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The NTMA Southwest Regional Precision Magazine Featuring Arizona, San Diego and North Texas JANUARY/FEBRUARY 2011 Issue ON THE LEADING EDGE: 2011 Board of Directors

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Upcoming Events n

Manufacturing: Leading the Recovery

WORKING

TOGETHER

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Working Together For All

NTMA ARIZONA, NORTH TEXAS AND SAN DIEGO JOIN FORCES FOR MUTUAL SUCCESS!

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Helpful Websites

MAKE LOCALLY, THINK GLOBALLY

MAXIMIZING MACHINE EFFICIENCIES UHPT TECHNOLOGY CAN TRANSFORM MANUFACTURING IN THE U.S.

Grow Your Bottom Line by Making New Sales Abroad

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Regulatory “Regime” in Washington

MAKING THE MOST OF YOUR BIGGEST INVESTMENT arizonatooling.org THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

PLUS NTMA Update: Access to Credit Solutions Education Update: Training Top Talent

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AIX Group | A Member of The Hanover Insurance Group

Insurance protection beyond the nuts & bolts.

As a contract manufacturer, your work product may be in various stages of completion or may be at one of your subcontractors for processing. Is your current insurance coverage designed to adequately meet these and other scenarios? The National Tooling and Machining Association has a countrywide insurance program that will meet your specific requirements, designed by experts who really know your business. The NTMA Insurance Program writes Property, Equipment Breakdown, Inland Marine, Crime, General Liability, Commercial Automobile, Umbrella, and Workers Compensation.

Coverage Highlights: U An extensive property endorsement tailored to meet the coverage needs of NTMA members.

Coverage considers the following exposures: – What happens if your work product is damaged while being processed by a subcontractor?

– Do you have coverage for your work product while it is away from your shop?

– Do you have coverage while the work product is in transport?

– What happens if the work product is damaged prior to delivery?

Did you know that Employee Practices Liability lawsuits are on the rise? Your standard General Liability policy doesn’t offer protection against these losses. The NTMA Insurance Program has access to Employee Practices Liability Insurance through its association with The Hanover Insurance Group. Employment Practices Liability policy protects businesses from these types of losses:

– What happens if there is a loss to the stock and the price of materials has changed?

UÊ 7À }vÕ Ê` Ã ÃÃ> ]Ê` ÃV >À}iÊ ÀÊÌiÀ >Ì Ê of employment

– Are you covered for all of the losses that may happen? Temperature change?

UÊ Ài>V Ê vÊ> Ê « i`ÊV ÌÀ>VÌÊ ÀÊ>}Àii i ÌÊ relating to employment

U Ability to waive Aviation Exclusion on General Liability Coverage for NTMA Members U General Liability Coverage Enhancement available to help minimize exposures when working with multiple customers.

UÊ 7À }vÕ Êv> ÕÀiÊÌ Êi « ÞÊ ÀÊ«À Ìi UÊ « Þ i ÌÊÀi >Ìi`ÊÜÀ }vÕ Ê` ÃV « i UÊ -iÝÕ> Ê ÀÊ Ì iÀÊÜ À « >ViÊ >À>ÃÃ i ÌÊ vÊ> ÞÊ ` UÊ « Þ i ÌÊ` ÃVÀ >Ì

U Auto Liability Coverage Enhancement also available to broaden your Commercial Automobile coverage

Get the right coverage today!

Contact an NTMA representative, your insurance agent, or an AIX Group Program Manager.

AIX Group Program Manager , LiÀÌÊ >} ÊÊUÊÊnÈä°Ènΰ nÈnÊ ÀiVÌÊÊUÊÊÀ}>} J> Ý}À Õ«°V The NTMA Insurance Program is a guarantee cost program. Coverage is written by Nova Casualty Company, AM Best Rated A XIV. Nova Casualty Company is a member of The Hanover Insurance Group. Underwriting is provided by AIX Group, Inc. Employment Practices Liability Policies are underwritten by The Hanover Insurance Company and its affiliated companies.

LC 11-34

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Consolidated Resources, Inc. Industrial Recycling Specialists

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

• Glass • Wood • Plastic AT M A M E M B E R • Paper • Cardboard • Certified Material Destruction • All Ferrous Grades

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Call Kerry 623.931.5009

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CONTENTS JANUARY/FEBRUARY 2011

VOLUME 2, ISSUE 1 JANUARY/FEBRUARY 2011

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The NTMA Southwest Regional Precision Magazine

MAGAZINE

PUBLISHER MiNO Media, LLC EXECUTIVE DIRECTOR & EDITOR Chris Mignella CREATIVE DIRECTOR Neal McDaniel ONLINE SERVICES DIRECTOR Theo Tigno CONTRIBUTING WRITERS Anna Flaaten, Davis Hopkins, Alesa Lightbourne Ph.D, Omar Nashashibi, Brett Reynolds, Brent Terhaar

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ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL AND ADVERTISING Chris Mignella Phone: 602.242.8826 • Fax: 480.970.8501 Email: ExecutiveDirector@arizonatooling.org PLEASE SEND ADDRESS CHANGES TO Chris Mignella Phone: 602.242.8826 • Fax: 480.970.8501 Email: ExecutiveDirector@arizonatooling.org

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p DEPARTMENTS in this issue

FEATURES

03 President’s Letter

08 Make Locally, Think Globally National Export Initiative

04 News Roundup 06 Legislative Update 07 Education Update 14 Arizona Chapter Info 25 San Diego Chapter Info 28 North Texas Chapter Info 30 Safety Corner

10 Making the Most of Your Biggest Investment Discover “The Value Triangle” 12 Maximizing Machine Efficiencies Ultra-High Performance Toolpath (UHPT) Technology Can Transform U.S. Manufacturing 22 SPECIAL ADVERTISING FEATURE Concentrate on the Concentration The Oil Barron Bulletin

Precision Magazine is published six times per year

by MiNO Media, LLC. Opinions expressed are those of the authors or persons quoted and not necessarily those of MiNO Media, LLC. While efforts to ensure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content. Publisher assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from the publisher is prohibited. Precision Magazine is the registered trade name of this publication.

Copyright ©2011 by MiNO Media, LLC. All rights reserved.

ACHIEVE BUSINESS SUCCESS THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES. arizonatooling.org

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PRESIDENT’S letter 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.”

MANUFACTURING:

LEADING THE RECOVERY January, 2011 As another year begins I would like to take a moment to reflect on where our Arizona chapter stands. e last few years have been challenging for us as they have been for most organizations. As always there are both favorable and unfavorable forces at work. ere are some very positive economic signs that signal recovery for our member businesses, in fact most indicators other than housing prices are encouraging. Many shops are getting busy and our problems are quickly shifting from finding enough work to finding enough workers, and working capital. Still a huge challenge but a better problem to have. Even lower housing prices are a blessing in disguise as the lower cost of living afforded by plentiful real estate returns our state to pre-bubble competitiveness. Banks are truly looking to lend, and at least for now the Arizona Job Training fund is funded. Some favorable key national legislation has been moved forward by the NTMA and the current administration in Washington is gradually shifting away from its business-unfriendly posture. It gives me great satisfaction to see the repeated headlines documenting that manufacturing is leading the recovery, especially to see reports of re-shoring from the likes of GE and others.

Locally, our manufacturing sector seems to lag the rest of the county somewhat and we face the ongoing threat of Honeywell’s drive to move production outside of the US. For those that used the recession as an impetus to develop new customers and offerings, this year should be a good one regardless. I urge busy members to use Members First to keep overload work within the ATMA and NTMA family, and I urge the others to advertize your specialties in the new Southwestern region digital Precision News and to attend dinner meetings to network…the tried and true method for generating business.

Our chapter has been very active in 2010 with successes in our political connections, expansion of our magazine, a national victory for State champion National Robotics League team and our designation as a Star Chapter. We have decided for 2011 to have a Back-To-Basics focus, to make sure we are providing what our members need. We will concentrate on great content and raising our membership level to prerecession levels. At our January meeting we conducted a live survey during dinner and got some great new ideas. Our funding for ATMA activities has become a challenge, as major revenue sources such as our SCF partnership have undergone permanent structural changes that greatly affect our income. We are cutting costs in many areas, just as our businesses have, and are looking for new ways to generate revenue.

Our next live survey will be on this topic so get your thinking caps on.

We have two new major activities for 2011. e first is to launch our Apprentice Program in Arizona, in order to provide a structured, costeffective and marketable career path to the best students and young workers. Workforce development remains a critical task to ensure our long term competitiveness and a formal, state-supported program will provide quality workers to our business so that we can Compete With Talent, not compete for talent. e second is to begin our re-shoring campaign using the support of Harry Moser and his organization.

I believe 2011 will be a great year, but not an easy one. I urge all members to participate fully, as you only get out of this organization what you put into it. Specifically, I strongly recommend you attend the NTMA Convention being held March 3-6 right here in Chandler AZ. Every year the Board urges people to attend and reap the benefits of the conferences, this time there is no excuse not to attend. ere will be close to 1000 attendees as the NTMA, PMA, AMTA and ATMDA converge for a manufacturing extravaganza. With per diem registration rates this is the most cost-effective way to attend a conference you will ever have.

