Precision News September/October 2014

THIS ISSUE: Open Your Doors / Workers Keep Working / 125 Plan Compliance / Machine Safeguards

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

ARIZONATOOLING.ORG SEPTEMBER/OCTOBER 2014

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TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

A SPECIAL MESSAGE FROM PN:

MAKE IT HERE

Inside: LOOKING INTO THE ‘SHARKTANK’

ONE TV SHOW’S ABILITY TO QUICKLY DIAGNOSE AND UNDERSTAND THE CORE ENTERPRISE VALUE OF AN ORGANIZATION

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MANUFACTURING MATTERS HIGHER PRODUCTION MEANS HIGHER WAGES FOR WORKERS AND HIGHER LIVING STANDARDS FOR ALL OF US starting on p.12

THE PRODUCTION ISSUE NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

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Let us help you design a benefit program that fits the needs of your company. The employee benefits you offer can help your company grow or cripple it. It’s tough to make good choices or to even know what your choices are with rising costs, constant and uncertain shifts in what you can and can’t offer your employees, what it will cost and even whether or not you current plan is even legal or if it is legal, for how long? Before you pull your hair out and scrap everything, let our team of specialists provide you with some options that are clear, cost effective and flexible.

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. For a no obligation evaluation and consultation, contact Glenn VanNoy at 760-419-1393 or gvannoy@championrisk.net. LIC #0800751

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The Future of Manufacturing

Companies save money with Health Reimbursement Arrangements by Jim Iacometti, CPA (inactive)

Are you tired of paying higher health premiums for less coverage? This is the tenth straight year of double-digit increases in health care costs. As a former audit partner in a large local CPA firm, I have seen the profits of many companies erode because of these large increases. Fortunately, for employers and employees alike, there are alternatives other than absorbing these increases or simply reducing benefits. Consumer Directed Health Care has become a popular alternative to these rising costs that have plagued us for several years. Though Fortune 1000 companies have been using Consumer Directed Health Care for years, it gained national prominence during the 2000 Presidential campaign. Here, in the national spotlight, candidates debated the philosophies of letting the government control your healthcare (national healthcare) and letting the individual make their own choices regarding their health care. People already purchase TV’s, computers, and food based on quality, and price. Why should healthcare be any different? Employees should be free to choose their doctor or pharmacy. When employees shop for health care, consumerism creates competition, and competition in turn creates better products at a lower cost. As an example, one employee needed a lab test that was going to cost $1,000. Under their old traditional plan, the employee would not have shopped around because it wasn’t his money at stake. Then the company switched to a HRA plan and it was the employee’s money. By making a few calls, a lab was found to do the same test for $400, leaving more money in their HRA. Two leading Consumer Directed Health Plans are Health Reimbursement Arrangements (HRA’s) and Health Savings Accounts (HSA’s). HRA’s were created by the IRS in 2002 and are employer sponsored and funded health care plans where employees have money in an account to be used for qualified medical expenses. The employer has a lot of flexibility with these types of plans. An HSA is an account where individuals save money on a pre-tax basis in an account to be used for qualified medical expenses. Both of these work in coordination with your insurance plan. It is in the employee’s best interest to monitor how they spend their HRA money because, if they spend it all, they will have to start to pay with their own money. Unlike managed health care, this type of plan design allows individuals to be responsible for how their money is spent; i.e., consumerism. HRA’s save employers and employees money, allow for less cost to the employee, and increases benefits as time goes on. HRA plans are very flexible and can also be designed to reimburse dental, vision, and other related expenses. There is an art to designing a effective HRA plan. The most important aspect is a good plan design and the second most important aspect is employee education. You must first find the right insurance plan to use based on the demographics of the group. A good HRA plan will save money and actually increase the benefits to the employees.

SEPTEMBER/OCTOBER 2014 VOLUME 4 • ISSUE 5

Contents 12

Features

Departments

LOOKING INTO THE ‘SHARKTANK’

03 President’s Letter 04 Policy Matters

What’s amazing about this show is the Sharks’ ability to quickly diagnose and understand the core enterprise value of an organization. A MESSAGE ON MANUFACTURING DAY:

MANUFACTURING 16 MATTERS

21 NTMA Initiatives 22 Websites that Work 22 Arizona Chapter Info 28 San Diego Chapter Info 29 NTMA Membership 30 North Texas Chapter Info

U.S. manufacturers are the most productive in the world. Higher production means higher wages for workers and higher living standards for all of us.

