Springs spring 2013 vol 52 no2 by Spring Manufacturers Institute

SPRING 2013

A Publication of the Spring Manufacturers Institute / Vol. 52, No. 2

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Springmakers Chart the New Political Landscape

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Over the Fiscal Cliff for Tax Savings 28 Obamacare: Will it Batter or Bolster Your Bottom Line? 33 Government vs. Business 41

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President's Message From Steve Moreland

SMI Executive Committee President: Steve Moreland, Automatic Spring Products Vice President: Hap Porter, SEI MetalTek Secretary/Treasurer: Mike Betts, Betts Company Immediate Past President: Scott Rankin, Vulcan Spring & Manufacturing At Large: Steve Kempf, Lee Spring

SMI Board of Directors

Teamwork, Please! As I remember back to my first two years coaching my son Kyle’s AYSO soccer team, I am reminded of the vast differences in outcomes between those two seasons. The first year we were 0 – 16 and you guessed it, I was not nominated for “Coach of the Year.” Ironically, with some of the same players and a few new ones, one year later our team was 16 – 0! What was the difference? Teamwork! Our first team had some players with skill and major attitudes so getting everyone to play like a team and share the ball was very difficult. Pride and egos got in the way. So in spite of some good talent, we got clobbered. The next year we had skilled players minus the “attitude.” Each week we played, our guys developed more and more respect for each other and began passing and sharing the ball very well. The result was amazing teamwork and success. I don’t know about you, but as I look at the elected leaders in Washington, D.C. these days, I think they are in desperate need of teamwork! Washington politicians are looking more and more like my first AYSO soccer team; because of their gridlock, we in America are getting clobbered. There are too many huge egos and personal agendas. Our elected officials do not see themselves playing on the same team; they behave like they are on opposite teams and as a result America is suffering. We have some huge ideological differences at work. Those on the left are aggressively pushing an agenda of higher taxes, higher costs, more giveaways and more government control. Meanwhile, those on the right are trying hard to stand firm to protect an agenda of lower taxes, lower costs, fewer giveaways and less government control. Although these ideological differences have always existed in America, over the past several years the positions have become even more polarized. Personally, I believe it reflects a lack of leadership from the White House. What Washington needs now is teamwork, compromise, mutual respect and an unwavering focus on what is good for our country. It is time we Americans stand up and demand that our elected officials start behaving in the true best interest of America and not in the best interest of their own party agendas. We need a spirit of teamwork, compromise, and rational analysis of what is best for our country. Then we need our elected officials to act and act decisively before it is too late, before we become the next Greece and disappear into economic ruin. I hope you enjoy the articles and insights offered in this issue of Springs. The absolute future of our country hinges on the ability of our elected officials to wake up and realize we are all on the same team. For the sake of our children, Washington, Teamwork please!

Steve Moreland President, Automatic Spring Products stevemoreland@automaticspring.com

2 / SPRINGS / Spring 2013

Tom Armstrong, Duer/Carolina Coil • Torsten Buchwald, KernLiebers USA • Ann Davey, John Evans’ Sons • Mark DiVenere, Gemco Manufacturing • Chris Fazio, Diamond Wire Spring • Kurt Gillespie, Century Spring • Richard Guimont, Liberty Spring • Gene Huber Jr, Winamac Coil Spring • Miko Kabeshita, Ark Technologies • Charly Klein, Fox Valley Spring • Bill Krauss, Vulcan Spring • Don Lowe, Peterson Spring • Bill Marcum, MW Industries • Richard Rubenstein, Plymouth Spring • Dan Sceli, Peterson Spring • JR Strok, Mohawk Spring • Bill Torres, Gibbs Wire and Steel • Jeff Wharin, Bohne Spring

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 • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Bill Marcum, MW Industries • Brett Nudelman, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisors: Loren Godfrey, Honorary Member • Dan Sebastian, 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) 495-8588; 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 the following: ©iStockphoto.com/ﬁlo

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SPRINGS / Spring 2013 / 3

Contents

19 FEATURES

22 Springmakers Chart the New Political Landscape By Gary McCoy

27 Manufacturers Have a Growth Agenda for the Nation By Paul Hartgen

28 Over the Fiscal Cliff for Tax Savings By Mark Battersby

33 Obamacare Will it Batter or Bolster Your Bottom Line? By Philip M. Perry

38 America's Growing Minerals Deficit By Daniel McGroarty

COLUMNS 15 Be Aware Safety Tips Combustible Dust: Preventing and Mitigating the Effects of Fire and Explosions By Jim Wood

17 IST Spring Technology Spring Load Testing Machines: Important Features to Consider By Mike Bayless

19 Technical Times Spring Failure Analysis 101 By Ted Wilken

41 Flashback Government vs. Business By Joel Blackwell

44 Online Furnaces and 17-7 Stainless Steel By Daniel Pierre III

DEPARTMENTS 2 President’s Message 7 Global Highlights 12 Regional Spring Association Report

48 JSSE Presents Lectures and Awards

59 Springmaker Spotlight

By Sharbari Banerjee

4 / SPRINGS / Spring 2013

69 New Products

Teamwork, Please!

47 Rachel Chole Receives Women in Manufacturing STEP Award

53 A Review of Premature Spring Failures Related to Heat Treatment

67 Inside SMI

Determined to Succeed: A Profile of Ace Wire Spring and Form Co. By Gary McCoy

71 Advertisers’ Index 72 Snapshot Charly Klein, Fox Valley Spring

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Global Highlights North America MW Industries announced that it has completed the acquisition of Lifeline Products, Inc., a precision manufacturer serving the medical market. MW Industries is a portfolio company of Genstar Capital, a leading private equity firm. Founded in 1976, LifeLine Products of Wallingford, Conn. is one of the leading OEM manufacturers of custom hypodermic needles, assemblies and related medical products. The company is ISO 9002 registered. Lifeline’s equipment and customers will be integrated into MW’s Economy Spring division, based in Southington, Conn. Bill Marcum, CEO of MW Industries, commented: “The integration of Lifeline into the MW family of products will be a key complementary business to our current precision manufactured products. Lifeline currently shares customers with our Economy division and we have identified significant growth opportunities that will create a stronger operation from a customer and manufacturing process perspective. We believe that Lifeline’s existing customers will greatly benefit from the operational excellence at Economy as we bring these two companies together.” Marcum added that the company has completed four acquisitions in the last 18 months and is currently evaluating a number of additional strategic acquisitions from its robust pipeline. Sirois Tool Co., Inc. announced the recent acquisition of two industry leaders, North American Spring Tool (NAST) and All Five Tool, as new subsidiaries. The combined expertise of these companies in vendor solutions will contribute to the expanding product offerings and capabilities of the Sirois Tool team of companies. As part of Sirois Tool’s continuing growth, the acquisition of both NAST and All Five Tool will give its existing customers a stronger and more diversified company, as well as additional tooling options and services. The Sirois Tool team of companies will continue to serve as a leader in the tooling, gage and machine parts industries, while actively pursuing new products to serve these customers and new markets in which to expand. The acquisition welcomes a new customer base and two new types of tooling into its repository, while synchronizing with its existing tooling manufacturing capabilities. The NAST acquisition supports the spring and wire manufacturing industry, an advantageous addition to the bearing manufacturing and machine tooling markets.

The All Five Tool acquisition provides a line of standard and custom tool holders and inserts for many industries. Combining these tooling skills and product lines enables Sirois Tool to offer more tooling solutions to its existing customers as well as the NAST and All Five Tool customers. Sirois Tool will continue to provide precision tooling, i.d. grinding quills, gage products, machined parts and assemblies. Dow Gage, an acquisition made in 2005, will continue to provide in-house design and build capabilities for the complete line of Dow precision gages. Hickory Springs Manufacturing Company, a global manufacturer of integrated solutions and components to the furniture, bedding, transportation and a growing number of diversiﬁed markets, has acquired The C.E. White Co., a manufacturer of quality seating products for the commercial/transit and school bus markets. As a result, Hickory Springs will expand its footprint in the transportation seating market and provide customers with a complete seating solution. “Welcoming The C.E. White Co. to the Hickory Springs organization enhances opportunities for both companies as it leverages the core capabilities of each,” noted Hickory Springs’ president and CEO David Colburn. “This acquisition makes Hickory Springs a more well-rounded player in the industry, able to capitalize on its unique competitive advantage as a producer of multiple components that can now be combined to create an integrated seating solution, and bringing new opportunities to C.E. White in the process.” The integration of both companies was expected to be completed in early 2013. “I cannot begin to express my excitement about this opportunity, which brings together the capabilities and resources of two very well-established and long-term companies to the beneﬁt of both,” said Tony Everett, president and CEO, The C.E. White Co. “I liken it to a three-legged stool. Hickory Springs offers two legs of the stool, or in this case the seat – the metal frame and the foam – and C.E. White brings the third leg – cut and sewn covers and experience as a seat manufacturer – to create a solid company with an integrated solution for the transportation seating market. As a result, we can anticipate increased business opportunities and a positive impact on the communities in which C. E. White operates.”

SPRINGS / Spring 2013 / 7

Global Highlights

The C.E. White Co. will continue to be headquartered in New Washington, Ohio. Everett will report directly to Lee Lunsford, executive vice president and chief operations officer at Hickory Springs, to ensure a smooth and successful merger. Also at Hickory Springs, Valerie Reid has been promoted to the position of chief financial officer. Reid will report directly to David Colburn, Hickory Springs’ president and CEO. “I a m delig hted to welcome Valerie to her new position,” said Colburn. “Her proven track record as an instrumental member of our finance team and her personal strengths and attributes instill confidence in her ability to keep Hickory Springs on a solid financial footing as we seize new opportunities to move and grow in new directions.” Reid brings to her new position more than 14 years experience with Hickory Springs. Hired as a senior accountant in 1999, she held several positions, including corporate controller and director treasury and analysis, before being promoted to

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the position of ﬁnance director in 2011. Last year she was named corporate assistant treasurer, the position she held prior to her recent promotion. Reid earned a bachelor of science degree in business administration from the University of North Carolina at Chapel Hill. She holds an active Certified Public Accountant license and is a member of the North Carolina Association of Certiﬁed Public Accountants (NCACPA). For additional information about Hickory Springs, visit www.hickorysprings.com. Katy Spring and Manufacturing has announced the promotion of Jason West to general manager. West has been with the company since August of 1999 and is a third-generation springmaker, following his father, James We s t , a n d g r a n d f a t h e r, Claude West, of Flint, Texas. He has worked in all facets of the company, including manufacturing, estimating, quality, customer service and has served as production manager for the past eight years. West’s new position will involve overseeing the operations he has been instrumental in developing.

International The president and board of directors of the United Kingdom Spring Manufacturers Association (UKSMA) are pleased to announce the appointment of Adrian May as managing director of the Institute of Spring Technology. May has had an interesting and varied career, having spent nine years in the Royal Air Force as an avionics engineering technicia n on t he Tornado GR1 strike fighter aircraft, with responsibility for air radar, flight systems, air communications and weapons systems. Following t he R A F, M ay joi ned Br it i sh Airways installing TCAS systems (Traffic Collision Avoidance Systems) on Boeing 747 series aircraft. Having read a book called “The Goal” by Dr. Eliyahu M. Goldratt, May realized that he wanted to work in manufacturing and left the aerospace industry in 1996 to concentrate on building a successful career in sales and marketing. He has developed sales on all five continents and has a strong reputation for leadership and relationship building.

Global Highlights

In 2008, May joined United Springs Ltd., Rochdale as sales and marketing manager and in 2010 was appointed divisional sales and marketing director with responsibility for the sales teams in UK, Netherlands and France. May has an MBA from the University of Manchester and is a fellow of the Chartered Management Institute. He was awarded a chartership in management in 2006. May and his wife Laura have four children. His interests include Freemasonry and motorcycling. He may be contacted at +44 (0) 114 276 0771 or by email at a.may@ist.org.uk. Jonathon Wright has reached his 25th anniversary with Airedale Springs, becoming the 44th employee to join the Haworth, UK firm’s fellowship of long-serving employees. Wright began working for Airedale Springs as a springmaker and operative at its former Ebor Mills factory in Haworth in October, 1987, having spent the previous two years working on a Kibbutz in Israel. Over the years, Wright has produced hundreds of thousands of springs of different shapes and sizes and for multiple applications, having been trained using traditional hand coiling methods, as well as grinding, presswork and painting. Last year, Wright moved with Airedale Springs to its new purpose-built factory, The Spring Works, off Bridgehouse Lane, Haworth, after Ebor Mills was destroyed by a much publicized fire in 2010. Chairman Tim Parkinson said: “Longevity of service is a hallmark at Airedale Springs. Our people remain our strength and the fact that over 40 of them, both past and present, have clocked up well over 1,000 years between them is an amazing record – and demonstrates true loyalty.” Parkinson and his brother Sean, who is commercial director, are both members of the firm’s 25-year club. Airedale Springs now employs a 33-strong workforce and is looking forward to another two employees joining the 25-year-club in 2014.

Jonathon Wright, center, the latest member of Airedale Spings’ 25-year-club, is joined in front of the long-serving honors board by chairman Tim Parkinson, left, and commercial director Sean Parkinson.

Exhibitor applications for wire Düsseldorf 2014, International Wire and Cable Trade Fair, are now available online at www.wire.de/2330. Exhibitor applications for Tube 2014, International Tube and Pipe Trade Fair, are now available online at www.tube.de/2330. wire 2014 and Tube 2014 exhibitor applications can only be ﬁlled out online; no hard copies will be available. The events will be held from April 7 - 11, 2014 at the fairgrounds in Düsseldorf, Germany. A special feature at wire 2014 and Tube 2014 will again be the North American Pavilion, organized by Messe Düsseldorf North America (MDNA) together with the Wire and Cable Industry Suppliers Association (WCISA) of Stow, Ohio as the sponsor. The pavilion provides a costeffective means for companies to enter into or to expand their business in the lucrative overseas marketplace. The pavilion turnkey rental package includes a fully furnished booth, access to an attractive lounge area and the on-site service of a project manager, hostesses and interpreters.

