Precision News November/December 2013

THIS ISSUE: Time Flies / Government Shutdown / Effective Communication / GHS-Ready or Not

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

ARIZONATOOLING.ORG NOVEMBER/DECEMBER 2013

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TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

Inside: COMMERCIAL AIR TRANSPORT OUTLOOK FOR 2014 THE PURCHASE OF NEW, MORE FUEL-EFFICIENT PLANES CONTINUES TO BE A BRIGHT SPOT IN THE AEROSPACE MARKET

TECHNOLOGY ADVANCES IN WIRE EDM VERY FEW THINK ABOUT WIRE EDM AND HOW IT HAS EVOLVED OVER THE PAST HALF-CENTURY

MAINTAINING ‘CREDIT’ABILITY WITH YOUR BANKER AN IMPORTANT LESSON IS THAT ACCESS TO CREDIT IS NOT A GIVEN starting on p.12

A SPECIAL PN MARKET PROFILE

TAKE FLIGHT / IN YOUR EVOLVING BUSINESS CLIMATE / BOOST RECOVERY AND PROSPERITY BY ENGAGING STABLE MARKETS

THE RESILIENCE ISSUE NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

LIABILITY

WORKERS

HEALTH

PROPERTY

AUTO

Employee Lawsuits Up 11.2% in California and Climbing...

Are you covered? Sky-rocketing expenses associated with employee rights violations such as discrimination, hostile work environment, sexual harassment claims, wrongful termination, infliction of emotional distress or stress and breach of contract have put many employers at risk. Even something as seemingly harmless as a not-so-funny text message to a company cell phone can get you into hot water with the EEOC. In a down economy, all companies — large and small, are exposed to a higher employment practices litigation risk. These lawsuits can have enormous defense costs even if a settlement or verdict is relatively low or in your favor.

In order to best protect yourself from costly verdicts, settlements and defense costs, give us a call for a free risk assessment and quote on Employment Practices Liability Insurance (EPLI).

Champion Risk & Insurance Services, L.P. is a proud supporter of the NTMA San Diego and the San Francisco Bay Area Chapters. We provide the NTMA Metalworkers’ Program, a group of competitively priced, specialty coverages that are essential to precision machining operations. This program is not offered by generalist brokers.

Contact Glenn VanNoy at 760-419-1393 or gvannoy@championrisk.net for a no obligation evaluation and consultation.

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Champion Risk & Insurance Services, L.P. An Affiliate of Wood Gutmann & Bogart Insurance Brokers

NOVEMBER/DECEMBER 2013 VOLUME 3 • ISSUE 6

Contents 12 16 30

Features

Departments

MAINTAINING ‘CREDIT’ABILITY WITH YOUR BANKER

03 President’s Letter 04 Policy Matters

During the great recession of 2008/09, we learned many painful lessons. One of those was that access to credit is not a given.

08 People Power

COMMERCIAL AIR TRANSPORT OUTLOOK FOR 2014

19 NTMA Initiatives

The commercial air transport market continues to be the bright spot in the overall aerospace market. Airlines are buying new and fuelefficient airplanes to replace the gas-guzzlers that they currently have in their fleets.

TECHNOLOGY ADVANCES IN WIRE EDM

20 Websites that Work 20 Arizona Chapter Info 26 San Diego Chapter Info 27 NTMA Membership

When one starts to think about the recent technology advances in manufacturing, very few think about the wire EDM and how it has evolved over the past fifty years or so.

28 North Texas 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 and North Texas EXECUTIVE DIRECTOR & EDITOR Chris Mignella

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CONTRIBUTING WRITERS ATMA Safety Team, Sergio Cecutta, Dante Fierros, Margaret Jacoby, PN Editors, Omar S. Nashashibi, Ted Szaniawski, Brent Terhaar ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL, ADVERTISING & ADDRESS CHANGES Chris Mignella, Executive Director & Editor Phone: 602.388.5752 Email: ExecutiveDirector@arizonatooling.org

Precision News is published bi-monthly by the Arizona Tooling & Machining Association (ATMA). Opinions expressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes no liability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork.

Reproduction in whole or part without the expressed written consent from ATMA is prohibited. Precision News is the registered trade name of this publication.

Copyright ©2013 by ATMA. All rights reserved.

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Consolidated Resources, Inc. Industrial Recycling Specialists

• Aluminum • Nickel • Stainless Steel • Copper • Brass • Titanium • Aerospace Alloys

• Glass • Wood • Plastic ATMA M EMBE R • Paper • Cardboard • Certified Material Destruction • All Ferrous Grades

20th

Anniversary

Call Kerry 623.931.5009

kerry@consolidatedresources.com

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Consolidated Resources Inc. 4849 West Missouri Glendale, AZ 85301 Office: 623.931.5009 Fax: 623.931.5852 www.consolidatedresources.com

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First Word PRESIDENT’S LETTER

Time Flies Time flies when you’re having fun… as the saying goes and it has been most rewarding and fun being your President for the past 2 years. This is my last President’s letter to be presented during my term of office and the next one you read will be from our incoming President, Mr. David Lair. David starts his tenure in January and you will be most pleased with his vision and professionalism, I am sure. . . .. ..

Attending our upcoming Focus Group meeting in November will provide you an opportunity to hear more details from David regarding his vision and it will also afford you an opportunity to help structure that vision as we come together to formulate new directions and programs for 2014 and beyond.

What has struck me the most in the last two years is the breadth and depth of the capabilities our members bring to our association. I cannot think of a capability that isn’t provided by our member companies to our industry.

I have learned a lot from you and your good council. We have also shared work between us, helping our respective companies when one was “over-loaded” or “under-utilized” at the moment.

Those that know me understand that I like “bullet points” so here are some key points I would leave with you to ponder.

Those that have been involved in the ATMA association already know what we have accomplished in the past 2 years so there is no need for me to reiterate them here.

These accomplishments would not matter much to those that are not involved in any case.

The more you are involved in the ATMA, the more you receive in some positive way.

Please add your voice to our future…our association needs it, our State needs it and certainly, our country needs it more than ever.

DANTE O. FIERROS President 480.804.0593 office 602.980.1907 cell dante@nicholsprecision.com

Manufacturing is not only the back bone of our economy, it is the one way in which we will get out of the economic doldrums we are in today. If you have been noticing, many State organizations have been doing great things to help manufacturing. I urge you to take notice, make your inputs and get involved for all our good.

