THIS ISSUE: Why Join the NTMA? / A Rough Start to the Spring / A Time for Reflection and Planning
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The Official Tooling and Machining Magazine of the NTMA Southwest Region
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Inside: GLOBAL ECONOMIC REPORT FOR APRIL 2015
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MAY/ JUNE 2015 VOLUME 5 • ISSUE 3
Contents 10 14
Features
Departments
GLOBAL ECONOMIC REPORT FOR APRIL 2015
03 President’s Letter 04 Policy Matters
The global economic environment remains challenged, even as it continues to experience modest growth overall. Despite the observed the highest production levels since August, the overall pace of expansion has clearly eased over the past few months.
21 NTMA Initiatives 22 Websites that Work 22 Arizona Chapter Info 27 NTMA Membership
TOP 10 BUSINESS SUCCESSION PLANNING ROADBLOCKS
28 Feature Focus Cover photo: Sandvik Coromant
(AND HOW TO AVOID THEM) Many business owners expect to someday pass on their pride and joy, most likely to their children, but possibly to another family member, an employee, or an outside buyer. This is a common strategy to fund the owner’s retirement and carry his or her creation down through the generations.
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 Premier NTMA SW Regional Magazine EXECUTIVE DIRECTOR & EDITOR Chris Mignella
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CONTRIBUTING WRITERS David Lair, Michael D. McConnell, Chad Moutray, Omar S. Nashashibi, Mike Rakowski 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 ©2015 by ATMA. All rights reserved.
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First Word PRESIDENT’S LETTER
Hello, P.N. Readers! . . .. ..
Spring is upon us with summer just around the corner. Many of us are looking forward to vacations and time with families. 2015 is trucking by with already nearly two quarters behind us! I hope each of you are having successful years. Once again as you’re approaching mid-year it’s time for reflection and planning. What strategies have been working, what needs are you trying to address, what does the second half of your year look like? It is never too late to build on success and re-address challenges. In addition to business planning check your calendars for association events. Yes, the other three seasons typically have more events and gatherings to offer but the summer has a few options to consider. These association events offer knowledge and networking which can contribute to and supplement your individual efforts. Check out the NTMA website for upcoming items. Also be checking your mail for the latest brochure on the Southwest Regional Conference, July 31 – August 2. The next brochure has the full descriptions of the breakout sessions and our keynote speakers. The SWRC has shaped up nicely. We’re looking forward to seeing you later in the summer. Don’t wait – register now! Now for a sad note. Chris Mignella, the ATMA’s Executive Director has tendered her resignation. She and husband Dale are moving out of state to follow a career advancement for him. This is a wonderful opportunity for both of them and we wish them the very best! Chris has been an outstanding Executive Director for the ATMA. Her contributions to our association have helped make it a continuing success. She will be sorely missed - but not just yet! Although Chris has moving plans and such ahead of her this summer she is sticking around to complete the work begun on the Southwest Regional Conference and will work with us to make the event another success! She will be in attendance that weekend so for those attended you can personally bid her farewell and good wishes.
DAVID LAIR Vice President, Dynamic Machine & Fabrication Corp. and President, ATMA
After August she’ll be out of state but not out of touch. We expect to hear from her regularly and perhaps see her too as she visits family and friends in Arizona. Enjoy your summer. I wish all of you continuing success in 2015!
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Policy Matters BECOME A VOICE FOR CHANGE
Washington Update: A Rough Start to the Spring by OMAR S. NASHASHIBI
Spring is supposed to bring with it sunshine, blooming flowers, and baseball. However, policymakers in Washington had more than just cherry blossoms on their minds this April, hitting manufacturers with EPA regulations, Tax Day, and a new NLRB rule taking effect. While nothing can make us long for the cold days of winter, many people I speak with would just rather Congress and regulators hibernate year round. Our lobbying firm arranged for a One Voice manufacturer to testify before the U.S. Congress Joint Economic Committee about the impact of tax policy on small businesses. His message could not have been clearer, “It feels as if people in Washington are so insulated from the real world they do not realize their inaction, as much as their action, has significant consequences. It is very difficult to plan for the future when you don’t even know the rules for today.” While this testimony addressed tax reform, one could apply those words to almost every facet of government. The National Tooling and Machining Association, together with the Precision Metalforming Association, marched on Washington in April, sending manufacturers to the nation’s capital to meet with
lawmakers in both parties. They sent a clear message that we need a partner in Washington that encourages manufacturing in America. One Voice members visited over 125 Congressional offices to discuss the importance of tax reform, recruiting qualified employees, and addressing ineffective and burdensome regulations. The meetings could not have come at a better time. Tax reform was fresh on everyone’s mind as April 15th passed and Congress begins making another attempt to update the Internal Revenue Code. In addition to the hearing at which One Voice testified, another member also participated in a call with his U.S. Senator serving on a key tax reform working group. The Senate Finance Committee created these informal groups to explore areas where Congress may agree on reform. It is increasingly clear that any action will not involve lowering the individual rates, however, lawmakers are exploring how to include pass-through companies in business tax reform. Eighty-one percent of manufacturers are structured as pass-throughs, many of which are paying taxes at the much higher individual tax rate, which can exceed 44%
