 85282 MSC Industrial Tool 480.755.0415 Steve Piotter 6/08 Meeting (General Safety Standards) 5/25Safety General Dinner Meeting 5:00-8:00pm at Phoenix 11:30 Jerry Howell at Airport Titanium Metal Supply, Inc. 602.910.0808 2435 S. 47th Street, LeavittHilton, Group, 919 N. 1st St.,Phoenix Phoenix 6/08Meeting Safety Meeting (GeneralatSafety Standards) 11:30 11:30-1:00 Foresight Technologies, at Leavitt Group, 919 N. 1st St., Phoenix

480.897.4988

6/29 General Dinner2905 Meeting 5:00-8:00pm Micro-Tronics, S. Potter, Tempe, 85282 at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

MANY THANKS MANY THAN

Scottsdale Business Banking Allen McDougall, Sr. Relationship Manager 602.275.1917 480-348-5114 602.256.2092

Star Metal Fluids LLC Top Gun Consulting

602.510.5998

John Drain

Tornquist Machinery Co.

602.470.0334

wellsfargo.com

Greg Burke

TW Metals

602.864.0014

Doug Pratt

Ulbrich Stainless Steel & Spec.

203.234.3464

N.A. All rights reserved. Member FDIC. (894067_08195)

Get Turned-On to the ATMA! Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

may/june 2013

1301 W. Geneva, Tempe

6/09 Combined Membership, Marketing & Program MANY6/21 THANKS Meeting 11:30-1:00 at Foresight11:30-1:00 Technologies,at Board of Directors Meeting 1301 W. Geneva,2905 TempeS. Potter, Tempe, 85282 Micro-Tronics, TO OUR6/21 2013 ATMA VALUED SPONSORS: Board of Directors Meeting 11:30-1:00 at

602.721.0176

David Senkfor

arizonatooling.org

5/12 Combined Membership, Marketing & Program

When you’re ready to build on your achievements, our trusted experts areTO OUR 2011 ATMA 602.431.8300 ready to support your personal and VALUED SPONSORS! 602.228.0347 professional goals. Our business bankers 480.437.2220 live and work in your community and 602.455.8904 know that good relationships make 602.466.2556 us all stronger. With our customized 602.258.7751 tools and services, we can help you 602.257.4660 602.910.1510 grow your enterprise and build a 602.455.3386 legacy of wealth and success.

Russ Kurzawski

PrecisionNews

at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

602.264.0566

David Gundersen

22

MAY

TO OUR 2011 ATM VALUED SPONSOR

Welcome!

YOUR CALENDAR WITH THESE REGULAR MEMBERS NEWMARK AND VALUED SPONSORS!

UPCOMING ATMA EVENTS!

Pure Logic Industries, Inc. Wells Fargo Mr. Michael Hughes Mr. Allen McDougall 1730MAY W. Sunrise Blvd #A102 8601 N. Scottsdale Rd #240 AZ Safety 85298Meeting (General Safety AZ 11:30 85253 Gilbert, Scottsdale, 5/11 Standards) 480.892.9395 480.348.5114 at Phoenix Heat Treat, 2450 W. Mohave, Phoenix MHughes@PureLogicInd.com Allen.McDougall 5/12 Combined Membership, Marketing & Program www.purelogicind.com @wellsfargo.com Meeting 11:30-1:00 at Foresight Technologies, (New Regular Member) 1301 W. Geneva, Tempe www.wellsfargo.com

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

(New ATMA Sponsor)

5/17 Board of Directors Meeting 11:30-1:00 at Comerica Bank Micro-Tronics, 2905 S. Potter, Tempe, 85282 Mr. Kevin Draper 5/25 General Dinner Meeting 5:00-8:00pm at Phoenix 1 North Central, #1000 Airport Hilton, S.TEAM. 47th Street, Phoenix RIGHT TOOLS. THE2435 RIGHT THE RIGHT TIME. THE Phoenix, AZ 85004 arizonatooling.org JUNE 602.417.1188 krdraper@comerica.com 6/08 Safety Meeting (General Safety Standards) 11:30 www.comerica.com at Leavitt Group, 919 N. 1st St., Phoenix

PrecisionNews

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6/09 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

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‘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

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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 MAY/JUNE 2013 “Shakin’ hands & bakin’ ideas”

May

MANY THANKS

Membership/Mktng & Program Mtng > 5/16 @ 4:00pm (Fiesta Inn/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 5/21 @ 4:00pm (MicroTronics) Safety Team Meeting > 5/22 @ 11:30am - 1:00pm (Leavitt) DINNER MEETING > 5/29 @ 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!

