FALL 2021
THE INTERNATIONAL MAGAZINE OF SPRING MANUFACTURE
A Publication of the Spring Manufacturers Institute / Vol. 60, No. 4
Help Wanted: The Search for Missing Workers......26 Where Are All the Workers?......28 Cybersecurity: How to Counter Fraud in a Digital World......36 To Screen or Not to Screen?......44
Missing Workers
SMI eXpo Postponed: Plans Underway for a Bigger and Better Event in 2023......32
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President’s Message From Bert Goering
Turning the Corner When I wrote my original message for this space earlier this summer, vaccination rates were on the rise and it appeared that we had reached the turning point of what had been a long COVID corner. The Merriam-Webster dictionary defines ‘to turn the corner’ as “to get past the most difficult area or period in something and begin to improve.” For those of you who took time to read my message that was sent to all SMI members in mid-August, you learned that we had not quite gotten past the most difficult part of COVID. So it was with sadness that I announced the difficult decision to pump the brakes on the 2021 SMI Metal Engineering eXpo (SMEE) in Las Vegas and postpone it until 2023. After having so much of our lives interrupted due to COVID-19, there was a pent-up demand to gather for a much overdue industry event that would feature cutting-edge business and technical education, numerous opportunities to network with industry colleagues and a venue to showcase the latest offerings and solutions from our associate members. Postponing the show was a difficult decision for the SMI Executive Committee and was due to many factors, some of which included: 1. The health and well-being of all our members, attendees and exhibitors during these unprecedented times. This was reflected in underwhelming show registrations and a decline in the availability of speakers to attend, and the difficulties many exhibitors were experiencing to either get the desired equipment and/or support staff to Las Vegas. 2. A delta variant that has once again put our global community back to travel restrictions and quarantine requirements. Our initial plan to hold our trade show and educational symposium, in conjunction with the U.S. hosting the ongoing ISO TC 227 meetings, was derailed by the recent ISO mandate that all ISO meetings were to remain in virtual mode for the time being. 3. To support the ability of our associate members to maximize the exposure of their services and offerings across the U.S. Our associate members partnered with us from the start on the concept of SMEE being held across the country, and invested heavily to make these shows successful. As we listened to the concerns of our partners and digested the reality of the negative ROI for all of us, their feedback was clear to us that it was most prudent to pause the 2021 event and not blindly forge forward to hold a show where all signals were as red as a stop sign. While disappointed to postpone the 2021 event, we are excited for the opportunity to have the worldwide spring industry join us in 2023. We plan to invite the ISO TC 227 group to come to the U.S. in 2023 so we can host their meeting. Plus, our European and Asian counterparts who are members of the VDFI, JSMA and ESF are eager to join us. We still believe the eXpo is the best place to connect with our valued suppliers, learn from industry leaders, and network with industry peers. Please join us in Vegas in 2023, where we can finally toast together this ‘turning of the corner.’ Cheers! Bert Goering
2 / SPRINGS / Fall 2021
SMI Executive Committee President: Bert Goering, Precision Coil Spring Vice President: Gene Huber, Jr., Winamac Coil Spring Secretary/Treasurer: Don Jacobson III, Newcomb Spring At Large: David DeVoe, Plymouth Spring Past President: Steve Kempf, Lee Spring Executive Director: Lynne Carr, SMI
SMI Board of Directors Jennelle Carlier, S3 Wireform • Kelley Christy, Diamond Wire Spring • Dave Deerwester, The Yost Superior Co. • Joe Devany, Betts Company • Chris Fazio, Diamond Wire Spring • Linda Froehlich, Ace Wire Spring & Form • Brett Goldberg, International Spring • Agustin Estalayo Ibanez, RPK Mexico SA de CV • Don Lyons, JonSpring • Peter Mendel, Kern-Liebers USA • Rob Meyers, RK Trading • Alex Melnikow, Midstate Spring • Tony Pesaresi, Winamac Coil Spring • Daniel Pierre III, JN Machinery • Keith Porter, Newcomb Spring • Chris Witham, Motion Dynamics Corp. • Tim Zwit, Michigan Spring and Stamping
Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Lisa Plefka Haskin, Art Director, lisahaskin95@gmail.com
Springs Magazine Committee Chair, Keith Porter, Newcomb Spring • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Ritchy Froehlich, Ace Wire Spring & Form • Tim Weber, Forming Systems • Europe Liaison: Wolfgang Herrmann, VDFI • Technical Advisor: Dan Sebastian, Honorary Member Advertising sales - Japan Ken Myohdai, Sakura International Inc. Head Office: 3F,4F, ENDO Sakaisuji Bldg., 1-7-3, Bingomachi, Chuo-Ku, Osaka 541-0051, Japan Phone: 81-6-6624-3601 • Fax: 81-6-6624-3602 Tokyo Global Office: 5F Kamei No. 2 Bldg., 2-17-13, Kiba, Koto-Ku, Tokyo, 135-0042, Japan Phone: 81-3-5646-1160 • Fax: 81-3-5646-1161 E-mail: info@sakurain.co.jp Advertising sales - Europe Jennie Franks, Franks & Co. 63 St. Andrew's Road Cambridge United Kingdom CB41DH Phone/Fax: +44-1223-360472 E-mail: franksco@BTopenworld.com Advertising sales - Taiwan Robert Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, Taiwan Phone: +886-4-2325-1784 • Fax: +886-4-2325-2967 E-mail: stuart@wwstaiwan.com Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 495-8588; Web site www.smihq.org. Address all correspondence and editorial materials to this address. The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication. The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability. The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention. Do not reproduce without written permission. Cover designed by Lisa Plefka Haskin utilizing Shutterstock photographic imagery.
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Contents Missing Workers 26
FEATURES
COLUMNS
26 Help Wanted: The Search for Missing Workers
15 Be Aware Safety Tips
By Gary McCoy
28 Where Are All the Workers? By Mark Battersby
32 2021 SMI eXpo Postponed By Gary McCoy
36 Cybersecurity: How to Counter Fraud in a Digital World
Advances in Springmaking Materials — Part 2: Rod Rolling By C. Richard Gordon
19 Dean of Springs
25 Spring Design Tips and Tricks
What Are the Causes of Spring Tolerances? By Dan Sebastian
By Phillip M. Perry
DEPARTMENTS
44 To Screen or Not to Screen?
2 President’s Message
By Elizabeth McLean
Turning the Corner
7 Global Highlights 12 Regional Spring Association Report
21 Technically Speaking
How Much Can an Employee Safely Lift? By Laura Helmrich-Rhodes
34 Flashback
Achieving the Extraordinary in an Ordinary World
47 Five Questions
RK Trading Company
Items You May Have Missed in ASD7 By Gary Van Buren
49 Springmaker Spotlight
Partnership: A Profile of Apex Spring and Stamping Company By Gary McCoy
57 Book Corner 59 CTE News 61 Inside SMI 63 Committee Connection 65 New Products 67 Advertisers’ Index 68 Snapshot
Andy Pesaresi, Winamac Coil Spring
4 / SPRINGS / Fall 2021
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Global Highlights North America
10.88”
WAFIOS AG has announced the appointment of Markus Arnold as the new managing director for its American subsidiary, WAFIOS Machinery Corporation (WMC). Arnold replaces David Purcell, who died after a tragic accident in April 2020. In making the announcement, WAFIOS executive board spokesman Dr. Ing. Uwe-Peter Markus Arnold Weigmann noted that Arnold is an experienced manager from the parent company. “He knows the company well, identifies with WAFIOS AG, knows the corporate philosophy and comes with a good in-house network of contacts,” said Dr. Weigmann. Dr. Weigmann said the appointment of the new managing director was delayed by the coronavirus pandemic. He said the interim management of the parent company, in cooperation with the management in the U.S., was able to bridge this period well. Arnold joined WAFIOS AG in 2011 and has extensive experience in various positions, most recently as head of the Tool Center at the company’s headquarters in Reutlingen, Germany, making him well acquainted with the WAFIOS product line. Arnold was scheduled to relocate to Connecticut with his wife, Lucy and their three daughters, Martha, Elena, and Lowenna in the summer of 2021, and to assume active management at the Branford, Connecticut headquarters of WMC beginning in September. “I‘m excited to join the great team of passionate people at WMC serving the wire and tube industry across North America,” said Arnold. The National Association of Manufacturers (NAM) and The Manufacturing Institute (MI)—the workforce development and education partner of the NAM—have created many episodes in its Creators Wanted virtual series. A recent episode, “A Family Tradition: Building a Legacy in Manufacturing,” highlighted how family-owned businesses are the heartbeat of manufacturing in America. The episode explored how manufacturing businesses passed down through generations have helped to shape the industry and how family-run businesses continue to invest in their workers to build momentum for the future.
“So much of manufacturing in America is about family— not just the generations of owners and workers, but also the relationships built on shop floors or after the workday ends,” said MI executive director Carolyn Lee. “I was raised in one of those families, seeing from a young age that manufacturing can have a tremendous positive impact on communities and the men and women who help build them. The potential and opportunity that manufacturing produces is what drives our work every day, so this episode is very close to my heart.” To view the latest videos in the series, visit the NAM’s YouTube channel, at live.creatorswanted.org and through the MI’s Facebook, Twitter and LinkedIn pages. For more information on the manufacturing industry and exciting career paths, visit www.nam.org or www.themanufacturinginstitute.org. Capstone Partners, a leading middle market investment banking firm, released its July 2021 Precision Manufacturing Industry Update, reporting that the precision manufacturing industry has continued to recover after enduring unprecedented supply chain disruptions, volatile raw material prices, and depressed demand associated with instability in downstream markets due to COVID-19. Precision manufacturers that have demonstrated resilience throughout COVID-19 are expected to benefit from galvanized demand as the pandemic continues to subside. “Companies that have proprietary capabilities and provide critical roles within their client's supply chains remain in strong demand and are likely to command premium valuations. End market outlook is also critical, and for many it was temporarily masked in 2020,” said Capstone managing director Ted Polk, a lead contributor in the newly released report. Also included in this report: • An exclusive interview with Kyle O’Meara, vice president of corporate development at MW Industries • Why merger and acquisition (M&A) activity has surged in 2021 • How the recovery of advanced end markets will impact demand for precision manufacturing services and engineered components • How precision manufacturers are improving supply chain visibility To access to full report, see https://www.capstonepartners.com/ insights/precision-manufacturing-july-2021/.
SPRINGS / Fall 2021 / 7
Global Highlights
International
Alloy Wire International (AWI) is celebrating 75 years of manufacturing in 2021 and has plans in place to take sales past pre-COVID-19 levels to £12m by the end of the year. The company, which employs 30 people at manufacturing sites in the West Midlands and Yorkshire, England, is also looking to mark the milestone year by launching ‘Wired for Good,’ a campaign that will see it boost its work supporting local charities and, importantly, committing to becoming carbon neutral. This means all manufacturing, deliveries and even employee commuting emissions will need to be offset. The firm has partnered with a number of specialist organizations to achieve this,
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with the focus on woodland creation, solar/wind and sustainability projects. Mark Venables, managing director of AWI, commented: “Seventy-five years in business is a major achievement and the last 12 months have certainly been some of the most challenging yet, with our staff going above and beyond to support the global fightback against the pandemic. “Despite the challenges, sales have held up well and demand across 15 key market sectors have surged since January 2021, and this bodes well for our big anniversary year.” He continued: “We’ve got some really big plans for our birthday celebrations, including a £1million investment in new wet drawing machines and increasing our stockholding to 220 tonnes, the latter meaning we are able to offer our unrivalled two-week industry lead times. “We also wanted to do something different that makes a positive social difference. With sustainability on many people’s agenda, we felt the time was right to become ‘carbon neutral,’ a significant commitment when you consider we produce wire and export to over 65 countries. “’Wired for Good’ will govern all of our 75th activities and we’re looking forward to announcing more positive projects in the coming weeks.”
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Global Highlights
Alloy Wire International, which manufactures round, flat and profile wire for more than 5,000 customers, was founded in 1946 by John Stockdale in an old ambulance station in Old Hill in the Black Country. The company’s founding principles of ‘manufacturing quality, delivering reliability’ has stood the test of time and still remains a crucial part of how it deals with its global client base, spanning automotive, aerospace, medical, nuclear and oil and gas. The Japan Society of Spring Engineers (JSSE) held its semiannual Lecture Meeting, including a poster session, via online by Zoom platform June 8. Eight general lectures were presented prior to the meeting via network to 120 applicants, including 92 participants to the Question-and-Answer session, via online through Zoom. Before the opening speech, an expression of condolences to Dr. Satoshi Nishijima, an honorary president of JSSE, was delivered by Dr. Yuji Nakasone, a former JSSE president and a professor at Tokyo University of Science. The opening speech was presented by Haruhiko Shiba, a vice-chairperson of JSSE in charge of research activities and a managing officer, member of the board of Chuo Spring Co., Ltd. Titles of general lectures and presenters included: 1. “Influence of iron carbide on mechanical properties in high silicon-added medium-carbon martensitic steels,” by Dr. Shinya Teramoto of Nippon Steel Corporation.
2. “Variation of correction factors for stress intensity factors with wrapping location in compression coil springs,” by Dr. Yuji Nakasone of Tokyo University of Science. 3. “Coil spring made of SMA wire with rectangular cross section for artificial muscle,” by Toshiya Ishikawa of Kaneko Cord Co., Ltd. 4. “Effects of manufacturing condition on degradation characteristics of single coiled torsion springs using shape memory alloy wire,” by Dr. Akira Tanikata of University of Kitakyushu. 5. “Improvement of Cr-Mo steel surface strength and corrosion resistance by multifunction cavitation processing,” by Takayuki Ogi of Sanyo-Onoda City University. 6. “Effect of cavitation processing using chemical conversion treatment on magnesium alloy surface,” by Fumihiro Kato of Sanyo-Onoda City University. 7. “A new method for microstructure evaluation of steel by kelvin probe force microscopy,” by Yuta Honma of Japan Steel Works M&E, Inc. 8. “Causes of changes in elastic modulus due to wire drawing of stainless-steel wire and changes in coil diameter by low temperature annealing,” by Hiroaki Hayashi of Suzuki-Sumiden Stainless Wire Co., Ltd. Six technical posters were displayed also over network prior to the meeting. Answer sessions were held by a representative
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SPRINGS / Fall 2021 / 9
Global Highlights
of each poster based on questions collected via network. The top two posters were selected based on the participants’ voting. The First Place Poster: “Fatigue limit estimation for carburized steels considering relaxation of compressive residual stress during fatigue process,” by Kenta Minamizawa et al. of Shizuoka University. Second Place Poster: “Influence of shot diameter on fatigue strength of spring steel subjected to shot peening,” by Ryota Kondo et al. of Yokohama National University. The lecture meeting concluded with a closing speech delivered by Dr. Masao Hayakawa, a chairperson of JSSE and a chairman of the Researcher of National Institute for Materials Science. Additionally, a technology exchange meeting was held online via Zoom with 27 participants. Dr. Mitsuo Notomi, a vice chairperson of JSSE and a professor at Meiji University, made the opening speech. This was followed by two guest
speeches, Dr. Koichi Tsuchiya, a chairperson of Association of Shape Memory Alloys (ASMA) and a chief of National Institute for Materials Science, and Masahiko Nakatani, executive director of the Japan Spring Manufacturers Association (JSMA). The 12th WireShow, China International Wire and Cable Industry Exhibition, will now be held at the Shanghai New International Expo Centre (SNIEC) November 25 - 27, 2021. Originally scheduled for August 2021, the trade fair was postponed due to the pandemic-related restrictions in Shanghai. The WireShow is a purely national event and focused on the Chinese cable and wire industry. For further information on visiting or exhibiting at WireShow 2021, contact Messe Düsseldorf North America at 312-781-5180; e-mail: info@mdna.com; visit www.wireshow. com and www.mdna.com; and follow us on Twitter at http:// twitter.com/mdnachicago.