fyi: Manufacturers and businesses across the country are alarmed by the increased activity of the U.S. EPA in the past few months. + Photo: Photo:NTMA NTMA
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when factoring in surcharges. The Administration and some on Capitol Hill would prefer to focus only on lowering the C-Corporation income rate from 35% to 28% or as low as 25%. Unfortunately, this C-Corporation only reform would leave behind eight in ten manufacturers, most small and medium-sized family-owned businesses. In addition to comprehensive reform for all manufacturers, One Voice members pressed their Senators and Representatives to make permanent the tax provisions Congress allowed to expire such as the R&D Credit, Bonus Depreciation, and Section 179 Equipment Expensing. Manufacturers and businesses across the country are alarmed by the increased activity of the U.S. EPA in the past few months. Industry groups submitted formal comments opposing the Administration’s efforts to lower the levels of permissible ground level ozone. The rule would reduce GDP by $140 billion annually and cost over $1 trillion in compliance costs over the next decade by forcing a reduction in emissions from factories, buildings, vehicles, even livestock. Slated to take effect starting in 2017, any manufacturer located in an area exceeding acceptable ozone levels could face restrictions on their facility expansion and machine acquisitions. continued on page 06
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Policy Matters
Washington Update: A Rough Start to the Spring continued from page 04
Meanwhile, in the first week of April, the EPA formally sent to the White House for final review a lesser-known rule known as “Waters of the U.S.” The proposal will expand the federal government’s reach over the nation’s waterways from 3.5 million miles to over 8 million miles of rivers, streams, and ditches. This affects stormwater retention ponds, fire ponds, and on-site impoundments, leading to point source discharge and other permit requirements, causing manufacturers to pay costly permitting costs – where the median price range comes in at $155,000. Capping off April, one of the most controversial workplace changes in decades took effect. Unions and their supporters in Washington finally succeeded in subjecting
employees to Ambush Elections. Under the new rule, starting on April 14, employees must hold an election for whether join a union in as little as ten days, down from an average of fifty-six prior to the rule taking effect. In a greater violation of employee rights, the National Labor Relations Board is requiring that employers provide unions with the personal email and phone numbers of their workers ahead of the vote. In addition, the Ambush Election rule removes the employers right to protest the organizing effort until after the vote takes place. For the past five years, NTMA and its industry partners have successfully defeated efforts to implement the rule and are continuing to seek solutions in the courts. While this does not paint a rosy picture as
spring turns to summer, it is important that manufacturers continue to apply pressure by coming to Washington and reminding policymakers their actions, and inactions, have consequences. Just imagine how much worse the situation would become were it not for those individuals who stand up for manufacturing in America. While we can’t win them all, one thing is for certain, if you’re not at the table, you’re on the menu, and the federal government isn’t hibernating anytime soon. 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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GLOBAL MANUFACTURING ECONOMIC UPDATE FOR APRIL 2015 REPORT BY CHAD MOUTRAY
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The global economic environment remains challenged, even as it continues to experience modest growth overall. The J.P. Morgan Global Manufacturing PMI, for instance, observed the highest production levels since August. Yet, the overall pace of expansion has clearly eased over the past few months. continued on page 12
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GLOBAL MANUFACTURING ECONOMIC UPDATE FOR APRIL 2015 continued from page 11
These Along those lines, manufacturers in half of the top 10 markets for goods manufactured in the United States reported declining levels of activity in March, up from just two countries in February. Three Asian economies shifted into contraction territory for the month: China, Hong Kong and South Korea. In addition, Brazil and Canada remained challenged, with the latter struggling on lower crude oil prices. Manufacturing in the emerging markets also stagnated in March, with weaknesses in a number of nations counteracting progress in others. In this context, the U.S. economy remains a bright spot in the world despite significant headwinds that dampened activity in the early months of 2015. Manufacturing production has been soft over the past four months, but edged marginally higher in March, boosted by strong automotive output. Business leaders tend to be more upbeat about the coming months, and the Markit U.S. Manufacturing PMI rose to its highest level since October. I continue to forecast roughly 2.8 percent growth in real GDP for 2015, even as first quarter growth will be very soft on the before-mentioned headwinds. Yet, a healthier economy (and differing monetary policy actions) also comes with a cost—a strengthened U.S. dollar. Measured against a broad range of currencies, the U.S. dollar has appreciated more than 22 percent over the past nine months. Already, the data suggest that the exchange rate has begun to dampen the demand for exports orders. While the U.S. trade deficit narrowed to its lowest level since October 2009, much of that was the result of a weaker global economy and reduced petroleum flows. Indeed, crude oil imports hit their slowest pace since February 1994. Year-to-date manufactured goods exports this year have been lower than at the same point last year. (Granted, it is just two months so far.) There are a few regional highlights of note. First, the Chinese economy continues to decelerate. Real GDP rose 7.0 percent year-over-year in the first quarter, down from 7.3 percent growth in the fourth quarter. Moreover, industrial production, retail sales and fixed asset investments have each slowed materially in the first quarter. These data points are likely to lead the Chinese government to pursue new stimulative measures. Second, Canadian manufacturers have reported weaker conditions in the past two months due to energy markets, particularly in 12