See you at the NTMA conference in March!

MARK WEATHERS PRESIDENT, ARIZONA TOOLING AND MACHINING ASSOCIATION

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NEWS roundup

OUR MISSION: “HELP MEMBERS OF THE U.S. PRECISION CUSTOM MANUFACTURING INDUSTRY ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS, AND SERVICES. ” OUR VISION: BECOME THE PREMIER CENTER OF KNOWLEDGE TO LEAD THE U.S. PRECISION CUSTOM MANUFACTURING INDUSTRY IN CONTINUING WORLD LEADERSHIP.

NTMA NEWS

ONE VOICE

UPDATE ON ACCESS TO CREDIT SOLUTIONS IN THE SMALL BUSINESS JOBS ACT

Eligible Small Businesses: Loans up to $10 million to companies with less than $50m annual revenue.

The Association worked on behalf of its members to pass a law supporting small businesses access timely and sufficient credit.

Association members testified on Capitol Hill, met with senior Administration officials and others to secure passage of the Small Business Jobs Act that the President signed on Sept. 27, 2010. Small manufacturers in some states are starting to see this hard work pay off.

Eligible Banks: Community banks and community development loan funds are eligible to apply allowing them access to Tier 1 capital at rates as low as 1%; the program carries no compensation restrictions and does not require the issuance of any warrants. Banks with total assets of $1 billion or less as of Dec. 31, 2009, it may apply for funding that equals up to 5% of its risk-weighted assets. Institutions with more than $1 billion in assets, but less than $10 billion may apply for funding equal up to 3% of its risk-weighted assets. More about the Small Business Lending Fund including applications for community banks due March 31st, visit www.treasury.gov/SBLF. For general inquiries and questions, call the Small Business Lending Fund information line at 888-832-1147 (Monday-Friday, 9:00 AM-7:00 PM ET).

As Leonard MacEachern, CEO of United Metal Products, recently told the Detroit Free Press, “We were financially sound, but no banks were willing to listen to us. The banks had redlined Detroit, southeast Michigan and the state.” After passage of the law, United Metal Products received a $2 million loan under one of the programs allowing them to purchase a military contractor, retain 35 jobs, and diversify their business while adding six new employees. Below is more information on some of the programs supported by the Association in the Small Business Jobs Act, their status, and what to expect in the coming months.

Small Business Lending Fund Update and Guide Background: After working closely with small manufacturing groups and other small business interests, Congress authorized the Small Business Lending Fund as part of the Small Business Jobs Act of 2010, with the objective of increasing the availability of credit to small businesses.

The program allows for commercial and industrial loans by community banks of up to $10 million to companies with less than $50 million in annual revenue. The Department of Treasury is currently accepting applications and a two page small business lending plan from community banks through March 31, 2011.

Timeline: The Department of Treasury is currently accepting applications from community banks through March 31, 2011. Sources indicate the Department will begin announcing the list of banks enrolled in the program possibly in late February or early March and will not wait for the March 31st deadline. Treasury will make the full list of community banks participating in the program public to allow small businesses to identify lending opportunities in their areas.

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State Small Business Credit Initiative Background: The SSBCI allows states to build upon existing, successful state-level small business lending programs, including examples such as collateral support programs, Capital Access Programs (already up and running in over 20 states), and loan guarantee programs. If a state does not have an existing small business lending program, officials can establish one in order to access this funding. States must provide plans for utilizing their funding allocations to Treasury for review and approval.

Timeline: Some states such as Michigan already have very active programs to assist small manufacturers. Final application deadline for states to establish new programs is June 27, 2011.

State Participation: A full listing of allocations available to states under the State Small Business Credit Initiative is below. Some states already had qualifying programs in place, while others are at various stages in the process putting in place a program to meet their small business lending needs.

More information on the State Small Business Credit Initiative, visit, http://www.treasury.gov/resource-center/sbprograms/ Pages/ssbci.aspx n

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BENEFITS OF JOINING THE NTMA EDUCATION Our Education Team is devoted to increasing the availability and skill level of human resources for the US precision custom manufacturing industry. With membership you will have access to a number of resources designed to inform and educate.

BUSINESS DEVELOPMENT NTMA offers members a wide variety of tools to help build and effectively manage their businesses.

• • • • •

Legal Advice & Assistance Operational Cost & Executive Compensation Reports Wage and Fringe Reports Networking Events Software Evaluation

DISCOUNT PROGRAMS The NTMA uses group buying power to help save members money in many different areas of their business. The programs offered have proven cost savings benefits for members who have taken advantage of them. See what they can do for your organization.

ONLINE RESOURCES NTMA has developed a wide range of online programs to assist members with various business-related issues.

• • • • • • •

Business Management Advisories Chapter Management HR | Enviro | Safety Resource Centers Job Board Marketplace Publications Software Evaluation Center

NTMA INSURANCE The NTMA has created a comprehensive insurance program for US precision metalworkers that provides protection for their business insurance needs.

MARKET RESEARCH AND REPORTS The NTMA keeps members informed on where different market sectors are heading in order to allow members a chance to go after new business or to help make better informed business decisions.

GOVERNMENT AFFAIRS Stay Informed, Take Action, Make a Difference.

PHOENIX METAL TRADING, INC. Industrial Scrap Specialists OUR MISSION: Our mission at Phoenix Metal Trading is to provide the best service at a fair price and to continually improve our company to be a leader in our industry.

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

Copper Brass Aluminum Steel Stainless Steel

Titanium Plastic Cardboard Nickel and Cobalt Alloys

State of the Art Fleet and Plant Equipment MARK YOUR CALENDAR WITH THESE

UPCOMING NTMA EVENTS! NTMA/PMA Legislative Conference Date: April 5-6, 2011 Venue: The Westin Washington, DC City Center NTMA 2011 Fall Conference Date: October 13-16, 2011 Venue: The Broadmoor, Colorado Springs, CO

Never a charge for pickup

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

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LEGISLATIVE update

A NEW REGULATORY “REGIME” IN WASHINGTON?

by OMAR NASHASHIBI For years, manufacturing groups such as the National Tooling and Machining Association argued to federal regulators in Washington that many of their rules covering the industry are outdated, duplicative, ineffective, and costly to employers. It seems the cries of manufacturers have reached the mountaintop.

On January 18, 2011, President Obama issued an Executive Order mandating all federal agencies change the way they regulate American businesses and begin reviewing within 120 days which regulations they should repeal.

Among the President’s directives to agency bureaucrats around the country, include: • An agency should only propose or adopt a regulation if its benefits justify its costs; • Agencies must change their enforcement approach to achieving policy objectives, rather than specifying what actions a company must adopt to reach the goal; and • Agencies must identify and assess available alternatives to direct regulation, including providing economic incentives to encourage the desired behavior.

The President also directed the Administration to cooperate and coordinate efforts more closely with the business community. Previous practice for many agencies included issuing “interim final rules” which are new regulations that essentially go into effect immediately – even before the public has a full chance to view and comment on the agency’s proposed action. To increase government transparency, the new Executive Order directs agencies to allow businesses and the general public at least sixty days to review a new regulation before it goes into effect.

Is there really a new regulatory regime in Washington? Does this Executive Order reflect a new chapter in the Obama-business community relationship? Is the President serious about reforming regulations and will bureaucrats heed his call? As usual in politics, actions speak louder than words. But the President’s words in the Executive Order are clear - before issuing a notice of proposed rulemaking, each agency shall seek the views of those who are likely to be affected – this means small businesses and groups like NTMA. We may have already begun to see our efforts and the President’s new course making a difference. The day after the President’s directive to

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CONTINUING IN OUR EFFORTS to bring you the highest level of current information regarding all things “legislative,” we present to you the remarks of Omar Nashashibi The Franklin Partnership, LLP

federal agencies, on January 19, 2011, the Occupational Safety and Health Administration (OSHA) withdrew a proposed change in the interpretation of its noise standard that would have imposed significant costs on U.S. manufacturers.

Under the proposal, OSHA would require employers to use administrative or engineering controls to reduce noise exposures that are above acceptable levels when such controls are “feasible.” OSHA had proposed to “clarify” that feasible means “capable of being done,” which would have hit NTMA members and other small manufacturers the hardest. However, the President’s Executive Order spoke directly to this proposed rule – the Agency was trying to force manufacturers to take specific actions just because they were “feasible” rather than working with employers to achieve the ultimate goal of a safe work environment.

In another sign agency bureaucrats are immediately reacting to the President’s proposal, OSHA also withdrew a proposed rule that would reignite ergonomics regulation and require employers to make medical determinations regarding the nature of potential work-related symptoms.

Regardless of whether these changes are here to stay, the calls for caution from manufacturers have reached the top echelons of government – the President. The decision in January by the White House to order a review of overlapping, ineffective, and costly regulations is a significant step in the right direction. Manufacturers can only hope this represents a “regime” change in the way regulators view their relationship with the nation’s largest employers – small businesses. n

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.