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

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ....................................

CONTRIBUTING WRITERS Jamie Beauvais, AJ Jorgenson, David Lair, Omar S. Nashashibi, Brent Terhaar, Lela Yu 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 ©2014 by ATMA. All rights reserved.

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First Word PRESIDENT’S LETTER

Happy August, P.N. Readers! I hope you have survived the summer unscathed and that you’re looking forward to the fall and for some of us cooler weather! . . .. ..

If I haven’t said it before participation in our association is a primary benefit in our industry. Few of us are islands unto ourselves. Working with and sharing knowledge and experience with our peers is very beneficial to each of our businesses. In reflection on the recent Southwest Regional Conference, it was a great event! A short weekend jaunt to Dallas and a full agenda of speakers, roundtables and breakout sessions. And if that wasn’t enough ALL the ICE CREAM you could eat thanks to one of the sponsoring partners! We had participating members from 6 states in the southwest! Sharing regional business conditions, discussing best practices or just talking shop made the networking terrific. Add to this the information shared in our general sessions on economic and political trends plus the breakout sessions on emerging technology and using technology among other relevant topics was well worth the weekend time invested. Plus the side bar conversations in quiet times or during a meal certainly helped to build relationships within our association. So I encourage you to maintain those connections with your peers and look forward to the next national event or regional event for another opportunity to engage in YOUR association.

DAVID LAIR Vice President, Dynamic Machine & Fabrication Corp. and President, ATMA

Speaking of talking shop, I want to share another wonderful observation. When traveling either around your own state or perhaps in to other regions try and make time to visit one or more member’s businesses. What a treat this is! Todd Ellard, President of the North Texas Chapter, was very gracious while I was in Dallas. I was privileged to tour his family business, Manda Machine. The sharing of experience and talking about history, challenges, and future plans is what we all do. And walking in the paths where your peer does every day gives you a new perspective and food for thought about what you’re doing in your own shops. The mutual encouragement and comradery of industry friends is the fabric of manufacturing. Thank you Todd. Enjoy this issue of Precision News. Share with us your comments about content or opportunities for improvement. We want to hear from you! I wish continued success to each of you.

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Policy Matters BECOME A VOICE FOR CHANGE

Congress Flees While Regulators, Manufacturers Keep Working by OMAR S. NASHASHIBI

In August, members of Congress took a 5-week break from Washington, D.C. to campaign, meet with constituents, travel, and take vacations ahead of the November 4 mid-term election. The history of Congress taking time off dates to 1791, but it was not until 1970 that lawmakers made it official by passing a law mandating they take time away from Washington every August. To some, that may sound like Senators and Representatives gave themselves a thirty-day vacation, in addition to the standard ten annual Federal Government holidays. Meanwhile, manufacturers kept working around the clock. Unfortunately, so did federal regulators who, in just the first seven days of August, published 94 final rules, proposed another 51 regulations, and issued 469 notices. I recently had the chance to attend the 2nd Annual National Tooling and Machining Association Southwest Regional Conference in Dallas. While I was there, I heard first hand from manufacturers about the latest technologies they are developing and their efforts to recruit and train the next generation of manufacturers. I also heard

about OSHA inspectors repeatedly visiting plants despite no offenses in previous walkthroughs. These business leaders also raised concern about the EPA’s latest effort to target small businesses. In July, the EPA withdrew a direct rule allowing it to garnish wages of those it says are delinquent on debts to the Agency. The EPA is still moving forward with it as a proposal but this time allowing the public to provide input. Oneof the reasons I jumped at the opportunity to speak at the NTMA SW Regional Conference was that it allowed me to meet with a number of manufacturers from Arizona, California, Colorado, New Mexico, Oklahoma, Texas, and Utah. Most politicians in Washington, D.C. picture the Rust Belt states when they think of manufacturing in America. What they do not realize, is attendees of the SW Conference come from states with a total of 2,632,600 manufacturing employees, representing 22% of the industry’s workers in the U.S. When I speak around the country, it is not often I can deliver good news from Washington, but manufacturers secured a significant victory on July 22, 2014 when

fyi: It was not until 1970 that lawmakers made it official by passing a law mandating they take time away from Washington every August. + Photo: NTMA

