Building Flourishing Organizations
Legislative Changes to Labor and OSHA Laws
Navigating the Healthcare Landscape
“ We only partner with those who share our same values towards quality.”
Wayne Sikorcin and Colin Horn, Craftsman Tool & Mold
Those who build and buy high cavitation molds that run for decades specify Progressive for unmatched accuracy and performance:
“Craftsman built our reputation on close tolerance mold bases. When it’s down to tenths, there’s no room for inconsistencies. That’s why Progressive is our first choice and primary supplier.”
With the industry’s most extensive range of precision componentry, Progressive will help your long-term reputation well into the future. Call 1-800-269-6653 to put these advantages to work for you.
You’re INvited to our 138,000 ft2 state-of-the-art facility in Auburn Hills, Michigan, where we design, manufacture, assemble, test and service Hot Runner Systems for the North American Market.
In addition, INCOE, a USA family-owned business since 1958, offers engineering solutions, flow simulation, individualized training, 24/7 service and support that includes 300,000+ in-stock replacement components. All to maximize your up-time and realize the most value from your INCOE Hot Runner System.
Welcome IN: Arrange your visit today - david.lange@incoe.com
A look at hot runner systems used in injection molding composed of an assembly of heated components that keep plastic distribution channels at a consistent temperature, so the plastic stays molten and flows smoothly into the mold. In adding a hot runner system, the process is optimized, and molders experience operational efficiencies, quality of molded parts, scrap reduction and cost savings.
TYLER VANREE AMBA President, LEGACY PRECISION MOLDS, INC.
Hello AMBA! I hope this finds you well, and that you are enjoying the summer season. For me, some of the best summertime activities are weekends boating at the lake, fishing with the kids or simply sitting around a campfire with family and friends. It is important to take some time this summer to enjoy the great outdoors and connect with loved ones in ways that are meaningful to you.
Looking back, the recent AMBA shop tours – at Franchino Mold and Engineering, as well as Hanson International – were a great success and a valuable learning opportunity. A big thanks to each of these shops for opening their doors, sharing their core competencies and inviting feedback from fellow mold building professionals. If you have ever wondered if your shop should host a tour, I strongly recommend it. Whether a small, medium or large shop, each of us has a story to tell, successes to share and areas to grow and improve. Hosting a plant tour gives you the opportunity to experience all three, and undoubtedly will benefit your shop. Others often see things through a different lens and can offer insights you may never think of on ways to improve business. The AMBA team is ready to help and has a wealth of experience to make it easy to be a host site. Take the leap today and become the next shop tour!
Looking forward to September, there will be a virtual meeting for CNC machinists and programmers. This bi-monthly conversation is a great space to ask questions and get answers from peers who share similar challenges and can provide keen insights or fresh ideas. I encourage you to invite a few members from your company to participate in this conversation. It’s not only a great way to invest in your business but also an investment in your most valuable asset: your team. AMBA also will host the first webinar in its Financial Literacy Series on September 17, titled “Building a Budget to Drive Performance.” Check out www.amba.org for more details on how to sign up for these free events.
Finally, I have an important update on the legislative front. Since 2019, AMBA has partnered with The Franklin Partnership, a lobbying firm in Washington D.C., to stay informed on legislation impacting the industry and to influence pro-manufacturing legislation efforts at a national level. AMBA has had successes on several major fronts and continues to invest in this crucial relationship to help keep American manufacturing strong for future generations. One key initiative AMBA is working on right now is exposing examples of transshipment and tariff evasion. The office of the United States Trade Representative (USTR) is requesting this information from AMBA, and we need your help in providing it. All information shared will be kept anonymous and will raise necessary awareness of these practices that negatively impact our businesses. Please send your examples to info@amba.org to help protect the future of our companies and our industry.
Remember this: The AMBA community grows stronger as we stand together to face another day. You are the AMBA. We are the AMBA. Together we are stronger.
Tom Barr, TK Mold & Engineering
OFFICERS
National President
Tyler VanRee, Legacy Precision Molds
Vice President
Andy Peterson, Industrial Molds
Secretary and Legal Counsel
Alan Rothenbuecher, Benesch, Fiedlander, Coplan & Aronoff LLP
Treasurer
Hillary Thomas, Westminster Tool
Charles Daniels, Wepco Plastics
Ed Francis, Crystallume Engineered Diamond Products
Justin Gregg, Dramco Tool Co., Inc.
Mike Hetherington, Franchino Mold & Engineering
Kyle Klouda, MSI Mold Builders
Chad LaMance, United Tool and Mold
Troy Roberts, Tolerance Tool
Camille Sackett, Accede Mold & Tool
Scott Smith, Tessy Tooling
John Stocker, Swiss Steel USA, Inc.
By Lindsey Munson, editor, The American Mold Builder
Known for taking the road less traveled, Hanson International began “breaking the mold” in 1966, forging positive change in the industry, being intentional in community contributions, building a highly skilled workforce and creating a distinctive culture – which centers on its vision to deliver world-class tooling.
Based in Saint Joseph, Michigan, Hanson specializes in precision mold and high-pressure die cast design, manufacturing, sampling and inspection, primarily serving the automotive industry. Its campus includes a general office and engineering team, a tooling facility and a die testing center. Using state-of-the-art equipment and advanced engineering software, Hanson’s well-trained workforce guarantees top-shelf tooling from design to delivery with a single-source, single-point-of-contact approach.
Human Resources Director Baylee Boyer took time to share Hanson’s unique story. She said, “Our commitment to excellence extends beyond the products but also to our people – providing comprehensive training, mentorship and a supportive culture that empowers all employees to reach their full potential. At Hanson, having an employee build a career is equally important as an employee building a tool.”
Merlin Hanson, founder of Hanson International said nearly 60 years ago, “Our greatest asset is our team!” Through the years, this statement lives on loud and proud in the company and continues to carry merit creating a culture that puts high emphasis and value on each employee’s career journey. Boyer said, “While tools can be made at any shop, people ‘choose’ Hanson because they know they’ll be built up professionally and personally, work alongside colleagues
who have their back and are united toward a common goal with leadership support.”
To build a strong, thriving culture, Boyer shared Hanson’s top three must-have practices, including the following:
Employees should share an understanding and want to carry out the company’s mission and vision alongside the Hanson Dieformance Guarantee. “For Hanson, it’s about building world-class tools,” said Boyer, “and a world-class workforce. This expectation isn’t about just following the leader and treating it as just another job, but something that is strived for, honored and pushes boundaries to be the best – as an employee and company.”
Unique in the tooling industry, the Hanson Dieformance Guarantee leverages expertise, technology, equipment and commitment to customer satisfaction. It’s a high-value program designed to support manufacturers in the global marketplace with the design, build, sample and inspection of Hanson’s world-class tooling.
In living out the mission, vision and Hanson Dieformance Guarantee, an employee becomes a part of building a culture that contributes to the common goal that makes Hanson successful.
Open communication and transparency between leadership, team departments and employees. Boyer said, “In communication with employees, there has never been a time where being transparent was not a positive experience. Employee growth, value and connection occur every day
Hanson International’s apprenticeship program is a seven-week course where apprentices receive a solid understanding of shop operations, trade expectations and basic die knowledge. Photo courtesy of Hanson.
– it’s the open-door policy to address a problem or talk through a solution; it’s a leader taking time to listen; it’s a manager saying ‘yes’ to professional development; or it’s dedicating full attention during a peer review – walking the employee through where there are improvements to be made and where there are successes.” It’s a listening ear or a voice of reason that builds respect.
Hanson looks at every aspect of the employee experience and its transparency level, including shift changes, machine tracking and more. Boyer said, “If we need to invest in key resources or enable a communication process to meet the needs of our people, then we’ll make it happen.”
Continuous learning through daily work experiences, career growth in advancing skills, apprenticeship programs and more. “Even our most experienced journeymen learn something new every day. Our apprenticeship program exemplifies this, allowing seasoned employees to impart their knowledge while learning from apprentices who bring fresh perspectives and innovative ideas. This exchange of ideas fosters creativity and new approaches, enriching the Hanson team,” said Boyer. It is lifelong learning that empowers and motivates employees to be the best version of themselves, to tackle challenges with enthusiasm and to take a job and make it into a career.
“The most difficult tasks often are the most rewarding,” said Boyer “and each individual success is celebrated by the entire team. When one employee wins, we all win.”
In line with cultural practices, Hanson’s journey began with small steps crucial for establishing the workplace culture desired – positivity, engagement, value and growth. A part of the practices is recognition and reward, Boyer said, “We started by sharing whether we met our monthly sales shipped goal. When the team achieved it, we raffled off prizes. As we saw the team rise to the challenge, we set bigger goals, offered better prizes and witnessed a noticeable improvement in our culture.”
“THE SECRET SAUCE IS, THERE ARE NO SECRETS”
Hanson’s strategy to recruit and retain talent is straightforward – it opens its doors. “So, the secret sauce is, there are no secrets!” said Boyer. By inviting the
community and younger generation into the facility, Hanson has expanded its platform for those interested to see, listen and ask questions about the company and molding industry. Whether it’s as simple as highlighting the fun and innovative aspects of the company, sharing the various roles and responsibilities or diving deeper into the apprenticeship program at Lake Michigan College, Hanson has the attention and excitement of potential employees.
