Springs fall 2011 vol 50 no4 by Spring Manufacturers Institute

T h e I n t e r n a ti o n a l M a g a z i n e o f S p r i n g M a n u f a c t u r e

Fall 2011, Volume 50 Number 4

A Publication of the Spring Manufacturers Institute

PRINGS

AND

THE

MED CA INDUSTRY

Medical Industry Spring Materials and Applications 21 Strategies for Success in the Medical Springs Market 25 Jim Wood Helps SMI Members Play it Safe 41

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President’s Message From Scott Rankin

Great Customer Service? Don't Forget the Details Customer service is a wonderful idea. We all seem to think this is a very important part of our businesses, but how do we define customer service? The phone company thinks they are doing it by saying that “this call may be recorded for customer service training” and then they leave you on hold for 20 minutes. When the call is answered, the person is never the one who can help you, so you go back on hold. The cable company has not quite gotten it either. They will be at your house to repair the problem sometime between 8 a.m. and 5 p.m. Just sit home and wait for them. Then, when they arrive, they don’t have the part that is broken. So we get to try for another day. This just doesn’t fit my definition of customer service. I look for great customer service everywhere I go. I watch people at stores and I look for great examples at hotels and restaurants. And when I see great customer service, it always comes from a particular person, usually someone who plays just outside the rule book and makes something happen that others don’t see the need to do. I have been blessed to be able to travel in amazing style and so you would think I would see the best of customer service. I have been on the Orient Express and saw good customer service. I have flown first class and experienced poor to mediocre customer service. And I have been treated poorly in some of the greatest restaurants in the U.S. and Europe. But then there is customer service to the extent that I could never have imagined. The amazing service at a castle in Scotland where every need was taken care of and anything I wanted was there within minutes. It was a welcome retreat from the usual mediocre service. I have recently experienced a new level of service that has overtaken anything I have ever known. My family and I were fortunate enough to take an Alaskan cruise this summer. This was not a usual cruise because the crew of the boat was so tuned in to our needs and the details of our trip that each day was filled with surprises of how they could make our trip better. They came up with ways to take care of us that we could not have thought of on our own. They made every moment on the ship an outstanding adventure in customer service. We actually left the boat feeling like we were leaving our family; we felt that these people actually cared about us. This has set a standard that I don’t believe we will ever match and certainly not exceed. I came back to reality and tried to understand what it was that was so great so I could use it at Vulcan Spring. The message was: “The difference was the attention to details.” Every detail was attended to and we were treated with respect and friendship. Our time aboard the ship was never taken for granted. We were treated with the esteem of celebrities and the care of family. I came to my staff and asked: “How can we treat our customers as we would celebrities and family?” I don’t have the answers yet, but we are setting a new standard and looking at our customers with respect and gratitude. I think it will all come down to looking at the details. Everything counts and sometimes we just have to play outside the rule book to make sure we stand out. Succeed with Passion! (and don’t forget the details)

Scott Rankin President, Vulcan Spring & Mfg. Co. scott@vulcanspring.com

2 SPRINGS Fall 2011

SMI Executive Committee President, Scott Rankin, Vulcan Spring & Manufacturing • Vice President, Steve Moreland, Automatic Spring Products • Secretary/Treasurer, Russ Bryer, Spring Team • Immediate Past President, Reb Banas, Stanley Spring & Stamping • At Large, Mike Betts, Betts Spring SMI Board of Directors Tom Armstrong, Duer/Carolina Coil • Dennis Backhaus, Spiros Industries • Jim Callaghan, MW Industries • Ron Curry, Gifford Spring • Ann Davey, John Evans’ Sons • Chris Fazio, Diamond Wire • Kurt Gillespie, Century Spring • Richard Guimont, Liberty Spring • Greg Heitz, Exacto Spring • Gene Huber Jr, Winamac Coil • Miko Kabeshita, Ark Technologies • Steve Kempf, Lee Spring • Brett Nudelman, International Spring • Hap Porter, SEI Metaltek • Byron Ress, Zapp Precision Strip • Richard Rubenstein, Plymouth Spring • Ted White, Hardware Products • Chris Witham, Motion Dynamics Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Sue Zubek, Graphic Designer, zubekdesign@gmail.com Springs Magazine Committee Chair, Richard Rubenstein, Plymouth Spring • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Brett Nudelman, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisor: Loren Godfrey, Honorary Member Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho 1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 • Fax: +81-6-6624-3602 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) 4958588; Fax: (630) 495-8595;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 art created using images from iStock.com: ©iStockphoto.com/ChristopherBernard, ©iStockphoto.com/Aleksandrs Jermakovics, ©iStockphoto.com/Jon Helgason, ©iStockphoto.com/DSGpro

Table of Contents

51 FEATURES

DEPARTMENTS

25 Strategies for Success in the Medical Springs Market By Gary McCoy

2 President’s Message Great Customer Service? Don't Forget the Details

37 Playing Fair Can Get Rough, Part 2 By Michael Lobraico

41 Jim Wood Helps SMI Members Play it Safe By Gary McCoy 45 Deductions: Get 'Em While You Can By Mark Battersby 51 A Renaissance in Manufacturing Jobs? By Gary McCoy

COLUMNS 17

Be Aware Safety Tips Hazard Assessment is a Mandatory Requirement By Jim Wood

IST Spring Technology Cautionary Tale: Springs and the Medical Industry By Mark Hayes

Technically Speaking Medical Industry Spring Materials and Applications By Jim Kobrinetz

7 Global Highlights

14 Regional Spring Association Report 32 Flashback Is Your Spring Business Underperforming? By Paul J. Stewart 55

Springmaker Spotlight Through Doors of Change: A Profile of Tim Bianco and Iowa Spring Manufacturing By Gary McCoy

Inside SMI SMI Staff Visits Members; Economist Set to Address SMI Annual Meeting Next March; Analyzing and Using Salary Survey Data

65 New Products 67 Advertisers’ Index 68 Snapshot Raquel Chole, Dudek and Bock

4 SPRINGS Fall 2011

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Global Highlights North America

Chet Houston, chairman, Bazz Houston; Kim Young (U.S. Congressman Ed Royce’s Office); and Javier Castro, president/CEO, Bazz Houston Co.

The Bazz Houston Company of Garden Grove, Calif. and Tijuana, Mexico recently celebrated its 50th Anniversary with an open house for its key customers. Among the dignitaries who attended were Steve Jones, Mayor Pro tem of Garden Grove, Assemblyman Allan Mansoor (68th District) and Kim Young, director, Asian Community Relations and Affairs for U.S. Congressman Ed Royce (40th California District). The Bazz Houston Company was founded in 1961 by two individuals, Jack Bazz (now deceased) and Chet Houston, who is still active in the company as chairman. Bazz Houston started in a garage with a single machine making stampings. It has grown significantly since then, and now has two manufacturing facilities: Garden Grove, Calif. and Tijuana. Bazz Houston manufactures a wide variety of metal parts: springs; stampings; wire forms; slide products; assembly; and tooling for many different industries, including aerospace; automotive; computers; defense; electronics; hardware; irrigation; medical equipment and devices; recreation; and telecommunications. Many things have changed over the past 50 years, but not the basic company philosophy, which is to offer customers the best overall value, exceptional service and the highest quality product at the lowest possible price. Today Bazz Houston is focused on continuing improvements to the engineering, tooling and quality departments and the expansion of the Mexico plant. The tooling department recently expanded with the

Houston, chairman, Bazz Houston and Steve Jones, Mayor Pro tem, Garden Grove.

acquisition of “Mark of Precision,” a tooling house, and the quality department is in the process of obtaining AS9100 certification. This will be in addition to ISO 9001:2008 registration (California and Mexico). Johnstown Wire Technologies, located in Johnstown, Pa., has announced the installation of a new state-of-theart clean and coat line in their production facility. Total investment for the upgrade is roughly $2.5 million and will offer improved quality and extensive environmental controls. Johnstown Wire Technologies plans to have the new clean and coat line fully operational by early 2012. Johnstown Wire Technologies is a leading producer of high quality cold heading, spring wire, electro-galvanized and aluminized wire. Anchor Danly announced the promotion of Ray Osborne to director of engineering. Osborne, who most recently served as mechanical engineer/business development manager at Anchor Danly, has 16 years of experience in the metal forming industry and will relocate to the Farmington Hills, Mich. office. Osborne will lead Anchor Danly in the development of new products and will also oversee improvements to the company’s current product offering, contributing to the overall success of both the company and its customers globally. Previously, Osborne held an application engineering position with Federal-Mogul Corp. in Southfield, Mich., and also served as technical

SPRINGS Fall 2011 7

services manager at PRONIC, Inc. in Ypsilanti, Mich. A graduate of North Carolina State University, Osborne holds a bachelor’s degree in mechanical engineering and a minor in graphic communications. Thomas Industrial Network has launched Custom SPEC, a complete online program including website development and Internet exposure, to help custom manufacturers and industrial service providers generate more sales opportunities.

8 SPRINGS Fall 2011

These companies face unique challenges when they are trying to reach and engage new prospects through the Internet. Without standard products and services to feature online, they need a different way to promote their industrial capabilities. Recognizing that, Custom SPEC provides a complete online strategy for demonstrating their expertise, as well as portfolios of recent projects that include sheet metal fabrication, coating, injection molding, die cutting, and other services. Custom SPEC is unique in several ways, combining consultation with a team of trained engineers who write, design, and develop each website, and who understand the language of custom manufacturers and their prospective clients; development of a website with content that includes capabilities, specialities, portfolios of sample projects, expertise, applications for specific parts and services, years of experience, and more; and exposure on ThomasNet. com, the leading industrial destination, which more than one million engineers and purchasing professionals visit every month to source products and services. Keats Manufacturing Company of Wheeling, Ill., a custom manufacturer of small metal stampings, wire forms and assemblies, is an early adopter of Custom SPEC. “Since we deployed our new Internet strategy, our sales have increased by 30 percent, and our quotes have more than doubled from 600 to 1,400 in one year. Thomas Industrial Network helped us to reach qualified prospects who would not otherwise have considered us, including one who placed a million-dollar order,” said Matt Eggemeyer, vice president and chief operating officer at Keats. Through ThomasNet.com, Thomas Industrial Network has helped thousands of industrial companies grow their businesses by leveraging a combination of technology and content. Building on this experience, the company’s new Custom SPEC program provides all the tools and resources to drive qualified web visitors, convert those visitors

into calls and RFQs, update content as needed, and measure website effectiveness on an ongoing basis. “Custom SPEC provides custom manufacturers and industrial service companies with a new opportunity to generate more qualified sales leads, penetrate new markets, and be considered for projects that would not otherwise come their way. The Custom SPEC strategy furthers our mission of fueling and supporting businesses in the industrial sector,” said Eileen Markowitz, president, Thomas Industrial Network. Thomas Industrial Network serves manufacturers, distributors, and service companies throughout North America, as well as corporations, educational institutions, government agencies and the military. For more information on Custom SPEC, please contact websolutions@thomasnet.com. The board of directors of MW Industries, Inc. announced the appointment of Scott Keihle as executive vice president and chief operating officer, reporting directly to Dan Sebastian, president and CEO. In this new role, Keihle will have full responsibility for the operational aspects of the company, with operational vice presidents and general managers, vice president sales and marketing and field sales force reporting to him. Keihle has been a member of the MW Industries team since 1996, holding positions in engineering, product development, sales and general management. His most recent assignment was managing the manufacturing and distribution operations in the western half of the U.S. Prior to joining MW Industries, he worked for 19 years at Associated Spring Barnes Group, Inc. in a variety of roles in engineering and general management. Rob Rutledge, a member of the board of directors and a vice president of Genstar Capital, a private investment firm that acquired MW Industries in June 2011, said, “We are pleased to have Scott increase his level of responsibility in the company and have him lead the company’s operation.” Mike Hurt, chairman of the board, added, “This move enables us to continue the growth and development of the company, assuring its continued success.” In addition to Keihle’s new role, Ed Reilly, who previously served as vice president of eastern operations, will become the company’s new vice president of strategic business development.

David E. Purcell joins WAFIOS Machinery Corporation as president. "We are extremely pleased to welcome David to WAFIOS Machinery Corporation as our new president," commented Weigmann. "His diverse background, with a well-rounded base of technical and business knowledge and experience makes him an ideal addition to the WAFIOS management team at this transformational time for the company." Prior to joining WAFIOS, Purcell was the North American national sales manager for Wittmann Battenfeld Inc., the leading global manufacturer and supplier of CNC robots, custom automation and injection molding solutions. Purcell holds an MBA in finance and management from the University of Illinois at Chicago and a B.S. degree in manufacturing engineering technology from Norther n Illinois University. Daniel L. Tetreault joins the company as its vice president, technology. “We are very pleased to have Dan back,” commented Weigmann. “We look forward to utilizing his diverse background to help shape the future of our company.” Prior to joining WAFIOS, Tetreault was technical sales director for Newcomb Spring Corporation headquartered in Atlanta, Ga. Tetreault is familiar to WAFIOS customers from his previous years with the company, when he

Two new executives have joined WAFIOS Machinery Corporation. Dr. Uwe Peter Weigmann, member of the board of WAFIOS AG, announced that "These appointments represent important steps as WAFIOS continues on its path of developing and manufacturing world class machinery. WAFIOS is extremely pleased to have executives of this caliber on our team."

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performed and evaluated the operations of machinery service and training for North America. Tetreault is a veteran of the United States Army who is "proud to have defended the freedoms enjoyed by our country. " He began his career in the industry by completing the State of Connecticut apprentice program for CNC Wire Forming/Toolmaker. He is a graduate of the Bosch Rexroth Motion-Logic in Drive, Multiple Axis program as well as proficient in CAD design and tooling integration.

join the best 26 – 30 March 2012 Düsseldorf, Germany International Wire and Cable Trade Fair Wire, Cable, Fibre Optic, Wire Products and Machinery

Spring Making

Fastener Technology

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wire 2012: Focus on Innovations Welcome to the No. 1 trade fair for the wire and cable industry! This is where you meet the international experts, specialists, innovators and world market leaders of the industry. You will get comprehensive information on the latest developments and future trends concerning wire and cable. wire 2012 is especially focusing on fastener and spring-making technology as well as state-of-the-art machinery and equipment for the manufacturing of springs and fastening elements. A firm date for your calendar – visiting wire 2012 in Düsseldorf!

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10 SPRINGS Fall 2011

Thomas F. Renk, executive director of the Chicago Association of Spring Manufacturers, Inc. (CASMI) recently completed a novel, “Journey for Revenge.” Renk says the book took him four years to complete and falls into the “thriller/espionage” genre. Renk explains that “Journey for Revenge” starts on the morning of September 11, 2001 in New York City with the horrific World Trade Center terrorist act. “The story illustrates the courage, determination and spirit demonstrated by some of the surviving family members of 9-11 victims. While attending grief-counseling sessions, this small group decides to go after Osama bin Laden and al Qaeda on their own. Frustrated with their U.S. government’s progress, they decide to accelerate justice, come up with a plan, and pursue revenge!” Published by AuthorHouse, the 464-page book is available at Amazon.com and at BarnesandNoble. com. You can learn more about the book at www. journeyforrevenge.com. Hickory Springs Manufacturing Company of North Carolina has announced the promotion of Tim Becker to vice president of its Wire Products Group as part of a companywide realignment strategy. In his new role, Becker will assume responsibility for the company’s spring plant and bedding products division while continuing to oversee HS Wire Technology. Becker joined Hickory Springs in 1997 as sales and product manager for wire and has spent the last 12 years as general manager of HS Wire Technology. After receiving his B.S. in business management from Illinois State University, Becker began his career with Laclede Steel, where he was sales manager for wire products immediately prior to joining Hickory Springs. “Tim’s extensive experience in wire technology made him the natural choice for overseeing our spring plant and bedding products division,” said Lee Lunsford, executive vice president and chief operations officer of Hickory Springs. “His expertise will be a valuable resource for continuing to develop and diversify

08.08.11 13:24

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the wire, spring and bedding products that are the foundations of our business and our industry.” On June 28, 2011 Warnock Spring Co. division of International Spring Co. was awarded a certificate of achievement from the Chrysler Corp. in recognition of 2011 model year Outstanding Quality Performance. Joe Goldberg, president, International Spring Company/ Warnock Spring Co. said the award was only given to 144 companies out of 3,000 Chrysler suppliers. "This award was earned by the effort of 100 percent of our employees," said Goldberg.