Obituary
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SMI mourns the loss of Hans Joachim Guenther of Hull, Georgia, age 93, who died peacefully at home Thursday, June 24, 2021, surrounded by his family. Guenther was born March 23, 1928, in Pegau, Germany. He was the son of the late Emil Wilhelm Gunther and Martha Gunther Kupfer. He was predeceased by his wife Betty Jean Guenther, his stepson Leslie Neal and stepson-in-law Dave Sandridge. Guenther retired in 2004 from Peterson SpringGeorgia Plant on Old Hull Rd, Athens, Georgia after 37 years as the company’s president and general manager. Guenther is survived by his two daughters: Gisela (Hal) Hodgson and Christine (Scott) Alexander; stepchildren, Marsha Sandridge and Gregory M. (Pam) Neal; grandchildren, David Sandridge (Cassey), Sara Hodgson Roper (Lucas Reader), Matthew Sandridge, Stephen Sandridge (Alison), Harold (Beau) Hodgson (Jamie), Cindy Hodgson LeMaster (Dallas), Rachel Neal Mattingly (Josh), Justin Neal (Emily) and Emily Alexander; and 12 great-grandchildren. The family thanks Guenther’s caregivers for their wonderful care and concern, Adeanna Evans, Carolynn Allen, Gerlynn Brown and Norita Priester. A memorial service was held July 3. In lieu of flowers, please make a donation to Kindred Hospice, 575 Research Dr., Unit A, Athens, Georgia 30605 or a charity of your choice. n
©iStockphoto.com/Scott Hirko
Regional RegionalSpring Spring Association AssociationReport Report CASMI Report By Michael Bandy, CASMI, Co-Executive Director
SpringWorld 2022 Kickoff Dinner
Upcoming CASMI Events
The Chicago Association of Spring Manufacturers, Inc. (CASMI) invites all CASMI members, SpringWorld 2022 exhibitors and suppliers who are considering exhibiting to attend the SpringWorld 2022 Kick-off Dinner Thursday, Oct. 21, 2021, at Maggiano’s in Schaumburg, Illinois. The event will feature an update on the 2022 SpringWorld trade show, to be held Oct.12-14 at the Donald E. Stephens Convention Center in Rosemont, Illinois, the opportunity to secure exhibit space,
CASMI has the following events scheduled for the remainder of 2021. Details will be available on the organization’s website before each event. • SpringWorld Kick-off Dinner, Oct. 21, 2021, Maggiano’s, Schaumburg, Illinois • Membership Dinner Meeting, Nov. 11, 2021, Cooper’s Hawk, Orland Park, Illinois • Annual Holiday Party, Dec. 9, 2021, Cooper’s Hawk, Arlington Heights, Illinois
network with industry colleagues, and a dynamic speaker. Avish Parashar will present “Ding Happens!” This presentation provides attendees the tools and motivation to embrace change, rather than fear and resist it, and it gives leaders the skills to manage and help their teams improvise, adapt and innovate in an ever-changing world. Details and registration for this event are available on the CASMI website, www.casmi-springworld.org.
CASMI Hosts Golf Event at Bridges of Poplar Creek CASMI hosted its 2021 Golf Outing June 16 at Bridges of Poplar Creek Country Club, Hoffman Estates, Illinois. It was a beautiful day as nearly 100 CASMI members and SpringWorld exhibitors took part in the 18-hole, best-ball tournament and dinner. The event included lunch for golfers, and the tournament was followed by a reception, dinner and the presentation of awards. Awards were presented for the first and second place teams in two divisions (four total), as well as closest to the pin, longest putt and longest drive.
12 / SPRINGS / Fall 2021
Additionally, three “wine and beer” gift baskets were raffled off as door prizes. CASMI designated charity support to Chicago Veterans, a nonprofit community of military veterans who share a common passion for helping fellow veterans, whether it is veteran homelessness, PTSD awareness, trauma, benefits or camaraderie building. Participants contributed $1,145 for the day to support this worthwhile cause. CASMI’s 2022 Annual Golf Outing will be held Thursday, June 16, returning to Bridges of Poplar Creek Country Club.
Regional Spring Association Report
NESMA Midyear Update By Lucas Karabin, Acme Monaco The New England Spring and Metalstamping Association (NESMA) has been working to ensure the transition from dormant areas of our organization to live events. Although last year we did have a few in-person events, we had hoped to resume these with our Aug. 23 golf outing. Due to heavy rains from tropical storm Henri, the golf outing was postponed and will now be held Tuesday, Oct. 5. It is presently expected to draw many new sponsors who have some wind at their back, as all companies report strong order backlogs. The golf event is at Chippannee Country Club in Bristol, Connecticut. Our next major event is our annual Holiday Party at the DoubleTree in Bristol Dec. 2, 2021. This past spring, we awarded our annual scholarships to Erin Klum, a recent graduate of Southington High, and Alyssa Lavoie, currently enrolled at Quinnipiac University in Hamden, Connecticut. We are proud to award scholarships and make them available to children or grandchildren of member companies. Each student will receive $1,010.00. A technical seminar on “R&D Tax Credits” was provided by Marcum Accountants and Advisors. Ted Lucas,
Former wood shop converted to Manufacturing, Engineering & Technology (MET) Academy at New Britain (Connecticut) High School.
board member and treasurer, introduced guest speaker Bill Kuhlman via Zoom. Kuhlman explained the fine details of the R&D tax credits and practices manufacturers can follow to take advantage of such programs. If you have questions regarding the services provided by Marcum to claim R&D tax credits, email William.Kuhlman@marcumllp.com. NESMA has held on to voting rights on the Connecticut Manufacturing Collaborative. This is made up of the leading
manufacturing groups representing various industries such as tooling, aerospace, small manufacturers and springmakers. This intense group provides direct communication to the governor’s office and state senate. Money being spent to help develop our schools manufacturing programs, tax policy and social issues are at the heart of the group’s decision making. One example was a recent awarding of $34 million toward Connecticut Technical High School and The Manufacturing
NESMA Technical Development Committee tours the high school facilities of the MET Academy at New Britain High School.
SPRINGS / Fall 2021 / 13
Regional Spring Association Report
Innovation Fund planned over a two-year period. The Manufacturing Innovation Fund has also recently secured $10 million a year, committed for the next two years. The NESMA technical committee is presently forming classes in partnership with Naugatuck Community College. Classes have not happened since the fall of 2019 due to the inability to gather for night classes. These 30-hour courses immerse students in springmaking technology and are ideal for apprentices. State funds will likely be made available to offset some of the class expense, with hours counting toward a registered apprentice’s time. The technical committee regularly meets with local community colleges and high school leaders spearheading technology education programs. New Britain High School recently teamed up with the nonprofit Community Foundation of Greater New Britain. They raised over $600,000, mostly from local manufacturers for their Manufacturing, Engineering and Technology Academy (MET). This money was stretched a long way to buy new milling machines, Bridgeport machines, 3D printers, lathes, surface grinders, computers and a total overhaul of the dusty classrooms to reflect a modern manufacturing environment. They have also hired a local consultant to place students of the New Britain MET with manufacturers seeking apprentices. We look forward to students getting back to normal and the opportunity to take full advantage of this program that is designed to help future generations. For more information about NESMA, visit www.nesma-usa.com. n
14 / SPRINGS / Fall 2021
Be Aware Safety Tips
How Much Can an Employee Safely Lift? By Laura Helmrich-Rhodes, CSP, Ed.D.
A
frequently asked question is, “How much can we ask an employee to lift?” As with many safety and health questions, the answer is not simple. The good news is there are several resources available to help you answer this question. Seeing the total cost of potential injury is one incentive to help you assess and change job operations for prevention. The most recent publication of workers’ compensation costs by the National Safety Council showed that low back injuries cost American business on average $32,882. There is an additional cost of $61,510 for neck injuries. According to EHS Today, in 2019, “overexertion injuries accounted for nearly $14 billion annually in lost time, insurance and medical bills.” We should not overlook the potential for a dropped object (for example, a box of completed springs or wireforms ready for shipment) on a foot or leg, which account for more direct medical cost and potential lost time. Certainly, the cost of lost product in the precision spring industry due to drop/ loss of load should be a motivating factor in streamlining your material handling operations. Can you be cited by the Occupational Safety and Health Administration (OSHA) for manual movement of heavy objects? It depends! If the company is located in a state-run OSHA program, and an ergonomics standard exists, then a company can be cited. In states under a
federal OSHA plan, it is a bit more complex for the compliance officer to have the violation hold up in court. These fall under the General Duty Clause of the OSHA Act, which is very broad but has specific qualifications for use. Section 5(a)(1) of the Act says: “ Each employer — shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees.” The key here is “recognized.” A reasonable person knows that lifting excessive weight repeatedly will likely lead to injury. Compliance, workers’ compensation cost containment and moral obligation all make this a worthy investment in the time it takes to assess and possibly change company work processes. There are many factors when eliminating back injuries due to lifting beyond the weight of the object(s). OSHA (in a Letter of Interpretation dated May 4, 2015) suggests the following minimum considerations: • How often (frequency) is the employee lifting something. • Whether the employee must bend or twist while lifting. • How high an object is lifted. • Where the origin of the lift occurs; specifically, whether it is below knuckle height.
Laura Helmrich-Rhodes, CSP, Ed.D., is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A former member of PA/OSHA Consultation, she is an associate professor in the Safety Sciences Department at Indiana University of Pennsylvania where she teaches graduate and undergraduate classes on topics such as OSHA standards, safety communications, workers’ compensation and human relations. Rhodes is available for safety advice and information. Contact SMI at 630-495-8588 or laurahrhodes@gmail.com.
• Whether the employee must hold the object away from the body while lifting. • How long (time) the employee must lift or hold the object. There are several sources available to help assess your job tasks. One is to use the Job Safety Analysis (JSA) discussed many times in previous “Be Aware” columns. This tool can be used to eliminate unnecessary lifting, moving, and increase overall efficiency in the work area. By breaking the job down into steps, it is easy to eliminate or change the way work is done to prevent injury and save time. This tool can help to pinpoint areas where engineering controls such as mechanical assistance or self-leveling carts might be considered. If your company is not using JSAs and needs help implementing this tool, please contact me for help. The best resource for calculating lifting capacities is to turn to the National Institute for Occupational Safety and Health (NIOSH), the research branch of OSHA. They developed a mathematical model that helps predict the risk of injury based on the weight being lifted and other criteria mentioned. This equation has been revised as new information has emerged in the area of ergonomics. Keep in mind that research findings and guidelines published by NIOSH become “recommended practice,” not an OSHA regulation, until it is formally promulgated as a federal (or state) standard. Years ago, OSHA did attempt to establish a federal ergonomics standard. To make a long story short, the standard was passed by OSHA, but later repealed by Congress. It makes for a great history lesson for safety or law students, but is beyond the scope of the question at hand: How much can I ask an employee to lift? The NIOSH lifting equation calculates a recommended weight limit for one person under different conditions. The
SPRINGS / Fall 2021 / 15
revised Recommended Weight Limit is calculated using the following equation: RWL= LC x HM x VM x DM x AM x FM x CM Where: LC= Load Constant HM=Horizonal Multiplier VM=Vertical Multiplier DM=Distance Multiplier AM=Asymmetric Multiplier FM=Frequency Multiplier CM =Coupling Multiplier The lifting equation establishes a maximum load of 51 pounds, which is then adjusted to account for how often (frequency) an employee lifts, twisting (asymmetric) the back during lifting, the vertical distance the load is lifted, the distance of the load from the body, the distance needed to move while lifting the load, and how easy it is to hold on to (coupling) the load. It is clear from this discussion that an employer cannot simply use the 51 pounds as their threshold. Each lift is different and needs to be assessed. NIOSH estimates a typical recommended weight limit for a task where employees must repeatedly lift loads and place them to lower locations, where torso twisting may be required, is about 8 to 12 pounds. Again, each job needs to be assessed using the equation if a more exact weight is desired. The advancement of computers and now phone-based apps make this assessment much more manageable than years ago. The NIOSH lifting equation is explained in detail on their website and includes a free downloadable app from Google or Apple iTunes https://www.cdc.gov/niosh/ topics/ergonomics/nlecalc.html There are other free or low-cost sources available to help you eliminate lifting risks in the workplace. Workers’ compensation loss control representatives or ergonomic specialists may help you conduct a risk assessment at little or low cost. It is in the compensation carriers’ best interest to eliminate hazards, so they are often open to these requests.
16 / SPRINGS / Fall 2021
The state bureau of workers’ compensation may also provide help to employers. For example, the Ohio Bureau of Workers’ Compensation has a calculator for assessing risk levels associated with lifting various weights, which is available at https://info.bwc.ohio.gov/wps/portal/ gov/bwc/for-employers/safety-and-training/safety-education/Lifting-guidelines The Washington State Department of Labor and Industry and the Oregon State Safety and Health Division have, jointly, developed a calculator for analyzing lifting tasks, based on the NIOSH lifting equation, which is available at https:// osha.oregon.gov/OSHAPubs/apps/liftcalc/lift-calculator.html Also, WorkSafeBC (British Columbia) often has excellent safety resources. They
include easy to understand illustrations for measuring lifting risks and infographics to use in safe work practice decision making. The information provided would also make excellent training materials for supervisors to discuss proper lifting with their departments. The potential OSHA citation should not be the only impetus for risk assessments, especially for lifting. There are many factors that may change which can make an object safe to lift at one time but could cause serious injury another time. The great news is there are many people and technical resources available at low or no cost to help eliminate this common hazard. n
Helpful Resources For Assessing Lifting National Safety Council Injury Facts — graphic overview of Workers’ Compensation Costs https://injuryfacts.nsc.org/work/costs/workers-compensation-costs/ NIOSH Manual for the Application of the Revised NIOSH Lifting Equation https://www.cdc.gov/niosh/docs/94-110/pdfs/94-110.pdf?id=10.26616/ NIOSHPUB94110 NIOSH Ergonomic Guidelines for Manual Material Handling (includes, pictures, assessment tools and recommendations for changes) www.cdc.gov/niosh/docs/2007-131/pdfs/2007-131.pdf OSHA www.osha.gov/SLTC/ergonomics/index.html Manual Lifting Risk Assessments: Use the Right Tool for the Job (article, excellent information for anyone performing the assessment at your facility) EHS Today, Retrieved 7/19/2021 https://www.ehstoday.com/health/article/21920427/ assessing-manual-lifting-risk-use-the-right-tool-for-the-job WorkSafeBC: Making It Right: Preventing Musculoskeletal Injuries in Manufacturing https://www.worksafebc.com/en/resources/health-safety/books-guides/ making-it-right-preventing-musculoskeletal-injuries-msis-in-manufacturing? lang=en WorkSafeBC Lift/Lower Calculator https://www.worksafebc.com/en/resources/health-safety/interactive-tools/ lift-lower-calculator?lang=en&origin=s&returnurl=https%3A%2F%2Fwww. worksafebc.com%2Fen%2Fsearch%23sort%3DRelevancy%26q%3DLiftin g%2520%26f%3Acontent-type-facet%3D%5BInteractive%2520tools%5D %26f%3Alanguage-facet%3D%5BEnglish%5D&highlight=Lifting
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What Are the Causes of Spring Tolerances?