While leveraging social media and other marketing platforms is a component of Hanson’s strategy, its efforts toward a key part of human capital succession is its apprenticeship program. “At Hanson, these programs are leveraged to cultivate the next generation of leaders and skilled talent,” said Boyer, “ensuring a steady stream of capable teammates and preventing the skill gaps businesses face.” For more than 50 years, Hanson’s apprenticeship program through Hanson Technology Center and Lake Michigan College has employed several skilled individuals who have received top-level training and education on the fundamentals of the trade.
Boyer shared, “Hanson apprentices begin with a seven-week pre-apprentice academy at the Hanson Technology Center, where they receive eight hours of training, five days a week, learning basic safety and trade fundamentals. During this time, Hanson sponsors the apprentices – treating them as employees. Upon completing the academy, Hanson registers them as USDOL apprentices. Having equipped them with a solid understanding of shop operations, trade expectations and basic die knowledge, the apprentices come to Hanson ready to start their careers.”
In addition, Boyer said, “Hanson provides monthly inhouse training for its apprentices. These cohorts gather for in-depth classes where they learn about using various technologies, job flow, tips and tricks and company culture. Hanson’s internal apprentice manual serves as a comprehensive guide for trade-related knowledge. This setup allows apprentices at different stages of their training to share experiences and support each other.”
Looking ahead to 2025, Hanson has built a two-year strategic plan and remains committed to “breaking the mold,” focusing on growth and quality across its platform. Boyer said, “It can be intimidating and tricky – especially when it deals with a company’s biggest investment, its people. Our goals include continuing to promote a positive work culture and careers in manufacturing. Contrary to popular belief, manufacturing is not slowing down, and technology alone won’t suffice; skilled people are essential to operate the industry.”
More information: www.hansoninternational.com
By Matt Lesser, author, keynote and owner, Uniquely Normal, LLC
In 2017, the idea for the “Flourishing Life Model” 1 was born; however, it was incomplete. The first four levels – diminishing, surviving, striving, thriving – were developed, but it was not for another three years, in 2020, the top of the model – flourishing – finalized.
The “Flourishing Life Model,” first presented in the book, unSatisfied: When Less is More 2, was demonstrated as a growth and development tool to help people take responsibility for their lives, to make intentional choices to live their best lives and to become the best version of who they are meant to be. In the follow-up book, unEngaged: Building Flourishing Organizations 3, the model is applied to organizational culture and leadership as a tool for helping leaders intentionally invest in, develop and place their team members in roles where they become the best version of who they are meant to become.
The model, at its core, is a powerful tool for leaders and managers to use to equip their team members to become the most productive, highly engaged and optimal version of who they are intended to be.
A brief, high-level description of each of the levels will establish a common understanding and shared language about the model.
Diminishing. People have all but given up, or “quit” – on life, their job or career, family, friends, marriage, physical condition, hobbies and community engagement. Usually overwhelmed or disillusioned, these people have
adopted a “helpless” mentality and are on a fast-track to “hopeless”… if they have not arrived at that place already.
Surviving. People do whatever it takes to get through, “survive,” another day. They get up, they go through the motions, they accomplish the routine, they check the boxes, they punch the clock, to do what it takes to meet the expectations of others so they can have – from their perspective – a small measure of freedom to do whatever it is they want to do (e.g., exercise, fish, hunt, read, play games, sleep, drink, watch television, etc.). Often not optimistic about the future or hopeful their position in life will change, they often are relegated to their “plot” in life. While it is possible to spend most of one’s reality at the “surviving” level, many people at the “surviving” level either move down to “diminishing” or up to “striving.”
Striving. People have grown frustrated, even angry, with “surviving” and decide to take responsibility, demonstrate ownership and do something about it. Intentionality becomes the rallying cry at this level as a person may decide to pursue education, enroll in training, gain new skill sets, seek out a coach or mentor, or sign up for projects, tasks or activities where the person’s skills may be developed or highlighted. Often filled with a new sense of hope and optimism, these people adopt a “whatever it takes” mentality to grow, develop and become better, wiser and more self-actualized version of the people they envision they can become.
Thriving. These people are proverbially “hitting on all cylinders.” Usually experiencing success in their
professional lives, they often are performing well, advancing and considered as experts or leaders in their field of interest. At this level, the focus is on performance, continued succes, and protecting what has been earned along the way. While often thriving professionally, there are often other dimensions or roles that experience surviving or even diminishing – marriage, parenting, community engagement, physical health and spiritual growth. While it is possible to spend years – sometimes decades—at the thriving level, it often is to the detriment of other, more meaningful areas of life and living. The two key differentiators between “thriving” and “flourishing” are the following: motive and focus. This will be unpacked at the “flourishing” level.
Flourishing. A person transcends success and shifts one’s motive and focus. While thriving is a focus on self and accumulation—money, possessions, power, titles, degrees, awards – flourishing is a focus on others and on legacy – giving back, investing in others, coming alongside, engaging in impact – focused activities that outlive the person, empowering others, aligning living to core values. When a person’s motivation and focus shifts from “me” to “you” and “we,” and from “I want” and “I consume” to “I give” and “I contribute,” the person is moving from thriving to flourishing. In organizations, those who intentionally pursue flourishing in their lives and living are the ones the organization needs to empower to coach, mentor and train emerging and other leaders. Why? Because the focus is on building something that is greater than any one person, and the time horizon often is longer than any one person’s lifetime. Flourishing is about coming alongside others to help them become the best version of who they can become – for their organizations, their spouses, their children and their communities – to live life to the fullest.
The foundation for the “Flourishing Life Model” is built upon three pillars:
1. Empathy: Intentionally and fully listening and understanding another person. Communicating that every person has worth and is valued, seen, understood and loved. At its core, empathy is about getting behind the eyeballs of others and seeing their perspective and walking in their shoes to understand what they think and feel (to the best that one can do this).
2. Empowerment: Fully equipping, training, granting authority and releasing team members to do what they are hired to do. In other words, effective delegation. Effective delegation starts with clear communication of the role, expectations, deliverables and timelines. Then, it is about equipping with the tools, knowledge and skills to do the job with excellence. Next, it is transferring authority and ensuring the other
person accepts that authority. This is followed by responsibility – the person accepts the responsibility of what is delegated, including execution and results. Delegation does not work without accountability; however, accountability is not micro-management or “you have to earn my trust” mentality. Accountability is holding the team member responsible for what was delegated, as well as the results expected, which leads to consequences. Consequences are communicated up front – both if results meet or exceed expectations, and if results fall short.
3. Excellence: Excellence is both a mindset and an execution strategy; a way of doing business that permeates and integrates everything the organization does. It is not perfection; however, it is being fully committed to give and to do one’s very best, offering 100% engagement every day.
Empathy, Empowerment and Excellence are the pillars of a flourishing organization; however, building a flourishing organization where every team member can flourish requires intentionality.
Leadership is first and foremost about people and relationships. The greatest gifts that leaders can provide the people they lead are the following: listening and understanding. Why? Because people have an innate desire to be heard, seen, understood, valued and loved. Leaders who lead people to flourish understand that it is about equipping, training, modeling and empowering people to become the best version of who they are created to be.
How is the “Flourishing Life Model” applied to organizational culture? It starts with a conversation, by listening intently and understanding where the person is on the “Flourishing Life Model.” The following questions are helpful to understanding and placement on the model:
t• How do you feel/think about your current job?
• Do you enjoy going to work on Monday mornings, or do you experience something else?
• If you could do anything in the world professionally, what would you do?
• What are your dreams for your work and your profession? What is keeping you from pursuing those dreams (if the person is not pursuing them)?
• What is your greatest frustration with your professional life? Life in general?
• What motivates you? What excites you?
• In what areas of your life do you feel empowered? Unempowered? What can you do in the unempowered areas to become empowered?
• What causes you anxiety? What keeps you awake at night?
• How would you describe the next one/three/five years of your professional life: hopeful, excited, dread, anxious, love it, optimistic, pessimistic? Your personal life?
• If you could change one thing about your professional life, what would it be? Your personal life? What is keeping you from making these changes?
This is a small sample of questions that could be asked. Once a person’s level on the “Flourishing Life Model” is identified, the journey shifts to putting together a plan of action to help the person acknowledge the current reality, take responsibility and intentionally start making choices that will help the person learn, grow and develop to higher levels on the model.
ORGANIZATIONS ARE PEOPLE; PEOPLE ARE ORGANIZATIONS
As a result, the most important investment leaders of organizations can make is in the people and culture of the organization. Every organization has a culture; that is not the issue. The issue is this: What kind of a culture do you want to have in the organization? If a healthy culture where every team member can flourish is wanted, it will take time, resources and intentionality; it will not just happen on its own or by happenstance.
Organizations with flourishing cultures experience the following benefits:
• Easier time recruiting and hiring (often, there is a waiting list to get in)
• Lower turnover (turnover costs 25%-400% of the annual compensation for each position turned over)
• Higher engagement (low engagement costs up to 40% of productivity in organizations with unhealthy or toxic cultures).
