THIS ISSUE: Service, Membership & Revenue / Polarized Congress / Tax Update / Oil Mist & Vapor
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ARIZONATOOLING.ORG NOVEMBER/DECEMBER 2012
PrecisionNews TM
TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY
Inside: SHARING YOUR MISSION AND VISION GETTING EMPLOYEES ENGAGED AND COMMITTED TO A PURPOSE
50 POLICIES IMPROVE U.S COMPETITIVENESS LEARN ABOUT RECOMMENDATIONS ORGANIZED AROUND THE ‘4Ts’ OF TECHNOLOGY, TAX, TRADE AND TALENT
COMPOSITE MACHINING TOOLS AND METHODS MAKE NEW IN-ROADS TO IMPROVE PERFORMANCE AND RESULTS
THE PN SPECIAL REPORT
STAY SHARP / IN YOUR CHANGING BUSINESS CLIMATE /
BOOST SHORT-TERM RECOVERY AND LONG-TERM PROSPERITY
THE COMPETITIVENESS ISSUE NTMA SW BRINGS YOU:
THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!
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NOVEMBER/DECEMBER 2012 VOLUME 2 • ISSUE 6
Contents Features
Departments
SPECIAL ADVERTISING FEATURE
10 12 16
OIL MIST & VAPOR
03 President’s Letter
In order to know the proper solution to this common problem, it is imperative that we understand the nature of the problem and how it is being created.
04 Policy Matters
50 POLICIES TO IMPROVE U.S. MANUFACTURING COMPETITIVENESS Learn about recommendations organized around federal policies regarding the “4Ts” of technology, tax, trade, and talent, as well as policies to increase access to capital, reform regulations, and better assess U.S. traded sector competitiveness.
SUCCESSFUL COMPOSITE MACHINING NEEDS TOOLS AND METHODS TO SUIT EACH APPLICATION A new generation of cutting tools dedicated for composite machining, especially hole-making are making new in-roads to improve performance and results.
06 Tax Facts 08 People Power 20 Websites that Work 20 Arizona Chapter Info 26 San Diego Chapter Info 28 North Texas Chapter Info 30 San Francisco Chapter Info 32 Shop Floor
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, San Francisco and North Texas EXECUTIVE DIRECTOR & EDITOR Chris Mignella
PrecisionNews
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CONTRIBUTING WRITERS ATMA Safety Team, Jason Duffner, Dante Fierros, John Guzik, Margaret Jacoby, Michele Nash-Hoff, PN Editors & Sandvik Coromant, 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 ©2012 by ATMA. All rights reserved.
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First Word PRESIDENT’S LETTER
Tempest in a Teapot The drama we all face seems to never end does it? A program is terminated and our contracts decrease or opportunities abound and we lack people or assets to respond quickly enough. Some of our fellow machining companies are downsizing (or closing their doors) and others are swamped with work. What gives? My canned response when asked is that our individual prosperity level depends on the health of our customers upstream from us and our particular ability to cope with the positive or negative situations that flow downstream to us.
Your ATMA leadership team continues to seek out areas in which we can help in as many relevant ways as possible. How are we doing this you ask? Here are some quick updates:
Arizona Commerce Authority and East Valley Partnership: ATMA and specifically a handful of ATMA member companies are participating in a focus group initiative to determine current business needs and what to do about them via our state and education funding and resources. More about this to follow soon. DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com
Society of Manufacturing Engineers: Our partnership with the SME local chapter continues to provide our members with opportunities to visit companies listen to speakers and enjoy networking opportunities. See more on our website. Arizona Precision Manufacturing Apprenticeship Program: Chairman of the board of AZPMAP, Mark Lashinske reports that the AZPMAP is moving along nicely in its goal of providing employee resources for our needs as soon as possible. Currently, work is in process with the first group of apprentices. Next month the work continues with the “Train the Trainer” program. Concurrently, Maxine Jones, ATMA Ambassador and also on the AZPMAP board of directors, is meeting with employers regarding the program. Finally, past ATMA President Mark Weathers, is working very hard to find good apprentice candidates to fill the project. D2P Conference and Trade Show: I attended this conference in Long Beach recently to assess its potential for benefit. I was pleased to see 4 companies from Arizona present and over 200 more companies presenting their products and services to visiting buyers, engineers and program mangers. The folks at D2P do a great job in focusing their invitations to people making buying decisions. Comments from various exhibitors I chatted with were all positive regarding the business they secure from these trade shows. Look for more info and discount opportunities for ATMA members on our website. ATMA Associates: Our Associate Board Member leader, Kerry Vance, has taken his role as the spokesperson for our associates very seriously and is working tireless to find ways to bring both associates and regular members together. Presently, he and Executive Director Chris Mignella are working on an Associates Matrix that synopsizes capabilities for all to use. ATMA website: We continue to post requests for help, job openings, machinist needs, offload opportunities plus current news on our ATMA website. Why not visit it periodically and see what it there. So, the point of all this is to say that the ATMA continues in its efforts to be of business help to our members by focusing on Service, Membership and Revenue. Please contact me with your thoughts and may your business storms in the future remain small as a tempest that can fit in a teapot and nothing more.
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Policy Matters BECOME A VOICE FOR CHANGE
Congress is Polarized…And it’s Getting Worse! by JOHN GUZIK
THANKS IN LARGE PART TO PARTISAN BATTLES, this has been the most unproductive Congress ever! Until you look at the last Congress who was slightly more productive, yet anemic. Congressional approval ratings are at an all time low, with the Country’s approval of their lawmakers remaining at about 13% for nearly two years. Yet, election after election we continue to see few major changes in the political make-up of the House and Senate. Some argue it is not the general election in November that is most important, but rather the primary elections. Primaries typically take place in the spring and summer when voter interest is low. Turn out for the primaries often consist of the voters who are in political extremes, selecting the most liberal and conservative candidates on the ballot. This year, the situation will get worse thanks to the mandatory redistricting following the decennial U.S. Census. State legislatures across the country have crafted new
Congressional District lines for all 435 Members of Congress. In most cases, the new district lines were drawn to consolidate both the Republican and Democrat vote, protecting incumbents and eliminating s wing districts. Ten years ago, just after the previous Census, 159 of the 435 districts in Congress were considered swing seats – districts that were rated between plus 5 Democrat to plus 5 Republican. Today after the 2010 Census there are only 99 districts considered swing seats. And, as the election approaches only 62 of the 99 are truly competitive. What we are seeing is the continued and accelerated extinction of conservative Democrats and moderate Republicans in Congress. We see it in Arizona, where the more conservative Republican Congressman David Schweikert defeated the more moderate Republican, Congressman Ben Quayle. In Pennsylvania there were two examples of a more
moderate Democrat Congressman going down in defeat against a more liberal Democrat. Just two years ago, there were 47 self described “Blue Dogs”, conservative Democrats in Congress. Today there are only 26 Blue Dogs serving in the House of Representatives, with several retiring this year. Comparatively, the Congressional Progressive Caucus – a group of the most liberal Democrats in Congress – currently has a membership of 76. The same trend can be seen within the Republican Party. After Republicans gained control of Congress in the 2010 elections, the conservative Republican Study Committee saw their membership balloon to 164 members in the House. The moderate Republican Main Street Partnership, however, currently only totals 43 members. These extremes lead to more polarization in Congress, with members unwilling to work across the aisle with their colleagues as they risk repercussions from the
fyi: Congressional approval ratings are at an all time low, with the Country’s approval of their lawmakers remaining at about 13% for nearly two years. - Recent polling data
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+ ONE ONLY NEEDS TO LOOK AT THE CONGRESSIONAL VOTES FOR THE TROUBLED ASSET RELIEF PROGRAM (TARP), THE CONTROVERSIAL “FINANCIAL SERVICES BAILOUT” LEGISLATION. OF THE 66 REPUBLICANS WHO VOTED FOR THE BILL, 32 OF THEM WILL NOT SERVE IN THE NEXT CONGRESS EITHER TO DUE LOSING IN A PRIMARY OR RETIREMENT.
electorate – well not really the entire electorate, just the primary voters. We are seeing it first-hand in our meetings on Capitol Hill. Members of Congress lament how liberal or conservative their new districts have become. These Members often mention how next year they will most likely not be able to vote for X piece of legislation because of the make-up of the new district. One only needs to look at the Congressional votes for the Troubled Asset Relief Program (TARP), the controversial “Financial Services
Bailout” legislation. Of the 66 Republicans who voted for the bill, 32 of them will not serve in the next Congress either due to losing in a primary or retirement. The final House vote in 2010 on the health care legislation is another example. Of the 32 Democrats who broke with their party to vote against the bill, only 8 are in contention for a seat in the 113th Congress. We do not believe this trend is healthy but it reinforces why it is so important for manufacturers to get to know their Member of Congress by hosting a plant tour, a CEO Roundtable or responding to our Action Alerts.