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President Obama signed the Workforce Innovation and Opportunity Act (WIOA). NTMA's Washington, D.C. lobbying and public relations team has been working to help update the Workforce Investment Act of 1998 (WIA), which Congress allowed to expire in 2003. The new law updates WIA by eliminating 15 outdated and ineffective job training programs, prioritizes the use of industry skills standards such as those developed by NTMA-U and NIMS, and encourages the use of sector partnerships to increase regional cooperation. What I heard in Dallas is the same thing I hear from NTMA members around the country – manufacturers need a well-trained and reliable supply of employees. The situation had become incredibly challenging; some One Voice members reported turning away business because they did not have enough employees to complete the work. In its annual advocacy survey, 74% of NTMA members said they had at least one skilled position open in their manufacturing plants. The new WIOA law will go a long way towards addressing the issues faced by employers. continued on page 06

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Policy Matters

Congress Flees While Regulators, Manufacturers Keep Working continued from page 04

On a less positive note, regulators at the EPA, OSHA, and NLRB continued to issue new rules targeting manufacturers of all sizes. On July 22, 2014, the NLRB upheld a regional decision to allow employees within a division of a business to form their own union. The creation of micro-unions means employees could create a bargaining unit consisting solely CNC operators, shipping, or janitorial staff. The EPA continues to march forward with its proposed regulation of emissions from existing power facilities, which follows a September 2013 proposal placing additional requirements on new power plants, with a specific focus on the coal industry. While Congress is out of Washington, the EPA also hit the road in

August, holding a series of public hearings to draw attention to its pending regulations. When Congress returns to Washington in the second week of September, it will face a slew of unfinished business. The House and Senate have to reach a compromise on continuing funding for the federal government to avoid another shutdown on October 1st. Congress has thus far been unable to reach an agreement to keep the Export-Import Bank running past September 30. The Ex-Im, as it is known, provides loans to U.S. businesses trying to sell their products overseas, and has historically had bipartisan support.

wonder what would happen to the global economy if U.S. manufacturers took a fiveweek vacation every summer. If they had their way, manufacturers would rather have regulators take August off, giving U.S. businesses a breather from a few hundred new rule and guidelines.

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

As you put the Congressional August Recess into perspective, one can only

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Best Practices in Action SPECIAL ADVERTORIAL

Is Your Section 125 Plan in Compliance? either shows the benefits elected under the 125 Plan or that the employee is waiving participation under the 125 Plan.

A Section 125 Plan is a great program that allows employees to purchase certain eligible benefits on a pretax basis. Regularly reviewing your plan to ensure it is compliant with IRS regulations will help it remain a valuable part of your employees’ overall benefit package. Areas of your plan that should be reviewed are listed below.

The 125 Plan must also follow specific terms included in the document, such as those pertaining to the grace period (if offered) and eligible midplan year election changes.

Plan Document Requirements To remain in compliance with IRS regulations, the plan must be in writing and must operate in accordance with its written plan terms. You should have an up-to-date copy of the plan document. The document should be reviewed periodically by the employer and any plan changes properly included. In particular, you should verify the following items are correct in the plan document:

FSA Requirements A 125 Plan that offers one or more FSAs must follow the rules established for those accounts. This includes the “uniform coverage” rule which states that a participant’s full Health FSA annual election must be made available to him or her throughout the plan year regardless of the amount of contributions made to the account and the “use-or-lose” rule, which requires unused elected amounts be forfeited at the end of the plan year.

• Plan year, • Insurance benefits, carriers, and descriptions, • Eligibility of the insurance benefits offered under the plan, • Eligibility requirements for participation in the plan, • Flexible Spending Account (FSA) minimum and maximum contributions (if offered), • Nonelective (employer) contributions and elective (employee) contributions.

You may choose to offer the carryover provision or a grace period for your Health FSA. The carryover provision allows employees to carry over up to $500 of unused contributions into the next plan year. A grace period allows employees a period of time after the plan year ends to continue incurring expenses to be reimbursed from the remaining balance of the previous year's Health FSA contributions. The carryover provision and the grace period help employees combat the “use-or-lose” rule associated with the account.