Dean of Springs
By Dan Sebastian
O
ne main issue in springmaking has been the use of commercial tolerances for springs. It is worth looking at the origin of the published data. Some of the first tables were presented in 1944, when A.M. Wahl copyrighted his book “Mechanical Springs.” In his book, which continues to be one of the most used references in the spring industry, Wahl presented some tables that were developed by Westinghouse Electric’s research and development center. In subsequent years, empirical data from a research team at Associated Spring augmented the original data. The original tables were segregated based on key design variables. The tables were later converted into an algorithm. These key variables included:
d = wire diameter D = mean diameter
C = index N = number of coils
The basic variables fit neatly into mathematical modeling. In basic predictability, there are other factors that contribute to variability that cannot be modeled. Among these are the
material, the equipment used and the quality of the setup. The good news is the empirical data established a basic standard with the equipment and setup quality that was within the best industry standards. The material was from a limited number of sources. The actual data collected was then evaluated and reported after applying a statistical confidence factor. The material may be one of the most significant factors in any specific design and setup (that is why we do process capability studies on each setup). Early in my career, I worked at one of the greatest statistical laboratories in the spring industry, a plant that made high-volume engine valve springs. Our studies uncovered real differences between material suppliers with regard to meeting tolerances. Some of the differences were so significant, they impacted our procurement practices (price is not the only factor). These differences forced us to look more carefully at the material by looking at factors that go beyond the traditional specifications. One of the things we discovered was the cast in the wire; the curvature and the pitch had a significant effect on the tolerances. You can see this phenomenon by cutting a few coils loose and letting them set on the floor. You will see what looks like a snake coiled up. This appeared to be related to the material packaging at the mill. A secondary material factor that impacted the tolerances was the roundness. Another factor causing tolerance variation was the distance from the coiling point to the unspooling reel. The distance must be sufficiently large to compensate for the torque created in the coiling process, allowing it to be dampened. The original tables and the subsequent algorithms used were from empirical data which had variation from the material and equipment/setup built in. The factor that was designed to give +/- 3 sigma capability was the basis for the “standard tolerances.” Most springmakers can easily manufacture within the standard tolerance band, but the standard was for all. After accounting for the natural variation based on geometry, material becomes a significant source of variation. In any manufacturing process, the use of statistical controls will assure that quality and adherence to specified tolerances is maintained. n
Dan Sebastian is a former SMI president and currently serves as a technical consultant to the association. He holds a degree in metallurgical engineering from Lehigh University and his industry career spans more than four decades in various technical and management roles. He may be reached by contacting SMI at 630-495-8588. SPRINGS / Fall 2021 / 19
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Technically Speaking
Advances in Springmaking Materials — Part 2: Rod Rolling By C. Richard Gordon (Editor’s note: Rick Gordon’s article was developed as part of the overall theme of “Advances in Springmaking.” This is the second in the series articles on advances in springmaking materials. Additional articles on wire drawing and heat treating are planned for future issues of Springs.)
A
dvances in the production of springmaking materials over time have resulted in improvements in spring performance. Since the majority of springs are produced from carbon and alloy steels, production methods of these materials will be described here. Production improvements have occurred in the areas of steelmaking, continuous casting, rod rolling, wire drawing and wire processing (heat treatment). Improvements in springmaking machine technology were discussed previously1. Improvements in the areas of steelmaking and continuous casting were also discussed previously2.
Materials Design Philosophy In the Fall 2019 issue of Springs3, I discussed the relatively simple engineering concept known as the materials design philosophy, which can be used as a tool to better understand compositionproperty relationships. Briefly, the materials design philosophy shows the relationship between the composition of the material and the final product properties (Figure 1). A material with a specific composition is processed in a given operation. The combination of the material and the processing results in a particular structure (metallurgical microstructure). The microstructure in turn results in the specific material properties. In reality, the process of design occurs from right to left. Engineers are interested in specific material properties, which in turn are dependent on the structure, which is a function of designed processing of a material with a specific composition. Material properties such as tensile strength and ductility are determined through mechanical testing, which have been discussed in past Springs articles4,5,6,7,8,9. For the purpose of this article, Figure 2 shows an expansion of Figure 1 which includes our process of interest: rod rolling. From a materials perspective, a goal of any process improvement is to improve the uniformity of the product as well as enhance product properties. From an operations perspective, a goal is to improve productivity with the attendant reduction in cost.
Composition
Processing
Structure
Properties
Figure 1. Materials Design Philosophy
Thus, the challenge is to obtain both the materials goal and the productivity goal; how to achieve the balance is a subject beyond the scope of this article. In this article, only the rod rolling process is discussed.
Rod Rolling In the past, billets used to hot roll wire rods were produced from steel cast into ingots. Ingots were rolled to billets, which were subsequently rolled to rods. Today, essentially all steel is produced using the continuous casting process. For the highest quality high carbon wire products, such as valve spring quality wire, continuously cast blooms are rolled to billets. Billets are then subjected to surface inspection and conditioning prior to rolling to wire rods10. These steps are aimed at producing wire rods with the highest level of surface quality. Over time, there has been a dramatic improvement in hot rolled steel wire rod processing speed due to equipment improvements. This has resulted in new modern single strand wire rod mills replacing older mills with four strands. A top finished rolling speed of 110 mps (21,654 fpm) is routinely achieved. Converting billets into wire rod is an extremely complex process that requires excellence in a multitude of areas to consistently manufacture high quality finished products11. An excellent article is included as reference 11, which describes many of the improvements made in rod mill rolling equipment and operating practices which can be utilized for superior product production. Rick Gordon is the technical director for SMI. He is available to help SMI members and non-members with metallurgical challenges such as fatigue life, corrosion, material and process-related problems. He is also available to help manage and oversee processes related to failure analysis. This includes sourcing reputable testing labs throughout North America, forwarding member requests to the appropriate lab and reporting results and recommendations. He can be reached at c.richard.gordon@gmail. com or 574-514-9367.
SPRINGS / Fall 2021 / 21
Composition
Processing
Structure
Properties
• Rod Rolling
• Austenite • Pearlite • Ferrite • Bainite • Martensite
• Tensile Stregth • 0.2% Offset Yield Strength • % Elongation • % Reduction of Area
Figure 2. Materials Design Philosophy — Expanded
From the metallurgical perspective, control of microstructure (including the high temperature austenite phase in hot rolling and subsequent desirable transformation products which form during cooling) is of paramount importance to assure uniformity throughout a rod coil and around each rod loop. Variation in mechanical properties is typically related to uneven heating in the furnace or nonuniform cooling. An overview of the steel wire rod rolling mill process is shown schematically in Figure 3. Several key areas cited include:
Billet Reheating Furnace Improved instrumentation for furnace atmosphere and temperature control have been developed in order to minimize decarburization and variation in mechanical properties related to uneven billet heating. Rolling Mill Figure 4 shows a typical rolling mill stand used in the production of hot rolled wire rod.
Pre-finishing Block The pre-finishing block is an option that has been included in some modern rod mill installations. Sometimes described as a second intermediate mill, it utilizes mini-blocks using carbide rolls with good section control. Finishing Blocks/Reducing/Sizing Block The reducing/sizing block is another option that has been included in some modern rod mill installations. Product size and shape control are improved as a result. For the most part, hot rolled wire rod is produced in sizes down to 5.5 mm. Some installations are now in place for producing wire rod down to 4.0 mm13. The smaller wire rod diameter offers the potential for faster cooling rates with resultant improved mechanical properties (higher tensile strength). Through the use of these products, drastic reductions in many secondary processes can be realized. The resulting benefits for customers may be recognized particularly in manufacturing of smaller drawn wire sizes.
Billet Reheating Furnace
Rolling Mill
Roughing Stands 1st Step
Waterbox Cooling
Laying Head
Stelmor Conveyor Figure 3. Key elements of the steel wire rod rolling process.
22 / SPRINGS / Fall 2021
Intermediate Stands 2nd Step Pre-Finishing Block
Finishing Block 3rd Step Reducing/Sizing Block
Water Box Cooling Water cooling for control of rod temperature is essential for uniform microstructure and the correct scale formation (composition), depending on the planned scale removal requirement (chemical descaling or mechanical descaling). Stelmor Conveyor Conventional Stelmor lines have used air for cooling. Figure 5 shows a typical Stelmor cooling conveyor. New designs have been introduced for air flow and distribution, resulting in improved mechanical property uniformity. Nippon Steel Corporation developed a Stelmor cooling line with a two-step cooling process using molten salt (DLP) capable of producing microstructures and mechanical properties in hot rolled wire rod equivalent to lead patented material14. The DLP process will be discussed further in the article on heat treating. Process Control / Instrumentation Developments in sensor technology and the ability to process large amounts of data in real time are the promises for the future. Currently, online laser gauge instrumentation for size and shape measurement as well as eddy current instrumentation for surface imperfection detection have enabled operators to make real time decisions and adjustments, resulting in improved product quality. Summary Improvements in the quality of hot rolled wire rod, including improved dimensional control and uniformity of mechanical properties, offers the potential for improved quality of wire for springs. In a nutshell, that is a good thing. n
Figure 5. Hot rolled wire rod being deposited on a Stelmor cooling line (Photograph courtesy of Charter Steel).
References 1. McCoy, G., Advances in Springmaking, Springs, Spring 2021, p. 23. 2. Gordon, C.R., Advances in Springmaking Materials, Springs, Spring 2021, p. 30. 3. Gordon, C.R., Springmaking Materials/Materials Design Philosophy, Springs, Fall 2019, p.23 4. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 1: The Tensile Test, Springs, Winter 2020, p.27 5. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 2: The Coiling and Wrapping Tests, Springs, Spring 2020, p. 27. 6. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 3: The Torsional Ductility Test, Springs, Summer 2020, p.17. 7. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 4: Hardness Testing, Springs, Fall 2020, p.19. 8. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 5: The Reverse Bend Testing, Springs, Winter 2021, p.19. 9. Gordon, C.R., Types of Tests Used to Characterize Springmaking Materials — Part 6: Fatigue Testing of Wire, Springs, Summer 2021, p.21. 10. ASTM A877 / A877M-17, Standard Specification for Steel Wire, Chromium-Silicon Alloys, Chrome-Silicon-Vanadium Alloy Valve Spring Quality, ASTM International, West Conshohocken, PA, 2017, www.astm.org 11. Gordon, R., Yalamanchili, B., Power, P., Cunha, L., Boudreaux, T., Kiefer, B., Krejdovsky, W., “Meeting Customer Demand for Rod Qualities Through Improvements in Operating Practices and Rod Mill Equipment,” WJI, Nov. 2016, p52. 12. Kiefer, B.V., The Two-roll Rolling Process for Long Products, Wire Journal International, February 2016, p. 136.
Figure 4. Rolling mill stand with stock (moving right to left)12.
13. https://www.nipponsteel.com/en/steelinc/product/xsteelia/ small_diameter.html 14. H. Ohba et al., High-Performance Wire Rods Produced with DLP, NIPPON STEEL TECHNICAL REPORT, No. 96, July 2007.
SPRINGS / Fall 2021 / 23
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Spring Design Tips and Tricks
Items You May Have Missed in ASD7 By Gary Van Buren
T
here are a few items that you may have missed within the Advanced Spring Design (ASD) 7 software. Universal Technical Systems (UTS), the company that developed the software for SMI, continually updates and improves the software. I am personally grateful that Todd Piefer (ASD7 designer) of UTS works with the SMI technical committee, because he brings a wealth of knowledge and common sense to our group and helps us unlock the full potential of the program.
The first item that you might not be aware of is the “Encyclopedia of Spring Design.” This is loaded into the software and updated as changes are made. The printed version of this publication that you may have on your desk is only updated when it’s republished. With your software open to a spring design, click on a field. In this case, I have clicked on the index field. Once you’ve done this, go to the top of your screen and click on the question mark (?). This will open the Encyclopedia and take you to the section you’ve highlighted. One other ASD7 software feature that many people don’t use is the incremental solver. There are many times when you are trying to dial in a design by changing the OD or coil count to help attain a certain rate. This incremental solver feature lets you change the property of a field by a small incremental percentage to come up with the right number. In my compression spring example, I have placed my cursor in the coil OD field and updated the percentage change to 1%. The default is 5%. When you are fine tuning this, you may want to change it to something even smaller like 0.5%. You may also decide to change the wire size or coil count to achieve your desired results. Try it out and let me know what you think. n
Gary Van Buren is the technical advisor for SMI. He is available to assist members with design and problem-solving issues, including spring design and technical consultation. In addition, he teaches SMI’s spring design training courses. Van Buren is an engineering manager with more than 25 years of experience in the spring industry. He has extensive experience in compression, extension and torsion spring design, as well as customer service. Van Buren can be reached at gvanburen2@gmail.com or 440-206-6129.
SPRINGS / Fall 2021 / 25
HELP WANTED: The Search for Missing Workers
26 / SPRINGS / Fall 2021
By Gary McCoy
W
hen I’m on the phone or meeting in person with springmakers, a frequent top concern is that their businesses can’t find enough people to hire. And those concerns were expressed even before the pandemic took hold in 2020.
We look at the “help wanted” dilemma in this issue with an article by Mark Battersby, “Where Are All the Workers?,” which can be found on page 26. As Mark writes, “Many springmakers are finding themselves short of the one thing they need to thrive and grow: workers. Bank of America recently estimated that 4.6 million workers exited the labor force during the pandemic, but only half are expected to rejoin by the end of the year. How to coax those badly-needed workers off the sidelines remains a problem.” Mark’s article provides some great ideas on how to attract workers and looks at tax incentives to employ individuals who might be considered hard to hire.
Second Chance Hiring The Manufacturing Institute (MI) points out that there is an often-overlooked pool of millions of potentially strong employees: people with criminal records. The MI has partnered with Stand Together and the Charles Koch Institute to promote “second chance” hiring—to get these workers who need jobs into jobs that need them. Recently, the MI hosted its first webinar on the importance of this initiative and what manufacturers should know about it. The data shows that one in three American adults of working age has a criminal record, and yet this entire population is frequently discounted outright during employer job searches due to societal stigma and general misperceptions. During the webinar, the panelists shared some additional data. Of the approximately 19 million Americans with felony convictions on their records, some one million are incarcerated and some have aged out of the workforce, said Jeff Korzenik, author of “Untapped Talent: How Second Chance Hiring Works for Your Business and the Community” and chief investment strategist for Fifth Third Bank. “But millions are of working age, [and] virtually all of them are unable to participate to the fullest extent of their possibility, of their talents, because of barriers.” Talent Shortage According to the Bureau of Labor Statistics, 814,000 manufacturing jobs were unfilled as of May.