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EDUCATION update

TRAINING TOP TALENT DO WE HAVE THE APTITUDE AND SKILLS NEEDED FOR OUR FUTURE? from the NTMA All of U.S. manufacturing has a problem! It deals with how the industry is recognized. The media does story after story about U.S. manufacturing being dead. Young people are told, “don’t go in to manufacturing, your job won’t last.” We see the empty plants sitting by the sides of the road as more big name manufacturing companies close their doors. Still, according to the latest figures, the U.S.A still is the top manufacturing country in the world. We account for over 20% of the world’s GNP. How will the U.S.A. remain on top if we don’t fill the pipeline with young, top trained talent that has the aptitude and skills needed for our future? The people that do these jobs build parts for planes, cars, the Depart of Defense, agriculture, medicine, transportation and all other consumer-related products.

There is nothing used by every American today that is not touched by this industry in some shape.

The NTMA’s National Robotics League (NRL) is on a fast track to be the premier organization to drive students to our industry by creating an interactive, fun, and challenging program that interlaces student education with real manufacturing experience. This program has the flexibility and the support to educate and inspire Parents, Students, and Educators to the opportunity that exists within the world of precision manufacturing. The NRL is getting young people to learn more about the skills and training needed to be productive, supportive citizens that can earn a very good living and support their families, communities and country.

By aligning manufacturing companies and schools with the program, the NRL plays an instrumental role in changing the negative perceptions that manufacturing has been made to endure for years and provides opportunities for students to advance their skills and talents with an ends to a career in manufacturing. Young people are “teamed” with mentoring U.S. manufacturing companies and learning centers (trade schools, community colleges, technical centers, high schools and others) to form a tight bond that teaches the young people to design and build their own robots. They learn team building, problem-solving and other key skills needed for the market today and in to the future.

Teams have been forming all over the country with some of the earliest cities now having over 50 teams each. The first NRL national contest drew an estimated 5000 spectators just to watch the exciting action.

This isn’t just a program for boys or young kids. A recent regional contest was won by a group of high school girls. The first national winner is working in a bright, clean medical supply manufacturing company in Minnesota. The majority of U.S. manufacturing companies today are owned by men and women that started out working for others, learned a craft and thought they could do a better job for themselves. This puts young people on a path to real earning potential.

The nice part about NRL is that it doesn’t matter if the kids become a machinist, tool and die maker or other Precision Custom Manufacturing employee. People from the program have gone on to

engineering school, drafting school or other skilled technical careers.

Some earned scholarships because they showed their potential in the program. It opens doors to an exciting potential career.

A goal of NRL is to teach young people, their families and friends that manufacturing isn’t dead in the U.S., it is just evolving. The skills sets are changing. Those companies that are competing on a global basis must do things differently than they did 10 years ago. The world is at our door knocking it down and we had better be prepared to answer it with the best trained, most highly skilled employees to build parts better, faster and more competitively. If we can do that, then the U.S. Precision Custom Manufacturing Industry will remain at the top of the food chain. Our national security, economy and our futures depend on it!

A demonstration of this program and more information regarding on how to become involved will be made available during the NTMA Annual Convention in Chandler Arizona on March 4. Please contact [Local Chapter Contact] for information on this event or for an opportunity to stop by and witness this in action.

The 2011 National Robotics Competition will be held in Indianapolis, Indiana May 20-22 and will be in cooperation with the Indiana Chapter of the NTMA and IVY Tech Community College. Here we expect over 100 teams to battle it out for their spot as National Champions: what a great opportunity to scout for your next generation of skilled workers. n

The National Robotics League is a trademarked program of the National Tooling & Machining Association; a 501(c)6 organization whose goal is to help precision manufacturing companies achieve business success.

INFOLINK: For more information on the National Robotics League visit www.GoNRL.org

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FEATURE story

There’s never been a better time for area companies to grow their bottom line by making new sales abroad, says Anna Flaaten of the U.S. Commercial Service in Scottsdale, Arizona. Flaaten says businesses should know there’s help right around the corner. In this article, she discusses opportunities for local businesses to sell internationally.

Make Locally, ink Globally

by ANNA FLAATEN

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Consider exporting or expanding your international sales, if you aren’t already.

In today's global economy, businesses can’t afford to miss out on international opportunities. ink about it: about 70 percent of the world's purchasing power is outside of the U.S. If you're not exporting, it’s highly likely that your competitors are or will be selling internationally. For many of our clients, free trade agreements, ease of transportation, and the Internet have really helped to simplify the export process.

One of the most important things about exporting is that it enables firms to diversify their portfolios and help weather changes in the domestic and world economies. So, by spreading the risk, it helps them boost their competitiveness and bottom line.

Contrary to what many people think, it’s not just the big companies that export. By far, the vast majority of exporters are small and medium-sized businesses (with fewer than 500 employees), yet we know that only a very small share of businesses export. For example, 58 percent of all exporters only sell to one foreign market, so many of these firms could boost exports by expanding the number of countries they sell to.

Ensuring Success e most important keys to export success are that companies must have a long-term perspective and top management commitment. Exporting can be rewarding, but challenging, and companies need to be in it for the "long haul." A track record of successful selling in our domestic market is very helpful.

Companies should also assess their internal resources for doing business abroad.

Avoiding the Pitfalls To take advantage of the opportunities that exporting presents it is imperative that you do your homework first. It happens all too often—smaller companies will assign the international sales or shipping to one or two people, yet the sale impacts the entire company. For example, the accounting department may not understand how the company could be more competitive if they only gained an understanding of finance options for export sales. Additionally, sales

people can be limited on what they offer a foreign buyer because they may not understand international terms of sale, or Incoterms, or what the seller and buyer responsibilities really are once they've agreed to a sale.

Other areas that cause confusion or expose the company to risk may include not knowing the buyer, agreeing to an exclusive distributorship for an entire region, or not knowing enough about U.S. export laws. e Commercial Service works frequently with companies on these issues. Many times, it’s a simple matter of internal and external communication and a learning process for the entire company.

Opportunities for Manufacturers Currently, there are excellent export opportunities for those in the manufacturing sector. U.S. manufactured goods are in high demand and have an excellent reputation around the world, and our firms are particularly strong in after-the-sale service. rough the first 11 months of 2010, U.S. exports of goods and services grew by 17 percent, reaching $1.7 trillion. Manufactured exports were $932 billion, or 80 percent of total goods exports.

Top markets for U.S. exports in 2010 were Canada, Mexico, China, Japan, United Kingdom, Germany, and the Netherlands.

Support and advice Whether you’re a new-to-export company or looking to boost your existing international sales the U.S. Commercial Service can help.

With our network of 109 U.S. Export Assistance Centers across the U.S. and locations in American embassies and consulates in nearly 80 countries, the U.S. Commercial Service utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. n

Anna Flaaten is a trade specialist with the

NATIONAL EXPORT INITIATIVE WORKING WITH THE WORLD COMMUNITY TO PROMOTE STRONG BALANCED GROWTH WORLDWIDE THAT WILL BENEFIT EVERYBODY.

In January 2010, President Obama announced the National Export Initiative (NEI). e NEI is an unprecedented, comprehensive strategy aimed at doubling U.S. exports by 2014, while supporting millions of new jobs. e NEI is the first time the United States has a governmentwide export-promotion strategy with focused attention from the President and his Cabinet. e NEI leverages the resources of all U.S. Government departments and agencies that support trade to better assist American businesses that want to sell their goods and services abroad. e NEI focuses on five key areas: improving trade advocacy and export promotion efforts; increasing access to credit, especially for small and midsize businesses; removing barriers to the sale of U.S. goods and services abroad; enforcing trade rules; and pursuing policies at the global level to promote strong, sustainable, and balanced growth.

INFOLINK: www.trade.gov

Commercial Service in Scottsdale, Arizona. She can be reached at Anna.Flaaten@trade.gov

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FEATURE story

Making the Most of Your Biggest Investment

by BRENT TERHAAR and DAVID HOPKINS

Last year, we worked with a $6 million manufacturing company that was able to drive another $500,000 of profitability in their business using a few relatively simple techniques. While simple, those techniques required the involvement and leadership of the employees. e owner smiled as we discussed the outcome and said “$500,000 is a lot of money.” Agreed, but think about the $2,000,000 of business value he had just created.

As entrepreneurs and business owners, we focus heavily on day to day profitability and business metrics. Make no mistake – those are critical to any business. But how often do you step back to understand what value you have in your business, and more importantly, how do you increase and protect that value?

You never buy a publicly traded stock, corporate bond, or other investment without first understanding 1) how that business will increase in value, 2) how you will redeem / cash out that investment, and 3) how risky is this investment. Should it be any different for your closely held business?

You may be thinking, “I have an estate plan, and I know my company will either go to my family if I die, or I will sell it before that happens.” at’s great – you’ve addressed some of the mechanics of how that

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transfer could happen and both are viable options. e better question to ask is, “will there be any value to transfer?”

One common blind spot of many entrepreneurs we work with is that they don’t realize how unique their talents really are and the challenges associated in transferring those talents to others in their organization. e irony of it is, strong business performance doesn’t necessarily translate into increased business value. Why? Simply said, it is the difference between Individual vs. Enterprise value. Individual value leaves the business when that individual (the entrepreneur) leaves.