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Alberta and British Columbia. In January, manufacturing output fell 0.7 percent. The Canadian unemployment rate held steady at 6.8 percent in March, but the manufacturing sector had 2,400 fewer workers for the month. In contrast to what we see in Canada and China, European manufacturers have reported modest progress of late. The Markit Eurozone Manufacturing PMI increased to its highest level since May 2014 on notable gains in output, new orders, exports and employment. Moreover, industrial production rebounded in February in the Eurozone, and economic sentiment marginally improved in its most recent survey. Nonetheless, other data highlight continuing challenges. The unemployment rate ticked up slightly to 11.3 percent. Many observers continue to worry about deflation, and annual inflation declined 0.1 percent in March. As a result, the European Central Bank is spending 1 trillion euros over the next 18 months to spur greater economic growth as part of its quantitative easing program. The resistance felt by the global economy, from the strong dollar to continued weak demand, accentuate the need to drive forward key trade policies and agreements that will help make manufacturers in the United States more competitive. Trade Promotion Authority (TPA) legislation was introduced this week on a bicameral and bipartisan basis, as was new Miscellaneous Tariff Bill (MTB) process legislation and an extension of U.S. preference programs. Movement is expected as well on other key pieces of trade legislation. Congress continued to debate the reauthorization of the Export-Import (Ex-Im) Bank, with bills introduced in both the House and Senate. Both the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) negotiations are ongoing, with the TPP expected to conclude as early as this summer. Issues related to Cuba and Iran are also under discussion.
GLOBAL ECONOMIC AND TRADE TRENDS DESPITE MODEST GROWTH OVERALL, GLOBAL MANUFACTURING WAS VERY SOFT IN MARCH. The J.P. Morgan Global Manufacturing PMI dipped marginally, down from 51.9 in February to 51.8 in March. This index has changed little over the past five months, averaging 51.8 since October, and slightly eased from the average of 52.3 for 2014 as a whole. In February, the pace of growth for new orders (down
from 52.3 to 52.2), exports (down from 50.9 to 50.8) and employment (down from 51.0 to 50.7) each decreased a little. On the positive side, the production index (up from 53.2 to 53.4) increased to its highest level since August. Looking at the top 10 markets for goods manufactured in the United States, half had expanding levels of manufacturing activity in March, down from eight in February. Manufacturers in three Asian countries reported activity levels shifting from positive growth in February to declines in March. These included China (down from 50.7 to 49.6), Hong Kong (down from 50.7 to 49.6) and South Korea (down from 51.1 to 49.2). Moreover, Brazil (down from 49.6 to 46.2) and Canada (up from 48.7 to 48.9) continued to contract. Japan (down from 51.6 to 50.3) also slowed to a near standstill, with new orders falling for the first time in 10 months. In contrast to these markets, the top markets in Europe each recorded some modest gains for the month, including Germany (up from 51.1 to 52.8), the Netherlands (up from 52.2 to 52.5) and the United Kingdom (up from 54.1 to 54.4). Meanwhile, our second-largest trading partner, Mexico (down from 54.4 to 53.8), eased slightly but continued to expand at a decent pace.
THE U.S. ECONOMY, WHICH BEGAN 2015 WITH A NUMBER OF HEADWINDS, REMAINS A BRIGHT SPOT IN THE WORLD. The Markit U.S. Manufacturing PMI increased from 55.1 to 55.7, its highest level since October. As such, the Markit data reflect a rebound in sentiment in March after some easing in recent months. New orders (up from 55.8 to 57.3) and output (up from 57.3 to 58.8) expanded rather strongly in March, with modest growth in hiring (up from 52.8 to 53.8). Exports (down from 51.7 to 50.0) stagnated on weaknesses abroad and a stronger U.S. dollar. Still, it is worth noting that the competing survey from the Institute for Supply Management continues to show challenges. In addition, other economic indicators also reflect less-thandesired levels of activity since November in the U.S. market, even as manufacturers continue to have a more positive outlook moving forward. What matters most has been the health of the U.S. economy relative to its foreign counterparts. As other nations struggle, this negatively impacts our ability to sell products and services to them. Monetary policy also matters, with the Federal Reserve likely to begin increasing short-term rates later this year. As a result, the U.S. dollar has continued to strengthen relative to other currencies. The trade-weighted U.S. dollar index against major currencies from the Federal Reserve has risen from 75.6968 on July 1 to 92.5394 on April 17, an increase of 22.2 percent. Along those lines, the U.S. dollar peaked in 2014 at $1.3924 for each euro. On April 16, it closed at $1.0768 to the euro, with some expectations that it will move to parity soon for the first time since November 2002.