SPRINGS / Spring 2013 / 9

Global Highlights

All technical work, set up and dismantling is included. In addition, U.S. Commercial Service staff will be on hand in the North American Pavilion to assist with export and licensing questions. To sign up as a wire 2014 exhibitor for individual space visit www.wire.de/2330; for Tube 2014 individual space, see www.tube.de/2330. To exhibit within the North American Pavilion, contact Messe Düsseldorf North America, 312781-5180 or info@mdna.com. For more details, visit www. mdna.com.

Also at Messe Düsseldorf, sites are confirmed for wire Southeast ASIA 2013 (to b e staged from September 17–19, 2013 in Bangkok, Thailand), wire Russia 2013 (to take place in Moscow from June 25–28, 2013) and wire South America 2013 (scheduled for September 17–19, 2013 in Sao Paulo, Brazil). For information on visiting or exhibiting wire Southeast ASIA 2013, wire Russia 2013 and/or wire South America 2013, contact Messe Düsseldorf North America, 312 -781-5180; or visit www.mdna.com ISO (International Organization f o r S t a n d a r d i z a t i o n) r e c e n t l y launched a new video that shows how international standards can help small and medium-sized enterprises (SMEs) be more competitive in global markets. ISO has also opened a new section on it s website h ig h l ig ht i ng ISO publications aimed to help SMEs benefit from standards. The video, available in English and French, points out that SMEs are at least 90 percent of companies in most economies and when they use ISO standards, it adds credibility and confidence in their products and services. ISO secretary-general Rob Steele comments: “ISO standards offer big benefits for small and medium-sized enterprises, helping them to compete on a level playing field with bigger enterprises, opening up export markets and opportunities to participate in global supply chains, and providing best business practice and state-ofthe-art requirements for the products and services they produce. This, in turn, leads to increased credibility for the SME and increased confidence in their product or service from the most important group of people a business has, its customers.” The new ISO video is the latest among more than 60 ISO videos which can be viewed on the ISO Website www. iso.org, on YouTube www.youtube. com/planetiso and on iTunes. The ISO YouTube site has already attracted more than 246,000 views. Q

10 / SPRINGS / Spring 2013

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Regional Spring Association Report

WCSMA Plans Spring Fling in Laughlin

WCSMA will hold its spring fling in Laughlin, May 17-19. (Photo: ©iStockphoto.com/Andrew Zarivny)

Members of the West Coast Spring Manufacturers Association (WCSMA) will head to Laughlin, Nev. for the association’s “2013 Spring Fling.” The event will be held from May 17-19 at Harrah’s Laughlin. The Spring Fling includes a golf tournament at the Laughlin Ranch Golf Club at a cost of $65 per person. Other local activities are planned, including the opportunity to schedule a spa treatment at Harrah’s Laughlin Salon and Day Spa.

Call Harrah’s Laughlin to make your hotel reservations at 877-8815955. Be sure to mention the WCSMA group code “S05WCS3” to obtain the discounted room rate of $69. For more hotel information, visit www. harrahslaughlin.com. WCSMA has scheduled its Table Top Convention for October 24, 2013 at the Holiday Inn in La Mirada, Calif. More details to come. For more information on WCSMA, visit the WCSMA Facebook page or www.wcsma.us.

The "New" NESMA Trade Show By Ted White, Hardware Products The 31st annual NESMA trade show was held on April 16. It has evolved from what was once a table top-only exposition, to a full-fledged trade show. This year brought spring manufacturers and vendors together in a unified effort to change the course of technical education. NESMA wanted to emphasize that the “blue collar worker” is dead, and the “skilled technician” is not only needed, but is in short supply. After the trade show and dinner, attendees heard from Ryan Costella, a well known advocate for technical education. NESMA (and specifically some of its very dedicated directors along with the Central Chamber of Commerce in Connecticut) spent c o u nt le s s h o u r s v i s it i n g w it h educators and politicians to invite them to the dinner. We wanted them

12 / SPRINGS / Spring 2013

to understand what the Connecticut manufacturing base needs from the educational system. To operate modern manufacturing equipment, NESMA believes skilled technicians need acute analytical ability and large doses of creativity. NESMA also believes that the current educational system, although well meaning, produces graduates for many administrative positions that simply no longer exist because of automation. NESMA further believes that if some current students were made aware of the technical opportunities, and then educated for these openings, that the current debate about “what happened to the middle class?” would correct itself automatically. Finally, NESMA believes that while this is not a new or unique thought, current efforts to bring

together manufacturers, educators and politicians are fractured and not as effective as they could be. NESMA decided to use its trade show as a forum to try and bring all these factions together to both coordinate a nd ra ise awa reness of what is needed from both the educational and political systems. It was another remarkable show with both exhibitors and registered attendees at an all time high. It is the hope of NESMA and all of the related groups who participated that the trade show helped visiting dignitaries see that manufacturing is alive in Connecticut. We also hope they saw the need for partnerships with the educational and political systems to change t he course of education. We will let you know how these efforts worked out in the next issue.

CASMI Elects New Officers The Chicago Association of Spring Manufacturers, Inc. (CASMI) held its “Installation Banquet and Dinner Dance” on Saturday, February 16 at Twin Orchard Country Club in Long Grove, Ill. CASMI’s new officers and board members for 2013-2014 are: • President, JR Strok, Mohawk Spring Corp. • Vice president, Anthony “Tony” Iuliano, Rapid Wire Forms • Secretary/Treasurer, Jeff Burda, Master Spring and Wire Form Company • Director, Joshua P. Kahn, Perfection Spring and Stamping Corp. • Director, Joe Wesner, Sterling Spring Corp., LLC • Director, Tony Pesaresi, Winamac Coil Spring, Inc. • Immediate Past President, Patrick “Rick” Ross, Rockford Spring Co.

New president, JR Strok, and his wife, Lisa, at the CASMI Installation Banquet and Dinner Dance.

CASMI’s annual “Member/Exhibitor/Supplier Golf Outing” will return to the Highlands of Elgin (Ill.) golf course on Thursday, June 6. For more information, visit www.casmi-springworld.org. Q

SPRINGS / Spring 2013 / 13

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Be Aware Safety Tips

Combustible Dust: Preventing and Mitigating the Effects of Fire and Explosions By Jim Wood

©iStockphoto.com/JohnnyPowell

ver the past few months there has been increased activity in OSHA enforcement of dust collection, accumulation and the hazards of grinding dust fire and explosion. Most spring manufacturers do have a considerable amount of grinding activity and depending on the type of metal used, there could be a significant possibility of a dust fire or explosion hazard. A recent OSHA Safety and Health Information Bulletin points out the hazards, control and prevention of combustible and explosive dust. Elements needed for a fire: • Combustible dust. • Ignition source. • Oxygen in air. Additional elements need for an explosion: • Dispersion of dust particles in sufficient quantity and concentration. • Confinement of dust cloud.

Facility Dust Hazard Assessment As with any potential hazard in the workplace, there must be a hazard assessment, hazard prevention and control program and employee training. A combustible dust explosion hazard may exist in a variety of industries, including spring manufacturing. If you are grinding aluminum, bronze, chromium (stainless steel containing chromium), iron carbonyl, magnesium, and zinc there could be a potential explosion hazard. Facility Analysis Components Facilities should carefully identify the following in order to assess their potential for dust explosion: • Metals that can be combustible when ﬁnely divided. • Processes which use, consume, or produce combustible dust. • Dust collectors. • Open areas where combustible dusts may build up. • Hidden areas where combustible dusts may accumulate. • Means by which dust may be dispersed in the air. • Potential ignition sources.

The primary factor in an assessment of these hazards is whether the dust is in fact combustible. Any “material that will burn in air” in a solid form can be explosive when in a finely divided form. Combustible dust is defined by NFPA 654 as: “Any finely divided solid that is 420 microns or smaller in diameter (material passing a U.S. No. 40 Standard Sieve) and presents a fire or explosion hazard when dispersed and ignited in air.” The same definition is used for combustible metal dust in NFPA 484, Standard for Combustible metals, metal powders, and metal dust.

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 630495-8597 or via email at regs@smihq.org.

SPRINGS / Spring 2013 / 15

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Electrical Classification The facility analysis must identify areas requiring special electrical equipment classiﬁcation due to the presence (or potential presence) of combustible dust. Dust hazard designation for electrical requirements is Class II. Dust Control • Minimize the escape of dust from process equipment or ventilation systems. • Use dust collection systems and ﬁlters. • Utilize surfaces that minimize dust accumulation and facilitate cleaning. • Provide access to all open and hidden areas to permit inspection and cleaning at regular intervals. • Use cleaning methods that do not generate dust clouds; use vacuum cleaners approved for dust collection. • Develop and implement a hazardous dust inspection, housekeeping and control program.

Ignition Control • Use appropriate electrical equipment and wiring methods. • Control static electricity, including bonding of equipment to ground. • Control smoking, open ﬂames, sparks and friction. • Separate heated surfaces and heating systems from dusts. Damage Control • Separation of the hazard (isolate with distance). • Segregation of the hazard (isolate with a barrier). • Deﬂagration venting of a building, room or dust collector. • Pressure relief venting for equipment. • Provision of spark/ember detection and extinguishing systems. • Explosion protection systems. Jim’s Regulatory Tip: Send typical samples of your grinding dust to a test lab for analysis to see if it is combustible or explosive. Q

16 / SPRINGS / Spring 2013

IST Spring Technology

Spring Load Testing Machines: Important Features to Consider By Mike Bayliss

ot everyone appreciates the factors that should be considered when purchasing a spring load testing machine. Springs require special consideration and general purpose material testing machines are not usually suitable for the task. This article will describe the major features that are required to ensure that accurate and repeatable results are obtained.

The Loading Frame The loading frame must be as rigid as possible, to minimize the frame deflection. Frame deflection can cause displayed length errors, and in some machines allows the spring platens to become non-parallel. Electronics and software can compensate for frame deflection, but the compensation will not be perfect. For smaller spring sizes with loads less than 500 N, most loading frames are of the ‘C’ type. This enables easy access to the platens for loading and unloading springs. This ‘C’ frame is the least satisfactory due to the bending moments that are applied to the linear guidance system. For loads greater than 500 N, an ‘H’ type frame using a pair of ballscrews should be used. This system ensures that the frame deflects symmetrically enabling better compensation. In both the ‘C’ and the ‘H’ type frames, the ballscrews should be preloaded to remove backlash. A substantial purpose built guidance system using well-spaced bearings of either bronze or recirculating type should be used for the crosshead. Load Cells Most commercial load cells are produced for weighing applications and are not suitable for spring testing due to their sensitivity to the additional forces and torques produced by springs. For smaller springs (less than 500 N) the double shear beam load cell will usually operate satisfactorily. Ideally, a cell deflection of less than 0.1 mm under full load is required for good dynamic response. For larger springs (greater than 500 N), the shear beam pancake type cell has been shown to offer the best performance. The overload protection of the load cell is also important, as inevitably during use of the machine the load cell will be subject to abuse. The signals from the load cell need to be amplified, processed, and displayed using a computer system. These electronics must be stable with temperature and

"H" Frame

"C" Frame

time. Switchable ampliﬁer ranges, which give extended measuring capabilities, are important to enable maximum machine utilization.

Length Measurement Digital machine tool linear transducers are now universally used for spring testing machines. These transducers typically have a resolution of 0.005 mm and an accuracy of+/-0.003 mm/m. However, when built into a machine, the systems accuracy will be degraded. The offset between the platens and the transducer will amplify the effect of any bearing play degrading the length accuracy. A displayed resolution of 0.01 mm is sufﬁcient in all but the smallest of machines when a resolution of 0.005 mm can be usefully utilized. For physically larger springs, the resolution can be usefully increased to 0.1 mm if required. Defining Machine Accuracy To ensure correct operation of the machine, the load and length transducers have to be calibrated at least every 12 months to prove their accuracy and repeatability. For compression and extension springs, machines must be Mike Bayliss is the senior design engineer at the Institute of Spring Technology (IST) in Shefﬁeld, England. He is principally involved with the design and development of IST’s extensive range of spring testing machines. Readers are encouraged to contact IST with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales, email ist@ist.org.uk.

SPRINGS / Spring 2013 / 17

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at least grade 1.0; it is even better if it is still grade 0.5 as deﬁned by BS 1610, DIN 51232 and ISO 10002. The grade number means the reading is accurate to that percentage of the reading. Machines are quoted with accuracies expressed as a percentage of full scale, a false impression of accuracy. To ensure that a small spring is not measured on a large test machine, the standards also stipulate that the machines can only be calibrated down to a lower limit set by the displayed resolution. This ensures that a small spring is not measured on a large test machine. The machine must be calibrated in both compression and extension mode. Length transducers are not covered by such a standard, however BS 1726 does stipulate an accuracy of +/-0.02 mm. Experience has shown this not to be a realistic value for all but the smallest of machines. It is considered that a value of +/-0.05/300 mm of deﬂection is a more achievable value.

Software The quality of the software supplied with a load testing machine is difﬁcult to assess as people’s likes and dislikes are very subjective. The controlling software should have the following features as a minimum: · Measurement of loads at length · Measurement of lengths at load · Measurement / calculation of spring rate · Prestressing · Tolerancing of any measured parameter · Printing of test certiﬁcates · Storing of test sequence and data for recall later 18 / SPRINGS / Spring 2013

Further features worth considering: · Measurement of free length · Measurement of initial tension · Measurement of hysteresis · Load-length or load-deﬂection graphs · Interfacing of external measuring equipment (e.g. micrometers) to the software · Spring rate-length or spring rate-deﬂection graphs · Measurement of solid length · Statistical analysis e.g.: X bar, range and histograms · Testing speed adjustment

Safety Considerations The safety aspects of spring testing machines are often not considered. The two main areas of concern are trapping points within the moving parts and the possible ejection of a spring. A correctly designed, fully enclosed and interlocked guard will protect against these dangers. All machines must meet safety regulations, and by law in Europe, all machines must comply with safety driven CE* regulations. Q *The CE marking, as it has been legally called since 1993, is a mandatory conformity marking for products placed on the market in the European Economic Area (EEA). With the CE marking on a product, the manufacturer declares that the product conforms with the essential requirements of the applicable EC directives. (Source: Wikipedia)

Technical Times

Spring Failure Analysis 101 By Ted Wilken

prings come in varying sizes, types, different materials and shapes. Every now and again, springs will break. The question is, “Is it useful to ﬁnd out why the spring failed?” Some of the reasons why failure analysis is useful for a spring manufacturer / supplier include: a) maintaining good relationships with users; b) to determine whether there is a manufacturing problem; c) to verify that good material was used to make the spring; and d) to determine if the spring design needs to be changed, to name a few.

