Precision News September/October 2013

THIS ISSUE: NTMA-U / Another Do-Nothing Congress? / ‘Nice’ Companies & Policies / Implementing GHS

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

ARIZONATOOLING.ORG SEPTEMBER/OCTOBER 2013

PrecisionNews TM

NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

Inside: SELLER BEWARE LEARN THE EXPORT RULES OR YOU MIGHT BE LIABLE FOR PENALTIES IN THE MILLIONS OR EVEN FACE JAIL TIME

PLANNING THE FAMILY ROAD TRIP JUST LIKE A VACATION, THERE ARE A LOT OF DESTINATIONS YOUR BUSINESS CAN CHOOSE

TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

PN HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP!

TRADE / ENFORCEMENT / PROPERTY RIGHTS / INFRASTRUCTURE / CYBERSECURITY / TAXES / ENERGY / LABOR ISSUES THE PROACTIVE ISSUE

‘SHAKE & BAKE’ - RECAP THE NTMA SW REGIONAL CONFERENCE INDUSTRY ROUNDTABLES PROVIDE A PRODUCTIVE EXCHANGE OF IDEAS AND SOLUTIONS p.16

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PERFORMANCE andSUCCESS! Sandvik Coromant CoroMill Plura with iLock™ program is focused on titanium milling in aerospace frame components.

Workers

The Inaugural NTMA

Health

Property Liability

Auto

Southwestern Regional Conference // WHAT YOU MISSED...

Inspiration — Innovation Implementation

by Glenn Van Noy

I was definitely inspired. It was a short conference... only a weekend. But it was jam packed – short, sweet and to the point. I have never been to a conference where so many were able to take so much away.

There were over a hundred attendees. It was a “big” conference with a friendly, small town atmosphere. There was a great deal of networking, not just the run-of-the-mill “Hi, how are you? My name is … What do you do?” but a genuine exchange of information and ideas. I suspect there may have been a few deals forged at that conference.

The speakers were terrific. John Duca, VP and Senior Policy Advisor of the Federal Reserve Bank of Dallas, de-mystified the last five years economically. The take-away of Duca’s talk was to expect an up trend for manufacturing over the next four years. U.S. manufacturing is being held back by tenuous economic situations in various European countries. But on the upside, this will give many manufacturers an opportunity to embrace technology and re-position their companies – not just for survival, but to thrive in a global marketplace.

Leanne Gassaway, Regional VP, State Advocacy, for America’s Health Insurance Plans (AHIP), threw out all of the legalese and explained in plain English exactly everything that was not exact about the Health Care Reform Act. Only 8 states are good to go in October 2013 with their own insurance exchanges.

Over 30 states have declined to set up their own exchanges, and the rest are ill prepared which puts the responsibility for the insurance exchanges back on the Federal government. The take away – it’s a mess and group rates will go up.

If there was one over-riding take-away from the technology breakout sessions, manufacturers must not only embrace technology but capitalize on it, literally.

Approximately 40% of U.S. manufacturers are limping along on 1960’s technology. For manufacturers, it will be the survival of the fittest in this new century and the fit manufacturers will be outfitted in new technology.

An essential part of the planning for any business owner, regardless of century, is planning for your eventual exit. As the keystone in your business, you really need to plan how you will leave your business. Will your kids take over? Your employees? Will you just sell it? For what? Top dollar or fire sale? Will you go public? Will you abandon all your hard work and just walk away one day and never come back? The more time you have to strategize a plan and put it into place, the better the outcome. I feel this was the key take-away from the Management Breakout sessions. Does it strike a chord with you?

Of course, in conversations about the future, you have to consider the future work-force which may or may not provide you with talented, skilled labor.

The government, on any level, is not going to supply you with skilled labor.

Educators are stuck between a rock and hard a hard place. Funding beyond “Readin’ Writin’ an’ ah-Rithmatic” just does not exist. The Education breakaway take-away was “Every shop must take ownership for educating their future employees.” You can’t wait for the Feds to do it – can’t wait for the State to do it – can’t wait for teachers to do it.

Manufacturers must step up to the plate and take responsibility for building their own work-force.

That said, the final conference speaker, Jeremy Bout from the Edge Factor was clear about taking responsibility. We have to reclaim the fabric of what made this country what it is, repackage it and sell it to young people. We get inspired, that’s wonderous. We think hard. We invent and test. We manufacture. We make what was not possible 20 years ago impossible to live without today.

This Inaugual Southwestern National Manufacturing and Tooling Association conference was about restoring our passions, restoring manufacturing and retooling our goals. I felt inspired by this conference. Inspired to innovate and implement the best management practices to build many futures, not just mine.

AND THAT’S WHAT YOU MISSED.

Building a more secure future for manufacturing makes it easy for us to build a more secure future for your business.

Thank you for allowing us to be a part of the First Annual Southwestern Regional Conference.

And an even bigger thank you goes to all those who made it a such a huge success.

Congratulations!

We are looking forward to the “Second Annual” next year in Dallas!

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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SEPTEMBER/OCTOBER 2013 VOLUME 3 • ISSUE 5

Contents 12 16 30

Features

Departments

PLANNING THE FAMILY ROAD TRIP

03 President’s Letter

Part of the challenge any business owner has is deciding where they want to go. Just like a vacation, there are a lot of destinations you can choose.

04 Policy Matters

‘SHAKE & BAKE’ - A RECAP OF THE INAUGURAL NTMA SOUTHWESTERN REGIONAL CONFERENCE Industry roundtables provided a productive and effective exchange of ideas and solutions over a wide subject area with all attendees participating in the discussion.

EXPORTING YOUR PRODUCT: SELLER BEWARE

08 People Power 19 NTMA Initiatives 20 Websites that Work 20 Arizona Chapter Info 26 San Diego Chapter Info 27 NTMA Membership

Entering the overseas market? What you might not know is that you could violate export rules and be liable for penalties in the millions of USD and even face jail time.

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

PrecisionNews

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CONTRIBUTING WRITERS Sergio Cecutta, Dante Fierros, Margaret Jacoby, Manufacturing News & 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. 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

A Success Story

. . .. ..

The summer heat is not the only thing “hot” happening here in the southwest lately. Those of you lucky enough to have been at our inaugural NTMA Southwest Regional Conference were treated to a “hot” event indeed. Our theme of “Shake and Bake” was most apropos in that we shook things up in the middle of our summer (bake) weather in Arizona. Over 100 people from California, Texas, Colorado, Utah and Arizona joined together here in Phoenix for a jam-packed day and a half of meetings and roundtables to impart and receive useful technical and business information. Here is only a very small listing of topics: Federal Reserve Board V.P. Mr. Duca provided a candid look at what is happening now and forecasts for what will happen soon in our economy. Ms. Gassaway, Regional VP of American Health Insurance Plan (AHIP) provided details regarding “Obama Care” and its impact on our businesses. Add to these topics such as NIMS Certification, entry level training, introducing more high-tech systems, business exit strategies, NTMA-U, machining optimization, Arizona Commerce Authority plus comments from the NTMA Executive’s David Tilstone and Bob Mosey plus many more subjects and you can see why the program was very well received by the participants.