U.S. TRADE DEFICIT NARROWED IN FEBRUARY TO ITS LOWEST LEVEL SINCE OCTOBER 2009. The trade deficit declined from $42.68 billion in January to $35.44 billion in February. This sharp decline stemmed largely from a drop in goods imports from $191.07 billion to $180.81 billion, more than outstripping the decrease in goods exports from $128.54 billion to $125.64 billion. The trade surplus in the service sector changed little, down from $19.86 billion to $19.73 billion. Much of the decrease in the trade deficit could be attributed to petroleum flows. The petroleum trade deficit dropped from $10.69 billion to $8.07 billion, with petroleum imports declining from $19.44 billion to $16.35 billion. Indeed, the United States imported just 192.05 million barrels of crude oil in February, down from 222.78 million in January and its slowest pace since February 1994. To put this figure in perspective, the petroleum trade deficit was $19.61 billion in February 2014. In addition, the unit price for crude oil ($49.53 per barrel) hit its lowest point since April 2009. Of course, the data also reflect a weaker global environment, with the nonpetroleum trade deficit also lower, down from $50.83 billion to $45.99 billion. Along those lines, goods exports data were mostly lower. Nonautomotive capital goods (down $1.66 billion), industrial supplies and materials (down $1.41 billion), automotive vehicles and parts (down $1.09 billion) and foods, feeds and beverages (down $165 million) experienced reduced goods exports in February. Consumer goods (up $1.31 billion) marks the one bright spot. Meanwhile, goods imports also dropped significantly, as noted above. Industrial supplies and materials (down $4.35 billion), nonautomotive capital goods (down $2.60 billion), automotive vehicles and parts (down $1.70 billion), consumer goods (down $1.45 billion) and food, feeds and beverages (down $319 million) all contracted. Crude oil and petroleum products accounted for roughly $3 billion of the industrial supplies and materials figure. The data suggest that the stronger U.S. dollar, sluggish growth overseas and reduced energy prices have negatively impacted trade. Indeed, these headwinds have dampened demand for manufactured goods exports. Moving forward, policymakers can help by pursuing opportunities that will open up new markets, including passing TPA and enacting trade agreements in Asia and Europe. Moreover, the Ex-Im Bank needs to be reauthorized long term, ending financial uncertainty for manufacturers and their customers.
CHAD MOUTRAY is Chief Economist for the National Association of Manufacturers - Learn more at: http://www.nam.org
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STORY BY MICHAEL D. McCONNELL
TOP 10 BUSINESS SUCCESSION
PLANNING ROADBLOCKS (and How to Avoid Them)
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Many business owners expect to someday pass on their pride and joy, most likely to their children, but possibly to another family member, an employee, or an outside buyer. This change in ownership is a common strategy to fund the owner’s retirement and carry his or her creation down through the generations.
But every business owner faces roadblocks that threaten to thwart his or her dream. Whether you or a family member owns a business, or you are in line to become an owner, here is a checklist of hazards you’ll want to avoid.
1. Waiting too long to start planning Many business owners leave succession planning until the last moment — if they plan at all. Yet an ideal succession plan requires laying the groundwork over many years. Some experts recommend planning your exit strategy from the day you start the business. How you want to leave the business tomorrow strongly influences how you structure and operate the business today.
2. Assuming a family member will take over the business While many children want to eventually take over the family business, not all do. Perhaps your child really wants to be a school teacher or minister or doctor instead of the owner of a small factory. It’s critical to talk to your children about what they want for themselves. Encourage them to work in the business, but don’t pressure them. It’s not fair to them, and it will probably mean trouble for the business if you try to shove them into a role they don’t want. You’ll want to know every family member’s desires as soon as practical so you can pursue other avenues if necessary, such as selling to a valued employee or outside buyer.
3. Dividing the business equally among heirs Equal ownership among heirs is usually a recipe for disaster because different skills and different visions inevitably lead to conflicts. Ultimately, one person needs to run the company. That’s why it’s so important to plan well in advance, to see who among your heirs has the talent, genuine desire, and requisite skills to run the business. If a certain heir doesn’t want to be involved in the business, devise a way to gift that person other assets, or perhaps nonvoting shares in the business (though this, too, can lead to conflicts).
4. Waiting too long to give real authority to the heirs Another common roadblock is waiting too long to give genuine responsibility and authority to a potential heir. Many owners never give it up until the day they retire — only to learn painfully that the child isn’t up to the task. Involve the person in your decisions and let him or her make real decisions. Let the future owner build relationships with vendors, employees, and customers. After all, you made mistakes when you were starting and growing the business. Let the next generation make mistakes and learn from them, just like you did. continued on page 16
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Feature Story //
THERE ARE NO SHORT CUTS TO A SUCCESSFUL BUSINESS SUCCESSION PLAN.