• Longer loyalty and commitment
• Greater ownership mentality
• Lower waste and higher margins
The process of building a flourishing organization is simple-to-understand:
• Beginning with a conversation,
• Putting together a plan of action (must include the leadership team and often includes training, workshops, coaching and mentoring, retreats, strategic planning, a robust communication plan, documenting processes and SOPs and best practices, and above all, intentionality and long-term commitment),
• Executing the plan (it is all about the execution!),
• Measuring the results, and
• Adjusting and modifying, as necessary.
A simpler way of identifying the process is the following:
• Here. Assess the current state.
• There. Figure out where you want to go.
• Path. Map out the journey from “here” to “there.”
In creating an organizational culture where every team member can flourish (not everyone will choose to pursue flourishing), the rising tide concept will be created, and the organization will experience higher engagement, healthier relationships and greater team camaraderie, leading to greater results as the proverbial ship rises higher and higher. Keep pressing on in the journey!
Matt Lesser is the founder and CEO of Uniquely Normal, LLC, which exists to equip and train leaders to build flourishing organizations through empathy, empowerment and excellence. He has trained leaders, teams, and boards in over 40 countries over the past 20+ years. Prior to launching Uniquely Normal, Lesser owned and operated businesses and served in several C-Suite roles across various industries. He earned undergraduate degrees from Indiana University and an MBA from Taylor University and is certified in nearly 20 personality, team building and leadership assessments. Additionally, Lesser is the best-selling author of unSatisfied: When Less is More; his second book, unEngaged: Building Flourishing Organizations, was released in late 2023. He serves as an adjunct professor and has served on several boards of directors both domestically and internationally.
More information: Matt@uniquelynormal.com, www. uniquelynormal.com
References
1. Flourishing Life Model. Copyright © 2022 by Matthew Q. Lesser and Uniquely Normal, LLC.
2. Matthew Q. Lesser. unSatisfied: When Less is More (Lioncrest Publishing, 2022).
3. Matthew Q. Lesser. unEngaged: Building Flourishing Organizations (Ballast Books, 2023).
Photo courtesy of Jimmy Renallo, Creative Techology.
Save resources and make your manufacturing environment more cost-ef cient. Products from HEIDENHAIN help you lower your total cost of ownership. You can increase your productive time, for example, with the smart functions of the TNC7. This new CNC control delivers faster results while preventing machine overload. Mean-
while, be sure to optimize your processes with machine data collection from the HEIDENHAIN StateMonitor software. You can even reduce your CO2 footprint by up to 99% with the new generation of LC and RCN encoders, whose enhanced optics ensure reliable measurement without compressed air.
A look at hot runner systems used in injection molding composed of an assembly of heated components that keep plastic distribution channels at a consistent temperature, so the plastic stays molten and flows smoothly into the mold. In adding a hot runner system, the process is optimized, and molders experience operational efficiencies, quality of molded parts, scrap reduction and cost savings.
INCOE Corporation 248.616.0220 www.INCOE.com
INCOE, Auburn Hills, Michigan, is a US familyowned and operated corporation that engineers and manufactures single hot drop nozzles, unitized manifolds and full hot half hot runner solutions since 1958. As a total plastic melt delivery provider, including complementary training to customers, the company has MFA and thermal FEA analysis engineering capabilities, and sells and supports INCOE temperature and valve-gate sequence controllers. Additionally, it provides 24/7 service (warranty, preventive maintenance, maintenance or broken) and support within stock standard and custom solution components. INCOE employs and supports hundreds of employees and their families within and near its 138,000 sq. ft. Auburn Hills, Michigan, facility. INCOE is a long-time, active sponsor of American Mold Builders Association, Manufacturers Association for Plastics Processors and other organizations. Welcome IN!
nozzle to full hot half solutions, utilizing either thermal or valve gate technologies. With extensive experience in a broad range of markets from technical molding to thinwall packaging, Mastip’s expert team will design a highperformance solution that maximizes productivity. Whether the product is engineering, medical, packaging, electrical, automotive components, consumer or optical, Mastip has the product range and applications experience for even the most demanding engineering resins. Mastip believes foremost in providing exceptional global service and support, throughout the life cycle of the hot runner, ensuring spares and technical support always are available.
PCS Company, Fraser, Michigan, offers the complete line of Polimold hot runner systems in fully balanced thermal and valve gate options to fulfill customers’ specific requirements. With decades of application experience, Polimold will design and construct a hot runner system from two up to 64 drops. Depending on a customer’s application, the system will be designed as a complete hot half, manifold and components or facility (pre-wired) with technical support. PCS also offers hot runner temperature control systems, in both modular and PC-based designs.
BORIDE Engineered Abrasives, Traverse City, Michigan, a manufacturer of abrasive products for industrial and consumer applications, has launched its Beginner’s Polishing Bundle, a comprehensive kit designed to cater to brand new polishers and experienced professionals. This all-inone package is engineered to simplify the polishing process, enabling users to achieve up to a 600-grit finish on their molds and dies with ease and precision. The Bundle includes U-LAP 70 Profiler, four unique polishing stone kits, ceramic super stone kit, stoning oil and stone holders. For more information, visit www.borideabrasives.com
PCS Company, Fraser, Michigan, a supplier of mold bases, mold components and molding supplies, has released the AIRTECT Plastic Leak Detection Systems, which provide 24-hour protection on a hot runner system or IMM injection nozzle. Whether a leak causes a simple heater band replacement or a costly repair of a high-cavitation hot runner system, AIRTECT Plastic Leak Detection Systems provide instant feedback from the direct protected area in the form of an alarm and/or the suspension of production. For more information, visit www.pcs-company.com
HASCO, Fletcher, North Carolina, a supplier of standard components and accessories for the tool and moldmaking industry, has presented an extension to its product portfolio with the new parking plate Z80953/… Using the comprehensive multi-coupling system, cooling circuit connections can be made quickly and easily in a single step. The new parking plate with a locking mechanism allows reliable and separate safekeeping of machine-side multi-couplers. The parking plate allows individual positioning on the injection molding machine by the customer. For more information, visit www.hasco.com
Progressive Components, Wauconda, Illinois, a developer and distributor of componentry and software for the production tooling industry, has released a new Slide Lock Style Slide Retainer. Compatible with previous standards, the Slide Lock Style Slide Retainer’s roller design will not wear the bottom of slides, providing greaseless performance in medical and cosmetic applications. Progressive’s Slide Lock Style Slide Retainers are offered in three sizes, including SRTLK-25A with a green spring to hold 25 lbs, SRTLK25B with a longer blue spring to hold 25 lbs and SRTLK50A with a red spring to hold 50 lbs. For more information, visit www.procomps.com
ANCA, Wixom, Michigan, a global manufacturer of CNC tool and cutter grinders, has delivered RN35, the latest version of its cutting-edge ToolRoom software. This launch coincides with the celebration of ANCA’s 50th anniversary, marking a half-century contribution to industrial progress through precision cutting tools. The RN35 presents a range of advanced features designed to boost productivity and ensure consistent tool quality. ANCA’s RN35 software offers federate optimization, cycle time reduction of up to 20% and wheel life with new developments, including the integration of material removal rate calculations, statistical process control, profile fluting, I3dg improvements, profile software improvements, LaserUltra enhancements, double corner radius enhancements and the ability to import VRML models. For more information, visit machines.anca.com.
EROWA Technology, Inc., Arlington Heights, Illinois, a supplier of palletization and automation systems for North America, has released the EROWA Vise Power Clamp (VPC) Tooling System. The VPC offers a powerful and precise clamping of vises, fixtures and workpieces with pitch dimensions of 52 and 96 mm. The two VPC chuck sizes with the matching VPC clamping spigots form the core of the system. With the help of adapter pallets, the VPC tooling system easily can be combined with other EROWA tooling systems, such as UPC or MTS. For more information, visit www.erowa.com
Zimmermann, Germany, a global supplier of portal milling machines, has introduced the machine line FZG, a 5-axis portal milling machine with a low rail gantry that is capable of processing large and long components. The FZG is accessible from the side allowing easier loading and unloading processes. The developers utilized the thermo-symmetrical portal concept and modified its basic design. The line is suited for processing complete components, such as wing structures for the aviation industry, entire railway wagon side sections for the rail sector, tanks in the energy sector, exterior components for the aerospace industry and components for the defense industry. For more information, visit www.zimmermann-inc.com.
The L.S. Starrett Company, Athol, Massachusetts, a global manufacturer of precision measuring tools and gages, metrology systems and more, has announced the introduction of its No. W4900 Wireless Digital Electronic Indicator. This innovation is a precision measurement gage featuring touchscreen technology, multiple resolution and color settings, digital and analog readouts in the same indicator, seven languages, wireless output and many other features. Starrett W4900 AGD Group 4 Indicators are versatile, with large, easy-to-read-and-navigate capacitive touchscreen user interface menus, and they have wireless output for statistical process control via data collection systems, such as Starrett DataSure® 4.0. For more information, visit www.starrett.com.