We all need to remember, if Members of Congress do not hear from us, you can be assured they will hear from those who oppose us.
JOHN GUZIK is a founding partner of the Franklin Partnership with over 20 years of Capitol Hill and campaign experience. Previously, John served as Chief of Staff for Ways and Means Chairman Dave Camp. He also works closely with the Senate Finance Committee on health care, tax, trade, and many other issues Learn more at: www.franklinpartnership.com
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Tax Facts LEARNING AND LOOKING AHEAD
Federal Tax Update for Manufacturers by JASON DUFFNER
As we look to turn the calendar and welcome 2013, manufacturers are facing an uncertain economy, a potential reduction in government spending that will further impact the economy, and unprecedented changes and uncertainty in the tax law. As the political stalemate continues and there is increasing clarity that a compromise will not be reached in Congress, what happens to the tax law on January 1, 2013 and why should manufacturers care? While our political leaders squabble, our business leaders must plan for what is coming and act accordingly. Given the uncertainty ahead, this can be difficult. The following are some of the more significant tax changes affecting manufacturers.
installment sale should consider the potential benefit of electing out of the installment sale and recognize the entire gain in 2012. Owners might also consider deferring the sale of loss securities until 2013 to maximize the benefit of the loss.
TAX RATES Individual Income Taxes The majority of privately owned manufacturers in the United States are taxed as flow through entities (S Corporations, Partnerships, or Sole Proprietors) and any increases to the individual income tax rates or newly imposed taxes will decrease available cash flow for operations in an already tight economy. Beginning January 1, 2013, there’s a mix of expiring tax provisions and newly enacted taxes to be imposed for the first time, both of which increase tax rates.
Dividend Income Another nasty tax increase is on dividend income. Currently qualified dividends are taxed at the capital gains rates, but come 2013 the dividend rates jump back to the ordinary income rates. For high income taxpayers, that could result in a 39.6% income tax plus the new 3.8% investment income surtax discussed below.
Assuming no compromise is made, on January 1, 2013, the graduated individual income tax rates on ordinary income jump from 35% for high income tax payers to 39.6%. Even individual taxpayers in the lower income tax brackets will see a minimum increase of 5%. The rate increases are due to expiring provisions dating back to tax legislation passed during the Bush administration nearly a decade ago. Capital Gains The tax rates on capital gains are also set to increase from 15% to 20% and will be as high as 23.8% when considering the newly enacted surtax on investment income for high income taxpayers discussed below. Owners of manufacturing companies who sold their business in 2012 and utilized an
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Due to this potential significant increase in tax rates, Manufacturers who are taxed as corporations or S corporations which were previously taxed as corporations should consider a plan to accelerate dividends into 2012. Health Care Reform Surtax And then there are the new surtaxes which are being imposed for the first time. For high income individuals, there are additional taxes set to take effect that were enacted with the health care reform legislation (“Affordable Care Act”) from March, 2010. The first is a 0.9% surtax on earned income for single taxpayers earning greater than $200,000 ($250,000 for married couples). The second is a 3.8% surtax on “net investment income” for single taxpayers with adjusted gross income of greater than $200,000 or married couples with adjusted gross income greater than $250,000. “Net investment income” includes more than traditional investment income and encompasses income from
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passive business and rental activities. (Although the dollar limits are the same, note that the 0.9% surtax threshold is based upon earned income and the 3.8% surtax is based upon “modified” adjusted gross income.) Excise Tax on Medical Device Manufacturers There’s one more new tax that manufacturers of medical devices need to be aware of. Beginning January 1, 2013, a 2.3% excise tax on the sale of any taxable medical device will be imposed on the manufacturer. A taxable medical device refers to any device defined in Sec. 201(h) of the Federal Food, Drug, and Cosmetic Act which is intended for humans. There is a retail exemption which exempts any medical device which is generally purchased by the general public at retail for individual use such as eyeglasses, contact lenses, hearing aids, etc. FIXED ASSETS The annual limit for Sec. 179 expensing and qualified property additions drops from $139,000 to $25,000. Bonus depreciation, currently set at 50% in 2012 for new shorter-lived property, expires. For manufacturers considering purchases of new or used equipment in the first quarter of 2013, making those purchases and placing them into service prior to January 1, 2013 would accelerate the depreciation of the property. A number of bills submitted in Congress have proposed to increase the Sec. 179 expense levels for 2013 or extend 100% bonus depreciation to 2012 and 50% bonus depreciation for 2013, but at the time of writing, none has passed Congress.
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RESEARCH & DEVELOPMENT CREDIT At the time of writing, Congress still had not extended the R&D Credit for 2012. Senate Bill 3521, The Family and Business Tax Cut Certainty Act of 2012, proposes to extend the R&D Credit through the end of 2013. ESTATE TAXES Is the equity value of your business and other assets greater than $1 million? If so, your estate could potentially be subject to tax beginning January 1, 2013. The current exemption of $5 million per person will drop to $1 million while the top estate rate will increase from 35% to 55%. With so many new taxpayers potentially subject to the estate tax, owners of manufacturing businesses should establish a succession plan and implement an estate plan prior to the end of the year. For those who did not have time to implement an estate plan during 2012, continue to monitor this area of tax law as some Congressional compromise may occur later in 2013. PARTING THOUGHTS How long will Congress go before coming to some compromise? It appears it will likely not address the majority of the expiring tax provisions until the post-election lame-duck session. It will need to address a temporary “Tax Extenders� bill currently pending Senate and House approval. Taxpayers need to stay informed and develop a flexible tax plan for the end of 2012 because the only certain thing is the tax law is going to change. Keep in mind, every taxpayer situation is unique and you should consult your personal tax advisor regarding 2012 year-end tax planning.
JASON DUFFNER is a Partner in the Manufacturing and Distribution group of CliftonLarsonAllen. Jason can be reached at 888.529.2648 or jason.duffner@cliftonlarsonallen.com Learn more at: www.cliftonlarsonallen.com
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People Power INFORMATION FOR ACTION
Sharing the Mission and Vision…Getting All Employees Engaged and Committed
by MARGARET JACOBY, SPHR
Many companies go through the strategic planning process and develop Mission and Vision Statements to articulate the purpose of the business. A lot of work and thought goes into crafting the documents. Once the work is done, the beautiful notebook is placed on a shelf in the President’s office and proceeds to gather dust.
Why bother with this process if the results (the Mission and Vision Statements) are “shelved” and not shared? It is critical to share the mission and vision of the company with all employees. When employees understand the mission and vision, it becomes ingrained in the work environment and amazing things begin to happen. Loyalty to the company mission does not come easily. The loyalty must be built one employee at a time, much like building trust. The loyalty is easy to tear down and the challenge is to build it and maintain it. How to communicate those values:
• Post the Mission and Vision statements in the employee manual • Have professionally made copies and post them in the break room, the reception area and in places employees frequent within the workspace • Be sure they are articulated in brochures, job vacancy postings, job applications • Include them on your Intranet or your website, social media pages, etc. • Include discussion of the mission with new hires as part of the on-boarding process As organizations progress over time, their missions and visions can change. Periodically, ask your staff to share their ideas about where the organization is going. Tape easel paper on walls and ask for new vision/mission statements. Brainstorm new ideas with the employees. When employee ideas are valued, they are more committed to aligning their personal success with that of the organization. As noted in the accompanying article, make sure that the “quiet voices” of your organization are encouraged to participate when brainstorming for new ideas. They may tend to hold back, but you certainly want their input. After all, they’re driven by logic and reflection and they are concerned about quality, so they certainly should be heard.