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TOP 10 BUSINESS SUCCESSION PLANNING ROADBLOCKS 5. Trusting your successor This goes along with the failure to give your heir genuine authority. While you don’t want to trust someone blindly just because that person is family, don’t be so suspicious that you’re constantly peering over his or her shoulder. This creates an atmosphere of distrust. Whether you are working with a family member or an outside party, there is always a level of risk in leadership transition. An advisory (nonvoting) board is generally a productive way to establish a framework for communication and accountability without creating mistrust between generations.
6. Not having your potential successor(s) work for another business It is sometimes a good idea to encourage an heir to work a while for someone else before committing to the family business. This can be valuable training and can provide a clearer sense of whether that person ultimately wants to run the show.
7. Being secretive about your plans Business owners frequently play their succession plans close to their chest. Perhaps they’re worried about stirring up family conflicts or they just don’t like to talk about the family money. This is a disservice to your heirs and potentially a disaster for the company. The sooner you can reveal your plans, the sooner everyone can get on board. It also gives you time to modify the plan, if necessary. Keep all parties informed, perhaps through periodic family meetings
8. Dreading your retirement years Retirement can be difficult for an entrepreneur because the business is often the all-consuming center of the owner’s life and personal identity. Without a clear sense of what you want to do in retirement, you will almost inevitably drift back to the family business, frequently meddling in how it’s being run — often to the detriment of the business and family relations.
9. Planning on your own Business succession planning is complicated (we haven’t even discussed tax issues here) and fraught with landmines. Outside
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(and How to Avoid Them)
advice can be invaluable, particularly from someone who can lead family meetings and ease conflicts with knowledge, experience, and an objective perspective.
10. Avoiding the journey and looking for a cookie cutter process There are no short cuts to a successful business succession plan. It is more like a journey than a destination, and like many journeys in life, it can be fun and fruitful for all who go with you. From a distance, every family-owned business may look the same, but like snowflakes, no two are really alike when you look at them closely. That’s why it’s so important to create a customized succession plan that addresses your unique needs.
How we can help We can provide individuals and business owners with valuable insights that address specific business and personal goals, reduce anxiety, and provide financial peace of mind. Ultimately, you are responsible for the changes your business will go through when you are no longer involved. But you don’t have to face the transition alone. No matter where you are in the process, we can help you create a seamless plan that satisfies key stakeholders, keeps the business thriving, and preserves your legacy.
MICHAEL D. McCONNELL, CPA, CFP®, Partner, CliftonLarsonAllen Wealth Advisors, LLC, for CliftonLarsonAllen. Please contact Michael at 612.376.4643 or via email at mike.mcconnell@CLAconnect.com with any questions. To learn more about CliftonLarsonAllen, visit www.CLAconnect.com/privateclient.
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ASK ABOUT SPECIAL RATES FOR NTMA MEMBERS!
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PrecisionNews // NTMA INITIATIVES
How Can NTMA Help You Grow Your Business?
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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.
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• 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
Get Turned-On to the ATMA! Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org
PUSH OUR BUTTONS ...AND ACHIEVE YOUR BUSINESS SUCCESS THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.
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WEBSITES THAT WORK FOR YOU
ATMA PRECISION
2015 ATMA BOARD OF DIRECTORS
Arizona Chapter Website arizonatooling.org Arizona Commerce Authority -Job Training Grant Application azcommerce.com/workforce
President DAVID LAIR Dynamic Machine & Fabricating
Arizona Department of Education azed.gov
Vice President JOSEPH KOENIG Exactitude, LLC
Arizona Manufacturers Council azchamber.com/amc
Executive Director CHRIS MIGNELLA
Arizona Manufacturing Apprentice Program www.azpmap.org AMP - Arizona Manufacturing Partners www.AMParizona.com
Secretary DUSTIN WHALEY Resonant Solutions
Arizona State University Mechanical & Manufacturing Engineering Technology poly.asu.edu/technology/mmet/ Arizona Technology Council AZtechcouncil.org
EVIT (East Valley Institute of Technology) evit.com
Greater Phoenix Chamber of Commerce phoenixchamber.com Manufacturing Extension Partnership azcommerce/MEP
Jeremy Shalk HiTech Machining & Engineering
Bruce Treicher Zircon Precision Associate Member Liaison David Senkfor TopGun Consulting ATMA Ambassador Maxine Jones mjones14@cox.net
Maricopa Community Colleges maricopa.edu Maricopa Workforce Connection maricopaworkforceconnection.com Mesa Community College mc.maricopa.edu National Institute for Metalworking Standards nims-skills.org National Robotics League NRL.org
ATMA Ambassador Dante Fierros Nichols Precision
Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752
NTMA - National Tooling & Machining Association ntma.org National Association of Manufacturers NAM.org
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One Voice Advocacy metalworkingadvocate.org
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Norela Harrington Bent River
Gary Watkins MarZee
GateWay Community College gatewaycc.edu
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BOARD MEMBERS Kevin Beach R&D Specialty Manco
City of Phoenix – Community & Economic Development Program phoenix.gov/ECONDEV/index.html
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Treasurer ZACH WILSTERMAN Profile Tool & Engineering
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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION
MEMBER LISTINGS REGULAR MEMBERS David Wright
Accuwright Industries
480-892-9595
James Costello
Sanair Products
480-218-0918
Rob Markson
Action Machine
692-233-0883
Erik Niemira
Sierra Precision Products, LLC
602-481-9582
Michael Holmes
AeroDesign & Manufacturing
602-437-8080
Mark Willmering
Sonic Aerospace, Inc.