Plan Design Requirements A Section 125 Plan must offer a choice between at least one taxable benefit (such as salary) and one qualified benefit (such as major medical coverage). A plan that does not offer this choice is not a Section 125 Plan and may be disqualified by the IRS in the event of an audit. The plan must only offer eligible benefits as defined by IRS regulations. These include major medical plans (insured plans, HMOs, PPOs, high deductible health plans, and selfinsured plans), dental plans, vision plans, cancer coverage, disability coverage (long and short-term), and certain term life insurance. It could also include Flexible Spending Accounts (FSAs) such as a Dependent Day Care Flexible Spending Account (Dependent Day Care FSA), Health FSA (also known as an Unreimbursed Medical Account), as well as Health Savings Accounts (HSAs). Offering benefits, other than eligible benefits, is not allowable. You should have signed election forms for each employee that

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An employer is also restricted on the use of any FSA forfeitures. Using FSA forfeitures other than as expressly allowed in the IRS Regulations could cause the FSA Plan to be out of compliance. The FSA must also require that claims meet specific eligibility requirements and must be properly substantiated. The FSA cannot allow for claims to be reimbursed that were incurred prior to the FSA’s period of coverage. For questions regarding your Section 125 Plan, or to learn more about how to keep your Section 125 Plan compliant, please contact:

LELA YU, District Manager at 602.418.8109 or lela.yu@americanfidelity.com Learn more at: www.americanfidelity.com

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Feature Story // PrecisionNews

Looking into the

SharkTank STORY BY BRENT TERHAAR

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I despise most reality T.V. shows. You know the shows I’m talking about - they highlight the ex-olympic athlete’s dysfunctional Hollywood family, they show a group of castaways looking to vote off members on a remote island, or they follow the daily lives of the real (or not so real) housewives of who knows where. If this is a today’s true depiction of reality, then I want to go back to the days of watching Andy Griffith and Happy Days. There is one reality show that does intrigue me. The show is called SharkTank. If you haven’t seen SharkTank, it’s the show where entrepreneurs go in front of a 5 person panel (the Sharks) to pitch their product and try to raise capital. These sharks are successful entrepreneurs in their own right who are looking to invest in the next big thing. While there is some grandstanding and shock value that goes along with this show (they still need to get ratings), what amazes me about this show is the Sharks’ ability to quickly diagnose and understand the core enterprise value of an organization. It only takes about four or five probing questions to understand the opportunities, competitive threats and succession plan of the business. They put the entrepreneur on the hot seat to see if they can quickly articulate their value proposition. They don’t accept answers like ‘I feel’ or ‘I think’, and they don’t allow an entrepreneur to rationalize or downplay a business risk. They want tangible, concrete evidence that supports the business plan. At times, the questions and comments may seem harsh. However, given that they are being asked to contribute hundreds of thousands of dollars on a 10 minute pitch, their tenacity at getting to the core of the business plan is understandable. continued on page 14

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As an entrepreneur, you are the one who has taken the financial risk and bet on yourself.

Feature Story // PrecisionNews

Looking into the SharkTank continued from page 13

If you’ve watched this “interrogation”, the questions revolve around a series of common topics: What’s your revenue? What’s your profitability? Who are your customers? What is the market potential? What is your manufacturing and distribution process? Who’s running the business? How did you come up with your valuation? What will you use the money for? These questions are focused on the fundamentals of building enterprise value. We have a model for this we call the Value Triangle. The Value Triangle isolates the four primary “engines” that drive enterprise value and sustainability in any business. Each of the questions typically asked by the Sharks can be mapped to one of the primary engines of the Value Triangle. What’s your profitability = Financial Engine; What’s your market potential = Growth Engine; What’s your manufacturing process = Execution Engine; etc…. If you have watched the show with any frequency, you will notice a common characteristic of the entrepreneurs who end up getting the capital from the Sharks - they are rock solid on the fundamentals of success in their business, know the risks and how they will mitigate them, and provide crisp answers to the Sharks’ questions. This correlation shouldn’t be surprising. Companies who employ a balanced approach to building all four engines of their Value Triangle are the ones deemed to be the most sustainable and command the most value. Companies who rationalize why a customer concentration, execution issue or sustained financial underperformance is acceptable, often become Shark bait.