I am very proud to have been a part of the team that put this project together which included:

Gail Houser, NTMA Regional Western Representative, David Lair, ATMA VP, Sean & Tammy Tillett, President and Executive Director of the San Diego Chapter, Todd Ellard, President North Texas Chapter, Glenn VanNoy, Champion Risk/NTMA Insurance, Nils Kjell, SFBA NTMA, Dave Butner, SFBA NTMA and Chris Mignella, Executive Director ATMA.

DANTE O. FIERROS President 602.980.1907 dante@nicholsprecision.com

This conference was an example of the communication process we at the chapter level continue to strive for in meeting the needs of our members. Your wishes to focus on technical and business issues and topics that help us run our businesses optimally were heard and it was our intent to keep the subjects relevant, concise and provided in a venue and schedule that had minimal impact to our budgets and time constraints.

I think it is safe to say that we accomplished our mission. The follow-on and second iteration of another dynamic regional conference will take place in the beautiful Dallas Texas area.

Stay tuned for details.

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Policy Matters BECOME A VOICE FOR CHANGE

Yet Another Do-Nothing Congress?

Not So Fast

by OMAR S. NASHASHIBI

When I first came to Washington, D.C. nearly twenty years ago, Congress measured its productivity by how many bills became law. At one point, members of the House and Senate would regularly introduce roughly 7,000 bills over a two year period and if ten percent became law, they could consider that a “successful” Congress.

While this measurement did include the renaming of post offices and other federal buildings; Washington used to eliminate, amend, and create substantive laws on a regular basis. However, this 113th Congress, which convened in January 2013, has seen twenty-five bills signed into law.

President Harry Truman coined the phrase “Do-Nothing Congress” in 1948, and until 2012, we had yet to see a Congress sink below that level – possibly until now.

Speaker of the U.S. House of Representatives John Boehner (R-OH) recently stated voters should judge his party not on how many laws they pass but how many laws they repeal. However, even by that measure both the House and Senate do not pass many bills which become laws these days. Depressing as these statistics

may seem, behind the scenes members of Congress, staff, and yes, lobbyists too, are busier than ever.

secret negotiations with the White House in April on a grand bargain to reduce the debt and raise the borrowing limit.

Congress took a six-week break from Washington for its annual August recess.

When they return the second week in September, they face a backlog longer than a Los Angeles traffic jam. Immigration reform remains atop the agenda after special interest groups stormed many town halls.

The Republican strategy in the House is to pass a series of smaller immigration reform bills rather than a larger comprehensive bill as the Senate passed this summer. While many obstacles remain, there remains a strong chance Congress can send an immigration reform bill to the President’s desk before the November 2014 elections.

Most of Washington is not holding its breath for a grand bargain, but more is at risk than the public realizes. If the stakes still are not high enough for you, factor in that the next round of sequestration is about to begin.

With no relief in sight for the millions of manufacturers supplying the defense industry, businesses and employees are bracing for more reductions which Congress never intended to take effect. Leaders in both political parties are debating whether to address the sequester cuts as part of the government spending bills they must pass

by September 30, 2013 or delay their responsibilities yet again.

Leaders on Capitol Hill also indicate they will likely have to pass a law raising the nation’s borrowing limit by Thanksgiving. The upcoming fiscal showdown between many conservative Tea Party members of Congress looms large for Washington and the nation’s economy. Roughly a dozen Republican Senators began unofficial and

Two items of great interest to manufacturers which may see action this fall are workforce development/job training and tax reform. The National Tooling and Machining Association is the leading voice in Washington working on these two critical issues for small and medium sized manufacturing businesses.

fyi: President Harry Truman coined the phrase “Do-Nothing Congress” in 1948, and until 2012, we had yet to see a Congress sink below that level – possibly until now. +

Photo: NTMA

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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.

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PRECISION

executivedirector@arizonatooling.org

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Policy Matters

Yet Another Do-Nothing Congress? Not So Fast The Senate committee with oversight of job training programs just passed a bipartisan bill to reauthorize the Workforce Investment Act for the first time in more than a decade.

The bill proposes a greater emphasis on empowering local businesses to develop curricula and determine, themselves, which jobs openings are in greatest demand.

NTMA had a major victory in July when the Senate Committee agreed to an amendment offered by Sen. Kay Hagan (D-NC), which places a priority on funding for programs that recognize industry established credentials such as those developed by the NTMA and National Institute for Metalworking Skills (NIMS). While the House passed a drastically different bill, consolidating thirty-seven programs into one, manufacturers are optimistic the House and Senate can reconcile their differences before the end of the year.

However, all of these programs, projects, and government spending cost money, which is generated by all our tax dollars.

That brings us to the elephant in the room – comprehensive tax reform. NTMA began lobbying for reforming the Internal Revenue Code in May 2011 and has not let up. U.S. corporations now have the highest statutory income tax rate of any other industrialized

nation. A recent study, showed that SCorporations and other pass-through businesses who pay at the individual level, have an average effective tax rate of almost 32% and is much higher for many NTMA members who just saw an increase to 39.6% The House of Representatives tax writing committee, led by a Republican, is slated to move a comprehensive tax reform bill this fall followed by the Senate committee whose Democratic chairman says he will pass a bill

by November. To their credit, this bipartisan duo is calling for comprehensive tax reform for both C-Corporations and pass-through businesses such as S-Corporations, LLPs, LLCs, and others. The U.S. Census shows that eighty-one percent of all manufacturers are structured as pass-throughs meaning they pay taxes at the individual tax rates, which increased on January 1, 2013.

Unfortunately, President Obama’s current proposal still calls for C-Corporation only tax reform leaving behind most of businesses manufacturing in America.

This is why manufacturers have so much at stake this fall, even in another “do-nothing Congress.” Often, doing nothing is worse than doing something, or taking the wrong actions because policymakers lack all the

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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facts. If Congress does nothing on workforce, we will still have outdated projects such as the forty-seven overlapping programs identified by the non-partisan Government Accountability Office (GAO), which cost the federal government $18 billion in FY2009.

Manufacturers, whether C-Corporation or pass-through, will continue to pay among the highest tax rates in the developed world leaving fewer resources for investing in equipment, facilities, and employees.

Passing twenty-five laws in nine months is nothing to brag about, and this current Congress does not have much to say for itself yet – but there remains hope. It is too early to label this as the worse Congress of all time, but the partisan gridlock is the worst I’ve seen since first coming to Washington almost twenty years ago. However, in politics as in life sometimes, there is only one way to go from here – up.