International Japan Society of Spring Engineers (JSSE) held its technical meeting, including a poster session and general meeting, at Nagoya Trade and Industry Center in Nagoya, Aichi in June. Lectures and committee reports were provided in the main hall. Technical lectures included topics such as the mechanical properties of coating film, the historical properties of springs, internal fatigue fractures in steel, and the effects of shotpeening on suspension springs. A special lecture on “The Present Situation and Future Prospects of Metallic Material for Automobiles” was given by Motohide Mori of Toyota Motor Corporation.

Four technical posters were displayed and explained by the researchers. Awards were given to two based on the participants’ vote. The annual meeting was held following the lecture meeting and five subjects including the election of a new chairperson and board members were approved. A social gathering was also held after the general assembly meeting. Dr. Katsuji Tosha, new JSSE chairperson, made the opening speech followed by a speech from Takehiko Amaki, chairman of Japan Spring Manufacturers Association (JSMA). In less than one year, the two global trade fairs, wire and Tube, will be held concurrently for the 13th time in Düsseldorf, Germany. From March 26–30, 2012, wire – International Wire and Cable Trade

SPRINGS Fall 2011 11

Fair and Tube - International Tube and Pipe Trade Fair, will present the latest innovations from the wire, cable and tube processing industries. At wire 2012, exhibitors from the wire, cable and fibreglass machinery as well as the wire and cable production sector and wire manufacturers and suppliers will present their products. In addition, particular focus will be on two other segments, fastener technology and springmaking. Machinery and equipment for spring and fastener manufacturing

will also be displayed on about 118,000 square feet of exhibit space. The companies participating in Tube 2012 include those for tube accessories, manufacturers and suppliers, tube forming technology, processing machinery and equipment. Tube 2012 will concentrate on its core segments of tube manufacturing and tube processing machinery, fasteners and section technology even more than in 2010. At the 2010 staging, about 10 percent of the visitors were interested in machinery for processing sections, making it a successful debut for this new exhibit segment. In 2010, a total of 2,391 companies (1,217 at wire and 1,174 at Tube) showcased the latest technologies and applications on over 1 million square feet of exhibit space at wire and Tube. About 69,000 trade visitors (some 37,000 at wire and 32,000 at Tube) from 100 countries travelled to Düsseldorf to gather information, get new business contacts and place orders. For further information on visiting or exhibiting at wire or Tube 2012, contact Messe Düsseldor f North America, (312) 781-5180, or visit http:// www.mdna.com. You may also subscribe to their blog at http:// blog.mdna.com, or follow on Twitter at http://twitter.com/ mdnachicago For hotel and travel information, contact TTI Travel, Inc. at (866) 674-3476; fax: (212) 674-3477; e-mail: travltrade@aol.com; or visit www.traveltradeint.com.

Corrections

World Class Worldwide Suppliers of Quality Metal Forming Equipment and Services for Over 100 years

AN SPX BRAND

• Two-High & Four-High Mills • Custom Rolling Mills • Turks Heads • Wire Flattening & Shaping Mills • Swaging Machines • Spring Coilers • Strip & Wire Formers • Wire & Tube Drawing • Rebuilds & Modifications

SPX PRECISION COMPONENTS - FENN DIVISION AN SPX BRAND

12 SPRINGS Fall 2011

300 Fenn Road • Newington, Connecticut 06111 Phone: 860.594.4300 • Fax: 860.667.4667 • Email: precision.fenn@spx.com www.spxprecision.com

In the summer 2011 issue of Springs, the new address listed for JN Machinery should be 1081 Rock Road Lane, East Dundee, IL, 60118. Also at JN, the 50-foot wide oven mentioned should have been a 50-inch wide oven. Springs regrets the errors. u

Contact your dedicated YRC representative at 800.647.3061 or email associations@yrcw.com to learn more. If you are not enrolled in the SMI YRC shipping discount program, you can enroll online at www.enrollhere.net. SPRINGS Fall 2011 13

*IWP

Regional Spring Association Report CASMI to Kick Off Spring World 2012 at October Dinner The Chicago Association of Spring Manufacturers, Inc. (CASMI) will hold its opening event for Spring World 2012 on October 20, 2011 at the Wellington Restaurant in Arlington Heights, Ill. The Spring World 2012 Kickoff Dinner is for CASMI members, suppliers and exhibitors and begins at 5:30 p.m. Back in June, CASMI held its annual golf outing at Pheasant Run Resort in St. Charles, Ill. with over 135 participants in attendance. In addition, the CASMI Day at the Races was held on September 22 at Arlington Park Race Track in Arlington Heights, Ill.

For more information on CASMI, visit www.casmi-springworld.org or phone (630) 369-3466.

Members of the low gross first place team are pictured (l-to-r): Brett Nudelman, International Spring, S J Banas, Rockford Spring Company, Joe Szucs, Interwire Midwest, and Rick Ross, Rockford Spring Company.

in Fullerton. In addition to golf in the afternoon, a dinner will be held in the evening that will include entertainment by a comedian. The association held its Spring Fling in Temecula in May at the Pala Mesa Resort. The event included golf and a winery tour.

For additional information on WCSMA, visit their Facebook page or www.wcsma.us. u

WCSMA to Hold Tabletop Expo The 2011 Tabletop Expo, sponsored by the West Coast Spring Manufacturers Association (WCSMA), will be held Thursday, October 6, 2011 at the Holiday Inn in La Mirada, Calif. The event is held every two years and is scheduled from 3 pm to 7 pm. In addition to exhibits from leading suppliers to the spring manufacturing and metal forming industries, the Tabletop Expo will include technology updates, door prizes, free hors dâ&#x20AC;&#x2122;oeuvres, and a cash bar. WCSMA will hold its annual golf outing on Thursday, November 10th at the Coyote Hills Country Club

14 SPRINGS Fall 2011

The WCSMA Spring Fling in Temecula included golf and a winery tour. Above Left: Lanny Wright, who recently retired from InterWire Products, participated in the golf outing. Above Right: Employees from Newcomb Spring are pictured during the winery tour.

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Be Aware

Hazard Assessment is a Mandatory Requirement Safety Tips

By Jim Wood

ob hazard analysis in your facility is an OSHA mandatory requirement. The purpose of the assessment is to provide a tool for management to help identify hazards, make necessary engineering changes, train employees and select the proper personal protective equipment (PPE) for their employees.

What is a Hazard? A hazard is the potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in an injury or illness. What is a Job Hazard Analysis? A job hazard analysis is a technique that focuses on job tasks as a way to identify hazards before they occur. It focuses on the relationship between the worker, the task, the tools, and the work environment. Ideally, after you identify uncontrolled hazards, you will take the necessary steps to eliminate or reduce them to an acceptable risk level. What Jobs are Appropriate for a Job Hazard Analysis? A job hazard analysis can be conducted on many jobs in your workplace. Priority should go to the following types of jobs:

Jim Wood is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A certified instructor of the OSHA Out-Reach Program, Wood conducts seminars, plant Safety Audits and In-House Safety Trainings. These programs help companies create safer work environments, limit OSHA/Canadian Ministry of Labor violations and insurance costs, and prepare for VPP or SHARP certification. He is also available for safety advice and information by phone at (630) 495-8597 or via e-mail at regs@smihq.org.

• Jobs with the highest injury or illness rates; • Jobs with the potential to cause severe or disabling injuries or illness, even if there is no history of previous accidents; • Jobs in which one simple human error could lead to a severe accident or injury; • Jobs that are new to your operation or have undergone changes in processes and procedures; and • Jobs complex enough to require written instructions. It is necessary to consider certain general guidelines for assessing foot, head, eye and face, and hand hazard situations that exist in your facility and to match personal protective devices to the particular hazard. It is the responsibility of management to exercise common sense and appropriate expertise to accomplish this hazard assessment. The first step in developing a comprehensive safety and health program is to identify physical and health hazards in the workplace. Potential hazards may be physical or health related and a hazard assessment should identify hazards in both categories. Examples of physical hazards include: moving objects, fluctuating temperatures, high intensity lighting, rolling or pinching objects, electrical hazards and sharp edges. Examples of health hazards include: overexposure to harmful dusts, noise, chemicals or radiation and ergonomics. The hazard assessment should begin with a walkthrough survey of the facility, by department, to develop a list of potential hazards in the following basic hazard categories: • • • • • • • •

Impact Penetration Compression (roll over) Chemical Heat/cold Harmful dust Light (radiation) Noise

SPRINGS Fall 2011 17

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You should also review any history of occupational illness or injuries in the facility. Other things to look for during the walk-through should include: • Sources of electricity • Sources of motion and pinch points on machinery • Types of chemicals and dust • Sources of radiation • Sources of high temperatures • Secure storage • Safe walking and working surfaces • Safe egress In addition to developing a list of potential hazards, the walk-through can also be used to develop ideas for engineering and administrative changes that could eliminate the hazard. When the walk-through is completed, the employer must organize and analyze the data to determine what engineering changes in PPE is necessary in each department. Employees must then be informed of all hazards and trained in proper procedures. This could be a job process change or the use and care of all PPE. Documentation of the hazard assessment is required through a written certification that includes the following information: • Identification of the workplace evaluated • Name of person conducting the assessment • Date of the assessment and identification of the document • List of required PPE by department for the facility

Jim’s Regulatory Tip: There are two levels of Electrical Safety Work Practices training for your employees. The first is for non-qualified employees (general work force) and the second is for qualified employees (maintenance, electricians, technicians). Qualified employees must be supplied and trained in the use of personal protective equipment for working safely with electricity. The type of PPE depends on the job’s voltage and amperage of electricity. u

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18 SPRINGS Fall 2011

Cautionary Tale: Springs and the Medical Industry By Mark Hayes

Spring Technology

he medical industry may not be the biggest market sector for springs, but it is still significant. IST often asserts that springs are utilized in every manufacturing sector, and the medical industry is good example to consider in detail. Springs are used in drug delivery, including inhalers; in the production process for pills of all types; in the infrastructure of hospitals for beds, doors, counterbalances; in surgeon’s tools; in medical devices implanted in the body or used in invasive applications; and in monitoring equipment. In addition, the spring industry often makes small metal components that may not appear to be springs exactly, such as staples, orthodontic devices, and even contraceptive devices. Among the most frequently used raw materials for nearly all of these products is 302 / 304 stainless steel, and that is the subject for this cautionary tale. When is stainless steel clean enough for a medical application? Do we need to have fully certified clean room facilities to guarantee that our products are surgically clean? These are frequent questions that IST is asked. The first observation that IST would make is that springs for the medical industry are often made by the medical industry themselves, rather than subcontracted to specialty springmakers. This practice is more prevalent in this sector than any other. There may be sales opportunities here if springmakers can put forth an argument that they could do better

Mark Hayes is the senior metallurgist at the Institute of Spring Technology (IST): The International Independent Centre of Excellence for Spring Technology. He manages IST’s spring failure analysis service, and all metallurgical aspects of advice given by the Institute. He also designs and delivers the majority of the spring training courses that the IST offers globally. Readers are encouraged to contact him with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales. Contact Hayes at (011) 44 114 252 7984, fax (011) 44 114 2527997, or e-mail m.hayes@ist.org.uk.

When is stainless steel clean enough for a medical application? Do we need to have fully certified clean room facilities to guarantee that our products are surgically clean? These are frequent questions that IST is asked.

(commercially, logistically, and technically) than any in-house spring manufacturing operation. The normal process for the manufacture of medical springs is as follows: 1) Purchase stainless steel, either dry drawn (soap coated) or wet drawn. 2) Coil on automatic coiler. 3) Stress relieve heat treat. 4) Prestress (often not done). 5) Clean, or passivate. The medical industry particularly dislikes the yellowish color that occurs during heat treatment. Medical springs can be heat treated at a temperature below 350°C (662o F) so the color is too pale to see, or passivated to remove the color. The yellow color is just a trick of the light – it indicates a translucent oxide thick enough to refract the yellow part of the incoming spectrum. It is a corrosion-resistant oxide that will not harm the performance of stainless steel springs. Notwithstanding, the corrosion resistance of 302/304 stainless steel springs is enhanced by passivation in accordance with ASTM A380. IST utilizes five percent nitric acid, and has shown that a direct result of passivation is an increased number of hours’ exposure to salt spray conditions before the onset of red rust. But there’s a word of caution – long term storage of these stainless steels in a saline solution could lead to a risk of red rust.

SPRINGS Fall 2011 19

©iStockphoto.com/PLAINVIEW

Figure 1: Dry drawn stainless steel x 400

Figure 2: Wet drawn stainless steel x 400

It will still be difficult to say that the stainless steel is surgically clean after acid passivation, because there will be washing and drying to remove the nitric acid The surface of stainless is always rough, as shown in figures 1 and 2, so it will pick up dust and other dirt very easily unless kept permanently in clean room facilities. It is my experience that cleaning needs to be accomplished as carefully as possible, but there is

not generally a need for springmakers to have a clean room, at least for the medical industry. The moral of this cautionary tale is that the medical industry is one that offers good commercial potential to spring manufacturers. Medical springs are often assembled, sealed and used only once, and concerns about cleanliness are often unfounded or exaggerated. u

Spring Testing & Failure Analysis 1.866.263.9268 sales@exova.com www.exova.com 194 Internationale Boulevard Glendale Heights, IL 60139

20 SPRINGS Fall 2011

Medical Industry Spring Materials and Applications

Technically Speaking

By Jim Kobrinetz

upplying material and components to the medical industry can be both a profitable and stressful task. Medical components and supplies maintain reasonable profit margins, and as baby boomers age there will be an increased demand for medical intervention in the aging process. On the other hand, the liability involved, and the resulting stringent quality and consistency demands of medical equipment and device suppliers create a high performance burden for any manufacturer venturing into this field. Spring manufacturers supply springs and a variety of other components such as staples, clips, and cable guides. These are used in stents, pacemakers, filters, monitoring and metering devices, probes, and orthopaedic implants, as well as other applications. The applications range from equipment external to the body, to permanent implants or invasive devices such as endoscopic probes and surgical tools. In all cases, the potential high liability and stringent industry and FDA regulations place a high premium on consistency, repeatability, and reliability. Slight color variations, for instance, or a single item with a mechanical imperfection are cause for enhanced inspection and possible rejection of an entire lot of material, along with a Corrective Action Request (per ISO 9000/9001/9002 ). Springs and wireforms used in external equipment and devices tend to be made from typical industrial

Jim Kobrinetz is the technical director of the Spring Manufacturers Institute, providing failure analysis services, technical assistance and educational seminars to the spring industry. A graduate of the University of Illinois at Chicago with a B.S. degree in engineering, he has nearly 30 years of experience as a metallurgical engineer with leading corporations and testing laboratories. He has over 15 years experience with medical devices, implants and implant materials. Readers may contact Kobrinetz by phone at (630) 495-8588 or e-mail at jim@smihq.org.