MARGARET JACOBY is the president of MJ Management Solutions, Inc. She can be reached at margaret@mjms.net Learn more at: www.mjms.net
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The Power of Quiet…In a World Filled with Noise & Commotion We tend to accept that in our work-worlds being “up” and being “out there” is often the norm. Leadership positions are frequently filled with extroverts who tend to display and reward a fast-forward style. They are direct, they are change agents and they don’t raise their hands to ask to speak --- they just shout it out!! They can be very effective leaders but in a take-no-prisoners mode, the “quiet voices” of the organization can all-too-often go unheard. WARNING: Not listening to the quiet voices is a mistake! Commanding leaders have a duty to enable the quiet voices on their team, the introverts, to be heard. Why? It’s simple!! Introverts are not noisy and they may not hurriedly attack assignments or make quick decisions or multi-task. But, they have the power of concentration and focus, logic and reflection. They gather data, listen-to-understand and might be able to offer the compelling insights that best address the challenge at hand. They must be encouraged to raise their hands and to speak-up. It’s human nature to like people who are like ourselves and to communicate in our own preferred communication style. So, if you’re a results-oriented, competitive leader with a sense of urgency you don’t have to change. However, you should accept the fact that nearly fifty percent of the people you interact with have a different work style. They are driven to be detail-oriented, accurate, concerned about quality and self-disciplined. They also tend to be quiet. So, take a breath, count-to-ten and ask the “quiet voices” in your organization how they would deal with the challenge at hand. Experience the “power of quiet” . . . engage the quiet voices . . . encourage them to provide the compelling insights you need. It’s as simple as saying something like, “Jane, how do you weigh in on this subject?" TED SZANIAWSKI Principal, HRGroup, LLC Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com
PHOENIX METAL TRADING, INC. Industrial Scrap Specialists OUR MISSION: Our mission at Phoenix Metal Trading is to provide the best service at a fair price and to continually improve our company to be a leader in our industry.
EPA and ADEQ Environmental Compliance We Purchase All Types of Scrap:
Copper Brass Aluminum Steel Stainless Steel
Titanium Plastic Cardboard Nickel and Cobalt Alloys
State of the Art Fleet and Plant Equipment Never a charge for pickup
602-257-4660 www.phxmtl.com SCRAP METAL RECYCLING SINCE 1989 • ATMA MEMBER
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Oil Barron Bulletin SPECIAL ADVERTISING FEATURE
VOLUME 11:
Oil Mist & Vapor by BRETT “THE COOLANT GUY” REYNOLDS, CMFS
If you’ve worked in a machine shop long enough, you might have noticed various items such as tool boxes, work benches and machine surfaces becoming oily or sticky. You might even work at a facility where a constant fog hangs in the air during working hours. Both of these issues have one thing in common – Oil Mist & Vapor. So where is the mist coming from, but better still, what can you do about it? In order to know the proper solution to the problem, it’s imperative that we understand the nature of the problem and how it is being created. During machining, mist and vapor formation are given off simultaneously during the metal removal process. The difference in mist verses vapor is the difference in particle size, with vapor and smoke being <1µm. The various mechanisms of mist and vapor formation are the following:
• Evaporation/Condensation – Most often produces smoke, due to fluid coming in contact to the hot work/cutting zone. • Impaction and Centrifugal force – High speed spindles create motion, thus spraying fluid which impacts part and machine surfaces. • Aeration/Entrained air – Entrained air (bubbles) is released when the fluid is at rest, forming aerosols. Not all mist and vapors are attributed to the fluid; welding fumes, along with metal dust, common dirt and parts washer mist all contribute to the overall mist levels in the shop. Mist levels are measured by several methods, both quantitative and qualitative, using either a personal sampling monitor, (Quantitative) and/or light scattering instruments, (Qualitative). The OSHA Permissible Exposure Limit, (PEL) for metalworking fluid mist is 5mg/m3 of mineral oil mist. This is the only statutory limit that has been imposed by OSHA; however most large manufacturing companies are now following the NIOSH Recommended Exposure Limit, (REL) of 0.5mg/m3 of total particulate mass, as a safety measure. High mist levels in the shop can also be directly correlated to how much tramp oil is in the coolant itself. The higher the tramp oil load, the higher the mist level. High levels of tramp oil contamination (>4%) in the metalworking fluid, can lead to an increased level of bio-mass accumulation. This is due impart to Anaerobic-sulfate reducing bacteria. These microbes are present in the bulk fluid, and are also thus present in the mist/vapor which is generated by the aeration and spraying action of the coolant itself. These bio-aerosols are being linked more and more to the acute effects of cough and phlegm production, as well as shortness of breath and bronchitis. These acute effects may lead to chronic lung conditions such as, asthma and hypersensitivity pneumonitis (HP). So what can I do to reduce the mist levels in my shop? Remove tramp oils on a consistent basis and keep microbial levels in check and under control. Practice good housekeeping procedures. Install mist and filtration collection systems and keep them well maintained. Make sure machine guards are in place and ensure there’s adequate ventilation. Above all, maintaining your coolant can go a long way to reducing the overall mist levels in the shop, thus making a cleaner and healthier work environment for all concerned.
Stay tuned for more useful coolant tips, from The Coolant Guy!
BRETT REYNOLDS, “The Coolant Guy” works for Blaser Swisslube Inc. If you would like more uinformation regarding metalworking fluids, or would like to find out more information about Blaser metalworking fluid products, please contact Brett at 801.722.4095 or via email at b.reynolds@blaser.com. The Oil Baron Bulletin is not affiliated with Blaser Swisslube Inc. or its subsidiaries. Learn more at: www.blaser.com and theoilbaronbulletin@blogspot.com
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THE COOLANT. We are here to help you boost your productivity.
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MAGNUM PRECISION MACHINES
Magnum Precision Machines 3614 E. Southern Avenue #1 Phoenix, AZ 85040 Phone (602) 431-8300
B laser S wisslube IInc. nc. Blaser Swisslube G oshen, N ew Y ork 1 0924, P hone 8 45-294-3200, w w w.blaser.com, mailboxusa@blaser.com mailboxusa @ blaser.com Goshen, New York 10924, Phone 845-294-3200, www.blaser.com,
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A PrecisionNews SPECIAL REPORT
ITIF Report Details 50 Policies to Improve
U.S. Manufacturing Competitiveness Recently, the Information Technology and Innovation Foundation (ITIF) released a report titled, “Fifty Ways to Leave Your Competitiveness Woes Behind: A National Traded Sector Competitiveness Strategy,” by Stephen Ezell and Robert Atkinson in which they stated, “A comprehensive strategy aimed at strengthening U.S. establishments competing in global markets is needed for the United States to boost short-term recovery and long-term prosperity...”
BY MICHELE NASH-HOFF
“THE UNITED STATES IS INCREASINGLY ISOLATED in its belief that countries don’t compete with one another and that only firms compete” said ITIF Senior Analyst Stephen Ezell, co-author of the report. “Our traded sector establishments are up against competitors that are aided in countless ways by their governments. It’s time to level the playing field.” The report, presents 50 federal-level policy recommendations to help restore U.S. traded sector competitiveness, along with 13 state-level recommendations. The recommendations are organized around federal policies regarding the “4Ts” of technology, tax, trade, and talent, as well as policies to increase access to capital, reform regulations, and better assess U.S. traded sector competitiveness.
A nation’s traded sector includes industries such as manufacturing, software, engineering and design services, music, movies, video games, farming, and mining, which compete in international marketplaces and whose output is sold at least in part to nonresidents of the nation. They are the core engine of U.S. economic growth and face unique challenges. Because these industries face competition in the global market that non-traded, local-serving industries (retail trade or personal services) do not, their success is riskier. “The health of U.S. traded sector enterprises in industries such as semiconductors, software, machine tools, or automobiles-all far more exposed to global competition than local-serving firms and industries-cannot be taken for granted.” continued on next page
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A PrecisionNews SPECIAL REPORT
ITIF Report Details 50 Policies to Improve U.S. Manufacturing Competitiveness continued from page 13
IF A COMPANY LIKE BOEING LOSES MARKET SHARE TO AIRBUS, thousands of domestic jobs at Boeing, its suppliers, and the companies at which their employees spend money will be lost. In contrast, a local grocery store may compete for business with other supermarkets, but it is not threatened by international competition. If Safeway loses market share to Wal-Mart, the jobs remain in the United States. Ezell and Atkinson state, “The fact that the U.S. traded sector has not created a single net new job in 20 years is a core reason for the current U.S. economic malaise.” They cite the research of Nobel Prize-winning economist Michael Spence, who has demonstrated that “from 1990 until the Great Recession started in 2007, the U.S. achieved virtually no growth in traded sector jobs. The malaise has been a downright decline in manufacturing, as the United States lost nearly one-third of its manufacturing workforce in the previous decade, saw on net over 66,000 manufacturing establishments close, accrued a trade deficit in manufactured products of over $4 trillion, and experienced a decline in manufacturing output of 11 percent at a time when U.S. GDP increased by 11 percent (when measured properly).” Ezell and Atkinson corroborate what I have written previously “every lost manufacturing job has meant the loss of an additional two to three jobs throughout the rest of the economy. The 32 percent loss of manufacturing jobs was a central cause of the country's anemic overall job performance during the previous decade, when the U.S. economy produced, on net, no new jobs....at the rate of growth in manufacturing jobs that occurred in 2011, it would take until at least 2020 for employment to return to where the economy was in terms of manufacturing jobs at the end of 2007.” The reasons why the authors emphasize the importance of manufacturing as a “traded sector” are: • It will be difficult for the U.S. to balance its foreign trade without a robust manufacturing sector because manufacturing accounts for 86 percent of U.S. goods exports and 60 percent of total U.S. exports. • Manufacturing remains a key source of jobs that both pay well. • Each manufacturing job supports as an average of 2.9 other jobs in the economy. • The average wages in U.S. high technology are 86 percent higher than the average of other private sector wages.