As business owners, you likely won’t appear on SharkTank. Ironically, you meet the Sharks everyday (just without the TV cameras and make-up). They are the large customers debating whether or not you have the operations to support their business. They are the lenders deciding whether or not you are a good bet in a down economy. They are the suppliers deciding whether providing special terms to your business is a good move. Eventually, you may be in front of the ultimate group of Sharks – those looking to buy your business. As an entrepreneur, you are the one who has taken the financial risk and bet on yourself. Being able to realize the full value of your life’s work may mean setting aside that pride and taking a critical look at your business. The ability to articulate your value proposition is important regardless of the audience. When you look at your company, do you have a balance between the four engines that drive value? Do you know in concrete terms how you are addressing the risks inherent in any privatelyheld business? If you want to maximize the value of your company, take a lesson from reality T.V. and be prepared to answer those questions as if you were going to enter the SharkTank.

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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BY AJ JORGENSON

A Message on Manufacturing Day:

Manufacturing Matters

U.S. manufacturers are the most productive in the world. Higher production means higher wages for workers and higher living standards for all of us. IN ARIZONA, MANUFACTURERS EMPLOY 6 PERCENT OF THE WORKFORCE and earn nearly 77 percent more than other nonfarm employers in the state. Which is why Governor Brewer declared October as “Arizona Manufacturing Month” to join with manufacturers natation-wide to celebrate Manufacturing Day. Modern manufacturing is innovative, high-tech and cutting edge. Clean suits are as common as hard hats.

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Today’s manufacturing is not your father’s manufacturing. That’s why manufacturers across the country are opening their facilities to their communities today. To show Americans what manufacturing really is, and isn’t. To allow students to explore new opportunities, and show parents and teachers the rewarding careers available. continued on page 18

What Really Looks Like What Wha t Manufacturing Manufacturing Manu M anuf fac acturing tu Really Reall y Looks L ook ks Like Celebrating Manufacturing Day Celebrating C elebrating Manufacturing Day

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*Representatives from Manufacturing Day *Representatives from Manufacturing Day

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Feature Story //

At The Manufacturing Institute, we are working to help manufacturers attract quality talent and develop the workforce pipeline.

PrecisionNews

A Message on Manufacturing Day: Manufacturing

Matters

continued from page 17

Manufacturers in the United States need smart, new minds. More than 80 percent of our nations manufacturers can’t find skilled workers they need, and the impact to our economy is staggering. To add to the growing skills gap, the current manufacturing workforce is nearing retirement, and no one is there to fill the void they will leave. At The Manufacturing Institute, we are working to help manufacturers attract quality talent and develop the workforce pipeline. We are partnering with colleges, like Maricopa County Community College, to ensure students receive industry-based certifications and a direct path to a manufacturing career. The Manufacturing Institute is joining with local officials and governments to ensure success. When we all work

clares ewer de r B r o n r Gove to be October AZ

NTH IN MFG MO .3.14! 10 Starting

A CUT ABOVE. ///////////////////////////////////////////////// We have the capabilities and the skills to get any job done.

together, manufacturing is stronger, and when manufacturing is stronger, the U.S. is stronger. Every dollar in final sales of manufactured products supports $1.33 in output from other sectors—this is the largest multiplier of any sector. Manufacturers won’t settle for average, and we won’t let our country. It’s time to make our future happen. Here in Pennsylvania, we can be part of the solution; we can lead the way. That is why we are glad to be supporting Manufacturing Day. To learn more about Manufacturing Day and other initiatives in you area, visit www.MFGDAY.com

CNC Machining 5-Axis Machining Multi-Spindle Machining Lights Out Machining Blade and Blisk Machining Electro-Discharge Machining Laser Machining Waterjet Machining Sheet Metal Fabrication Gun Drilling Jig Bore/Jig Grind Hydroforming Cylindrical Grinding Surface Grinding Curvic Grinding Tool Grinding Thread Grinding Creep Feed Grinding Chemical Milling

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

ATMA PRECISION

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

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CMY

1235 S. 48th Street, Suite #1 Tempe, AZ 85281 480.615.6353 www.arizonacnc.com 20

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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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2014 ATMA BOARD OF DIRECTORS

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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS REGULAR MEMBERS David Wright