ÂŠiStockphoto.com/fanelie rosier

One of the more interesting implant alloys is Nitinol, nickel-titanium shape memory alloy. This material demonstrates the ability to maintain a â&#x20AC;&#x153;memoryâ&#x20AC;? of its original shape at a particular temperature. If the alloy is deformed, then cycled through the original temperature, the part will return to its original shape. While the most familiar use is in eyeglass frames, nitinol also has orthopaedic uses.

alloys. Stainless steel types 302 and 304 are common, as well as 17-7 PH. Stainless steels and similar materials tend to be used even in external devices because of the harsh cleaning and sterilizing regimens. Biocompatibility concerns dictate the materials used in implants. Long term stability in the aggressive human body environment dictates the use of enhanced grades of stainless steel, titanium, and cobalt alloys. A common implantable grade of stainless steel for springs is ASTM F138 316LVM stainless steel. This grade differs from 302/304 stainless steels by an additional 5 percent nickel and the addition of 2.25 percent - 3 percent molybdenum. These elements, in particular the molybdenum, increase the corrosion and pitting resistance of stainless steel. Titanium and cobalt are the other main implant alloy groups. Both of these alloy groups demonstrate long-term biocompatibility. Commercially pure (CP)

SPRINGS Fall 2011 21

temperature, the part will return to its original shape. While the most familiar use is in eyeglass frames, nitinol also has orthopaedic uses. Since altering the chemistry changes the cycling temperature of nitinol, surgical staples are designed to “remember” a specific shape at the human body temperature of 37oC (98.6oF). Surgery is then performed in a briskly air conditioned operating theater, during which the surgeon stretches and bends the staple while positioning it in the patient. When the suture is closed and the staple stabilizes at body temperatures, the staple returns to its original “remembered” shape clamping together the parts into which it was inserted. Endoscopic devices typically have stringent material per for mance r equir ements, requiring a high strength-toweight ratio, especially as these devices become longer and probe ever smaller locations. Also, while they must be compatible with the human internal environment, long-term stability is not an issue. Common alloys include 50+ reasons to select Elgiloy as your exotic alloy supplier. MP35N cobalt alloy, 302 and 304 stainless steel, and Ti 6Al-7Nb. Cardiac and vascular therapy devices use all of these alloys, as well as precious metals, for conductivity, X-ray imaging clarity, or lack of reaction in Strip & Foil Wire & Bar Strip, Foil, Wire and Bar. an MRI field. Common precious Elgiloy Elgiloy metals in these applications Precision rolled strip: .001 to .100 Haynes Alloys Hastelloy B3 Wire diameters: .001 to .825 include platinum, silver, and Bar diameters: .062 to .750 Hastelloy B3 Hastelloy C22 tantalum. Shaped wire A spring manufacturer which Hastelloy X Hastelloy C276 supplies the medical industry 10 lbs to 10 tons, delivered to meet your schedule. Hastelloy C22 Inconel 600 faces considerable challenges Hastelloy C276 Inconel 601 To find out more, contact us at wire@elgiloy.com and rewards. However, whether Inconel 600 Inconel 625 or strip@elgiloy.com or call 847-695-1900. working with exotic implant Inconel 601 Inconel 718 materials or with familiar alloys, the Inconel 625 Inconel X750 path to being a successful medical supplier lies in the fundamentals. Inconel 718 Monel Alloys Rolling to Meet Your Schedule A good quality system, consistent Inconel X750 MP35N and honest oversight, and open Incoloy 800 Nimonic 90 communication are hallmarks of a Alloy L 605 NiSpan C successful medical manufacturing Monel 400 Rene 41 s u p p l i e r. A d h e r i n g t o a n d Titanium Alloys Alloy 20 improving your good business CP Grades 1,2,3,4,7,9,11 practices are keys that can open A-286 Elgiloy Specialty Metals Beta 21S the door to future profits. u www.elgiloy.com AL6XN Elgiloy is a trademark of Elgiloy Specialty Metals Rene 41 300 Series MP35N is a trademark of SPS Technologies Haynes 25 is a trademark of Haynes International, Inc. Stainless

titanium, Grades 1–4 (ASTM F67) and Ti 6Al-4V ELI (ASTM F 136), are the workhorse titanium grades. Implantable cobalt alloy spring materials include Elgiloy, a grade originally developed by Battelle Laboratories in the late 1940s for the Elgin National Watch Company for watch springs. One of the more interesting implant alloys is Nitinol, nickel-titanium shape memory alloy. This material demonstrates the ability to maintain a “memory” of its original shape at a particular temperature. If the alloy is deformed, then cycled through the original

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22 SPRINGS Fall 2011

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http://ing.us www.ingretirementplans.com Insurance products, annuities and funding agreements issued by ING Life Insurance and Annuity Company (“ILIAC”) One Orange Way, Windsor, CT 06095, which is solely responsible for meeting its obligations. Plan administrative services provided by ILIAC or ING Institutional Plan Services, LLC. All companies are members of the ING family of companies. 2011 23 Securities distributed by or offered through ING Financial Advisers, LLC (member SIPC) or other broker/dealers with which is hasSPRINGS a selling Fall agreement. 3019114.C.S-3 (8/11) © 2011 ING North America Insurance Corporation C#

24 SPRINGS Fall 2011

©iStockphoto.com/MichaelSvoboda

©iStockphoto.com/Max Delson Martins Santos

©iStockphoto.com/Andrei Malov

Strategies for Success in the Medical Springs Market By Gary McCoy

Tight tolerances, exotic materials, strict documentation and repeatability are among the challenges faced by springmakers who make springs (compression, extension, torsion and micro), flat forms, strip forms, guidewires and other metalforming materials for the medical industry. The types of products made for this market are endless in variety: diagnostic equipment, dispensers, hearing aids, pumps, pacemaker components, implants, wheelchairs, prosthetics, orthotics and much more.

©iStockphoto.com/Roman Milert

©iStockphoto.com/nikamata

©iStockphoto.com/tunart

©iStockphoto.com/Michael Courtney

SPRINGS Fall 2011 25

©iStockphoto.com/tunart

“It’s a unique market with unique requirements,” explains Scott Forsythe, president of Medicoil, a division of R&L Spring Company, Lake Geneva, Wis. R&L Spring started in 1972 by Forsythe’s father, Royden. Forsythe says the medical market “really wasn’t there when my dad started R&L. We had a lot of expertise in fine wire because we used to make a lot of springs for switches and locks and stuff like that. Having that experience was an important bridge for us to get into that (medical) market.” Forsythe says R&L got into the medical market almost 20 years ago through one of the company’s manufacturers’ representatives who brought the opportunity to them. “We had done some medical applications prior to that, but it was just springs and not implantable stuff that is our mainstay today.” Even though they had been in the medical market for over a decade, Forsythe says they decided to form Medicoil about 12 years ago for marketing purposes. “We were trying to create a brand specific to that market which is completely different from the commercial spring market,” he explained.

Wire Guidance Acme Monaco has been making products for the medical industry going back to the early ‘80s. George Fournier, vice president of engineering for Acme Monaco, says one of their largest product lines is in guidewires. Guidewires are used and placed inside a human body by doctors through an artery or vein to get to a specific area, such as the heart. Fournier says sometimes a catheter fits over it. He says the company’s guidewires are fairly rigid in order to maneuver around vessels into the area where the work is to be performed. Once the procedure is completed, the guidewire is extracted and thrown away. Acme Monaco complies with the ISO standard 11070 for guidewire. Fournier says it was a long process to achieve this when they applied to have their 510(k) approved by the Food and Drug Administration (FDA) back in 1983. Section 510(k) of the Food, Drug and Cosmetic Act requires device manufacturers who must

26 SPRINGS Fall 2011

register, to notify the FDA of their intent to market a medical device at least 90 days in advance. “We had to list with the FDA all the different guidewires that the 510(k) would cover and all the tests that were performed on the products,” explained Fournier. “Before we could produce anything for the market we had to have the 510(k) approved.” The company is certified ISO 13485, which is a standard that represents “the requirements for a comprehensive system for the design and manufacture of medical devices.” It specifically covers the requirements for inspection and traceability for implantable devices. Medicoil is also certified to this standard. While ISO 13485 is generally harmonized with ISO 9001, a major difference is that ISO 9001 requires the organization to demonstrate continual improvement. However, ISO 13485 requires only that they demonstrate the quality system is implemented and maintained. For Acme Monaco and springmakers who participate in the medical industry, that standard translates to an important manufacturing key: repeatability. Because any change to a medical-related product, even an improvement, would require the product to be resubmitted to the FDA for approval, this could ultimately cause manufacturing delays. “You just can’t make any changes,” said Fournier. “If you make a change to the guidewire you have to alert all your customers and then you have to go through the whole testing process again.” In addition, Fournier says product labeling is very important. “If you call for a 32 guidewire and you send a 35, this could be a real issue when the doctor pulls it out in an operating room,” said Fournier. He notes that most doctors would realize the difference. But he cautions: “It’s an invasive device that can severely injure the patient.” Due to the fact that Acme Monaco produces millions of guidewires each year, all around the world, Fournier says there is a lot of responsibility that a springmaker takes on. As a result he says Acme Monaco keeps stringent records on every guidewire they manufacture. Fournier says other requirements involve packaging and cleanliness. “It is almost necessary to be in a clean

For springmakers who participate in the medical industry, that [ISO] standard translates to an important manufacturing key: repeatability. Because any change to a medical-related product, even an improvement, would require the product to be resubmitted to the FDA for approval, this could ultimately cause manufacturing delays. “You just can’t make any changes,” said Fournier. “If you make a change to the guidewire you have to alert all your customers and then you have to go through the whole testing process again.”

room to package and assemble medical products. There are certain precautions that you have to take. Commercial products are not as fussy as medical products.” He said each month they send their products out for testing to make sure there are no particulates or bacteria. “You have to constantly look at your process to ensure that you’re meeting the requirements of the FDA.” Since Acme Monaco makes their own finished products, the certifications and standards they must meet are more stringent than what other springmakers face who supply components to a customer who ultimately assembles the final product.

Furthermore, Forsythe says they work with extremely small wire sizes. With these smaller wire sizes he says: “You have to have people with unique talents and patience to work with that size of wire.” To advance their business and meet requirements, Medicoil built a modern, clean facility around the medical industry. “We have a class one thousand clean room at our facility that we built a few years ago to be able to do sub-assemblies; to where our customers can take our product and go right to their clean room and assemble them.” In addition, to special cleaning systems and clean rooms he says they also have the capability to do laser welding, along with special handling and packaging.

Sharing Resources Forsythe says the achievement of obtaining the ISO 13485 standard last year resulted from larger device manufacturers they work with who insisted that their suppliers, like Medicoil, be certified to that standard. He says no other certifications are needed unless you’re going to manufacture a finished product. “If you’re making end user products then you’ve got to go through more stringent FDA registration and testing and all kinds of things to support the quality of what you’re putting out in the field,” Forsythe explained. “You know we’ve kind of stayed under the radar on that.” Forsythe says one of the greatest benefits of being in the medical market has been the sharing of resources between R&L Spring and Medicoil. “We’ve learned things in making components for medical that has brought R&L Spring up a notch in terms of our manufacturing capabilities.” For any company that aspires to be in the medical springs market they have to understand that tolerances are much tighter. Forsythe says there is more detail in the workmanship. “The tolerances are like a third or a quarter tighter that the typical industrial application.” He also explained that the materials they use are primarily 302 or 304 stainless steel. Though he noted that with most of their medical applications, no coatings are used on the materials and some are diamond drawn without lubricants.

SPRINGS Fall 2011 27

Trade Knowledge For springmakers who are considering a foray into the medical device industry, one of the best ways to become educated is attending trade shows. UBM Canon offers several different Medical Design and Manufacturing (MD&M) conferences and trade shows. The events are similar, with many of the same exhibitors, the only difference being the geographical location. MD&M Chicago was held in September 2011. Still to come in the next year: MD&M Minneapolis, November 2-3, 2011; MD&M West, February 14-16, 2012 in Anaheim, Calif.; MD&M Texas, March 14-15, 2012 in Fort Worth, Texas; MD&M East, May 22-24, 2012 in Philadelphia, Pa.; MD&M Brazil, June 26-27, 2012 in São Paulo, Brazil; and MD&M Florida, March 6-7, 2013. The organization is also holding an online convention, MD&M ONLINE (mdmonlineevent.com), from December 13-14, 2011. Another conference to consider is the Design of Medical Devices Conference (http://www.dmd.umn.edu/) which is scheduled for April 10-12, 2012 at The University Hotel Minneapolis (Minn.).

28 SPRINGS Fall 2011

“We do quite a few unique things,” admitted Forsythe. “In fact some of the things we manufacture we cannot display at trade shows due to the confidential nature of what we’re doing for some of the larger companies.”

Gaining a Foothold Acxess Spring, located in Riverside, Calif., has been in the medical springs field for over 13 years now. They first got into the market through a manufacturer who needed a prototype for a medical device they were hoping to manufacture. Alfonso Jaramillo, founder and president of Acxess Spring, says that one contact “unfolded into a whole line of making prototypes for this one product.” The benefit of this contact allowed Acxess Spring to enter a field they had never been a part of. “We learned a lot of things along the way through working with this company,” explained Jaramillo. “That’s really what got our foot in the door to be able to break into the medical industry.” Though he admits their entry into the medical field was not necessarily easy. “That first prototype was a doozy. That was tough.” Since that time, the medical field has become an important part of their business, making up about 15 to 20 percent of their annual volume. Jaramillo says the opportunities are good in the medical field if you are able to partner with a medical company that has a good, up-and-coming device. He says Acxess Spring was fortunate to work with Bayer Medical to develop a product similar to the Epi-Pen, called the Twinject, that would provide two doses of epinephrine. He said they worked six or seven years prototyping before the product launched and went into major production. “We got a lot of notoriety for the design elements and won some awards,” explained Jaramillo. He says the valuable experience they gained from working with Bayer helped them break into other companies. “It’s a good industry,” said Jaramillo of the medical device field. “We are happy and proud to be a provider of springs to cure people; to help people.”

He says they’ve especially learned that if they get an order from a customer and determine that it is something that they cannot safely produce, they must let the customer know right away. “If we feel it is not safe, we write a formal letter saying we will not produce this product any longer because of these dangers,” he detailed. “That way you’re covered if the FDA ever comes in and questions your reasons for refusal to manufacture.”

efficiently. Jaramillo says that experience has allowed Acxess Spring to try things that perhaps no one else would try. He cites a small torsion spring that Acxess Spring was asked to produce for Starkey Laboratories, a company that makes hearings aids and hearing protection products. He says they found a way to manufacture this spring at a lower cost than anyone else. Forsythe says medical was a market “we didn’t even know we could do business in. Looking back at where we were when we got in, I don’t think we could have gotten into it today the same way just because of the increased requirements.”

Like Forsythe and Fournier, Jaramillo agrees that tolerances are tighter dealing with “plus or minus one thousandths on the lenient side.” In addition, he says they often work with exotic materials “because these engineers want to really push the envelope all the time. Normal materials like music wire or regular stainless steel really doesn’t do the trick for the devices they are now developing.”

Lessons Learned Jaramillo says medical springs can run the gamut from a simple compression spring to very difficult springs. He says the lessons he’s learned have come from being able to produce a very difficult spring

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He’s learned that being in the medical market requires having good personnel and a “fair amount of resources behind you to stick it out.” Jaramillo agrees that resources and patience are paramount. “These engineers might come to you 20 different times and you have to prototype 20 different times...you can lose your patience with engineers as they go round and round and round.” He says working with engineers to guide them in the design process will end up helping everyone in the long run. The result is a good design that’s functional and repeatable with high cycles of life. Fournier says his company has learned how the FDA operates and to formulate an efficient

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30 SPRINGS Fall 2011

manufacturing process. One certainty for the medical market, explains Fournier, is that they are always learning something new. “We learn about procedures and where these things are used. We know what could be dangerous,” said Fournier. He says they’ve especially learned that if they get an order from a customer and determine that it is something that they cannot safely produce, they must let the customer know right away. “If we feel it is not safe, we write a formal letter saying we will not produce this product any longer because of these dangers,” he detailed. “That way you’re covered if the FDA ever comes in and questions your reasons for refusal to manufacture.” In fact, Fournier says an FDA inspection can be intimidating. “These guys (FDA) could put you out of business,” he warns. “We keep stringent records so we can substantiate everything we’ve done.”

Breaking into Medical Is it possible for springmakers who don’t currently have business in the medical market to break into it? “It’s a mature market,” says Forsythe, “I don’t know if it would be as easy to get in today as it was 15 or 20 years ago.” He says increased scrutiny by the FDA makes it difficult. “If you’ve got a unique capability that suppliers in the market don’t currently have, there are certainly opportunities,” said Forsythe. But he cautions that “you’ve got to have staying power to get into this market.” He cites the long cycle times it can sometimes take to develop new products. Forsythe said it is not uncommon for Medicoil to prototype a device and then wait three to five years before production begins. “So unless you’ve got business there and a willingness to invest a significant amount of dollars over time to wait out the process, it may not be the market that every company is interested in entering.” Ashley Hughes, executive coordinator at Acxess Spring, says from a numbers standpoint, medical is

probably in the top three or four industries that are tough for springmakers to enter. “It’s kind of a ‘Catch-22,’” explains Hughes. “In order to get a medical job, you have to show experience. And in order to get experience you have to have a medical job.” She says breaking into a new industry is difficult no matter what segments a springmaker is trying to enter. “But especially when you are talking about the restrictions that the medical industry brings. Springs have to be made to a certain standard; you can’t haggle with that because of price.” Forsythe says getting into the medical springs business today is much like automotive was several decades before: if you are not recognized now it’s difficult to get companies to talk to you. When it comes to breaking into the medical industry, Fournier believes that the most basic requirement is having the means to produce the springs or wireforms needed. Like Forsythe, Fournier says it’s difficult for new suppliers to be recognized by potential customers. He says even if a new spring company was given the opportunity to manufacture for medical, they would

need to supply a potential new customer with product for testing. This would reassure the new customer that product quality is acceptable. Four nier believes the other alter native for springmakers is to hire a consultant with knowledge of the market to help guide you through the steps and is willing to advise the medical department within your company during the process. With the right equipment, personnel, and contacts, the medical market is an area that springmakers should consider. Springmakers who choose this route will need to comply with FDA and relevant ISO standards, provide proper packaging, correct quantities, certification paperwork, along with patience and financial capital. Whether the medical market is a healthy, long term growth strategy for springmakers is a decision that each individual company will have to make. u

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SPRINGS Fall 2011 31

Flashback Is Your Spring Business Underperforming? By Paul J. Stewart

(Editor’s note: This article originally appeared in the May 1991 issue of Springs. Since this article was written during a time of a recession in the U.S, please note the parallels to today’s market.)

s your spring manufacturing business underperforming? Is it in financial trouble? What can you do about it? The spring manufacturing industry is very competitive and the recession that we are now in is making it even more difficult. However, don’t assume that a soft market makes it impossible to improve your company’s performance. You can take steps now to significantly improve your profitability, ease the cash situation, and vastly improve relations with your suppliers and bankers.