• Manufacturing employs 63 percent of domestic scientists and engineers. • U.S. manufacturing firms demonstrate almost three times the rate of innovation as U.S. services firms. • Manufacturing is vital to U.S. national security and defense. They contend that “the engines of a nation’s competitiveness are in fact not mom and pop small businesses, but rather firms in traded sectors, high-growth entrepreneurial companies, and U.S.-headquartered multinational corporations. Although such firms comprise far less than 1 percent of U.S. companies, they account for about 19 percent of private-sector jobs, 25 percent of private-sector wages, 48 percent of goods exports, and 74 percent of nonpublic R&D investment. And, since 1990, they have been responsible for 41 percent of the nation’s increase in private labor productivity.” The report notes that traded sector businesses improve the local economy in three ways: Traded sector businesses bring money into a region by selling to people and businesses outside the region. They help keep local money at home through import substitution, which occurs when local residents and businesses purchase locally produced products instead of importing goods and services. They improve economic equity since “their productivity and market size tends to lead them to offer higher wage levels” and jobs at traded sector companies help anchor a region’s middle class employment base by providing stable, living wage jobs for residents.” While the authors believe all 50 recommendations are needed, they believe the 10 most critical recommendations are:
• Manufacturing, R&D, and innovation go hand-in-hand. • The manufacturing sector accounts for 72 percent of all private sector R&D spending.
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• Create a network of 25 “Engineering and Manufacturing Institutes” performing applied R&D across a range of advanced technologies.
technology, tax, trade, and talent • Lower the effective U. S. corporate tax rate - As of April 1, 2012 (when Japan lowered its corporate tax rate), the United States took the mantle of having the highest statutory corporate tax rate at almost 39 percent (when state and federal rates are combined) of any OECD nation. • Combat foreign currency manipulation • Support the designation of at least 20 U.S. “manufacturing universities.’
• Better support and align trade promotion programs to boost U.S. exports.
• Increase funding for the Manufacturing Extension Partnership (MEP).
• Better promote reshoring.
• Increase R&D tax credit generosity and make the R&D tax credit permanent.
I also support their recommendation that Congress should broaden the R&D tax credit’s scope to make it clear that process R&D (R&D to develop better ways of making things) qualifies for the tax incentive and that Congress should expand the R&D credit to allow expenditures on employee training to count as qualified expenditures.
• Institute an investment tax credit on purchases of new capital equipment and software. • Develop a national trade strategy and increase funding for U.S. trade policymaking and enforcement agencies. • Fully fund a nationwide manufacturing skills standards initiative. • Expand high-skill immigration, particularly which focuses on the traded sector.
With regard to trade enforcement, they recommend that the U. S. “exclude mercantilist countries from the Generalized System of Preferences (GSP)” because “the top 20 GSP-beneficiary countries Argentina, Brazil, Bolivia, Colombia, India, Indonesia, Pakistan, the Philippines, Russia, Thailand, Turkey, and Venezuela-are on the U.S. Trade Representative’s Special 301 Watch List (which documents countries that fail to adequately protect U.S. companies’ or individuals’ intellectual property rights).”
• Transform Fannie Mae into an industrial bank. • Require the Office of Information and Regulatory Affairs (OIRA) to incorporate a “competitiveness screen” in its review of federal regulations. Only two of their top 10 recommendations made the list of the most critical recommendations in the second edition of my book: # 4 and #10. However, I support all of their other top 10 recommendations, as well as many of their other 40 recommendations, especially the following:
I believe that enacting legislation to address foreign currency manipulation by China in particular should be in their top 10 recommendations. I also recommend that we enact legislation to establish either a Natural Strategic Tariff as recommended by economist Ian Fletcher in his book Free Trade Doesn’t Work: What Should Replace It and Why, or a Balanced Trade Restoration Act to authorize sale of Import Certificates using either the Warren Buffet plan or the Richmans plan (as explained in their book Trading Away our Future). continued on page 24
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/// A New Challenge In Machining Machining composite materials is completely different to conventional machining of metals. What is more, machining one type of composite is usually different to machining another. In this respect they are not unified at all and, furthermore, the range of composite materials is broader than that of metals. Implications for machine shops involved in manufacturing using these materials are considerable and need a re-assessment of tools, methods, set-up and in some cases even machinery and fixturing. It is quite likely then, that every new composite material entering the factory doors needs a new approach because the material consistency of metals as regards machining is not there.
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The cutting action in composite materials is different to that of metals. The cutting edge does not generate a chip through shearing as with the majority of metals, it breaks off the composite material to be removed, often cutting the matrix material while fracturing the reinforcement fibers. The general principle of machining composites is with sharp cutting edges having sufficient clearance giving a clean cut and minimized tendency for the tool rubbing against the workpiece. Tool wear needs to be minimized as geometrical changes to the edge rapidly lead excessive heat generation, edge breakdown and component-quality problems. Carbon fiber reinforced plastics (CFRP) have poor heat dissipation and, as there are no chips as with metal, heat is not removed as effectively from the cutting zone. This means that temperature considerations should be made both as regards effect on the tool material and the workpiece material. FROM THE PN EDITORS & SANDVIK COROMANT
needs tools and methods to suit each application A GROWING NUMBER OF MODERN PRODUCTS NEED NEW MATERIALS WITH COMBINATIONS OF PROPERTIES THAT CANNOT BE FULFILLED BY SINGLE MATERIALS OR CONVENTIONAL ALLOYS. AMBITIONS ARE HIGH AS REGARDS WHAT CAN BE ATTAINED AND MANY CAN ONLY BE MET BY COMPOSITE MATERIALS. BUT WITH THE SUCCESS OF THESE AS CONSTRUCTIONAL MATERIALS COMES NEW DEMANDS ON MACHINING CAPABILITY AND WHERE VARIATION IN MACHINABILITY ADDS TO THE CHALLENGE. A NEW GENERATION OF CUTTING TOOLS DEDICATED FOR COMPOSITE MACHINING, ESPECIALLY HOLE-MAKING, ARE MAKING NEW IN-ROADS TO IMPROVE PERFORMANCE AND RESULTS.
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Both the reinforcement fibers and the matrix of a composite material can be very abrasive on cutting tools, making toollife a major issue. Cutting forces are another issue in composite machining as pressure on components and the effects of the cutting edge on finish and accuracy are primary concerns. Workpieces are often susceptible to the effects of forces as many are thin, slender or stacked. /// Composite Machining is Application Specific Establishing of individual processes for applications is the corner-stone of successful composite machining performance, security and results. The most frequently used machining processes are hole-making, surface machining and edging and trimming. Drilling CFRP materials, CFRP with aluminum stacks and CFRP with titanium stacks are common operations in CNC machines, in positive feed machines and performed by robots. Milling of edges on finished components or face milling of contact and assembly points of carbon fiber materials are common on 5-axis CNC-machines and in PKM machines. Drilling dominates as an operation in composites. It is challenging because the material at entry as well as the exit of the hole can both splinter and even split into separate layers (delamination). To achieve the required surface finish often needs extra efforts by way of obtaining satisfactory cutting
action between fiber layers and the matrix, partly because of the way CFRP materials vary in this respect. As impact resistance and heat resistance improve for composites as design materials, machining usually needs more attention and a new solution. Some carbon fiber materials are very good at standing up to heat demands and are therefore used close to turbine engines but this makes the material even more challenging with extensive abrasion wear mechanism acting on the cutting edges of the drill.