Enterprise value is something an outside buyer will gladly pay for because it will continue when the entrepreneur walks out the door.

Academics, authors, and others have filled libraries with the philosophy and techniques of building enterprise value. Although the execution of building enterprise value can be difficult, the core concept of building it is really pretty simple. e first step is the ability to look at your business differently than you do today, not through the eyes of an entrepreneur, but through the eyes of those outside of your business.

A picture is worth a thousand words, so here is a picture to illustrate the concept that we call “e Value Triangle”.

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:46 PM Page 11

Financial Performance

Markets & Customers

Leadership/Infrastructure

e key to the Value Triangle is balance. e goal is to maximize the area of the triangle. Experience shows that companies with a healthy balance in each point of the value triangle create the most long-term value for their organizations. Here are a few examples of how the value triangle could be viewed by someone outside of your business:

Strong financial performance, but the business relies heavily on an owner who is the primary contact with two major customers. They run efficiently, but if the owner is gone, so is the business.

Profitability suffered during the last couple of years, but there is good functional leadership (e.g., engineering, shop floor, sales). The Company’s revenue is concentrated in one industry (e.g., aerospace).

Good operating flexibility and management helped this business achieve very good financial results in any economy. They serve multiple industries.Their engineering capabilities are a key part of their customer’s development process.

GREA AT INNOV INN ATIONS BEGIN WITH SIMPLE IDEAS. We help our manufacturing clients innovate, change, and grow.

Contact David H Hopkins opk opkins at 800-525-2826 or dhopkins@larsonallen.com.

What can business owners do now to influence the value of their company? First and foremost, be willing to step back and look at your business in a different light. Seeking counsel from external resources (like your fellow ATMA/NTMA members, industry advisors and your CPA advisor) helps provide the perspective to do this.

It is never too soon or too late to begin building each of the points of the value triangle. Additionally, it is important to engage others in your own organization to accomplish this. at way, when the work is done, you can reap the financial rewards, and your people will have an opportunity in a company that lasts beyond your involvement. n

Improving profitability | Accelerating growth Reducing risk | Planning for succession

Noticeably ly Dif Different. fffe erent.

Brent Terhaar and David Hopkins are Principals in the Manufacturing and Distribution group of LarsonAllen. They can be reached at 800.525.2826. arizonatooling.org / 11

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:47 PM Page 12

FEATURE story

ULTRA-HIGH PERFORMANCE TOOLPATH (UHPT) TECHNOLOGY CAN TRANSFORM U.S. MANUFACTURING

MAXIMIZING MACHINE EFFICIENCIES

by ALESA LIGHTBOURNE, Ph.D

Since the dawn of machining, the manufacturing industry has looked for ways to squeeze greater efficiencies out of existing equipment, materials and labor.

Computer-aided manufacturing (CAM) and computer numerical controlled (CNC) machining were huge steps in the right direction several decades ago. But in recent years, we have seen only small, incremental improvements in machining productivity. This is because research focused primarily on computerization to streamline toolpath generation, and on expensive toolpath “optimizer” software, slowing feedrates at corners to reduce stress on tools. Nearly all innovations assumed a parallel-offset toolpath used for roughing out parts – not realizing that this was the real bottleneck.

12 /

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:49 PM Page 13

A standard toolpath (left) makes parallel cuts through material, requiring numerous stops and starts. UHPT technology (right) designs toolpath cuts in continuous motion, doubling machine efficiency.

make shallower cuts. e unfortunate result is longer cycle times, higher tool costs and lost productivity.

A breakthrough technology changes all this.

Ultra-high performance toolpath (UHPT) software improves the way that tools cut their way through material, using high-speed continuous tangent motion rather than sharp, interrupted movements. Field applications prove that UHPT tecnnology can safely double machine output, extend tool life, and create a much more productive competitive manufacturing enterprise in the global marketplace.

Avoiding the Corners and Stop Signs Imagine driving through a neighborhood without arterial streets. At each corner, you must slow down or stop at a stop sign, make a turn, and proceed for another block, always encountering changing traffic conditions. Or think of a rural road that skirts the perimeters of various farmers’ fields, filled with tractors and trucks. Slow down, pass stop, turn, go, sharp turn, go. Slow down. It’s maddeningly inefficient. at’s how basic toolpaths drive today’s CNC machines. Modeled on manual methodology, existing toolpaths are derived from the geometry being machined. ey start with the material boundary and keep stepping in, following the shape of the material, regardless of efficiencies, until the path collapses on itself. In other words, the tools follow a path regardless of the amount of material they encounter. ey slow down, sometimes stop, change direction, and cut again, sometimes encountering excessive material, other times little material. is is very hard on both machines and tools.

Now return to the neighborhood, and imagine it redesigned on a circuitous route, with

carefully banked roundabouts and smooth curves instead of corners and stop signs. e amount of traffic is steady; it almost never slows down and never comes to a halt. You drive at a high average speed until you reach your destination. Yes, you might travel a bit further in distance. But the time you save, the fuel efficiency, and the reduced wear and tear on your car make the circuitous design well worthwhile. is is the underlying concept behind UHPT technology.

How it Works UHPT technology works on any shape, open or closed, with any number of features, and integrates with any CAM system. It plans the toolpath based on abilities designed into the machine and cutting tools. By taking advantage of the capabilities of modern machining hardware and avoiding sharp directional changes, it generates toolpaths that assure the machines and cutting tools are used at peak efficiency given existing conditions.

Currently a 2.5-axis product, UHPT software is ideal for prismatic parts. It easily cuts pockets, steps, slots, channels and other shapes, and can handle an unlimited number of material and part boundaries and islands. It can be used with any cutting style and material, including the hardest metals.

Traditional toolpath technology forces machinists to accommodate worstcase machining conditions to prevent damaging the spindle and wearing out the cutting tool.

Abrupt changes in the amount of material being encountered put excessive force on the part and machine. So programmers and machinists select slower feeds and speeds, or

UHPT technology, on the other hand, allows programmers to use the most appropriate cutting styles and optimum feeds and speeds. is is possible because UHPT software designs toolpaths with no abrupt changes indirection or to the volume of material encountered; the load on the cutting tools and spindle never exceeds user-programmed limits. Consequently, machines run smoothly and tools run cooler, even at much higher speeds and feeds, extending tool and machine life.

Optimized Cutting Capabilities Another major difference over existing technologies lies in flexibility. UHPT software actually compares the speed between slotting or side milling an area under given conditions and selects the fastest or most efficient approach. In general, UHPT technology minimizes the amount of slot milling because of the excessive amount of material encountered. But when slot milling is the optimum solution, UHPT technology reduces the axial depth of the cut and slows down the feedrate, reducing the amount of material encountered and maintaining a consistent load on the tool and spindle. If desired, the programmer can specify only side milling, andeliminate any slot milling to avoid burying the tool. is is especially useful in very hard metals. e “Sweet Zone” For every unique combination of machine, cutting tool and material, a “sweet zone” exists, where an ideal combination of feedrate, spindle speed, cut depth and cut width maximizes material removal while obtaining acceptable tool life. Just as cars get better mileage on the freeway compared with stopand-go traffic, so do CNC machines and cutting tools function better, last longer and require less maintenance when they run in their sweet zone. Typical toolpaths frequently continued on page 24 arizonatooling.org / 13

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:50 PM Page 14

MEETING THE GROWING CHANGES OF INDUSTRY

ATMA PRECISION 2011 ATMA Board of Directors President Mark Weathers Excaliber Precision Machining Vice President Dante Fierros Nichols Precision

Accuwright Industries, Inc. is a full service Metal Spray facility utilizing State of Art Robotics and Controls for precision Flame Spray applications. Featuring Plasma Flame Spray, Twin Wire Arc Spray, Combustion Powder/ Wire Spray, and HVOF (High Velocity Oxygen Fuel) Spray.

With Quality programs and certifications such as ISO 9001-2008 and FAA Repair Certificates we can meet the growing changes of your industry. Recently combined with our Metallizing capabilities, we now have the Cold Gas-Dynamic Spray (Low Pressure Cold Spray) available for specialized services.

Refurbish worn or damaged shafts/spindles?

• Don’t throw away those worn shafts/spindles • Think green and repair • Surface restoration for worn or damaged shafts/spindles • Similar and Hard surfacing repair for longer life Over/under sized machined parts?

• Don’t weld • Don’t throw away • Let us rebuild material on incorrectly machined parts • Coatings to match part material • Coatings to provide harder materials • Increase longevity Can’t quote that new job? Never heard of Flame spray?

• It is called Metallizing, Thermal Spray, Plasma Spray, HVOF Spray, Arc Spray, Combustion Spray, Cold Spray • We can do it • Material engineering • Quick turn around times Benefits?