Conducting a failure analysis is a process where several of the following elements are performed to determine needed information. At Exova, Inc. a typical full failure analysis includes the following elements: a) collect background information; b) perform a visual examination; c) check material chemistry to verify material grade; d) perform tensile properties testing on starting wire or strip; e) examine the fracture surface in the scanning electron microscope to determine the fracture origin and fracture mode; f) use the energy dispersive x-ray spectroscopy system of the scanning electron microscope (SEM) to analyze inclusions, corrosion scale or other features to identify the elements present; g) examine the microstructure of the spring material to look for seams, inclusions or other conditions; and h) Knoop or Vickers micro-indentation hardness testing on a cross-section to verify material hardness and heat treatment or cold-working condition. Photographs and ﬁgures are included to document our observations in our reports. Not all failure analyses require all the testing listed above. In some cases, a satisfactory failure analysis can be achieved only using some of these elements.

A cross-section of a seam in a steel material.

When conducting a failure analysis, it is important to keep in mind that you should not try to prove that the conclusion you have already made is correct. Rather, the proper way to conduct a failure analysis is to use the evidence you gather as a basis for disproving as many of the possible causes of failure as you can. The cause you cannot disprove is most likely the real cause of failure. Before deciding what you want to include in a failure analysis, it would likely help to know a bit more about each of the steps used in a full failure analysis.

Background Information Getting the background information – the who, what, when, where, why and how – for a failure is often overlooked and yet can be key to resolving why a spring failed. Information that is not supplied or overlooked can often be very important. Ted Wilken is a metallurgical engineer at Exova’s Glendale Heights, Ill. lab. He has been conducting failure analyses since 1976. His failure analyses have included springs of all types. In addition, various components of all material types have been evaluated for cause of failure in the chemical, aerospace, automotive and other industries.

SPRINGS / Spring 2013 / 19

This view shows the faceted, “rock candy” appearance that is typical of a brittle intergranular fracture.

For example, if a broken spring displays an intergranular fracture, it may take extra time to realize that failure was caused by hydrogen embrittlement. Not ﬁnding out early that the spring was immersed in a nitric acid solution to passivate the steel but was then not baked to remove hydrogen can delay the determination of the problem and recommending the corrective action.

This view shows the elongated microstructure of cold-drawn music wire (Etchant: 5% Nital)

Visual Examination Easily overlooked is the cheapest form of examination— the visual examination. When performing a visual examination, one wants to observe as much as possible, such as: Is the spring discolored? Discoloration could arise from corrosion, heat input or contact with a different material. What does the fracture look like? For a coil compression spring, the fracture can show a spiral path that indicates torsional loading. A flat fracture through the spring can indicate brittle fracture. If the spring changes cross-section, ductile overloading of the material can be indicated. In one spring examination, it was seen that there was heat tinting discoloration on the ends of the spring. This discoloration was not uniform and was evidence of a variable heating profile on the spring length during tempering. Quantitative Chemistry Analysis A chemistry check of the material is often an important step to verify that the material you received is what you believed it to be. Hardened steel parts that have been plated should also be checked for hydrogen, especially where brittle intergranular fracture is indicated. Hydrogen pick-up can occur when steel parts are electro-plated or exposed to processes that use acid. Hydrogen pick-up can cause brittle intergranular failure of hardened steel springs. The corrective action is to bake the parts after exposure to acid solutions and/or electroplating. Microstructure Examination A microstructure examination can be important. Some material specifications require that the material does not have decarburization to more than a specified depth. Examination of a transverse cross-section of the material is useful to verify that the material meets a specified limit on depth of decarburization or to inspect for seams in the material.

20 / SPRINGS / Spring 2013

This view shows a ﬂat fracture through a spring coil. At higher magniﬁcation, we observed the faceted features of brittle intergranular fracture.

Other material speciﬁcations require the material to be in the cold-worked condition. Cold-working causes the metal grains to become elongated. A longitudinal cross-section can verify whether the metal grains are elongated. Similarly, a longitudinal cross-section can be made to look for evidence of inclusions in the material if the speciﬁcation has micro-cleanliness requirements.

Tensile Properties Testing Some material specifications identify requirements for a minimum yield strength or tensile strength. Tensile properties testing can be performed on incoming wire or strip to verify that the material has the required tensile properties. Micro-Indentation Hardness Testing Knoop or Vickers micro-indentation hardness tests are typically performed on cross-sections to verify that the material meets the speciﬁed hardness for either coldworked or heat treated spring material. These tests can be made with or without a microstructural examination. Scanning Electron Microscopy Want a better look at the fracture surface to determine the fracture mode? Use a scanning electron microscope (SEM). Think of an SEM as a closed circuit television that can zoom in on features that become visible at a magniﬁcation of 1000X or more. The SEM is typically used to verify the fracture origin location and to determine the fracture mode. Examples are: Fatigue failures show striations on the fracture surface that are parallel to one another and are concentric around a fracture origin. Ideally, one striation indicates one incremental increase in fracture propagation. This means that fatigue fracture occurs in numerous incremental steps and not all at once. Fatigue is considered to be a brittle fracture process.

This view shows the striations of a fatigue failure. The measurements represent the striation width.

Intergranular fractures display angular faceted features that are reminiscent of rock candy. Intergranular fracture is a brittle fracture mode that can occur due to stress corrosion cracking, embrittlement due to improper heat treatment, hydrogen embrittlement (in hardened steel) due to plating or exposure to acid baths. Ductile failures display features that look like dimples. Typically, the spring material also shows a change in cross-section when examined visually. Dimpled fracture is a ductile fracture mode that indicates the material was subjected to excessive loads.

Energy Dispersive X-Ray Spectroscopy While the fractured spring is still in the SEM, the energy dispersive x-ray spectroscopy (EDS) system is used to analyze inclusions, corrosion scale or other features to identify the elements present. This is useful where material seams are present or where corrosion is indicated as a cause of failure. Other Testing Based on the results obtained from typical analyses, other types of testing may be required to determine the root cause of spring failure. Other tests could include Charpy impact testing and cyclic load testing. Q Whatever your failure analysis needs, engineers at Exova’s Glendale Heights, Ill. laboratory are ready to help you to determine why your spring failed and offer recommendations as to how to avoid recurrence of the problem. SMI has negotiated a 20 percent discount with Exova’s Glendale Heights facility for member companies. For more information, contact Exova’s engineering services manager, Chirag G. Shah at 630221-0385, chirag.shah@exova.com.

SPRINGS / Spring 2013 / 21

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Springmakers Chart the New Political Landscape By Gary McCoy, Managing Editor 7U DLQ

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Politics. The mere mention of the word conjures many thoughts and opinions, especially in the wake of the 2012 U.S. presidential election. In this special edition on politics we present several articles to help you understand the political landscape that is expected to unfold over the next four years for springmakers. First is an article by the National Association of Manufacturers (NAM) on the policy impact of the current administration upon manufacturers. Next are two articles on taxation and regulation. An article by Mark Battersby looks at the “fiscal cliff” tax package adopted at the end of 2012 and the potential tax savings available to springmakers. We then present an article by Phillip Perry on the Affordable Care Act, more commonly known as Obamacare, and how it could impact small and large companies in different ways. We also reprint an article by Daniel McGroarty, first published in the Wall Street Journal, on America’s growing mineral deficit. Finally, in our regular feature, “Flashback,” we reprint an article first published in October 2001 on “Government vs. Business.” The overarching, timeless principle of this article hasn’t changed: “The power to influence government is yours, if you’re willing to make the effort.” We hope this package of articles will help you chart your course as a company in the new political environment you face. Speaking of opinions, we asked SMI members to answer this question: “Now that the President has given his State of the Union address and the new Congress has convened, what is your outlook on the U.S. political landscape and how it will impact your business?” Presented here are some of the answers we received.

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Springmakers Speak on Politics

“I am very concerned that the approach of taking from the medical device manufacturers will drive a reduction in R&D within the United States. This will cause the component part manufacturing to go offshore as well. This will reduce the opportunities for us moving forward.” Chris Witham, Motion Dynamics Corp.

“We hope to hold on for four more years; both Republicans and Democrats in Washington are a bunch of misfits who have an insatiable spending problem. Combine that with a Democratic Senate that has not felt the need to pass a budget on spending in nearly five years, and a President who is giving the house away on an international basis. No one is focusing on solving top issues. Our healthcare costs have risen nearly 75 percent since Obama took office and there is no end in sight, other than eliminating people from our payrolls and going with temps. The President’s request to raise the minimum wage to $9 an hour would all but just ship even more jobs overseas and south of the border. We operate in the state of Illinois, and it has become the most inept and politically corrupt unionized state, with massive underfunded pension obligations to state employees. A federal bailout is probably the only way out. All right, I’m stepping back away from the edge of the cliff, but there is not one positive thing to say about the political direction of this country.” Reb Banas, Stanley Spring & Stamping Corporation

“Uncertainty of the direction of the solutions to the ﬁscal problems will continue to hold back growth and ultimately restrict our future capital spending. It continues to hold back our customers in certain markets that are directly tied to long term capital goods expenditures.” Steve Wunder, Duer/Carolina Coil

24 / SPRINGS / Spring 2013

“I think the business outlook in general can be captured almost in a single phrase: ‘Uncertainty is leading to a lack of optimism.’ Several strategies of the current administration have the potential to undermine growth, limit job creation and impact the overall ‘well-being’ of the middle class: • The philosophy that government can create jobs • Government spending is a solution to a suffering economy • Increased taxes won’t undermine job creation • Increasing minimum wage… businesses hire fewer people First, small business creates 64 percent of new jobs in this country and employs nearly half of all American workers. Increasing tax burdens and healthcare costs cannot create a single job. As a matter of fact, the head of the current administration was quoted in 2010 (paraphrase) that ‘raising taxes in a fragile economy would be a mistake resulting in lost jobs.’ Second, healthcare costs are increasing and projected by the CEO of Aetna to potentially increase 20 to 50 percent with the start of Obamacare’s regulations in 2014. Lastly, excessive spending and creating debt has got to stop. You can’t run a household, a business or our country by doing this. It stifles growth and security. There is a limit as to what you can borrow. The government’s role is to create a positive environment for business growth and security to our country. As the owner of Marik Spring, I assume a greater degree of personal risk to run a business. There’s more at stake. The strategies I support have enabled me to expand our revenues for the past three years, and will assist Marik Spring to see its way through the challenges ahead. Our strategy is to provide ‘controlled growth,’ developing new customers while improving service to existing customers. It begins with integrity in dealing with our customers and our employees. • We will value customers and communicate that core value. We will make our business simple, understandable and predictable to our customer base. • We will “tighten” our filtering process for new hires. People are our most significant resource. Starting with good people, then combining ongoing training, will support growth and commitment. We are loyal to the staff. • Two Attitudes of Success • Deal with change…we’ll find a way. • Avoid complacency…we’re not victims.”

“It is my ﬁrm belief that the reason China has been able to make such extraordinary gains in recent years is that industry and government act as fully supportive partners. The atmosphere in the United States is nowhere near that supportive. While some programs do exist to help manufacturing, the overall effect of the President’s tax desires and other social programs are at the expense of small business. This clearly signals that not only are government and industry not partners, but in some instances they are adversaries.” Ted White, Hardware Products

Greg Bedrick, Marik Spring

SPRINGS / Spring 2013 / 25

26 / SPRINGS / Spring 2013

SPRINGMAKERS CHART THE NEW POLITICAL LANDSCAPE

Manufacturers Have a Growth Agenda for the Nation by Paul Hartgen

anufacturers in the United States are ready to power the economy. With the right policies in place, our nation’s job creators will transform a difﬁcult and sluggish recovery into an economic revival. After all, manufacturing has the highest multiplier effect of any other economic sector. For every $1.00 spent in manufacturing, another $1.48 is added to the economy. Investments in manufacturing multiply across the economy, creating jobs and growth in other sectors. Simply put, manufacturing makes America strong. Despite some improvements in sales and production, manufacturers continue to have persistent worries. Progrowth policies are needed now, more than ever, to grow and create jobs. The United States needs a comprehensive plan for economic growth. A bipartisan commitment in Washington to pro-growth policies will make our nation a more competitive place to do business. In an ongoing effort to show policymakers the importance that manufacturing has to this great country, the National Association of Manufacturers (NAM) recently released A Growth Agenda: Four Goals for a Manufacturing Resurgence in America. This agenda sets a roadmap for economic growth and enhanced competitiveness for manufacturers. This plan is a benchmark for policymakers and provides a set of goals that will get the U.S. economy moving again. A Growth Agenda will guide policymakers to choose policies that make this country a better place to invest, a better place to innovate and a better place from which to export. Our elected leaders must put politics aside and choose policies that strengthen our workforce so that it meets the needs of

manufacturing in the 21st century. A Growth Agenda serves as a blueprint for competitiveness that will unleash the economy and manufacturing’s outsized multiplier effect. Importantly, manufacturers’ aspirations are ones that all Americans who want to maintain our country’s economic advantage can rally around. The following four goals that manufacturers have laid out are the keys to getting our nation moving again: 1. The United States will be the best place in the world to manufacture and attract foreign direct investment. 2. Manufacturers in the United States will be the world’s leading innovators. 3. The United States will expand access to global markets to enable manufacturers to reach the 95 percent of consumers who live outside our borders. 4. Manufacturers in the United States will have access to the workforce that the 21st-century economy demands. These goals are simple, common sense choices—choices that can deliver tax reform, enact an “all-of-the-above” energy policy, open and expand global markets to manufacturers and spur innovation. With this agenda as their guide, policymakers have everything they need to ensure a thriving and robust manufacturing sector. Manufacturing makes us strong, and Congress and the Administration must embrace policies that make our country more competitive. With the right policies in place, manufacturers in the United States will ignite the spark that will fuel a manufacturing resurgence. To download your copy of A Growth Agenda, visit http://bit.ly/NAMgrowthagenda. Q

©iStockphoto.com/Don Bayley

Paul Hartgen is the executive director, Council of Manufacturing Associations, National Association of Manufacturers (NAM) in Washington, D.C. SMI is a member of the NAM’s Council of Manufacturing Associations. SPRINGS / Spring 2013 / 27

SPRINGMAKERS CHART THE NEW POLITICAL LANDSCAPE

OVER THE FISCAL CLIFF FOR TAX SAVINGS By Mark E. Battersby

he so-called “Fiscal Cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. On the downside, employees are already ﬁnding less in their paychecks because the American Taxpayer Relief Act did not extend the payroll tax holiday that had reduced Social Security payroll deductions from 6.2 percent to 4.2 percent on earned income up to the Social Security wage base ($113,700 for 2013). It is a similar story for the self-employed. For small and medium sized spring manufacturers and suppliers there is good news and bad news contained in the ﬁscal cliff tax laws. First, the good news: Greater certainty in taxes. The owners and operators of many springs businesses have grown used to many longstanding tax breaks but they are also used to the uncertainty of whether they will be renewed each year. While many tax breaks were allowed to expire at the end of 2011, the new tax law renews them retroactively, allowing spring manufacturers and suppliers to claim them on both their 2012 and 2013 tax returns.