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PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS MARK YOUR CALENDAR WITH THESE

ASSOCIATE MEMBERS

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At AerotekÂŽ not only do we know yo 480.755.0415 at time to really understand your n 5/17 Board of Directors Meeting 11:30-1:00the National of Arizona 623.872.2540 Mike Hasenkamp Micro-Tronics, 2905 S.Bank Potter, Tempe, 85282 QHHG WR ÂżOO RQH SRVLWLRQ RU UHTXLUH D VWD Noel Trias PensionMark/401K Matrixat Phoenix 760.432.9614 5/25 General Dinner Meeting 5:00-8:00pm HQWLUH RUJDQL]DWLRQ ZH ZLOO ÂżQG \RX WKH Airport Hilton, 2435 S. 47th Street, Phoenix David Pettycrew

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TO OUR 2011 ATM VALUED SPONSOR

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ATMA EVENTS IN SEPT/OCT 2014 September Board of Directors Mtng > 9/16 @ 4:00pm (MicroTronics) Membership/Mktng & Program Mtng > 9/18 @ 4:00pm (Doubletree Hilton/Raintree Room) @ 4:00pm - 5:30pm Roundtable > 9/27 @ 5:00 - 8:00pm (Airport Hilton)

October Manufacturing in AZ Month Begins! > 10/3 Precision News Articles/Ads Due > 10/6 NTMA FALL CONFERENCE > 10/22-10/24, The Roosevelt, New Orleans, LA Membership/Mktng & Program Mtng > 10/23 @ 4:00pm (Doubletree Hilton/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 10/28 @ 4:00pm (MicroTronics) For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org Arizona Tooling & Machining Association

ATMA PRECISION september/october 2014 32 /

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PrecisionNews

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arizonatooling.org / 19

BE SEEN AND BE HEARD! 2014 NTMA Fall Conference October 22-24, 2014 The Roosevelt Hotel 123 Barrone Street New Orleans, LA Phone 504.648.1200 or visit ntma.org

PrecisionNews

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/ 9 arizonatooling.org arizonatooling.org PrecisionNews 27

PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

SAN DIEGO CHAPTER 2014 BOARD OF DIRECTORS

REGULAR MEMBERS Sean Tillett

Alphatec Spine

760.494.6774

Darryl Chudomelka

Asigma Corp.

760.966.3103

Peter Neville

B&H Tool Company Inc.

800.272.8878

Alejandra Rogue

BMW Precision

760.966.3103

Vice President CLIFF MANZKE Manzke Machine, Inc.

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

Corporate Secretary and Treasurer HEATHER RUSSELL K-Tech Machine, Inc.

Michael Duffy

Duffy Machine

760.598.7963

Donovan Weber

Forecast 3D

760.929.9380

Nhan Vo

Henry Machine, Inc.

760.744.8482

Jim Piel

J I Machine Company, Inc.

858.695.1787

Heather Russell

K-Tech Machine, Inc.

760.471.9262

John Riego de Dios***

Construction Tec Acad. Kearny HS

858.496.8370

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

Linda Kurokawa***

Mira Costa College

760.795.6824

Mark Rottele

Roettele Industries

909.606.8252

Beau Haubruge***

San Pasqual High School

760.291.6000

Scott Cormony

Waterjet West, Inc.

760.471.2600

President SEAN TILLETT Alphatec Spine, Inc.

Membership MIKE BROWN Computer Integrated Machining Past President TONY MARTINDALE Martindale Manufacturing BOARD MEMBERS Education Board Member John Riego de Dios Construction Tec Academy, Kearny HS Member at Large Lyle Anderson

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

ASSOCIATE MEMBERS

Member at Large Michael Brown

Glenn Van Noy

Champion Risk and Insurance Services

Founder 800.829.0807 x716

Chapter Executive Tammy Tillett

Steve Doda

Aerotek

760.916.1741

Greg Seaholm

IMS Metal Supply

Greg Mercurio

858.602.9297

Shop Floor Automation

619.461.4000 x1001

Chapter Executive Cathy Teal

San Diego - NTMA Chapter EVENTS 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.”