I leave you as the current President but will become your Trustee and member of your Board of Directors. I wish you, your companies and your families all the very best of good fortune.

Respectfully, Dante O. Fierros President

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Policy Matters BECOME A VOICE FOR CHANGE

Government Shuts Down,

But Manufacturing Goes On

by OMAR S. NASHASHIBI

National parks closed; brides delayed weddings; and so much uncollected trash accumulated on the National Mall in Washington, D.C. that tourists took note of the vermin infestation – often referring to the politicians in Congress. These are just a few of the publicly visible consequences of Republicans and Democrats in Washington not being able to do their jobs.

However, less public disruptions had a much greater impact on the economy than tourists locked out of a Smithsonian museum. Manufacturers of all sizes, small and big alike sure felt the impact, even if their stories did not grab headlines during the October government shutdown.

The Small Business Administration (SBA) furloughed more than 2,100 employees or roughly nearly two-thirds of its workforce, the Treasury Department suspended 88% of its workers including 90% of IRS employees, and the Department of Commerce told 87% of its 16,304 employees to stay home. Between shutdowns at Commerce and the Office of the U.S. Trade Representatives,

American negotiators were not able to make trips overseas to continue work on key trade agreements pending between the U.S. and its allies.

Several members of the National Tooling and Machining Association (NTMA) reported SBA loans put on hold, suppliers to the defense industry saw contracts delayed, and manufacturers experienced disruptions up and down the supply chain.

A military ammunitions contractor reported their customer’s SBA loan was delayed meaning they couldn’t ship parts to the business. Another NTMA member is experiencing a forty percent growth in business this year, allowing the company to expand its market share, increase production, and hire employees. However, with their SBA loan on hold the business nearly stopped in its tracks and risked losing the customers they just gained.

The shutdown affected more than just financing for manufacturing operations. As usual, downstream suppliers feel the pain more than their larger customers. For

fyi: It is too soon to tell the extent the shutdown led to a slowdown, but early estimates are troublesome.

Manufacturing in America continues to expand at a healthy pace... +

Photo: NTMA

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example, Lockheed Martin had expected to furlough roughly 3,000 employees across twenty-seven states. United Technologies had planned to furlough nearly 2,000 workers prior to a Pentagon announcement to no longer furlough as many of their own workers and contracting officers.

It is too soon to tell the extent the shutdown led to a slowdown, but early estimates are troublesome. Manufacturing in America continues to expand at a healthy pace with factory activity increasing to 56.2 in September up from 55.7 in August according to the Industry for Supply Management (anything over 50 is considered manufacturing expansion).

However, a noted economist said the nation’s economic growth could contract by .3% due to the shutdown, in large part because 800,000 government employees did not receive paychecks on time reducing their ability to spend on consumer products, make timely mortgage payments, and travel for business or leisure. continued on page 06

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

Contact the Arizona Tooling and Machining Association and discover how you can put your unique skill-set to work in Arizona and give your company the Competive Edge.

ATMA

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

PRECISION

executivedirector@arizonatooling.org

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Policy Matters

Government Shuts Down, But Manufacturing Goes On continued from page 04

While Republicans and Democrats continued to point fingers at one another, manufacturers spent their time creating jobs, growing the economy, and continuing to bring attention to manufacturing in America. NTMA worked with its member companies to support the Second Annual Manufacturing Day on October 4.

Manufacturers around the country opened their doors to students, elected officials, and community leaders to help promote the industry.

Meanwhile, back in Washington, politicians on Capitol Hill and in the White House continued their posturing and bickering.

The shutdown grabbed the headlines but to their credit, behind the scenes, Congressional staff did their best to continue working on issues important to manufacturers. In our meetings on Capitol Hill during the shutdown, we saw most offices operating at 30-50% of capacity, with some offices filled with only a Chief of Staff and two volunteer interns.

Throughout the country, manufacturers showcased the career opportunities available and the role businesses play in the local economy. In one region, NTMA members were among twenty-six companies participating in Manufacturing Day, with six hosting tours. Among the 600 people attending were 460 high school students, which allowed employers to promote manufacturing careers to the next generation.

While government spending and Obamacare will continue to dominate the media spotlight in the next few months, there remains some hope Congress can move forward on some of the priorities for manufacturers. This is why we had no choice but to continue our lobbying efforts on tax reform with Senate Finance Committee and other staff deemed “essential” and reporting to work – even while the government was “closed”.

MAKE YOUR VOICE HEARD ON CAPITOL HILL! For additional information, please visit

www.metalworkingadvocate.org or contact the NTMA at 800.248.6862

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In my previous article, I discussed this “Do Nothing Congress” possibly doing something. In a way the prediction proved correct, in doing nothing, they certainly did something – shut the government down and disrupted operations for thousands of manufacturing businesses.

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

Too Busy To Protect Your Business?

Even the best businesses can have claims. Contact your local Federated representative to lear learnn more about risk management resources, like theft prevention strategies, designed to help prevent your profits from being stolen.

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People Power YOUR MOST VALUABLE RESOURCE

EFFECTIVE EMPLOYEE COMMUNICATIONS CRITICAL TO PERFORMANCE

by MARGARET JACOBY, SPHR

Effective communication is a must for all leaders.

Good communication builds a sense of community among employees by letting them in on the business of the business and more importantly, it addresses issues of poor or non-performance.

It is important for employees to understand why the business was established. The Mission Statement can answer the questions - What do we do? How do we do it? And for whom do we do it? The Mission Statement serves as a reminder of the purpose of the business, and gives employees a sense of where they fit and how their job moves the company forward toward those objectives.

Employees are not mind readers. They need clear, precise directions, instructions, and expectations from supervisors and management. Several printed communication channels are useful here in addition to how supervisors and managers verbally communicate with employees.

Handbooks are the primary channel for describing expectations. A well-written handbook tells employees how to behave in the workplace and sets forth consequences for failure to meet those expectations. Handbooks also inform employees of what they can expect from the company in exchange for their work—benefits, holidays, vacation, overtime, etc. Communicate clearly to reduce liabilities through misunderstandings of mutual expectations.