OMAR NASHASHIBI is a founding partner at The Franklin Partnership, LLP, a bi-partisan government relations firm retained by the National Tooling and Machining Association in Washington, D.C. Learn more at: www.franklinpartnership.com

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People Power YOUR MOST VALUABLE RESOURCE

“NICE” POLICIES BOOST MORALE Increase Loyalty and Decrease Turnover

by MARGARET JACOBY, SPHR

In my research for my new book “Practical Tools to Manage Costly Employee Turnover,” I found trends that impact turnover and productivity. Increased competition for employee talent and greater investment in employee development have made turnover more costly, making the retention of employees a critical business concern. Many human resource experts maintain that the adoption of “work/life policies” will result in a more loyal, committed workforce.

In a recent study, nearly half (47.3%) of poll respondents chose “work-life balance/flexibility programs” as the most important factor their companies should support--across Millennials, Generation X, and Baby Boomers, it was the highest ranking response.

A few employee-friendly workplace policies: • Flextime – Shorter Work Week. For employees with families, control of their time may be the most valuable benefit an employer can give. A four-day work week, for instance, or days off mid-week instead of on the weekend, or starting and ending the workday several hours earlier or later than normal.

• Temporary or permanent switch to part-time. A full-time employee might be allowed to change to a part-time position either as part of a job share, or simply as a reduction in working hours in the same job. A new mother, for instance, may want to work part-time in order to bond with the child and adjust to the demands of parenthood.

• Job sharing. Generally two employees may share a single position-each working a fraction of the necessary time. In that way, people can hold the position they want, and still have time to spend with children or aging parents, or take care of other family responsibilities.

• Maternity/paternity leave. Part of an employee benefit package may be paid or unpaid leave for the birth, adoption, or acceptance of the foster placement of a child.

• Parental leave. An option that allows a parent to take an afternoon or a day off to pick up a sick child at school or tend to one at home, attend a school performance or athletic event, or otherwise take care of a child's needs.

• Family-oriented events. Arrange company picnics, Holiday parties, and other events to include employees' families.

• Tuition for employee education. Encourage and support the improvement or addition of employee skills.

Even more important than the presence of employee-friendly policies is the implementation of those policies-providing an atmosphere in which employees feel they will not be penalized for work-family conflicts, and they will receive reasonable, affirmative support in their attempts to address work-nonwork life issues.

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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NICE COMPANIES FINISH FIRST Why Cutthroat Management Is Over There is no way to institutionalize “niceness”, it comes from the top person and the management team in an organization and permeates the place. A positive, collaborative work atmosphere (a “nice” atmosphere) is the result of two things - how an organization deals with its work force in interpersonal situations as well as what it provides to the workers to maintain and boost morale. This article addresses people-to-people niceness; the companion article addresses worker- friendly policies.

PHOENIX METAL TRADING, INC.

Industrial Scrap Specialists

There’s a growing body of research indicating that bad bosses hamper productivity, which results in smaller profits and lost business. University of Florida researchers found that people who work for abusive bosses are more likely to arrive late, do less work and take more sick days. The old models: “Work harder - work faster!” and “Do it my way or hit the highway!” are relics of past generations of leaders/managers and are no longer suitable.

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.

Florida researchers found (after interviewing hundreds of workers in a variety of industries, about the treatment they received) a disturbing list of interpersonal things that leaders/managers should NOT do:

EPA and ADEQ Environmental Compliance We Purchase All Types of Scrap:

This abusive kind of employee-manager relationship resulted in a workforce that “experienced more exhaustion, job tension, nervousness, depressed mood and mistrust.” These workers were also less likely to take on additional tasks, such as working longer or on weekends and were generally less satisfied with their jobs.

Bottom Line: Strong leadership/management is the most important competitive advantage companies have - it comes first, before technology, finance, operations and everything else. “Nice” leaders/managers are the best leaders and coupled with workerfriendly policies the result will be better run companies that attract and retain loyal and productive employees.

TED SZANIAWSKI Principal, HRGroup, LLC Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com *Material for this article from: “Nice Companies Finish First” by Peter Shankman

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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 — arizonatooling.org september/october 2013 10

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/ 9 arizonatooling.org arizonatooling.org PrecisionNews 11

Feature Story // PrecisionNews

STORY BY BRENT TERHAAR

As the summer comes to an end, it's that time of year when we look back and reminisce about all the activities we’ve packed into a short 3 month period. The picnics, the baseball games, the fishing trips, and most importantly, the family vacation. Not just any family vacation, more specifically, the family road trip.

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Planning the Family Road Trip The family road trip – truly one of the great American traditions.

We've all lived that experience. Packing the entire family into the car and tackling the unknown highways of this great country.

If your family is anything like ours, you don’t just jump in the car and head for the highways. The road trip experience starts months in advance. We sit down as a family and figure out the ultimate destination - a city we’ve never been to, a national park, an amusement park, the beach. Once we all decide on the final destination, our plan gets more specific about all the stops we want to make on the way. Friends and family we can visit, cities we want to drive through, even visiting unique sites and attractions along the way (if you’re in the area, why wouldn’t you stop to see the world’s largest ball of twine?).

We then divide and conquer. My wife makes an exhaustive list of everything we need to pack. The kids make sure they have enough activities to keep themselves busy for the long haul. I map out the route and make sure we have hotel reservations at the right intervals throughout our journey.

Once the car is packed and everyone goes to the bathroom, we set out on the road. Inevitably, the trip never goes exactly as planned. We run into car trouble, there’s detours for road construction, the weather gets bad, we make a wrong turn – all part of the adventure. Regardless of the detours, we always get back on track with the original planned route to our final destination.

In addition to the logistical challenges, we also deal with the family dynamics. Let’s face it, being cooped up in a vehicle for a week or two with the family borders on insanity. The series of issues is never ending from not being able to collectively decide where to stop to eat to arguments about what movie to watch next. These family challenges add stress to an already stressful situation. Properly compromising and communicating will ultimately settle everyone’s nerves.

Even with all the proverbial “bumps in the road” getting there, once we reach the final destination, we always seem to have a great time. continued on page 14

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Feature Story // PrecisionNews

Planning the Family Road Trip continued from page 14

There are many lessons a business owner can learn from the family road trip. Here are two of the most important: KNOW WHERE YOU WANT TO GO We go through painstaking steps to plan a one or two week vacation.

Why do we do this? It’s simple – if a road trip is not properly planned, you could end up at a place you don’t want to go or it may take much longer to get there. Both of which can ruin a vacation.

What's interesting is that many business owners won’t go through the same steps to develop the long term destination for their business or for themselves personally. How often do you, as a business owner, take a step back and plan your long-term path?

Part of the challenge any business owner has is deciding where they want to go. Just like a vacation, there are a lot of destinations you can choose. Do you want to sell the company, do you want to transition it to a family member, do you want your management team to take it over, or do you want to actively participate in the business? All crucial decisions.

One of the most important things you can do as an owner is to be very thoughtful about these decisions. In addition, talk to others about what you’re thinking. Getting the perspective of others, including your spouse and management team, will help bring clarity to an unclear situation.