Know the Early Warning Signs of Trouble Monthly income statements often do not tell the full story. First, they are often not timely, and accounting adjustments or changes in the way inventory is valued frequently distort the picture. Some indicators of potential problems may surface if you pose the following questions: • Are you starting to incur penalty fees from your bank? • Are there more phone calls today from suppliers wanting payment than there were two months ago? • Is your firm having more difficulty collecting amounts owed to it? • Is your controller “holding checks?” • Are you behind on your payroll tax payments? A “yes” to anyone of these questions is an indication that there is trouble ahead. The general tendency is to ignore these early warning signs as you tend to the day-to-day affairs of the business. You must not do this. These signs tell you that “business as usual” is no longer satisfactory, and that quantum improvements in the way business is conducted—improvements in manufacturing efficiency, marketing focus, and cash management—are needed.

Know What to Do, and What Not to Do Many business owners and senior executives are reluctant to call upon management consultants for help. Too often, this hesitancy is well founded. The consulting profession itself, and many consulting firms specializing in effectuating business turnarounds, have not earned the best of reputations. Two practices are quite common within the turnaround management consulting industry that you should be aware of to avoid being victimized by them. First, turnaround consulting firms frequently “load up” a client engagement with more consultants than are necessary. Second, these consultants will more likely than not be accountants or inexperienced junior consultants, rather than seasoned “operating types.” Frequently, the outcome is large fees with very little positive achievement. You should not be afraid to seek help, however. A good consultant can save your business many times its fees. Remember, the future of your business is at stake. Good consultants who are familiar with your industry and have strong marketing and manufacturing backgrounds have two distinct advantages over you. 32 SPRINGS Fall 2011

First, they are able to “step back from the trees and see the whole forest,” which is often very difficult for a company owner or chief executive. Also, a good consultant knows what works and what doesn’t from his experience with businesses in the same industry with similar problems. When seeking professional help, start with your banker. This will demonstrate to him that you have recognized that there are problems with the business and that you intend to address them. Very often, he will be able to suggest several consulting firms. Interview these firms, and the specific consultant that would be assigned to you. It is very easy to get a bad consultant within a good firm. Be sure your consultant has operating experience— that is, manufacturing and marketing experience. If you decide to make use of the services of a management consultant, do not be afraid to terminate the engagement quickly. The most frequently asked question is, “How can you tell if a consultant is good?” The answer is simple. A good consultant will know after one day, two days at most, what the specific problems are and what should be done. Also, he should be able to talk in terms of specific solutions that can be implemented quickly. If he talks in generalities, makes a case for more time, and prepares a questionnaire to solicit the views of your employees, then very likely you do not have a good turnaround consultant. Don’t be afraid to follow your instincts and cut your losses. After you have found a good consultant, don’t be surprised if many of his recommendations you thought of long ago, but did not act upon. The consultant is here to make sure that prompt action is taken.

Are you aggressively managing cash?

This means involving yourself in the collection of receivables, and, if necessary, negotiating extended terms for payment of past due payables with your vendors. It’s amazing how flexible vendors can be if presented with a payment plan even a 36-month payment plan.

Is your manpower level appropriate given the current volume of business?

Cutbacks or, better yet, shortened work weeks may be necessary. So called “fixed” staff departments are not fixed and should not be immune from review. It is amazing what a workforce can accomplish and is willing to do when confronted with a difficult situation. Don’t be afraid to level with your workforce since in the end it is your employees that must get your company through the current difficult period.

Are you measuring shop floor performance every day so that you can identify the poor performers, work with them or make the needed changes?

Doing this requires a production standards system and this may be readily implemented.

Eleven Questions That Can Save Your Company Big Money Experience within the spring manufacturing industry has shown that even in a weak market operating performance can be significantly improved by addressing the following issues:

Is your inventory too high and is it unbalanced?

When was the last time you raised prices, except for a pass-through of material cost increases?

The answer is probably “yes” to both. You don’t need a sophisticated MRP system to reduce inventory levels, while still meeting your production requirements. This inventory reduction will greatly help your cash situation and your relations with vendors.

Companies in financial difficulty have a tendency to let their pricing slide. You may very well be able to increase prices without losing business.

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6 7

Are you running high levels of overtime, even in a soft market?

repeat the error. Find out why the original estimate was incorrect and fix that process.

If so, your manufacturing operation may be out of control.

Are your company-paid employee benefits in excess of 20 percent of your payroll?

If so, you are paying too much. A great deal can be done here to reduce your costs without seriously affecting your employees’ welfare.

Is there a written production schedule for all departments to follow?

Performance must be measured within the context of a daily workload requirement. It is not enough for an employee to know that after she/he finishes the current job another will follow. She/he needs to know specifically what is expected for the entire day.

Do you have a simple system in place for monitoring current performance?

Items such as excess loan availability, quote activity, incoming orders, days’ billing outstanding, operating efficiency versus standard, overtime, and scrap rate should all be monitored daily. Don’t rely on your financial statements for early warning signs of trouble.

Are you really doing all you can to sell the product, either directly or through reps?

Is there a real incentive in the compensation? When was the last time you called upon inactive house accounts?

In addition to making operational improvements in these areas, payment plans can be negotiated with vendors to whom large amounts are owed and overdue. This will “buy the time” necessary for the operational The spring manufacturing business has a high improvements to take effect. Despite soft markets, percentage of repeat business, making it critical to close you can be pleasantly surprised by what you can this feedback loop. It is not uncommon to find that accomplish in boosting your company’s performance. actual job costs were considerably above the original Don’t be afraid to seek professional consulting help. estimate. A job which was expected to be strong on Above all, recognize the early warning signs of trouble, AWire_Springs_Spring Issue.qxd 1/2/11 16:48 Page 1 the plus side may, in fact, be a definite negative. Don’t and do take action to correct the situation. u

Is actual cost accounting data being accumulated for each job and compared to the original estimates that were used for pricing?

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36 SPRINGS Fall 2011

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Playing Fair Can Get Rough, Part 2 By Michael Lobraico

(Editor’s note: The following is based on one of Michael Lobraico’s clients, John Poole. All of the names and telling details have been changed to preserve client privacy.)

fter resolving the months-long wrangling among their children, Tony and Lucy, the second-generation owners of the Poole family HVAC business, figured the hard work in their transition strategy and succession planning was behind them. Unfortunately, this misjudgment was about to threaten all the progress we had made. A few months ago, Tony and Lucy called a family council meeting to make an important announcement. When I met with them alone in their boardroom before the meeting, they appeared relaxed for the first time in a long while. Recently their eldest son James had peacefully agreed to leave the business, paving the way for little brother, John, to take over. And John in turn had agreed to a joint presidency with his younger sister, Sarah, after she’d worked as a lawyer in the green sector for a few years. One of the keys to solving the disputes had been the concept of fair vs. equal. Instead of the kids inheriting an equal share of the business, a more sensible and fairer arrangement had been agreed upon in which James would get the cottage while John and Sarah would get the business. And any discrepancies would be made up with other assets and insurance monies. As Lucy explained, everyone was now getting along great

SPRINGS Fall 2011 37

True fairness usually means that everyone has to compromise — give up something so that the larger benefit is shared among the entire family.

and working well together. “This is one of the reasons we called this meeting.” “The other main reason,” Tony said, “is we’re thrilled with John and Sarah’s plan to reinvent this business as a leader in the green sector.” Tony looked to his wife. “And that’s why we feel we would like to step out of the business sooner rather than later—start transferring it to John and Sarah and retire.” Tony and Lucy had previously wanted to stay on for a few more years, so their news surprised me. However, I was used to this kind of sudden change of plans with family businesses. Often when tensions are eased and peace is reestablished, people discover goals and dreams they hadn’t let themselves indulge in before. In this case,

38 SPRINGS Fall 2011

the couple wanted to travel through Europe, spend a few months a year there while they were still young enough to enjoy it. They intended to announce their plans at today’s meeting. I told Tony and Lucy I admired their plans but had some concerns that I’d like to discuss with them before sharing the news with the whole family. Tony shook his head. He and Lucy were eager to get moving on things. “But this doesn’t just affect you and Lucy as shareholders. It has implications for the business and the family,” I said. “And it’s best we look deeper into the feasibility of your plans and how they’ll affect everything before presenting to the council today. Otherwise we might reignite fireworks.” “I think we’re past the fireworks stage,” Lucy said. “The kids will be happy to take over the business in full.” Before I could plead my case any more, John, James, Sarah and Uncle Stan, a minority shareholder, filed into the boardroom. After Tony made the announcement, John reared his head back. “How are you planning on doing this?” “You don’t need us anymore. We’re not going to be much help with the green strategy. So we want to start taking our money out of the business—the equivalent of our salaries, a combination of consulting and directors’ fees and share purchases. You and Sarah will own the business outright in a few years. And as we discussed, James will get the cottage.” John looked to me. “The business can’t afford that. This new strategy is going to require some major investment.” “You can finance the investment,” Tony said. “That’s how we expanded through the eighties and nineties.” Sarah spoke up now. “The cottage is under chattel. It’s not free and clear. It’s how we’re financing the company right now. It can’t go to James yet.” “Hold on. I gave up owning shares for that cottage,” James said. It was my turn to introduce another issue. “Tony, did your annual payout take into account all the benefits you and Lucy would be giving up when you leave the business?”

When he asked me to clarify, I pointed out how the company subsidized their cars, gas, insurance, meals. If all that wasn’t accounted for, he and Lucy were likely to need more for their retirement. Everyone in the room continued to voice their numerous concerns and when the feasibility of Tony and Lucy’s plan finally fell apart, Tony raised his voice. “We’ll sell the business then.” Everyone’s face fell. “Lucy and I have sacrificed a lot for this company and family, and it’s our time now.” “Dad,” John said, “you and Mom deserve to live the life you want, but we need a sound plan. Think about what you’re saying. In a few years, with our new strategy, this business will be worth three times what it is today. You’d be giving all that up. And besides, this is my whole life too. I’m not going to watch it fall into someone else’s hands. I honestly don’t know if…” His voice had started to shake and he trailed off. I raised my hands to settle everybody. “When we originally started working out all the problems, the focus was on the third generation and how to make things fair. But one of the principles of fairness is that it must apply to all the generations.” Looking at Tony and Lucy, I said, “You’ve taken a backseat for a long while. A lot of parents do. And while that’s helped us sort things out with the children, you’re entitled to your share of fairness too. But we have to make sure the pendulum doesn’t swing too wildly here. I certainly don’t want you to give up your retirement dreams, but we have to look at what’s possible—and what’s possible in the context of fairness for all.” “What are you suggesting?” Tony asked. “True fairness usually means that everyone has to compromise—give up something so that the larger benefit is shared among the entire family. John could very well be right—selling now might not be the wisest choice. And if you’re willing to give John a chance with his strategy, and perhaps look at easing into retirement gradually, you might find you’re able to maximize the value you’ve created in the business, which will ultimately give you more to retire on. But you have to be happy with whatever you decide.” Once everyone’s emotions had settled, Tony and Lucy admitted they had prematurely attached themselves to the idea of leaving the business, and agreed to compromise to create a new plan so that everyone got a fair deal. Over the next few weeks, with their team of accountants and lawyers, the Poole family worked

out a transition whereby Tony and Lucy would gradually extract themselves from the business, taking increasingly longer periods of time off each year until, within eight years, they were in full retirement mode. To help finance the buyout and the new green strategy, Uncle Stan reinvested some of his capital. While the cottage would have to remain as chattel for a number of years, James was given priority use of it and was bequeathed it in the will. When I last spoke to Tony, he told me they were experiencing a surge of new business, largely fueled by the bump in morale that the new harmony had inspired. He also mentioned he and Lucy were leaving in a couple of weeks for an extended vacation in Rome. They couldn’t wait. u Michael Lobraico is the founder of NCI Solutions, a company specializing in helping family businesses maximize their potential. For further information, visit www.nci-solutions.com or email mlobraico@nci-solutions.com.

SPRINGS Fall 2011 39

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Jim Wood Helps SMI Members Play it Safe By Gary McCoy “It’s always hard to find someone or something that fits your business operations perfectly,” explains Reb Banas, president, Stanley Spring & Stamping Corporation. “Jim Wood is that unique person that comes in, makes a difference, points you in the right direction and assists in the execution of a proper plan.” Wood, who serves as an independent regulations compliance consultant to SMI, is known for his expertise in helping SMI members with their workplace safety concerns. Plus, as Richard Rubenstein, president of Plymouth Spring Co., Inc. points out: “He’s a nice guy and has become our friend.” Banas, Rubenstein and other springmakers know Wood for the variety of things he can do to help improve the safety of their springmaking operations. His services include conducting safety audits at their

manufacturing plants and employee training for mandated OSHA programs. Wood has worked with SMI and the spring industry for over 15 years. He’s a certified instructor of the OSHA Outreach Program. He’s available to SMI members to answer questions, conduct on-site Safety Audits, provide custom In-House Safety Training and present educational seminars. Wood’s goal is to help springmakers create a safer work environment that complies with federal OSHA, state standards and Canadian Ministry of Labor regulations.

A Valuable Booster Wood has been a fixture at Rubenstein’s plant in Bristol, Conn., having visited the company ever since he started working with SMI.

SPRINGS Fall 2011 41

“Jim comes to see us for two days,” explained Rubenstein. “The first day is a safety audit of our plant, while the second day is training.” Rubenstein says he relies upon Wood for guidance. “So far in four OSHA inspections we have been fined twice, and in both cases, the amounts were reduced to almost nothing (a few thousand dollars). He (Wood) even told us how to get the fines reduced,” said Rubenstein, “and it worked.” The fines, said Rubenstein, were made for “silly things that were easily fixed.” A believer in plant safety, Rubenstein explained that his company’s safety program is good, “and better because of Jim’s input.” Even when Wood is not in Connecticut at Plymouth’s manufacturing plant, “he’s available anytime for a call and advice,” said Rubenstein. “And he never charges for this very valuable ‘booster.’”

Money Well Spent Banas has had Wood out to his manufacturing facility in Chicago for plant audits on nearly eight different occasions, plus additional visits for employee safety training. In describing the experience of having Wood at Stanley Spring & Stamping, Banas says it is “always positive for all involved. “Jim comes in does his business, files his reports, discusses any major or challenging issues upon

Wood has practical experience in plant safety, having served as manufacturing engineering and safety director for 13 years, and vice president of operations for a major manufacturer for 17 years.

completion and he’s on his way. No hand-holding or babysitting needed.” After having Wood so many times at his plant, Banas says Wood “knows our plant, people, and processes.” In summing up his experience in working with Wood, Banas says Wood actually helps add to his bottom line. “Money well spent.”