While not as obvious a tool as the handbook, Performance Reviews communicate how well or how poorly each employee is performing and meeting company expectations. A timely, well-written review says, “We value you and your contributions and here are some areas we can work on together to improve your performance and the company’s success.”

Postings, those required by state and federal laws, and company-specific postings addressing successes, celebrations, new products, expansion efforts and other notices of the company’s level of performance go a long way toward reducing anxieties many employees face in a volatile economy.

Finally, Job Descriptions communicate the expectations in terms of tasks and responsibilities for each position. Employees are not forced to guess what they are to do to meet individual and company objectives. By doing the right tasks, the goals of the individual, department and division can be met.

Aside from one-on-one personal communication, company-wide communication is necessary to keep the workforce engaged and informed, thereby increasing productivity and improving performance.

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 Hidden Reason of Employee Nonperformance The hidden reason for employee nonperformance is not complicated --- it’s most often the lack of effective communications on the part of supervisors/managers. This can be revealed in three ways. “How” you communicate with your employees, “Why” you communicate with them and “What” you are communicating about.

PHOENIX METAL TRADING, INC.

When communicating “How” we expect things to be done, we tend to communicate in our own preferred communications style --but that can be at odds with the favored style of our workforce members nearly 50% of the time. As a result, employees often don’t really “hear” what you’re saying. They may not grasp your message and therefore may not perform as you expect them to.

Industrial Scrap Specialists

The “Why” of communications is straightforward. Today’s workforce wants to understand the logic behind what they are expected to do. The old axiom of “Don’t ask!! . . . Just work harder and faster!!” doesn’t cut it. Today’s workers want to be a part of the overall team; they want to understand why their role is important to successful performance. Supervisors/managers must explain the “Why”.

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.

The “What” pertains to each specific task that is required in order for superior performance to be attained --- the technical processes and procedures that must be adhered to. But there is another perspective linked to “What” that supervisors/managers should be communicating about.

A recently updated poll of employees and supervisors/managers revealed that they continue to look at employee “needs” quite differently. Employee’s stated needs are not ranked at all the same as the ranking supervisors and managers identified as most important to employees.

It’s clear “What” employee’s desire!! They want communication addressing their top three needs. And supervisors and managers should understand that their view of employee needs is up-sidedown. If they don’t recognize and deal with this reality they will feed, not fix, employee nonperformance.

OUR MISSION:

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

To address employee nonperformance, consider the “How”, “What” and “Why” of your communications. These three steps can result in a remarkable positive impact on employee performance!

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

602-257-4660 www.phxmtl.com SCRAP METAL RECYCLING SINCE 1989 • ATMA MEMBER

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PrecisionNews // EDUCATION FOCUS

ONLINE ON-LINE

U

THE SMART WAY TO TRAIN YOUR WORKFORCE

The SMART WAY to TRAIN your WORKFORCE Achieve your Workforce Development Goals Unparallel levels of Training and Convenience WORKFORCE DEVELOPMENT - APPRENTICESHIP TRAINING – COLLEGE CREDITS NTMA Member cost of $449.00 and $100 in textbooks (these textbooks will be used for two Semesters Non-NTMA Member cost: $2,000.00 plus $120 in textbooks.

Demo of NTMA-U can be found on the NTMA website at: http://NTMA.org

We will work with your employees to insure that your Workforce Training requirements are achieved while they learn essential skills On-Line We will be using over 300 Tooling-U Modules, Plus Hundreds of Learning Videos We will offer. One-on-One Instructor access, plus National Manufacturing Best Practices. Federal Bureau of Apprenticeship Training Approved For More Information Contact: NTMA Vice President Ken McCreight: 216-264-2834 E-Mail: Kmccreight@NTMA.ORG

THE SMART WAY TO TRAIN YOUR WORKFORCE National Precision Machining Apprenticeship Training (Total 600 Hours)21 College Credits Awarded Upon Completion

SEMESTER 1 (100 HOURS) INTRODUCTION TO MACHINING / BASIC SHOP MATH / BASIC BLUEPRINT READING A foundation for study of manufacturing methods, processes, related equipment, and tools of industry, shop safety practices, job planning, feeds and speeds, layout tools and procedures, hand tools and bench work, metal cutting saws, drilling machines, lathes, milling machines, jig bore and jig grinder, surface grinder, E.D.M, and abrasives. Blueprint Reading-related to the manufacture of a working part, lines, views, dimensioning, calculating cutting planes, fraction to decimal conversion, practical and applied basic shop math, constructing a sketch of an engineering drawing, auxiliary sections, symbols, and broken lines.

SEMESTER 2 (100 HOURS) INTERMEDIATE MACHINING / INTERMEDIATE APPLIED SHOP MATH / INTERMEDIATE BLUEPRINT Provides skills in layout techniques and operations, including calculating bolt hole circles, location of surfaces related by non-right angle triangles, and points of tangency and other related applied shop mathematics. Included is all learning outcomes that are necessary to successfully layout drawing by understanding the proper views from an actual part. Continues with a foundation for study of manufacturing methods, processes, related machining equipment, and tools of industry, requiring the student to understand shop safety practices, job planning, feeds and speeds, precision measuring and layout tools and procedures, hand tools and bench work, metal cutting saws, drilling machines, lathes, milling machines, jig bore and jig grinder, surface grinder, E.D.M, and abrasives.

SEMESTER 3 (100 HOURS) INTRODUCTION TO CNC / ADVANCED APPLIED SHOP MATH / ADVANCED BLUEPRINT Computer applications to machining processes. Engineering drawing analysis, using trigonometry to determine programming points; ascertaining implied part dimensions; determinations of machining parameters; calculation of speeds; feeds and tool offset; establishment of work zero and tool home positions. Manual programming of CNC machines using G-codes; tooling and set-up of CNC operations; verification of toolpaths by simulation. Program upload/download, proper collets and guide bushing setting and adjustment, turning tools setting, milling tools setting, ID tools setting, proof running, first part cutting techniques.

SEMESTER 4 (100 HOURS) CNC OPERATIONS / SHOP MATH / BLUEPRINT READING/GDT CNC machine controls, setting tools, programming and operations of CNC, and machine limits and capabilities. Fundamentals of work planes and the process of setting work planes, fixture offset, determining work offset shifts, input work offset shifts, writing a CNC mill program. Advantage of using canned cycles in CNC mill manual part programming. Codes and information required to program CNC mill canned cycles. Writing a simple CNC mill program using canned cycles, subprograms, the commands and rules for creating and processing subprograms. The advantages of using subprograms. Writing CNC mill programs using subprograms.