So where do you start? Just like in the early planning phases of a family vacation, start with the big picture. Talk about your ultimate goals.

What do you want your Company to look like in 5 years, 10 years, 20 years? What personal goals do you and your spouse have for the future?

Taking the time to talk through this today will pay huge dividends in the future. This early planning will lead to the decisions you make that will guide you to your long-term destination.

Answering these questions and getting them on paper is a great first step. Once you have that picture of where you want to go, there are many different paths you can choose to get there. Just like the family road trip, there is no single or best route to take. That path can be whatever you want it to be.

BE PREPARED TO TAKE DETOURS Just like a road trip, you will inevitably have some detours along the way.

Instead of vehicle problems, you may run into an equipment limitation or maintenance issue. Instead of road construction, you may run into a problem with a major customer that requires you to change course.

Instead of dealing with siblings that are fighting in the back seat, you may have a management team that doesn't work well together.

So where do you start? Just like in the early planning phases of a family vacation, start with the big picture.

All of these are variables you need to work through. With a well thought out plan, these issues truly become just bumps in the road. The ability to weather the storm and make the necessary decisions become easier when you have a plan in place. Even though you may get sidetracked along the way, you will always find yourself making long-term decisions that will get you back on track with your plan.

As the great Yogi Berra once said, “If you don't know where you're going, you’ll end up someplace else.” Take the time to figure out where you want to go. Share that vision with your family and your management team. With that picture in mind, it will help put your actions and the actions of others into the proper context. There will certainly be bumps along the way. As you navigate the detours, a well developed plan will always bring you back to the route you set out to take. At the end of the journey, when you reach your destination, hopefully you’ll create those great memories that you’ll cherish for years to come. Just remember to take pictures!

BRENT TERHAAR is a Partner 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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NTMA EXCLUSIVE

YOUR BEST TOOL OF THE TRADE.

ASK ABOUT SPECIAL RATES FOR NTMA MEMBERS!

Call 602.388.5752 today and become a part of Precision News - the most informative and comprehensive tooling and machining industry magazine!

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

Feature Story // PrecisionNews

‘SHAKE & BAKE’ “Shakin’ hands & bakin’ ideas” A RECAP OF THE INAUGURAL NTMA SOUTHWESTERN REGIONAL CONFERENCE PHOENIX • AUGUST 9-11, 2013

THANK YOU CONFERENCE SPONSORS:

CO-SPONSORED BY: COWEST INSURANCE GROUP, INC. MIDLOTHIAN INSURANCE AGENCY

KROEGER-NOACK INSURANCE & FINANCIAL SERVICES INC.

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THE SOUTHWESTERN CHAPTERS OF THE NATIONAL TOOLING AND MACHINING ASSOCIATION (NTMA) RECENTLY HELD ITS INAUGURAL CONFERENCE IN PHOENIX, ARIZONA. THE EVENT BEGAN WITH AN OVERVIEW OF THE GENERAL ECONOMY AND THE OUTLOOK FOR MANUFACTURING BY KEYNOTE SPEAKER JOHN DUCA, VICE PRESIDENT AND SENIOR POLICY ADVISOR AT THE FEDERAL RESERVE BANK OF DALLAS. OBAMACARE REGULATIONS WAS THE TOPIC FOR ANOTHER KEYNOTE SPEAKER LEEANN GASSWAY, REGIONAL VICE PRESIDENT, STATE ADVOCACY, AHIP. BREAKOUT SESSIONS WERE IN THREE CATEGORIES: TECHNOLOGY, MANAGEMENT AND EDUCATION

al Conference PANELS. CONFERENCE ATTENDEES WERE ABLE TO CHOOSE WHICH BREAKOUT SESSIONS TO ATTEND. Education Panel topics: • Entry Level Training Programs • Apprenticeship Training Panel Discussion • NTMA-U Online Precision Machinist Training • NIMS National Skills Standards

NTMA Southwestern Regional Conference

Industry Roundtables also provided an exchange of ideas and solutions over a wide subject area with all attendees participating in the discussion.

Planning is already underway for a second Southwestern Conference to be held in Dallas in August 2014.

“Our inaugural NTMA Southwestern Regional Conference exceeded all of our highest plans and expectations. The attendance was outstanding and the reviews were very positive.

Our focus on providing the most benefit to our members and interested attendees at a reasonable price in the

Industry roundtables provided an Education topics: exchange ofPanel ideas and solutions •over Entry Level Training Programs a wide subject area with all •attendees Apprenticeship Training participating in the Panel Discussion discussion.

• NTMA-U Online Precision Machinist Training Planning is already underway • NIMS National Skills Standards for a second Southwestern Conference be held in Dallasalso proIndustryto Roundtables in August 2014. vided an exchange of ideas and solu-

tions over a wide subject area with all attendees participating in the discusleft: Opening Session of the inaugural sion.

NTMA Southwestern Regional Conference Planning is already underway for a in Phoenix, Arizona. second Southwestern Conference to be below: NTMA Southwestern Conference held Dallas inViceAugust 2014. keynotein speaker, John Duca, President and Senior Policy Advisor at NTMA the “Our inaugural SouthwestFederal Reserve Bank of Dallas, gave an A Southwestern ern Regional Conference exceeded all overview of the general economy and the Arizona. ofoutlook our highest plans and expectafor manufacturing. tions. The attendance was outstanding ing and and the reviews were very positive.

Opening Session of the inaugural NTMA Southwestern augural Our focus on providing the most beneRegional Conference in Phoenix, Arizona. with an fit toEducation our members interested atTechnology Topics: Paneland Topics: or mantendees at a reasonable price in the • Entry Level Training Programs The Southwestern chapters of the National Tooling and • Why Automate with Robots ent and • Apprenticeship Training Panel Machining Association (NTMA) recently held its inaugural • Installing High Tech Into Dallas. the Cost-Conscious Shop Discussion conference in Phoenix, Arizona. The event began with an keynote • Additive Manufacturing • NTMA-U Online Precision overview of the general economy and the outlook for mantate AdMachinist Training • Optimizing Machining in ufacturing by keynote speaker John Duca, Vice President and • NIMS National Skills Senior Policy Advisor at the Federal Reserve Bank of Dallas. Aerospace Frame Materials hnology, Standards Obamacare Regulations was the topic for another keynote tendees speaker LeeAnn Gassway, Regional Vice President, State Ad- Management Topics: nd.

• Social Security Realities vocacy, AHIP. Breakout sessions were in three categories: Technology, • Multiple Employer Trusts Management and Education Panel. Conference attendees and Retirement Options were able to choose which breakout sessions to attend.

• Exiting Your Business,

ials

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Technology topics: • Why Automate with Robots • Installing High Tech Into the Cost Conscious Shop • Additive Manufacturing NTMA Southwestern Conference keynote speaker, John Duca, • Optimizing Machining Aerospace Materials Vice President and Senior in Policy Advisor Frame at the Federal

Protecting YourWealth • The Good, the Bad and the Ugly in Employment Law continued on page 18

Reserve Bank of Dallas, gave an overview of the general

Management economytopics: and the outlook for manufacturing.