Improving Safety Steve Kempf of Lee Spring Company has worked with Wood for many years. In just the past year, Wood has conducted safety audits at two of Lee’s manufacturing facilities. “Jim’s reports have not only been thorough, but also extremely valuable as guides to follow in working to improve safety at our facilities,” commented Kempf. Shortly after Wood audited the two Lee Spring facilities, Kempf reports that the company had two OSHA audits conducted. “The money we saved in OSHA fines due to following Jim’s suggestions was almost certainly tenfold the cost of Jim’s services,” explained Kempf. “Furthermore, thanks to Jim’s insights, followed by our actions, we are now in a position where we are considering the SHARP program for at least one of the facilities Jim audited,” said Kempf. SHARP stands for the Safety & Health Achievement Recognition Program, which is an OSHA cooperative program. A company that goes through the SHARP process, agrees to correct all hazards identified by OSHA consultants but benefits by being exempt from programmed OSHA audits. Kempf says they’ve already had a very positive voluntary OSHA visit to assess the company’s readiness for the SHARP program. Expert Information and Consultation For many years now, Vulcan Spring & Manufacturing Co. has been a part of SHARP. As a result, Vulcan Spring president Scott Rankin says they do not use Wood for the company’s safety audits since they have OSHA consultants come out to their plant each year to do that. While Rankin doesn’t use Wood for safety programs or audits, he’s had him out to Vulcan’s Philadelphia area

42 SPRINGS Fall 2011

plant each year for the past five years for the company’s companies have not used him, “maybe just to know where you stand should an OSHA audit occur,” posited right-to-know and training for employees. “He does a great job and covers everyone with the Rankin. “It does take time and commitment but it sure same material in one day,” said Rankin. “That way, we would be better to know than to find out from the know everyone has heard the same thing and they all OSHA inspector.” To contact Wood with your safety questions or to have the same information.” Rankin appreciates Wood’s ability to take a difficult find out more information about his safety audits and training programs, phone (630) 495-8597 or e-mail: subject and put some “life into it. “Since he has a manufacturing background, as regs@smihq.org. u well as experience with the spring industry, he can make it all very fitting for our company,” explained Rankin. “And he talks with people to answer their questions.” Wood has practical experience in plant safety, having served as manufacturing engineering and safety director for 13 years, and vice president of operations for a major manufacturer for 17 years. Rankin says from his conversations with other T H E springmakers who have used Wood’s safety audits, “he does an amazing and complete job.” Rankin says the problem is that Wood cannot fix the problems he finds. “So if you are not willing to do the work after he leaves, it can be T H E a waste of time for you and Jim,” Rankin said. “There can be a lot of work after he leaves and you have to be ready to make the effort to make the changes.” In addition to the great information and work he does, Rankin says Wood is a bargain. “You T H E can’t get the expert information and consultation he provides for anywhere near the price. He is well Hot Roll Bar Products Rod and Wire Products worth every penny.” Rounds Cold-Heading Quality Rounds .250" to 28" Carbon, Alloy, and Stainless As Wood often states, “Your .3125" to 1.5625" Carbon and Alloy Hexes .625" to 2.3125" Carbon and Alloy safety program should not be (In-house Processing) Squares .500" to 12" Carbon, Alloy, and Stainless Flats Inquire Carbon, Alloy, and Stainless costing you money, but making Heat Treated Bar Products Rounds A193B7, F1554 GR105, you money.” Cold Finished Bar Products .500" to 28" A354BC, A354BD, A449, Rounds .3125” to 4” Carbon and Alloy Wo o d b e l i e v e s t o h a v e a A434BC, A434BD,P110, Hexes .625” to 2.25” Carbon and Alloy L80, NACE MRO175 good safety program you must have management commitment, employee involvement, worksite analysis, hazard prevention and control, and safety and health Your First, Last and Only Bar Supplier. training. Melrose Park, IL Detroit, MI Dallas, TX Houston, TX With all the services that Corporate Headquarters 800.877.3830 800.525.7814 800.866.1401 Wood provides, Rankin doesn’t 800.323.0745 understand why more SMI ISO 9001:2000 Certified Supplier • www.kreher.com

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Deductions: Get ‘Em While You Can

By Mark E. Battersby

hanks to the 100 percent “bonus” depreciation writeoffs created by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, many spring manufacturers and suppliers are discovering that capital investments in equipment, machinery and other business assets are more affordable today than ever before. Remember, however, the 100 percent bonus depreciation write-off is available only for qualifying purchases made by businesses in 2011. Those spring manufacturers and suppliers that have hesitated or postponed making capital investments because of the recent economic downturn might now want to consider how the combined use of incentives and the 100 percent bonus depreciation can substantially reduce the cost of capital investments. Even funding those new equipment purchases is easier, at least for a while.

Bonus Write-Off Background Bonus depreciation was originally created in 2002 as a temporary economic incentive, by which companies could immediately deduct 30 percent of the basis of qualifying assets that were placed in service after September 10, 2001 and before January 1, 2005. An increase in the percentage of the deduction in 2003 to 50 percent expired in 2005. Reintroduced by lawmakers in 2008, bonus depreciation has subsequently been extended three times. Although the concept of taking the additional depreciation in the first year is quite simple, changes to the applicable percentage, timeframes during which each is available and variations related to unique types of assets which qualify have made application of the rules somewhat complex. The definition of property that is eligible for bonus depreciation under the 2010 Tax Relief Act is the same as under prior law, but the percentage and placed-in-service dates have changed. The percentage increased from 50 percent to 100 percent for qualifying property placed in service after September 8, 2010,

SPRINGS Fall 2011 45

An SUV in Every Parking Lot In the past, generous tax breaks for gasconsuming heavy SUVs often raised the ire of Congress. However, last December’s Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 actually made tax breaks for these assets even more generous. Although probably unintended, the limited-time 100 percent “bonus” depreciation allowance includes a new, heavy SUV purchased and used for business. That’s right, the entire purchase price can be written-off in the placed-in-service year. A spring manufacturer that buys and places in service a new heavy SUV -– those built on a truck chassis and rated at more than 6,000 pounds gross (loaded) vehicle weight — after September 8, 2010 and before January 1, 2012, and uses it 100 percent for business, may write-off its entire cost in the placed-in-service year. There is no specific rule barring this result for heavy SUVs. Under the 2010 Tax Relief Act, the bonus first-year depreciation percentage is 100 percent (instead of 50 percent) for bonusdepreciation-eligible “qualified property placed in service after September 8, 2010 and before January 1, 2012.” Qualified property includes property to which (MACRS) depreciation applies with a recovery period of 20 years or less. Autos and light trucks are 5-year MACRS property and thus qualify for bonus depreciation (assuming business use excess 50 percent of total use). Since large SUVs are exempt from the luxury-auto dollar caps because they fall outside of the tax law’s definition of a passenger auto, a spring manufacturer that buys and places in service a new, heavy SUV after September 8, 2010 and before January 1, 2012, and uses it 100 percent for business, may write-off its entire cost in the placed-in-service year. There is no specific rule barring this result for heavy SUVs.

46 SPRINGS Fall 2011

and before January 1, 2012. Those within the precision mechanical spring industry investing in qualifying assets will be able to fully deduct the cost during the current tax year. This will reduce taxable income and taxes paid, resulting in an increase in cash flow which can be reinvested in the business.

Expensing Write-Offs Last fall’s Small Business Jobs Act increased the Section 179, first-year expensing dollar and investment limits to $500,000 and $2 million, respectively, for 2010 and 2011. The Tax Relief Act included a $125,000 dollar limit and a $500,000 investment limit for tax years beginning in 2012 and expiring after December 31, 2012. Unlike bonus depreciation that applies only to “new” property, a spring manufacturer or business may immediately deduct as a Section 179 expense, up to $500,000 of both new and used business property placed in service during the tax year. The Section 179 expensing write-off is reduced, dollar-for-dollar, by any property acquisitions in excess of the $2 million investment ceiling, limiting the write-off to smaller businesses. Extending Leased Property and Other Write-Offs Before passage of the Tax Relief Act, qualified improvements made to leased property, qualified restaurant property and qualified improvements to retail property that was placed in service before 2010 was included in the 15-year Modified Accelerated Cost Recovery System (MACRS) class for depreciation purposes. Those expenditures could be depreciated over 15 years under the MACRS, standardized depreciation system. The 2010 Tax Relief Act retroactively extended the inclusion of qualified leasehold improvement property, qualified restaurant property and qualified retail improvement property in the 15-year MACRS class for two years through 2011. Layering Opportunity It is not only federal tax write-offs that can help reduce the cost of capital investments. Many spring manufacturers and suppliers making capital investments during the 2011 tax year can also benefit from state and local credit and incentive programs. In fact, many states offer a tax credit equal to a percentage of an eligible capital investment made in that state. Eligibility for the credit may depend on industry or particular use of the underlying asset. For example,

states like Massachusetts, New Jersey and Oklahoma offer investment tax credits to manufacturing business for asset purchased that will be used exclusively in manufacturing activities. As an alternative formula, Illinois offers businesses predominantly engaged in either manufacturing or retail an investment tax credit for the purchase of all qualified purchases placed in service during the year. Best of all, the assets are not required to be used exclusively for manufacturing or retail activities.

Opting Out Although the 2010 Tax Relief Act included the best terms ever for bonus first-year depreciation, namely a 100 percent write-off of the cost of qualifying property, not all of those within the spring industry will find it desirable to use front-load depreciation deductions. While it is possible to elect out of bonus depreciation entirely it is, at least for now, less certain that a spring manufacturer or supplier can step-down from 100 percent to 50 percent bonus depreciation. The prime example of a situation crying out for a business to opt out of 100 percent bonus depreciation is one where there are about-to-expire net operating losses, the value of which would be lost if currentyear income were reduced too much by claiming the maximum depreciation allowance. Similarly, a spring manufacturer that currently is, and in the recent past, has been in a low tax bracket and expects to be in a higher bracket in future years may want to defer depreciation deductions to offset future higher-taxed income. An election to take a reduced bonus depreciation deduction was specifically authorized under prior law, when a taxpayer could elect 30 percent — instead of 50 percent — bonus first-year depreciation. Until recently, however, it appeared that the only choice for a spring manufacturer or supplier that does not want 100 percent bonus depreciation was to elect out of bonus depreciation entirely. Now, the IRS has decided to follow Congress’ “General Explanation” for the 2010 Tax Relief Act and permit a step-down election from 100 percent to 50 percent bonus depreciation.

met in addition to capital investment, there are some notable exceptions. The Federal New Markets Tax Credit, for example, provides a significant financial incentive for qualified investments made in certain eligible census tracts. Also, Delaware and Virginia offer cash grants based on future capital investment made by existing businesses without requiring a commitment to new job creation. It is the incentives offered by many local jurisdictions that often provide the most significant level of benefit for capital investment activities. Many municipalities have the ability to offer property tax abatement or tax increment financing as tools to encourage capital investment. The property tax-related incentives are typically long-term in duration and provide significant savings for making qualified capital investment.

Need Funding Last fall’s Small Business Jobs Act created the State Small Business Credit Initiative and funded it with $1.5 billion to strengthen state programs that support lending to small businesses such as precision mechanical spring operations (and other small

Discretionary Incentives When it comes to a financial helping hand, the best opportunity for spring businesses investing in capital improvements may come in the form of discretionary incentives available at the federal, state and local level. Although many of these incentives require some level of job creation or, at least job retention criteria be

SPRINGS Fall 2011 47

It is not only federal tax write-offs that can help reduce the cost of capital investments. Many spring manufacturers and suppliers making capital investments during the 2011 tax year can also benefit from state and local credit and incentive programs. In fact, many states offer a tax credit equal to a percentage of an eligible capital investment made in that state.

manufacturers). Designed to spur up to $15 billion in lending, January 2011 saw the first wave of awards to the states. Under the State Small Business Credit Initiative (SSBCI), participating states will use the federal funds for programs to leverage private lending to help finance small businesses such as spring manufacturers and

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48 SPRINGS Fall 2011

suppliers that are creditworthy, but are not getting the loans they need to expand and create jobs. Last year’s “Jobs” Act included other provisions designed to help small businesses obtain funding. Among that bill’s many provisions, several new but temporary funding programs such as the U.S. Small Business Administration’s amped up extension of its lending guarantee programs and fee reductions. In addition, increases in the maximum loan size for the SBA’s 7(a), 504, and microloan programs will help. The 7(a) and 504 loan program maximums would bump from $2 million to $5 million and the microloans would increase from $35,000 to $50,000. Loans made under the SBA Express program would temporarily increase from $300,000 to $1 million. Also included is a temporary allowance for small-business owners to use 504 loans to finance certain mortgages to avoid foreclosure. The SBA’s CDC/504 Loan Program provides longterm, fixed-rate financing to acquire fixed assets (such as real estate and equipment) for expansion or modernization. It is ideal for small spring businesses requiring “brick and mortar” financing. Rather than commercial lending institutions, 504 loans are delivered via CDCs (Certified Development Companies) — private, non-profit corporations set up to contribute to the economic development of their communities.

Gone But Hopefully Not Forgotten The T ax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provided many opportunities designed to help spring manufacturers and suppliers reap tax benefits for capital investments and provide funding for doing so. The 2011 tax year may be the optimal time to take advantage of the federal, state and local tax or financing incentives that encourage capital investments. Under the right capital investment scenario, a savvy business may be able to claim 100 percent federal bonus depreciation, New Markets Tax Credit, state investment tax credits, and municipal property tax abatement on the same capital investment. Or, the spring business may benefit from the soon-to-expire funding opportunities available today. u

2011WIM-Springs_Layout 1 7/27/11 3:36 PM Page 1

omen W in Manufacturing Symposium

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Sharing Worldclass Management Techniques and Best Practices October 25-26, 2011 | Cleveland, OH This inaugural networking and educational event is designed exclusively for women who have chosen a career in the manufacturing industry, and want to share perspectives, improve leadership and communication skills, participate in mentoring programs and network with others in the industry. Some 150 attendees are expected with titles ranging from entry-level to president/CEOs. This event will provide women in the manufacturing industry a forum and venue for sharing leadership techniques in a traditionally male industry, resulting in strong networking and support opportunities for attendees.

www.womeninmanufacturing.org

Participating Companies and Organizations:

• ACE Clearwater • American Greetings • APPI Energy • AWMI International • Boeing • Case Western Reserve University • Clips and Clamps Industries • Deloitte • ForbesWoman • Ford Motor Co. • GE Appliances • Hialeah Metal Spinning, Inc. • Interlake Industries, Inc. • Latrobe LLC • Marble King Manufacturing • Mid West Fabricating • Midmark Corp. • Plante & Moran, PLLC • RG Steel • The Manufacturing Mart • The National Association of Manufacturers • Zierick Manufacturing

Contact Allison Grealis, agrealis@pma.org for more information Precision Metalforming Association 6363 Oak Tree Blvd. | Independence, OH 44131 216/901-8800 | F: 216/901-9190 | www.pma.org

SPRINGS Fall 2011 49

SPRING WORLD® 2012

Donald E Stephens Convention Center Rosemont, IL October 3-5, 2012 CASMI is proud to cheer for all of the Champions of the Spring Manufacturing Industry Manufacturers and Suppliers.

2012

We’re Proud to Be on Your Team!

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Exhibitor applications are now being accepted. For information visit our website or call 630.369.3466.

Be proud that you are part of an industry that provides vital parts for all sectors of manufactured products. Truth.

Almost nothing man-made moves without springs.

Truth.

It takes knowledge, skill and experience to be a successful spring manufacturer.

Truth.

A complete supplier support system of equipment, materials, test equipment and services are required to maintain the spring manufacturing industry.

Be Proud. Success in this industry, whether manufacturer or supplier, demands championship performance.

Be Proud. Together at SPRING WORLD® we share remarkable achievements in applying

the latest technologies to create more productive machinery, advancements in metallurgy and fabrication of production materials, a higher level of quality and consistency of product and the means to measure it. These efforts enable improvements in products we all use and the tools to make them.

Be Proud. Your work contributes to the improvement of the quality of life for people from

all corners of globe. 50 SPRINGS Fall 2011

PhotoAlto A gency RF/P unc hst ock

A Renaissance in Manufacturing Jobs?