SEMESTER 5 (100 HOURS) SPC / MFG PROCESSES SPC- Quality tools used to solve problems determined by SPC data collection process, basic statistical parameters, interpret variables and attribute control charts, Interpret process capability, measurements of central tendency and variability, descriptive Analysis of Data, Control Charts for Variables Data and attributes. Job Planning and Control Mfg systems, job flow and decision making, specialty tooling and materials. Metallurgy and Composites. The basics of steel manufacturing, the elements used to create steel and steel alloys, the main types of ferrous materials and their properties, and the common tests used to measure metal properties SEMESTER 6 (100 HOURS) ADVANCED MANUFACTURING PRACTICES AND PROCEDURES Additive Mfg, Specialty Steels, Advanced manufacturing technologies, processes, performance objectives in modern manufacturing, increased output and quality by integrating the right tools. Jig and Fixture building, CNC, PLC, automation, and software. Calculations of critical performance objectives. The 5S tool used for organizing and maintaining the workplace: Sort, Straighten, Shine, Standardize, and Sustain. properties, elements, and types of ferrous materials commonly employed in metal manufacturing.

THE PrecisionNews NATIONAL TOOLING & MACHINING ASSOCIATION — WWW.NTMA.ORG arizonatooling.org november/december 2013 10

Manufacturing in Arizona for over 46 Years Providing precision machining and Industries Served: fabrication of diverse parts and assemblies • Automotive • Aerospace • Medical • Firearms • Dept of Defense • Electronics Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries Our Quality System is conforming to AS9100C and working towards registration by year end 2013 2440 Cades Way, Vista, California 92081 Facility Recently Expanded phone: 760.727.5228 fax: 760.727.0799

Equipment Capacities range up to HR-4R HAAS www.cornerstonecnc.com 4-Axis Horizontal Milling Center @ 150�x 66�x 48� and Ikegai VTL CNC Lathe @ 0/ 55� Diameter

to Over 36,000 Sq. Ft. Centerless Grinding Capacities ranges from 0/ 1/8� up to 0/ 1-1/2� in Lengths up to 14’ long and 0/ 1-1/2� to 0/ 3� RD with Weight Maximum of 50#

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www.dynamic-machine.com Manufactured with Forward Pride in America!

We’re Looking to Meeting and Exceeding Your Expectations!

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Feature Story // PrecisionNews

STORY BY BRENT TERHAAR

Maintaining CREDITability with Your Banker As human beings, we have short attention spans and even shorter memories.

Take a minute and think about all the things running through your head as you read this article: your to-do list, the emails popping up on your computer, the phone ringing, people talking outside your office, and a myriad of other issues in your business and personal life. All of those distractions can keep us from learning from the past so we can apply it to the future.

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During the great recession of 2008/09, we learned many painful lessons. One of those lessons was that access to credit is not a given.

In a recent survey of over 350 manufacturers that CliftonLarsonAllen conducted, over 77% of respondents indicated that the availability of capital over the past two years has not impaired growth. That is certainly a shift compared to the industry sentiment a few years ago. As business improves and credit markets start to open up, we cannot lose sight of the situations that created those painful memories of the past.

How can you change your actions to not only enhance credibility but also maintain CREDITability with your banker? The following are a few ideas on what you can do.

Don’t Overlook the Balance Sheet Most business owners don’t spend a lot of time fretting over their financial statements or understanding all the nuances displayed on your financial reports. However, in a banking situation, the financial results, and a banker’s confidence in your knowledge of your current and future state, are critical. Management teams often dedicate most of their attention on the income statement, but when working with banks, the balance sheet is equally important.

Understanding how a banker reads your balance sheet to determine your credit worthiness should not be overlooked. Bankers are trying to answer a few basic questions when they look at your balance sheet: • Do you have enough strength in your balance sheet to weather some less-thanperfect times and still pay them back?

• Do you have enough collateral to support the size of the loan and is that collateral accessible?

• Do you have enough skin in the game?

To answer these questions, they look at several ratios like debt to equity, current ratio, aging of work-in-process and accounts receivable.

Putting a renewed focus on the health of your balance sheet and actively managing it can pay significant dividends when dealing with the bank.

Be Active in Shaping Your Financial Covenants Too many business owners are somewhat passive in shaping the financial covenants outlined in their credit facilities. As a banker evaluates the credit worthiness of a lender, they prepare a risk profile to understand their ultimate risk in lending you money. Covenants are merely a safeguard that banks use to set limits to ensure their customers don’t operate outside of the bank’s risk threshhold. continued on page 14

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Having a healthy conversation with your banker about their interpretation of risk and ultimately their scorecard related to that risk can be an eye opening experience for both parties.

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Maintaining CREDITability with Your Banker continued from page 14

Influencing your covenants begins with an understanding of how your banker views your risks. Having a healthy conversation with your banker about their interpretation of risk and ultimately their scorecard related to that risk (i.e. covenants) can be an eye opening experience for both parties. A business owner will learn more about what the banker knows (or doesn’t know) about his or her company and can use that discussion to better educate the banker on the business. In addition, the banker may learn more about the company that could mitigate their risk on lending to your company. In addition, there may be planned or anticipated events (i.e. capital improvements, recapitalization, potential acquisitions, etc….) that could be hindered by the covenants you have in place. Understanding how your financial results could change with these events is an important exercise as you’re negotiating and agreeing to the banker’s covenants.

Acceptance of Personal Guarantees Personal guarantees are frustrating for owners. Bank debt was meant to be a means of mitigating personal investment and risk, but having a personal guarantee makes it feel like just the opposite. The owner is still on the hook for most if not all of the debt. Unfortunately, personal guarantees are going to be required in most cases.

There can be a silver lining in this otherwise disappointing situation.

Just like the covenant conversation, be active in your discussions regarding personal guarantees. If you have an open conversation with your banker regarding the level of security they need to underwrite your loan(s), there may be an opportunity to reduce your exposure to personal guarantees. It is easy for a banker to ask for an allencompassing personal guarantee from a business owner. There may be an opportunity to limit your exposure by negotiating to a maximum amount (a ceiling) or to specify which personal assets are subject to a guarantee (perhaps a specific stock portfolio or other category of assets).