September 18, 2014 New Industrial Storm Water Discharge Regulations Free 2 hour Workshop - Industrial Storm Water Permits EVENT SCHEDULE: 5:00 pm Dinner & Networking, 6:00 pm Workshop LOCATION: C & H Machining Inc. 943 S. Andreasen Dr. Escondido, CA 92029-1934 760.746.6459

San Diego - NTMA Chapter 197 Woodland Pkwy., #104, PMB #148 San Marcos, CA 92069-3020 Phone: 805.558.5830 Email: info@ntmaSanDiegoChapter.com

October 16, 2014 ACA Update and Open Enrollment / How your company can beat rising premiums with Health Reimbursement Arrangements. LOCATION: TBD

www.ntmaSanDiegoChapter.org

PrecisionNews

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september/october 2014

Visit www.ntmasandiegochapter.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.

Let your ad be a call to action! Contact Precision News today for more details at: executivedirector@arizonatooling.org

PrecisionNews

VISIT:

NTMA.ORG 800-248-6862

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

arizonatooling.org

september/october 2014

arizonatooling.org

PrecisionNews

NORTH TEXAS CHAPTER 2014 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 September 25, 2014 – Golf Tournament Indian Creek Golf Course October 16, 2014 – Bodycote Heat Treat

PrecisionNews

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september/october 2014

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

Mark Hestly

Air & Earth Instrument Company

972.438.2277

Tommy Thompson

Bodic Industries

972.840.1015

Wayne Applegate

Applegate EDM, Inc.

972.488.8997

Lewis Lance

Bodycote Heat Treat

817.265.5878

Tony Woodall

AST Waterjet

972.554.0383

Rick Blair

Brook Anco Corporation

585.475.9570

Dan Wiktorski

Axis Machine Works, Inc.

214.390.5710

Craig van Hamersveld

Campat Machine Tool, Inc.

972.424.4095

Steve Ingersoll

Bailey Tool & Manufacturing

972.974.8892

Claudia Pautz

Castle Metals

972.339.5000

Michael Berdan

BE-Technologies, Ltd.

972.242.1853

Norm Williamson

H & O Die Supply, Inc.

214.630.6660

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

Curtis Dahmen

Kaeser Compressors, Inc.

972.245.9611

Robert McNamara

Davis Machine & Manufacturing

817.261.7362

Mark S. Holly

Machinists Tools & Supplies

214.631.9390

Kathleen Alvarez

Deka Texas, Inc.

214.618.1176

Leland McDowell

McDowell Machinery & Supply Co.

214.353.0410

Charles Gilbert

DNS Tool Cutter Grinding, LLC

972.241.5271

Nicki Smith

MSC Industrial Supply

817.590.2637

David Ellis

Ellis Tool & Machine, Inc.

903.546.6540

Ray Jones

MWI Inc. / Southwest Division

972.247.3083

Jim Harris

E.W. Johnson Company

972.436.7528

Mike Chadick

North Texas Precision Instrument

817.589.0011

Rudy D. Kobus

Expert Tool & Machine, Inc.

972.241.5353

Reed Hunt

Reed Hunt Services, Inc.

817.261.4432

Monte Titus

F& R Machine & Repair, Inc.

214.631.4946

Scott Devanna

SB Specialty metals

800.365.1168

Gary Fore

Fore Machine Company, Inc.

817.834.6251

Bob Severance

Severance Brothers

972.660.7000

Mike Lee

Fort Worth Centerless Grinding, Inc.

817.293.6787

Alan VanHoozer

Top Tooling of Dallas, Inc.

972.278.8300

Shevin Goodwin

Goodwin Machineworks

972.242.485

Glenn Wise

Wise Machinery, LLC

817.905.9473

Larry Borowski

Greenslade and Company, Inc.

817.870.8888

Oscar Guzman

Guzman Manufacturing

972.475.3003

David L. Hodgdon

H. H. Mercer, Inc.

972.289.1911

Don Halsey, Jr.

Halsey Engineering & Mfg., Inc.

940.566.3306

MANY THANKS

Mike Kenney

Kenney Industries

214.421.4175

Denver Knox

Knox Machine Company

817.551.1600

TO OUR NTMA-NORTH TEXAS SPONSORS:

K & D Tool & Die, Inc.

972.463.4534

Cory Trosper Keith Hutchinson

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

Lancaster Machine Shop

972.227.2868

Scott Cody

LSC Precision, Inc.