• Social Security Realities • Multiple Employer Trusts and Retirement Options

en In September 2013

NTMA Southwestern keynote speaker, John september/october 2013 Conference arizonatooling.org PrecisionNews 17Duca, Vice President and Senior Policy Advisor at the Federal

Feature Story // PrecisionNews

‘SHAKE & BAKE’

NIMS National Skills Standards breakout

NTMA-U Online Precision Machinist Training breakout speaker, Ken McCreight, Vice President, National Tooling and Machining Association (NTMA).

page 17 continued from session speaker, Dave Morgan, Director of

Business Development, National Institute for Metalworking Skills (NIMS).

Page 2 Page 2

“Our inaugural NTMA Southwestern Regional Conference exceeded all of Page 2 our highest plans and expectations. The attendance was outstanding and the reviews were very positive. Our focus on providing the most benefit to ourshortest amount of time was fully achieved. We are excited in anticimembers and interested attendees at a reasonable price in the shortest amount pation of our next event in the Dallas, Texas area,� of time was fully achieved. We are excited in anticipation of our next eventbeautiful in said Dante Fierros, President of the beautiful Dallas, Texas area,� said Dante Fierros, President of the Arizona the Arizona Tooling and Machining Tooling and Machining Association (ATMA). Dante Fierros is President ofAssociation (ATMA). Dante Fierros is President of Nichols PreNichols Precision LLC.

said Dan the Arizo Associati ros is P cision LL “ event tha content a cally and emphasi feasible f tiple atte ward to in the Da lard, Pre Chapter o is Owner and Eng chine Co

shor shortest amo achieved.

W achie pation patio of o beautiful D beau said Dante said the Arizona Association ( the A ros is Pres Asso cision LLC. ros “It w event that cisiow content and cally and re even emphasis o feasiblecont for c tiple attende cally ward to hos emp in the Dalla feasi lard, Preside tiple Chapter of th is Owner an ward and Engine in th chine Co., In

cision LLC. “It was great to attend an “It was great to attend an event that was not only heavy on content and event that was not only heavy on presentations, both locally and regionally, but with an emphasis on being content and presentations, both locally and regionally, anbreakout NIMS Nationalbut Skillswith Standards NTMA-U Online Precision Machinist economically feasible for companies to send multiple attendees. We are emphasis on session speaker, Dave Morgan, Director of Training breakout speaker, Ken McCreight, being economically Development, National Institute Business Vice President, National Tooling and above: NIMS National Skills Standards breakout session speaker, Dave Morgan, companies to send mullooking forward to hosting next year’s event in the Dallas area,� said Todd feasible for Director Skills (NIMS). forofMetalworking Machining Association (NTMA).

Business Development, tiple attendees. We are looking for-National Institute for Metalworking Skills (NIMS).

Ellard, President of the North Texas Chapter of the NTMA. Todd Ellard isNIMS Skills Standards breakout NTMA-U Online Machinist above right: NTMA-U Online Precision Machinist Training breakout speaker,Precision Ken wardNational to hosting next year’s event Dave Morgan, Director speaker, Ken McCreight, Owner and Vice President Sales and Engineering of Manda Machine Co.,session Inc. McCreight, President, National Machining breakout Association (NTMA). in thespeaker, Dallas area,�Vicesaid Todd El-ofTooling and Training Business Development, National Institute Vice President, National Tooling and NIMS National Skills Standards breakout lard, President of the North Texas NTMA-U Online Precision Machinist for Metalworking Skills (NIMS).

Machining Association (NTMA). session speaker, Dave Morgan, Director of Training breakout speaker, Ken McCreight, Chapter of the NTMA. Todd Ellard Business Development, National Institute Vice President, National Tooling and is Owner and Vice President Sales Southwestern Conference.

One of several breakout sessions at the NTMA for Metalworking Skills (NIMS).

Machining Association (NTMA). and Engineering of Manda Machine Co., Inc.

One of several breakout sessions at the NTMA Southwestern Conference.

RoundtableOne discussion where a wide subject area covered of several breakout sessions at the NTMA Southwestern Conference. ideas and solutions with conference attendee participation.

One of several breakout sessions at the NTMA Southwestern Conference.

above: One of several breakout sessions at the NTMA Southwestern Conference.

Roundtable discussion where a wide subject area covered

ideas and solutions with conference attendee participation.

Reprinted with Permission

above right: Roundtable discussion where a wide subject area covered ideas and solutions with conference attendee participation.

SOUTHWEST

SOUTHEAST

NORTHEAST

MIDWEST

WEST

www.mfgnewsweb.com

Roundtable discussion where a wide subject area covered ideas and solutions with conference attendee participation.

Roundtable discussion where a wide subject area covered ideas and solutions with conference attendee participation.

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lard, Chap is Ow and chin

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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For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

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WEBSITES THAT WORK FOR YOU

ATMA PRECISION 2013 ATMA BOARD OF DIRECTORS President DANTE FIERROS Nichols Precision

Arizona Chapter Website arizonatooling.org Arizona Commerce Authority -Job Training Grant Application azcommerce.com/workforce Arizona Department of Education azed.gov

Executive Director CHRIS MIGNELLA

Arizona Manufacturers Council azchamber.com/amc Arizona Manufacturing Apprentice Program Contact Jim Conner: Jconner40@msn.com Arizona State University Mechanical & Manufacturing Engineering Technology poly.asu.edu/technology/mmet/ City of Phoenix – Community & Economic Development Program phoenix.gov/ECONDEV/index.html EVIT (East Valley Institute of Technology) evit.com GateWay Community College gatewaycc.edu Greater Phoenix Chamber of Commerce phoenixchamber.com Maricopa Community Colleges maricopa.edu

Mesa Community College mc.maricopa.edu

NTMA - National Tooling & Machining Association ntma.org NTMA - San Diego Chapter ntmasandiegochapter.org NTMA - North Texas Chapter ntmanorthtexas.org

Treasurer GREG CHAMBERS Noranco Jet Processing

BOARD MEMBERS Mark Travis Micro-Tronics, Inc. Zach Wilsterman Profiles, Tools & Engineering Gary Watkins MarZee

Michael Sanchez Sanair Products

Associate Member Liaison Kerry Vance Consolidated Resources, Inc. ATMA Ambassador Maxine Jones mjones14@cox.net

Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association

NTMA - North Texas Chapter ntmanorthtexas.org

P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752

National Association of Manufacturers NAM.org

ExecutiveDirector@arizonatooling.org

One Voice Advocacy metalworkingadvocate.org

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U.S. Department of Labor dol.gov

arizonatooling.org

Secretary JOHN O’LEARY Arizona Industries for the Blind

Bruce Treicher Zircon Precision

National Institute for Metalworking Standards nims-skills.org

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Trustee MARK WEATHERS Excaliber Precision Machining

Joseph Koenig Exactitude, LLC

Maricopa Workforce Connection maricopaworkforceconnection.com

20

Vice President DAVID LAIR Dynamic Machine & Fabricating

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

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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS REGULAR MEMBERS Rob Markson

Action Machine

692-233-0883

Steve Macias

Pivot Manufacturing

Michael Holmes

AeroDesign & Manufacturing

602-437-8080

James Buchanan

Powill Manufacturing & Eng, Inc.