Cutting tools need to be easy-cutting, generating minimal cutting forces. Various tool geometries are needed to arrive at the best solution due to the varied character of composite materials. As regards tool material, diamond-coated carbide drills are used in applications where stability is lower through the mobile machines used typically in airplane assembly. Diamond-like coating is also an alternative for when the carbon fiber is stacked with aluminum as diamond coated tools are often not favorable in these conditions.
Making a hole to high quality demands is becoming more challenging as composite materials develop to satisfy demands from new aircraft designs. Hole-quality demands are high and the degree of automation is also increasing with a trend of also eliminating secondary operations. Also, stacked materials are becoming more common as the volume of carbon fiber increases, making surface finish, tolerance and material evacuation tricky with added challenges on the cutting tool capability and for the right method to be in place.
Diamond-tipped (PCD) drills and milling cutters have the best tool-life as diamond stands up to the wear of various carbon fiber materials and stacked materials - including titanium. In milling applications, diamond-tipped inserts is most common. While diamond-coated solid carbide tools can be utilized for trimming carbon fiber components, but usually with shorter tool-life. Material removal rate is important, but often not the main factor. The quality of a hole, combined with satisfactory tool-life and tool cost will affect productivity more when it comes to composite machining. The finish achieved in one operation can reduce or eliminate secondary operations and tool-life contributes to reduced machine down time.
Drilling CFRP materials can often be solved in a relatively straightforward way but when combined with a layer of titanium, the entry from composite to titanium needs adjusted cutting data and for the titanium chips to be formed and handled so as not to affect the surface of the composite material. The cutting tool also needs to be capable of machining both types of these very different materials. Cutting data for composite materials vary and may also depend upon the capability of the machine to be used. In drilling, cutting speeds of 100 to 200m/min are common with small feed rates, typically 0.02 to 0.06mm/rev. The most common diameters involved in composite drilling are 3 to 12.7mm. Solutions are application-specific and may include one of the CoroDrill geometries selected or adapted to the material. The PCD drills with vein-design (sintered PCD) cutting edges include a double-facet geometry to minimize delamination tendencies at hole entries and exits. Drilling fiber-rich CFRP-materials needs a geometry that will reduce splintering such as the new E-type geometry on 854 drills, with similarities to geometry used for aluminum. Three drill geometries have been developed to date for making holes where quality is particularly high in various types of CFRP materials. These are suitable for both cemented carbide drills and PCD-tipped drills. Resin-rich materials will often demand a steeper helix-angle on the drill to reduce the risk for delamination and splintering. To get started and assess machinability, a medium speed, typically involving a spindle speed of about 2000 rpm for a small to medium tool, and a low feed rate should be applied. In this way, the machining properties can be observed in order to adjust cutting data further or even the choice of a different tool geometry and grade. Surface finish demands are increasing and are typically in the region of Ra 1.6 microns and these, along with cpk values, will also affect the choice of both geometry and grade. As with hole-surface quality, demands on flat machined surfaces are high for composite components, demanding innovative approaches with modern indexable insert tooling. The CoroMill tool family includes cutters such as the 590 face mill and the 390 end mill with polycrystalline diamond tipped or coated inserts that are especially effective as regards high-fiber-content composites. Edging and trimming have carbide or diamond inserts or solid carbide cutters for effectively achieving quality results.
/// On-going Activities Provide Soutions Apart from developing cutting tools that will lift performance in composite machining, the development of optimum processes is high on the agenda at Sandvik Coromant in this area and a range of new drills and milling cutters have recently been developed to improve competitiveness. Carbide drills have been designed with a carbon coating (diamond-like coating) or true diamond coating suitable for a number of applications. Three drill geometries have been developed to date for making high quality holes in various CFRP materials. These are suitable for use on both carbide and PCD tipped drills. For milling, edging and trimming, there have for some time been available end mills and face mills with diamond inserts that are excellent for composite machining. The Tailor Made family of carbide drills with various geometries and grades is being extended for specific customer demands with fast delivery and application support. These are engineered product solutions for drilling and milling. Vein-PCD drills as well as brazed PCD drills, countersink tools and reamers are designed and produced to application demands. Also, brazed PCD cutters are available with varied flute designs. Examples of improvements include achieving better surface finish by applying the most suitable geometry in the best way. This can entail transporting dust and chips from stacked materials while also further reducing splintering and delamination tendencies. To succeed in the continually evolving world of composite machining, dedicated cutting tools for the type of material in use is one essential, but not sufficient, step on the way. Establishing the right parameters for the operations at hand and achieving the correct set-up are decisive to becoming competitive. continued on page 18
OPPOSITE: CoroDrill 452 provides reduced delamination
and burr formation â&#x20AC;&#x201C; defects witnessed frequently when holemaking in composites with less effective cutting tool technology.
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continued from page 17
needs tools and method to suit each application /// The Composite Material A composite is when two materials, each with different individual characteristics, are combined to form a material with a certain property. Materials with unique properties have always been needed, properties that cannot be met by one material alone. Composite materials is not a modern science, they were, for example, made centuries ago through forging irons with different properties into a combination material having a sought-after property. Today, they are artificially manufactured materials composed of a matrix with dispersed phases. Such is the case with the silicon nitride ceramics â&#x20AC;&#x201C; a composite tool material â&#x20AC;&#x201C; where whiskers provide added strength and stiffness. Another example is the composite-filling material in machine tool bases for dampening using granite in a resin. The main development area for composites today is as structural materials for aerospace, automotive, wind-power and numerous other applications. For airframes, they are especially developed to add stiffness, strength and durability to structures. Composites have excellent strength to weight ratio and can be formed into complicated shapes. In comparison to aluminum, carbon fiber composites (CFRP) typically have more than fourteen times the tensile strength; nineteen times lower thermal expansion; five times greater stiffness and yet weigh only half as much. But they are also much more challenging to machine. In the composite material, fibers, whiskers, particles or woven material are dispersed in a matrix where they add stiffness and strength. Structural composites are made up of laminates or sandwich layers. A laminar composite has stacked sheets cemented together in a way that the strength orientation varies with successive layers. The main matrix materials are organic material, metal and ceramic and the reinforcement may be continuous or discontinuous material of carbon or some inorganic material. Carbon fiber, aramid fiber (typically Kevlar) and carbon-aramid fiber reinforced-plastic composite materials are common airframe materials. The fibers are bonded in the matrix material such as an epoxy resin but also metallic. Applications for composites are growing rapidly and subsequently the development of materials. Especially the carbon fiber reinforced plastic (CFRP) is a rapidly developing composite material where new properties can be evolved. This is a very widely used material today and to a growing extent subjected to machining. The plastic matrix is the most commonly used, re-enforced with carbon-fiber and may also be stacked with a metal, such as titanium or aluminum, for some applications. CFRP composite materials provide very advantageous strength-to-weight ratio, a specific modulus, corrosion resistance and fatigue resistance and consequently provide considerable benefits for the airline industry, not only in the form of lighter airplanes needing less fuel but also lower maintenance.
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5/12 Combined Membership, Marketing & Program MAY Meeting 11:30-1:00 at Foresight Technologies, ARIZONA SPONSOR MEMBERS 5/111301 Safety (General Safety Standards) 11:30 W.Meeting Geneva, Tempe
ASSOCIATE MEMBERS
at Phoenix Heat Treat, 2450 W. Mohave, Phoenix
Linda Daly
A 2 Z Metalworker
602.412.7696
5/17 Board of Directors 11:30-1:00 at Bank Meeting of Arizona Greg Kolton 5/12 Combined Membership, Marketing & Program
480.459.2826
Richard Short
Adams Machinery
480.968.3711
Jeff Anderson
623.872.2546
Greg Whelan
Arizona CNC Equipment
480.615.6353
Jackie Bergman HUB International 5/17Airport Board of Directors Meeting 11:30-1:00 at Phoenix Hilton, 2435 S. 47th Street,
602.749.4190
John Anderson
ATS Industrial
602.276.7707
Bennet Cromer
501.952.9391
Vincent Thelander
Bank of America Merrill Lynch
602.523.2044
Howie Basuk
Barry Metals
5/25 THESE General Dinner Meeting 5:00-8:00pm at Phoenix MARK YOUR CALENDAR JUNE WITH Jon Gale LLP Airport Hilton,CliftonLarsonAllen, 2435 S. 47thSafety Street, Standards) Phoenix 6/08 Safety Meeting (General 11:30 480.615.2300 JUNE at Leavitt Group, 919 N.Bank 1st St., Phoenix 602.484.7186 Comerica 602.417.1188 Kevin Draper
Joe Ciancio
Bralco
602.252.1918
Marc Bissell
CadCam/Geometric
James Burriss Kerry Vance
Micro-Tronics, 2905 S. Potter,Technologies, Tempe, 85282 Meeting 11:30-1:00 at Foresight National Bank of Arizona
1301 W.Dinner Geneva,Meeting Tempe 5:00-8:00pm at Phoenix 5/25 General Micro-Tronics, 2905 S. Potter, Tempe, 85282
Federated Insurance
UPCOMING ATMA EVENTS!