480-777-1789
Chuck Eriksen
Allied Tool & Die Company, LLC
602-276-2439
Jeff Gaffney
Southwest Swiss Precision
602-438-4670
Charles A. Van Horssen
Axian Technology, Inc.
623-580-0800
Steven Yeary
Southwest Turbine, Inc.
602-278-7442
Rex Dugdale
AZ Industries for the Blind
602-269-5131
Mike Gudin
Southwest Water Jet
480-306-7748
Paul Bowman
B3 Precision, LLC
480-250-3366
Dennis Miller
Summit Precision, Inc.
602-268-3550
Bill Boat
B&B Fabrication & Machine
602-684-0393
Scott Higginbotham
Sun Grinding LLC
602-238-9595
Kevin Burbas
B&B Tool, Inc.
520-397-0436
Craig Berland
Systems 3, Inc.
480-894-2581
Jeff Buntin
Barnes Aerospace - Apex Mfg. Div.
602-305-8080
Jacque Cowin
Tram-Tek, Inc.
602-305-8100
Norela Harrington
Bent River Machine, Inc.
928-634-7568
Rick Lorenzen
Tri Star Design & Mfg.
480-345-1699
Mark Clawson
C & C Precision Machining
480-632-8545
Jeremy Lutringer
Unique Machine & Tool Co.
602-470-1911
Joe Cassavant, Jr.
Cassavant Machining
602-437-4005
Bill Ankrom
Vitron Manufacturing, Inc.
602-548-9661
David Bardin
Chips, Inc.
602-233-1335
Robert L.Wagner
Wagner Engineering, Inc.
480-926-1761
Mark Musgrove
CJ Manufacturing
480-517-0233
Todd Kuhn
West Pharmaceutical Services
480-281-4500
Ron Gilmore
Continental Precision, Inc.
602-278-4725
Bruce Treichler
Zircon Precision
480-967-8688
Allen Kiesel
Creative Precision West
623-587-9400
David Lair
Dynamic Machine & Fabricating
602-437-0339
Mike Hallford
Empire Precision Machining
602-622-4580
Joseph J. Koenig
Exactitude, LLC
602-316-6957
Mark Weathers
Excaliber Precision Machining
623-878-6800
Arizona Precision Industrial
John Raycraft
Jeff Hull
Foresight Technologies
480-967-0080
MicroTronics
Mark Travis
602-437-8995
Tim Malin
Helm Precision, Ltd.
602-275-2122
Performance Grind & Manufacturing
Joe Hajda
480-967-5354 480-632-9414
MANUFACTURING ADVOCATES 480-785-7474
Jeremy Schalk
Hi-Tech Machning & Engineering
520-889-8325
Arcas Machine
Denny Arcas
Don Theriault
Industrial Tool Die & Engineering
520-745-8771
Critical Cut, LLC
Frank Froncillo
480-785-1316
Jim Carpenter
Kimberly Gear & Spline, Inc.
602-437-3085
A&M Manufacturing
Steve Barton
602-278-6380
Don Kammerzell
K-zell Metals, Iinc.
602-232-5882
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
Jeff Meade
Metalcraft
480-967-4889
Joe Tripi
Micropulse West
602-438-9770
Lyle Rusanowski
MMI Precision Technology
480-897-7100
Mark Lashinske
Modern Industries, Inc.
602-267-7248
John Anglin
Nelson Engineering
602-273-7114
Tom Osborn
Osborn Products, Inc.
623-587-0335
Ray Chu
Phoenix Analysis & Design Tech.
480-813-4884
Michael & Laura Cree
Phoenix Custom Lasering
602-996-1402
Steve Macias
Pivot Manufacturing
602-306-2923
James Buchanan
Powill Manufacturing & Eng, Inc.
623-780-4100
Roy Stenger
Precision Aerospace
602-352-8658
Tony Costabile
Precision Die & Stamping, Inc.
480-967-2038
Michael Dailey
Prescott Aerospace, Inc.
928-772-7605
Tyler Crouse
Pro Precision
602-353-0022
PrecisionNews
Zach Wilsterman
Profile Tool & Engineering
480-894-1008
THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.
Michael Hughes
Pure Logic Industries, Inc.