Blend Images/Punc hsto ck

k stoc nch Pu ra/ ltu Cu

By Gary McCoy

ust like comedian Rodney Dangerfield, vocational education programs designed to help train more manufacturing workers have often suffered from a lack of respect. That could be changing thanks to a new initiative announced by President Obama in June. The Advanced Manufacturing Partnership is a national effort to bring industry, universities and the federal government together to invest in emerging technologies that create manufacturing jobs and boost global competitiveness, particularly in industries critical to national security. The $500 million plan uses existing funds and future appropriations from various federal agencies to boost innovation in manufacturing technologies such as small, high-powered batteries, advanced composites, metal fabrication, bio-manufacturing and alternative engineering. The goal is to enhance defense-critical industries; build U.S. leadership in next-generation robotics; increase energy efficiency in manufacturing; and develop technologies to help improve manufacturing efficiency. President Obama outlined seven programs to support the goal of providing 500,000 more skilled workers for the manufacturing industry within the next five years. Mentoring high school and college students is one of the ways this will be accomplished. In making the announcement, President Obama cited the Manufacturing Instituteâ&#x20AC;&#x2122;s NAM-endorsed Skills Certification System as a national solution. At the foundation of this System is ACTâ&#x20AC;&#x2122;s

SPRINGS Fall 2011 51

™

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ty ali u tQ af r rc Ai

National Career Readiness Certificate, a gateway credential to the overall Skills Certification System. The National Career Readiness Certificate is a widely recognized credential designed to validate the skills needed to succeed in all sectors of the manufacturing industry. The Manufacturing Institute, the nonprofit affiliate of the National Association of Manufacturers (NAM) that manages the Skills Certification Program, selected ACT as a partner in March 2009. The Manufacturing Skills Certification System has also garnered unilateral cabinet support from the secretaries of education, labor, and commerce. In 2010, more than 457,000 individuals earned a registered National Career Readiness Certificate and many thousands more earned a Career Readiness Certificate from a state or regional program using the same ACT assessments and based on the same standards as the National Career Readiness Certificate. More than 1,200 community and technical colleges across the nation are already equipped to administer the three WorkKeys® assessments that power the National Career Readiness Certificate. Many of these institutions also offer ACT’s KeyTrain® curriculum of online tutorials and skill-building software. In total, there are more than

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ACT released a report citing the need to intensify national efforts to improve and validate the skills of the country’s current and prospective workforce in order to correct the mismatch between skill demand and supply.

5,000 locations where the proctored assessments can be administered to those seeking documentation of their essential workplace skills. In January 2011, ACT released a report citing the need to intensify national efforts to improve and validate the skills of the country’s current and prospective workforce in order to correct the mismatch between skill demand and supply. Entitled “Breaking New Ground: Building a National Workforce Skills Credentialing System,” the report provides a framework for discussion among educators, employers, workforce development officials and other key stakeholders. In the report, ACT states that community colleges are uniquely positioned to play a central role in fulfilling the training, education, guidance, assessment and certification functions required to sustain a national workforce credentialing system. Community colleges in particular touch many of the individuals who are restarting their educational journey in search of a degree or certificate; as such, community colleges will be the linchpins of the national workforce credentialing system. KeyTrain curriculum, WorkKeys assessments and the National Career Readiness Certificate are components of the ACT Work Readiness System, a series of integrated workplace tools that provides unparalleled, comprehensive, evidence-based solutions to help individuals, businesses, the public workforce system and educators meet the rapidly evolving workforce needs of our new economy. For more information on ACT’s workforce solutions, go to act.org/workforce. u

“We’ve elevated the importance of ‘higher education’ to such a lofty perch that all other forms of knowledge are now labeled ‘alternative,’” he said. “Millions of parents and kids see apprenticeships and on-thejob-training opportunities as vocational consolation prizes, best suited for those not cut out for a four-year degree. And still, we talk about millions of ‘shovel ready’ jobs for a society that doesn’t encourage people to pick up a shovel.” Fortunately for Rowe, a few influential voices in K-12 education are now on his side, after decades of deep skepticism about shop class and other vocational programs, where education reformers worried teachers warehoused underperforming kids they didn’t want in regular classrooms. Speaking to The Lookout, Rowe said cultural prejudices against tradesmen with “dirty jobs” are holding both young people and the nation’s economy back. “We don’t encourage our kids to pursue those careers—we don’t aspire to those things,” he says. “It’s the first thing we’ll portray in a negative or typical way on TV. There’s the plumber: He’s 300 pounds and his butt crack’s hanging out.” The new crop of advocates behind Rowe’s cause argue that good vocational education doesn’t mean kids have to

Blen d Im age s/P u

But the television personality has become a leading advocate for vocational education programs in the nation’s schools. He forcefully testified in front of Congress earlier this year that the country needs “a national PR campaign for skilled labor” in order to battle prejudices against it in society. His speech praising the country’s plumbers, carpenters, mechanics, and other tradesmen clearly struck a chord—it was shared by tens of thousands of people on Facebook.

Cultura /Punchstock

Mike Rowe, the host of the Discovery Channel show “Dirty Jobs,” may seem like an unlikely voice in the country’s contentious debate on the public education system.

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Mike Rowe Speaks Up for Skilled Labor

choose between college and a career. They point out that some of the best new vocational programs combine rigorous academic standards with career-focused, real-world curricula and offer the opportunity for students to earn certificates in high-earning fields while they’re still teenagers. But the prejudices are still there, vocational ed advocates say, and are especially pernicious among the influential education reformers who have advanced most of the innovations in K-12 schools over the past few years. These reformers have largely adopted a “college for all” approach, arguing that expecting anything less from kids would discourage them from performing well at school. For his part, Rowe says he tries to show how admirable tradesmen professions are on his show, where he’s filmed attempting to learn a new “dirty” job in each episode, which serves as a kind of mini-apprenticeship for the audience. “What I really am is a fan of the people who take a time to learn a skill and master a trade,” he says. Rowe told The Lookout that he thinks there would not be an unemployment crisis if the U.S. labor force were more skilled. He points out that there were 200,000 open manufacturing jobs, and 480,000 more in trade, transportation and utilities this past April, but no one to fill them.

SPRINGS Fall 2011 53

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Springmaker Spotlight

Privately-owned Iowa Spring Manufacturing is located on eight acres in Adel, Iowa, occupying 105,000 sq. ft. of space, and is led by second generation family member Tim Bianco, president.

Through Doors of Change

A Profile of Tim Bianco and Iowa Spring Manufacturing By Gary McCoy

owa Spring Manufacturing is planted in the heart of Iowa, just west of Des Moines in the town of Adel. Just like the winds of change that blow through the Hawkeye state each year, either through presidential politics or tornados and blizzards, Iowa Spring has also weathered change. Iowa Spring has continued to evolve and has walked through the doors of change since the company began in 1976 at a small industrial plant near the Iowa State Fairgrounds on the east side of Des Moines. Iowa Spring’s continuing evolution has weathered change gracefully, from its leadership transition from the first to the second generation, to devising new ways to manufacture products. When Jim Bianco first moved to Des Moines, he cut his teeth in the agricultural business working as a purchasing agent for Massey Ferguson, a manufacturer of tractors and combines. Springs were one of the commodities he bought and his main supplier was Kokomo Spring. When Kokomo Spring needed a western U.S. sales rep they hired Bianco away from Massey Ferguson. Bianco worked for Kokomo Spring in the late ‘60s and early ‘70s. When Kokomo Spring changed hands and went from a family business to being owned by a holding company, Bianco became dissatisfied. He approached a couple of his customers about starting his own company and asked for their support. Jim’s son, Tim, who now runs Iowa Spring, says customers told his dad they would support the new company if he could give them “a quality product in a timely manner and be competitive on price.”

SPRINGS Fall Fall2011 2011 55 SPRINGS

From its spartan 10,000 sq. ft. location in Des Moines, the company delivered on these qualities and with early success they quickly ran out of space. A friend of Jim’s was a realtor and told him about a warehouse sitting empty just west of Des Moines. In 1979 the company moved to its present location in Adel. At that time it consisted of 40,000 sq. ft. of space. Fast forward 30 years later and Iowa Spring is still located at the same eight-acre parcel of land. Through additions to the plant it now occupies 105,000 sq. ft. of space dedicated to manufacturing, warehouse and office operations.

Tractors and Garage Doors Tim Bianco says the company’s history revolves around the agricultural equipment and overhead garage door industries. “We originally only serviced the top tiers of the original equipment manufacturers in those industries,” said Bianco. “Then throughout the years we began hitting almost every level of each industry, from OEMs to wholesaler/distributors to end users.” Bianco says those two industries continue to be the company’s mainstays. Through marketing, trade shows and industry events, Iowa Spring has diversified its customer mix even further. They now provides springs for makers of appliances, sporting goods (like trap skeet throwers), dock levelers and construction equipment. “Like all other springmakers, you don’t want all your eggs in that one basket,” explained Bianco. “That’s really

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Through marketing, trade shows and industry events, Iowa Spring has diversified its customer mix even further. They now provides springs for makers of appliances, sporting goods (like trap skeet throwers), dock levelers and construction equipment. “Like all other springmakers, you don’t want all your eggs in that one basket,” explained Bianco. “That’s really given us the strength to survive the ups and downs of both the housing industry and the agricultural industry.” given us the strength to survive the ups and downs of both the housing industry and the agricultural industry.” Iowa Spring’s niche has always been in making torsion, compression and extension springs from larger wire from 1/4 inch and above. The company launched its focused garage door spring division, Southern Atlantic Spring, in Granite Quarry, N.C., in January 2007. Bianco says opening Southern Atlantic Spring resulted from the company’s growth in the garage door industry. Some of the manufacturers that Iowa Spring did work for were located in the southeast and “wanted us closer” to eliminate the two days of freight time from Adel. “So we had a book of business even before we opened our doors that we knew we could service and had a foundation for the business,” said Bianco regarding Southern Atlantic Spring. “With the added effort of marketing and sales, we knew we could grow that even more.” Right now Southern Spring has 15 employees, while more than 100 employees work at Iowa Spring. The company had reached a high water mark of 140 employees in 2008 and a low count of 65 a year and half ago. Bianco is optimistic about the future. “We are trending back to ‘07-’08 levels,” he explained. “It’s realistic in the next 12 to 18 months that we’ll hit that. Our customer base is forecasting strong growth for the next 18 months.”

Growing up with Springs Like many children of entrepreneurial springmakers, Tim Bianco grew up at Iowa Spring doing a variety of tasks from pushing brooms to answering phones. He recalls his dad bringing home castings that are used in conjunction with garage door springs. At that time the set screws were not installed in the castings, so the job fell to Tim and his three sisters to complete.

Inside the manufacturing and warehouse facilities at Iowa Spring where employee longevity is a strength.

“Dad would bring home boxes of these castings and barrels of the screws and we would sit in the garage and screw those things in,” recalled Bianco. “It would be bad enough that we would tape our fingers.” While Tim’s three sisters worked in the business at one time or another, after college they all decided that the spring business would not be in their future. But Tim made a different choice. He worked at Iowa Spring while attending Drake University, and eventually dropped out of Drake to work full-time at the company. Tim’s dad had been the company’s primary salesman, but one of the markets Iowa Spring needed to develop was the service end of the garage door industry. Though Tim had a great knowledge of the spring business, he did not know the company’s customer base. “So dad put me on the payroll and for the first six months I worked for Hawkeye Door,” explained Bianco. Even though he was an Iowa Spring employee, he got an apprenticeship in the garage door business from Leo Warden, owner of Hawkeye Door. The experience taught Bianco how to hang and service garage doors, but also even more important lessons. “The guys in Leo’s shop knew they were getting free labor so I was the grunt guy most of the time,”

Bianco says with a chuckle. “But I learned the ins and outs of the industry and the way he (Leo) looks at customer service, and the importance of getting a spring overnight, or the next day, because it’s an extra service call if you don’t have the right stock.” After his time at Hawkeye Door, Bianco returned to Iowa Spring for another six months in the office working the phones in customer service. After that Jim Bianco got his son a company car and put him on the road to visit garage door dealers and distributors to help build that part of the business. Bianco said they had been missing the service end of the business, having only done work for the OE manufacturers like Wayne Dalton and Overhead Door. Through his efforts on the road to places like Albert Lea, Minn., Mason City, Iowa and Madison, Wis., Bianco saw Iowa Spring’s garage door service business grow from a few dozen customers to nearly 1,200 accounts today.

Changing Practices From working with that segment of the business, Iowa Spring has changed the way it manufactures. It now utilizes just-in-time (JIT) inventory practices. “Historically, lead times in the garage door business

SPRINGS Fall 2011 57

were two weeks for a stock order and maybe five days for a replacement spring,” explained Bianco. “If you can’t ship it the same day, today, you don’t get the order. We’ve had to grow in that aspect with the industry. It’s helped us in the way we look at throughput in the other industries we serve.” Speaking of throughput, Iowa Spring has partnered with the engineering department from nearby Iowa State University and its branch called CIRAS (Center for Industrial Research and Service). “They are a resource for manufacturers in the state of Iowa that you can go to and use for essentially a reduced fee by utilizing grad students and engineering professors,” said Bianco. Iowa Spring has utilized CIRAS for an energy audit, OSHA training, and most recently in the area of throughput, which Bianco describes as an “exercise in the theory of constraints.” He says the project is looking at where the bottlenecks are in their facility. He says the project with CIRAS is still in process, but has challenged traditional methods of manufacturing that the company has always followed. In addition, the project also focuses on employee empowerment. “Instead of dictating a work schedule, we’ve given the team a deadline and we’re letting them figure out the work schedule.” They’ve also given employees five measurements against which to benchmark their work, sharing confidential information that Bianco says his father would have had a “heart attack” disclosing 10 or 15 years ago.

“It’s a neat program,” explained Bianco, “and if nothing else it has motivated our people in a different way. So, at a minimum, the value right there is worth it.”

Value in Human Capital Bianco says like other family-owned springmakers, the greatest value of Iowa Spring’s business is in their employees. “The knowledge they hold, the longevity and their experiences. Our strength is in our people.” Brian Setchell, the company’s vice president of manufacturing has been at Iowa Spring for 31 years, while accounting manager Doug Smith and Chris Tollori, the company’s sales and marketing director, have both logged 20-plus years with the company. Bianco primarily did sales and marketing during his first 10-plus years at Iowa Spring. When his dad purchased a retail/wholesale lock business in Des Moines (with two partners), life at Iowa Spring changed. Though Bianco’s dad still had day-to-day oversight of Iowa Spring, from 1984 to 1991 most of his time was spent running the lock business. This meant primary responsibility for operating Iowa Spring was now up to Bianco, Setchell and Smith. Bianco says he got involved in the day-to-day operations of Iowa Spring at an earlier than expected age. His transition to the presidency of the company took many years and never formally happened. “To be honest, like other family businesses, there was a time when we were a ship without a captain,” admitted Bianco. “It didn’t affect our customer relationships. It was more to our employee/ management relationships and the lack of vision for the future.” It was 14 years ago when Bianco’s father and mother moved to Las Vegas, but Jim Bianco still continued to run Iowa Spring. About six years ago Bianco said it became clear that this was not working. Bianco and his dad had some roundtable discussions with peer groups and other family businesses about the importance of a transition and “recognizing that you can’t run a business from 2,000 miles away. “That was a maturing process on both his part and mine,” said Bianco. “And our company is better for that today.” Strengthening Relationships Bianco’s philosophy of doing business stems from the challenge that all springmakers face of producing a commodity item that is typically designed and engineered by someone else. “We like to set ourselves apart by our customer service, reliability and relationships,” said Bianco. “We want to treat our customers like we would like to be treated.” He says they don’t make promises they can’t keep and will readily admit when they make a mistake. “It’s how you handle those mistakes that define you,” said

58 SPRINGS Fall 2011

Bianco is a strong advocate for the spring industry. “The industry has provided me an opportunity to make really good friends with other springmakers and suppliers to the industry,” Bianco said with appreciation. “SMI has afforded that to me through all of their functions. No matter what happens in the industry, with your business or someone else’s, those friendships are forever.”

Bianco. “And we’ve had our opportunities to be welldefined after making our mistakes.” Bianco said if they do something wrong, he will personally pickup the phone to make things right with the customer, “whether he’s a $500 a year account or he’s a half million dollars a year account. “You don’t want to mess up, but when you do you really have a chance to make relationships strong.”

Promoting Industry Ties Bianco is a strong advocate for the spring industry. “The industry has provided me an opportunity to make really good friends with other springmakers and suppliers to the industry,” Bianco said with appreciation. “SMI has afforded that to me through all of their functions. No matter what happens in the industry, with your business or someone else’s, those friendships are forever.” He mentioned a recent round of golf setup through a wire supplier as an example of how competitors can also forge friendships. Bianco was in Indianapolis for a trade show and had the chance to play golf with Joe Pesaresi of Winamac Coil Spring. “We played golf, had a burger afterward, and sat around for half an hour sharing best practices,” explained. “How do you get that spring to hook without gouging it? What do you do to keep this from happening on that type of machine?” He said while Joe is a direct competitor in the agricultural business, “at no time in the afternoon did the competitive spirit get in front of the friendship that has grown.” It’s a friendship that started with Joe and Bianco’s dad, and has now carried over to Joe, Dan Jr. and others at Winamac. “Those same relationships are going to continue through another generation.”