Molded to
With over 160 years of steel production experience backing their brands, Swiss Steel Group is not only a pioneer, but also a market leader in specialty steels. Their comprehensive range of Formadur®, Thermodur®, Cryodur®, and Mold Die® grades allows you to choose the ideally suited mold material for your application. In addition, an extensive range of value added services provides you with more alternatives from one source, Swiss Steel USA.
www.swisssteel-group.com +1 800 323 1233
With over 160 years of steel Steel Group is not only a pioneer, Their comprehensive range of Die® grades allows you to choose cation. In addition, an extensive more alternatives from one source, www.swisssteel-international.us
With over Steel Group Their comprehensive Die® grades cation. In more alternatives
+1 800 323 1233 Molded
www.swisssteel-international.us
With over 160 years of steel production Steel Group is not only a pioneer, but also Their comprehensive range of Formadur®, Die® grades allows you to choose the cation. In addition, an extensive range more alternatives from one source, Swiss
www.swisssteel-group.com
www.swisssteel-international.ca
+1 800 323
+1 800 323 1233
By Alan Rothenbuecher, partner, and Brad Wenclewicz, associate lawyer, Benesch, Friedlander, Coplan & Aronoff LLP
The landscape of employment law is undergoing changes that could significantly impact the manufacturing industry. These developments necessitate employers to stay informed and proactively update their policies to ensure compliance with evolving regulations. This update summarizes key legal changes across several areas.
The US Equal Employment Opportunity Commission (EEOC) issued its first update on workplace harassment guidance in 25 years. This long-awaited update, effective April 2024, offers clarifying and expansive protections for employees. Notably, the new guidance expands the definition of sex-based discrimination under Title VII to include sexual orientation and gender identity. Harassment based on sexual orientation or gender identity includes epithets regarding sexual orientation or gender identity; physical assault due to sexual orientation or gender identity; outing (disclosure of an individual’s sexual orientation or gender identity without permission); harassment because an individual does not present in a manner that would stereotypically be associated with that person’s sex; repeated and intentional use of a name or pronoun inconsistent with the individual’s known gender identity (misgendering); or the denial of access to a bathroom or other sex-segregated facility consistent with the individual’s gender identity.
The EEOC’s updated guidance goes beyond physical workplaces, recognizing the growing importance of virtual work environments. This means offensive behavior on virtual platforms (e.g., Zoom, Teams), such as inappropriate comments or images, now can be considered harassment. The guidance also reaches beyond the traditional workday, acknowledging that even activity on personal social media accounts can contribute to a hostile work environment if it targets a colleague.
Importantly, the EEOC’s new guidance isn’t legally binding, but is meant to serve as a “resource” for employers and the courts. Although the guidance contents “do not have the force and effect of law,” employers should be aware that the new guidelines may lay the foundation for employees to allege workplace harassment in broader contexts, and employers should review their harassment policies in light of the new guidance.
In January 2024, the US Department of Labor (DOL) issued a final rule making it harder for businesses to classify workers as independent contractors under the Fair Labor Standards Act (FLSA). This new, final rule repeals a prior rule (issued by the Trump administration) with a new, less predictable multi-factor test. The new rule uses an “economic realities” test, which considers the following factors:
y The contractor’s opportunity for profit or loss;
y The investments made by the contractor and the putative employer;
y The degree of permanence of the relationship between the contractor and the putative employer;
y The nature and degree of control by the putative employer over the contractor;
y The extent to which the work performed by the contractor is an integral part of the putative employer’s business; and
y The contractor’s skill and initiative.
Some workers may require reclassification from independent contractors to employees, thereby making them eligible for minimum wage and overtime protection (and, in some instances, eligible for employer benefits such as health coverage and/or retirement benefits). As recommended, all employers should review their classification of independent contractors to determine whether any reclassifications are necessary to comply with the new rule.
$4,800 more than average member dues.
amba members saved an average of $6K in mro spend in 2023Get involved to start saving today.
The DOL also increased the minimum annual salary requirements in order to qualify under some of the FLSA’s most frequently invoked exemptions – the executive, administrative and professional (EAP) exemptions, and the highly-compensated employee (HCE) exemption. The final rule took effect on July 1, 2024.
Under the new EAP threshold, effective July 1, 2024, employees classified as exempt under the EAP exemptions must be paid at least $844 per week (or $43,888 per year), marking a 23% increase from the current $684 per week (or $35,568 per year) threshold. The final rule does not stop there, and imposes a new threshold of $1,128 per week (or $58,656 per year) effective January 1, 2025, a near 65% increase from the current threshold. In addition, beginning July 1, 2027, and every three years thereafter, the final rule calls for additional updates to the EAP salary threshold based on then-current earnings data.
Under the new HCE threshold, effective July 1, 2024, employees classified as exempt under the HCE exemption must be paid at least $132,964 per year, up 23% from the current $107,432 threshold. Of that $132,964, an amount equal to the EAP exemption threshold – at least $844 per week – must be paid on a salary or fee basis. And, like the EAP threshold update, the HCE update also comes with forward-looking increases, with an increase to $151,164 on January 1, 2025, and updates every three years beginning on July 1, 2027.
Although adjustments to these salary thresholds have been successfully challenged in the past, employers should prepare with the expectation that the final rule will take effect. As an initial step, employers should review their exempt staff salary levels and understand how these changes may impact their organization.
The fight for a national heat stress standard to protect workers is nearing a critical juncture. A proposed rule by the Occupational Safety and Health Administration (OSHA) currently is under review at the White House, raising hopes for a long-awaited safeguard against a growing threat.
While the specifics of the proposal (RIN: 1218-AD39) have not been made public, OSHA previously indicated that mandatory protections could kick in any time the heat index reaches 80° F.
Absent a formal standard, OSHA currently relies on the General Duty Clause under Section 5(a)(1) to protect workers from heat stress. For example, in March 2024,
A proposed rule by the Occupational Safety and Health Administration (OSHA) currently is under review at the White House, raising hopes for a long-awaited safeguard against a growing threat.
OSHA cited a Florida employer under the General Duty Clause due to employees performing their duties in temperatures ranging from 76° F to 87° F. As noted in the citation, such “exposures are likely to lead to the development of serious heat-related illnesses… such as heat cramps, heat stress, heat exhaustion and heat stroke.”
The citation outlined a plan to prevent future heat-related illnesses and deaths, including:
y Assign a program manager to oversee the program and enforce its protocols.
y Gradually acclimate new or returning workers to hot environments to minimize risk.
y Encourage frequent water intake and provide electrolyte drinks for extended work periods.
y Schedule more frequent breaks in cool, shaded areas during high temperatures.
y Monitor workers for signs of heat stress and remove them from the work area if necessary.
y Train supervisors and employees on heat illness symptoms, risk factors, response procedures and the effects of certain substances in hot environments.
y Develop an emergency plan for remote work locations to ensure prompt medical attention in case of heat illness.
With a new rule from OSHA on the horizon, employers should monitor the heat index for those vulnerable employees, and make sure proper rest and hydration are provided to prevent against heat-related incidents.
In the 1990s, the OSHA ergonomic rules were in major dispute. Before Bill Clinton left office, his administration issued a final ergonomic standard in November 2000, which was to go into effect January 16, 2001, and employers had until October 14, 2001, to comply. Before October came around, however, newly elected President George W. Bush signed a bill repealing the OSHA ergonomic rule.
Although an OSHA ergonomic rule does not exist today, it may come back into light given the newly appointed US Occupational Safety and Health and Review Commissioner Mark Eskenazi, who is a former National Labor Relations Board lawyer. Even if an ergonomic standard never comes to pass, OSHA remains vigilant in protecting workers from musculoskeletal disorders (MSDs) through the General
Duty Clause. Recent citations against nursing homes, manufacturers and even Amazon fulfillment centers demonstrate OSHA’s ongoing enforcement. Indeed, OSHA’s 2023 National Emphasis Program on Warehousing and Distribution further emphasizes ergonomic and heat stress hazards in these facilities.
OSHA emphasizes employers’ responsibility to provide a safe and healthful workplace. Implementing an ergonomic process can significantly reduce MSD risks. Key steps in this process include providing management support; including workers in assessments, solution development and implementation; educating workers about ergonomics and workplace risks; encouraging workers to report MSD symptoms; and implementing solutions like workstation adjustments, proper lifting techniques or breaks to reduce MSD risks.
Just a few clicks and you will find precisely what you need amongst 100,000 HASCO standard components.
Your benefits:
▪ Intelligent product search
▪ Fast mold configuration
▪ Direct interface to most CAD systems
▪ Simple cost calculation
▪ Live access to your quotations and orders
▪ Easy payment options
- Online - Ordering www.hasco.com Toll Free: 877-427-2662
California employers beware! Effective July 1, 2024, Senate Bill 553 strengthens Cal/OSHA’s authority to penalize businesses lacking a Workplace Violence Prevention Plan (WVPP). The law defines four categories of workplace violence and mandates WVPP implementation, employee training and recordkeeping for incidents (minimum five years). Non-compliance can result in hefty fines, ranging from $18,000 for initial violations to over $161,000 for willful or repeated offenses.
Outside of California, OSHA has made protection of employees a priority under the General Duty Clause in Section 5(a)(1). In 2017, OSHA published an updated compliance directive providing OSHA officers with guidance in responding to complaints of workplace violence. To combat workplace violence, employers can establish zero-tolerance policies, conduct workplace assessments to identify risk and implement violence prevention programs with clear procedures and employee training.