623-780-4100

Sal Kielbus

Aerospace Contacts, LLC

480-967-1025

Ilene Price

Precise Metal Products Co.

602-272-2625

Chuck Eriksen

Allied Tool & Die Company, LLC

602-276-2439

Roy Stenger

Precision Aerospace

602-352-8658

Charles A. Van Horssen

Axian Technology, Inc.

623-580-0800

Tony Costabile

Precision Die & Stamping, Inc.

480-967-2038

John O’Leary

AZ Industries for the Blind

602-269-5131

Michael Dailey

Prescott Aerospace, Inc.

928-772-7605

Paul Bowman

B3 Precision, LLC

480-250-3366

Tyler Crouse

Pro Precision

602-353-0022

Bill Boat

B&B Fabrication & Machine

602-684-0393

Zach Wilsterman

Profile Tool & Engineering

480-894-1008

Kevin Burbas

B&B Tool, Inc.

520-397-0436

Michael Hughes

Pure Logic Industries, Inc.

480-892-9395

Jeff Buntin

Barnes Aerospace - Apex Mfg. Div.

602-305-8080

John Bloom

R & D Specialty/Manco

602-278-7700

Norela Harrington

Bent River Machine, Inc.

928-634-7568

Dustin Whaley

Resonant Solutions

602-288-6740

Eric Stroot

Bolt’s Metallizing

602-244-2432

James Costello

Sanair Products

480-218-0918

Mark Clawson

C & C Precision Machining

480-632-8545

Paul Shelton

Shelton Industries

520-408-8026

Jay Berens

C.G. Tech, Inc.

623-492-9400

Erik Niemira

Sierra Precision Products, LLC

602-481-9582

Joe Cassavant, Jr.

Cassavant Machining

602-437-4005

Mark Willmering

Sonic Aerospace, Inc.

480-777-1789

David Bardin

Chips, Inc.

602-233-1335

Jeff Gaffney

Southwest Swiss Precision

602-438-4670

Ron Gilmore

Continental Precision, Inc.

602-278-4725

Steven Yeary

Southwest Turbine, Inc.

602-278-7442

Darrel Lilly

Creative Metal Concepts

602-272-1110

Mike Gudin

Southwest Water Jet

480-306-7748

Allen Kiesel

Creative Precision West

623-587-9400

Ruben Cadena

State Industrial Products, Inc.

602-275-0990

David Lair

Dynamic Machine & Fabricating

602-437-0339

Dennis Miller

Summit Precision, Inc.

602-268-3550

Diana Buchanon-Lovett

Eclipse Carbide, Inc.

480-214-3719

Scott Higginbotham

Sun Grinding LLC

602-238-9595

Joseph J. Koenig

Exactitude, LLC

602-316-6957

Craig Berland

Systems 3, Inc.

480-894-2581

Mark Weathers

Excaliber Precision Machining

623-878-6800

Todd Aaronson

TMA Precsion Tube

623-221-4922

Mark Pendergrass

Filconn, Inc.

480-225-3656

Jacque Cowin

Tram-Tek, Inc.

602-305-8100

Jeff Hull

Foresight Technologies

480-967-0080

Rick Lorenzen

Tri Star Design & Mfg.

480-345-1699

Tim Malin

Helm Precision, Ltd.

602-275-2122

Jeremy Lutringer

Unique Machine & Tool Co.

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Majer Precision

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MarZee, Inc.

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Mastercraft Mold, Inc.

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Metal Spinning Solutions, Inc.

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Metalcraft

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Micropulse West

602-438-9770 602-437-8995

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Micro-Tronics, Inc.

Lyle Rusanowski

MMI Precision Technology

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Modern Industries, Inc.

602-267-7248

602-306-2923

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Nelson Engineering

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Dante Fierros

Nichols Precision

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Greg Chambers

Noranco Jet Processing

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Rory Robinson

NorthStar Aerospace dba Heligear

602-275-4406

PrecisionNews

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John Maris

NorthStar/D-Velco

602-275-4406

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

Tom Osborn

Osborn Products, Inc.

623-587-0335

visit: arizonatooling.org

Jennifer Ayres

Phoenix Analysis & Design Tech.

480-813-4884

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ATMA_0202_FINAL_Layout 1 PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

6/18/11 7:04 AM Page 23

MEMBER LISTINGS ASSOCIATE MEMBERS

ARIZONA SPONSOR MEMBERS 5HFUXLWLQJ 6WDIÂżQJ 6HUYLF

ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

MARK YOUR CALENDAR WITH THESE

Richard Short

Adams Machinery

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At Aerotek know your business, we ta Federated Insurancenot only do we501.952.9391

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the time your needs. So, whether Comerica Bankto really understand 602.417.1188

Vincent Thelander

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QHHG WR ÂżOO RQH SRVLWLRQ RU UHTXLUH D VWDIÂżQJ VROXWLRQ DFURV CliftonLarsonAllen, LLP 480.615.2300

Howie Basuk

Barry Metals

602.484.7186

HQWLUH RUJDQL]DWLRQ ZH ZLOO ÂżQG \RX WKH SHUIHFW ÂżW Every ti (General Safety Standards) 11:30 480.884.4504 5/11 Safety Meeting Arizona Bank & Trust Joe Galvez

Joe Ciancio

Bralco

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UPCOMING ATMA EVENTS!

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MARK YOUR CALENDAR WITH THESE

UPCOMING at Phoenix Heat Treat, 2450 W. Mohave, Phoenix Titanium Metal Supply, Inc. 602.910.0808 ATMA EVENTS!

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:H VSHFLDOL]H LQ SODFLQJ VNLOOHG SHUVRQQHO IRU PDFKLQLVW

5/12 Combined Membership, Marketing & Program Wells Fargo 480.348.5114 Allen McDougall Meeting 11:30-1:00 at Foresight Technologies, PDLQWHQDQFH PHFKDQLF DQG RWKHU VNLOOHG WUDGHV SRVLWLRQV Austen Miller Aerotek 607.725.9418 1301 W. Geneva, Tempe MAY

Kerry Vance

Consolidated Resources

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5/11Board Safetyof Meeting (General Safety Standards) 11:30 7R ÂżQG RXW KRZ \RX FDQ SXW RQH RI WKH ODUJHVW QHWZRUNV RI LQG

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

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ur business s to profits Jeff Trimble

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Semiray

Chris Tanner

Solid Products

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Star Metal Fluids LLC

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Top Gun Consulting

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TW Metals

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Ulbrich Stainless Steel & Spec.