• Fast turn time • Engineering services • Friendly Service • Knowledgeable Staff • Pick-up/Delivery Valley wide • Consulting/Specification selection • In-house testing procedures

Executive Director Chris Mignella Treasurer Joe Sirochman JPS Manufacturing Secretary David Lair Dynamic Machine & Fabricating Trustee John Lewis Lewis Aerospace Board Members Maxine Jones Aimco Precision Bob Marusiak Micro-Tronics, Inc. John Raycraft Arizona Precision Industrial Greg Chambers PPG-Jet Division Jeremy Lutringer Unique Machine & Tool Gary Watkins MarZee Associate Member Liaison Mickey Gartman Gartman Technical Services Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.242.8826 Fax: 480.970.8501 arizonatooling@cox.net

TM

MAGAZINE

Accurate Thermal Spray Technologies Accuwright Industries, Inc. Contact: David Wright 480.892.9595 (toll free 877.247.9108) www.accuwright.com 14 /

“The Right Tools. The Right Team. The Right Time.” arizonatooling.org

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:52 PM Page 15

ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS Regular Members Joe Tripi Robert Marusiak Mark Lashinske John Anglin Dante Fierros Tom Osborn Steve Macias Loyal Clausen James Buchanan Maxine Jones Greg Chambers Patrick Stewart, II Ilene Price

Micropulse West Micro-Tronics, Inc. Modern Industries, Inc. Nelson Engineering Nichols Precision Osborn Products, Inc. Pivot Manufacturing Plastic Engineering, Inc. Powill Manufacturing & Eng, Inc. PPG - 'Aimco Facility PPG -'Jet Facility' PPG- Stewart Facility Precise Metal Products Co.

602-438-9770 602-437-8995 602-267-7248 602-273-7114 480-804-0593 623-587-0335 602-306-2923 480-491-8100 623-780-4100 602-254-2187 623-869-6749 623-582-2261 602-272-2625

Tony Costabile Shaun Schilling Michael Dailey Tyler Crouse John Bloom Susan Scarla Paul Shelton Mark Willmering Jeff Gaffney Steven Yeary Mike Gudin Ruben Cadena Dennis Miller Scott Higginbotham Craig Berland Todd Aaronson Bill Brooks Jacque Cowin Jeremy Lutringer Bill Ankrom Robert L.Wagner Rick Erickson Geno Forman Bruce Treichler

Precision Die & Stamping, Inc. Premier Tool Grinding Prescott Aerospace, Inc. Pro Precision R & D Specialty/Manco Rae Tech, Inc. Shelton Industries Sonic Aerospace, Inc. Southwest Swiss Precision Southwest Turbine, Inc. Southwest Water Jet State Industrial Products, Inc. Summit Precision, Inc. Sun Grinding LLC Systems 3, Inc. T.A. Custom Designs, Inc. Time Machine & Stamping Tram-Tek, Inc. Unique Machine & Tool Co. Vitron Manufacturing, Inc. Wagner Engineering, Inc. Wire-Tech X-5 Manufacturing, LLC Zircon Precision Products

480-967-2038 602-442-0698 928-772-7605 602-353-0022 602-278-7700 602-272-4223 520-408-8026 480-777-1789 602-438-4670 602-278-7442 480-306-7748 602-275-0990 602-268-3550 602-238-9595 480-894-2581 623-221-4922 602-437-2394 602-305-8100 602-470-1911 602-548-9661 480-926-1761 480-966-1591 602-454-7385 480-967-8688

ATMA

Association & Machining the Arizona Tooling RIL 2010 Issue MARCH/AP Publication of The Premier TM

ION PRECIS

GET IT RIGHT. Precision Magazine’s readers

BULLETPROOF

Cause for Hope

INESS YOUR BUS Strategies to

7 Help Keep Your nion Company Non-U

Partnerships Building Diverse You Should Know Helpful Websites Making the Cut

480-329-8254 480-892-4595 602-861-1145 602-276-2439 480-785-7474 623-580-0800 602-269-5131 520-397-0436 928-636-2115 602-305-8080 602-248-7880 928-634-7568 480-892-7304 602-353-8088 623-492-9400 480-753-4290 602-437-4005 602-233-1335 480.968.1778 602-278-4725 623-587-9400 602-253-1080 602-275-4406 602-437-0339 480-820-0380 623-581-6200 623-878-6800 480-967-0080 480-967-9339 480-926-8642 602-275-2122 520-889-8325 520-745-8771 602-278-9553 602-870-5600 480-367-9540 480-967-4600 602-437-3085 602-232-5882 480-829-9047 480-348-5942 602-272-2654 623-581-0764 602-265-7575 480-777-8222 602-269-5801 602-484-4520 480-899-0939 480-967-4889

Events Upcoming ATMA

3D Machine & Tools Accuwright Aerostar / Aerospace Mfg. Allied Tool & Die Company, LLC Arizona Precision Industrial, LLC Axian Technology, Inc. Az Industries for the Blind B&B Tool, Inc Bar S-Machinery, Inc Barnes Aerospace - Apex Mfg. Div. Bartino Tooling & Machine, LLC Bent River Machine, Inc. BID Machine Blue Streak Grinding, Inc. C.G. Tech, Inc. CAD Tools Company, LLC Cassavant Machining Chips, Inc. Cling's Manufacturing Continental Precision, Inc. Creative Precision West Deck Machine & Tool, Inc. D-Velco Mfg. Of Arizona Dynamic Machine & Fabricating Eckert Enterprises, Ltd. Evans Precision Machining, Inc. Excaliber Precision Machining Foresight Technologies Hamilton Industries Hawkeye Precision, Inc. Helm Precision, Ltd. Hi-Tech Machning & Engineering Industrial Tool Die & Engineering Inline, Inc. Joined Alloys JPS Manufacturing JWB Manufacturing Kimberly Gear & Spline, Inc. K-zell Metals, Iinc.

L2 Manufacturing LAI International, Inc Layke, Inc. Lewis Aerospace Lynch Brothers Mfg.Co. Majer Precision MarZee, Inc. Mastercraft Mold, Inc. Metal Spinning Solutions, Inc. Metalcraft

of Directors ATMA Board EDGE: 2010 ON THE LEADING

Hein Tran Dave Wright Brandon McDermott Chuck Eriksen John Raycraft Charles A. Van Horssen John Cain Kevin Burbas Tim Smith Jeff Buntin Tony Miglio Norela Harrington Pat DeLanie Mike Sniegowski Keith Adams Greg Gaudet Joe Cassavant, Jr. Steve Schwartzkopf Kim Rice Ron Gilmore Allen Kiesel Daniel Krings John Maris David Lair Frank Eckert Grant Evans Mark Weathers Jeff Hull Alex Curtis Joe Koenig Tim Malin Jeremy Schaulk Don eriault Sam Ehret Jim Bowen Joseph Sirochman Jeff Barth Jim Carpenter Don Kammerzell Lee & Colleen Adams Matt Kalina Ernest Apodaca John Lewis Wayne Craig Michael C. Majercak, Jr. Edward Wenz Arle Rawlings Paul Clark Jeff Meade

S 7: CHANGING READYWINTODOW INSTALL GEARS REFORMS Will STRATEGIC Manufacturers Make Arizona ?

More Competitive RIGHT TOOLS. THE g.org THE RIGHT arizonatoolin

Expect What You Can de from an Upgra

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• Tax Tips Education Update News and National Latest Local • Tax Reform Red Flags Rule

are key decision makers that you as advertisers and sponsors, want to target. ey want an edge in a constantly evolving industry, and they find it in Precision Magazine. arizonatooling.org

arizonatooling.org / 15

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:54 PM Page 16

ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS Associate Members Linda Daly Richard Short Dave Biggar Greg Whelan John Anderson Isaac Bunney Howie Basuk Stan Watkins Steve Blok Kerry Vance Cindy Stewart Lou Gallo Randy Flores Steve Warner Mickey Gartman Sherry SentGeorge Jackie Bergman David Cohen Tim Kloenne Barry Armstrong Doug Berg Bob Von Fleckinger Jeff Trimble David Gundersen Michael Biesk Ray Limon omas Moore Glen Zachman Pete Hushek Steve Montgomery Arlene Helt Ron Swartzbaugh Jane Rousculp Frank Encinas Russ Kurzawski Lisa Barnes John Drain Greg Burke Joseph Velez Daniel Franks

A 2 Z Metalworker Adams Machinery Arizona Bank & Trust Arizona CNC Equipment ATS Industrial Bank of America Barry Metals Canyon State Oil Co. ChemResearch Co., Inc. Consolidated Resources Creative Promotions D D i - Solidworks D&R Machinery EMJ Metals Gartman Technical Services, Inc. Gold Canyon Bank HUB International Industrial Metal Supply Klontech Industrial Sales L.A. Specialties LarsonAllen, LLP Leavitt Group Magnum Precision Machines Makino, Inc. Marshall Tool & Supply Metco Metal Finishing Moore Tool & Equipment North-South Machinery Phoenix Heat Treating Phoenix Metal Trading Ryerson-Phoenix S&S Machinery Samuel Aerospace Metals Semiray Star Metal Fluids LLC TDS/HDS Marketing Tornquist Machinery Co. TW Metals Law Office of Velez Wells Fargo Bank

602-412-7696 480-968-3711 602-381-2079 480-615-6353 602-276-7707 602-523-2044 602-484-7186 602-271-9888 602-253-4175 623-931-5009 480-839-9511 602-241-0900 480-775-6462 602-272-0461 602-788-8121 623-594-7351 602-749-4190 602-454-1500 480-948-1871 602-269-7612 480-615-2300 602-264-0566 602-431-8300 602-228-0347 602-269-6295 602-276-4120 602-455-8904 602-466-2556 602-258-7751 602-257-4660 602-455-3386 602-714-0116 602-721-0176 602-275-1917 602-256-2092 602-635-6404 602-470-0334 602-864-0014 480-710-5079 602-522-7805

OUR VISION: ARIZONA’S PREFERRED PROFESSIONAL ASSOCIATION, DEDICATED TO THE GROWTH, HEALTH AND PROSPERITY OF OUR TOOLING & MACHINING MEMBERS.