Researching Tax Savings A good example is the often overlooked, neglected or difﬁcult to understand Research and Development (R&D) tax credit. The R&D tax credit, a reduction in the spring operation’s tax bill as opposed to a deduction from the amount that tax bill is based on, has been extended through 2013 and made retroactive for 2012. The R&D credit may be claimed for increases in business-related research expenditures. While only for research in the clinical sense, many of the small businesses it was designed to help have in the past shied away from the complex rules. Perhaps the potential of reaping a share of the $14.3 billion in tax savings may entice more spring manufacturers to investigate the research tax credit. Equipment Write-Offs for Profitable Operations The American Taxpayer Relief Act extended the Tax Code’s Section 179, ﬁrst-year expensing write-off. Now, the higher expensing limits in effect in 2011 have been reinstated for 2012 and extended for equipment and business property expenditures made before December 31, 2013. Thus, a spring manufacturer can expense or immediately deduct up to $500,000 of expenditures in

28 / SPRINGS / Spring 2013

WHILE MANY TAX BREAKS WERE ALLOWED TO EXPIRE AT THE END OF 2011, THE NEW TAX LAW RENEWS THEM RETROACTIVELY, 2012 and 2013, subject to a phase-out if total capital can exclude from his or her ALLOWING SPRING expenditures exceed $2,000,000. income 100 percent of any The tax break that allows profitable spring businesses to gain realized on the sale or MANUFACTURERS write-off large capital expenditures immediately -– rather exchange of so-called “small than over time -– has long been used as an economic stimulus business stock” acquired prior AND SUPPLIERS by our lawmakers. Today, the new law allows 50 percent to January 1, 2014 and held TO CLAIM THEM bonus depreciation for property placed in service through for more than five years. The 2013. Some transportation and longer-lived property are even amount of gain that can be ON BOTH THEIR eligible for bonus depreciation through 2014. ignored is limited to the lower To be eligible for bonus depreciation, property must of $10 million or 10 times the 2012 AND 2013 be depreciable under the standard MACRS system, and basis or book value of the small TAX RETURNS. have a recovery period of less than 20 years. Code Section business stock disposed of 179 first-year expensing remains a viable alternative, especially for small businesses. Property qualifying for the Section 179 write-off may be either used or new in contrast to the bonus depreciation requirement that the taxpayer be the “first to use.”

during the tax year. To be eligible, small business stock must have been issued after August 10, 1993, and acquired by the investor at its original issue. The small business stock must also have

More, More and More The Work Opportunity Tax Credit (WOTC), a tax credit that rewards employers that hire individuals from targeted groups, has extended to December 31, 2013 and applies to individuals who begin work for the employer after December 31, 2011. Under the revised WOTC, spring manufacturers and suppliers hiring an individual from within a targeted group are eligible for a credit generally equal to 40 percent of first-year wages up to $6,000. Prior to 2005, our tax laws contained a number of provisions designed to promote the export of U.S. manufactured products and services. Today however, only the “Interest Charge - Domestic International Sales Corporation” or “IC-DISC,” a unique business entity for exporters has survived. Although the American Taxpayer Relief Act of 2012 raised the tax rate on some qualified dividends from 15 percent to 20 percent, the so-called IC-DISC, geared toward small and medium sized manufacturers, continues to allow closely-held exporters to use the qualified dividends tax rate to create tremendous tax savings. In a nutshell, the benefit is derived from getting dividend tax treatment for what would otherwise be ordinary income. Financing it All The new law extends the temporary exclusion of 100 percent of gain on certain small business stock used by so many businesses to attract investors. In general, an investor

SPRINGS / Spring 2013 / 29

been issued by a regular domestic, incorporated business, with gross assets of less than $50 million. Although an S corporation is a pass-through entity and not usually subject to income taxes, it is liable for the

tax imposed on built-in gains or capital gains. The tax on built-in gains is a corporate level tax on S corporations that dispose of assets that appreciated in value during the years when the operation was a regular C corporation. The new law extends a relaxed version of the provision that limits the “recognition period” to ﬁve years, but only for “built-in gains” recognized in 2012 and 2013. Thus, if a spring manufacturer or business elected S cor porat ion stat us begi n n i ng January 1, 2007, it will be able to sell appreciated assets it held on that date without beging subject to a hefty tax bill. Anyone in this situation may wait to take advantage of this provision but are advised to consult with a tax professional. 50+ reasons to select Elgiloy as your exotic alloy supplier.

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Taxing it Alone Thanks to the new legislation, single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013 because of a higher 39.6 percent income tax rate and a 20 percent maximum capital gains tax. For other individuals, the alternative minimum tax (AMT) has finally been indexed for inflation. Ironically, the AMT was created to ensure that wealthy individuals would pay some kind of income tax, but not middle-income households. The new law increases the 2012 exemption amounts to $50,600 for unmarried individuals and $78,750 for jointly-filing couples. For 2013, the AMT exemption amounts are predicted to be $80,750 for married couples filing jointly and $51,900 for single individuals. Estate Taxes Never Die Always of significant interest to family-owned businesses, the estate tax has long been a bit of a mixed bag. The $5 million dollar per person

ALTHOUGH IT IS NOT THE GRAND BARGAIN AS ENVISIONED BY LAWMAKERS, MANY POPULAR exemption was kept in place (and indexed for inďŹ&#x201A;ation). are taxed only once on the BUT TEMPORARY The top rate was, however, increased to 40 percent, income. With a regular C effective January 1, 2013. This change to 40 percent is corporation distributions BUSINESS TAX expected to increase government revenues from 2012 would ďŹ rst be taxed at the levels by $19 billion. Other good news for estate planning: corporate level and once again BREAKS WERE portability is kept in place and estate and gift taxes remain at the shareholderâ&#x20AC;&#x2122;s level for INCLUDED IN THE uniďŹ ed â&#x20AC;&#x201C; i.e., the $5 million stays in place for gift tax an additional 15 percent or 20 purposes as well as estates. And it is all permanent. percent, plus the 3.8 percent AMERICAN TAXPAYER net investment income tax. That double t a x at ion Planning Opportunities Abound RELIEF ACT.

The majority of small and medium spring manufacturers operate as pass-through entities, such as partnerships and S corporations. ProďŹ ts are passed through to their individual owners and therefore are taxed at individual income tax rates. Some business owners might be considering switching to a regular C corporation with its top rate of 35 percent, rather than doing business through an S corporation, LLC, etc. and subjected to a top rate of 39.6 percent on the pass-through income. Looking much deeper than the tax rates is important, however. With a pass-through entity the shareholders

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becomes even more signiďŹ cant on the sale of a spring business. Although there are provisions in the tax law that allow all or a portion of the gain on the sale of a business to be excluded or ignored, they are limited. Another consideration, particularly for small businesses, is that any expenses disallowed by an IRS auditor will only result in increased income to the pass-through entity. Doing business as a regular corporation, disallowed personal expenses increase the income of the corporation and are taxed as constructive dividends to the shareholders. The same is true for unreasonable compensation of shareholder/ofďŹ cers. It should also be kept in mind that if a switch is made from an S corporation or a regular C corporation, a switch back to an S corporation canâ&#x20AC;&#x2122;t be made for ďŹ ve years â&#x20AC;&#x201C; unless permission is received from the IRS. If an LLC or partnership is incorporated, there can be expenses and potential tax consequences.

Coming Attractions Although it is not the grand bargain as envisioned by lawmakers, many popular but temporary business tax breaks were included in the American Taxpayer Relief Act. Despite the Code Section 179 small business expensing, bonus depreciation, and the Work Opportunity Tax Credit and other potentially rewarding tax provisions, the new law is effectively a stop-gap measure designed expressly to prevent the onus of the expiration of the Bush-era tax cuts from falling on middle-income taxpayers. Congress must still address spending cuts and may even tackle tax â&#x20AC;&#x153;reform.â&#x20AC;? The time is now for every owner, operator and manager to consult with their accountants and/or tax professionals to focus on the potential savings offered to both spring manufacturers and industry professionals, with these newly revised, extended and expanded business credits, deductions and tax write-offs. Q

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SPRINGS / Spring 2013 / 31

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SPRINGMAKERS CHART THE NEW POLITICAL LANDSCAPE

Obamacare: Will it Batter or Bolster Your Bottom Line?

Image Source/Punchstock

By Phillip M. Perry

usiness owners must act now to comply with the federal Affordable Care Act (ACA). Also known as “Obamacare,” the law mandates minimum health insurance standards that in some cases will lead to higher premiums. Large employers with more than 50 full time workers must compare the cost of offering compliant insurance against that of dropping the beneﬁt altogether. Smaller businesses are relieved of penalties and can take advantage of tax credits, state insurance exchanges, and premium reform. If the system works as planned, all employers will beneﬁt from greater competition as insurance carriers compete for a vast new pool of customers. The ACA arrives at a time of rising health insurance costs for business owners. Annual premiums for employer-provided family coverage grew to just under $16,000 in 2012, a rate some

four percent higher than the previous year according to a report from the Kaiser Family Foundation (kff.org). While no one can predict exactly how the law will affect costs, larger employers may have more to worry about than smaller ones. “Some 34 percent of employers participating in our recent survey expect health insurance premiums to rise by at least three percent because of the law,” reports Joan Smyth, partner at the New York Citybased Mercer consulting ﬁrm. Mercer’s survey was conducted among businesses of 100 or more workers. Just as troubling for these large employers are the anticipated administrative costs for retooling the corporate beneﬁts package: Nearly one of four Mercer survey participants state they will have to change their

SPRINGS / Spring 2013 / 33

current health insurance offerings in some way to comply with the law. Such changes might involve to whom the coverage is offered, what coverage is offered, or how much is charged to employees.

Small is Good How about the smaller employers? They have a better chance of turning the new law to their advantage. “Generally speaking the law is more favorable to smaller businesses,” says Shawn Nowicki, director of health policy at Northeast Business Group on Health (NEBGH), a coalition of 175 employers, unions and health care providers. Here’s a rundown of how small operators may beneﬁt from the law’s provisions: Competitive exchanges. Competition is good. That’s the theory behind the new statewide health insurance exchanges, designed to allow small businesses to shop for plans from competing carriers. These exchanges will be available for employers with 50 or fewer full time (or equivalent full time) people in 2014. “To understand how the exchanges will work, imagine navigating to a travel website that aggregates airfares,” says Karl Ahlrichs, beneﬁts consultant for Indianapolis based insurance broker Gregory & Appel. “You type in your parameters and the site sorts your options and you

34 / SPRINGS / Spring 2013

pick what you want. That’s what employees will be doing with the exchange sites.” Under the best of conditions, the new exchanges will also help trim the human resources overhead by providing a host of robust administrative services. “Businesses that send employees to the health insurance exchanges will be getting out of the health insurance management business,” notes Ahlrichs. Premium reform. Small businesses have long been the targets of prohibitive premium hikes when one employee is hit with a costly illness. The new law levels the playing field. “Starting in 2014 insurance carriers will not be able to set premiums based on health status, sex or claim history,” says Julie Stich, director of research at the International Foundation of Employee Benefit Plans (IFEBP), a research organization based in Brookfield, Wis. “That will help small group plans where one catastrophic claim can cause health costs to go up.” Penalty exemption. If you have 50 or fewer full time employees you will be exempted from penalties for not providing health insurance. Tax credit. The law provides for a tax credit for businesses with 25 or fewer employees if the company pays at least half of the employee premiums. Employee mobility. The new law may offer a hidden benefit to smaller businesses: access to higher quality personnel. “Today at larger employers there are many high quality mid-career professionals who are frustrated because they cannot be very entrepreneurial,” says Ahlrichs. “They would love to join a smaller organization where they can try things out, or they might want to band together and start something.” In the current system, says Ahlrichs, if such people quit their current positions they are uninsurable. “They may have a daughter or wife who is a diabetic or cancer survivor. Or they themselves may have some chronic condition. As a result, they are handcuffed to their desks because of health care.” When the exchanges come online, the handcuffs come off. “There will be a significant shift in high performing talent out of the larger organizations and into smaller ones,” says Ahlrichs. “This could be a huge benefit to small entrepreneurial organizations which position themselves as places where talented people can exercise some freedom.” Downward pricing pressure. Small and large employers alike may be helped by the ACA’s encouragement of greater medical fee transparency, says Ahlrichs. In consumer-driven health plans, people will be given a set amount of money with which they can shop for services. They will be able to go to a website, enter a service such as “appendectomy” and get a list of physicians that perform that procedure, a quality rating and a cost. “Comparison shopping should put downward pressure on prices,” notes Ahlrichs.

Broker transparency. Finally, all employers may get a better handle on the broker fees that have in the past been hidden elements of insurance costs. In response to the federal mandate to reduce the administrative portion of premiums, brokers may revert to charging discreet fees for services. The exposure of such fees should in turn spark efforts toward accountability and cost reduction as brokers compete for client business.

Larger Employers: Play or Pay Employers of over 50 full time (or equivalent full time) employees must offer health insurance at a certain level of benefits required by the new law. In some cases those levels will be higher than what is currently offered in the workplace. That can mean higher premiums. As a cost-saving move, some employers may opt out of offering health insurance, or offer insurance at less than the requisite levels. In such cases they will pay penalties under the following scenarios: Scenario 1 - If the employer offers no health insurance coverage, the penalty is $2,000 per employee, for all full time employees (except for the first 30), as soon as one full time employee goes to an exchange and receives assistance in purchasing coverage. Scenario 2 - If the employer offers “unaffordable” coverage (that is, with premiums over 9.5 percent of family income), the penalty is $3,000 for each employee who goes to a state exchange and receives assistance in purchasing coverage. The maximum penalty is equal to the amount in the first scenario above.