June Precision News Articles/Ads Due > 6/10 Membership/Mktng & Program Mtng > 6/13 (Fiesta Inn/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 6/18 @ 4:00pm (MicroTronics) DINNER MEETING > 6/26 @ 5:00-8:00pm (Airport Hilton) 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 register online at arizonatooling.org

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23 arizonatooling.orgarizonatooling.org PrecisionNews /23

ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

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arizonatooling.org25 / 19 PrecisionNews

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 Membership MIKE BROWN Computer Integrated Machining Past President TONY MARTINDALE Martindale Manufacturing

BOARD MEMBERS Education Board Member John Riego de Dios Construction Tech Academy Member at Large Cliff Manzke Manzke Machine, Inc. Chapter Executive 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

Erich Wilms

Diversified Tool & Die

760.598.9100

Alex Fima

Directed Mfg.

512.355.1360

Donovan Weber

Forecast 3D

760.929.9380

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

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

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

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

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.”

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 NTMA - San Diego Chapter 1377 Armorlite Dr., Suite B San Marcos, CA 92069 Phone: 760.419.1393 ntmasandiegochapter.org

26

PrecisionNews

arizonatooling.org

may/june 2013

May 16th - Member Meeting at Kearny Mesa High NIMS Certification Program & New Machine (HAAS)@5:30pm June Board Meeting June 6th @5:30pm - Location to be announced.

Storm Water-CNC Program & Stormwater Business Laws June 20th @5:30pm - Location to be announced.

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.

YOUR NEW TOOL OF THE TRADE. PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISER WANT TO REACH. OUR READERS WANT AN EDGE IN A CONSTANTLY EVOLVING INDUSTRY AND THEY FIND IT IN PRECISION NEWS!

Let your ad be a call to action!

Contact Precision News today for more details at: executivedirector@arizonatooling.org

PrecisionNews

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THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

arizonatooling.org

• 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

MAKE YOUR VOICE HEARD ON CAPITOL HILL!

Contract Manufacturing Purchasing Fair Indianapolis, IN. May 16-17, 2013

For additional information, please visit

2013 National Robitics League Competition Indianapolis, IN. May 17-19, 2013

or contact the NTMA at 800.248.6862

www.metalworkingadvocate.org

Chapter Leadership Summit Indianapolis, IN. May 17-18, 2013 2013 Fall Conference Boston, MA. October 16-19, 2013 may/june 2013

arizonatooling.org

PrecisionNews

27

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 February, 2013 Meeting Sponsor: Ellison Technologies May 16, 2013 – Shamrock Precision June 20, 2013 – Kenney Industries July 2013 – Ranger Game Event

28

PrecisionNews

arizonatooling.org

may/june 2013

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” may/june 2013

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PrecisionNews // FUTURE FOCUS

The New Feudal Society: How to Prosper in the Coming Age of Poverty and Privilege

by SANFORD KAHN

There is an old saying that goes something like this — what goes around comes around. This saying is plausible, but not entirely correct. What goes around does come around, but in a different shape and form. To more fully appreciate this new “feudal society” we will be entering, we must first examine where we have been and the consequences flowing from that time and place. The period from about l995 to 2000 was a very unique interval in our economic/business history. The economic events that occurred in this time period happen at most twice in a century.

This period of time is called a founders economy, and the years l995 to 2000 comprised the first stage of this founders economy. It is a time of fundamental and rapid technological and economic transformation of society. The transformation is permanent, and it seems to defy the laws of economic gravity. The last such period occurred in the l920’s. This resulted from the confluence of the rapid electrification of the U.S. along with the mass introduction of the automobile.