“Manufacturers continue to tell us that attracting and retaining workers remains one of their top challenges,” said MI executive director Carolyn Lee during the webinar. In all, 2.1 million manufacturing jobs could go unfilled by the end of the decade if current trends continue, according to a recent MI and Deloitte study, and that “could mean the loss of up to $1 trillion in lost economic impact for the U.S.” Employers who identify and support a strong candidate with a criminal record “get an employee who is on average more engaged and more loyal” than other workers, said Korzenik, who called this method of hiring the “second chance model.” This can lead to higher retention rates, saving an organization on turnover costs, he added. The model, which Korzenik developed, both identifies characteristics likely to lead to successful employment (strong character, soft and hard skills) and provides support processes (such as help with transportation to and from work) to help bridge gaps. Webinar panelist Cory Webb is a recent graduate of the Cuyahoga County, Ohio–based ACCESS to Manufacturing Careers, a program that trains both young people and people with criminal records for careers in manufacturing. He considers himself a testament to ACCESS’ success. “I started this program because I thought it would be a great opportunity for me to gain a career in manufacturing and machine operating,” said Webb, now an auxiliary operator for program participant Jergens Inc. The initiative “did a pretty good job as far as getting me prepared … for machine operating,” he said. n To learn more about second chance hiring efforts by the MI, you can visit their resource page at www. themanufacturinginstitute.org/workers/second-chance. We are always looking for feedback from our readers. If you’ve come up with any innovative practices to hire and retain workers, please send your ideas (or even better, write an article) to me at gmccoy@fairwaycommunications.com.
SPRINGS / Fall 2021 / 27
Where Are All
28 / SPRINGS / Fall 2021
the Workers? Many springmakers are finding themselves short of the one thing they need to thrive and grow: workers. The Bank of America recently estimated that 4.6 million workers exited the labor force during the pandemic, but only half are expected to rejoin by the end of the year. How to coax those badly-needed workers off the sidelines remains a problem.
By Mark E. Battersby
SPRINGS / Fall 2021 / 29
One reason for the shortage may be that we’re paying people not to work. Quite simply, for workers earning less than $32,000 annually, it’s more financially lucrative to collect federal and state aid than taking a job. After all, benefits for nonworkers now average $16 per hour, more than twice the $7.25 hourly minimum wage.
The Cure The Biden administration is reportedly taking steps that will make it easier for employers to hire more workers, and says Americans must accept a job or lose unemployment benefits. In the Senate, a proposed bill, the National Signing Bonus Act, would convert the expanded benefits of unemployment insurance into a two-month bonus for anyone going back to work. A number of states have already, or were on the verge of, eliminating the $300-a-week unemployment benefit extension included in the American Rescue Plan. Obviously, unemployment benefits are not the only reason workers are remaining on the sidelines. Among those reasons: Many parents are struggling to find child care, with schools remaining closed for in-person learning and child care facilities experiencing the same worker shortages faced by many in the precision mechanical spring industry. Other workers have said they’re reluctant to return to jobs out of concern they will contract COVID-19, or one of its more dangerous variants. Finding qualified workers remains a major challenge for spring manufacturers and is slowing both the recovery and growth. Some employers are increasing compensation, offering bonuses and benefits to attract employees. Consider just a few of the strategies in play as spring companies search for workers. Rewards For Workers Hiring Workers Imagine offering rewards to employees who bring job candidates onboard. These recruiting bonuses, also known as employee referral programs, foster a sense of trust in existing employees to refer good people with whom they will work well. Naturally, in order for these bonuses to be most effective, there should be some requirements to determine the success of the referral before the bonus is paid. These requirements often include working a set length of time, meeting certain standards, sustaining growth over a certain period and more. So-called “signing bonuses,” just like those we’re familiar with in professional sports, are becoming more and more common in industry. A signing bonus is money a manufacturer gives an employee who has accepted their job offer. A signing bonus is offered to attract well-qualified employees and convince them to accept a job. That bonus is usually in addition to the employee’s salary, benefits and other bonus or commission opportunities. Bonuses and awards must, of course, be included in an employee’s taxable income. Should the bonus or award be in the form of goods or services, employees must include the fair market value of those goods or services in their income.
30 / SPRINGS / Fall 2021
The Battle of the Minimum Wage While thousands of jobs are available and businesses are finding it increasingly difficult to find workers, many experts say that unemployment benefits are not the problem, instead pointing to low wages, specifically the minimum wage. Senate Budget Committee chairman Bernie Sanders has a simple solution to the problem of hiring low-wage workers: Raise wages and pay decent benefits. The main argument against a nationwide $15-per-hour minimum wage in the U.S. is that it would make labor too expensive for poorer areas, prompting employers in those areas to shed jobs. So far, a local approach to the minimum wage dilemma seems viable, as many cities and states pass their own $15-perhour minimum wage initiatives. Despite the minimum wage stalemate in Congress, the government has employed a number of tactics to help struggling businesses and individuals cope with the economic fallout of the pandemic. These include payroll tax deferrals, forgivable loans and refundable tax credits to reimburse employers for costs incurred providing paid sick and family leave to employees because of COVID-19. Benefits to Attract and Retain Workers Surprisingly, survey after survey seems to show that it is not money alone that attracts new workers and keeps existing employees on the job. It is the benefits. Obviously, no spring manufacturer can be an employer of choice without a good benefits package. Employees are looking for a sense of security in the form of good benefits and retirement packages; a 401(k) is the most common, but there are many other options. Helping employees maintain their health and build a stable retirement shows job applicants, along with current workers, the business values them. Also currently treasured by job seekers and employees are flexibility and the opportunity to balance work with other life responsibilities, interests and issues. Job training, educational assistance and employer-provided vehicles used for business are among other popular, and often necessary, working-condition fringe benefits offered by small businesses. Job Training and Educational Assistance Seeking workers “outside-the-box” often means job training, and many employers are finding ways to use a job-seeker’s previous job experience to place them in new careers. One example cites the customer service experience of hospitality and restaurant workers due to their ability to stand on their feet during long shifts as an excellent entry point for light industrial work. There are also job training and educational cost assistance programs useful in attracting job applicants and welcomed by existing workers. On-the-job training provided by an employer is a tax-free hiring incentive as well as an invaluable “perk” for current employees. Educational assistance and tuition reimbursement are also welcome fringe benefits.
It is not money alone that attracts new workers and keeps existing employees on the job. It is the benefits. A spring manufacturer with a formal, written educational assistance plan isn’t required to immediately fund the plan, only to reimburse an employee’s educational expenses — up to $5,250 per employee, per year and exempt from tax. Educational assistance doesn’t just include tuition assistance, but also payments for books, equipment and other expenses related to continuing education.
What Do They Want? Among the more common, tax-free employee fringe benefits are the following: l Health Benefits. Health benefits are by far the single most important fringe benefit. Health benefits include providing employees with health, dental and vision insurance as well as paying health-related expenses. l Long-Term Care Insurance. This insurance covers expenses such as the cost of nursing home care. While premiums are not taxable benefits, benefits received under the insurance may be partly taxable if they exceed certain limits. l Group Term-Life Insurance. A springmaker can provide up to $50,000 in group term life insurance to each employee tax free. l Dependent Care. Up to $5,000 in dependent care assistance can be provided to an employee tax free. Of course, many working parents may qualify for a tax credit for child and dependent care. l Working Condition Fringe Benefits. Working condition fringe benefits are everything provided or paid for by an employer to help someone do their job. Local and long distance travel for business, business-related meals and entertainment, professional publications and company cars used for business driving are all good exemples of tax-free working condition fringe benefits.
manufacturers are stepping up the automation of their operations. The government, particularly our tax laws, can provide a much-needed helping hand with the cost of automating. The current tax laws offer a first-year expensing option that allows amounts spent for new (or used) equipment to be entirely written off or deducted immediately. So-called “bonus” depreciation is another option for an immediate deduction of 100 percent of expenditures. Unfortunately, in order to deduct something, there must be income from which it can be deducted, something far too many businesses lack. The alternative for those automation expenditures is the tried-and-true depreciation deduction. Depreciation creates a write-off for a portion of those costs annually — when the recovering business’s future income will, hopefully, benefit from a reduction. In order to attract talented individuals to work for a spring manufacturer, as well as to retain qualified employees, employers in today’s job market must often offer increased wages, fringe benefits and other perks. With the help of professional guidance, the most successful options could well be the ones that cost the operation the least. n
Hiring the Unhirable The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have traditionally faced significant barriers to employment. That means qualified veterans, ex-felons, summer youth employees, long-term family assistance and long-term unemployment recipients and Supplemental Security Income (SSI) recipients, among others. The credit is equal to a percentage of the eligible employee’s wages, up to $9,600 depending on the new hire’s WOTC target group. Of course, the employee must work at least 120 hours in order for the employer to receive the credit. The Bottom Line One evolving method of dealing with the tough labor market involves working without workers. In other words, many
SPRINGS / Fall 2021 / 31
By Gary McCoy
2021 SMI eXpo Postponed
Plans Underway for a Bigger and Better Event in 2023 ®
SEPTEMBER 12–14, 2023 • LAS VEGAS
32 / SPRINGS / Fall 2021
D
ue to challenges surrounding the evolving delta variant of the coronavirus, SMI president Bert Goering announced in a news release and email to members on August 17 that the 2021 SMI Metal Engineering eXpo™ would be postponed until 2023. The 2023 eXpo event has been rescheduled for Sept. 12 - 14, and will held at the South Point Resort and Casino in Las Vegas. “This decision was made out of an abundance of concern for the health and safety of our members and associate members, and especially to those from our international community who are challenged by travel restrictions and quarantine requirements,” said Goering, who is the president of Precision Coil Spring in El Monte, California. “We are grateful to our exhibitors for their partnership in making our past shows a great success, and for their input and support as we made this difficult decision to postpone.” Goering pointed out that a majority of exhibitors were challenged to bring many of their technicians from multiple international and domestic locations. In addition, many anchor exhibitors were experiencing global shipping and material shortages, making it difficult to source specific pieces and parts that are required to have operating machines on the show floor. One of the key reasons for postponing the show was to support the ability of SMI’s associate members to maximize the exposure of their services and offerings across the U.S. “Our associate members partnered with us from the start on the concept of the eXpo being held across the country, and they invested heavily to make these shows successful,” explained Goering. “As we listened to the concerns of our partners and digested the reality of the negative ROI for all of us, their feedback was clear to us that it was most prudent to pause the 2021 event and not blindly forge forward to hold a show where all signals were as red as a stop sign.” Goering added, “While disappointed to postpone the 2021 event, we are excited for the opportunity to have more of the worldwide spring industry join us in 2023 for what we hope will be an even bigger and better event.”
SMI plans to invite the International Organization for Standardization (ISO) TC 227 group to the U.S. in 2023 to host their meeting in conjunction with the eXpo. In the past, attendees from nine producing-member countries (China, Germany, Italy, France, United Kingdom, United States, Japan, Malaysia and Thailand) have attended the ISO TC 227 meetings.
eXpo Webinars
Visionary Sponsor: Industrial Steel and Wire (ISW)
One of the outstanding benefits of attending the SMI Metal Engineering eXpo over the past six years has been the opportunity to take in a host of educational sessions. A total of 24 sessions were scheduled for the 2021 eXpo and divided into three tracks: 1) Business Trends and Best Practices 2) Manufacturing, Technology and Innovation
Giving Thanks
Planning for the 2021 eXpo was led by trade show committee co-chairs Daniel Pierre III, president of JN Machinery in East Dundee, Illinois, and Joe Devany of Betts Company in Fresno, California. “I want to thank Daniel and Joe for helping us organize the 2021 eXpo, which was no easy task during a global pandemic,” said Goering. “It’s unfortunate that we had to postpone the event. Rest assured that the hard work they put forth, along with the members of the trade show and technical committees, will not go to waste. They helped us identify many great speakers and topics that will help us as we plan for the 2023 educational symposium.” When the eXpo reconvenes in 2023 in Las Vegas, it will mark the fourth time the event will be held, after successful gatherings in Charlotte, North Carolina in 2015, Hartford, Connecticut in 2017 and Pittsburgh, Pennsylvania in 2019. The SMI Metal Engineering eXpo is a three-day event and features an educational symposium for individuals and companies to share their knowledge and expertise on a variety of topics surrounding the design, engineering and production of springs, wireforms and stampings. The trade show portion of the event includes vendors displaying a vast array of machinery to produce these items, along with wire suppliers and exhibitors representing all facets of manufacturing. Be sure to check the eXpo website for the latest updates on the 2023 show in Las Vegas at www.MetalEngineeringeXpo.org. n
Thanks to Our Sponsors SMI thanks the following sponsors who provided generous support for the 2021 eXpo.
Platinum Sponsors: Gibbs, Elgiloy
3) Materials and Testing SMI plans to present a series of webinars for members and non-members to access some of the great content that was planned for the 2021 eXpo. The complete details on webinar topics and dates will be announced in the near future, along with complete registration information.
Gold Sponsor: RK Trading Company
SPRINGS / Fall 2021 / 33
Flashback
Achieving the Extraordinary in an Ordinary World By Danny Cox
(Editor’s note: In this issue of Flashback, we turn back to the Summer 1996 edition of Springs and a reprint of a motivational article by speaker Danny Cox. During the pandemic we all faced a number of challenges, and this article is an encouragement to keep slaying the dragons in your path!)
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You leave school to go out and slay a dragon and save the world, but soon you find out there are no dragons, at least in your neighborhood, so you campaign against an occasional lizard. Bring on the dragons! Ten years of my life were spent flying progressively faster high-tech fighters for the Air Force. Each time I was assigned to a new, faster bird, elation engulfed me until I slid down into the cockpit, the supersonic office, of the monster. Half the instruments I didn’t recognize, and the other half were in the wrong place! My first thought was that this was one dragon I wouldn’t be able to handle. About this time, the instructor cheered me on by saying, “If you try to fly this one with the same techniques you used in the last one, you’re gonna get yourself seriously killed!” Obviously, that didn’t happen, but it was a warning that helped me through the transition and saved my business career later on. Upon leaving the Air Force, I joined a large organization as a salesperson, and at the end of the first year was promoted to manager of a little ne’er-do-well office. After a year of so-called management, the company saw fit to make me the manager of the top office in their 36-office chain. It was the same office where I’d been a new salesperson two years before. What was their reaction to my plan to turn everybody into a copy of me? To “fly it just like the last time?” Production plummeted. We went from No. 1 to No. 36 in three months’ time. It was no surprise when my supervisor paid me a visit and delivered these terse words: “Obviously, I made a mistake and am now looking for your replacement.” I looked him straight in the eye and stated, “That’s the shortest and best motivational seminar I’ve ever attended, and I’m going to learn how to do this.” I went to work on me, not on my team members, hoping production would start back up before they found my replacement, and it did! Here is the lesson I learned in the ensuing turnaround: Employees get better right after the manager does.