Bianco has been active in SMI, serving on the board of directors, and utilizing many of the association’s services. He believes the keys to success in the spring industry are honesty and reliability. “Your reputation is built on those two.”

Looking Ahead As Iowa Spring has bounced back from the Great Recession, Bianco believes they need to continue to diversify the markets they serve and not put all their eggs in one or two baskets. In what he describes as a financially strong position, Bianco says Iowa Spring looks for continued growth either through start-up or acquisition. “We’re actively looking,” he explained. In the meantime, he says, they are redoubling efforts in markets they already serve. Whether the business will be passed along to his son, Jack, who’s six years old, Bianco says the opportunity could be there down the road. “I don’t know if I’ll be active in our business at that time,” he said. “I’m 44 now and by the time he has life experiences or university experiences or a desire to be here...” He pauses and says, “That’s too far away to think about now.” By the time Jack is ready to join the business, Bianco says Iowa Spring may be walking through different doors of change. Stay tuned. u

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SPRINGS Fall 2011 59

60 SPRINGS Fall 2011

Inside SMI SMI Staff Visit Members To help introduce the spring industry to SMI’s new technical director, Jim Kobrinetz, he and SMI general manager Lynne Carr went on the road earlier this year to visit several springmakers. Not only was it an opportunity to meet Kobrinetz, it gave SMI members a chance to provide feedback to SMI staff regarding their needs. In May, Carr and Kobrinetz stopped at Stanley Spring in Chicago, Ill., International Spring Co. in Morton Grove, Ill. and Automatic Spring Division of MW Industries in Chicago. A visit to the Hoosier state was next with visits to MW Industries in Logansport and Winamac Coil Spring in Kewanna. In July the tour continued with stops at American Spring Wire in Bedford Heights, Ohio, Marik Spring in Tallmadge, Ohio, Spring Team in

Economist Set to Address SMI Annual Meeting Next March Economist Alan Beaulieu is scheduled to address the SMI Annual Meeting next year at the JW Marriott San Antonio (Texas) Hill Country. His presentation will take place on Monday, March 19, 2012 from 8:30 am to 10:30 am. One of the country’s most informed economists, Beaulieu is a principal of the Institute for Trend Research where he serves as president. Since 1990, he has been consulting with companies throughout the U.S., Europe, and Japan on how to forecast, plan, and increase their profits based

Pictured (l-to-r): Rich Froehlich, Ace Wire Spring, Linda Froehlich, Ace Wire Spring, Lynne Carr, SMI, Ritchy Froehlich, Ace Wire Spring and Jim Kobrinetz, SMI.

Austinburg, Ohio, Ace Wire Spring in McKees Rocks, Pa. and Diamond Wire Spring in Pittsburgh, Pa. “Not only were our trips a great opportunity for people to meet Jim,” said Carr, “it gave both of us a greater appreciation for the skill and craftsmanship of SMI member

on business cycle trend analysis. Beaulieu is also the senior economic advisor to the National Association of Wholesaler-Distributors (NAW) and the chief economist for the Heating, Airconditioning & Refrigeration Distributors International (HARDI). Beaulieu is co-author, along with his brother Brian, of the book “Make Your Move,” and has written numerous articles on economic analysis. Most recently, he is the host of “Make Your Move,” a business radio talk show heard Monday afternoons on the VoiceAmerica™ and World Talk Radio™ Networks. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends. Prior

companies that we so often take for granted. It made me proud to be associated with this industry.” For more information on SMI’s technical services and to ask Kobrinetz a question, you may contact him at (630) 495-8588 or e-mail: jim@smihq.org.

to joining the Institute, Beaulieu was a principal in a steel fabrication company and also in a software development company. For more information on the SMI Annual Meeting, contact Lynne Carr at (630) 495-8588.

SPRINGS Fall 2011 61

Analyzing and Using Salary Survey Data By John Mackay, Mackay Research Group Being competitive is a prime objective for most organizations, but the approach taken to measure competitiveness may differ from one organization to another. In fact, competitive objectives may change

within the same organization over time, especially when financial performance fluctuates. The goal of the SMI Salary and Fringe Benefit Survey is to collect and analyze member data that will meet your organizational objective of identifying external competitiveness with regard to compensation

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62 SPRINGS Fall 2011

programs. The SMI Salary and Fringe Benefit Survey is a sound and practical approach, using statistics from SMI members, that can add validity to your salary and benefit decisions. The SMI Salary and Fringe Benefit Report may be used for identifying, selecting, analyzing, and using market data to determine your company’s external competitiveness and establish a competitive marketbased pay program. The report can assist you in “getting the message” to your employees so that they may understand and, ultimately, buy into your salary and fringe benefit program. Base pay structures are administrative tools that are designed to assist in the administration of compensation programs. Ideally, the pay structure will provide compensation levels that remain internally equitable, externally competitive, and cost effective. The SMI Salary and Fringe Benefit Report aids you in compensation planning, and how your organization can better use its resources to attract and retain talent. The use of different compensation elements, including base salaries, incentives and employee benefits, are analyzed. The SMI Salary and Fringe Benefit Report will evaluate current trends in compensation and benefits that create the total compensation package. It also examines the use of the following types of employee benefits: Life insurance, health insurance, disability insurance, 401k plans, pension plans, non-qualified and qualified retirement plans. Are you underpaying or overpaying your employees? How do your benefits stack up? Find out by taking part in the SMI Wage and Fringe Benefit Survey. Questionnaires will be mailed to all SMI members in early October. They are due back by the October 31. Don’t miss this opportunity!

6/14/11 8:37 PM

“The Beware of Yuan article in the recent Springs magazine was very eye opening. It’s a shame that the folks at Katy Spring had to lose valuable time and money to this scam but I was happy to hear that they were able to get out of it before it escalated. In the hopes of preventing other hardworking spring manufacturers from being scammed, I wanted to let you know about another scam that we’ve seen a few times. It starts with an RFQ that usually originates from an Internet based e-mail provider and the person requesting the quote doesn’t seem to know or care about the specifics of the spring they need. The scam comes into play when they tell you the parts need to be shipped to a distant part of the world and you have to prepay the freight and use an exorbitantly expensive shipping company that they specify. It really becomes obvious when you quote them a traditional shipping company’s expense at a tenth of the

Beware of Yuan by Scott Pitney, Katy Spring

uring Katy Spring’s 11 year history, we’ve bid on many contracts with high dollar volumes. We rarely get this business because someone will usually accept a slim margin to win these large volume accounts. We’re competitive, but we know what we need to make a profit. Our philosophy has always been: offer a fair price that builds long-term customer relationships. Underbidding or bidding for very slim margins does not fit our business philosophy or make good business sense. That’s why I didn’t give it much thought when we received a bid from a Chinese import/export company with a total U.S dollar value that exceeded a million dollars. While the volume is great, we assumed someone would outbid us since the company is in China where the labor rates are much lower. Surely they would select a Chinese spring manufacturer. I know there are good spring manufacturers in China, but our Chinese clients tell us they buy from us because they can’t get the quality they need from their local suppliers. We were skeptical and cautiously optimistic when this import/export company accepted our price and wanted to do business with our company.

40 SPRINGS Spring 2011

cost and they demand that you use their company anyway. We’ve been fortunate enough to realize what was going on, but I’m sure it plays out with the supplier not getting paid for the parts or the shipping. Thanks to the folks at SMI for publishing the article about Katy and reminding people that some things are too good to be true.” Steve Caskey Spring Dynamics Inc.

The editorial staff encourages signed “Letters to the Editor” responding to an article or news item in Springs, or expressing an opinion on a spring industry topic. The editor reserves the right to reject letters or edit for clarity, brevity, good taste and accuracy, and to prevent libel. No poetry, attacks on private individuals, or letter-writing campaigns, please. Letters should generally be brief (150-200 words) and to the point. Send your letters via e-mail to: lynne@smihq.org, or fax (630) 4958595.

SMI Welcomes New Members SMI is pleased to welcome its newest members. Commercial Spring & Tool Mississauga, Ontario, Canada PJ Wallbank Springs, Inc. Port Huron, Mich.

SMI Mourns Passing of Members It is with deep regret that Springs announces the passing of the following members. Dennis A. Johnson, 80, of Brookfield, Wis. died on August 25, 2011. Johnson received his undergraduate degree from the Illinois Institute of Technology and received his MBA from the Harvard School of Business. He was the past president of the Chicago Association of Spring Manufacturers Inc. and retired after a long career in the spring industry as division manager of Associated Spring/Barnes Group Inc. Active in the community throughout his life, Johnson volunteered time at his church, Rotary, Junior Achievement and

teaching graduate courses at Concordia College. He is survived by his wife, Gail, and his children, Dean (Karen), Jeffrey (Norma) Johnson and Holly (Russell) Van Gilder, and six grandchildren. His family said: "Dennis had a heart filled with God's love. Humble and unassuming, he was a teacher in every aspect of his life. For this we will forever love, miss and appreciate him." Jim Gorand, 54, who died suddenly on Aug. 25, 2011. Gorand of CPS Financial was SMI's advisor for the association's Sponsored Retirement Plan Program, wrote articles for Springs and made presentations at SMI sponsored events. Gorand built CPS Financial,

a successful insurance and financial services company, which he ran in Lake Bluff, Ill. for more than 20 years. "He was a doting and beloved father and grandfather, a friend to many, an avid golfer and a volunteer soccer coach in Lake Forest for years." Gorand is survived by his children Caitlin (Adam) Morse, Danielle, Annie and Patrick. He was the cherished granddad to Mia Morse and a companion to Carol Falasz. He is also survived by his brother Alfred (Jackie), sister Karen, the mother of his children, Laurie Campbell, nieces, nephews and many friends.

SPRINGS Fall 2011 63

Support the Organization That Supports Your Business Every E very sspringmaker pringmaker iiss ppart art ooff tthe he iindustry. ndustry. E Each ach sspringmaker pringmaker sshares hares iinn tthe he ggrowth rowth aand nd ddirection irection ooff tthe he iindustry. ndustry. A MI ggrows, rows, ssoo ddoes oes tthe he sstrength trength ooff tthe he iindustry ndustry aand nd eevery very ccompany ompany iinn iit.t. Ass S SMI

SMI members have helped originate SMI programs in education, safety, failure analysis, technical knowledge and general manufacturing. There is more to do, and you can contribute to those industry goals by joining SMI.

All springmaking and supplier companies are eligible to join SMI in one of three membership categories: • Regular Members who produce springs for general sale NE

• Internal Producers who manufacture springs for their own end products • Associate Members who provide services, materials or machinery used directly in the manufacture of springs

Support the spring industry. Support your company. Join SMI now.

64 SPRINGS Fall 2011

For complete details, visit the SMI Web site at www.smihq.org SPRINGS Winter 2010 37 or contact Lynne Carr in the SMI Office, (630) 495-8588.

New Products

Magnatag Magnetic Cross-Training Whiteboard System

Magnatag’s new magnetic CrossTraining Whiteboard System organizes and displays employee training, qualification and proficiency levels in up to 18 skill disciplines. Placed where everyone can see it, workers are silently encouraged to learn and qualify in as many skills as they can. “Our customers tell us the Cross-Training board system serves as a scoreboard for their employee training program. It organizes and displays a matrix of people, skills and qualifications. The person with the most magnets next to their

name is the most skilled,” says Magnatag spokesperson Christian Krapf. “It comes ready-to use with signal magnets in 10 colors to show skill qualifications, magnetic nameplate cardholders and everything needed to operate the system.” Built to stay like new for a lifetime of daily use, the magnetic dry-erase CrossTrainer is heat fused printed and comes in four sizes to hold up to 68 employees on a single board. For full details go to www. magnatag.com/crosstraining or call (800) 624-4154.

SPRINGS Fall 2011 65

Badger Tag & Label Revware Inc. MobiGage and MobiGage PC Mobile Software Repositionable Adhesive Ten times stickier than Velcro ® and reusable yet, are unproven in the manufacturing setting. This gecko-inspired glues, Super Velcro is an extremely year’s list includes: Revware Inc., the leading developer “The MicroScribe digitizer is used across the Badger Tag & Label Corporastrong adhesive that comes • Continuous-flow microreactors of CAD-driven concept-to-product engiworld by a vast variety of designers, sciention, in conjunction with a supplier, has apart when heated. Using shape• Dip-pen nanolithography neering software and manufacturer of the tists, engineers and metrology professionals developed an adhesive that performs m e m o r y p o l y m e r s , G e n e r a l • benefit Greenenormously cement from being able to ® In reviewing submissions, MicroScribe portable measurement who like a permanent hold but is repositionMotors researchers have created • Large-format system, is proud to formally introduce our measurement ceramic tools on thebatteries go.” able. This versatile new adhesive can be the committee also highlights use• The a product thatfrom allows a strong but Laser heatingportable in a diamond MobiGage® and MobiGage® PC mobile MicroScribe digitizer is cleanly removed numerous types alterable thatmetals, replaces liquid anvilcornerstone cell software to their productWatch portfolio. List. The an Innovation Revware’s product. Used in of surfaces,bond including plastics, applications act as “mobile gauges” and combination with Revware’s own Revglass and paper. In addition to offering adhesives requiring lengthy oven • Metamaterials These technologies are ® software, MobiGage, MobiGage PC enable users to gather digitized measureWorks good adhesion andconsumes clean long-term curing, which a lotre-of • Self-assembling vehicles ment data from a MicroScribe via a wireless or many of the other commercially available movability from smooth surfaces, it also showing great promise but, energy, or foam tapes that do not • Synthetic cells connection, completing the company’s line metrology programs on the market, the adheres tohigh some adhesion more challenging surprovide strength. yet,and are unproven in a ofas portable untethered measurement MicroScribe provides the ultimate solution faces such as Teflon, textured PVC, and Super Velcro is currently being “Because most people use solutions. Available for iPad, iPod Touch for real-time data capture for modeling and corrugated. It withstands temperatures manufacturing setting. used for interior and exterior common, everyday products that and iPhone, MobiGage sets the standard analysis. MobiGage uses a wireless conup to 200 degrees Fahrenheit without automotive trims with potential are frequently outsourced, they for “state of the art” mobile metrology. Monection to manage data collection from one distortion or leaving residue behind, applications for furniture, toys and buildings. think that manufacturing in America is todead,” said ® biGage PC provides the same features to or more MicroScribes linked a MobiBox and demonstrates good resistance to In reviewing submissions for the “Innovations Fritz. “Innovations like those identified today should be Windows personal computer users. interface. MobiGage PC uses a direct USB common cleaning solutions, alcohol, That Could Change the Way You Manufacture,” reminder that American manufacturing has can moved “In keepingthe with oura mission to provide connection. Users of either version ammonia and water. committee also highlights an Innovation Watch the production commodities anda full is one simple to use, List. innovativebeyond and cost-effective easilyofand quickly capture rangeofofthe For more information or free sammodeling solutions, are proud to set the part measurements edit and runu ples, calltechnologies Badger Tag & Label at (800) great promise These are showing but, as we most technologically advanced sectorsorofcreate, our economy.” 331-4863, email sales@badgertag.com, uw_wire_6.9x4.63_trade_ad.pdf or visit www.badgertag.com.

CMY

66 SPRINGS Fall 2011 46 SPRINGS Summer 2011

bar in portable measurement software,” said and CEO of Revware.