Decision Time Some of these larger employers may be tempted to pay the penalties described above rather than incur the expense of mandated coverage. “A lot of CEOs may be tempted to tell their employees, ‘I want out of the health care business. Go to the exchange and I’ll pay the fine,’” notes Ahlrichs. Employers who decide not to offer the insurance should realize there are additional ramifications, points out Ahlrichs. The first problem is that the fines are not tax deductible. The second problem is that the employees who go to the exchanges find out insurance is not free. “Maybe the premium for a family is $8,000 annually,” poses Ahlrichs. “Who pays it? If the employer wants to keep the employees, the employer may want to give them the $8,000 needed to pay for their insurance.” However, adds Ahlrichs, the story doesn’t end there. The premium payments are now taxable, so paychecks have to be grossed up to around $10,000, in the above example, so the employees can pay premiums out of aftertax dollars. Put it all together and cessation of a health insurance program can backfire, concludes Ahlrichs.

Employers who decide not to offer the insurance should realize there are additional ramifications, points out Ahlrichs. The first problem is that the fines are not tax deductible. The second problem is that the employees who go to the exchanges find out insurance is not free.

Keeping Up Realistically, though, the decision to retain or drop health insurance will often depend less on the costs of noncompliance than on the employment market. No one wants to lose top talent to other employers offering better beneﬁts. As a result, many businesses seem to be playing a waiting game. “We keep hearing statements such as ‘We are afraid to be the ﬁrst one to drop coverage, but we are not afraid of being the second or third,’” says Nowicki. Maybe that’s why most employers say they will continue to offer what is viewed as a vital benefit. “Employers see health insurance plans as important tools for employee satisfaction, retention, and for attracting talent in the future,” says Stich. “In our surveys only one or two percent of employers say they will not provide health insurance coverage.”

SPRINGS / Spring 2013 / 35

In analyzing their workers for full time equivalencies, employers are required to apply a measurement or “lookback” period that can be any length from three to 12 months. If an employee averages 30 hours a week or 130 hours a month during that period, the employer must offer coverage equal to either six months or the length of the look-back period, whichever is longer. This calculation will be of special difﬁculty for those employers who have not been keeping careful track of their employees. “Employers who have a lot of variable hour employees, and have not been keeping close watch, need to do the exercise now to see who falls into the full time bucket and what measurement period will be best for them,” says Smyth.

2 As you tackle the vagaries of the ACA, keep in mind that the entire law is very much a work in progress.

Analyze labor costs Employers with more than 50 full time equivalent workers should analyze the income of their workforces, particularly if they include a large number of relatively low wage employees. That’s important because such employers may be penalized not only for failing to provide any health insurance coverage, but also for providing coverage that fails to meet the standards of affordability as deﬁned by the law and as determined by employees’ family incomes (W-2 wages can be used as a proxy for family income).

Attention Spring Manufacturers Retooling Benefits What steps should you take to get up to speed with the requirements of the ACA? “Employers need to take a look at their current health insurance plans and make the changes required to be in compliance,” says Stich, “then communicate these changes to employees and revise the plan descriptions and handbooks.” How to? Here are some speciﬁc steps:

Determine full time equivalencies Employers large and small need to take a magnifying glass to their labor forces. “The big issue for many employers will be calculating t he average hourly workweek in determining who is an equivalent full time worker,” says Ahlrichs. “It goes beyond the simple drawing of a line in the sand at 30 hours. The new system uses new terms and new ways of calculating things that, if ignored, can cost an employer signiﬁcantly.” Smaller employers need to be especially careful about determining whether the number of full time equivalent workers puts the organization over the 50 worker boundary where the ACA mandates take effect. “The employers most at risk are those which hire many part time or seasonal workers,” says Ahlrichs.

36 / SPRINGS / Spring 2013

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With these figures in hand, companies can perform the calculations to see the financial impact of three options: not offering any coverage, offering coverage which is not “affordable” under the definitions of the government, or offering coverage that is affordable (that is, charges employees premiums that are 9.5 percent, or less, of family income.) In some cases it may be cheaper to not offer insurance than to offer insurance and pay a penalty.

Update benefits plan language Employers with more than 50 full time equivalent workers must update their benefits plan language to be in compliance with the ACA. “Many plans must undergo a significant rewrite to reflect the new world,” says Ahlrichs. Ahlrichs cautions that Department of Labor (DOL) audits are rising in frequency, and that they will be looking hard at this area. “One of the ways they will help fund the ACA is by penalizing organizations which are in violation,” said Ahlrichs. “Expect 80 percent of DOL questions to revolve around how the ACA language is not in company documents, and expect fines to be assessed.”

Get the communications right No matter what the size of the organization, employees will have questions about their health insurance. “Employee communications will be huge,” said Ahlrichs. “Employees will turn to their employers for answers. You can beneﬁt signiﬁcantly by having early and aggressive communication about what the changes mean.”

Dealing with Uncertainty For employers large and small, perhaps the most important step is getting up to speed on the opportunities and requirements of the new law. “Now is the time to get some education,” says Nowicki. “Meet with your broker or health insurance advisor and learn what is coming down the pike from the perspectives of benefits and taxes.” As you tackle the vagaries of the ACA, keep in mind that the entire law is very much a work in progress. Federal agencies will continue to issue regulations that interpret the law for real world operations. State governments will jockey to set up exchanges of various kinds, or opt to let the federal government do the job. Finally, organizations competing for your employees may or may not set up attractive health insurance programs. Whatever the size of your organization, it is prudent to plan for the future implications of the law. “Draw up a five year strategic benefits plan that is aligned with the one for your whole organization,” said Ahlrichs. “This is not the time to patch last year’s model. This is the time for a clean sheet of paper and a plan written with someone who understands the implications of the law.”

Those organizations with the right plans will prosper. “If your company has a strategic benefits plan and your competition does not, it will help you and hurt them,” said Ahlrichs, “maybe not in the first three months, but certainly in the first couple of years. Over time if you get ahead of these issues and make the right decisions you will have a significant competitive advantage.” Q

SPRINGS / Spring 2013 / 37

SPRINGMAKERS CHART THE NEW POLITICAL LANDSCAPE

America’s Growing Minerals Deficit The U.S. is now tied for last, with Papua New Guinea, in the time it takes to get a permit for a new mine. By Daniel McGroarty

fter every election, there’s a mad scramble in Washington over the must-make-it-happen agenda for the newly inaugurated president and Congress. There are welcome signs from the White House’s own Material Genome Initiative that securing America’s access to critical metals and minerals will be high on the list. A good thing, too. Jobs and capital increasingly flow to countries that command the resources to power modern manufacturing, and American manufacturing is more dependent on metals and minerals access than ever before. Yet there is no country on the planet where it takes longer to get a permit for domestic mining. Among other consequences of this red tape, there are now 19 strategic metals and minerals for which the U.S. is currently 100 percent import-dependent, and for 11 of them a single country, China, is among the top three providers. Even so, the president’s interest in the subject is a double-edged sword: Will U.S. policies be guided by sound science? Or will they be unduly influenced by environmental politics, despite the fact that many minerals we need are essential components for the production of green energy? The White House Office of Science and Technology Policy underlined the importance of this access in a Jan. 14 statement. “A century ago, plentiful elements like iron, lead, and copper fueled our Nation’s transition to an industrial economy. But today, many of the materials that characterize the industrial cutting-edge, such as rare earths, indium, and lithium, are not as naturally abundant or easy to access as their predecessors.” The implication that we’ve entered a brave new world where arcane “technology metals” replace their industrial precursors is a bit misleading, though. The situation is actually more acute. The country’s metals dependency is even more pronounced than the White House indicates, and some of those metals and minerals, important in many processes, are not just “cutting-edge” ones like rare earths and indium. General Electric, for instance, is now using 72 of the first 82 elements on the periodic table in its product-manufacturing mix—not just iron, lead and copper, either. GE also needs zinc, aluminum, tin and nickel, elements that the American Resources Policy Network argues are best understood

©iStockphoto.com/blackred; next page: ©iStockphoto.com/li jingwang

38 / SPRINGS / Spring 2013

as “gateway metals,” resources whose byproducts include scores of critical metals recovered during mining. Consider copper, which serves as a gateway to 21 elements on the periodic table, collectively supporting transportation, manufacturing, modern medicine and the major alternative-energy sources to power the clean technology of the future. Copper can also be processed to produce selenium and tellurium (used in solar power), molybdenum (used in steel super-alloys), and rhenium (used in jet engines, lead-free gasoline and treatments for liver and bone cancers). Finally, copper is sometimes found with rare-earth elements which are used in alternativeenergy production, for wind turbines, electric-vehicle batteries and compact-fluorescent light bulbs. The country’s advanced weapons systems are equally– and increasingly– metals-intensive. Measured in metric tons, copper is the second-most-used metal in defense applications. In April 2009, the Department of Defense reported that a shortage of copper had caused a “significant weapon system production delay for DOD.” The White House’s Material Genome Initiative says its goal is to “support U.S. institutions in the effort to discover, manufacture, and deploy advanced materials twice as fast, at a fraction of the cost.” The need for speed is accurate, but it’s going to prove difficult for American innovators to be twice as fast when America’s mine permitting process is easily twice as slow as in other mining nations. The U.S. has domestic resources for 18 of those 19 metals and minerals we now exclusively import from abroad. But a maze of government regulations has made mining them here too difficult. That’s the consistent finding of the annual Behre Dolbear Country Rankings for Mining Investment, known in the mining world as the “Where-Not-to-Mine Report.” The U.S. is currently tied for last place (with Papua New Guinea) in the time it takes to permit a new mine – seven to 10 years on average. In a world where the technology industry regards a year as an eternity, waiting a decade for new supplies of critical technology metals will severely hamper America’s ability to innovate.

Without significant reform of the country’s miningpermit process, the U.S. may be starved of the resources to build everything from smartphones to weapons systems, impairing both the economy and national security. Reform could begin with streamlining the permitting process to get rid of redundancies at the local, state and federal levels, so the process can run concurrently. Among other benefits, this would mean that environmental challenges and litigation—bitter ironies given the fact that the mined metals and minerals are needed for many forms of green energy—do not set the permit process back repeatedly. All that will depend on whether the White House initiative is the first step toward a strategic-resource policy that asserts the importance of domestic metals and minerals exploration. Or will the initiative bring only a federally funded study group writing what might prove to be the definitive white paper on the industrial decline of the U.S.? Q Daniel McGroarty is president of American Resources Policy Network, a nonpartisan education and public-policy research organization based in Washington, D.C. The article was originally published in the Wall Street Journal on January 30, 2013.

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SPRINGMAKERS CHART THE NEW POLITICAL LANDSCAPE

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The power to influence government is yours, if you’re willing to make the effort

By Joel Blackwell (Editor’s note: This article originally appeared in the October 2001 issue of Springs. Joel Blackwell is still working in government affairs. His current contact information is listed at the end of the article.)

ith the turmoil of the 2000 presidential election well behind us, many people are left wondering if they have any power in political matters. From coast to coast the questions still linger: “Does my vote really matter?” “Can I influence our politicians?” “Do I have any say about the issues?” No matter what your party affiliation or your political know-how, the answer to all the above questions is a resounding “yes.” Regardless of your business, if you want to influence Congress, a state legislature, a city council member, a county commissioner or anyone else in political office, you, the constituent, have the most power of all. In fact, you can have a major impact on government in your state, city or county. By taking a collective action, you and your fellow business associates can even move the United States Congress. In particular, you can change those irritating laws and regulations that plague you in your business life, rob you of hard-earned money, make it difficult to do business or potentially cause you to go out of business.

Government and Business: A Growing Concern The issue of politics and business is more important today than ever before because the biggest anchor dragging down businesses today is this: Government is your unwanted, incompetent business partner. Now, this does not mean that government is trying to step in and take over your business practices: however, everyone in business feels political presence every day in some way. If you’re not actually trying to solve some regulatory challenge, fill out some form or negotiate with some bureaucrat, then you, at the very least, feel the government breathing down your neck, waiting to take more of your money, making your business life more difficult, or telling you where and when you can do business. Unfortunately, the government is a partner you cannot fire. Your only option is to learn how to manage it. You do that by making political action a part of your business

SPRINGS / Spring 2013 / 41

plan and your job description. You may even want to make it part of the job description of everyone in your company.

Exercise Your Power Former speaker of the U.S. House of Representatives Tip O’Neil once said, “All politics is local.” The idea of politics being personal springs from the fact that all successful politicians are people-oriented. What they enjoy most is what Lyndon Johnson used to call “pressing the flesh,” that is, getting up close and personal, dealing with real people and solving real problems. Thus, if you or anyone else in your business wants to influence those in office, you need to take action today. Top 10 Ways Politicians are Influenced 1. Face-to-face conversation with constituent. 2. Letter from constituent. 3. Phone calls from constituents. 4. National daily newspaper article. 5. National daily newspaper editorial. 6. District daily newspaper article. 7. District daily newspaper editorial. 8. Orchestrated mail from constituents. 9. Op-ed opinion pieces in major daily newspapers. 10. Op-ed opinion pieces in local daily newspapers.