Having a banker justify their rationale for the level of personal guarantees is a healthy topic for discussion. Just like the covenant issue noted above, banks are looking to mitigate their risk and ensure they have enough protection if your loan is not repaid. Gaining this knowledge will help you better understand your position with the bank.

This understanding may help you build a logical case to adjust the requirements the bank has to lending you money.

Nobody Likes Surprises Just like any good marriage counselor will tell you, communication is the key to a healthy relationship. This is especially true with a banker.

A great way to lose credibility with your banker is to surprise them with unexpected financial results. These surprises put the banker in a difficult position when they’re trying to be your advocate in front of their credit committee. It will also likely make them double clutch on trusting you or the information you provide in the future.

Most good bankers understand and can appreciate the normal business cycles manufacturers go through. Keeping your banker up to date on the status of the business (both good news and bad news) is a critical component of earning their trust. The ability for a business owner to anticipate, communicate and properly react to a downturn can build a lot of goodwill with a banking partner. The key is to be honest about your current situation and provide a well thought out game plan on how you’re going to react. It does not do you any good to put a plan together that is unattainable – again you will lose credibility with a lender because their impression is that you don’t have a realistic view of the situation.

Be methodical in your approach and seek their advice on how best to weather the storm. More often than not, these discussions can build your banking relationship and provide you ideas or insight you might not be thinking of.

The past is a funny thing. You cannot change it, but you can learn from it and change how you do things in the future. As the philosopher George Santayana once said, “Those who do not remember the past are condemned to repeat it.” As human beings, we are typically wired to forget past events unless they’re really happy memories or very painful memories. Taking what you’ve learned from the credit crisis a few years ago and changing your approach to dealing with your banker will hopefully create memories that you want to remember.

BRENT TERHAAR is a Principal in the Manufacturing and Distribution group of CliftonLarsonAllen. Brent can be reached at 888.529.2648 or brent.terhaar@CLAconnect.com. To learn more about CliftonLarsonAllen, visit www.CLAconnect.com.

CliftonLarsonAllen is one of the nation’s top 10 certified public accounting and consulting firms. Structured to provide clients with highly specialized industry insight, the firm delivers assurance, tax and advisory capabilities. CliftonLarsonAllen offers unprecedented emphasis on serving privately held businesses and their owners, as well as nonprofits and governmental entities. The firm has a staff of more than 3,600 professionals, operating from more than 90 offices across the country. For more information about CliftonLarsonAllen, visit their website at: www.CLAconnect.com

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Commercial Air Transport Outlook for 2014 The good times keep on rolling

BY SERGIO CECUTTA

The commercial air transport market continues to be the bright spot in the overall aerospace market. The airlines, driven by the continuous increase in the cost of fuel, are buying new and fuel-efficient airplanes to replace the gas-guzzlers that they currently have in their fleets. The 20% average fuel burn savings on the new airplanes is pushing airlines to continue to take delivery of new airplanes even when their revenues have been suffering.

Airbus and Boeing continue to represent the lion share in deliveries and orders for this market and 2014 will continue this trend. The regional aircraft market remains stable but these aircrafts are not showing the same strength of the larger commercial airliners. Airlines clamoring for more efficient aircrafts are fueling the demand for Boeing 787, 737 MAX and for Airbus A350 and A320 NEO.

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A PrecisionNews MARKET PROFILE Airbus A318

Widebody Airliners Market At the top of the market, the large four-engined Boeing 747-8 and Airbus A380 are feeling the impact of fuel prices. Their production is very low, with Airbus producing 25 aircrafts per year after a recent cut from 30. There are talks of additional reductions in output, in line with Boeing forecasts, due to the limited amount of orders – both Boeing and Airbus received no orders on their top of the line airliners in the first half of 2013 – and limited backlog – Airbus with 148 A380 and Boeing with 55 747-8.

The middle of the market looks instead completely different. The Boeing 787 and 777 families and the Airbus A350 are a resounding commercial success. Boeing is currently producing 10 787 per month with 3 of them coming from the Charleston facility by the end of 2013 or the first quarter of 2014. On the development side, Boeing celebrated the first flight of the 787-9, the second member in the 787 family, that is expected to enter into service in the middle of 2014 with Air New Zealand. During 2014 Boeing will also dedicate its development resources to the definition of the last born in the 787 family, the 787-10. On the 777 side, Boeing continues to enjoy success in orders and deliveries. With a production of 8.3 aircrafts per month continuing in 2014, the 777 will see the arrival of the next generation with the expected launch of the 777-9X and 777-8X. Lufthansa signed this year to become the launch customer of the 777-9X with an order for 34 aircrafts valued at over $11B. The 20% fuel burn improvement will see the airline retire all the remaining 747-400 they still operate.

Airbus responded to the Boeing 787 and 777X with the first flight of the A350-900 that will start deliveries to the launch customer Qatar Airways during the first half of 2014. Airbus forecasts a production rate of 10 A350 per month as soon as the ramp up is completed with a possible production increase up to 13 per month. Next year will also see Airbus continue the development work on the next versions of the A350 on their plate, the A350-800 and the A350-1000, slated to enter service respectively in 2016 and 2017. In the meantime the production of the A330 continues at a strong 10 airplanes per month in 2014 from a backlog of 260 airplanes.

Narrowbody Airliners Market On the narrowbody side, both Airbus and Boeing continue to deliver jets at unprecedented rates, working from significant backlogs of 1,912 Boeing 737 NG and 1,879 Airbus A320 (as of April 2013). Boeing plans to increase the 737NG production rate from 38 to 42 per month by the second quarter of 2014 and could go even higher. The new Boeing production rate will match the A320 current production that will remain at a stable 42 airplanes per month throughout 2014. Airbus has declared that they will look at a further increase in the production rate only around 2018, once the A320 NEO has been phased in.

The A320 NEO and the Boeing 737 MAX are the next generation of narrowbodies that the airframers will develop during 2014 in preparation for their respective entry into service in 2015 and 2017.

They promise increased efficiency and reduced fuel burn and have amassed large backlogs of 1,495 Boeing 737 MAX and 2,348 Airbus A320 NEO (as of July 2013).

In this market space we do not have to forget a new important entrant, the Chinese COMAC C919. With 380 orders in its backlog, the airplane development will not yet reach the production phase in 2014.