“Employees get better right after the manager does.” Four months later, we were back to No. 1 and stayed at that level, the same level as when I took over the office. The staff, including the high producers, were back to the limits of its self-imposed barriers. I started thinking about the concepts of self-imposed barriers and came up with the following definition: “A self-imposed barrier (SIB) is not a wall around my life, but simply the margin of my life (my potential) where I haven’t written anything — yet.” And therein lies the problem! I look at the perimeter of my developed potential as if it’s a wall. Once I stop developing my potential, I see a wall. No one else can see my wall, but they can see the results. After this breakthrough on SIBs, I shared the concept with my team members. I suggested to them that they not worry about breaking anyone else’s records, but just to commit to breaking their own personal records on a daily, weekly, quarterly and yearly basis. This became a way for each person to see instant progress, because they were competing against their own records, whether they were low, medium or high. To aid them in their record-breaking quest, I taught them the system I’ve written about in my book, “Seize the Day: Seven Steps to Achieving the Extraordinary in an Ordinary World.”
The seven steps are: 1. Select the goals that make the effort expended in achieving them go virtually unnoticed. 2. Determine and develop the inner strengths that become the tools used in achieving the goals. 3. Lay out a plan that makes the most efficient use of the strengths available. 4. Anticipate the anxiety that will surface when the new plan is launched. 5. Prepare to solve new problems as a result of putting the plan into action. 6. Keep your morale high in spite of the “growing pains.” 7. Reapply this system when new SIBs appear — and they will. The results of committing to this system were extraordinary. We broke office, company and industry records. Using the same system later on with a district of offices, we achieved an 800 percent increase in production in a five-year period that included two recession years.
The ultimate thrill was to see my team members’ personal lives improve as they crossed their barriers. One woman, who never made more on commissions than she earned as a secretary, broke through her barrier and now has a net worth of more than $3 million. Another salesperson told me he’d never had any more money in the bank than his struggling father had. He subconsciously controlled his monthly commissions until I asked him if that was the same role model he was currently setting for his own children. He broke his barrier with a bang and became a bright superstar with our company. Why? Because he wanted to be a dragon slayer to his kids, not someone who fiddles with lizards. As this next century approaches, we need dragon slayers in our corporations, associations, schools and families. We need ordinary people, with extraordinary goals, who will see their self-imposed barriers for what they really are, step across them and say, “Bring on the dragons!” n This article is excerpted from Danny Cox’s book, “Seize the Day: Seven Steps to Achieving the Extraordinary in an Ordinary World,” published by Career Press. Cox is a professional speaker. Visit www.dannycox.com.
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SPRINGS / Fall 2021 / 35
By Phillip M. Perry
Cybersecurity: How to Counter Fraud in a Digital World
36 / SPRINGS / Fall 2021
W
hen the controller of a California business received an email from the CEO requesting an immediate wire transfer to a vendor, the transaction seemed routine. Only after the money was sent was it discovered that the vendor was not due such a payment. And worse, the funds had not been received. An investigation revealed that the sender of the request had been a thief using an email address misleadingly similar to the targeted company’s top executive. The supplied banking credentials were actually those of the crook’s account in China. Acting quickly, the controller called the overseas bank to see if the payment could be canceled. What he heard allowed him to breathe a sigh of relief: Because the funds had arrived on a Chinese bank holiday they had not yet been credited to the thief’s account. The company was able to recover its funds.
SPRINGS / Fall 2021 / 37
Costly Fraud While our opening story has a happy ending, most businesses targeted by so-called Business Email Compromise (BEC) fraud are not so lucky. Of the 11 percent of respondents reporting losing money to such fraud in a recent AP Now survey, only 3.2 percent recovered all the stolen funds. This type of fraud is increasing rapidly, as thieves have learned to cleverly disguise C-level executives’ identities. “Crooks know it’s very, very easy for people to miss slight changes in email addresses,” says Mary S. Schaeffer, AP Now’s president. The urgent need for effective security procedures was brought home recently by an upsurge in news reports about an especially insidious form of electronic theft: ransomware attacks (more on this below). And reports from the FBI, the IRS and other agencies show that cyberfraud of all kinds poses a growing threat to businesses. While many thieves want money, others want data such as company marketing plans or customer information for identity theft. Losing control of the latter can be especially costly. “The extent of liability for customer data loss depends on the severity of the incident,” says Diane D. Reynolds, partner at New York-based McElroy Deutsch. “Not only may a breach require notification under state and possibly federal regulations, but there are also costs involved with the ongoing need to monitor the results of the breach, cleanup the system, and deal with negative public relations.” Large companies are not the only ones at risk. “Criminals often target smaller businesses because their protections are typically not as strong,” says Schaeffer. “They are likely to have older, unsafe technology and lack the security personnel to keep software updated.” Fueling the rise in cyberfraud is the growing digitalization of business transactions, a long-term trend given further impetus by a greater reliance on electronic communications during the COVID-19 pandemic. “Flaws in firewalls and Virtual Private Networks (VPNs), as well as in videoconferencing systems, have exposed more businesses to incursions,” says Robert M. Travisano, an attorney in the litigation practice of Epstein Becker Green. The rapid expansion of devices on the typical employer’s computer network has given cyberactors still more opportunities. The pandemic has increased risk in another way: “More people are working at home, sharing business computers with family members,” says Eric Jackson, consultant in the Cybersecurity team at Withum. “This has created some serious security
breaches.” Not only do users log on to malware-infested sites they would not access at work, but family members may accidentally open email attachments that install damaging programs.
Electronic Payments Wire transfers and ACH (Automated Clearing House) transactions are juicy targets for cyberthieves as the business world moves away from paper checks. “The right procedures can help spot electronic payment fraud before the money goes out the door,” says Schaeffer. “That’s much better than trying to recover what’s been lost.” That key word is “procedures.” Security experts say most business fraud stems from social engineering — a thief ’s skillful engagement with a company employee. “Social engineering is responsible for 70 percent to 90 percent of all successful digital breaches,” says Roger Grimes, a consultant at security firm Knowbe4. “Yet the average company spends less than 5 percent of its cybersecurity budget to fight it.” Training the staff in preventive procedures can stem such fraud in the bud. To obviate BEC fraud such as the one in our opening story, for example, businesses can require that wire transfers be validated by a means other than email. “Validation should be done by either picking up the phone and calling the executive using a known number, or if feasible by walking over to that individual’s office,” says Schaeffer. The pandemic has made this kind of verification more difficult. “Calling and verifying sounds easy in the abstract, but it can be exponentially more difficult when people work from home,” says Schaeffer. “Sometimes the right person is not readily available because of their schedule.” Adding to the risk is the fact that home workers often have less than ideal technology. “Accounts payable people have become accustomed to using two screens,” says Schaeffer. “When they get sent home they may only have a laptop with a single small screen.” The result of this technology mismatch can be costly errors. “Just trying to enter data by going back and forth between applications takes longer and can create confusion.” The above conditions can lead to security breaches when targeted employees are pressured into quick action. “Thieves will often request transactions when they know people are more likely to be overworked or harried,” says Schaeffer. “Employees need to be warned to be alert for such requests that come in late on a Friday afternoon, at the end of the month, or anytime when thieves think they can trick somebody into failing to properly verify a transaction.”
“ Criminals often target smaller businesses because their protections are typically not as strong. “They are likely to have older, unsafe technology and lack the security personnel to keep software updated.”
38 / SPRINGS / Fall 2021
Reducing Risk with Cyber Insurance While no business can eliminate the risk of cyberfraud, insurance can save the day when a breach occurs. Many common commercial general liability (CGL) policies already address some areas related to digital transactions. Security experts, though, advise seeking better protection. “Cyber coverage in existing property policies is often limited,” says Robert M. Travisano, an attorney in the litigation practice of Epstein Becker Green. “Moreover, policies can differ from carrier to carrier. It makes sense to shop around for a dedicated cyber policy.” The typical cyber policy will cover money lost to cyberthieves. In the event of customer data loss, policies may cover breach notification, credit and fraud monitoring services, and the costs associated with restoring and recreating data as well as with hiring a PR firm. Especially important is coverage for business interruption. “Statistics show that most businesses are not back to normal operations for at least one month after an attack,” says Diane D. Reynolds, partner at New York-based McElroy Deutsch. Even the best dedicated cyber policies may have potentially costly coverage omissions. “Insurance companies, God bless them, are really good at writing policies that are very precise and cover you for exact things,” says Mary S. Schaeffer, president of consulting firm AP Now. “If you haven’t checked your policy closely, you may not have the coverage that you think you do.” And what seems good coverage at one point may not look so attractive down the road. “As cyberattacks evolve, so will insurance,” says Jessica Averitt, a partner in the Houston office of law firm Baker McKenzie. “Companies need to review their policies to ensure adequate coverage
in the post-COVID-19 world. For example, a few years ago provisions related to ransomware were rare. But after some recent high-profile attacks, such coverage is more common.” Cyber policies can carry benefits that go beyond coverage categories. “The insurance agency will get you in touch with expert incident response brokers who will get you back up and running as quickly and cheaply as possible after an attack,” says Roger Grimes, a consultant at security firm Knowbe4. “The insurance agency works with them because they are experts and they know how to do this better than anyone--and the insurance company saves money by using the best.” The good news is that more carriers are entering the field of cyber insurance, increasing the competition for customers and helping improve terms and premiums. With a decade or more of loss history to analyze, carriers are fine tuning their premiums to make policies more attractive. “I have not seen any policies in the past year or so that I thought were overpriced,” says Reynolds. An important caveat: The terms of a cyber policy will be invalid if the covered business cannot illustrate compliance with a good security plan. Insurance companies are tightening the screws in this area. “We are seeing more carriers who will not even issue policies unless a business has security controls validated by a third party,” says Eric Jackson, consultant in the cybersecurity team at Withum. “And when an incident occurs, carriers will often send inspectors to investigate the insured’s security posture before paying a claim.”
SPRINGS / Fall 2021 / 39
“ Social engineering is responsible for 70 percent to 90 percent of all successful digital breaches. Yet the average company spends less than 5 percent of its cybersecurity budget to fight it.”
Cyberdefense Quiz
How solid is your cybersecurity program? Find out by taking this quiz. Score 10 points for each “yes.” Then total your score and check your rating at the bottom of the chart.
Yes
No
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1. Have all personnel been trained on security protocols, including correct handling of suspicious emails?
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2. Do changes in a vendor’s or customer’s bank account information for e-payments require verification by voice telephone call to a known number?
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3. Do you require non-email validation of wire transfer or ACH requests?
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4. Have you established one bank account dedicated to wire transfers and blocked such transfers on all other accounts?
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5. Have you limited ACH debit activity to one designated account?
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6. Have you established ACH filters, blocks and alerts where appropriate?
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7. Do you regularly update vendor master files?
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8. Have you replaced hardware older than 15 years?
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9. Do you regularly patch software programs?
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10. Have you taken out a comprehensive cyber insurance policy?
What’s your score? 80 or more: Congratulations. You have gone a long way toward securing your company funds and data. Between 60 and 80: It’s time to fine tune your security procedures. Below 60: Your business is at risk. Take action on the suggestions in the accompanying story.
40 / SPRINGS / Fall 2021
Protect Accounts Good procedures can also guard against a variation of social engineering in which a caller, pretending to be a customer, requests bank routing numbers to pay an invoice. “People are often only too happy to give out such information because they want to receive money,” says Schaeffer. “However, rather than using the provided information to wire funds into the account, the thief wires funds out.” Businesses can hinder such wire fraud by requiring account information be communicated only by designated individuals who directly dial the paying company using known telephone numbers. “Another solution is to establish one bank account dedicated to wire transfers, and use it only for inbound transactions,” says Schaeffer. “At the end of the day, money from that account can be swept into the business’s regular account which the bank has flagged to reject any wire transfers.” In a reversal of the above fraud, a thief pretending to be a vendor will send an email providing routing numbers for a new bank account where all future payments are to be made. The account, of course, belongs to the thief. “This type of fraud is exploding and I cannot caution you enough to be careful,” says Schaeffer. “You need to get to the right person to verify that the request is legitimate.” Again, verification should be done over a voice line using a known telephone number. Schaeffer cautions that calling to verify changes in bank accounts or email addresses will only work if a company’s records are accurate. “It’s more important than ever to enter
valid contact information in the master vendor file when it’s first set up, and then update it regularly.” Wire transfers are not the only electronic payment method at risk. Thieves can also use stolen Automated Clearinghouse (ACH) numbers to steal company funds. Banks offer a number of services to stem losses. An ACH block will prohibit all ACH transactions for a specified account. An ACH debit block prohibits only transactions initiated by payees. An ACH filter allows ACH debits only to those on a designated list of names. An ACH alert triggers a notification when an ACH debit arrives, enabling a staff member to accept or reject. “I suggest putting ACH debit blocks on all accounts where debit activity is not needed,” says Schaeffer. “Limit ACH debit activity to one or two accounts and check those accounts each day. Businesses have 48 hours’ time to notify the bank of any unauthorized transaction.” (Consumers enjoy a 60-day notification window.)
While no business can eliminate the risk of cyberfraud, insurance can save the day when a breach occurs.
SPRINGS / Fall 2021 / 41
Damaging Malware This article has discussed some of the fastest growing security breaches stemming from social engineering. Experts also suggest businesses take the following measures. All of them can help reduce the chances of being hit with ransomware, a form of malware which requires targeted businesses to make costly payouts to either regain access to encrypted data or prevent the release of business information to competitors: 1. Beware malware-ridden emails Phishing emails trick recipients into clicking a link to a toxic website or opening a compromised attachment. The result is the installation of a keylogger software that collects keystrokes for critical bank account information. Solution: Train employees to handle all emails with suspicion. 2. Update hardware. Old computers and routers offer access points for hackers. “Anything older than, say, 15 yearswas designed without security in mind,” says Jackson. Solution: Replace old equipment with new models. 3. Patch software. Outdated versions of operating systems or office programs are riddled with security bugs. “Unpatched software is involved in 20 percent to 40 percent of all digital breaches,” says Grimes. Solution: Update operating programs with the latest versions. Insurance Policies No business can eliminate the risk of cyberfraud. The right insurance though, can lessen the blow when a breach occurs. “Insurance can protect businesses from so-called ‘first party risk’ of their own losses,” says Reynolds. “Policies can also protect against losses to third parties, such as customers and vendors, obviating lawsuits against the insured company.” (For more details see the sidebar, “Reducing Risk with Cyber Insurance.”) Even the best insurance policy is no substitute for operating procedures that help stop cyber theft in its tracks. Employees from the CEO on down need to be trained on the most effective responses to thieves who are skilled at social engineering. “The one piece of advice I have is to be suspicious,” says Schaeffer. “Make sure everyone knows that if something looks a little odd, or if someone asks for something out of the ordinary, speak up. It’s better to go overboard on security than to go the other way.” n
Even the best insurance policy is no substitute for operating procedures that help stop cyber theft in its tracks.