For more information about any of the preceding items or to use the membership free legal time benefit through MAPP, contact Alan Rothenbuecher at har@beneschlaw. com/216.363.4436 or Brad Wenclewicz at bwenclewicz@ beneschlaw.com/216.363.6191.
More information: www.beneschlaw.com
HASCO, Fletcher, North Carolina, a supplier of standard components and accessories for the tool and moldmaking industry, has marked its 100th anniversary with a celebration for customers, employees and associates. The celebration took place at HASCO headquarters in Lüdenscheid on June 22, with a time tunnel of past events, large-format screens showing milestones from 10 decades of HASCO history and a plant tour. Christoph Ehrlich, in the presence of the Hasenclever founder family and the management of Berndorf AG (majority owner), welcomed the guests. For more information, visit www.hasco.com
EMUGE-FRANKEN USA, West Boylston, Massachusetts, a manufacturer of taps, thread mills, drills, end mills and other rotary cutting tools, has celebrated its 40th anniversary. In 1984, EMUGE-FRANKEN entered the US with a handful of employees under the name EMUGE. Forty years later, EMUGE-FRANKEN is recognized as a brand in cutting tool innovation, quality and performance throughout a wide range of industries and products across North America, with over 80 employees in the US and Canada. Since then, in 2006 the company constructed a 50,000 sq. ft. facility in West Boylston; in 2015, EMUGE began manufacturing products in the US with the opening of a reconditioning center for its cutting tools; and in 2019 its US headquarters expanded to over 100,000 sq. ft. with the addition of a technology center and manufacturing space. By 2021, the EMUGE Corp. name officially changed in North America to “EMUGEFRANKEN.” For more information, visit www.emuge-franken-group.com
with tool creation for mass production. This strategic shift has resulted in cost reductions for customers exceeding 65% and accelerated manufacturers’ development cycles by up to 90%. For more information, visit www.mantle3d.com
CoreTech System Co., Ltd. (Moldex3D), Farmington Hills, Michigan, a provider of advanced technologies and solutions to meet industrial demands worldwide, has announced two milestones at its Material Center. The first milestone hit was its material database reaching 9,000 materials, enabling customers to access the precise materials needed for their simulations easily. The second milestone for the lab was obtaining re-certification for ISO 17025, an internationally recognized standard for testing laboratories. This re-certification is a testament to the commitment to quality, accuracy and reliability of its material testing processes. For more information, visit www.moldex3d.com
Mantle, San Francisco, California, which designs and produces the only metal 3D printer built specifically for precision tooling, has secured $20 million in funding, which increases its total raised to more than $61.5 million continuing investment into producing millions of end-use parts, ranging from medical devices and deodorant packaging to industrial components. By focusing on printing tools for mass production rather than the parts themselves, the company has tackled the longstanding issues of high costs and lengthy production times associated
Acu-Rite Solutions, Schaumburg, Illinois, a member of the HEIDENHAIN family of brands and manufacturer of precision digital readout and computer numerical systems, has launched a new brand identity. This rebrand includes a modernized logo and a refined name that now highlights “Solutions,” showcasing its commitment to offering comprehensive machining solutions. The rebrand also includes a redesigned website offering an intuitive and user-friendly experience, making it easier to find essential resources across our product range. For more information, visit www.acu-ritesolutions.com.
King Commercial Capital, Auburn, Indiana, offering commercial equipment financing, has launched a new website: Industrial Consumables Finance. The website is to promote its industrial consumables finance solutions, which provide tailored financing for businesses needing quick access to funds and flexible payment terms for consumable purchases. The platform caters to smalland medium-sized manufacturers, enabling companies to maintain production efficiency, respond to market demands and seize growth opportunities. For more information, visit www.industrialconsumablesfinance.com.
By Susan Denzio, business manager, AMBA
The healthcare landscape presents many challenges for business owners and with the turn of a new year, it is likely to become even more difficult. The very purpose of insurance, a mechanism to protect against unforeseen costs, is needed to protect the human capital asset –employees and dependents – from the risk associated with medical conditions. However, for most business owners, navigating through the complexities of healthcare – rising costs, plan structures, evolving trends – is essential to protect the well-being of the workforce and to maintain the company’s competitiveness.
For decades, healthcare has been a benefit of employment from both the employer’s and the employee’s perspective. However, because of the increasing costs, many employers are reassessing the role of being the provider and subsidizer of healthcare benefits. While many employers continue to sponsor healthcare plans, there has been a shift to integrate the value-based care philosophy and motivate employees to shoulder more responsibility - not only for maintaining and improving health outcomes – but also for the associated costs by increasing the employee’s financial contributions.
With the diversity of the workforce spanning different age groups, job roles and health needs, understanding the design and administration of effective insurance plans can be extremely challenging. In addition, the most arduous task can be striking the right balance between comprehensive coverage and the affordability of that coverage.
One of the foremost challenges for business owners is dealing with the relentless rise in healthcare costs. Ask any business leader and it is likely that healthcare costs will be mentioned as the largest employee-related expense. Whether it’s due to advancements in medical technology, increased demand for healthcare services or the inflationary nature of the industry, company executives continue to find themselves grappling to discover solutions to offset escalating expenses.
Understanding risk tolerance is another hurdle for companies offering a healthcare plan. Employers must adopt proactive risk management and cost containment strategies to mitigate the company’s exposure. By reviewing the potential threats and the resources needed to minimize them, an organization can assess what it is willing to tolerate and develop strategies to match.
There are two primary methodologies for funding health insurance and managing the risk or the potential exposure to a company. The first is often achieved by being a part of a large [risk] pool with little control or transparency (fully insured plans). The second is more of a stand-alone program that offers greater control and transparency, along with an increased level of risk (partially self-funded plans).
Fully insured plans protect against loss by capping the company’s overall financial liability; however, this method limits data transparency, the ability to pinpoint root causes of cost escalation and the development of actions to remedy them. Additionally, the fully insured model requires plan owners to prepay for bills that might occur, not for what has actually occurred. For this reason, the fully insured methodology can more accurately be categorized as risk avoidance versus risk management.
To actively engage in managing risk and obtain the benefits of controlling costs, an employer must participate in what is commonly referred to as a partially self-funded program. In this model, the employer covers the costs of medical expenses up to a specific financial limit for each individual while also limiting the financial liability for the sum of all medical expenditures via third-party insurance.
Under the self-insured platform, employers gain access to detailed data about medical claims and are given greater choices in determining the service providers and structure of their health benefits plan. These selections are predicated on
Kruse Analysis provides innovative and full capacity filling-to-warpage CAE simulation services.
Kruse Training is an online interactive training program for part designers, mold designers, and senior process engineers.
Molding Expert is developing the first fully functional virtual reality (VR) mold and molding facility training solution.
tthe overarching goals and objectives of the employer’s own risk management strategy.
There is a strategy (see sidebar on page 28) that offers the best of both worlds – the strength of aggregation with the control and transparency of individual plans –where the approach is to provide accessible coverage when things go bad.
Amidst the obstacles manufacturers encounter through the healthcare maze, there are attainable solutions that can help companies strike a balance between cost and risk. The 2024 Health and Benefits Report, compiled by the American Mold Builders Association (AMBA), the Manufacturers Association for Plastics Processors (MAPP) and the Association for Rubber Products Manufacturers (ARPM), outlines a list of the unique cost containment strategies that have been implemented by manufacturers to combat the escalating costs associated with providing healthcare benefits. Implementing high-deductible health plans and maximizing employee HSA and FSA contributions continue to be advantageous as new approaches for some companies.
As was previously noted, self-funding offers greater control and transparency. This allows employers to gain access to detailed data about submitted claims and the ability to make greater choices when selecting the service providers and developing the structure of their health benefits plan. This is evident in chart 2, as a higher percentage of self-insured manufacturers were able to utilize cost containment strategies compared to those under a fully insured platform.
Furthermore, while most healthcare plans include prescription drug benefits, fully insured plans are not privy to cost containment opportunities because the health insurance carrier controls the contracting arrangements and accepts the entire liability of the health plan, which typically includes Rx. Respondents utilizing a self-funded platform cited a few
strategies specific to minimizing drug costs for both the employee and the health plan.
The cost-savings realized by manufacturers employing any of these tactics are shocking. Specifically noted by a participating employer, between the company and the employees, more than $250,000 was saved - just on drugs –enough to provide local near-site clinic access to its employees at no cost!
The 2024 Health and Benefits Report is available for purchase at www.amba.org/publications. See sidebar on page 28.
At Plastic Engineering & Technical Services, we are.
We define performance. For nearly 30 years, we’ve helped our customers to produce more e ciently, with lower cycle times and lower per unit costs
Our new compact stainless steel, modular unitized system features exible heaters that can be utilized o n multiple designs, so you don’t have to stock custom bent heaters Our new drop heaters provide more uniform heating and feature smaller pockets and no clamps They have in-line ow restrictors
for better process repeatability, and no over-pressurizing the cylinders. It all adds up to a reduced sized hot runner system, shorter heating times and better tool performance
We deliver value. We complement our hardware with leading-edge analytical tools, including Mold ow® and MOLDEX3D so ware. We’ll work with you on design issues and optional gating solutions before the mold or hot runner manifold system is ever built. Use us for the mold ow analysis and the manifold build, and we’ll do whatever it takes to make your hot runner/manifold system work to your complete satisfaction.