Where did this list come from? Research done by many corporations, public affairs firms and associations, such as the Edison Electric Institute (the power companies), surveyed members of Congress and their staff to find out how they make decisions. Interestingly, one survey found that it takes 25 letters to influence a (federal) elected official who is neutral and 80 for one who is negative. One lobbyist in Colorado reveals that a state senator had said, “Two letters doth a mandate make.” A lobbyist in Missouri explained it this way: “We had 2,000 bills up last year. I bet I didn’t hear from constituents on more than 12.” These statements reveal just how much power you have in political affairs. If you’re like most people, three facts about the above list stand out to you: 1. Constituents have a lot of power. 2. Newspapers have a lot of power. 3. Money isn’t on the list. Nevertheless, money does have some influence in politics, though no one likes to admit it. If you’re serious about making a difference in government, you need to put your money where your interest is. Special-interest organizations, such as the National Association of Manufacturers (NAM), have four components that add up to political clout:

Stainless Steels, Nickel Bases, Copper Bases, Carbon Steels, and Aluminum

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2QH VXUYH\ IRXQG WKDW LW WDNHV OHWWHUV WR LQIOXHQFH D IHGHUDO HOHFWHG RIILFLDO ZKR LV QHXWUDO DQG IRU RQH ZKR LV QHJDWLYH 1. Members. 2. Money. 3. Media. 4. Staff (paid professionals who work in public affairs, public relations, legal issues and lobbying). Serious, smart businesspeople who get what they want use professional staff, money, media and the power of constituents. By doing so, you too can get good laws passed, stop bad laws from being passed and change current laws. Currently, the most powerful special-interest groups in America are the real estate, banking, credit union, nursing home, insurance, hospital, doctor, lawyer, actuary, college, farm, oil, theme park, National RiďŹ&#x201A;e Association, American Association of Retired Persons and union groups. All the people who have clout â&#x20AC;&#x201D; who get what they want from the government much of the time â&#x20AC;&#x201D; are simply playing the game of politics by a set of rules. You can do the same thing. You already have the tools you need. The fundamentals are spelled out in the Constitution, speciďŹ cally in the ďŹ rst amendment, which states: â&#x20AC;&#x153;C on g r e ss s h a l l m a k e no l aw r e spe c t i n g a n establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.â&#x20AC;? Four of the ďŹ ve freedoms listed are yours to use to get what you want. The ďŹ fth, religion, may even come into play. After all, many business owners have been known to pray for an outcome.

Joel Blackwell, â&#x20AC;&#x153;The Grass Roots Guy,â&#x20AC;? is the author of the grass roots manual â&#x20AC;&#x153;Personal Political Power â&#x20AC;&#x201C; How Ordinary People Get What They Want from Government.â&#x20AC;? Contact him at 202-277-5209 or visit www. joelblackwell.com.

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Make Your Elected Officials Take Notice Smart lobbyists and special-interest groups know that what they do after the election determines their success at getting what they want from the political system. Thatâ&#x20AC;&#x2122;s because individuals and groups have very limited power to inďŹ&#x201A;uence any one election, and almost none to inďŹ&#x201A;uence the makeup of a whole legislature. More importantly, your issues arenâ&#x20AC;&#x2122;t likely to be part of an election campaign anyway. In fact, candidates and elected ofďŹ cials may never even know about your speciďŹ c issues. But donâ&#x20AC;&#x2122;t be discouraged. That doesnâ&#x20AC;&#x2122;t mean they canâ&#x20AC;&#x2122;t or wonâ&#x20AC;&#x2122;t help you. It doesnâ&#x20AC;&#x2122;t mean our system of democracy is failing. In fact, if anything, this is the root of our salvation and the reason so many people retain a deep and abiding faith in our democracy. How so? Because

there is one thing politicians do care about: getting elected and reelected. And that is what gives you so much power. Although your elected ofďŹ cials may not know or care about your speciďŹ c issues, you can make them care about you, especially when you live or work in their district and are, therefore, a constituent. In fact, one of the most powerful moments in politics is when a voter talks with the person for whom he or she can vote. This holds true before, during and after the campaign. Those who are campaigning will give their full attention to a voter. The philosophy is: â&#x20AC;&#x153;If you can vote for me, you will have my undivided attention. You can do something most lobbyists and special interest groups canâ&#x20AC;&#x2122;t do - you can vote for me.â&#x20AC;? So no matter what your speciďŹ c business issue or who is currently elected into your state or local government, if you want to create a change, pick up the phone or write a letter, and make your voice heard. As hard as it is to believe, you - a single voice - really can make a difference in the course of your state and federal governments and how they impact your business. No matter what your industry, making a difference is not some dreamy, idealistic goal from a high school civics class. People in every industry do it all over the country, and you can too. The key is to make the politicians aware of you and what you can do to get and keep them in ofďŹ ce. Q

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On-Line Furnaces and 17-7 Stainless Steel By Daniel Pierre III

an 17-7 stainless steel be heat treated in a conveyor furnace? To adequately answer this you must understand the composite of 17-7 material. Normally the springmaker is using 17-7 Condition C as drawn material. After fabricating, the parts are heated at 900°F for one hour. This heating process is not a stress relief, but rather a hardening operation to achieve Condition CH. During the 900°F / one hour cycle, the parts are precipitation hardened in which the yield strength of the material is increased approximately 25 percent. A typical yield / time curve is shown in Curve #1. You will notice that 60 percent of the transformation takes place during the ﬁrst 15 minutes in a furnace at 900°F. Full transformation takes one hour and over-aging will cause some loss of maximum yield strength. If parts are heated in a conveyor furnace for one hour at 900°F, a temperature curve would be seen as shown in Curve #2. Note: the parts are not getting up to temperature until halfway through the cycle and are losing temperature as the parts near the exit, due to the open end furnace construction. As a result, full transformation (hardening) has not occurred. Some operators are tempted to offset the above condition caused in Curve #2 by setting a higher furnace temperature and running on a faster cycle. For example, 1000°F for 15 minutes. Curve #3 shows the result. The parts temperature curve shifts to the right and gives what is called a lower curve. Parts never get up to 900°F and again full hardening does not occur. Another temptation is to run at a higher temperature (1000°F) for one hour. Curve #4 shows this condition. The parts get up to 900°F much quicker than Curve #2, and while you can maintain a high part temperature for a longer time, there is a concern for over-aging with the parts above 900F. Not every furnace is up to the task of operating at 900°F for long cycles! (Nearly every conveyor oven found in most spring manufacturing plants is designed for a maximum temperature of 900°F anyway). A secondary effect of the slower one hour cycle is that in a furnace with a reasonably tight mesh belt and with heating elements only above the belt; the belt is basically stationary and is being cooked from one side, which will cause tremendous belt distortion.

Conclusions Using a typical conveyor oven or furnace for 17-7 material and hoping to get full transformation or hardening cannot be done for the reasons shown. Without full transformation and obtaining only a partial increase in yield strength defeats the purpose in using the 17-7 material in the ﬁrst place. However, if you need to use an on-line furnace to heat 17-7 material—for example, if you have a tremendous volume you need to constantly process—

44 / SPRINGS / Spring 2013

©iStockphoto.com/PLAINVIEW

Curve C ve 1 there are furnace design considerations that will help you maximize the amount of hardening (notice that we are not saying “guaranteed full hardening”). These considerations are: • High fan speed. Running fans at high RPM will maximize the amount of air flow and get parts up to temperature faster. Look for furnaces that have indirect driven fans. This design not only prevents the high heat from traveling up the fan shaft into heat faster. The following zones are used to maintain the desired temperature. • Incoloy Sheath heating elements. The majority of the imported furnaces use Stainless Sheath heating elements. While stainless is rated at 1000°F, a furnace that has a set temperature of 900°F actually has a sheath temperature approximately 300°F degrees higher, which will result in faster failure of the elements. Incoloy material has a rating of 1600°F and is the only type of sheath that should be used in high temperature applications. • 316 stainless belt. Belts used in on-line furnaces are usually woven from 304 stainless, which is an excellent material for general stress relieving. For a furnace that will see a large amount of high temperature work, the furnace manufacturer should be able to offer 316 stainless as an option to minimize belt distortion. • Furnace curtains. On-Line furnaces usually come with ceramic cloth curtains. These work fine but tend to fray and wear out fast. A furnace running without completely usable curtains will cause loss of heat, higher energy cost and longer cycle time for parts to get to the desired temperature. Lightly woven stainless steel curtains are an option that eliminates the fraying and wear. The “no-curtain” option seen on a lot of ovens will let so much heat out at high temperatures that the energy costs to run the furnace could outweigh any profit. • Stainless heat chamber. Some furnaces use fire brick to line the chamber. This is an excellent insulator in preventing heat from migrating to the outside furnace shell. However, fire brick is porous and will absorb a good portion of the air current from the fan and reduce the available cfm rating. Using a stainless chamber, backed with insulation, provides some reflective energy as well as a hard surface that will not absorb any cfm from the fan and maximizes air flow onto the parts. Note: Look for a furnace that has a stainless chamber that is isolated and not connected to any furnace member that can transfer heat to the outer shell.

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15 5

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SPRINGS / Spring 2013 / 45

• Fan Blade Pitch. Furnace fans have two purposes, to provide air ﬂow over the elements to prevent element burn out and to drive heat down into the parts. Many furnaces use fans with no pitch which only helps with element life and does nothing in helping get parts up to temperature fast. Ask the furnace manufacturer to show you their blade design.

Curve 5 C @900˚F 60 min min n@ 900˚ 00 00˚ 0F 900˚F 900˚ 900 0 F 45 5m in n@ 900˚ 9 900 00 F 00 min @900˚F

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Please look at Curve #5. While this is not a curve showing 17-7 being heated, it does show the effect of many of the design considerations discussed above. This oven was built using many of the attributes discussed above. It demonstrates that parts could be held at 900°F for an extremely long time without undue wear and tear on the furnace. It also shows that a furnace designed to the above points can also operate more efﬁciently and at up to 35 percent less input wattage compared to a standard in-line stress relief oven attempting to hold parts at 900°F. Q

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Raquel Chole Receives Women in Manufacturing STEP Award

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Women in Manufacturing STEP (Science, Technology, Engineer ing and Production) Award was recently presented to Raquel “Kell” Chole, sales and marketing manager and automotive program manager at Dudek & Bock. Chole joined 121 other female honorees, representing all levels of manufacturing from the factory ﬂoor to the C Suite, who were recognized for excellence and leadership in manufacturing at a reception in Washington, D.C. on February 5. The STEP Awards program highlighted each honoree’s story, including their leadership and accomplishments in manufacturing. The awards were presented by The Manufacturing Institute, Deloitte, University of Phoenix, and the Society of Manufacturing Engineers. “Through her leadership as the central point of contact with our largest automotive Tier 1 customer, Raquel’s efforts, successes and contributions with this global market leader have largely served to elevate the cross-functional standards that our company operates under on a holistic basis,” said Matthew Puz, vice president, sales and marketing, Dudek & Bock. “In the process of doing this she has indisputably made us a better company.” In her work at Chicago-based Dudek & Bock, Chole also serves as employee development mentor and trainer at multiple company plant locations. In addition, she supports the development of minority businesses into sustainable enterprises as a corporate member of Project ONE (Operation Network Enhancement) in partnership with Johnson Controls, Inc. (JCI) and Toyota Corporation. “We are thrilled that Raquel’s contributions to Dudek & Bock were recognized by this important new initia-

tive,” said Rhiannon Weaver, marketing assistant at Dudek & Bock. “Manufacturers are on the inside track for every exciting development in vehicles, appliances and any other tangible product,” said Chole. “We turn inventors’ visions into reality. Every product that is cutting edge begins with us. Fast paced and demanding, it is the most fulﬁlling career imaginable.” Chole was the driving force behind adoption and implementation of effective automotive program management. She acted as catalyst for the company’s pursuit of product line extensions by identifying market opportunities with attractive potential and focusing the business lines on seizing those opportunities. In her major account management role, Chole spearheaded efforts resulting in the company receiving multiple major awards with a Fortune 500 automotive customer, including multiple JCI Gold and Silver Supplier Performance Awards and the JCI Minority Supplier Development Leadership Award. “These 122 women are the faces of exciting careers in manufacturing,” said Jennifer McNelly, president, The Manufacturing Institute. “We chose to honor these women because they each made signiﬁcant achievements in manufacturing through positive impact on their company and the industry as a whole.” The STEP Awards are part of the larger STEP Ahead initiative launched by The Manufacturing Institute, Deloitte, University of Phoenix, and the Society of Manufacturing Engineers, to examine and promote the role of women in the manufacturing industry through recognition, research, and best practices for attracting, advancing, and retaining strong female talent. “The STEP Ahead initiative was founded to change perceptions of the

manufacturing industry and create new opportunities for women in the sector,” said Latondra Newton, group vice president at Toyota Motor North America, Inc. and chairwoman of the STEP Ahead initiative. “This initiative is the call for action to transform the face of today’s manufacturing talent and ensure that women can contribute to the future of this industry.” A 2011 survey from Deloitte and The Manufacturing Institute found that nearly 70 percent of American manufacturing companies have a moderate to severe shortage of available, qualiﬁed workers. Manufacturing companies cannot ﬁll as many as 600,000 skilled positions, even as unemployment numbers hover at historically high levels. Additionally, labor statistics show that women are underrepresented in the manufacturing workforce and in manufacturing leadership ranks — a situation that must be reversed to preserve and grow the industry. For the full list of recipients, see www.themanufacturinginstitute.org/ Initiatives/Women-in-Manufacturing/ STEP-Award-Honorees/STEP-AwardHonorees.aspx Q

SPRINGS / Spring 2013 / 47

JSSE Presents Lectures and Awards

he Japan Society of Spring Engineers (JSSE) held its semiannual lecture meeting at the Kyoto Tower Hotel in Kyoto on November 2, 2012. Following an opening speech by Satoshi Suzuki, a vice-chairperson of JSSE, and a director of Chuo Spring Co., Ltd., six lectures and one special lecture were presented to 136 attendees in a banquet hall of the hotel. The lectures included: “Research on Kinetic Model of Golf Swing” (1st Report: Simulating with 2 link multi-body), by Yuka Ohyashiki of NHK Spring Co., Ltd.; “Effect of Tempering Temperature on Hydrogen Trap Behavior of High Silicon Martensite Steel,” by Shinya Tera moto of Nippon Steel and Sumitomo Metal Corporation; “Delayed Fracture of Springs” by the research com m it tee; “Ef fect of Su r face Ca rbon Content and Shotpeening on Low-cycle Fatigue Strength of Carburized Steel,” by Yuji Kobayashi of Sintokogio, Ltd.; “Effect of Overload on Fatigue Limit of Spring Steel with Defect,” by Dr. Keiji Houjou of Oyama National College of Technology; and “Fatigue Limit Diagram of Compression Coil Springs” by the research committee.

Special Lecture and Poster Session A special lecture was presented on “Standardization Activity of Japan Spring M a nu f a c t u r e r s A s s o c i a t io n ( JS M A): Present Status and Future Development of Establishing Standards” by Shigeo Aiba, chairman of the Standardization Meeting of

48 / SPRINGS / Spring 2013

A congratulatory speech was presented by Yasuaki Takeuchi, representative of JSMA and president of CHK Spring Co. Ltd.