Get Turned-On to the ATMA!

602.466.2556

arizonatooling.org

2435 S. 47th Street, at Airport LeavittHilton, Group, 919 N. 1st St.,Phoenix Phoenix

JUNE 6/09 Combined Membership, Marketing & Program 6/08Meeting Safety Meeting (GeneralatSafety Standards) 11:30 11:30-1:00 Foresight Technologies, at Leavitt Group, 919 N. 1st St., Phoenix 1301 W. Geneva, Tempe 1.888.AEROTEK | www.aerote 6/09 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight11:30-1:00 Technologies,at 6/21 Board of Directors Meeting 1301 W. Geneva,2905 TempeS. Potter, Tempe, 85282 Micro-Tronics, 6/21 Board of Directors Meeting 11:30-1:00 at

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

MANY THANKS MANY THAN

When you’re ready to build on your 602.257.4660 achievements, our trusted experts areTO OUR 2011 ATMA TO OUR 2011 ATM 602.455.3386 SPONSORS! ready to support your personal and VALUED 480.897.4988 VALUED SPONSOR professional goals. Our business bankers 602.721.0176 live and work in your community and 602.275.1917 know that good relationships make 480.206.0330 602.256.2092 us all stronger. With our customized 623.687.8386 tools and services, we can help you 602.510.5998 grow your enterprise and build a 602.470.0334 legacy of wealth and success.

602.864.0014 203.234.3464 Scottsdale

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

wellsfargo.com

ights reserved. Member FDIC. (894067_08195) PrecisionNews

5/17 Board of Directors Meeting 11:30-1:00 at MANYJUNE THANKS Micro-Tronics, 2905 S. Potter, Tempe, 85282 6/08 Safety Meeting (General Safety Standards) 5/25 General Dinner Meeting 5:00-8:00pm at SPONSORS: Phoenix 11:30 TO OUR 2013 ATMA VALUED

602.258.7751

Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

22

at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

Micro-Tronics, 2905 S. Potter, Tempe, 85282

september/october 2013

Welcome!

NEW ASSOCIATE MEMBERS

Solid Products Chris Tanner 229 W. Central Ave #1617 • Phoenix, AZ 85128 phone: 480.206.0330

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(New Associate Member)

SVS Group Megan Lenhart 960 W. Elliot Rd. • Tempe, AZ 85284 phone: 623.687.8386 mlenhart@svsjobs.com • www.svsjobs.com (New Associate Member)

NTMA UPCOMING EVENTS 2013 Fall Conference The Omni Parker House, Boston, MA October 16-19 2014 The MFG Meeting Arizona Biltmore, Phoenix, AZ March 5-8, 2014 VISIT:

NTMA.ORG 800-248-6862

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October 2013

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

www.metalworkingadvocate.org

Precision News Articles/Ads Due > 10/7 - REVISED DATE! NTMA Conference > 10/16-19 Board of Directors Mtng > 10/22 @ 4:00pm (MicroTronics) Membership/Mktng & Program Mtng > 10/24 (Fiesta Inn/Raintree Room) @ 4:00pm - 5:30pm Dinner Meeting > 10/30 @ 5:00pm - 8:00pm (Airport Hilton) For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org Arizona Tooling & Machining Association

or contact the NTMA at 800.248.6862

ATMA PRECISION september/october 2013

arizonatooling.org

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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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september/october 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

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

32 /

september/october 2013

arizonatooling.org

arizonatooling.org25 / 19 PrecisionNews

PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

SAN DIEGO CHAPTER

REGULAR MEMBERS

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

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

Todd C. Lawson

Academy Machine Products

760.439.0109

Jodi Deane

Advanced Maching and Tooling

858.486.9050

Steve Doda*

Aerotek Commercial Staffing

619.278.3014

Bill Mengel

Aerotek Commercial Staffing

619.278.3042

Sean Tillett

Alphatec Spine

760.494.6774

Peter Neville

B&H Tool Company Inc.

800.272.8878

Alejandra Rogue

BMW Precision

760.439.6813

Lyle Anderson

C&H Machine and EDM Services

760.746.6459

Margarita Brear

Compucraft Industries, Inc.

619.448.0787

Michael J. Brown

Computer Integrated Mach., Inc.

619.596.9246

Erich Wilms

Diversified Tool & Die

760.598.9100

Alex Fima

Directed Mfg.

512.355.1360

Donovan Weber

Forecast 3D

760.929.9380

Andrew Allen

Henry Machine, Inc.

760.744.8482

Karen Green**

Industrial Metal Suppy Inc.

619.977.9486

Martin Mechsner**

Industrial Metal Suppy Inc.

858.277.8200

Jim Piel

J I Machine Company, Inc.

858.695.1787

Antonio Dominquez

Johnson Matthey, Inc.

888.904.6727

Dan Faupel

Johnson Matthey, Inc.

858.716.2301

Heather Russell

K-Tech Machine, Inc.

760.471.9262

Frank Harton

L.F. Industries, Inc.

760.438.5711

Cliff Manzke

Manzke Machine, Inc.

760.504.6875

Russell Wells Sr.

MarLee Manufacturing, Inc.

909.390.3222

Tony Martindale

Martindale Manufacturing Co.

760.744.3078

Linda Kurokaw***

Mira Costa College

760.795.6824

Mark Rottele

Roettele Industries

909.606.8252

Robert Kemery

Solar Turbine

619.544.2808

Scott Cormony

Waterjet West, Inc.

760.471.2600

Hernan Luis y Prado

Workshops for Warriors

619.550.1620

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

FOUNDING PARTNERS 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.”

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

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

September 5th Board Meeting • Location and Time TBD October 3rd Board Meeting • Location and Time TBD October 17th Member Meeting • Topic and Location TBD Visit www.ntmasandiego.org for details as they become available.

26

PrecisionNews

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september/october 2013

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

september/october 2013

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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 May, 2013 Meeting Sponsor: Shamrock Precision June, 2013 Meeting Sponsor: Campat Machine Tool September 26, 2013 – Golf Tournament October 17, 2013 – Kenney Industries/ Mountain View College

28

PrecisionNews

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september/october 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” september/october 2013

arizonatooling.org

PrecisionNews

29

Feature Story // PrecisionNews

YOUR NEW PRODUCT IS SO IMPRESSIVE THAT IT IS SELLING ABOVE YOUR EXPECTATIONS. YOU HAVE COMMERCIAL AND MILITARY CUSTOMERS IN THE US. YOUR SUCCESS ATTRACTS THE ATTENTION OF AN INTERNATIONAL CUSTOMER THAT PLACES AN INITIAL ORDER FOR 1,000. YOU GO AHEAD AND SHIP THE ORDER, HAPPY TO HAVE ENTERED THE OVERSEAS MARKET. WHAT YOU MIGHT NOT KNOW IS THAT YOU HAVE VIOLATED EXPORT RULES AND YOU MIGHT BE LIABLE FOR PENALTIES IN THE MILLIONS OF USD AND YOU MIGHT EVEN FACE JAIL TIME!