The first flight is currently scheduled for 2015 with an entry into service in 2016.

Regional Jets Market The regional market has been the segment in the commercial air transport market impacted the most by the effects of the economic downturn.

Embraer cut the production rate of its ERJ regional jets by 40% at the beginning of the global economic crisis in 2008 to about 8 per month.

In 2014 Embraer is taking a cautious approach and has no plans to raise production any time soon past the 90/95 airplanes they plan to produce out of their backlog of 131 ERJs. On the development side, the company is working on its next generation of regional jets, the E2, slated to enter service with SkyWest Airlines in 2018. The new airplanes have a 16%-23% better fuel burn and have accumulated a backlog of 150 orders (as of September 2013).

Bombardier will continue the production of the CRJ regional jets at a rate of 1.6 per month in 2014 from a backlog of 102 airplanes (as of March 2013). The resources of the company are concentrated on the development of the CS100 airplane that, after a successful flight in September 2013, will enter service with Swiss Airlines in the second half of 2014. The company has 63 CS100s on order and 114 of the larger CS300.

To conclude our look at the regional jets market, Mitsubishi has announced further delays of the first flight of the MRJ family of regional jets, pushing the date back to 2015 with an entry into service expected in 2017 with ANA.

SERGIO CECUTTA is a former Honeywell and Danaher executive and the founding partner at SMG Consulting LLC, a business consulting firm specializing in serving the strategy, business development, marketing and finance needs of companies in Aerospace, Defense, Medical Devices, Clean Tech, Energy and SW Services.

Learn more at: www.smg-consulting.com

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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

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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5/17 Board of Directors Meeting 11:30-1:00 at Steve Piotter MSC Industrial Tool Phoenix 480.755.0415 at Phoenix Heat Treat, 2450 W. Mohave,

602.257.4660

Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

22

480.884.4504

UPCOMING at Phoenix Heat Treat, 2450 W. Mohave, Phoenix Wells Fargo 480.348.5114 Allen McDougall :H VSHFLDOL]H LQ SODFLQJ VNLOOHG SHUVRQQHO IRU PDFKLQLVW

Combined Membership, Marketing & Program 5/12 ATMA EVENTS! Aerotek 607.725.9418 Austen Miller Meeting 11:30-1:00 PDLQWHQDQFH PHFKDQLF DQG RWKHU VNLOOHG WUDGHV SRVLWLRQV at Foresight Technologies,

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

Get Turned-On to the ATMA!

602.417.1188

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november/december 2013

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Welcome!

NEW MEMBERS

West Pharmaceutical Services, Inc. The Tech Group Mr. Todd Kuhn 14677 N. 74th Street • Scottsdale, AZ 85260 phone: 480.281.4500

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(New Regular Member)

Landmark Precision Manufacturing Mr. Brian Walski, President-CEO 4148 West Venus Way • Chandler, AZ 85226 phone: 480.940.4002 brianw@landmarktg.com (New Regular Member)

NTMA UPCOMING EVENTS 2014 The MFG Meeting Arizona Biltmore, Phoenix, AZ March 5-8, 2014

VISIT:

NTMA.ORG 800-248-6862

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ATMA EVENTS in NOV/DEC 2013 November 2013 Safety Meeting > 11/12 @ 11:30-1:00pm @ (MicroTronics) FOCUS ON THE FUTURE, Annual Planning Meeting 11/14 @ Native New Yorker Board of Directors Mtng > 11/19 @ 4:00pm @ (MicroTronics)

MAKE YOUR VOICE HEARD ON CAPITOL HILL! For additional information, please visit

>

December 2013 ATMA Holiday Dinner at RAWHIDE > 12/6 Precision News Articles/Ads due for Jan/Feb ’14 Issue > 12/9 For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

Arizona Tooling & Machining Association

www.metalworkingadvocate.org or contact the NTMA at 800.248.6862

ATMA PRECISION november/december 2013

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PrecisionNews

23

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

• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses

Contact Nichols at 480-804-0593 www.nicholsprecision.com

24

PrecisionNews

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november/december 2013

• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses

Contact Nichols at 480-804-0593 www.nicholsprecision.com

ONE STOP SHOP

Are you looking for?

ELECTROLESS NICKEL BRIGHT NICKEL PASSIVATION CHEM FILM - CLEAR OR YELLOW COPPER or CHROME PLATING POWDERCOATING POLISHING GLASSBEADING VIBRATORY DEBURRING or FINISHING ULTRASONIC CLEANING PRE & POST BAKE STRESS RELIEVE PAINT/NICKEL/CHROME STRIPPING Pick up and delivery upon request.

L.A. SPECIALTIES, INC. 4223 North 40th Avenue, Phoenix, Arizona 85019

602-269-7612 barry@laspecialties.com • www.laspecialties.com Please feel free to contact us. We will be happy to assist.

www.SunGrindingUSA.com

For All Your Grinding Needs!

We have the largest centerless grinder in the state!

Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.

Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!

Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years.

We are the leading surface grinding shop in Arizona.

Family owned and operated. info@sungrindingusa.com / 522 E. Buckeye Rd. Phoenix, AZ. 85004

32 /

november/december 2013

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arizonatooling.org25 / 19 PrecisionNews

PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

SAN DIEGO CHAPTER

2013 BOARD OF DIRECTORS President SEAN TILLETT Alphatec Spine Vice President CLIFF MANZKE Corporate Secretary and Treasurer HEATHER RUSSELL K-Tech Machine Membership MIKE BROWN Computer Integrated Machining Past President TONY MARTINDALE Martindale Manufacturing

BOARD MEMBERS

REGULAR MEMBERS Terry Deane

Advanced Machining and Tooling

858.486.9050

Sean Tillett

Alphatec Spine

760.494.6774

Peter Neville

B&H Tool Company Inc.

800.272.8878

Alejandra Rogue

BMW Precision

760.439.6813

Lyle Anderson

C&H Machine and EDM Services

760.746.6459

Michael J. Brown

Computer Integrated Mach., Inc.

619.596.9246

Erich Wilms

Diversified Tool & Die

760.598.9100

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

Antonio Dominquez

Johnson Matthey, Inc.

888.904.6727

Heather Russell

K-Tech Machine, Inc.

760.471.9262

Frank Harton

L.F. Industries, Inc.