42 / SPRINGS / Fall 2021
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To Screen or Not to Screen? Cannabis use was once frowned on, but recent legislation and cultural shifts have almost completely eliminated the taboo. Should businesses still test their employees for pot? I’m not just blowing smoke — pot is mainstream now. Although federal law still prohibits its sale and use, 18 states and Washington, D.C. have legalized recreational marijuana for adults over 21, with 37 states allowing it for medical purposes. Change may be on the way at the federal level as well. In December 2020, the House passed the “The Marijuana Opportunity Reinvestment and Expungement Act,” or, the MORE Act, a piece of U.S. federal legislation that would deschedule cannabis from the Controlled Substances Act and enact various criminal and social justice reforms, including the expungement of prior convictions. It died after House approval. In late May 2021, Rep. Jerrold Nadler D-N.Y. reintroduced the bill for the 2021 U.S. House of Representatives to consider, adding the year to the original MORE Act, which marked the first time a chamber of Congress approved legislation to end federal marijuana prohibition. If passed in both Houses this year, the act will remove cannabis from the Controlled Substances Act, facilitate the
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expungement of past convictions, and tax cannabis products at five percent to fund criminal and social reform projects. It would also prohibit the denial of any federal public benefits, like housing, on the basis of cannabis use, and states that use or possession of marijuana would have no adverse impact under immigration laws. These potential changes in the law reflect changes in the culture, which in turn affect how businesses deal with pot use among potential employees.
Is Screening Still Ok? As the laws change and pot culture becomes mainstream culture, many employers are wondering whether it is still appropriate — or even legal — to screen employees for marijuana use. There are multiple considerations to keep in mind when deciding whether to screen. On the one hand, in some industries it makes a lot of sense to screen for pot. Marijuana may not be as addictive or dangerous as some other substances, but it is still a mind-altering drug. Certain jobs require a level of mental alertness and physical coordination that might be compromised by regular cannabis use. In the manufacturing industry, for example, it can be a severe health and safety risk to have workers on the job while high, especially if they are driving vehicles and operating machinery.
On the other hand, it has been widely reported that it’s not easy to find good workers in post pandemic times. Many companies are struggling to source and retain capable employees. Waiving marijuana checks might solve some of these recruiting issues, attracting a wider pool of job seekers. As long as it doesn’t affect their job performance, a worker’s use of marijuana at home might not be any of their employer’s business. This, at least, is the reasoning behind a recent decision by Amazon, which announced on May 30, 2021 that it would stop testing job applicants for pot. In addition to the factors listed above, employers need to be aware that some states have banned pot screening altogether. As businesses widen their geographical pool in search of employees, they need to make sure they are remaining compliant with a complex web of screening laws. Here are a few simple guidelines that can help you decide whether or not you should screen for marijuana use. 1. Distinguish the jobs that require screening from those that don’t. You may not have to test everyone, even if you’re in an industry that requires testing. There is probably less reason to drug test someone working a desk job than there is to test an employee
lifting heavy objects on a factory floor. If you’re not required to test, and have no obvious reason to, then don’t do it. The cons probably outweigh the pros. 2. If your company is located in a place that doesn’t allow cannabis testing, follow the law and don’t test. Also keep in mind that state and local laws will generally have exceptions that allow testing if it is required by federal law, or if the open position requires interaction with vulnerable groups such as the elderly or children. For instance, New York City has a ban on pre-employment marijuana testing, but it will allow testing for certain jobs, such as police officers, positions supervising medical patients, positions requiring a commercial driver’s license and positions supervising or caring for children. 3. Get support from an experienced background screening partner. Clearly, marijuana testing can be a legal and ethical minefield for employers. For this reason, companies should team up with a background screening partner that is plugged into the changing laws around cannabis use. HR executives need to trust that their background check partner is up-to-date, and aware of the shifting legal landscape from state to state, or within a regulated
industry. They also need a simple way to hire across state lines and understand the laws quickly so that they don’t get caught up in situations where they’ve screened for marijuana use where they shouldn’t have. Legal teams love the peace of mind that a trusted partner is behind-the-scenes, handling the finer details of all the change. GoodHire, the country’s leading background check software platform for businesses, introduced a streamlined 4-panel drug screening option to suit the needs of employers who have decided to stop testing for marijuana. Companies that need to comply with industry employment drug screening laws within their industry or to comply with company policy can still select the 5-panel, or the most extensive 10-panel drug screenings for the hiring process. GoodHire’s employer drug screening offerings are designed to meet a company’s policy and drug-free workplace obligations, while helping them comply
with applicable federal, state and local regulations. The 5- and 10-panel option screen for drugs include those listed below; the 4-panel screening option includes the first four: 1. Amphetamines (Adderall) 2. Phencyclidine (Angel Dust) 3. Cocaine 4. Opiates (Heroin, Fentanyl) 5. Marijuana 6. Barbiturates 7. Benzodiazepines (Xanax, Valium) 8. Methadone 9. Methaqualone (Quaaludes) 10. Propox (Darvon) There are many factors that determine whether a company needs to conduct comprehensive drug screenings, or whether a lighter touch is appropriate. To make this complex decision, businesses need trusted background check partners who can help them remain up-to-date on the changing legal and regulatory landscape. n
Elizabeth McLean is an FCRA-compliance attorney and general counsel at GoodHire, a leading employment screening provider. An expert in the background screening legal landscape, she follows new legislation and court decisions to advise the company on processes that follow compliance best practices.
SPRINGS / Fall 2021 / 45
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Five Questions RK Trading Company Five Questions provides an opportunity for SMI associate members to tell the spring industry about the products and services they offer. In this edition, we talk with Robert Kupczak, owner and president, RK Trading Company.
1|
Can you tell us about the history of RK Trading Company?
As the owner of Jackson Spring, it all started for me with a trip in 1995 to investigate a variety of spring and wireforming machines being built in Taiwan. I spent three days visiting companies, and my last stop was at a small, family-owned company in Taipei called Hertong (now Herdon). I was intrigued, received pricing and delivery information, and told them I would return with a few others to confirm my opinion. I went back with our key setup person and a friend who also owned a spring company. They confirmed that Herdon machines were sturdily constructed, with interesting features and programming that was easier to use than most competitive machines. I immediately placed orders for two machines. I told the Herdon owners that if the machines worked well at my company, I might be interested in trying to sell their machines in the U.S. We reached an agreement in 1996 and I have never questioned the price. I just asked Herdon to build a quality machine for our market. We were fortunate enough to find immediate success, and RK Trading and Jackson Spring remain as completely separate businesses.
2|
What types of machinery do you offer to springmakers?
Herdon manufactures a wide variety of products to make compression, extension and torsion springs and wireforms. Compression spring coilers are available with a range of .8mm to 20mm wire size, from simple three-axis machines to multiple axis machines with or without camera gages. We will soon introduce a 12-axis
coiler. Wireforming machines are available in a variety of configurations, with size ranges of 1mm to 8mm, from simple four axis to 14 axis, with a wide variety of possible attachments. Herdon also makes two sizes of grinders, both crush and/or downfeed. Powered payoffs are available with capacities from 50kg to 2500kg.
3|
What services do you offer customers?
As an owner of a spring company, I bought a few machines over the years that would have better served as very expensive boat anchors. I was determined to provide a superior product at fair prices with the best service in the industry. We have full-time, very knowledgeable service technicians who are expected to promptly return all phone calls regarding service issues. We offer full training, either in our facility or at our customer’s facility. If the customer feels the need for added training, it’s available. We maintain a large inventory of tooling and spare parts. We can also advise our customer on ways to set up difficult parts, optimize production speeds, etc. Our attention to service has resulted in more than 90 percent of our sales being to existing customers.
4|
What are the latest equipment trends impacting springmakers?
Easier, faster, stronger. These are the buzzwords in our industry today. Almost everyone we talk to is having a difficult time finding qualified setup people. Larger companies may have training programs but, lacking that, a possible solution is to invest in newer, more productive equipment which is easier to learn, use and
maintain. Unless a company has carved out a specific niche, it is imperative to stay current with manufacturing capabilities. We’ve had some companies successfully integrate robotics into their processes. This trend will accelerate as labor becomes harder to get and more expensive. The use of artificial intelligence has entered into all types of manufacturing and will eventually be utilized in spring machinery. A very wise man who owned one of the largest spring companies in the world told me at an SMI meeting that “making springs is a pennies and inches business.” In other words, to succeed, you must operate efficiently.
5|
Can you tell us about a recent challenge that you were able to solve for a customer?
Since we offer onsite service, most problems can be answered with a simple phone call. It is not uncommon for our service technicians to receive a phone call in the middle of the night. At no charge, they can walk the caller through the steps needed to correct the problem. If it is a parts issue, in many cases we have the part in stock and can air freight to the customer. There are times when we can tell a customer specific ways to increase their productivity. We once showed a customer how to thread one end of a part on their machine. We welcome these challenges. We understand that our business is, to a large degree, built on service. We don’t just “sell and ship.” We view ourselves as much more a service company than a machine seller. n RK Trading Company 235 Bond Street Elk Grove Village, IL 60007 847-640=9771 rkinfo@sbcglobal.net www.rktradingusa.com
Robert Kupczak
SPRINGS / Fall 2021 / 47
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Springmaker Spotlight
Pictured (l-to-r): Tom Little and Dennis Bhaskaran
Partnership: A Profile of Apex Spring and Stamping Company By Gary McCoy, Managing Editor
W
hen you walk through the expansive manufacturing and warehouse space at Apex Spring and Stamping Company in Grand Rapids, Michigan, you immediately notice the bright lighting and clean workspace. It is also quite evident that the smiling faces of employees point to a positive working environment and a commitment to the phrase “partnership.” In addition to a partnership with its employees, the management of Apex carries that same pledge to the way it interacts with customers. “Today’s customer demands and expects a high level of service and a commitment to their particular business,” according to Tom Little, Apex engineering/sales manager.
SPRINGS / Fall 2021 / 49
“ The first thing we ask all our customers is: ‘How can we help?’ We really don’t look for transactional partnerships, but those that consist of us basically becoming an integral part of our customer’s team with the goal to know their business as good or better than they do.”
Ted Tenbrink, Spring Department
In describing the company’s business philosophy, Little cited the phrases “a servant’s attitude” and “partnership in a customer’s business.” “We succeed when our customer succeeds, and we fail when our customer fails,” explained Little. “The first thing we ask all our customers is: ‘How can we help?’ We really don’t look for transactional partnerships, but those that consist of us basically becoming an integral part of our customer’s team with the goal to know their business as good or better than they do.” Regarding customers, Dennis Bhaskaran, the CEO/COO of Apex and one of the company’s co-owners, says it is always the company’s goal to get prospective customers and current customers inside the shop, “so they can see how we care for our people.” In addition, Bhaskaran says
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if Apex can do one job for a customer that “the rest is history; because they are going to see what we can do for them.” In addition, he says the company has a culture of cleanliness that goes back to its founder Wayne Nash, who left active management of the company in 2012. Nash’s son, Ben Nash, remains as one of the company’s co-owners. “We want employees to have a great place to work that’s clean,” said Bhaskaran. In addition, Bhaskaran says he wants customers to know that the money they have invested in things like tooling is going toward a clean workspace and not one that is dirty, oily, or greasy.
40 Plus Years and Growing Apex started in 1977 out of a small rental building in Standale, Michigan by Wayne Nash and two other employees with three fourslide machines. According to Little, “Wayne had been working at another local spring company that closed at the end of 1976, and he figured it was time to start his own adventure into the spring world.” Bhaskaran later came on the scene. He graduated from the Michigan State University accounting program in 1987 and became a CPA in 1989. Bhaskaran initially met Nash in 1990 as a client in his work with the accounting firm Crowe. “Wayne and I really hit off well,” recalled Bhaskaran. Bhaskaran said Nash would frequently call him to get advice about buying
equipment and inventory issues. “We ended up meeting three or four times. At that time, Apex had about 10 or 11 employees and about one million in sales,” recalled Bhaskaran. Regarding the potential he saw at Apex, Bhaskaran remembers feeling like “a kid in a candy store.” Eventually, Bhaskaran left the accounting world and joined the management team at Apex in 1994. After staying at around one million in sales during the company’s first 17 years, Bhaskaran said his accounting background and Little’s work in opening up new accounts were among several factors that helped the company blast through that threshold. Pre-COVID, the company recorded sales of $23 million. The sales have since returned to pre-COVID levels and Bhaskaran says they are on their way to even greater growth. Little joined the company in 1986, after working at Mid-West Spring for two years as the company’s Michigan representative. Before that, he was pursuing a career in golf as a 1983 graduate of the professional golf management program (PGM) at Ferris State University in Big Rapids, Michigan. Little admits he became disillusioned with the business side of the golf industry, and in a fortuitous meeting he was hired out of the golf shop at Spring Lake (Michigan) Country Club by Fred Hohman at Mid-West Spring.
“What a blessing it was that Fred saw something and took a chance on a 23-year-old kid, who had no knowledge or experience in the spring industry or about selling,” said Little.
Leaning Forward Apex provides a steady stable of products for its customers with stampings (progressive dies), fourslide and multislide parts, and a number of springs, including compression, extension, torsion, and double torsion for many industries such as automotive, office furniture, medical and appliance. Recent growth areas include value-added assembly and 3D wireforming and assembly. The company now has a workforce of approximately 70 direct employees spread over three facilities, two in Grand Rapids (its main office and manufacturing facility and a separate warehouse across the street) and an assembly facility in Howard City, Michigan. Bhaskaran said he brought lean management principles to the company and helped it transition to the computer age. “One time, we bought an ERP system, and I didn’t like it and we ended up writing our own program here,” explained Bhaskaran. Apex hired a computer programmer, and it took the company about five years to write its own custom software. “And to this day, it is still being used,” said Bhaskaran. He says having their own computer system provides Apex with the flexibility to quickly adjust and make changes. After being exclusively a fourslide company for its first 17 years, Apex bought its first stamping press in 1994 and now boasts more than 15. They also have nearly 60 torsion machines, numerous coiling machines, and most recently added 3D wire rendering machines. In a recent blog post on the Apex website, Ben Nash said that the concept of continuous improvement is simple, but that implementing it within an organization requires commitment, discipline, and resolve for it to be successful.