We’re committed to your success. Find out more. Call us today at 248.373.0800 or visit us at www.petsinc.net.
The paradigm is shifting as CAPTIV8 is changing the way insurance premium dollars can better serve its members by leveraging the fully insured methodology of pooling with the control and transparency of a self-insured model. This program utilizes a unique contracting approach by putting employer premiums to work for its members, specifically during bad times. The CAPTIV8 program facilitates multiple partially self-funded employers aggregating a majority of the premium for one sole purpose – to be utilized by its members. In the event it is utilized for claims because it is a member premium supporting other members’ needs, the insurance entity (the captive) does not need to recoup the premium as aggressively at renewal. In fact, given the captive premium is going to be returned to the members through either expense reimbursements or profit distributions, there is no need to charge for its use. Instead, the increase associated with the utilization of these premium dollars is directly linked to the forward-looking projection of risk for the individual or group of individuals who generated the claims – not a penalty for using the premium. By sharing the premium, members are insulated from market factors and the pricing of commercial insurance.
More information: sdenzio@firstresourceinc.com
• MOLD FINISHING
• LASER WELDING
• LASER ENGRAVING
• HOT RUNNER REPAIR
• MOLD MAINTENANCE
• LASER MACHINE SALES
er mold finishing, laser welding, laser graving, mold maintenance, and hot runner manifold repair all under one roof. We also manufacture and sell the only fully American made laser welding and laser engraving systems, custom built specifically for your toolroom
Let Alliance make a di erence for you.
EVERY PART OF THIS MACHINE IS EASILY ADJUSTABLE TO ALLOW YOU THE VERSATILITY AND FLEXIBILITY YOU NEED TO MEET ALL OF YOUR DEMANDS
CONTACT US TODAY ABOUT AN IN-HOUSE DEMO, TO SEE THE ALLIANCE DIFFERENCE.
By Omar S. Nashashibi, co-founder, The Franklin Partnership, LLC
What Congress giveth, it can quickly take away. This is the lesson manufacturers are quickly learning. The other hard lesson learned is that the federal government plays an outsized role in a company’s operation – whether the owner likes it or not.
On August 1, 2024, the US Senate failed to secure the 60 votes needed to send President Biden bipartisan legislation to eliminate the requirement to pay taxes on research and development in effect since January 2022. Earlier this year, AMBA successfully lobbied the House of Representatives, which passed the legislation January 31, 2024, by a 357-70 vote.
Had the legislation cleared the Senate, manufacturers would no longer have to amortize their R&D activities over five years, nor capitalize those expenses retroactive to January 1, 2022. The bipartisan bill also restored 100% expensing for capital equipment starting January 1, 2023; the rate fell to 60% this past January and will drop further to 40% next year if Congress does not act.
This is the fundamental concern: Sometimes when government does not act, it can cost manufacturers more than when it does. The failure of the Senate to pass the tax bill this summer means an added six-figure tax liability not anticipated by businesses.
In a 2023 survey of AMBA members, 77% reported conducting R&D activities, with 50% reducing those activities due to the requirement to amortize and pay taxes on R&D. Members stated that they face on average $290,013 in additional tax liability due to the tax on R&D, leading 48% to reduce capital expenditures to pay the added tax liability.
This Congressional inaction harms US small businesses and the American economy. Lack of investment, slowing growth and falling behind China are all the realities now faced. Lawmakers on Capitol Hill are unlikely to make manufacturers whole in any legislation they may move in the lame duck session following this November’s election.
Sources in Washington indicate that if Congress was to move a bill in December, it likely would focus on allowing full expensing for R&D in 2024 and 2025, with the possibility of 100% expensing restored, but also only for those two years. This is increasingly emerging as the bestcase scenario for action on taxes in 2024. The worst case is the status quo – manufacturers continuing to pay taxes on their R&D and bonus deprecation expensing falling to 40% on January 1, 2025.
AMBA members are advised to work closely with their CFOs, CPAs and financial advisors as they enter another tax filing season to act accordingly. While no business should make decisions based on political actions, or in this case inaction, taking a conservative approach to tax planning during these uncertain times likely is wise.
Lawmakers largely have moved on to focus on the fiscal cliff coming in January 2026, when $4.6 trillion worth of tax increases will take effect… if Congress does not act. This reoccurring theme of Congressional inaction costing manufacturers millions is slated to continue past the November election.
Under the Tax Cuts and Jobs Act (TCJA) passed in 2017, not only did the ability to expense R&D activities expire in January 2022, the 20% deduction for pass-through businesses will expire on January 1, 2026. If Congress does
This Congressional inaction harms US small businesses and the American economy. Lack of investment, slowing growth and falling behind China are all the realities now faced.
not act, taxes will increase on owners of AMBA member companies structured as an LLC, LLP, Subchapter S Corporation or other pass-through entity where the owner pays taxes at the individual rate. If Congress does not prevent the 2026 fiscal cliff by passing legislation next year, individual owners of pass-through businesses should expect a return to a top federal rate of 36.9%.
The exemption threshold for the estate tax, also known as the death tax, falls drastically, subjecting countless family-owned small businesses to additional taxes during generational transitions. A number of other tax provisions also expire if Congress does not intervene in the coming year, setting the stage for additional economic uncertainty in 2025, in addition to the unknown outcome of the November 2024 election.
Many Republicans in Washington, D.C. believe that following this election, they will control the White House, the House and Senate, giving them full control over policymaking in the nation’s capital. Party leaders currently are educating their members on what tax changes are possible were they to achieve this outcome.
Sources indicate that Republicans would try to move quickly in the Spring ahead of the debt ceiling showdown expected next summer and would not only extend the TCJA provisions, such as permitting R&D expensing, but also look beyond that law and likely seek to slow or reverse some of the Inflation Reduction Act climate tax incentives.
In the event of a divided government with shared control, a deal on taxes will take considerably longer as the sides are expected to negotiate well into 2025 and possibly not pass a bill until after the $4.6 trillion in tax increases take effect on January 1, 2026. Should Vice President Harris win the White House, her administration likely will seek an increase in the C-Corporation tax rate from the 21% secured under the TCJA in 2017. President Biden’s reelection campaign indicated he would seek a 28% C-Corp tax rate in a second term, with some in Washington speculating that a Harris administration could see a rate at least at that level and possibly over 30%.
Planning for these uncertainties should start now. The AMBA will continue to lobby throughout the remainder of this year on behalf of members to restore the R&D expensing, return bonus depreciation to 100% and provide some certainty on tax policy. This election clearly will determine whether tax rates increase in 2026, and on whom, and whether Washington will create policies to incentivize manufacturing in America.
Far too often, constituencies spend their efforts lobbying government to not take action. In the case of the looming tax increases, the cost of Congressional inaction was made quite clear as manufacturers pay more for investing in their plants, people and this country.
Omar Nashashibi is a founding partner at The Franklin Partnership, LLC, a bipartisan government relations and lobbying firm retained by the American Mold Builders Association in Washington, D.C.
The AMBA 2024 Shop Rate Report which includes average, maximum and minimum shop rate data across moldmaking, engineering and specialty services, now is available at no cost to AMBA participants and for purchase to AMBA membership for $399.
Industry insights and business tips for improved efficiency and profitability also are included in the final document. The report’s release is complimented with the 2024 Shop Rate Data Webinar, an overview with executive insights from AMBA partners Benesch Law and Wipfli, and highlights from the report data.
To purchase the report, visit www.amba.org/publications/ browse. To access a copy of the webinar recording, email info@amba.org or call the AMBA offices at 317.436.3102.
ITR Economics has released its third-quarter report, which covers a comprehensive overview of the economy and an in-depth look at key industry sectors, including trends in consumer pricing, housing construction, US Real GDP, business planning and more. With the help of this report, AMBA members are able to better understand their business performance and opportunities for improved profitability.
To help AMBA members understand the third-quarter report contents, and how its data applies to their individual businesses, Mike Fuez, ITR Economics, provided an in-depth overview during a webinar on August 29.
For more information and to access the webinar recording, visit www.amba.org/events.
Registration now is open for AMBA’s upcoming virtual series on financial literacy. This series, hosted by Michigan CFO & Associates, will provide executives and management teams with a better understanding of how key financial metrics and policies can help them drive
profitability, prepare for unexpected economic conditions, plan for new business opportunities and more. The series will spotlight AMBA members and their experiences in financial planning and will culminate in an in-person session at AMBA Conference 2025.
Register now for the first two webinars:
• Building a Budget to Drive Performance, September 17
• Managing Cash Flow to Eliminate Surprises, November 6
For session details and to register, visit www.amba.org/events
Get involved! To support its recent actions in advocacy and efforts on Capitol Hill, AMBA is seeking examples of US mold manufacturers that have witnessed tariff evasion and/ or transshipment. AMBA understands the sensitivity of this topic and has asked that members interested in sharing anonymously contact the AMBA offices at 317.436.3102 or info@amba.org
This fall, AMBA members across a variety of functional areas will have the opportunity to meet with peers, address challenges and share best practices. There is no better way to spend an hour of time than benchmarking internal company activities against those of one’s peers!