480-892-9395
John Bloom
R & D Specialty/Manco
602-278-7700
Dustin Whaley
Resonant Solutions
602-288-6740
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ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23
PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION
MEMBER LISTINGS MARK YOUR CALENDAR WITH THESE
ASSOCIATE MEMBERS
ARIZONA SPONSOR MEMBERS
UPCOMING ATMA EVENTS!
Richard Short
Adams Machinery
480.968.3711
Tim Nichols
Arizona Bank & Trust
480.731.7354
Greg Whelan
Arizona CNC Equipment
480.615.6353
Ty Miller
Clifton Larson Allen
480.615.2320
Linda Daly
A 2 Z Metalworker
602.412.7696
Kevin Draper
Comerica Bank
602.417.1188
Howie Basuk
Barry Metals
602.484.7186
Michael Cox
Joe Ciancio
Bralco
602.252.1918
MAY Federated Insurance 817.545.1500 5/11 Safety Meeting (General Safety Standards) 11:30 Steve Piotter at Phoenix Heat MSC Industrial Tool Treat, 2450 W. Mohave, Phoenix480.755.0415
Marc Bissell
CadCam/Geometric
480.222.2242
National Bank of Arizona Mike Hasenkamp 5/12 Combined Membership, Marketing & Program
623.872.2540
James Burriss
ChemResearch Co., Inc.
602.288.0394
atIndemnity Foresight Technologies, Meeting 11:30-1:00 Republic David Pettycrew
602.242.4602
Kerry Vance
Consolidated Resources
623.931.5009
Lou Gallo
DDi - Solidworks
602.241.0900
Steve Warner
EMJ Metals
602.272.0461
Mickey Gartman
Gartman Technical Services, Inc.
602.788.8121
Jackie Bergman
HUB International
602.749.4190
David Cohen
Industrial Metal Supply
602.454.1500
Tim Kloenne
Klontech Industrial Sales
480.948.1871
Jeff Trimble
Magnum Precision Machines
602.431.8300
Jim Algers
Makino, Inc.
602.228.0347
Thomas Moore
Moore Tool & Equipment
602.455.8904
Bob VonFleckinger
NFP Property & Casualty
480.458.6052
Glen Zachman
North-South Machinery
602.466.2556
Pete Hushek
Phoenix Heat Treating
602.258.7751
Bob Nichols
Phoenix Metal Trading
602.257.4660
Arlene Helt
Ryerson-Phoenix
602.455.3386
Dave Bolt
SBG Capital
480.897.4988
Jane Rousculp
Samuel Aerospace Metals
602.721.0176
Chris Tanner
Solid Products
480.206.0330
Russ Kurzawski
Star Metal Fluids LLC
602.256.2092
Megan Lenhart
SVS Group
623.687.8386
David Senkfor
Top Gun Consulting
602.510.5998
Donna Kordas
Tornquist Machinery Co.
602.470.0334
Greg Burke
TW Metals
602.864.0014
Doug Pratt
Ulbrich Stainless Steel & Spec.
203.234.3464
ATMA EVENTS IN MAY/JUNE 2015 May Board of Directors Mtng > 5/19 @ MicroTronics Roundtable MEETING > 5/27 @ Phx Airport Hilton, Upstairs meeting room 5:00-7:30
June Board of Directors Mtng > 6/16 @ MicroTronics SOUTHERN AZ Shop Tour > 6/tbd (Location and Time TBD) For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org
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1301 W. Geneva, Tempe 5/17 Board of Directors Meeting 11:30-1:00 at Micro-Tronics, 2905 S. Potter, Tempe, 85282
Welcome!
5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix
JUNE NEW ASSOCIATE MEMBER: 6/08 Safety Meeting (General Safety Standards) 11:30
at Leavitt Group, 919 & N. 1st St., Phoenix NFP PROPERTY CASUALTY
6/09W.Combined Membership, 2023 Guadalupe #2 Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, Mesa, AZ 85202 480.458.6052 1301 W. Geneva, Tempe Contact: Bob VonFleckinger 6/21 Board of Directors Meeting 11:30-1:00 at Email: bob.vonfleckinger@nfp.com Micro-Tronics, 2905 S. Potter, Tempe, 85282 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix
MANY THANKS TO OUR 2015 ATMA VALUED SPONSORS:
MANY THAN
TO OUR 2011 ATM VALUED SPONSOR
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
arizonatooling.org / 19
When it comes to finding smart tooling solutions, there’s no substitute for world-leading expertise. The yellow coat is your guarantee that you’ll get both the world’s finest tools and the know-how to make the most of them. With thousands of proven manufacturing solutions, we have the experience to help you cut cost per part produced, increase machine utilization and improve product quality in your applications. Sound interesting? Visit our website at www.sandvik.coromant.com or get in touch with someone in a yellow coat at 1-800-SANDVIK.