GET CONNECTED TO THE ATMA! For more information contact: CHRIS MIGNELLA, ExecutiveDirector@arizonatooling.org

16 /

WELCOME NEW REGULAR MEMBERS Nelson Engineering John Anglin janglin@nelsonengineering.com 4020 E. Air Lane Phoenix, AZ 85034 www.nelsonengineering.com

Precise Metal Products Co. Ilene Price iprice@precise-metals.com 3839 N. 39th Avenue Phoenix, AZ 85019 602.272.2625

WELCOME NEW ASSOCIATE MEMBERS RYERSON Arlene Heldt arlene.heldt@ryerson.com 210 S. 51st Ave Phoenix, AZ 85226 602.455.3386 www.ryerson.com

Velez, Attorney at Law Joseph Velez jvelezesq@me.com 7272 E. Indian School #111 Scottsdale, AZ 85251 480.710.5079 www.realestateloaw.net

Samuel Aerospace Metals Jane Rousulp jrousculp@semuel.com 6415 East Corvette St Los Angeles, CA 90040 602.721.0176

Semiray, Inc. Stephanie Villa svilla@semirayinc.com 3027 E. Washington St. Phoenix, AZ 85034 602-275-1917 www.semirayinc.com

TDS/HDS Marketing Lisa Barnes lisab@tspimports.com 1140 E. Washington St. Phoenix, AZ 85034 602.635.6404

ANNOUNCING OUR NEWEST PARTNER ADP offers pre-employment, payroll, tax & compliance, human resource, insurances, benefits administration and retirement services - to help you run your businesses more efficiently. See Brad Berg - at the display table for details and take advantage of discounts offered to ATMA members!

Contact Brad_Berg@adp.com

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 5:56 PM Page 17

WEBSITES YOU SHOULD KNOW

RIGHT. ON TIME.

Arizona Chapter Website www.arizonatooling.org Arizona Department of Commerce – Job Training Grant application www.azcommerce.com/workforce Arizona Department of Education www.azed.gov Arizona Manufacturers Council www.azchamber.com/amc Arizona MEP www.arizonamep.org Arizona State University Mechanical & Manufacturing Engineering Technology www.poly.asu.edu/technology/mmet/ City of Phoenix – Community & Economic Development Program www.phoenix.gov/ECONDEV/index.html EVIT (East Valley Institute of Technology) www.evit.com GateWay Community College www.gatewaycc.edu

Hard Alloy Precision Machining Stainless Steels • Titanium • Maraging • High Temp Milling • Turning • Cylindrical Grinding Serving the Aerospace, Defense, Medical and Alternative Energy Industries Boeing (Silver Supplier) • ATK Sargent • Lockheed Martin

AS9100 Certified by DNV Mark Weathers, Owner 8737 NORTH 77TH DRIVE • PEORIA, ARIZONA 85345 P) 623.878.6800 • F) 623.878.0633 • C) 602.363.7929 mark@excalpm.com • www.excalpm.com

Greater Phoenix Chamber of Commerce www.phoenixchamber.com Human Resources, Safety & Environmental topics of interest (Also see a link on the NTMA website, www.ntma.org) www.blr.com Maricopa Skill Center www.maricopaskillcenter.com Maricopa Community Colleges www.maricopa.edu Maricopa Workforce Connection www.maricopaworkforceconnection.com Mesa Community College www.mc.maricopa.edu Mesa High School www.mpsaz.org National Institute for Metalworking Standards www.nims-skills.org National Tooling & Machining Association www.ntma.org One Voice Advocacy www.metalworkingadvocate.org SCF Arizona www.scfaz.com U.S. Department of Labor www.dol.gov

arizonatooling.org / 17

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 6:18 PM Page 18

MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS! MARCH 3/2-6 NTMA MANUFACTURING CONFERENCE Wildhorse Pass, Chandler, AZ

ATMA PRECISION

3/10 Combined Membership, Marketing & Program Meeting 11:30 at JPS Manufacturing, 15651 N. 83rd Way, Scottsdale, 85260 3/22 Board of Directors Meeting 11:30 at Micro-Tronics, 2905 S. Potter, Tempe, 85282 APRIL 4/13 Safety Meeting (General Safety Standards) 11:30 at Phoenix Heat Treat 4/14 Combined Membership, Marketing & Program Meeting 11:30 at JPS Manufacturing, 15651 N. 83rd Way, Scottsdale, 85260

STAR CHAPTER AWARD 2010

4/19 Board of Directors Meeting 11:30 at Micro-Tronics, 2905 S. Potter, Tempe, 85282 4/20 NRL Competition - Phoenix Convention Center 4/29 GOLF - EAGLE MOUNTAIN

MANY THANKS TO OUR 2011 ATMA VALUED SPONSORS!

18 /

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 6:17 PM Page 19

We offer innovative metal finishing for the aerospace, industrial, electronic and commercial markets worldwide.

NADCAP Accreditation • Prime Approvals ChemResearch Co., Inc. is the largest multi-process metal finishing supplier in Arizona. Our processes include:

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Silk Screen/Part Marking - NEW! Dow 7 - NEW! Manganese Phosphate - NEW! INTRODUCING NEW PROCESSES FOR 2010!

Cadmium Plate, Nital Etch, Pressure Testing CALL TODAY FOR DETAILS! Frank Lopez, Estimator/Pricing Analyst 602-253-4175 • flopez@chemresearchco.com

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ATMA_0201_FINAL.e$S_Layout 1 2/18/11 6:15 PM Page 20

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We have the largest centerless grinder in the state!

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

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“THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.”

20 /

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 6:14 PM Page 21

• 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 •Contact Eager Nichols to provide you with quality at 480-804-0593 performance and quick responses www.nicholsprecision.com

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www.BenefitWines.com/atma Benefit wines support the National Robotics League and the Brock Babb Scholarship Fund. arizonatooling.org / 21

ATMA_0201_FINAL.e$S_Layout 1 2/18/11 6:13 PM Page 22

TECHNOLOGY update

SPECIAL ADVERTISING FEATURE

CONCENTRATE ON THE CONCENTRATION ©

THE OIL BARON BULLETIN

by BRETT “THE COOLANT GUY” REYNOLDS, CMFS

I have seen many coolant related problems over the years that I’ve been dealing with metalworking fluids, smell (bad odors), rust, poor tool life along with others, but they all have one thing in common, low coolant concentration. Whoever would have thought that such a simple thing as low coolant concentration could lead to so many problems? I am here to tell you that in many of these instances; this turns out to be just the case. So many coolant issues could easily be avoided by just doing a simple concentration measurement check once a week, using a refractometer. You wouldn’t believe it, but concentration plays into so many factors regarding coolant performance. Cutter life, corrosion protection (ferrous corrosion), surface finish and coolant bio-stability are all controlled by coolant concentration.

Now, if low coolant concentration can be such a problem, then high coolant concentration shouldn’t be a problem at all, right? Wrong.

BLASER SWISSLUBE

MILESTONES 1936 Foundation of the Company by Willy Blaser 1974 Peter Blaser expands with the Coolants and configuration of a distribution network in Europe and Overseas 1981 Foundation of Blaser Swisslube Inc. in Goshen, NY, the first subsidiary with own production plant 1993 Foundation of Blaser Swisslube Czech Republic 1995 Foundation of Blaser Swisslube Germany

When coolant concentration exceeds the manufacturer’s maximum recommendations, a whole host of other problems can develop. Higher foam potential, excessive drag out on chips (higher usage), staining on Aluminum due to a higher pH and unjustifiable coolant costs. The goal is to keep the concentration within the recommended range; your metalworking fluid manufacturer can provide you with this information. n

1996 Foundation of Blaser Swisslube Japan

Just remember, concentrate on the concentration, baby!

2010 Foundation of Blaser Swisslube Taiwan.

Stay tuned for more useful coolant tips, from The Coolant Guy!

1999 Foundation of Blaser Swisslube France 2001 Foundation of Blaser Swisslube Brazil, China and India 2002 Foundation of Blaser Swisslube Singapore 2006 Foundation of Blaser Swisslube Turkey and Korea

Today, the Coolants have been produced in Hasle-Rüegsau, in USA, in China and in India

Brett Reynolds, “The Coolant Guy” works for Blaser Swisslube Inc. If you would like more useful information regarding metalworking fluids, or would like to find out more information about Blaser metalworking fluid products, Please contact Brett at 801.722.4095 or via E-mail at b.reynolds@blaser.com. The Oil Baron Bulletin is not affiliated with Blaser Swisslube Inc. or its subsidiaries.