6/08 Safety Meeting (General Safety Standards) 11:30
602.852.3462
480.222.2242
6/09 Combined Membership, Marketing Heritage Bank Ward Hickey at Leavitt Group, 919 N. 1st St., Phoenix & Program Meeting 11:30-1:00 at Foresight Technologies, 6/09 Combined Membership, RepublicMarketing Indemnity& Program David Pettycrew
ChemResearch Co., Inc.
602.288.0394
Steve Piotter
480.755.0415
Consolidated Resources
623.931.5009
1301 W. Geneva, Meeting 11:30-1:00Tempe at Foresight Technologies,
MSC Industrial Tool 1301of W.Directors Geneva, Tempe Board Meeting 11:30-1:00 at
Cindy Stewart
Creative Promotions
Lou Gallo
DDi - Solidworks
6/21 MAY 6/21Micro-Tronics, Board of Directors Meeting 11:30-1:00 at 2905 S. Potter, Tempe, 85282 5/11 Safety Meeting (General Safety Standards) 11:30 Micro-Tronics, 2905 S. Potter, Tempe, 85282 THANKS 480.839.9511 at Phoenix HeatMANY Treat, 2450 W. Mohave, Phoenix 6/29 General Dinner Meeting 5:00-8:00pm at 6/29 General Dinner Meeting 5:00-8:00pm at PhoenixPhoenix Airport Hilton, 2435 47th Street, Phoenix Airport Hilton, 2435 S. S. 47th Street, Phoenix 602.241.0900 5/12 Combined Membership, Marketing & Program
Randy Flores
D&R Machinery
Meeting 11:30-1:00 at Foresight Technologies, 480.775.6462
Steve Warner
EMJ Metals
602.272.0461
Mickey Gartman
Gartman Technical Services, Inc.
5/17 Board of Directors Meeting 11:30-1:00 at 602.788.8121 Micro-Tronics, 2905 S. Potter, Tempe, 85282
Bill Herbst
Global SuperAbrasives
413.231.6530 5/25 General Dinner Meeting 5:00-8:00pm at Phoenix
Jackie Bergman
HUB International
Airport Hilton, 2435 S. 47th Street, Phoenix 602.749.4190
Anna-Lena Seedhill
IFLEX Resource Management
JUNE 480.429.4508
David Cohen
Industrial Metal Supply
6/08 Safety Meeting (General Safety Standards) 11:30 602.454.1500
Tim Kloenne
Klontech Industrial Sales
480.948.1871
Barry Armstrong
L.A. Specialties
602.269.7612 Meeting 11:30-1:00 at Foresight Technologies,
David Hopkins
CliftonLarsonAllen, LLP
1301 W. Geneva, Tempe 480.615.2300
Bob Von Fleckinger
Leavitt Group
6/21 Board of Directors Meeting 11:30-1:00 at 602.264.0566
Jeff Trimble
Magnum Precision Machines
602.431.8300
TO OUR 2012 ATMA VALUED SPONSORS:
1301 W. Geneva, Tempe
at Leavitt Group, 919 N. 1st St., Phoenix
6/09 Combined Membership, Marketing & Program
David Gundersen
Makino, Inc.
Michael Biesk
Marshall Tool
602.269.6295
Thomas Moore
Moore Tool & Equipment
602.455.8904
Glen Zachman
North-South Machinery
602.466.2556
Pete Hushek
Phoenix Heat Treating
602.258.7751
Scott Sherman
Phoenix Metal Trading
602.257.4660
Jim Perlow
Quality Advisory Services
602.910.1510
Arlene Helt
Ryerson-Phoenix
602.455.3386
Dave Bolt
SBG Capital
480.897.4988
Ron Swartzbaugh
S&S Machinery
602.714.0116
Jane Rousculp
Samuel Aerospace Metals
602.721.0176
Frank Encinas
Semiray
602.275.1917
Russ Kurzawski
Star Metal Fluids LLC
602.256.2092
David Senkfor
Top Gun Consulting
602.510.5998
John Drain
Tornquist Machinery Co.
602.470.0334
Greg Burke
TW Metals
602.864.0014
Doug Pratt
Ulbrich Stainless Steel & Spec.
203.234.3464
Daniel Franks
Wells Fargo Bank
602.522.7805
Get Turned-On to the ATMA! Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org
PrecisionNews
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MANY THANKS
TO OUR 2011 ATMA MANY THAN VALUED SPONSORS!
TO OUR 2011 ATM VALUED SPONSOR
Micro-Tronics, 2905 S. Potter, Tempe, 85282
6/29 General Dinner Meeting 5:00-8:00pm at Phoenix 602.228.0347 Airport Hilton, 2435 S. 47th Street, Phoenix
22
602.242.4602
november/december 2012
MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!
Welcome! NEW REGULAR MEMBERS, ASSOCIATE MEMBERS AND VALUED SPONSORS!
Sierra Precision Products, LLC Mr. Erik Niemira 6150 Gila Springs Place #12 Chandler, AZ 85226 602.481.9582 866.733.1718 sierraprecisionproducts @yahoo.com
SBG Capital, LLC Mr. David Bolt 4939 W. Ray Rd. Chandler, AZ 85226 480.897.4988 dboltltng@cox.net (New Associate Member)
(New Regular Member)
Comerica Bank Mr. Kevin Draper 1 North Central, #1000 Phoenix, AZ 85004 602.417.1188 krdraper@comerica.com www.comerica.com
Get Turned-On to the ATMA!
(New ATMA Sponsor)
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Contact the Arizona Tooling and Machining Association and discover how you can put work 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
november/december 2012
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Feature Story // PrecisionNews
A PrecisionNews SPECIAL REPORT
ITIF Report Details 50 Policies to Improve
U.S. Manufacturing Competitiveness continued from page 15
The U.S. has a trade deficit with nearly every single one of the countries with which it has a trade agreement. I completely disagree with their recommendation to “Forge new trade agreements, including a high-standard Trans-Pacific Partnership and Trans-Atlantic Partnership.” As documented by Alan Uke in his book, Buying Back America, the U. S. has a trade deficit with nearly every single one of the countries with which it has a trade agreement. In fact, the U. S. has a trade deficit with 66 countries, the most egregious being the $278 billion deficit with China. Remember the touted benefits of NAFTA with Canada and Mexico? Well, in 2010, we had a trade deficit with Canada of $28 billion and $66 billion with Mexico. Do we want to increase our current trade deficit by adding more trading partners? Additionally, the report articulates four key themes that the authors believe should be viewed as essential components of a U.S. traded sector competitiveness strategy. They recommend that the following key themes must be embraced by U.S. policymakers if the United States is to restore its traded sector competitiveness (summarized): • The federal government must place strategic focus on its traded sectors, because it simply can’t rely entirely on its non-traded sectors to sustainably power the U.S. economy. • The United States needs become much more of an engineering economy because gains from engineering-based innovation are capturable and appropriable within nations.
Beyond federal policies to support traded sector competitiveness as a nation, the report also includes a section on recommended policies that states should implement to bolster their competitiveness, and in turn, the competitiveness of the broader U.S. economy. The state policy recommendations utilize the same “4Ts” framework as the federal recommendations. Ezell and Atkinson state, “Implementing the policies recommended in this report will make the United States a more attractive investment environment for traded sector enterprises and their establishments. The technology policies will help spur innovation in advanced manufacturing, upgrade the technology capacity of manufacturing and other traded sector firms, help restore America’s industrial commons, and support the productivity, innovation, and competitiveness of traded sector SMEs. The tax policies will stimulate a favorable climate for private sector investment by making the overall U.S. corporate tax code more competitive with that of other nations and also by leveraging tax policy to incent private sector R&D and investment.” In conclusion, they urge that U.S. policymakers understand that “manufacturing is not some low-value-added industry to be cavalierly abandoned.” Manufacturing is vital to U.S. competitiveness. I highly recommend reading all of this comprehensive, well-researched, welldocumented report to be able to evaluate all of their recommendations and benefit from the details that are the basis for each recommendation.