940.482.9700

Sammy Maddox

Maddox Metal Works, Inc.

214.333.2311

Todd Ellard

Manda Machine Company, Inc.

214.352.5946

David Evans

• Machining Excellence903.439.6414 since 1997 Manek Equipment, Inc.

Rodie Woodard

• ISOInc. 9001 + AS9100B972.501.9990 Certified Maximum Industries,

Woodrow W. Thompson Allen Meyer N Michelle Laudon Eddie Mills Eddie Steiner, Jr.

• Experienced senior machinists 214.330.7757 • Experts in stainless, aluminum, Meyer Enterprises plastics and exotics 972.353.9791 8A Certified,Inc. Viet Nam Vet, Micron Applied•Technologies, 972.978.8093 Minority Owned Small Business Mills Machine Shop 940.479.2194 • Eager to provide you with quality O E M Industries,performance Inc. 214.330.7271 and quick responses Metal Detail, Inc.

Morris Padgett

Padgett Machine Tools, Inc.

Troy Paulus

Paulus Precision Machine, Inc. 940.566.5600 www.nicholsprecision.com

254.865.9772

Contact Nichols at 480-804-0593

Joe O’Dell

Plano Machine & Instrument, Inc.

940.665.2814

Matt Harrell

Quickturn Technology, Inc.

469.643.5010

Barron Smith

R. W. Smith Company, Inc.

214.748.1699

Mike Embrey

Red Rock Industries

940.665.0281

Nancy Hairston

SculptCAD

214.324.0030

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

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 2014

arizonatooling.org

PrecisionNews

Shop Floor NEWS FROM THE FRONT LINES

Machine Safeguards by JAMIE BEAUVAIS, Arizona Safety & Emergency Consultants LLC

OSHA Standard General Machine Safeguards 29 CFR 1910.212 One or more methods of machine guarding must be provided to protect the operator and other employees in the machine area from hazards such as those created by point of operation, ingoing nip points, rotating parts, and flying chips and sparks. Examples of guarding methods are barrier guards, two-hand tripping devices, and electronic safety devices. Guards shall be attached to the machine where possible and secured, elsewhere if for any reason attachment to the machine is not possible. The guard must not act as an accident hazard in itself. The employer is responsible for safeguarding machines and should consider this need when purchasing machinery. Almost all-new machinery is available with safeguards installed by the manufacturer, but used equipment may not be. If machinery has no safeguards, you may be able to purchase safeguards from the original machine manufacturer or from an afterfyi: market manufacturer. You can also build and You can help prevent install the safeguards in-house. workplace injuries by looking at your workplace operations and identifying the hazards associated with the use and care of the machine.

Point of Operation "Point of operation" is the area on a machine where work is actually performed on the material being processed. The point of operation of machines whose operation exposes an employee to injury must be guarded. The guarding device must be designed and constructed to prevent the operator from having any part of his body in the danger zone during the operating cycle. Special hand tools for placing and removing material must permit easy handling of material without the operator placing a hand in the danger zone. Such tools must not take the place of fixed guards and can be used only to supplement the protection provided.

PrecisionNews

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september/october 2014

The Performance Criteria for Safeguarding [ANSI B11.192003] national consensus standard provides valuable guidance as the standard addresses the design, construction, installation, operation and maintenance of the safeguarding used to protect employees from machine hazards. The following safeguarding method descriptions are, in part, structured like and, in many ways are similar to this national consensus standard. Hazard Assessment You can help prevent workplace injuries by looking at your workplace operations and identifying the hazards associated with the use and care of the machine. A hazard assessment is a technique that focuses on the relationship between the employee, the task, the tools, and the situation. When evaluating work activities for potential injuries hazards, you need to consider the entire machine operation production process, the machine modes of operation, individual activities associated with the operation, servicing, and maintenance of the machine, and the potential for injury to employees. The results from the hazard assessment may then be used as a basis to design machine safeguarding and an overall energy control (lockout/tagout) program. • This is likely to result in fewer employees injuries; safer and more effective work methods; • Reduced workers’ compensation costs; • Increased employee productivity and morale.

Work Cited: Edwin G. Foulke, Jr. “Assistant Secretary of Labor for Occupational Safety and Health.” 2007. http://www.oshaeducationcenter.com