• CNC and Operations, September 19, noon (EST)
• Senior Leaders, October 9, noon (EST)
• Sales and Marketing, October 15, noon (EST)
AMBA members will once again come together to raise money for iWarriors during the 2024 iWarriors Alliance Charity Golf Outing (September 20, Mundelein, Illinois) and the United Tool and Mold iWarriors Golf Tournament (October 25, Fountain Inn, South Carolina). Each golf outing is an opportunity to support the iWarriors community and its mission, which is to assist severely injured members of all branches of the Armed Forces by providing them with personalized tablets to aid in their return, recovery and reintegration. For more information and to register, visit www.amba.org/events.
Justin Gregg has been a cornerstone of Dramco Tool Co., Grand Island, Nebraska, since 2004. Hailing from central Nebraska and growing up on a farm, Gregg’s early experiences fueled his passion for building and fabricating. After completing college, he joined Dramco as an entry-level moldmaker and has since risen to the role of director of mold building. In this position, he oversees all aspects of mold building, including customer relations and quoting. On the AMBA Board of Directors, Gregg aspires to contribute innovative ideas and drive growth for the AMBA and its members, navigating the everevolving tooling industry with a vision for success.
Scott Smith fell in love with moldmaking over 30 years ago and has served the industry ever since. Smith spent 20 years selling tool steel and value-added machining with Sturdell Industries. Following a career in sales and sales leadership, he started his own sales consulting business coaching others on how to sell for themselves. Currently, he works as the operations and managing director of Tessy Tooling, LLC, Erie, Pennsylvania, a sister company of Tessy Plastics. With a strong expertise in sales, operations and the shop floor, he has been able to work with many shops to set their paths from tribal companies to processdriven, manufacturing mold manufacturing operations. During his tenure on AMBA Board of Directors, Smith looks forward to learning, sharing and contributing to the success of this amazing industry.
Elite Mold & Engineering
51548 Filomena Dr. Shelby Township, Michigan 48315
Main POC: Paul Patrash, CEO/owner
Email: paul_patrash@teameliteonline.com
Phone: 586.314.4000
Elite Mold & Engineering, based in Shelby Township, Michigan, specializes in plastic injection mold manufacturing and parts production. With 40 years of expertise and ISO-9001-2015 certification, Elite Mold serves diverse industries including automotive, aerospace and consumer goods, ensuring high-quality, innovative solutions for its clients.
BORIDE’s new comprehensive polishing kit is designed to help brand new polishers and experienced professionals alike to achieve up to a 600 grit finish on their molds and dies with ease!
By Rachael Pfenninger, director of strategic execution, AMBA
In spring 2024, AMBA published its 2024 Health and Benefits Report, where executives and management teams expressed significant concern over rising healthcare and benefits costs. Now, as indicated from the data in the recent AMBA 2024 Shop Rate Report, it looks like this business area was just one cost of many that has considerably risen over the last year.
In short, as one respondent wrote in explaining why the overhead percentage has risen, “The cost of everything is going up… Every. Single. Thing.”
As costs rise across the board, it has become more important than ever for US mold manufacturers to benchmark every financial decision, particularly when it comes to the rates being charged for offered services. To help the AMBA community make knowledgeable, business-driven decisions, AMBA published its 2024 Shop Rate Report with the same trending data as years past, complemented with an increase in expert industry insights and open-response answers.
This year, over 70 US mold manufacturers participated in the survey process for this report, which benchmarks charge rates for services supplied by US mold manufacturers in engineering, moldmaking and specialty services. The majority are located in the Midwest region, specializing in plastic injection molds and produce between one million and 10 million in annual sales revenue.
Overall, when examining charge rates across all industries and annual sales revenue ranges, moldmakers have indicated a rise in shop rates in 2024,
more dramatic than in recent years past. These rate increases could be due to numerous factors. In addition to a late response to last year’s economic conditions – specifically, high inflation rates and rising consumer prices – many executives also point to rising overhead (which rose to 35% this year, see Chart 1 below), labor costs and economic uncertainty due to the coming 2024 US presidential election.
Not all is doom and gloom, however. When specific rates were examined, the 2024 Shop Rate Report highlighted several charge rates that actually fell year-over-year (particularly for unattended services) for the first time in this survey’s history. Additionally, for those concentrating more heavily on specific sectors (conducting 40% plus of their business specifically in automotive, medical/dental/ optical or consumer products), 2024 gross margins rose considerably over 2023 percentages (Chart 2 on page 36).
In addition to the charge rate data provided, key components of this report include the business tips on potential efficiencies and the economic and industry-wide insights supplied by AMBA partners, Wipfli and R.E.R. Software. Within these insights, recipients of the 2024 Shop Rate Report are able to glean more perspective on current industry trends, how those trends may impact rates in the coming months and the ways in which domestic
Private bonus plans provide strong incentive for top team members to remain with your business — while also helping you stand out among other employers.
MUTUAL COMPANY DIRECT CLAIMS REPRESENTATIVES 500+ EXCLUSIVE ASSOCIATION RECOMMENDATIONS ESTATE PLANNING ATTORNEY NETWORK ANNUITIES
WE’RE BETTER TOGETHER LIFE AND DISABILITY INCOME KEY PERSON COVERAGE WORKERS COMPENSATION HIRING PRACTICES FEDERATED DRIVESAFESM TELEMATICS SOLUTION RISK MANAGEMENT RESOURCE CENTER EMPLOYMENT RELATED PRACTICES LIABILITY
EMPLOYMENT LAW ATTORNEY NETWORK
BONDING EMPLOYEE SAFETY TRAINING
RISK MANAGEMENT ACADEMY
CLIENT CONTACT CENTER
FIELD RISK CONSULTANTS
CERTIFICATE CENTER
SURETY SPECIALISTS MANAGED CARE CYBER IT’S OUR BUSINESS TO PROTECT AMBA MEMBERS
mold builders can implement efficiencies to offset uncertain economic conditions and prepare for technological advances.
While increasing charge rates, rising costs and economic certainty paint a challenging landscape for the domestic mold building industry, respondents did report some optimism. Although current capacity utilization is hovering around 71%, respondents reported an anticipated rise of 3% in the coming months, likely in hopes that customer projects currently on hold will be released soon.
members in good standing with the association. * Those who purchase the report or participated in its data collection also will have access to a recording of the 2024 Shop Rate Data and Economic Trends Webinar.
To learn more and purchase AMBA’s 2024 Shop Rate Report, visit www.amba.org/publications/browse. This annual report is available for $399 only to current AMBA
*Non-members interested in joining the AMBA so that they may access the report can contact the AMBA offices at 317.436.3102 or info@amba.org
By Dianna Brodine, vice president, editorial, The American Mold Builder
Moldmaking operations are creating products for every industry – automotive, electronics, appliance, food packaging, toys, promotional materials, medical and so much more. After the Great Recession in 2008, most processors have moved to a business model where they no longer specialize in production for one market but instead function within multiple markets. That’s good insurance if a certain market is down for a quarter or two, but it does make it more difficult to stay on top of the activities within each of the very different, very dynamic industries for which a company might be molding.
Books are the typical focus of this column but aren’t timely news sources when markets are changing quickly. Instead, tune into these podcasts to get an overview of the business developments, technology advances and critical issues in the industries for which your companies make their products. Find these at a variety of podcast outlets, including Apple Podcasts, Spotify, Amazon Music and more.
Automotive industry expert Jason Stein presents a podcast focused on the automotive industry. It launched in 2022 and covered various industry topics, trends and projections that are impacting the future of automotive. Jason will interview some of the industry’s key thought leaders and industry insiders.
Recent podcast: Creating a Leaner, Resilient Supply Base
Circular packaging can offer not just a solution, but an opportunity to also ensure leaner and more resilient supply chain operations. On this episode of Automotive Insiders, host Jason Stein interviews Patrick Mahoney, Director of Automotive North America for CHEP.
The editors of Airline Weekly discuss the most interesting developments within the commercial airline industry. In keeping with Airline Weekly’s style, conversation generally
centers on one question: How do you make money in this industry?
Recent podcast: More Headwinds for Southwest Airlines
In part one, Gordon Smith and Jay Shabat discuss why Southwest has cut its revenue outlook for the current quarter. In part two, we take stock for our Airline Weekly mid-year review, and ask what the coming six months could hold.
This is a podcast where we illuminate the stories of people in the packaging industry, covering a wide range of packaging subjects including sustainability, design, and sourcing.
Recent podcast: Colorado EPR and the Sustainability of Aluminum Cans: A Discussion with Cory Connors
In this episode, we have Cory Connors, the Director of Sustainable Packaging at Orora Packaging Solutions. Cory brings his expertise from the sustainability hub at the NPE show, contributing valuable insights on the latest trends in sustainable plastics and recycling practices.
The Global Medical Device Podcast, powered by Greenlight Guru, is where today’s brightest minds in the medical device industry go to get their most useful and actionable insider knowledge, direct from some of the world’s leading medical device experts and companies.
Recent Podcast: Is It Possible to “Buy” a QMS?