• The United States must move toward an economic system more focused on production than consumption, giving short-term consumption less priority in our politics. • The structure of the global trading system must be seriously restructured to ensure that it is a trading system based on marketoriented principles and not the “innovation mercantilism” that has risen in the last decade, which fundamentally hurts the U.S. competitive position while violating the spirit and often the letter of the World Trade Organization.
24
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november/december 2012
MICHELE NASH-HOFF is the President ElectroFab Sales and the author of Can American Manufacturing be Saved? Why We Should and How We Can, available at www.savingusmanufacturing.com or www.amazon.com
ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19
• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses
Contact Nichols at 480-804-0593 www.nicholsprecision.com
november/december 2012
arizonatooling.org
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PrecisionNews // NTMA -SAN DIEGO CHAPTER
MEMBER LISTINGS
SAN DIEGO CHAPTER 2012 BOARD OF DIRECTORS President TONY MARTINDALE Martindale Manufacturing Vice President and Treasurer HEATHER RUSSELL K-Tech Machine Secretary SEAN TILLETT Alphatec Spine Membership MIKE BROWN Computer Integrated Machining Past President MELINDA COLDWELL Cornerstone Machining, Inc.
BOARD MEMBERS Education Board Member John Riego de Dios Construction Tech Academy Member at Large Cliff Manzke Manzke Machine, Inc. Chapter Executive Tammy Tillett
OUR MISSION “To form an alliance within the San Diego region of the local machining and tool industry and to foster mutual success through education, technology, opportunity sharing and act as one voice with the government and the community.”
NTMA - San Diego Chapter 348 Saratoga Glen Escondido, CA 92025 Phone: 760.419.1393
REGULAR MEMBERS 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
David Stella*
Aerotek Commercial Staffing
619.278.3014
Sean Tillett
Alphatec Spine
760.494.6774
Peter Neville
B&H Tool Company Inc.
800.272.8878
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
Jim Piel
J I Machine Company, Inc.
858.695.1787
Joel Schuman
JS Manufacturing
760.940.1322
Heather Russell
K-Tech Machine, Inc.
760.471.9262
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
Mark Rottele
Roettele Industries
909.606.8252
Scott Cormony
Waterjet West, Inc.
760.471.2600
Hernan Luis y Prado
Workshops for Warriors
619.550.1620
Steve Grangetto
5th Axis
858.505.0432
*National Associate Members
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
PARTICIPATE. SPEAK OUT. LEAD.
PrecisionNews
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THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.
ntmasandiegochapter.org
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PrecisionNews // NTMA INITIATIVES
How Can NTMA Help You Grow Your Business? Profitability grows when revenue increases and costs are controlled. NTMA can help you with both. Though most of our members are small- to medium-sized companies, the power of the association can help you do business like a large corporation. REVENUE GROWTH • We organize regular business-to-business purchasing fairs, designed to operate like speed dating for suppliers. We invite 100 or more buyers from large companies and then give you opportunities to briefly pitch your products and services. As a result attendees leave with good contacts and solid leads, leading to increased business. Companies have been awarded millions of dollars in contracts as a direct result of these events. • We offer a program called Members First, designed to help members turn to each other to meet needs. Perhaps your next customer is an NTMA peer? Or perhaps an NTMA member would make an excellent vendor for you? Members First helps make the connections. • By interacting with fellow members in your local chapter, you may discover new business opportunities, or ways to work together with peers to increase business or market yourselves cooperatively. COST CONTROL • We offer discount programs with several large suppliers (including Grainger, UPS and Yellow Freight), allowing you to leverage NTMA’s combined buying power for your own benefit. • Our business insurance program keeps more money in your pocket by offering a necessary product in a low-overhead, notfor-profit manner. Our decision resources allow you to be smarter about how you use your resources, resulting in greater efficiencies and lower costs. Learn more at: www.ntma.org/initiatives
NTMA UPCOMING EVENTS NTMA 2012 Fall Conference > October 24-28, 2012 Location: Nashville, TN
WATER-JET CUTTING Providing...Tighter Tolerances / Minimal Machining Table Capacity of 120” Wide x 360” Long Up to 6” Thick Cutting Capacity
HIGH DEFINITION PLASMA BURNING
CONVENTIONAL PLASMA BURNING
Up to 5/8” thk Stainless & 1 1/4” thk Carbon Table Capacity of 120” Wide x 390” Long
Up to 6” Thickness Table Capacity of 132” Wide x 564” Long
Available Products... STAINLESS: 304H, 304L, 316L, 317L, 321, 347, 904L, 2205, 2507, 254-SMO, LDX 2101 CARBON: A35, W44, 514, 516-70, 572-50, 588, API-2H-G50 ALUMINUM: 5086, 5454, 6061, 7075, 7050, 2024
Range of Sizes... THK: 3/16” to 6” WIDTH: 48” to 120” LENGTHS: 96” to 528”
MFG 2013 - Manufacturing for Growth > March 5-8, 2013 Location: Hilton Waikoloa Village, Waikoloa, HI Visit: www.ntma.org
Value Added Services... LASER CUTTING, POLISHING, GRINDING, HEAT TREATING, SAW CUTTING, FORMING, ROLLING, SHEARING, BEVELING
1-888-726-6385
samuelplate@samuel.com
www.samuel.com A2Z METALWORKER
november/december 2012
arizonatooling.org
• 47 • -XO\ $XJ
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NORTH TEXAS 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 Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ long and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50# Dynamic Machine and Fabrication Corp. and Dynamic Centerless Grinding 3845 E. Winslow Ave., Phoenix, AZ 85040
(602) 437-0339 (602) 437-8947 fax
www.
dynamic-machine.com
CHAPTER 2012 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 WAYNE APPLEGATE Applegate EDM
BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works Bill Walter Ellison Technologies
THANKS
Micah Embrey CNC Precision/Shamrock-Bolt
2011 ATMA SPONSORS!
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 P.O. Box 541236 Dallas, TX 75354-1236 ntmanorthtexas.org Thanks to Our January- October 2012 General Meeting Hosts: Manda Machine Co., Ellison Technologies, Advanced Technology Complex, Shamrock Precision, Southern Machine Works, Applegate EDM, Indian Creek Golf Course, DFW Movers arizonatooling.org / 23
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PrecisionNews // NTMA -NORTH TEXAS CHAPTER
MEMBER LISTINGS REGULAR MEMBERS
ASSOCIATE MEMBERS
Vincente Chan
Aeroweld Technologies, Inc.
972.247.1189
Larry Ellison
AJR Metalworks, Inc.
214.352.3766
Wade Whistler
A.C.T. Precision Sheet Metal, Inc.
214.678.9114
Tommy Thompson
Bodic Industries
972.840.1015
Wayne Applegate
Applegate EDM, Inc.
972.488.8997
Lewis Lance
Bodycote Heat Treat
817.265.5878
Tony Woodall
AST Waterjet
972.554.0383
Rick Blair
Brook Anco Corporation
585.475.9570
Steve Ingersoll
Bailey Tool & Manufacturing
972.974.8892
Craig van Hamersveld
Campat Machine Tool, Inc.
972.424.4095
Michael Berdan
BE-Technologies, Ltd.
972.242.1853
Claudia Pautz
Castle Metals
972.339.5000
Christi Cameron
Cameron Machine Shop, Inc.
972.235.8876
Chris Simms
Champion Cutting Tool
516.536.8200
Jeff R. Spencer
Clay Precision, Ltd.
903.891.9022
Frank Vance
Frank J Vance
972.255.3925
Joseph Lodor
Commerce Grinding Company, Inc.
214.651.1977
Norm Williamson
H & O Die Supply, Inc.
214.630.6660
Robert McNamara
Davis Machine & Manufacturing
817.261.7362
Mike Johns
Haas Factory Outlet
972.231.2802
Charles Gilbert
DNS Tool Cutter Grinding, LLC
972.241.5271
Stephen Draper
Hartwig, Inc. - Texas
972.790.8200
Dena Kupiec
Elijah Tooling, Inc,
940.591.1340
Matt Curtis
Hillary Machinery, Inc.
972.578.1515
David Ellis
Ellis Tool & Machine, Inc.