JSMA; Tadayoshi Akutsu, chairman of the Standardization Committee of JSMA; and Isao Kato, manager of the International Standardization Division. Four technical posters were displayed in a meeting room next to the banquet hall. A brief explanation was made by a representative for each of the posters on the speaker’s platform in the hall, followed by question and answer sessions at the posters. The top two posters were selected based on the participants’ vote. The researchers of the two posters were given certiﬁcates along with bookstore gift cards. The ﬁrst place poster award was presented to Taku Miura of Ritsumeikan University for “Research on Ultrahigh-cycle Fatigue Property of SWOSC-V High Cleanliness Steel for Valve Springs.” The second place poster awa rd for “Ef fect of Graphitization Treatment on Tensile Deformation of Carbon Nano Coil Springs” was presented to Ryuji Kunimoto of Toyohashi University of Technology.

A Ceremony of JSSE Awards JSSE presented awards in three different categories. • Ronbun-prize: “Effect of Phosphorus, Boron, Molybdenum and Silicon on Torsional Fatigue Strength of Induction Hardened Middle Carbon Steels,” by Tatsuro Ochi, Toshiharu Aiso, Shinya Teramoto and Manabu Kubota of Nippon Steel and Sumitomo Metal.

SPRINGS / Spring 2013 / 49

2012 JSSE Award Winners

Dr. Motoaki Osawa

• Gijutu-prizes: “Inﬂuences of Mechanical Properties and Retained Austenite Content on Shot-peening Characteristics,” by Yuji Kobayashi and Toshiya Tsuji of Sintokogio Ltd., and Ryohei Ishikura and Keisuke Inoue of Daido Steel and “Threshold Stress Intensity Factor of Crack Propagation of Delayed Fracture for Spring Steel and Design Method for Preventing Delayed Fracture,” by Yurika Goto and Akira Tange of NHK Spring, Co., Ltd. and Eiji Tshujimatsu of Sumihatsu Co., Ltd. • Koseki-prizes: Tadayoshi Akutsu (NHK Spring Co., Ltd.); Toshio Izumi (Togo Seaisakusho Corporation); Hiroyuki Ohishi (Mitsubishisteel Co., Ltd.); and Hiroaki Saitoh (NHK Spring Co., Ltd.). Mr. Miyamura

50 / SPRINGS / Spring 2013

Reception A reception was held following the poster award ceremony. Dr. Motoaki Osawa of Tokyo Denki University, a vice-chairperson of JSSE, made the opening speech. As a representative of JSMA, a congratulatory speech was presented by Yasuaki Takeuchi, president of CHK Spring Co. Ltd. Following the congratulatory speech, Mr. Miyamura, a JSSE adviser, made a toast to the development of the spring industry and the participants’ health. Q

The opening speech was given by Satoshi Suzuki, a vice-chairperson of JSSE, and a director of Chuo Spring Co., Ltd.

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A Review of Premature Spring Failures Related to Heat Treatment

By Sharbari Banerjee, Exova

A review of spring failures analyzed by Exova has revealed that a majority of failures resulted from surface imperfections such as laps, seams and other mechanical defects. However, a fair number of the failures ensued from heat treatment missteps. This article discusses techniques to recognize these failures and ways to avoid them.

SPRINGS / Spring 2013 / 53

Quench Cracks

Figure 1. Blue tint at the fracture initiation point.

Figure 2. The typical “rock candy” appearance of intergranular fracture in the SEM.

Figure 3. Optical micrograph of a spring cross section where an intergranular crack has started at the surface and penetrated into the body.

Figure 4. SEM image of a fracture surface consisting of a mixture of cleavage and ductile fracture modes.

Quench Cracks By far, the most frequent heat treatment-related failure was a consequence of one or more cracks that developed after the spring was austenitized and quenched but before it was tempered. A signature macro feature of this defect is a bluish tint on the fracture surface. The tint consists of a thin oxide layer on the fracture surface and occurs because a crack existed when the spring temperature was raised during tempering. The surface exposed by the crack oxidizes at the high tempering temperature. On a microscopic level, quench cracks are characterized by intergranular fracture during initiation. This mode can be identiﬁed by examining the fracture surface in a scanning electron microscope (SEM), as well as by doing

54 / SPRINGS / Spring 2013

a microstructural analysis near the fracture surface. Such an analysis will typically show intergranular cracks beginning on the spring surface and penetrating through grain boundaries into the body of the spring. If the intergranular mode persists throughout the cross section of the spring, it is a sign that the steel has been embrittled, most likely during heat treatment. Otherwise, during propagation, the fracture mode may change to fatigue or ductile fracture. A number of factors can be responsible for quench cracks. The most common is a delay in tempering the spring once it has been austenitized and quenched. Quenching steel from a high temperature induces internal stresses due to the transformation of austenite to martensite. Since

Overheated Steel

Figure 5. Optical micrograph showing decarburization at grain boundaries near the surface.

Figure 6. Optical micrograph showing general decarburization near the surface and a crack propagating through grain boundaries.

Figure 7. Optical micrograph showing grain growth at the surface.

Figure 8. Optical micrograph of a uniformly ďŹ ne grained microstructure.

this is a diffusionless, shear type transformation, there is no opportunity for volume changes to be accommodated and the structure is in a high energy state. Tempering immediately after quenching allows the microstructure to return to an equilibrium state and allows the stresses to relax. When tempering is delayed, the internal stresses are released by the formation of surface cracks. Quench cracks can also form under overly aggressive conditions, such as quenching from an excessively high temperature, using oil that is at a very low temperature or using oil that contains too much moisture. Quench cracks can be minimized by tempering springs immediately after they are quenched and making certain not to use an overly fast quenching medium.

Overheated Steel Many spring failures investigated resulted from conditions produced by steel that had been overheated, eit her during hot rolling or during austenitizing. Overheated steel can cause failures by itself or facilitate failures that originate from another source, such as surface laps or seams. Although there are no macro features that signify overheated steel, several microscopic ones may co-exist. Primary among them are decarburization at the spring surface, decarburization only at the surface grain boundaries and/or oxidation at the surface grain boundaries.

SPRINGS / Spring 2013 / 55

These features are detected in a microstructural analysis of the Certain steels are more susceptible to hydrogen spring and may be accompanied by cracks that follow the grain embrittlement than others; typically, high-strength b ou nd a r y de c a r bu r i z at ion or low-alloy steels with high hardness and tensile ox id at ion. I f g r a i n g row t h is strength and with quenched and tempered observed in conjunction with the decarburization and oxidation, microstructures – martensite and bainite. this is a sign that the spring was exposed to a high temperature for a prolonged time. Conversely, a ﬁne grain structure hardness and tensile strength and with quenched and under these circumstances may imply an overly oxidizing tempered microstructures – martensite and bainite. HE can only occur when the steel has been subjected to atmosphere rather than a high temperature. Overheated steel can be avoided by having well-controlled time and a process where nascent hydrogen atoms are released as a temperature parameters during all stages of heat treatment. by-product. Examples of such processes are phosphating, pickling and electroplating where electrochemical reactions produce hydrogen in the atomic form. The Hydrogen Embrittlement Although not frequent, failures due to hydrogen atoms subsequently diffuse interstitially through the steel embrittlement (HE) are occasionally encountered. This grain boundaries where they combine to form hydrogen failure mechanism is not because it was caused by a heat molecules. The pressure created by the accumulated treatment step, but instead it has resulted from a heat hydrogen gas ultimately causes the steel to fail along treatment omission. This type of failure is brittle in nature its grain boundaries. For this reason, the fracture and usually occurs within hours to a day after installation surface of hydrogen embrittled steel is characteristically of a spring. Certain steels are more susceptible to HE than intergranular in nature. There are three conditions that must be present for others; typically, high-strength low-alloy steels with high steel to fail by HE: • The steel must be one that is susceptible. Hardened high-strength low-alloy steels are prime examples. • The spring must be under a tensile stress. A compression spring can fail from spring setting operation if there are local tensile stresses present. • There must have been a source of nascent hydrogen in the processing of the steel. An absence of even one of these conditions rules out the possibility of HE. HE can be easily eliminated by baking the spring immediately after phosphating or electroplating at a temperature of 400+/-25˚F. The baking time depends on the thickness of the spring; a useful rule of thumb is to bake for a minimum of four hours for up to an inch thickness and add an hour per additional inch of thickness. There is a short window of time following the electroplating process within which the spring must be baked. The available literature cites a range of one to four hours for the window. Rough surfaces are particularly susceptible to HE and shot peening has been shown to be effective in reducing the effect.

Temper Embrittlement and Tempered Martensite Embrittlement Temper embrittlement (TE) and temper martensite embrittlement (TME) are encountered relatively rarely as failure mechanisms in springs. Nevertheless, they are worth discussing here since they are related to heat treatment issues.

56 / SPRINGS / Spring 2013

TE is characterized by intergranular fracture through the cross section of the spring and by initiation of multiple cracks in the vicinity of the main fracture surface. TE is caused by exposing the spring to a temperature range of 700 â&#x20AC;&#x201C; 1070Ë&#x161;F for a prolonged time, such as by cooling slowly through this range. Doing so allows tramp elements like phosphorus, arsenic, antimony and tin to segregate in the grain boundaries, thus embrittling the steel. TE can be avoided by using high purity steel and quenching quickly through the susceptible temperature range. TE can be reversed by reheating the steel to above 1070Ë&#x161;F, followed by quenching. TME is another embrittlement mechanism that can occur during tempering but is associated with a lower temperature range â&#x20AC;&#x201C; 400 to 700Ë&#x161;F. Only steel with martensite and lower bainite structures are susceptible, and the mechanism is believed to be the precipitation of carbide platelets in the prior austenite grain boundaries. TME can be avoided by tempering at a temperature outside the range of susceptibility.

â&#x20AC;˘ When austenitizing steel springs, use the lowest possible temperature for the shortest possible time that will ensure complete austenitization. High temperatures and prolonged times can cause surface decarburization and oxidation as well as grain growth. â&#x20AC;˘ Quench rapidly using oil that is clean and free of moisture and at room temperature. Prevent the parts from lingering in the temperature range in which some steels are susceptible to temper embrittlement. â&#x20AC;˘ Temper as soon as possible after quenching, ideally before the springs have cooled to room temperature. Avoid tempering in the temperature range of 400 â&#x20AC;&#x201C; 7000Ë&#x161;F for those steels that are susceptible to temper martensite embrittlement. â&#x20AC;˘ If the springs are phosphated or electroplated, bake at 400+/-25Ë&#x161;F immediately after the plating process to avoid hydrogen embrittlement. Q

Conclusions To summarize, there are a number of steps in the processing of steel springs where a lack of control can result in premature failures. Fortunately, these failures are easily avoided if the following procedures are maintained:

Sharbari Banerjee, Ph.D., is a senior metallurgical engineer at Exova, Inc. in Glendale Heights, Ill. Her work involves failure investigations and production testing for a variety of industries. She can be reached at 630-221-0385 or email: Sharbari.banerjee@exova.com.

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Determined to Succeed A Proﬁle of Ace Wire Spring and Form Co. By Gary McCoy

teely. Gritty. Determined. Those are some of the adjectives people have come to describe Pittsburgh, a city in southwest Pennsylvania where the Allegheny and Monongahela rivers form the Ohio River. Not far from the heart of Pittsburgh is McKees Rocks, also known as “The Rocks,” a borough along the south bank of the Ohio River and the hometown of Ace Wire Spring & Form Co. Like the area where the company is headquartered, Ace Wire Spring has been determined to succeed since it started in 1939.

SPRINGS / Spring 2013 / 59

Ace Wire was started by Linda Froehlich’s father, Joseph Vodvarka, and was taken over by Linda and her husband, Richard Froehlich, in 1976. “My father was an opera singer,” explained Froehlich. “He was a very good tenor who had studied under the same teacher as Caruso.” When he met Froehlich’s mother, Vodvarka decided that a career as an opera singer may not be something that could support a family should he ever lose his voice. So he went to work for a spring company in nearby Coraopolis, Pa. and realized that springs might be a future worth pursuing. Froehlich said he reasoned that “springs would always be involved in people’s lives.” Not a technically oriented person, Vodvarka partnered with his father, a machinist, to start Ace Wire Spring. As Froehlich relates, “The two, working together, made a great team, with Dad running the business side.” In an article on the company for the Pittsburgh Technology Council, Froehlich said Ace Wire was “built on the creativity of her ambitious father with a foundation for growth, innovation and attention to customer needs.” Froehlich says family members have always been involved in Ace Wire. In fact Froehlich’s grandmother made garter springs in the attic of their house. As the business grew, Vodvarka built a little building near the family home to make springs, and the living room turned into his ofﬁce. Vodvarka eventually took the business out of the family homestead, constructing a 20,000 sq. ft. facility. Froehlich said her dad added on to that facility after just two years. After Linda and Rich bought the business, they built the company’s current 55,000 sq. ft. facility, which is home to the company’s workforce of 47 employees.

Small to Medium Specialists Ace Wire Spring specializes in medium-to-small volume business. They do a lot of prototype work and provide design assistance to their customers. They manufacture compression, extension, and torsion springs and wire forms for a large variety of applications. Ace Wire Spring is ISO 9001:2008 certified/ ITAR registered. Ace Wire Spring was recently recognized by Catalyst Connection as one of 25 top manufacturing companies. The organization, a Pittsburgh-based economic development and manufacturing consultancy, advances the performance of small manufacturing companies. “Because we are family owned, and small, the experience is more personalized for customers,” explained Froehlich. Most employees at Ace Wire Spring have been with the company for a long time, including one man who has logged over 60 years of service and a woman who has worked in the office for 38 years. Froehlich acknowledges that the work ethic has changed and it’s harder to find young people than it was years ago.

60 / SPRINGS / Spring 2013

Most employees at Ace Wire Spring have been with the company for a long time, including one man who has logged over 60 years of service and a woman who has worked in the office for 38 years.

SPRINGS / Spring 2013 / 61

“We are determined to succeed. We are not going to fail. We’ll get through it, because that’s just who we are and how we work.”