“At Apex, we view continuous improvement as an opportunity to improve every process by focusing on enhancing the activities that generate the most value for our customers, while removing as much waste as possible.” Despite recent COVID disruptions, Bhaskaran has restarted the quarterly meetings with employees to spark continuous improvement in the company. One memorable meeting occurred toward the end of 2017, when Bhaskaran
showed a video by Stanford professor Tony Seba about the coming disruption in the auto industry. “He (Seba) said that the whole industry was going to be electric vehicles, and solar would be the power behind the electric and autonomous vehicles would emerge,” explained Bhaskaran. “He said when those three things are in place, it would destroy the internal combustion engine (ICE).” A dramatic point in the video is a 1900 photo of New York City. You can see nearly
Patrick Stuart, Fourslide Department
Rhonda Koscielak, Purchasing/Shipping/Logistics
SPRINGS / Fall 2021 / 51
“ You see the banners and they say: ‘We walk the talk.’ It starts from executive management all the way down; that no one is too good to do anything here… At the end of the day, God has made all of us from the same flesh and bones, and no one is different than anybody else.” 500 horses and buggies and only one car. Seba showed a photo of the same street in New York thirteen years later where there was now only one horse and buggy and hundreds of cars on the street. Similar to how the automotive industry quickly changed society in the early 1900s, Seba said in the video that he believed the EV transition had already started and by 2030 it would be in full effect. Bhaskaran said the reaction among employees four years ago was to laugh. “They basically said, ‘Hey Dennis, you have some great ideas, but this is not even in the realm of things.’” The video prompted a “disruption” at Apex, and the company now has an
52 / SPRINGS / Fall 2021
EV division that Bhaskaran says is not all about automotive. “It’s about providing value-added products to companies who work in this space or those related to wind or solar. We are migrating to what we feel is a major industry change,” said Bhaskaran. After being at 80 percent automotive nearly 10 years ago, the company is now closer to 50 percent.
The Bamboo Tree Bhaskaran analogizes the company’s EV shift in the past five years to a bamboo tree (another video at a continuous improvement meeting). “You plant the seeds and for five years you’ve got to water it, but nothing comes out of the ground. At any
point in those five years, if you give up, the tree dies and you’ve lost everything you’ve invested. But in the fifth year, that little puppy breaks out of the ground and it grows 90 feet in six months.” He says what happens with the bamboo tree over those five years is the building of a root system that’s more than 100 yards under the ground. This provides a foundation to be able to hold up the
bamboo tree when its growth spurt takes place. “Like the bamboo tree, we built a foundation in the EV market nearly five years ago, and after many frustrations, we just recently started seeing the results,” said Bhaskaran. Another growth area at Apex has been in the office furniture business, especially in assembly projects.
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Walking the Talk Not only because of its work in the EV area, Apex believes it has a responsibility to protect the environment and to minimize its carbon footprint. Apex has a 122-kilowatt solar farm in operation just across the street from its main building and adjacent to its warehouse space. According to the company’s website, “This facility generates over 140 MWh of electricity every year, reducing our carbon footprint by over 90 tons of CO2 emissions.” Bhaskaran says the fact that the company has its own solar farm has been a great selling point to show that it is giving back to the community and the world. “I would like to do more as we are able to free up capital.” A series of colorful banners hang inside the company’s manufacturing plant, including one that says “GREAT,” representing Grind, Respect, Empowerment, Accountability, and Teamwork. “You see the banners and they say: ‘We walk the talk.’ It starts from executive management all the way down; that no one is too good to do anything here,” related Bhaskaran. “I’ve cleaned my share of toilets, and anybody else can do that. At the end of the day, God has made all of us from the same flesh and bones, and no one is different than anybody else.” With passion, Bhaskaran believes culture is the most important thing at Apex because it is a family business and based on Christian values. He says, “We are fortunate for God’s hand over our company.” When Apex celebrated its 40th anniversary in 2017, company management purchased something unique to recognize the milestone. “We invested in a yogurt machine for our break room where we have different flavors every week,” said Bhaskaran. “We don’t always do this in the winter, but when it is in use there are employees who like the current flavor and those who don’t. It’s always a subject of conversation!” Bhaskaran and Little are proud of the benefits offered to employees, including the high percentage who participate in the company’s 401(k) program. In addition to that, the company’s employee turnover rate hovers around
12/2/20 7/10/20 4:49 9:43 PM AM
SPRINGS / Fall 2021 / 53
“ Trust is earned and not expected until you show any interest in helping people become successful.”
Jared Newville, Shipping and Receiving
one to two percent. “Our employee base is a good mix of young and old,” said Bhaskaran, noting that the average age is between 40 and 50. “We find a lot of companies are full of what we call ‘silver foxes.’ ” Little noted the number of young
people who work with him in the sales and engineering group. The company has invested heavily in automation. “Through rotations and different things that we’ve done, we’ve been able to increase the amount of productivity we have from our people,” said Bhaskaran. Even though the turnover is low, Bhaskaran says he’s always looking for great employees wherever he goes. He relates a story about hiring Rhonda Koscielak from a local fast-food restaurant, where he frequently stopped to get a sandwich. He noted how attentive Rhonda was with a great memory, a great attitude, and a positive tone. After about 30 days, Rhonda finally came to Apex to meet and fill out an application. Wasting no time, she was hired at Apex. Bhaskaran says after initially
working in shipping, “she’s now a key person on our team who leads all kinds of different functions here, including purchasing, scheduling, and logistics. She has just been amazing.” When it comes to hiring employees, Bhaskaran says it’s all about attitude and the ability to want to learn and make your life better. “If they have those in place, I think we can make winners out of anybody.”
Future Plans When Bhaskaran bought into the company, his two sons were very young, and it was his hope that they might one day join him at Apex. Both sons are currently working at Apex, and whether they continue on to the next generation, Bhaskaran says “Who knows?”
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His oldest son, Jason, is currently learning multiple areas of the plant and has also worked in the quality department. His 19-year old son, Jonah, has spent his summer learning all aspects of the shipping/receiving department and just recently underwent a one-week test run to see if he could do every facet of the department. Bhaskaran says that both of his sons are responsible for coming back to the plant each night for cleanup. “They are responsible for all the janitorial duties, including the bathrooms.” Ben Nash, the son of Apex founder Wayne Nash, is vice president of Apex and oversees the manufacturing activities, “except when I noodle in his way sometimes,” said Bhaskaran with a laugh. There was a time when Ben left Apex to work in the residential building market. When a decline in the housing
industry took place, he asked Bhaskaran if he could come back to the company and help him. “Ben came back around the time that Wayne retired. His dad sold him a 10 percent share and I have the other 90 percent and we’re just growing.” “The company is in a great position for the future for Ben and the boys to continue the tradition of our family and Christian values and to lead Apex into our next opportunities. The ownership is open for all of them,” said Bhaskaran. “We’ll see what happens down the road.” When Bhaskaran is not busy running the day-to-day operations at Apex, he
Bill Conley, Spring Department
“ The company is in a great position for the future … to continue the tradition of our family and Christian values and to lead Apex into our next opportunities.”
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enjoys doing the landscaping at the plant and playing golf with Tom. He’s also an avid college sports fan, especially rooting for his beloved Michigan State University Spartans. Little is married to Victoria and they have three children: Son Ron, who is married to Becca; daughter Ashleigh; and daughter Shelby and her boyfriend, Scott Malvich. Ron and Becca made the Littles grandparents with the 2012 birth of triplets Carter, Cooper, and Conor. With a great sense of humor, Little says when he meets a receptionist (the doorkeeper) at a new company, he tells them they are his second favorite receptionist. “This takes them back a bit, wondering why they aren’t No. 1. My response is, ‘I married No. 1!” Little enjoys a variety of outdoor activities, including golf (of course!), along with sporting clays, snow skiing, pickleball, and boating. In summing up the company’s emphasis on partnerships, Little simply states that people buy from people and that relationships matter.
The 122-kilowatt Apex solar farm adjacent to its warehouse and across the street from its main building.
“Price is an excuse and not a reason to win or lose work. Helping people become successful is an honor and joy that has really made my career successful. If you help people solve their problems they will continue to come back to you with more. Trust is earned and not expected until
you show any interest in helping people become successful.” He concludes by saying, “Everyone has a story. You just need to listen.” n
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Book Corner ©iStockphoto.com/kertlis
The Secret Story of Springs Reviewed by Gary McCoy
T
his is the first review I’ve done of a children’s book, but this is an exception and one that springmakers will appreciate because it introduces young minds to the spring industry. “The Secret Story of Springs” is published by Oxford University Press and written by Jo Nelson. Beautiful illustrations are courtesy of Humberto Blanco. The book is aimed at children 6 to 7 years old, and in 24 pages it helps them understand how many springs may be used in their home (more than 2,000) and in cars, trains, truck and bikes. It also provides a nice definition of how springs work and a historical context of early springs applications, such as Ancient Egyptian tweezers from 5,000 years ago. Springs are described to children as secret devices that are at work all around them. “They cause your toast to pop up, open your doors, help you sleep well and let you bounce high in the air. Sometimes you see them, but often you don’t. They’re coiled up under things and inside things.” I first heard about this book through a blog post by John Binns & Son (Springs) Ltd. in Skipton, England, U.K. The company explained that they offered experience, expertise and advice on the technical aspects of Nelson’s book, which was published in 2020. Nelson specializes in writing books which make educational information interesting and more accessible to children. “The book aims to inform children about the wonderful world of springs, introducing just some of their many applications and technical terms,” explained the company. “It’s a fantastic initiative, and we are happy to have been able to assist in this, alongside our existing work within the education sector.” The back of the book entices children with this statement: “From tweezers to trampolines, bounce into the fascinating world of springs!”
This would make a great gift for children, grandchildren or your local elementary school library. It can be ordered from the Book Depository www.bookdepository. com for US $8.12 with free delivery worldwide. n
Have a favorite business book you would like to tell us about or review? Send your suggestions to Springs managing editor Gary McCoy at gmccoy@fairwaycommunications.com.
SPRINGS / Fall 2021 / 57
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New Professional Certificate Program in Industry 4.0 Offered by MIT
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IT Professional Education has launched a new Professional Certificate Program in Industry 4.0. Taught exclusively online over 12 months by renowned MIT faculty, this unique program will equip technology and engineering professionals in the manufacturing space with the tools, skills, and knowledge they need to excel in the digital age. “From the Internet of Things (IoT) and artificial intelligence, to smart manufacturing and product platforms, technological innovations are powering widespread transformation across the industrial sector,” says Clara Piloto, director of digital plus and global programs at MIT Professional Education. “Our multilingual program will enable professionals to acquire the digital strategies and tools they need to redesign product operations, business models and customer support in an environment that
is technologically and competitively evolving more rapidly than ever before.” The Professional Certificate Program in Industry 4.0 currently includes four core courses offered in both English and Spanish. They include: • Management of Technology: Roadmapping and Development • Designing Product Families: From Strategy to Implementation • Smart Manufacturing: Operations in the 4th Industrial Revolution • Beyond IoT: Sensory Intelligence and Smart Technology In addition to the core courses, the certificate program offers a selection of electives, such as Cloud and DevOps: Continuous Transformation, Blockchain: Disruptive Technology, Leadership and Innovation and Management of Technology: Strategy & Portfolio Analysis. “The fourth industrial revolution is fundamentally disrupting our world. As such, organizations need to build a culture of continuous learning to ensure employees are trained to adapt to these drastic changes,” says Bhaskar Pant, executive director at MIT Professional Education. “We are offering yet another concentration certificate that will provide professionals with a blend of technology and higher-level skills necessary to succeed in the rapidly changing industry landscape.” Registration for 2021 courses is open. For more information, visit professional.mit.edu. n
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Inside SMI ©iStockphoto.com/seraficus
SMI Thanks Sue Zubek For the past 13 years, Sue Zubek has served as art director for Springs. She was responsible for designing each cover of the magazine, along with the layout and design for the entire contents of Springs. In addition, she designed various materials for SMI, including the logo for the Metal Engineering eXpo, along with ads, postcards and other collateral materials. Zubek recently announced that she needed to step away from her duties with SMI to focus on her full-time work as a graphic designer at Quintessence Publishing USA in Batavia, Illinois, along with the needs of her aging parents and her three teenage daughters, Eva, Sonya and Alaina. “Sue will be greatly missed,” said Lynne Carr, SMI executive director. “Sue’s creativity shone through with every issue she helped put together. Sue was an integral part of the SMI family and always acted in the best interests of staff and members.” “I started at SMI at the same time as Sue and Dina Sanchez, assistant editor of Springs, back in 2008,” commented Gary McCoy, managing editor of Springs. “It’s going to be a bit strange to work on the magazine without the steady and creative hand of Sue. Often SMI members have complimented me on the quality of the magazine, and I have always been quick to point out that it’s a team effort. Sue
Outgoing Springs art director, Sue Zubek (right), meets with incoming art director Lisa Haskin to begin the transition process.
was an important part of the team, and I will miss working with her.” “Sue has been a friend of mine for many years, and it was a pleasure to work with her as part of the well-oiled Springs machine,” added Dina Sanchez. Sue is married to Luke Zubek, who for many years served as SMI’s technical director. The Zubeks live in Wheaton, Illinois. Joining SMI as the new art director for Springs is Lisa Haskin. Haskin attended Southern Illinois University at Carbondale, where she received two degrees in graphic design and advertising/marketing. Haskin spent five years as a designer in the college advertising department at Scott, Foresman & Co. in Glenview,
Illinois before joining NeigerDesign Inc. in Evanston, Illinois. She worked there for 11 years as senior art director and later as the company’s studio manager/ art director. Haskin opened her own decorative/ faux painting business in 2000 and closed it in 2007 to care for an elderly parent. Since 2008 she has worked as a freelance graphic designer and has managed a local food pantry since 2007. In 2016, Haskin opened an Etsy shop selling original art, art-related products and other products at www.etsy.com/ shop/HASKINesque. Lisa is married to Paul Haskin and they live in Evanston, Illinois.
©iStockphoto.com/MF3d
Send Us Your News SMI members receive priority placement for their product, company, personnel and events announcements in the magazine. Your news releases should be roughly 50 to 100 words and may be accompanied by color photos (high-resolution .JPEG photos at 300 dpi preferred). Send to dina@smihq.org.
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Inside SMI
ISO/227 – Springs Meeting Will Be Virtual The ISO/TC 227 — Springs meeting was originally scheduled to be held in Las Vegas in conjunction with the SMI Metal Engineering eXpo, but due to the new delta variant, the International Organization for Standardization (ISO) recently announced that all ISO meetings should be held virtually through Sept. 30, 2021. As a result, ISO/TC227 — Springs will meet virtually from Monday, Sept. 27, to Friday, Oct. 1 in half-day sessions, with two working groups scheduled to meet regarding cold formed cylindrical helical extension springs and cold formed cylindrical helical torsion springs. A plenary session is scheduled for Friday, Oct. 1.