760.438.5711

Cliff Manzke

Manzke Machine, Inc.

760.504.6875

Russell Wells Sr.

MarLee Manufacturing, Inc.

909.390.3222

Mark Rottele

Roettele Industries

909.606.8252

Robert Kemery

Solar Turbine

619.544.2808

Scott Cormony

Waterjet West, Inc.

760.471.2600

*National Associate Members **Associate Member ***Educational Partner

Education Board Member John Riego de Dios Construction Tech Academy Member at Large Lyle Anderson Member at Large Michael Brown

ASSOCIATE MEMBERS Glenn Van Noy

Champion Risk and Insurance Services

Founder

Steve Doda

Associate Member

Aerotek

Karen Morris Green

IMS Metal Supply

Associate Member

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.”

San Diego - NTMA Chapter 197 Woodland Pkwy.,#104, PMB #148 San Marcos, CA 92069-3020 Phone: 760.419.1393 www.ntmasandiego.org

26

PrecisionNews

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november/december 2013

San Diego - NTMA Chapter EVENTS November Board meeting • 11/07/2013 Kearny Construction Tec Academy Members meeting • 11/21/2013 Shop Tour December Board meeting • 12/05/2013 San Pasquel High Machine Tec No Meeting Have a Safe and Merry Christmas January Board meeting Kearny • 01/02/2014 Kearny Construction Tec Academy Members meeting • 11/21/2013 To Be Annouced Visit www.ntmasandiego.org for details as they become available.

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

PrecisionNews

TM

VISIT:

NTMA.ORG 800-248-6862

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

arizonatooling.org

november/december 2013

arizonatooling.org

PrecisionNews

27

NORTH TEXAS CHAPTER 2013 BOARD OF DIRECTORS President TODD ELLARD Manda Machine Company Vice President JEFF SPENCER Clay Precision Treasurer BARRON SMITH R.W. Smith Company Chapter Executive LISA ELLARD Trustee JOE O’DELL Plano Machine & Instrument, Inc.

BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works Bill Walter Ellison Technologies Micah Embrey CNC Precision/Shamrock-Bolt Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason

NTMA - North Texas Chapter ntc.ntma@gmail.com phone: 214.536.4970 PO Box 541236 Dallas, TX 75354-1236 ntmanorthtexas.org

NTMA-NORTH TEXAS MEETINGS & EVENTS August, 2013 Meeting Sponsor: Applegate EDM September, 2013 Meeting Sponsor: Golf Tournament November 21, 2013 – General Meeting No December Meeting – Merry Christmas!

January 23, 2014 – Manda Machine Company

28

PrecisionNews

arizonatooling.org

november/december 2013

PrecisionNews // NTMA -NORTH TEXAS CHAPTER

MEMBER LISTINGS REGULAR MEMBERS

ASSOCIATE MEMBERS

Vincente Chan

Aeroweld Technologies, Inc.

972.247.1189

Larry Ellison

AJR Metalworks, Inc.

214.352.3766

Wade Whistler

A.C.T. Precision Sheet Metal, Inc.

214.678.9114

Tommy Thompson

Bodic Industries

972.840.1015

Guy Allen

All Special, Inc.

972.641.0110

Lewis Lance

Bodycote Heat Treat

817.265.5878

Wayne Applegate

Applegate EDM, Inc.

972.488.8997

Rick Blair

Brook Anco Corporation

585.475.9570

Tony Woodall

AST Waterjet

972.554.0383

Craig van Hamersveld

Campat Machine Tool, Inc.

972.424.4095

Dan Wiktorski

Axis Machine Works, Inc.

214.390.5710

Claudia Pautz

Castle Metals

972.339.5000

Steve Ingersoll

Bailey Tool & Manufacturing

972.974.8892

Norm Williamson

H & O Die Supply, Inc.

214.630.6660

Michael Berdan

BE-Technologies, Ltd.

972.242.1853

Mike Johns

Haas Factory Outlet

972.231.2802

Christi Cameron

Cameron Machine Shop, Inc.

972.235.8876

Matt Curtis

Hillary Machinery, Inc.

972.578.1515

Jeff R. Spencer

Clay Precision, Ltd.

903.891.9022

Rod Zimmerman

Iscar Metals, Inc.

817.258.3200

Joseph Lodor

Commerce Grinding Company, Inc.

214.651.1977

Randy Joyce

Joyce Engraving Company, Inc.

214.638.1262

Robert McNamara

Davis Machine & Manufacturing

817.261.7362

Curtis Dahmen

Kaeser Compressors, Inc.

972.245.9611

Charles Gilbert

DNS Tool Cutter Grinding, LLC

972.241.5271

Mark S. Holly

Machinists Tools & Supplies

214.631.9390

David Ellis

Ellis Tool & Machine, Inc.

903.546.6540

Leland McDowell

McDowell Machinery & Supply Co.

214.353.0410

Jim Harris

E.W. Johnson Company

972.436.7528

Nicki Smith

MSC Industrial Supply

817.590.2637

Rudy D. Kobus

Expert Tool & Machine, Inc.

972.241.5353

Ray Jones

MWI Inc. / Southwest Division

972.247.3083

Monte Titus

F& R Machine & Repair, Inc.

214.631.4946

Mike Chadick

North Texas Precision Instrument

817.589.0011

Gary Fore

Fore Machine Company, Inc.

817.834.6251

Reed Hunt

Reed Hunt Services, Inc.

817.261.4432

Mike Lee

Fort Worth Centerless Grinding, Inc.

817.293.6787

Scott Devanna

SB Specialty metals

800.365.1168

Larry Borowski

Greenslade and Company, Inc.

817.870.8888

Bob Severance

Severance Brothers

972.660.7000

Oscar Guzman

Guzman Manufacturing

972.475.3003

Alan VanHoozer

Top Tooling of Dallas, Inc.

972.278.8300

David L. Hodgdon

H. H. Mercer, Inc.

972.289.1911

Glenn Wise

Wise Machinery, LLC

817.905.9473

Don Halsey, Jr.

Halsey Engineering & Mfg., Inc.

940.566.3306 214.421.4175

Mike Kenney

Kenney Industries

Denver Knox

Knox Machine Company

817.551.1600

MANY THANKS

Cory Trosper

K & D Tool & Die, Inc.