In this episode, Etienne Nichols engages with Sara Adams to discuss Quality Management Systems (QMS) in the medical device industry. The discussion unveils the complexities and common misconceptions surrounding QMS, and Sara shares her extensive experience with FDA inspections and audits, emphasizing the essential, tailored approach needed for effective quality management.
By Rachael Pfenninger, director of strategic execution, AMBA
In June 2024, up-and-coming emerging professionals joined one another in St. Joseph, Michigan, for the 2024 Emerging Leaders Leadership Retreat. This twoday, professional development event was an opportunity for emerging leaders in the AMBA community to network with one another, tour a top-tier AMBA member facility and engage in an in-person workshop with Purdue Manufacturing Extension Partnership facilitator Michael Wiseman.
The event kicked off with a plant tour workshop at Hanson International (St. Joseph, Michigan), where HR Director Baylee Boyer and President Julie LaVanway guided attendees through the cultural elements and technology investments that set Hanson International apart from its competitors. When asked to what the company credits its recent success (the company, most recently, celebrated its second-best quarter in company history), both Boyer and LaVanway highlighted the focus on continuous improvement, the efficient processes that have been put in place and, most importantly, the team environment and significance placed on each individual employee and his/her development.
Following the plant tour, attendees engaged with Senior Productivity Specialist Michael Wiseman of the Purdue Manufacturing Extension Partnership, who highlighted how effective leadership can drive and leverage team development, cohesion and employee engagement to impact organizational health and bottom-line profitability. Workshop content explored how emerging management professionals can cultivate the leadership
skills necessary to support similar results in their company environments.
During the workshop, attendees learned the following:
• How “teams” are defined and related considerations.
• The stages of a team and appropriate leadership actions for each.
• Common team roles and their connection with leadership.
• Leader behaviors that drive effective teamwork.
• Strategies to build an effective team.
• An individualized plan for hands-on application with steps to practice and develop key teambuilding skills.
Finally, to wrap up the Leadership Retreat, attendees joined Dean Dave Krueger, Career and Workforce Education, Lake Michigan College, for a tour of the Hanson Technology Center (HTC). At this facility, students in the technology programs learn their skills on state-of-the-art equipment.
The HTC features labs and equipment for the study of robotics, CNC, welding, mechatronics and more. The space also features The Fab Lab, an area open to the public where community members can bring their ideas to life with 3D printers, laser cutters, shopbots and other high-tech tools.
“We were thrilled to host the AMBA Emerging Leaders group for a tour of the facility,” stated Krueger. “It’s exciting to show off the custom apprenticeship programs we’ve developed, like the ones we have with Hanson International and other manufacturing facilities, and the community relationships we’ve built. We hope that this draws more interest not only to our facility, but also highlights the role that community training and development can play in supporting the longevity of the US mold manufacturing industry.”
AMBA Emerging Leaders will have an opportunity to learn alongside peers again in 2024 during an upcoming virtual series. For session details, dates and registration information, visit www.amba.org/events
Photos courtesy of Jimmy Renallo, Creative Techology.
During the AMBA Emerging Leaders Leadership Retreat Workshop, Wiseman emphasized that leadership styles affect the teams being managed, and a key facet of any leadership style is one’s ability and willingness to delegate.
Each attendee was provided with a list and scoring system that measured delegation ability, asking key questions such as the following:
• What parts of a job are you willing to delegate?
• How does delegating impact your enjoyment at work?
• Do you worry about how well a task will be done when you delegate it?
• When does your boss’ management style impact your willingness to delegate tasks?
With an instrument like this scoring system, attendees were able to better identify the excuses new managers often give for failing to delegate and the ways in which they can better lead and improve the performance of their team.
Services
• Finishes to all SPE-SPI standards
• Diamond Lapping
• Textured Surface Prep Benching
• Quoting from Drawings, Prints, Pictures and Parts
• On-Site Support
Capabilities
• 50+ Polishers
• 40 ton Capacity
• 24 hours – 7 days Pick-up and Delivery
• 3-D CAD File Capabilities
Partnerships
• Welding
• Plating
• Texturing
847-352-4052
By Sinead Ross, director of marketing, Titan Energy
In the United States, industrial buildings contribute to onethird of total energy consumption, yet a majority lack an implemented energy management strategy. The primary source of energy consumption in industrial buildings is production-related, with costs determined by regional and local utility companies passing on rising power generation costs to industrial ratepayers.
The growing industrial energy use strains an already faltering grid system, and utilities and building operators need to work together to find savings in energy demand and costs. Successful building operators navigate market shifts by focusing on long-term energy cost control and leveraging available utility programs to reduce on-site energy needs.
Implementing a well-crafted energy management strategy results in lowered costs and operational efficiencies for industrial building operators. This article delves into specific actions that can be taken to establish an energy management strategy, featuring client stories.
When devising an energy procurement strategy, industrial facilities often find tracking energy commodities opportunities increasingly challenging. Over the past three years, natural gas and electricity prices have been extremely volatile, with prices hitting record lows and highs with no sign of normalizing. This type of energy market is prompting industrial managers to seek ways to mitigate risks. In deregulated commodity markets, manufacturers can access products to lock in natural gas and electricity costs for the long term, ensuring immediate savings and longterm budgetary certainty.
The 2022 Inflation Reduction Act (IRA) extended the Investment Tax Credit (ITC) for on-site generation projects enabling industrial facilities to install solar, battery storage, co-generation and fuel cell plants. These projects can be
owned by the facility or third-party owned with lowered fixed costs for 20-30 years and no upfront cost.
Local and regional utilities offer rebates and incentives promoting the purchase of energy-efficient appliances, equipment and fixtures. These incentives can cover up to 100% of project costs and may be financed at a fixed 0% rate for eligible ratepayers. The goal of these programs is to lower demand on the grid while improvements are made for the future.
Utilities invite large power users to participate in grid demand programs in return for revenue. Industrial facilities can take advantage of lower capacity demand during peak hours in the summer, shifting work hours to accommodate peak demand without affecting productivity. Incorporating on-site emergency backup, such as a battery storage unit, makes manufacturers integral to local grid operations, enhancing grid resiliency by reducing the likelihood of brownouts and blackouts.
Administrators can effectively manage and visualize energy usage and spending by implementing an energy data platform integrated with their utility invoicing system. Low-cost, automated subscription services collect utility bills across electricity, natural gas, water and recycling, conducting audits on invoices and benchmarking energy
The growing industrial energy use strains an already faltering grid system, and utilities and building operators need to work together to find savings in energy demand and costs.
use, sustainability and emissions data. This capability allows for data-driven decisions regarding production by sorting and filtering based on location, business unit and cost center.
Titan Energy has worked with companies facing energy challenges.
An international manufacturer needed to pay closer attention to each of its production sites to meet cost-saving targets, mitigate risk and help enhance a centralized energy procurement approach. Previously, the manufacturer’s energy accounts were contracted on a one-size-fits-all energy procurement approach, but a comprehensive utility bill audit helped establish a solid baseline understanding of the benefits and risks of each energy market and led to an expansion of its network of top energy suppliers across diverse deregulated energy markets.
A request for proposal was issued on the customer’s behalf, negotiating the most competitive rates, simplifying the legal review process and onboarding the client onto a data management platform to track costs and savings. A fixedrate product was locked in for several years, offering both immediate savings and protection against any future market pricing shifts.
This paid off for its Texas location when February 2021’s polar vortex brought record-cold temperatures to a significant part of the Midwest and Texas. The additional heating demand and transportation issues created scarcity in the natural gas market, skyrocketing natural gas and electricity prices. During this polar vortex, the manufacturer was protected from any market exposure because of the fixed-rate product. Instead of paying an escalating $12.50/ kWh (a >300% increase), the client kept paying $0.04/kWh and avoided a $5,000,000 February bill.
Sinead Ross is the director of marketing at Titan Energy. In operation since 2001, Titan Energy is an independent energy management consulting firm that creates comprehensive energy management strategies backed by data to control and reduce energy costs. For more information, call 860.967.1611, email sross@titanenergyne.com or visit www.titanenergyne.com.
Reprinted with permission from Plastics Decorating (www.plasticsdecorating.com).
SEPTEMBER
IMTS 2024, September 9-14, Chicago, Illinois, www.imts.com
Building a Budget to Drive Performance Webinar, September 17, www.amba.org/events
Peer Networking – CNC and Operations (Virtual), September 19, www.amba.org/events
OCTOBER
Senior Leaders Peer Networking (Virtual), October 9, www.amba.org/events
Sales and Marketing Roundtable Discussion (Virtual), October 15, www.amba.org/events
MD&M Minneapolis/Plastec MN, October 16-17, Minneapolis, Minnesota, www.advancedmanufacturingminneapolis.com
2024 iWarriors United Tool and Mold Charity Golf Outing, October 25, Fountain Inn, South Carolina, www.amba.org/events
NOVEMBER
Managing Cashflow to Eliminate Surprises Webinar, November 6, www.amba.org/events
Peer Networking – CNC and Operations (Virtual), November 14, www.amba.org/events
DECEMBER
Business in 2025: Outlook and Insights Webinar, December 10, www.amba.org/events