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FEATURE story continued from page 13

UHPT SOFTWARE ACTUALLY COMPARES THE SPEED BETWEEN SLOTTING OR SIDE MILLING AN AREA UNDER GIVEN CONDITIONS AND SELECTS THE FASTEST OR MOST EFFICIENT APPROACH. encounter “not-so-sweet zones,” since the amount of material exposed to the cutting tool fluctuates. NC programmers compensate for the instances where the tool load is excessive by using less aggressive cutting parameters (feedrate, spindle speed, cut depth and cut width) throughout the toolpath. While there are typically hundreds of instances where the cutting tool encounters excess amounts of material in a typical toolpath, the duration of each is brief, and together they comprise just a small percentage of the overall toolpath length. e unfortunate fallout of this is that the parameters in use are far too conservative for the majority of the toolpath; the tail is wagging the dog. erefore, machine tools and cutting tools never get to run as they are designed and engineered, namely in their sweet zones. ey are either being abused or underutilized. is results in machine tools and cutting tools being utilized to only a fraction of their capability.

Conversely, UHPT software designs toolpaths that are free of the instances of excessive tool load, regardless of the shape of the geometry, so parameter compromises are not necessary. is enables machine tools and cutting tools to operate under near ideal conditions, and to perform up to their true capabilities.

Advantages over HSM Several advances in machining technology claimed to resolve speed and output issues, but have fallen short. For instance, high-speed machining (HSM) has been touted as a solution for maximizing machine efficiency.

HSM uses shallow axial cut depths and tangential motions, which can reduce cycle times in some cases. But HSM techniques cannot be used efficiently for all kinds of parts. Also, it requires CNC machines with very high spindle speeds and feedrate capability, along with sophisticated controller capabilities such as look-ahead for hundreds or thousands of blocks of code, an unaffordable proposition for most shops. So high speed machining represents only a partial solution to the industry’s needs.

Part applicability and cost are not issues for UHPT software, which works on any part geometry and with any machine. UHP 24 /

technology therefore makes every machine a “high-speed machine.”

Mathematical Ingenuity e UHPT concept was developed by Glenn Coleman and Evan Sherbrooke, Ph.D. Coleman is a toolpath scientist and inventor of several toolpath generation methods and toolpath algorithms that significantly reduce both programming time and machining time.

Two patents have been awarded to these inventions, and patents are pending on others. Dr. Sherbrooke is an internationally recognized expert in engineering, computational geometry, solid modeling and high-level algorithms, including the Medial Axis, e Medial Axis Transform, shape recognition, and graph theory.

Coleman and Sherbrooke realized that existing toolpath strategies were flawed and did not optimize the capabilities of modern CNC machines. Together, they constructed a sophisticated mathematical formula that resulted in the UHP toolpath technology breakthrough. eir firm, Celeritive Technologies, Inc. of Cave Creek, AZ, is currently the only provider of UHP toolpath technology, offered under the brand name of VoluMill™. Celeritive has applied for a patent on this technology.

Efficiency Doubled in Field Test PTD Manufacturing, a metal stamping and fabricating facility in Detroit Lakes, MN, recently adopted UHP toolpath software in its tooling department. e software is configured as an add-on module, working seamlessly within GibbsCAM. PTD now uses the technology to program 3- and 5-axis vertical mills. After just a month in operation, PTD confirmed significant improvements in tool life, scrap and total efficiencies.

Before switching to UHP toolpath technology, PTD Manufacturing roughed out pockets using a large inserted tool taking 0.1 to 0.2 axial steps. en pockets were finished with a solid-carbide endmill. Today, PTD uses a much smaller solid carbide tool, taking full-depth axial cuts, with a 0.02” to 0.05” peripheral cut at approximately five to ten times the feedrate and RPM.

In PTD’s toolroom, every block is different from the last, so fixturing and workholding tended to be a problem, especially with its 5-axis mill. UHP toolpaths exert a smaller amount of cutting pressure than previous methods. PTD has therefore been able to reduce the rigidity of its set-ups, also reducing the number of set-ups per block, permitting a move to more universal fixturing. e most dramatic improvement to date has come from PTD using UHP toolpath technology to mill a large pedestal punch from A2 toolsteel. Previously, it took 22:36 minutes to run the punch with a 3” inserted shell mill.

Now it takes just 7:20 minutes with a ½” carbide ball endmill – a 208 percent increase in efficiency. roughout the shop, PTD estimates that total machining time has been reduced by about 40 percent, with commensurate reductions in material costs.

Jake Kopveiler, CNC programmer at PTD Manufacturing, is a firm believer in the new technology. “ere’s no comparison between our old and new systems. UHPT technology creates toolpath cuts much more intelligently, with more aggressive parameters. It has optimized our machine and cutting tool capabilities like nothing I’ve ever seen. e improved cycle time speaks for itself.”

Industry Implications e potential impact of UHPT engineering is staggering. Consider the very real possibility that every manufacturing facility in the United States could double its machining output using existing hardware and CAD/CAM technology, merely by adopting an inexpensive platform-neutral software program. e resulting cost efficiencies could more than offset current pressures to move manufacturing overseas, helping to improve national employment and economic conditions. Furthermore, by reducing both material and utility requirements, UHPT technology represents a truly “green” solution for the industry as a whole. n

Alesa Lightbourne, Ph.D., teaches communications at Chapman University College, and is a wellpublished freelance writer on engineering and hightech topics: alesa@lightworks.us.

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SAN DI EGO C H A P T E R

NTMA - SAN DIEGO CHAPTER

PRECISION

MEMBER LISTINGS

2011 Board of Directors

Regular Members

NTMA President Melinda Coldwell Cornerstone Machining, Inc. Vice President Tony Martindale Martindale Manufacturing Recruitment Director Mike Brown Computer Integrated Machining

Member at Large Peter Neville B&H Tool Member at Large Todd Cuffaro Miller Machine Member at Large Heather Russell K-Tech Machine Member at Large John Riego de Dios Construction Tech Academy Associate Member Glenn Van Noy Champion Risk Insurance Associate Member Mark Selway Selway Machine Associate Member Dave Stanton Digital Dimensions

Todd C. Lawson Dennis Cope Sean Tillett Peter Neville Lyle Anderson Michael J. Brown Melinda Coldwell Alex Fima Erich Wilms Donovan Weber Gabor Paulovits, JrAndrew Allen Nhan Vo Young David Tuza Dora E. Tuza Jim Piel Heather Russell Stuart Russell Cliff Manzke Russell Wells Sr. Tony Martindale Todd Cuffaro Mark Rottele Scott Cormony

760-439-0109 760-494-6774 760-494-6894 800-272-8878 760-746-6459 619-596-9246 760-727-5228 512-355-1360 760-598-9100 760-929-9380 510-633-9632 760-744-8482 760-744-8482 949-453-1500 949-453-1500 858-695-1787 760-471-9262 760-471-9262 760-504-6875 909-390-3222 760-744-3078 619-501-9866 909-606-8252 760-471-2600

Associate Members Glenn Van Noy Dave Stanton Jeff Schwen Gail Houser Mark Selway

“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.”

Academy Machine Products Alphatec Spine Alphatec Spine B & H Tool Company Inc. C & H Machine and EDM Services Computer Integrated Machining, Inc. Cornerstone Machining, Inc. Directed MFG / Rapid Manufacturing Diversified Tool & Die Forecast 3D G & S Tool Inc. Henry Machine, Inc. Henry Machine, Inc. I-Source Technical Services, Inc. I-Source Technical Services, Inc. J I Machine Company, Inc. K-Tech Machine, Inc. K-Tech Machine, Inc. Manzke Machine, Inc. MarLee Manufacturing, Inc. Martindale Manufacturing Co. Miller Machine Works, LLC Roettele Industries Waterjet West, Inc.

Champion Risk and Insurance Services Digital Dimensions, Inc. East County Internet Marketing National Tooling & Machining Assoc.

Selway Machine Tool Company

760-419-1393 858-279-2557 619-315-5604 602-758-6912 888-735-9290

CALENDER OF EVENTS Monday, February 21, 2011 (5:30pm) - Scott Schmidt Black Line Group (R&D Tax Credit) at Bruno’s Italian Restaurant in San Marcos Wednesday, March 23, 2011 (5:30pm) - Congressman Bob Filner at Solar Turbines Pacific Highway Location Wednesday, April 27, 2011 (5:30pm) - Mr. Greg Koehler, Attorney, discussing current legal issues pertinent to small business at Bruno’s Italian Restaurant in San Marcos TM

NTMA - San Diego Chapter phone: 760.419.1393 www.ntmasandiegochapter.org 348 Saratoga Glen Escondido, CA 92025

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Industries Served: • Automotive • Aerospace • Medical • Firearms • Dept of Defense • Electronics 2440 Cades Way, Vista, California 92081 phone: 760.727.5228 fax: 760.727.0799

www.cornerstonecnc.com

Manufactured with Pride in America!