972.463.4534

TO OUR NTMA-NORTH TEXAS SPONSORS:

Keith Hutchinson

Lancaster Machine Shop

972.227.2868

Scott Cody

LSC Precision, Inc. 1 6/18/11 7:02 AM Page 940.482.9700 ATMA_0202_FINAL_Layout 19

Sammy Maddox

Maddox Metal Works, Inc.

214.333.2311

Todd Ellard

Manda Machine Company, Inc.

214.352.5946 903.439.6414

David Evans

Manek Equipment, Inc.

Rodie Woodard

Maximum Industries, Inc. • Machining Excellence972.501.9990 since 1997

Woodrow W. Thompson

Metal Detail, Inc. • ISO 9001 + AS9100B214.330.7757 Certified

Allen Meyer

Meyer Enterprises 972.353.9791 • Experienced senior machinists

Eddie Mills

• Experts in stainless, aluminum, Mills Machine Shop 940.479.2194

Eddie Steiner, Jr. Morris Padgett Troy Paulus

plastics and exotics 214.330.7271 • 8A Certified, Viet Nam Vet, Padgett MachineMinority Tools, Inc.Owned Small 254.865.9772 Business • Eager to provide you 940.566.5600 with quality Paulus Precision Machine, Inc. performance and quick responses O E M Industries, Inc.

Joe O’Dell

Plano Machine & Instrument, Inc.

Matt Harrell

Contact Quickturn Technology, Inc.Nichols

Barron Smith

940.665.2814

at 480-804-0593 469.643.5010 www.nicholsprecision.com 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

William Winberg

Winberg & Company

817.640.7930

BIL L OR M A C H IN E T OOL SERVIC E

“The Power of Connections” november/december 2013

arizonatooling.org

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29

Feature Focus // PrecisionNews

Technology Advances in Wire EDM When one starts to think about the recent technology advances in manufacturing, very few think about the wire EDM and how it has evolved over the past fifty years or so.

The wire EDM was developed in the 1960’s, but didn’t really burst onto the manufacturing scene in the late 70’s and early 80’s. It was really a game changer for the industry at the time. It was the breakthrough technology that removed the labor intensive grinding process of the dies.

Over the years, many different machine tool processes have tried to replace the wire EDM process, but have all failed to fully capture all the true benefits that the wire EDM has in the scope of manufacturing. The wire EDM incorporated extreme high accuracy, superior surface finish, a low machine operating cost, and the ability to run unattended machining. All these benefits wrapped into one machine far outweigh the one major complaint about the process, “it is too slow”. This is true; the speed of the wire EDM process has not improved vastly over the past fifty years, but that is not to say the wire EDM has not made significant technology advances in recent years.

Mitsubishi EDM debuted the MV Series Wire EDM in early 2012. It was immediately marked as the Game Changer in the field of Wire EDM. It produced much better overall surface finishes, improved the machining accuracy, and also greatly reduced the machine operating costs by upward to 60% compared to previous models. The Mitsubishi MV-Series even went one step further and also improved the speeds by up to 25% than previous models. The Mitsubishi MV Series wire EDM fyi: machine took the wire EDM process to the next level, and The new cylindrical drive will continue to push the envelope on EDM technology technology uses a linear shaft advances for the next fifty plus years. motor. Mitsubishi’s round magnetic shaft creates a non-contact design using full 360-degrees of magnetic flux. This design delivers no For more information, contact GLENN ZACHMAN wear, no cogging and at North/South Machinery, Inc. He can be reached at no backlash.

602.391.4696.

+

30

PrecisionNews

arizonatooling.org

november/december 2013

Learn more at: www.northsouthmachinery.com

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Shop Floor NEWS FROM THE FRONT LINES

11 O’Clock is Upon Us

• Make sure all containers are properly labeled.

GHS Ready or Not

• Ensure availability of SDSs. Employees should have access at all times to the SDSs they need at all times.

from THE ATMA SAFETY TEAM

• Review your plan periodically and keep it up to date with changes in the workplace and changes in hazards.

There have been a number of major changes to the Hazard Communication Standard (HCS) recently—many relating to the new United Nations Globally Harmonized System of Classification and Labeling of Chemicals. (GHS).

The changes are sweeping, and the ramifications far-reaching for all companies that must comply with HCS. This is the year you’ll need to train employees on how to read and understand GHS formatted safety data sheets (SDSs) and labels—so now is the time to lay the groundwork for compliance.

CHECKLIST • Train employees to recognize substances that are hazardous, understand the hazards, understand GHS-compliant labels and SDSs, take proper precautions to prevent exposures and other incidents, and report spills and other problems related to hazardous materials in the workplace. You have only until December 1 to train employees on GHS labels and SDSs.

32

• Develop a written hazard communication plan, including a list of the hazardous chemicals you’ve identified, procedures for communicating hazards, the names of the individuals in the organization responsible for managing the program, and so on.

• Update your SDS files as necessary. Make sure employees are using the most current SDS. • Make sure that employees for whom English is a second language fully understand hazards and required precautions.

Translate written materials and/or use translators to ensure comprehension if necessary.

References: https://www.osha.gov/dsg/hazcom/index.html OSHA.gov, Arizona Division of Occupational Safety and Health (ADOSH).

Learn more at: www.ica.state.az.us or www.atma.org

Effective Completion Date

Requirement(s)

Who

December 1, 2013

Train employees on the new label elements and safety data sheet (SDS) format.

Employers

June 1, 2015 December 1, 2015

Compliance with all modified provisions of this final rule, except: The Distributor shall not ship containers labeled by the chemical manufacturer or importer unless it is a GHS label

Chemical manufacturers, importers, distributors and employers

June 1, 2016

Update alternative workplace labeling and hazard communication program as necessary, and provide additional employee training for newly identified physical or health hazards.

Employers

PrecisionNews

arizonatooling.org

november/december 2013

TECHNOLOGY • MANAGEMENT • EDUCATION • LEGISLATION • DIRECTORY

YOUR PREMIER PUBLICATION FOR THE SOUTHWEST! Discover the NTMA SW Regional Magazine featuring Arizona, San Diego, and North Texas

...AND TURN ON THE P Contact Chris Mignella with questions at: executivedirector@arizonatooling.org

visit us at: www.arizonatooling.org

WER!

PrecisionNews ............................................................... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

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