The first stage of a founders economy ends in a bubble and it does pop. When it does, the second stage is called the “blood in the streets” phase. We are in that phase now and it will dictate our new social and economic environment.

The term “blood in the streets” does not necessarily imply actual corporal fighting.

Instead the term means an intense period of business competition. This second stage can easily last 15 to 20 years. It continues until the weak business enterprises are filtered out. The difference now, compared to the previous founders economy, is that not only do you have intense business competition within our national borders but also internationally. The Internet, along with inexpensive communication and transportation costs, has helped to transform the international marketplace. In this second phase, how companies compete and price their goods and services will give rise to the new business serfs and lords — the new feudal society.

From the end of World War II till the late l990’s companies more often than not used the cost-driven model to price their product or service. In this model a company added up all their costs to produce a product or service and then tacked-on a competitive profit margin. This, then, determined the price at which to sell their product or service. For the majority of times it worked.

It is in this second stage of intense business competition that the traditional cost driven model breaks down. Competition is intense because dramatic worldwide increases in productivity have led to too many goods chasing too little demand. Companies now have very little pricing power.

Companies now have to use a price driven model of pricing. This model answers the question: what price will cause my firm’s product or service to clear the market. In other words, what price will give me a competitive advantage. It is usually a lower price than the cost driven price, but with that comes less competition.

Once you determine the price of your product or service with the price driven model,

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you do everything in your power to slash all costs. This includes labor, medical, inventory, material, and any other expense than can be cut. No cost is sacred. In this second phase you have to reduce all expenses to stay competitive.

It is this second phase of the founders economy that will give rise to the new business “lords” and “serfs”. The new lords will be those business people who can quickly discern, adapt to, and exploit the unpredictable movements in the turbulent flow of life. The new lords will be those business people that have as their target the goal of growing the free cash flow of their business. This cash flow represents the means— the wherewithal— for those shrewd business people to take advantage of opportunities and events that present themselves. By so growing the free cash flow of a business not only do you increase its value, but also you provide it with the means to maintain its market share and possibly increase it. On the other hand, the new serfs are those businesses that are mired in debt and illiquidity. If they stay this way, they will travel down the road to extinction.

I direct major emphasis on building free cash flow primarily because you could be the smartest business manager alive, but without the free cash flow (the financial means); it will be difficult to capitalize on opportunities in this second phase. Having an ample free cash flow allows you the opportunity to take business risks and survive the possibility of failure. It also allows you to hire the talent necessary to grow your business and expand your market share.

In the old feudal society (circa 1200 AD), everything was rather constant. If you were born a serf, that is where you stayed. If you were born a lord, that is where you belonged.

In the new feudal society nothing is constant. Through luck, change of management focus, and acquisitions it is very possible that business serfs can become lords. Conversely, if business lords should lose their focus and become complacent in this extremely competitive phase, they could stumble down the path toward serfdom.

Lastly, one must keep in mind that the novel conditions with which businesses now have to deal to remain viable entities in the coming decades will have a seismic impact on the social order and the expectations prevailing among the individuals who make it up. The future belongs to those individuals (lords) that have the intellectual acumen to anticipate and the wherewithal and flexibility to take advantage of developing opportunities. The serfs are maladroit and floundering in debt. It will be difficult for them to seize opportunities.

The second phase of the founders economy will be more turbulent than that which preceded it. But, therein lie the opportunities for those who can and wish to be lords.

Out of turbulence comes the potential for growth.

To paraphrase Mel Brooks - it is good to be a business lord.

SANFORD KAHN is a Business Author and Professional Speaker. For more information on my programs please visit www.businesstrendspeaker.biz

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Shop Floor NEWS FROM THE FRONT LINES

The Heat is On from THE ATMA SAFETY COMMITTEE

Heat is the number one weather-related killer in the United States, resulting in hundreds of fatalities each year. In fact, on average, excessive heat claims more lives each year than floods, lightning, tornadoes and hurricanes combined.