903.546.6540
Rod Zimmerman
Iscar Metals, Inc.
817.258.3200
Rudy D. Kobus
Expert Tool & Machine, Inc.
972.241.5353
Randy Joyce
Joyce Engraving Company, Inc.
214.638.1262
Monte Titus
F& R Machine & Repair, Inc.
214.631.4946
Curtis Dahmen
Kaeser Compressors, Inc.
972.245.9611
Gary Fore
Fore Machine Company, Inc.
817.834.6251
Mark S. Holly
Machinists Tools & Supplies
214.631.9390
Mike Lee
Fort Worth Centerless Grinding, Inc.
817.293.6787
Leland McDowell
McDowell Machinery & Supply Co.
214.353.0410
Larry Borowski
Greenslade and Company, Inc.
817.870.8888
Pat McCurley
Midlothian Insurance Agency
972.723.5171
Oscar Guzman
Guzman Manufacturing
972.475.3003
Nicki Smith
MSC Industrial Supply
817.590.2637
David L. Hodgdon
H. H. Mercer, Inc.
972.289.1911
Ray Jones
MWI Inc. / Southwest Division
972.247.3083
Don Halsey, Jr.
Halsey Engineering & Mfg., Inc.
940.566.3306
Mike Chadick
North Texas Precision Instrument
817.589.0011
Cory Trosper
K & D Tool & Die, Inc.
972.463.4534
Reed Hunt
Reed Hunt Services, Inc.
817.261.4432
Keith Hutchinson
Lancaster Machine Shop
972.227.2868
Scott Devanna
SB Specialty metals
800.365.1168
Scott Cody
LSC Precision, Inc.
940.482.9700
Bob Severance
Severance Brothers
972.660.7000
Sammy Maddox
Maddox Metal Works, Inc.
214.333.2311
Alan VanHoozer
Top Tooling of Dallas, Inc.
972.278.8300
Todd Ellard
Manda Machine Company, Inc.
214.352.5946
Tom Beurkle
Traxis Manufacturing
512.383.0089
David Evans
Manek Equipment, Inc.
903.439.6414
Glenn Wise
Wise Machinery, LLC
817.905.9473
Rodie Woodard
Maximum Industries, Inc.
972.501.9990
Woodrow W. Thompson
Metal Detail, Inc.
214.330.7757
MANY THANKS
Allen Meyer
Meyer Enterprises
972.353.9791
Eddie Steiner, Jr.
O E M Industries, Inc.
214.330.7271
TO OUR NTMA-NORTH TEXAS SPONSORS:
Morris Padgett
Padgett Machine Tools, Inc.
254.865.9772
Troy Paulus
Paulus Precision Machine, Inc.
940.566.5600
Joe O’Dell
Plano Machine & Instrument, Inc.
940.665.2814
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
NEW! NEW!
BIL L OR M A C H IN E T OOL SE RVIC E
NTMA-NORTH TEXAS MEETINGS & EVENTS November 15, 2012 – Haas Factory Outlet December 2012 – No Meeting. Merry Christmas! January 2013 – Manda Machine Company
“The Power of Connections” november/december 2012
arizonatooling.org
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PrecisionNews // NTMA -SAN FRANCISCO CHAPTER
SAN FRANCISCO
MEMBER LISTINGS
CHAPTER
REGULAR MEMBERS 2012 BOARD OF DIRECTORS President DAVE BUTTNER ThermoFusion Vice President/Treasurer MICHELLE MYHRE R.M. Machining, Inc. Education Director DON CASTILLO FM Industries Membership Director PAT HAYES NORM FINK Communications
Jimmy Kim
3D Access Industries
510.668.1248
Ron Wegstein
Advanced Grinding, Inc.
510.536.3465
Tim Green
All Weld Machine & Fabrication Co. 408.946.5890
Fred Matter
Alloy Metal Products
925.371.1234
Robert P. Dathe
Benda Tool & Model Works, Inc.
510.741.3170
Jim Deemer
California Brazing
510.284.0283
Tony Castruccio
Custom Gear & Machine
925.455.9985
Dan McEachern
Dan McEachern Company
510.532.8228
Frank Dommen
Die & Tool Products Inc.
415.822.2888
Felix Q. Oramas, Jr.
E R C Concepts Company, Inc.
408.734.5345
Don Castillo
FM Industries, Inc.
510.668.1900
Alan Kalman
Kalman Manufacturing
408.776.7664
DeAnna Godfrey
McNeal Enterprises, Inc.
408.922.7290
Karen Myhre
R.M. Machining, Inc.
650.591.4178
Mark Serpa
Silicon Valley Manufacturing
510.791.9450
David J. Buttner
Thermo-Fusion, Inc.
510.782.7755
Doug Wright
True-Tech Corporation
510.353.1000
Bruce Tschida
Tschida Engineering, Inc.
707.224.4482
Dane Madsen
West Valley Precision, Inc.
408.519.5959
Ken Fusselman
Perry Tool & Research Inc.
510.782.9226
NILS KJELL
Welcome! SAN FRANCISCO NEW MEMBERS
OUR MISSION “Our mission is the advancement of machining and manufacturing businesses in the Bay Area, through collective effort and membership alliances.”
NTMA - SAN FRANCISCO BAY AREA 950 Terminal Way San Carlos , CA 94070 Phone: 510.782.7755 sfbantma.org
California Brazing
True-Tech Corporation
37955 Central Court Newark, CA 94560 Phone: 510.742.7114
4050 Technology Place Fremont, CA 94538 Phone: 510.353.1000
Jim Deemer, Machine Shop Manager jimd@californiabrazing.com
Doug Wright, Executive Vice President dwright@true-tech.com
YOUR NEW TOOL OF THE TRADE.
PrecisionNews
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THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.
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• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless,Served: aluminum, Industries plastics and exotics • Automotive • Aerospace • 8A Certified, Viet•Nam Vet, • Medical Firearms Minority Owned Small Business • Dept of Defense • Electronics • Eager to provide you with quality performance quick responses 2440 Cades Way,and Vista, California 92081 phone: 760.727.5228 fax: 760.727.0799
Contact Nichols at 480-804-0593 www.nicholsprecision.com www.cornerstonecnc.com
Manufactured with Pride in America!
www.SunGrindingUSA.com
For All Your Grinding Needs!
We have the largest centerless grinder in the state!
Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.
Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!
Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated. info@sungrindingusa.com / 522 E. Buckeye Rd. Phoenix, AZ. 85004
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Shop Floor NEWS FROM THE FRONT LINES
Do your employees receive the proper training to operate a forklift safely? Guidelines on training for Powered Industrial Trucks from THE ATMA SAFETY TEAM
Each year, more than 20,000 injuries related to powered industrial trucks (PITs), or forklifts, occur in U.S. workplaces. Many employees are injured when lift trucks are unintentionally driven off loading docks or fall between docks and an unsecured trailer. Other common injuries are caused when employees are struck by an industrial truck or fall from elevated pallets or tines. Most incidents also involve property damage, including damage to overhead sprinklers, racking, pipes, walls, and fyi: machinery. According to OSHA, Most employee most employee injuries and injuries and property property damage can be damage can be attributed attributed to lack of safe to lack of safe operating operating procedures, lack of procedures. safety rule enforcement, and - OSHA insufficient or inadequate training. OSHA rules are designed to prevent such injuries. Operator Training 29 CFR 1910.178(l) Employees must successfully complete a training program before operating a PIT. All operator training and evaluation must be conducted by persons who have the knowledge, training, and experience to train PIT operators and evaluate their competence. Training should consist of a combination of formal instruction (e.g., lecture, discussion, interactive computer learning, videotape, written material), Practical training (demonstrations performed by the trainer and practical exercises performed by the trainee), and evaluation of the operator's performance in the workplace.
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Refresher training: Refresher training and an evaluation of the effectiveness of that training must be provided when the employee operates the vehicle in an unsafe manner, has been involved in an accident or near-miss incident, is assigned to drive a different kind of truck, or there are changes in workplace conditions that could affect safe operation of the truck. An evaluation of each industrial truck operatorâ&#x20AC;&#x2122;s performance must be conducted at least every 3 years. Duplication of training: If an operator has been previously trained and has been evaluated and found competent to operate the truck safely, additional training is not required. Certification: The employer must certify that each operator has been trained and evaluated. The written certification record must include the name of the operator, the date of the training, the date of the evaluation, and the identity of the person(s) performing the training or evaluation.
Learn more at: www.osha.gov or www.atma.org
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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