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FeatureFocus SPECIAL ADVERTISING FEATURE
NANO Technology for Metalworking Fluids – A QUANTUM LEAP! In the current environment of Exacting Standards and Increased Requirements for On-Schedule Delivery and Maximum Productivity, an examination of the role of Coolant Materials in the Metalworking Process is warranted. With the need to maximize Tool Life and Minimize Downtime, the Coolant utilized in various forms of Metalworking has always played an important role, but the choices were, frankly, limited to a fairly narrow range of properties and outcomes - until now. Tool-X represents a Quantum Leap in terms of the Properties and Performance that can be expected from Coolant. Tool-X, which is a Nanotechnology-based Material that actually changes the characteristics of existing Metalworking Fluids, is a real Game-Changer for anyone doing Milling, Turning, Drilling, Grinding, Broaching, etc. Tool-X, which is, in fact an additive for existing coolants, whether water- or oil-based, represents a change so dramatic that historical calculations for Speeds and Feeds and the resulting Metal Removal Rates will have to be rethought and recalculated, to the Tool-X represents extent that it might actually entail a virtual a Quantum Leap in increase in in-place Productivity without terms of the Properties adding new equipment. Just think - quicker and Performance that turnarounds, less overflow work being sent can be expected out, greater ease in meeting demanding from Coolant. schedules - the impact is indeed dramatic! On top of that, you will find improved surface finishes, often critical in Aerospace and other critical applications, and greater adherence to dimensional accuracy without adjustments. And the improvements in Tool Life will be obvious, cutting both Tool Costs and Downtime associated with Tool Changes. What is Tool-X? It is a Nano Fluid like Rain-X and other Nano Materials that are suspended in liquids. Tool-X is made with Nano Onions of Graphene Material that
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provides two different elements that increase Tool Life and Speeds and Feeds. What does Tool-X do? It increases Tool Life and Speed and Feed. It will also improve your surface finish, dimensional accuracy, and lower the heat in your sump. All of these factors combined add up to major cost savings for you. How does Tool-X work? Millions of Nano Particles are suspended in the Coolant and oil, and act like tiny ball bearings to radically reduce friction and the heat that results from it. Tool-X makes life easier, less stressful, and far more productive for everyone in your Operation from the Maintenance Supervisor to the Shop and Quality Managers and the CEO by allowing you to markedly increase the Operating Speeds of your Machines without worrying about excessive Heat, Tool Wear and Damage. Your Operators will be less Tentative and More Productive! While Tool-X has been under test and proven in Production in Aerospace, Automotive and other Industrial Applications for years, it is just now being made available for Purchase and Use in the American Southwest. Tool-X is currently under test and in use in several Arizona and California operations. Most notably, Dante Fierros, owner of Nichols Precision in Tempe, Arizona, and immediate Past President of ATMA has been pleased and impressed by the benefits they have observed in Surface Finishes, Faster Speeds and Feeds and Metal Removal Rates, and greatly Reduced Tool Wear and Replacement.
We are confident that you will see the same GameChanging Benefits in YOUR operation. Please contact Mike Rakowsky at bigmik@cox.net, 602.696.1553 to set up a demonstration and experience the results for yourself.
PrecisionNews // NTMA MEMBERSHIP
Why join NTMA? To say it simply, the NTMA gets it. We understand your challenges in today’s economy. We recognize that many of you face a talent gap, with necessary skills in short supply. And we know that there’s a gap between the reality of our industry and the public’s perception of it. But even more importantly, NTMA has the resources to do something about these issues. Our educational programs stimulate the talent pipeline. Our resources and roundtables help members share best practices and solve common business problems. And by speaking with one voice, we cut through media-generated perception to communicate reality to policy makers and the public. American ingenuity isn’t dead. It isn’t in decline. It’s alive and well in the custom precision manufacturing industry. NTMA stands for the future. We also stand with your peers. Will you stand with us– and your industry–today? JOIN US TODAY!
BENEFITS OF JOINING Networking You don’t have to go it alone. Membership immediately connects you with peers at the local, regional and national levels—opening up conversations that can lead to new opportunities while helping you discover better ways to operate. Training We offer an arsenal of training programs designed to pick up where American vocational and technical education leaves off, preparing your workers to meet the demands of today’s precision manufacturing environment. These range from informal programs to college-level courses. Discount Programs You don’t have to be a big company to get big-company treatment from suppliers and vendors. Through association membership, you qualify for volume discounts on everything from office supplies to payroll service to shop components—no matter how small your volume may be. Online Resources From job postings to a members-only marketplace, from industry news to archived webinars, NTMA members can take advantage of a number of benefits without ever leaving their keyboards. Market Research Good business begins with good planning. But it’s hard to plan without reliable market intelligence. That’s where our reports come in. We survey the marketplace as well as our members to put useful data in your hands. Initiatives NTMA is constantly moving forward, seeking new ways to help you grow profitably. Our programs include everything from the National Robotics League to a constantly evolving set of benchmarks and best practices.
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
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THE ARIZONA TOOLING AND MACHINING ASSOCIATION
FOCUSED ON THE FUTURE:
MANUFACTURING IN ARIZONA AND PROVIDING THE CAPABILITIES YOU NEED TODAY!
/
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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