Workers who are exposed to extreme heat or work in hot environments may be at risk of heat stress. Exposure to extreme heat can result in occupational illnesses and injuries.

Heat stress can result in heat stroke, heat exhaustion, heat cramps, or heat rashes.

Heat can also increase the risk of injuries in workers as it may result in sweaty palms, fogged-up safety glasses, and dizziness. Burns may also occur as fyi: a result of accidental contact with Heat stress can hot surfaces or steam. result in heat stroke,

heat exhaustion, heat cramps, or heat rashes.

- OSHA

New products like the Kestrel 4400 Heat Stress Meter are revolutionary in size, cost and capability for those in need of measuring Heat Stress. kestrelmeters.com

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Workers at risk of heat stress include outdoor workers and workers in hot environments such as boiler room workers, factory workers, and others. Workers at greater risk of heat stress include those who are 65 years of age or older, are overweight, have heart disease or high blood pressure, or take medications that may be affected by extreme heat.

Prevention of heat stress in workers is important. Employers should provide training to workers so they understand what heat stress is, how it affects their health and safety, and how it can be prevented.

Heat Stroke Heat stroke is the most serious heat-related disorder. It occurs when the body becomes unable to control its temperature: the body's temperature rises rapidly, the sweating mechanism fails, and the body is unable to cool down. When heat stroke occurs, the

may/june 2013

body temperature can rise to 106 degrees Fahrenheit or higher within 10 to 15 minutes. Heat stroke can cause death or permanent disability if emergency treatment is not given.

Heat Exhaustion Heat exhaustion is the body's response to an excessive loss of the water and salt, usually through excessive sweating.

Workers most prone to heat exhaustion are those that are elderly, have high blood pressure, and those working in a hot environment.

Heat Cramps Heat cramps usually affect workers who sweat a lot during strenuous activity. This sweating depletes the body's salt and moisture levels. Low salt levels in muscles causes painful cramps. Heat cramps may also be a symptom of heat exhaustion How do I know if it's too hot?

• The temperature rises • Humidity increases • The sun gets stronger • There is no air movement • No controls are in place to reduce the impacts of equipment that radiates heat • Protective clothing or gear is worn • Work is too strenuous

Learn more at: www.osha.gov/SLTC/heatstress/index.html www.cdc.gov/niosh/topics/heatstress/ www.nws.noaa.gov/om/heat/index.shtml

ARIZONA • CALIFORNIA • COLORADO • TEXAS • UTAH

‘SHAKE & BAKE’ AT THE NTMA SOUTHWESTERN REGIONAL CONFERENCE! SAVE THE DATE: AUGUST 9 -11, 2013 HYATT REGENCY DOWNTOWN PHOENIX MEMBER REGISTRATION: MAY 1 - JUNE 30, 2013 OPEN REGISTRATION: JULY 1 - JULY 27, 2013

“Shakin’ hands & bakin’ ideas” REGISTER ONLINE AT ARIZONATOOLING.ORG

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 Registration fee of $325 per person. Daily costs available.

For details, please contact: executivedirector@arizonatooling.org 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

THE ARIZONA TOOLING AND MACHINING ASSOCIATION

FOCUSED ON THE FUTURE:

MANUFACTURING IN ARIZONA AND PROVIDING THE CAPABILITIES YOU NEED TODAY!

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THE STATE OF ARIZONA has a broad and capable industrial base committed to providing low-cost manufacturing to OEMs

and Tier Ones around the world. Our agile and entrepreneurial small shops make Arizona’s high-tech manufacturing supply base one of the world’s most capable and cost-effective for machined and fabricated components. Our industry supplies the necessary precision tooling and machining for such vital industries as defense, automotive, aerospace, medical, appliance, business machines, electronics, agricultural implements, ordinance, transportation, environmental, construction equipment, nuclear and many more.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Arizona Tooling & Machining Association

ATMA PRECISION

Contact the Arizona Tooling and Machining Association and discover why doing business in Arizona will give your company the Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752 executivedirector@arizonatooling.org

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