Working Group 3 (WG3) is responsible for the development of the new ISO standard “Springs — Measurement and Test Parameters — Part 2: Cold Formed Cylindrical Helical Extension Springs.” A second draft revision is currently being reviewed. Working Group 4 (WG4) is responsible for the development of a new ISO standard “Springs — Measurement and Test Parameters — Part 3: Torsion Springs.” The delegation from China is leading the development of this new standard. A draft standard has been circulated for review. SMI serves as the technical advisory group to the American National
Calendar of Key Events for the Global Spring Industry 2021 Oct. 5 – 7 Wire South America São Paulo Expo Exhibition & Convention Center, São Paulo, Brazil www.wire-south-america.com Oct. 7 – 9 11th International Congress of Springs Barcelona, Spain www.federnverband.com Oct. 26 – 27 WAI InterWire Atlanta, Georgia wirenet.org/events/interwire Nov. 25 - 27 12th WireShow, China International Wire and Cable Industry Exhibition Shanghai New International Expo Centre
2022 Feb. 9 – 11 wire Southeast Asia Bangkok, Thailand www.wire-southeastasia.com
April 22 – 26 SMI Annual Meeting Hyatt Regency Gainey Ranch, Scottsdale, Arizona www.smihq.org May 9 – 13 wire & Tube 2022 Düsseldorf, Germany www.wire-tradefair.com June 7 – 9 WAI WireExpo Dallas, Texas wirenet.org/events/wire-expo Oct. 12 – 14 SpringWorld 2022 Donald E. Stephens Convention Center, Rosemont, Illinois www.casmi-springworld.org Nov. 23 – 25 wire India Mumbai www.wire-india.com
SMI Welcomes New Member Please join us in a warm welcome for SMI’s newest member. BB Spring Technology, Como, Italy and Ft. Wayne, Indiana
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Standards Institute (ANSI) for ISO/ TC227. The role of the U.S. delegation is essential to ensuring that the interests of American spring manufacturers, designers, and consumers are represented in international standards development. In the past, attendees from nine producing-member countries (China, Germany, Italy, France, United Kingdom, United States, Japan, Malaysia, and Thailand) have attended the meetings. For more information about the ISO/ TC 227 — Springs meeting, contact SMI’s technical director, Rick Gordon, at c.richard.gordon@gmail.com.
Useful Fatigue Definitions for Springmakers In the technical committee’s work on the 301 spring design training module, Al Mangels of Lee Spring found fatigue definitions from the Wire Association International (WAI) publication, “The Book of Wire and Cable Terms.” This is a great reference for springmakers and it is free online. Or you can purchase a hardcopy from WAI for $75 (nonmembers), $50 (members). For more information, visit www.wirenet.org/the-book-of-terms.
SMI’s Pooled Employer Retirement Plan SMI has introduced a new 401(k) pooled employer plan (PEP) through Core Financial Partners. The program, Empower Select, was put together through Empower Retirement, the second largest retirement plan provider in the country. Liz Hickox of Core Financial Partners is responsible for SMI’s new program. For more information, contact Core Financial Partners at 401-235-2350 or email Hickox at liz@newportcfp.com.
©iStockphoto.com/Studio-Pro
Committee Connection
SMI Membership Remains Important, and Even More So During a Pandemic
A
s a trade association for the precision mechanical spring industry, SMI was formed in 1933 with 40 member companies. As an SMI charter member, the leaders of The Yost Superior Company in Springfield, Ohio understood early on the value of membership in an organization that promotes the interests of North American springmakers. Dave Deerwester has carried on that tradition, as the current president and owner of Yost Superior and as a member of the SMI board of directors. In that role, he serves as the chairman of the SMI membership committee. “We have seen the value of connecting with other SMI members and the value has definitely increased over the past year,” explained Deerwester. While he says the value of these connections has always been part of why people belong to SMI, Deerwester believes it
By Gary McCoy
“ The amount of collaboration where people work together to help each other is just incredible. I don’t know how often [it is], compared to other industries, that you have competitors willing to help each other out as you do among SMI members. It’s amazing that competitors will help each other buy and sell wire so they can get a job done.”
was heightened during 2020 and 2021 because of COVID and the material and supply issue challenge. “The amount of collaboration where people work together to help each other is just incredible,” related Deerwester. “I don’t know how often [it is], compared to other industries, that you have competitors willing to help each other out as you do among SMI members. It’s amazing that competitors will help each other buy and sell wire so they can get a job done.” Deerwester says there is also great value in being able to pick up the phone and talk to other SMI members about common problems they are experiencing and how they worked toward a solution.
Tangible Savings and Technology Solutions He says the value of SMI membership includes the new pooled employer 401(k) plan that SMI recently introduced. “It will be great to see how the program is received,” he said. “It appears that it’s a program that is going to save SMI member companies, both large and small, a lot of
money in the benefits they offer to their employees.” Deerwester says SMI also provides great value in the area of technology with the number of spring design classes available through the association and the ASD7 spring design software. “Springmakers are very hungry for technical resources, and SMI has made them available through its technical committee and its consultants Rick Gordon, Gary Van Buren and Dan Sebastian.” He says the spring design classes have filled a need for many springmakers, “and at our company, we’ve already taken several of our employees through the training and each of them found the training to be very helpful.” Deerwester also mentioned safety audits and training offered by SMI. “Every other year, we bring SMI’s regulatory compliance consultant, Laura Helmrich-Rhodes, to our plant to make sure we are keeping our employees safe. She provides our management team with suggestions for improvement, but more importantly she provides great value in
Dave Deerwester
SPRINGS / Fall 2021 / 63
Committee Connection
“ We are always looking for ways to reach out to those companies who don’t know about SMI, especially those who have never been a member. We need to help them understand the value of membership.”
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conducting safety training that has been well received by our employees.”
The Value of Benchmarking He says one of the hidden benefits of SMI membership are the great surveys and benchmarking reports. “We enjoy and find the results helpful,” Deerwester explained. “We try to participate in as many of those as we can. We especially appreciate the benchmarking studies and seeing how we are doing compared to the rest of the industry.” He says sometimes companies are reluctant to participate due to concerns about the integrity of the information they share. “SMI uses a third-party company to compile this information, and we’ve never had a problem with preserving the confidentiality of each member’s information.” Calling All Volunteers Deerwester says the number of springmakers is down due to mergers and acquisitions. “And, in light of COVID, we thought we might see a larger drop in members. We are grateful that we have been able to hold our own and not suffer any significant losses. “We are always looking for ways to reach out to those companies who don’t know about SMI, especially those who have never been a member. We need to help them understand the value of membership.” Deerwester says membership has traditionally been a small committee within SMI. “So, we could certainly use more people to join our cause and help us generate new ideas.” He encourages younger springmakers to join the membership cause, especially those who are adept at using social media. “We are doing some social media outreach for the SMI eXpo, but we could use more help to get the word out through the various social media channels, such as Facebook, Twitter and LinkedIn.” To join SMI, contact SMI executive director Lynne Carr at lynne@smihq.org. To join the SMI membership committee, contact Deerwester at dave@yostsuperior.com. n
3/30/21 11:44 AM
New Products ©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey
Secondlife Online Trading Platform for Used WAFIOS Machinery WAFIOS has launched an online trading platform for used WAFIOS wire and tube bending machines, available to commercial users of WAFIOS machines. The new platform enables customers around the world to advertise their used WAFIOS machinery for sale free of charge. The secondhand machinery portal Secondlife provides a platform for commercial users to advertise their used WAFIOS machines, built in 1980 and later, free of charge. WAFIOS provides the platform but does not act as an intermediary between buyer and seller. To ensure that the brand's claim to exclusivity is guaranteed and that fake ads are avoided, the advertiser must register on the website and indicate the 8-digit machine number to place an ad. Advertisers manage their ads themselves; they can edit or delete it after a successful sale. As an additional service, WAFIOS offers customers the possibility to make non-binding service inquiries about their WAFIOS machines by means of the 8-digit machine number. Inquiries for service technicians, an online evaluation of the machine, machine assessments, retrofits, a history of the machine, repairs, operating instructions, available spare parts and tool lists as well as circuit diagrams are available. The WAFIOS customer service checks the availability and feasibility of the respective inquiry by means of the machine number and sends a non-binding offer. The new portal has a responsive design that automatically adapts to the screen of mobile devices as well as desktops. The Secondlife site is secondlife.wafios.com. For questions about the portal regarding the placement of ads or the machine numbers, contact WAFIOS Customer Service at +49 (0)7121/146 274 or email secondlife@wafios.de.
FMU+ Series Universal Spring and Wire Forming System from WAFIOS Also at WAFIOS, the company’s CNC spring and wire forming systems of the FMU + series can be used for a wide range of applications, including the manufacture of torsion springs, extension springs, extended loop springs and bent parts. The basic version of the spring and wireforming system is equipped with eight dynamic energy-efficient CNC axes that are proof of its versatility. Due to a modular structure of the machines, they can be equipped with up to 24 CNC axes so they can be adjusted to customer requirements. A clearly structured input mask on the multitouch monitor guides the operator step by step, from the entry of geometry data to the allocation of tools, to the feasibility
test before production, up to the production of the spring's prototype. Springs are programmed by means of their actual geometry that is shown in a 3D display. The FMU+ series integrates new options, like a simulation of processes and an enhanced geometrical programming function which makes the operation of the machine more comfortable. The standard equipment of the machines now even includes a 3-year license for iQspring+. It enables a simulation of the production sequence and automatic collision control by means of a Digital Twin. The newly developed automatic collision control assists the machine fitter by suggesting adjustments to prevent collisions. The software itself implements different
strategies with which the set-up time for complicated bent parts is considerably reduced. When a production sequence free from collisions has been found, the software will continue to optimize axis traversing paths to further increase the machine's performance. WAFIOS says, “The machine-independent set-up of parts at an external workstation not only increases productivity, but also allows programming activities to be bundled in a central work planning department. The program for which the ideal production parameters have been calculated is then available for the worldwide production network.” For more details, visit www.wafios.com.
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New Products
HMI-4 and HMI-E Control Panel and PLC Controlling System HSI Machinery and FSI has announced the addition of the new HMI-4 & HMI-E control panel+ PLC controlling system, the simplest operation available for a conveyor furnace. Features of the new system include most of the advanced options of the HSI furnaces, and these functions are integrated in one screen. Temperature recording is built-in. The power consumption will be shown on the screen and the kWh will be recorded. The HMI has a reserved plug for a LAN cable and can be set to an IP address as a PC. It can be connected to a network or Wi-Fi and can also be monitored by a smartphone or laptop via VNC (Virtual Network Computing) software. The most important advantage is the HMI-4 can use several different communication protocols, including Profinet (Siemens protocol). For additional information, contact Forming Systems, Inc. at info@formingsystemsinc.com or 269-679-3557. n
VNC remote access for monitoring on a smartphone
Screen
Main
Temperature Chart
Maintenance
Spee & Temp. Controller
Error History
kWh and Temp. History
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New Products
Send Us Your News SMI members get priority placement of their product news. News releases should be roughly 50 to 100 words and may be accompanied by color photos (HiRes .JPEG at 300 dpi preferred). Send to dina@smihq.org.
©iStockphoto.com/RichVintage
Advertisers Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . . . . 11 Admiral Steel (800) 323-7055 . . . . . . . . . . . . . . . . . 8 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . . . .48 Anchor Abrasives (708) 444-4300 . . . . . . . . . . . . . . . . 64 BB Spring Technology +39 031 536584 . . . . . . . . . . . . . . . 18 CASMI www.casmi-springworld.com. . . . . 46 Diamond Wire Spring Co. (800) 424-0500 . . . . . . . . . . . . . . . . 42 Dispense Works (815) 363-3524. . . . . . . . . . . . . . . . . . 9 Fenn (860) 259-6600 . . . . . . . . . . . . . . . . 58 Fives Group www.fivesgroup.com . . . . . . . . . . . 56 Forming Systems Inc. (877) 594-4300 . . . . . . . . . . back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422 . . . . inside back cover
Gibraltar (847) 383-5442. . . . . . . . . . . . . .20, 60 Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . . . . . 3 Interwire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161. . . . . . . . . . . . . . . . . 42 John Evans’ Sons (215) 368-7700. . . . . . . . . . . . . . . . . 55 Larson Systems (763) 780-2131. . . . . . . . . . . . . . . . . 52 Maguire Machinery (609) 266-0200 . . . . . . . . . . . . . . . . 24 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . . . . . 8 NIMSCO (563) 391-0400. . . . . . . . . . . . . . . . . 19 North American Spring Tool (860) 583-1693. . . . . . . . . . . . . . . . . 55 Proto Manufacturing (800) 965-8378 . . . . . . . . . . . . . . . . 31 Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . . . . 54
RK Trading Company (847) 640-9371. . . . . . . . . . . . . . . . . .6 Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . . . . 43 SMI CA, Inc (562) 926-9407. . . . . . . . . . . . . . . . .41 Spring Manufacturers Institute (630) 495-8588. . . . . inside front cover Starrett starrett.comsprings. . . . . . . . . . . . . 53 Tool King (847) 537-2881. . . . . . . . . . . . . . . . . 10 United Wire (800) 840-9481 . . . . . . . . . . . . . . . . 59 Vinston (847) 972-1098. . . . . . . . . . . . . . . . . 14 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . . . . 35 WAFIOS (203) 481-5555. . . . . . . . . . . . . . . . . . 5 Zapp Precision Strip (203) 386-0038 . . . . . . . . . . . . . . . . 17
SPRINGS / Fall 2021 / 67
Snapshot Regional Spring Association Report
Spring industry affiliations: CASMI and SMI. Birthplace: Winamac, Indiana. Current home: Rochester, Indiana. Family (spouse, children, pets, etc.): It’s me, my Alaskan Malamute, Leo, and my girlfriend, Holly. What I like most about being a springmaker: I love that we manufacture a product that is used around the world. It is challenging and rewarding at the same time. Favorite food: I am a meat and potatoes guy! I love steak and pork. I do like a variety of seafood, too. Name: Andrew Pesaresi Nickname: Andy Company name and city: Winamac Coil Spring, Kewanna, Indiana. Brief history of your company: Winamac Coil Spring is a 73-year-old, family owned manufacturing company that was started by Walter Pesaresi. We manufacture compression, torsion, tine, extension springs and wireforms. We are a third generation owned and run company. Job title: Vice President – Division Manager, Wire Forms.
Caption here: is technical advisor to the Institute of Spring Technology (IST) in Sheffield, England. He is also the principal trainer for the spring training cou
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Favorite books/authors: I rarely read but I do like fishing magazines, and any books that are about military and police events, particularly Tom Clancy. Favorite song/musician: I listen to several genres of music. My mood determines what I will listen to that day. Hobbies: Bass fishing (tournaments), hunting, golfing and bowling. Favorite places: Hilton Head, South Carolina, Florida, Tennessee and Las Vegas. Best times of my life: Traveling all over to fish and hunt. I have been privileged to see a lot of different places and meet a lot of people. I also really enjoyed coaching high school bowling for 10 years. It was very satisfying.
A really great evening to me is: Being on the lake in my boat fishing to relax and get away from the day. The one thing I can’t stand is: The selfishness of people! My most outstanding qualities are: A big heart, (being) laid back, and a drive to make things better. People who knew me in school thought I was: A good person who would talk to anyone and showed respect to anyone I met. I knew I was an “adult” when: I had to start working full time and bought my first house. I am still in the same house (20 years later)! If I weren’t working at (Winamac Coil Spring), I would like to: Work in the fishing industry. I wonder what would have happened if: I followed my degree in criminal justice. Role models: My mom and dad, brother, uncles from both sides of the family and my grandpa Weaver. They have always been there and helped make me the person I am today. I would like to be remembered in the spring industry for: Representing Winamac Coil Spring well and to continue the success of the company. But people will probably remember me for: My golf game and fun personality.
©iStockphoto.com/Tryfonov Ievgenii, nicholas belton
Andrew Pesaresi, Winamac Coil Spring NESMA Looks Back and Forward to 2013