EXPORTING YOUR PRODUCT: SELLER BEWARE STORY BY SERGIO CECUTTA

EAR and ITAR Regulations The majority of the components produced by NTMA member companies fall under export restrictions regulated by the US government. The restrictions vary from export country to export country and from component to component.There are two types of regulations that control and oversee these restrictions: EAR: Export Administration Regulations, administered by the Department of Commerce’s Bureau of Industry and Security, regulating the export of goods, services and technologies listed in the Commerce Control List.

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EAR – Iran, Cuba, Syria, North Korea, Iraq ITAR – Afghanistan, Belarus, Cuba, Cyprus, Eritrea, Fiji, Iran, Iraq, Cote d’Ivoire, Lebanon, Libya, North Korea, Syria, Vietnam, Myanmar, China, Haiti, Liberia, Rwanda, Somalia, Sri Lanka, Republic of the Sudan (Northern Sudan), Yemen, Zimbabwe, Venezuela, Democratic Republic of the Congo.

Be careful, as even single companies or individuals can be restricted from acquiring your products. Look at this useful link for more information, including links to the list of barred entities and individuals:

ITAR: International Traffic in Arms Regulations, administered by the Department of State’s Directorate of Defense Trade Controls, regulating the export of defense related goods, services and technologies listed on the United States Munitions List.

http://doresearch.stanford.edu/research-scholarship/export-controls/ export-controlled-or-embargoed-countries-entities-and persons#countries

Each of these regulations lists specific countries, entities and individuals that are barred from receiving exports from the US:

You will also notice that countries that can accept US commercial exports are instead barred from defense related items. As you are

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Sidebar Story // PrecisionNews

Be careful, as even single companies or individuals can be restricted from acquiring your products.

ultimately responsible for the end use of your component, make sure you understand where the component will be used. For example a sale of a defense related item to a company in South Africa for use on a Chinese aircraft is a violation of ITAR regulations.

The punishment for violating these regulations is steep and can include criminal charges against the individuals involved in the violation. Furthermore monetary penalties up to hundreds of millions of USD can be assessed and the company export privileges can be suspended for a period of time or completely revoked. Be sure to read through the Department of Commerce and the Department of State regulations, or you can also consult a very informative website that can answer many of your export related questions: http://export.gov/index.asp.

Changes on the Horizon The United States Munitions List states that “any component, part, accessory, attachment, and associated equipment� for airplanes is subject to export control rules. Many US companies have complained that the complex export regulations make them less competitive and have resulted in the loss of several international deals.

The US government has listened to these complaints and it is changing the regulations. As of October 2013, some of the old restrictions on airplane parts will be relaxed, making it easier for NTMA members to export.

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.

Do you know who is the end user of your component?

In 2007 ITT Corporation, a diversified leading manufacturer of highly engineered critical components and customized technology solutions with over $8B in revenue, had to pay $100 million in fines and forfeitures and had to plead guilty to two felony charges due to the violation of ITAR regulations because of the unauthorized retransfer of night vision technology to China.

When exporting goods, services and technologies to another company, make sure you understand where the complete system will be used.

Do you know that one of your foreign national employees reading an email could be violating export regulations?

In 2000 a foreign national on a non-immigrant visa was hired by Honeywell to work on Flight Management Systems (FMS). FMS is an exportcontrolled technology under EAR regulations.

Honeywell had to file for an export license as every document the new employee accessed was considered exported.

When hiring a foreign national, as a full time employee, part time employee or as an intern, understand what documentation, including emails, the person will have access to. If you need this person to access EAR regulated documents, you will need an export license.

Citations: http://www.itt.com http://www.militaryaerospace.com/articles/2009/07/itar-violations-haveproduced-high-profile-defense-export-penalties.html http://money.cnn.com/magazines/fortune/fortune500/2007/snapshots/ 692.html http://www.businessweek.com/articles/2013-05-09/cold-war-era-ruleson-military-exports-get-an-overhaul

Learn more at: www.smg-consulting.com

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Shop Floor NEWS FROM THE FRONT LINES

Implementing GHS Understanding information on appropriate handling and safe use of hazardous chemicals from THE ATMA SAFETY TEAM

On March 26, 2012, the United States Federal Register published the final rule on the Hazard Communication Standard/Globally Harmonized System. This final rule will become effective 60 days after the date of publication. The changes will bring the U.S. Occupational Safety and Health Administration (OSHA) Hazard Communication Standard, which was first adopted in 1983, in line with the international Globally Harmonized System of Classification and Labeling of Chemicals (GHS).

The new rule will provide all employees with easily understandable information on appropriate handling and safe use of hazardous chemicals.

What are the benefits?

The basic goal of hazard communication is to ensure that employers, employees, and the public are provided with adequate, practical, reliable, and comprehensible information on the hazards of chemicals, so that they can take effective preventive and protective measures for their health and safety.

Thus, implementation of effective hazard communication provides benefits for governments, companies, workers, and members of the public.

What is the GHS Safety Data Sheet (SDS)?

The (Material) Safety Data Sheet (SDS) provides comprehensive information for use in workplace chemical management. Employers and workers use the SDS as sources of information about hazards and to obtain advice on safety precautions. The SDS is product related and, usually, is not able to provide information that is specific for any given workplace where the product may be used. However, the SDS information enables the employer to develop an active program of worker protection measures, including training, which is specific to the individual workplace and to consider any measures that may be

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necessary to protect the environment. Information in the SDS also provides a source of information for other target audiences such as those involved with the transport of dangerous goods, emergency responders, poison centers, those involved with the professional use of pesticides, and consumers.

When will the GHS be implemented?

Federal Effective Completion Dates: December 1, 2013: Employers must train employees on the new label elements and SDS format.

2014: Employees shall be retrained one year after initial training on SDS format.

June 1, 2015:* Chemical manufacturers, importers, distributors, and employers must comply with all modified provisions of this final rule. Distributors may ship products labeled by manufacturers under the old system until December 1, 2015. * This date coincides with the European Union implementation date for classification of mixtures.

June 1, 2016: Employers must update alternative workplace labeling and hazard communication program as necessary, and provide additional employee training for newly identified physical or health hazards.

The five main requirements of a Hazard Commutation System are: • Written plan • Chemical inventory • Labels and warnings • Training • Safety Data Sheets (SDSs) Free OSHA Training on GHS http://www.ica.state.az.us/ ADOSH/ADOSH_Newsletters.aspx For local Arizona ADOSH Training Schedule: www.ica.state.az.us/ ADOSH/ADOSH_Newsletters.aspx References: ntma.org/resources/business management, safety.blr.com, osha.gov, Arizona Division of Occupational Safety and Health (ADOSH).

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

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