Since 1988

THE NEW TOOL OF THE TRADE.

[

LET YOUR AD BE NTMA M embers A CALL TO ACTION! Call Precision Magazine today for more details at 602.242.8826 or email: ExecutiveDirector@arizonatooling.org

]

RECEIV 15% OF E F!

arizonatooling.org / 27

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N O R T H T E X A S C H A P T E R

NTMA PRECISION 2011 Board of Directors President Todd Ellard Manda Machine Company Vice President Jeff Spencer Clay Precision Treasurer Barron Smith R.W. Smith Company Chapter Executive Lisa Ellard Trustee Wayne Applegate Applegate EDM Board Members Mike Berdan BE Technologies Frank Burch Hartwig, Inc. Stephen Draper Hartwig, Inc.

N O R T H T E X A S C H A P T E R

JOIN THE POWER TEAM AND GET CONNECTED TODAY For more information visit www.ntmanorthtexas.org or contact: Lisa Ellard, ntc.ntma@gmail.com

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Micah Embrey CNC Precision/Shamrock-Bolt Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason

“The Power of Connections” NTMA - North Texas Chapter ntc.ntma@gmail.com phone: 214.536.4970 www.ntmanorthtexas.org P.O. Box 541236 Dallas, TX 75354-1236

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NTMA - NORTH TEXAS CHAPTER

MEMBER LISTINGS Regular Members Vincente Chan Wade Whistler George Gregory Wayne Applegate Steve Ingersoll Michael Berdan Kevin Snyder Christi Cameron Jeff R. Spencer Gary Embrey Joseph Lodor Robert McNamara Charles Gilbert David Ellis Rudy D. Kobus Gary Fore David L. Hodgdon Don Halsey, Jr. Keith Hutchinson Brent Terhaar Sammy Maddox Todd Ellard Rodie Wooodard Woodrow W. ompson Allen Meyer Eddie Steiner, Jr. Morris Padgett Troy Paulus Joe O'Dell Matt Harrell Barron Smith Dion Casto Frank Burch John Anselmi Marshall B. Taylor

Associate Members

Aeroweld Technologies, Inc. A.C.T. Precision Sheet Metal, Inc. ABL Services, Inc. Applegate EDM, Inc. Bailey Tool & Manufacturing BE-Technologies, Ltd. Billor Machine Tool Service Cameron Machine Shop, Inc. Clay Precision, Ltd. CNC Precision Manufacturing, Inc. Commerce Grinding Company, Inc. Davis Machine & Manufacturing DNS Tool Cutter Grinding, LLC Ellis Tool & Machine, Inc. Expert Tool & Machine, Inc. Fore Machine Company, Inc. H. H. Mercer, Inc. Halsey Engineering & Mfg., Inc. Lancaster Machine Shop Larson Allen LLP Maddox Metal Works, Inc. Manda Machine Company, Inc. Maximum Industries, Inc. Metal Detail, Inc. Meyer Enterprises O E M Industries, Inc. Padgett Machine Tools, Inc. Paulus Precision Machine, Inc. Plano Machine & Instrument, Inc. Quickturn Technology, Inc. R. W. Smith Company, Inc. Rapid Tooling, Inc. Southern Machine Works Sunbelt Plastics Inc. T & K Machine, Inc.

972-247-1189 214-678-9114 903-509-2256 972-488-8997 972-974-8892 972-242-1853 972-465-3608 972-235-8876 903-891-9022 972-241-3931 214-651-1977 817-261-7362 972-241-5271 903-546-6540 972-241-5353 817-834-6251 972-289-1911 940-566-3306 972-227-2868 214-570-7558 214-333-2311 214-352-5946 972-501-9990 214-330-7757 972-353-9791 214-330-7271 254-865-9772 940-566-5600 940-665-2814 469-643-5010 214-748-1699 972-633-8872 580-255-6525 972-335-4100 903-785-5574

UPCOMING MEETINGS & EVENTS Thanks to our January & February 2011 General Meeting hosts: January 2011 – Manda Machine Company February 2011 – Ellison Technologies

Larry Ellison Tommy ompson Lewis Lance Rick Blair Craig van Hamersveld Jack Barger Chris Simms Fraser Marshall Frank Vance Brad Gross Norm Williamson Mike Johns Greg Kinney Matt Curtis Rod Zimmerman Randy Joyce Curtis Dahmen Mark S. Holly Leland McDowell Pat McCurley Ray Jones Mike Chadick Reed Hunt Brian Fleming Bob Severance Alan VanHoozer Glenn Wise

AJR Metalworks, Inc. Bodic Industries Bodycote Heat Treat Brook Anco Corporation Campat Machine Tool, Inc. Castle Metals Champion Cutting Tool Ellison Technologies Frank J Vance Gross Publications, Inc. H & O Die Supply, Inc. Haas Factory Outlet Hartwig, Inc. -- Texas Hillary Machinery, Inc. Iscar Metals, Inc. Joyce Engraving Company, Inc. Kaeser Compressors, Inc. Machinists Tools & Supplies McDowell Machinery & Supply Co. Midlothian Insurance Agency MWI Inc. / Southwest Division North Texas Precision Instrument Reed Hunt Services, Inc. Richland College Severance Brothers Top Tooling of Dallas, Inc. Wise Machinery, LLC

214-352-3766 972-840-1015 817-265-5878 585-475-9570 972-424-4095 972-339-5000 516-536-8200 972-812-5500 972-255-3925 800-375-8488 214-630-6660 972-231-2802 972-790-8200 972-578-1515 817-258-3200 214-638-1262 972-245-9611 214-631-9390 214-353-0410 972-723-5171 972-247-3083 817-589-0011 817-261-4432 214-232-1604 972-660-7000 972-278-8300 817-905-9473

THANK YOU TO OUR 2011 SPONSORS!

BILLOR MACHINE TOOL SERVICE Larson Allen LLP CPAs, CONSULTANTS & ADVISORS

TM

UPCOMING EVENTS:

March 25, 2011 – Lunch & Learn, Larson Allen LLP April 21, 2011 – General Meeting, Midlothian Ins. Agency May 19, 2011 – General Meeting, Commerce Grinding, Inc. June 16, 2011 – General Meeting, Rapid Tooling, Inc.

GET CONNECTED TO PRECISION! For more information contact: CHRIS MIGNELLA, ExecutiveDirector@arizonatooling.org

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SAFETY corner

THE EYES HAVE IT article provided by SCF ARIZONA Thousands of people are blinded each year from work-related eye

injuries that could have been prevented with the proper selection and use of eye and face protection.

Eye injuries alone cost more than $300 million per year in lost production time, medical expenses, and worker compensation, according to the U.S. Department of Labor.

image: Gateway Safety, Inc.

worker from splashes, heat, flying particles and other hazards, while allowing for plenty of ventilation.

Face shields are recommended especially for welding, riveting and activities that involve extreme heat. Face shields won’t protect the eyes, so they must be used in combination with safety glasses or goggles.

Some face shields are designed specially to be fitted with hard hats.

The Occupational Safety and Health Administration requires employers to ensure the safety of all employees in the work environment, which means eye and face protection must be provided whenever necessary to protect against chemical, environmental, radiological or mechanical irritants and hazards.

Workers in areas where there is a lot of airborne dust or grit, flying particles or splashing chemicals, need to choose protective eyewear best suited for the job. Never rely on regular glasses as a way to protect them.

Each year, SCF receives scores of workers’ compensation claims from workers who have been injured by debris that has injured their eyes or struck them in the face.

• Glasses with impact resistant lenses that have side shields provide adequate protection for most types of work.

In general, OSHA standards require that employers provide the kinds of protection, whether it is safety goggles or complete face shield, to ensure safety from flying particles, molten metal, liquid chemicals, acids or caustic liquids, chemical gases or vapors, or potentially injurious light radiation.

OSHA also requires that all eye and face personal protection equipment be marked in a manner that the manufacturer can be identified easily.

For full-face protection, face shields are the best choice. They protect the

30 /

Here are some tips from the American National Standards Institute:

• Flexible-fitting or cushion-fitting goggles fit easily over prescription glasses and provide front and side protection.

• Special purpose eyewear, such as chemical or chipping goggles, provides maximum protection from fumes and flying debris.

• Full face shields may be worn in addition to protective eyewear for maximum facial protection.

INFOLINK: www.scfaz.com

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“YOUR PARTS, DONE RIGHT, ON TIME, EVERY TIME.”

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Makino Next-Generation a51nx

Introducing the a51nx. It’s a one-machine expansion program.

It expands the cutting envelope by 14%, boosts spindle torque 19%, and improves rigidity for higher metal-removal rates and reduced vibration. Its 1G linear axis acceleration and one-second 90-degree table indexing significantly reduce non-cut time. The reliability of the a51nx expands on the industry-leading performance of

Makino’s 1-Series. Most of all, the a51nx enables you to expand your ability to make lower-cost parts faster. See how at makino.com/a51nx.

For more information on all Makino products in Arizona, contact David Gundersen at 602-228-0347 or David.Gundersen@makino.com. © 2011 Makino