3/22/11 10:37 AM Tom Welsh, president

repeatable measurement plans for consistent production quality assessments. u

Advertiser’s Index Admiral Steel (800) 323-7055. . . . . . . . . . . . . . 52 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 34 CASMI (630) 369-3466. . . . . . . . . . . . . . 50 Century Spring, Division of MW Industries (800) 237-5225. . . . . . . . . . . . . . 11 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . 42 Dispense Works (815) 363-3524. . . . . . . . . . . . . . 18 Elgiloy Specialty Metals (847) 695-1900. . . . . . . . . . . . . . 22 Exova (866) 263-9268. . . . . . . . . . . . . . 20 Forming Systems Inc. (877) 594-4300. . inside front cover, back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422 inside back cover Gibraltar Corporation (847) 769-2099. . . . . . . . . . . . . . 24 Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . 44 InterWire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1

JN Machinery (224) 699-9161. . . . . . . . . . . . . . 30 Kiswire (201) 461-8895. . . . . . . . . . . . . . 60 Koswire America (770) 965-1145. . . . . . . . . . . . . . 16 Kreher Steel (800) 323-0745. . . . . . . . . . . . . . 43 Lapham-Hickey Steel (800) 323-8443. . . . . . . . . . . . . . 27 Larson Systems (877) 780-2131. . . . . . . . . . . . 9, 33 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . 56 Messe Düsseldorf (312) 781-5180. . . . . . . . . . . . . . 10 NIMSCO (563) 391-0400 . . . . . . . . . . 29, 58 Oriimec (859) 746-3318. . . . . . . . . . . . . . . 6 Precision Metalforming Association (216) 901-8800. . . . . . . . . . . . . . 49 Precision Quincy (800) 338-0079. . . . . . . . . . . . . . 59 Precision Steel Warehouse (800) 323-0740. . . . . . . . . . . . . . 62 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . 39

Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . 47 RK Trading (847) 640-9371. . . . . . . . . . . . . . . 5 Seneca Wire/FENIX, LLC (419) 435-9261. . . . . . . . . . . . . . 54 Shinko Machinery +81-6-6794-6610. . . . . . . . . . . . . 3 Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . 36 Spring Manufacturers Institute (630) 495-8588 . . . . . 13, 23, 35, 64 SPX Components/Fenn Div. (860) 594-4300. . . . . . . . . . . . . . 12 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 40 TCT Stainless (800) 334-7509. . . . . . . . . . . . . . 31 Tool King (800) 338-1318. . . . . . . . . . . . . . 48 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . . 8 United Wire Co. (800) 840-9481. . . . . . . . . . . . . . 66 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . 38 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 15

SMI at the JW Marriott San Antonio Friday, March 16 to Tuesday, March 20, 2012 Watch your email and our website for more details, www.smihq.org, pardner!

SPRINGS Fall 2011 67

Snapshot Raquel Chole Dudek & Bock Spring Manufacturing Company Nickname: My friends and family call

roadside stand very early. I had my own lawn mowing and babysitting agencies by the time I was nine. Then, I lied my way into a full-time (seasonal) job as an auditor in an amusement park when I was 14 (they believed I was 16).

me Kell.

Company name, city and country: Dudek & Bock, Chicago and Saltillo, Mexico.

Brief history of your company: Joseph Dudek founded the company in 1946. His particular genius was in tooling parts out of spring material for four slide production. Over the past 65 years, Dudek & Bock established a reputation as a vendor to a broad variety of markets, focusing on high production industries.

If I weren’t working at Dudek & Bock, I would like to: I’ve

Job title: Sales and Marketing Manager and Automotive Program Manager. Birthplace: Chicago, Ill. Current home: Burr Ridge, Ill. Family: Husband, Michael, son, Rory, and two cats.

What I like most about being in the industry: As springmakers, we’re in on the ground floor of every new car and appliance manufactured.

Favorite food: Lamb. Favorite books/author: Anything by Mark Twain, Charles Dickens, William Shakespeare, Anthony Trollope, Phillip Pullman or JK Rowling. I love them all.

Favorite song/musician: I tend to like anything with a light, happy feel to it. My favorite musicians are my husband, who plays banjo and our son, who plays two row button accordion.

Hobbies: Knitting – the more intricate the pattern, the better – and playing the flute and concertina. Favorite places: Paris: we never tire of being in the City of Lights. London to be with family. Ireland to play music and be with friends. Still, the nicest place of all is home in Burr Ridge. 68 SPRINGS Fall 2011

Raquel Chole (right) performing with her husband Michael (left). Their son Rory (inset) plays the two row button accordion.

Best times of my life: Playing music has taken me all over the world. I’ve been very lucky to be one of the few Americans who judges the world title music competition in Ireland annually. Even luckier, my husband and my son play Irish music, so it’s a family affair. A really great evening to me is: The music we play is very social, so a night of tunes, played with family and friends (or strangers) is perfection. The one thing I can’t stand is: Inactivity.

My most outstanding quality is: The success of the people around me is as important to me as my own. I suppose that comes from having been a business owner. I use every possible occasion to mentor young women in the springmaking industry.

People who knew me in school thought I was: Driven and focused. I knew I was an “adult” when: I was always an adult in my own head. I was hooked on hawking lemonade from a

reinvented myself over the years and will again, if I need to. As a young journalist, I was sent to cover President Reagan’s second inauguration and the Academy Awards and more. I left publishing but it led me to writing for Springs to keep my skills up. Then, I studied for my master's degree in teaching thinking I would be a corporate trainer or teach in the schools but my company has allowed me to train within our company, so I've got the best of both worlds.

The most difficult business decision I ever had to make was: To close my publishing company and go work for someone else. It worked out very well, though. I am immersed in the spring business.

Role model: My grandfather was a self-made professional who relentlessly pursued excellence.

I would like to be remembered in the spring industry for: Helping women understand that there’s a place for them here; serving my customers beyond expectations; and for the articles I did for Springs.

But people will probably remember me for: Continually cajoling my plant manager and supervisors to get me parts faster than originally promised.

Fall 2011

Quick Reference Supplier Guide

The companies listed below are among the most prominent suppliers to the spring industry. Each of these companies, presented here under product or service category, advertises in every issue of Springs. Though their products and services vary widely, these companies can all be characterized by their enthusiastic willingness to serve the needs of spring manufacturers. Coilers / Wire Formers

Spring Manufacturers

Forming Systems, Inc. Tim Weber Fax: (269) 679-3567 (269) 679-3557 HTC TBE Whitelegg JayKase www.formingsystemsinc.com Gibraltar Corp. Michael Shapiro (847) 769-2099 Fax: (847) 913-4528 www.gibraltar8.com Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 Simplex Rapid/SECEM www.nimsco.com Oriimec Gabrielle Dion (859) 746-3318 Fax: (859) 746-3319 www.oriimec.com RK Trading Company Rob Meyers Fax (847) 640-9793 (847) 640-9771 Herdon, Bobbio

Vulcan Spring & Manufacturing Co. Bob Gustafson (215) 721-1721 www.vulcanspring.com

Furnaces / Ovens

Trade Associations

HSI/Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com JN Machinery Corp. Daniel Pierre III (224) 699-9161 Fax: (224) 699-9286 www.jnmachinery.com Precision Quincy Mike Koontz Fax: (815) 338-2960 (815) 338-2675 www.precisionquincy.com

Grinders

Bennett Mahler/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com OMD/Emanon/Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Spring Manufacturers

Century Spring Kurt Gillespie (213) 749-1466 Fax (213) 749-3802 www.centuryspring.com Diamond Wire Spring Co. Frank Fazio (800) 424-0500 www.diamondwire.com

Testers / Measurement

IST/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com Larson Systems Bruce Hill (763) 780-2131 Fax: (763) 780-2182 www.larsonsystems.com Proto Manufacturing Ltd. Robert Drake Fax: (519) 737-6330 (800) 965-8378 www.protoxrd.com Spring Analysis Systems Inc./Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Spring Manufacturers Institute Lynne Carr (630) 495-8588 Fax: (630) 495-8595 www.smihq.org CASMI Tom Renk (630) 369-3466 Fax: (630) 369-3773 www.casmi-springworld.org

Wire Straighteners

Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 SECEM www.nimsco.com

Wire/Strip Materials

Admiral Steel (800) 323-7055 Fax: (708) 388-9317 www.admiralsteel.com Alloy Wire International Ed Sierman (866) 482-5569 Fax: (401) 384-6757 www.alloywire.com Elgiloy Specialty Metals Gene Kunos (847) 695-1900 Fax: (847) 695-0169 www.elgiloy.com

Wire/Strip Materials

Gibbs Wire and Steel Bill Torres (800) 800-4422 Fax: (860) 628-7780 www.gibbswire.com Industrial Steel & Wire Dave Ritter (773) 804-0404 Fax: (773) 804-0408 www.industeel.com InterWire Frank Cardile Jr. (914) 273-6633 Fax: (914) 273-6848 www.interwiregroup.com Kiswire Trading Inc. Wan Dong Kim Fax (201)461-8021 (201) 461-8895 www.kiswire.com Koswire Sid Ryoo (770) 965-1145 Fax (770)965-1147 www.koswire.com Lapham-Hickey Steel Dave Conrad (708) 496-6111 Fax (708)496-8504 www.lapham-hickey.com Mapes Piano String Co. Bob Schaff Fax: (423) 543-0118 (423) 543-3195 www.mapeswire.com Precision Steel Warehouse Inc. Steve Kraft Fax: (847) 455-1341 (847) 455-7000 www.precisionsteel.com Radcliff Wire Inc. Scott Kirkpatrick (860) 583-1305 Fax: (860) 583-6553 www.radcliffwire.com Seneca Wire/FENIX, LLC Doug Stearns (419) 435-9261 Fax: (419) 435-9265 www.senecawire.com Suzuki Garphyttan Wire Kirk Manning (888) 947-3778 Fax: (574) 232-2565 www.suzuki-garphyttan.com Tool King Inc. Peter Hestad (800) 338-1318 Fax: (847) 537-6937 www.toolkinginc.com Ulbrich Stainless Steels & Special Metals Inc. Rich Papeika (800) 243-1676 Fax (203) 239-7479 www.ulbrich.com United Wire Co., Inc. Bob Swanson (800) 840-9481 Fax (203) 752-1762 www.unitedwirecompany.com Zapp Precision Strip Byron Ress (203) 386-0038 Fax: (203) 502-6681 www.zapp.com

Fall 2011

Quick Reference Supplier Guide

Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 HTC TBE Whitelegg JayKase www.formingsystemsinc.com Gibraltar Corp. Michael Shapiro (847) 769-2099 Fax: (847) 913-4528 www.gibraltar8.com Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 Simplex Rapid/SECEM www.nimsco.com Oriimec Gabrielle Dion (859) 746-3318 Fax: (859) 746-3319 www.oriimec.com RK Trading Company Rob Meyers (847) 640-9771 Fax (847) 640-9793 Herdon, Bobbio

Furnaces / Ovens

HSI/Forming Systems, Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com JN Machinery Corp. Daniel Pierre III (224) 699-9161 Fax: (224) 699-9286 www.jnmachinery.com Precision Quincy Mike Koontz (815) 338-2675 Fax: (815) 338-2960 www.precisionquincy.com

Grinders

Bennett Mahler/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com OMD/Emanon/Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Spring Manufacturers

Century Spring Kurt Gillespie (213) 749-1466 Fax (213) 749-3802 www.centuryspring.com Diamond Wire Spring Co. Frank Fazio (800) 424-0500 www.diamondwire.com

Spring Manufacturers

Vulcan Spring & Manufacturing Co. Bob Gustafson (215) 721-1721 www.vulcanspring.com

Testers / Measurement

IST/NIMSCO Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 www.nimsco.com Larson Systems Bruce Hill (763) 780-2131 Fax: (763) 780-2182 www.larsonsystems.com Proto Manufacturing Ltd. Robert Drake (800) 965-8378 Fax: (519) 737-6330 www.protoxrd.com Spring Analysis Systems Inc./Forming Systems Inc. Tim Weber (269) 679-3557 Fax: (269) 679-3567 www.formingsystemsinc.com

Trade Associations

Spring Manufacturers Institute Lynne Carr (630) 495-8588 Fax: (630) 495-8595 www.smihq.org CASMI Tom Renk (630) 369-3466 Fax: (630) 369-3773 www.casmi-springworld.org

Wire Straighteners

Nichols International Machinery Systems Co. Jerry Jacques (563) 391-0400 Fax: (563) 445-0710 SECEM www.nimsco.com

Wire/Strip Materials

Gibbs Wire and Steel Bill Torres (800) 800-4422 Fax: (860) 628-7780 www.gibbswire.com Industrial Steel & Wire Dave Ritter (773) 804-0404 Fax: (773) 804-0408 www.industeel.com InterWire Frank Cardile Jr. (914) 273-6633 Fax: (914) 273-6848 www.interwiregroup.com Kiswire Trading Inc. Wan Dong Kim (201) 461-8895 Fax (201)461-8021 www.kiswire.com Koswire Sid Ryoo (770) 965-1145 Fax (770)965-1147 www.koswire.com Lapham-Hickey Steel Dave Conrad (708) 496-6111 Fax (708)496-8504 www.lapham-hickey.com Mapes Piano String Co. Bob Schaff (423) 543-3195 Fax: (423) 543-0118 www.mapeswire.com Precision Steel Warehouse Inc. Steve Kraft (847) 455-7000 Fax: (847) 455-1341 www.precisionsteel.com Radcliff Wire Inc. Scott Kirkpatrick (860) 583-1305 Fax: (860) 583-6553 www.radcliffwire.com Seneca Wire/FENIX, LLC Doug Stearns (419) 435-9261 Fax: (419) 435-9265 www.senecawire.com Suzuki Garphyttan Wire Kirk Manning (888) 947-3778 Fax: (574) 232-2565 www.suzuki-garphyttan.com Tool King Inc. Peter Hestad (800) 338-1318 Fax: (847) 537-6937 www.toolkinginc.com Ulbrich Stainless Steels & Special Metals Inc. Rich Papeika (800) 243-1676 Fax (203) 239-7479 www.ulbrich.com United Wire Co., Inc. Bob Swanson (800) 840-9481 Fax (203) 752-1762 www.unitedwirecompany.com Zapp Precision Strip Byron Ress (203) 386-0038 Fax: (203) 502-6681 www.zapp.com

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2001 Midwest Road, Suite 106 Oak Brook, IL 60523-1335 USA

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Why Partner With Gibbs? Our People. Aaron Adam Al Alison Alisyn Allan Allen Anderson Andrew Angel Audra Ben Beth Bev Bill Bob Boyd Brad Brent Brian Calvin Caralee Carlos Cathy Chad Charles Christine Cindy Claire Clyde Dadisi Dan Dana Daniela Dave Denise Diana Dick Don Duane Elaine Eric Fitz Francisco Frank Garry Gary George Glen Gloria Greg Gregory Heather Hector Herb Jack Jean Jeanne Jeff Jim Joe John Jonathan Jonathon Joyce Juan Julio Kelly Ken Kevin Kirk Lisa Luanne Manuel Maribel Marie Mario Mark Matt Mauricio Mike Neal Neil Pablo Pat Paul Paula Pedro Perry Peter Phil Piotr Raul Ray Rich Rick Ricky Rodney Roger Rosetta Sandy Shaun Shawn Steve Susan Terry Tom Tommy Tony Tricia Vern Wayne Every successful organization counts on its people. At Gibbs we have a team of dedicated employees you can count on, too. Men and women who truly care about the work they do and the customers they serve. They are really a special group and theyâ&#x20AC;&#x2122;re yours at no extra charge when you choose Gibbs.

reliable people, innovation and leading edge technology, the lowest total cost and a commitment to customer service and responsiveness beyond traditional expectations. Thatâ&#x20AC;&#x2122;s why so many leading companies have chosen to partner with us.

Since 1956 Gibbs Wire and Steel has represented a combination of excellent quality product, knowledgeable and The People You Can Rely On For Wire And Strip 1.800.800.4422 www.gibbswire.com

Connecticut 800 788-8112

Indiana 800 788-8113

Texas 800 788-8114

California 800 788-8115

North Carolina 800 788-8117

Ontario Mexico 800 387-2441 ++ 52(442) 384-3950

FEATURES

▪ Max. Temp.500°C (930°F). ▪ Seamless rolled edge belts eliminate tangled part damage. ▪ Easy opening cover insures part access & easy maintenance. ▪ 24 hour on/off timer provides energy savings & safety. ▪ Alarm for heating element failure and temperature over tolerance. ▪ Stepless belt speed adjustment insures smooth operation. ▪ More than 30 furnace models are available.

Electric Conveyor Ovens OPTIONAL ACCESSORIES

▪ Digital Speed Meter (DSM) ▪ Dual Timer System Controller (DSC) ▪ Solid State Relay (SSR) ▪ SCR Power Controller (SCR) ▪ One Week On/Off Timer (WT) ▪ Cooling Conveyor (HDC) ▪ Electrostatic Air Cleaner (ECO) ▪ AIAG-CQI9 specification capability ▪ Motor Monitoring (MM) ▪ Memory Card Recording (RS485) of Temperature and Belt Speed ▪ Wireless Recording of Temperature and Belt Speed for Multiple Ovens (WL)

ALSO CHECK OUT:

HB Series Box Ovens

HF Series Spiral Ovens

www.formingsystemsinc.com www.spring-testers.com

COILERS – FORMERS – BENDERS – GRINDERS – OVENS – TESTERS – VISION SYSTEMS