“It used to be people would come from high school and stay with us,” she explained, “now we have to retrain people.” The company has put in place a program to attract young people. They work with local schools to expose students to the opportunities in manufacturing (see complete article in the Winter 2013 issue of Springs).

Family The family part of Ace Spring Wire continues to be strong. Froehlich’s father-in-law, Fred, worked at Ace Spring Wire after he sold his oil business at age 55. “Rich said he needed something to do,” said Froehlich of her father-in-law’s entry into the business. “Fred started doing inventory by hand for my dad and stayed on with us until he passed away a few years ago.” The Froehlich’s son, Ritchy, is the general manager for the company, involved in estimating, spring design and attending trade shows. He’s also the one in charge when the Froehlichs escape to Florida during the winter. Ritchy has two daughters and a son. Ritchy’s sister, Deanna, also worked in the business at one time. She now lives in the Houston area and is the mother of three boys. Like the different skills and talents that Froehlich’s father and grandfather had, Linda and Rich have forged a similar partnership as co-presidents of the company, bringing different strengths to bear in running the company. Linda is in charge of sales, marketing and overseeing the ofﬁce staff and is the outgoing, “personality” of the company, while Rich prefers to work quietly behind

62 / SPRINGS / Spring 2013

the scenes with their son, Ritchy, in handling the plant and equipment activities of the business. “When you both work together with the same goals in mind, it’s fun,” said of her relationship to Rich. “I think it probably has brought us closer together than ever.” She says they enjoy working together, along with travelling and sports activities. Plus, they enjoy their employees and customers. “They are family to us, so what could be wrong with that?” Froehlich concludes by saying, “Nobody’s the boss. We’re just a team.”

Challenges Like many other smaller sized spring companies, Ace Wire Spring was able to weather the recent Great Recession storm. Even now, Froehlich says a second Obama administration and lingering uncertainty has hurt a lot of manufacturers. “Customers order smaller quantities,” she explained. “Nobody is certain about tomorrow.” As belies the grittiness of the Pittsburgh area, Froehlich says, “Somehow we are just going to have to get through this uncertainty.” And as she looks to the future, “We are determined to succeed. We are not going to fail. We’ll get through it, because that’s just who we are and how we work.”

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Industry Supporter Being pa rt of t he spring indust ry has been an integral part of Froehlichâ&#x20AC;&#x2122;s life. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a good industry,â&#x20AC;? she commented. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a lot of hard work, but itâ&#x20AC;&#x2122;s a good industry.â&#x20AC;? Membership in SMI has been important, where Froehlich has made many lifelong friends and developed business relationships. â&#x20AC;&#x153;A lot of work we do is for other spring companies because of our quality and reputation,â&#x20AC;? Froehlich related. â&#x20AC;&#x153;Every spring company has their expertise and thatâ&#x20AC;&#x2122;s why SMI membership and participating in the conventions is a great springboard for meeting other people.â&#x20AC;? Froehlich admits there was a day when SMI members were secretive about what they did, but she believes that era has passed. When attending SMI meetings now, she says â&#x20AC;&#x153;itâ&#x20AC;&#x2122;s amazing how open people will be with you.â&#x20AC;? A former SMI board and committee volunteer, Froehlich is not sure if SMI is ready for a woman president. Sheâ&#x20AC;&#x2122;s hopeful that someone will eventually break that barrier. â&#x20AC;&#x153;More people, especially women in the spring industry, should get involved,â&#x20AC;? explained Froehlich of involvement in SMI. â&#x20AC;&#x153;Come out, meet people and make the contacts. Youâ&#x20AC;&#x2122;ll be amazed at what you can learn.â&#x20AC;? She has been an enthusiastic supporter of the Women in Manufacturing Summit, supported by SMI and organized by the Precision Metalforming Association (PMA).

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â&#x20AC;&#x153;Every spring company has their expertise and that's why SMI membership and participating in the convention is a great springboard for meeting other people.â&#x20AC;?

SPRINGS / Spring 2013 / 63

Linda believes the keys to success in the spring industry involve three P’s — passion, persistence and perseverance.

“And always give 100 percent of yourself. Be truthful, and be fair.” Froehlich said it is often hard to meet other women in manufacturing and this event has been a great opportunity to network, especially to share ideas and challenges unique to women as business owners. “I’ve enjoyed it immensely.”

SuperClip Saga P r obably t he spr i ng’s i ndu st r y most not able accomplishment was the invention of the Slinky by one of its own—Richard and Betty James, founders of SMI member James Spring & Wire Co. Froehlich remembers when the Slinky came out and telling her father, “Why didn’t you do this?” Her dad said, “We don’t do that.” Recollecting that she was about 10 years old at the time, she bluntly told her father, “Why not? We could be rich.” She did predict to her father that Ace Wire Spring would one day do something similar. Froehlich thought her “breakthrough day” had come in the ‘90s when Ace Wire Spring invented the SuperClip. Basically a large paper clip, SuperClip is made from a sturdy, high carbon steel, that can easily hold 100 sheets of paper. “When we invented the SuperClip it was probably one of the most memorable ventures in our lives,” explained Froehlich. “That was fun!”

64 / SPRINGS / Spring 2013

The fun was tinged with frustration and lessons learned by watching the patented product grow and then later be copied by ofﬁce product chains and mass merchandisers, who went overseas to make a cheaper knockoff. “Maybe it’s a compliment to have so many imitate the product,” she says with a laugh. “I would have rather had the money.” Later she reﬂected, “It’s a great product and when we go some place and our grandkids see the product they say: ‘Oh, my grandparents invented that.’ That makes us proud.” A detailed story on the trials and tribulations of the SuperClip was published by Inc. magazine in the December 1997 issue. To read the entire story, visit http:// www.inc.com/magazine/19971201/1373.html. Despite the ups and downs that come with running a business, Froehlich says, “It’s been a good life for us in the spring industry.” She believes the keys to success in the spring industry involve three P’s —passion, persistence and perseverance. “And always give 100 percent of yourself. Be truthful, and be fair.” Gauging success for Froehlich involves “just being there, year after year. Surviving, I guess.” She pauses and says, “Surviving and growing. And we’re hoping to do both.” Whatever challenges lie ahead for Ace Wire Spring, it’s a safe bet they will continue to display the gritty determination that has helped them succeed for nearly 75 years. Q

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Is your retirement plan headed in the right direction?

For information about getting your plan on track, contact Lynne Carr, General Manager, Spring Manufacturers Institute, at (630) 495-8588.

Your future. Made easier.® SMI is a separate legal entity and is not affiliated with the ING family of companies.

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. / Springagreement. 2013 / 65 Securities distributed by or offered through ING Financial Advisers, LLC (member SIPC) or other broker/dealers with which isSPRINGS has a selling 3019114.C.S-3 (8/11) © 2011 ING North America Insurance Corporation C#

For over 25 years, Zapp has been providing the spring industry with the highest quality, best performing products which far exceed the industry standards. Our state-of-the-art mill facility located in Dartmouth, Massachusetts, offers a convenient supply chain that insures continuity and reliability. At Zapp, no matter how we slice it, our precision quality and outstanding customer service always shine through.

East Coast Service Center, 100 Benton St., Stratford, CT 06615 Tel 203.386.0038 Fax 203.502.6681 www.zapp.com

66 / SPRINGS / Spring 2013

SMI Sponsors Room Block for wire 2014 A block of rooms has been reserved for SMI members at the Radisson Blu S c a nd i n av i a i n Düsseldorf, Germany for wire 2014, to be held April 7–11, 2014 in conjunction with Tube 2014. “We hope to have a significant showing of American springmakers at this show,” says SMI president Steve Moreland. “I attended the wire show for the ﬁrst time in 2012, and I encourage other springmakers from the U.S. to attend. This is a show not to be missed.” The two leading global trade fairs wire, International Trade Fair for Wire and Cable, and Tube, International Tube Trade Fair, bring together the

key players in the wire, cable and tube processing industries at the Düsseldorf Ex hibit ion Cent re to present the technology highlights from their respective sectors. On display at wire 2014 will be state-of-the-art machinery, plants and equipment used for manufacturing a nd processi ng w i re a nd cable. Innovative production technologies for tubes and tube processing will be on display at Tube 2014. Information on both trade fairs is available at www.wire.de and www.Tube.de Contact Lynne Carr at SMI for more information on the room block and wire 2014 at 630-495-8588, or email lynne@smihq.org.

SMI Welcomes New Members SMI is pleased to announce the following new members: Wermke Spring, Fenton, Mo. Gilbert Spring, Chicago, Ill. National Kwikmetal Service, Des Plaines, Ill. Maverick Spring Makers Limited, Brantford, Ontario John M. Dean Co., LLC, Putnam, Conn. ASF Keystone, Hammond, Ind. Madison Steel, Atlanta, Ga. Central Wire, Union, Ill.

SMI Mourns Passing of Members It is with deep regret that Springs announces the passing of Frank S. Cardile, Jr. on January 24, 2013 after a long battle with cancer. The president of InterWire Products headquartered in Armonk, N.Y., Cardile was 47 years old. Cardile was born November 22, 1965 in the Bronx, N.Y., son of Frank Cardile Sr. and the late Terry Cardile. He is survived by his wife, Lisa Cardile and his four children, Frank III, Jenna, Amanda and Michael. In addition to Frank Cardile Sr. and his wife, Debbie, Cardile is survived by his sisters Roseann, Lisa and Deborah and his stepbrother Richard. Frank was a cherished uncle, nephew, cousin and godfather and friend to many. He will always be remembered and deeply missed. It is with deep regret that Springs announces the passing of Julius M. Yelsits, 73, on January 6, 2013, after a two-year struggle with cancer.

Known by “Julie” to those he worked with and “Jules” by his family, he was a longtime resident of New Hartford, Conn. He was the beloved husband of E. Lorraine Nufer Yelsits, adoring father of ﬁve, and cherished “Gramps” to 13 grandchildren and great-grandchildren. After his father died when he was just 12 years old, Jules devoted himself to caring for his mother and his younger brothers Richard and Donald. According to his brother Richard, he and Donald “grew up looking up to our big brother.” This admiration would come as little surprise to anyone who knew the “Gentle Giant.” Jules’ relentless optimism, his pride in his grandchildren, and most of all his love of Lorraine, Thomas, Nancy, James, Laura, and Kerry set the standard to which his children and grandchildren aspired. Those who remember Jules will undoubtedly do so in their own way. Some will remember his enormous pancake and egg breakfasts, his coaching on how to hit a wifﬂe ball home run into the pool, his watchful eye as head umpire of

New Hartford youth baseball games, or his mastery of all things mechanical. Julie, as he was known at work, was a cherished colleague and friend for more than 40 years to many during his employment at Torin, BHS-Torin, and Fenn/Torin Metal Forming Solutions before retiring in 2009. Others will remember Thanksgiving Day football games, laughter over Manhattans, or Jules “just busting their chops.” His grandchildren may remember Gramps’ well-worn UNC cap, his weekly phone calls to “touch bases,” or his impossibly tight bear hugs. Those that knew him best, however, will probably remember him simply as their biggest fan — the most supportive when things were difﬁcult, and the proudest when things went well. Jules is survived by his wife, Lorraine, daughter, Nancy Dupill, and three sons Thomas (Kris Anne), James (Karen), and Kerry (Katherine) Yelsits.

SPRINGS / Spring 2013 / 67

>2+85= >2/ 09669A381 =:98=9<= 09< >2/3< =?::9<> 90 9?< >2 88?+6 //>381 Platinum Sponsors

Gold Sponsors

Bronze Sponsor

Brady Safety Padlocks Brady has expanded its comprehensive line of safety padlocks with more than 100 additional parts. The new product offering includes 3” shackle aluminum and key-retaining steel padlocks, nylon shackle safety padlocks and additional color offerings for aluminum and safety padlocks. The latest products round out Brady’s comprehensive padlock solutions and provide safety managers expanded options for lockout compliance. In the past, Brady’s padlocks with 3” shackle were only available as a custom option. The extended product line includes a new key-retaining steel padlock with 3” shackle and aluminum padlock with 3” shackle. Both padlocks are designed for chemical processing and oil and gas industries and are available in eight stock colors. The expanded product line also includes a safety padlock with a non-conductive nylon shackle. This lock offers a patented keyway which breaks any current from traveling from the padlock shackle to the cylinder. Other line additions include a silver aluminum padlock offering, additional KA aluminum padlock sets and two additional stock colors for safety padlock KA sets. “Since Lockout/Tagout (29 CFR 1910.147) is one of OSHA’s most cited regulations, the extended product line gives customers a better one-stop shop for their safety padlocks needs,” says Danielle Gallo, Brady’s product manager for safety, facility and identiﬁcation products. For more information, visit www.BradyID.com/LockoutTagout. In Canada, visit www.BradyCanada.ca.

Before

Replacement Dresser Arm for Besley 918 Grinders Automated Industrial Motion (AIM) has developed a replacement dresser arm for Besley 918 Grinders. The dresser arm uses DuraBond Slide technology which features Rulon linear bearing surfaces for the ultimate performance.

After

Some of its features and beneﬁts include: • Decrease wheel investment cost by dressing less abrasive • Increase production up time by decreasing dress time • Direct replacement for original Besley V-Roll dresser designs • Attaches to dresser arm weldment and uses existing rack and pinion actuation • Box gib design provides high strength and rigidity for precision wheel dressing • Rulon linear bearing surface is durable and provides long term performance • Rulon bearing surface excels in harsh environments and is maintenance free For more information, contact Kurt Witham at 800-933-0404, or kurtw@aimcoil.com.

SPRINGS / Spring 2013 / 69

New Products

Industrial Scientific Introduces the Tango™ TX1 Single Gas Monitor Industrial Scientific, the global leader in gas detection as a service, has introduced the Tango™ TX1 Single Gas Monitor. A three-year runtime and patent-pending DualSense™ Technology increases worker safety, regardless of bump test frequency, while reducing overall maintenance costs. The Tango detects carbon monoxide (CO), hydrogen sulfide (H2S), sulfur dioxide (SO2) and nitrogen dioxide (NO2). Its revolutionary patent-pending DualSense Technology includes two of the same type sensor for the detection of a single gas. The two sensor readings are processed through a proprietary algorithm and displayed as a single reading to the user. DualSense Technology was developed to address the major challenge of making sure workers are always using fully functioning, reliable instruments in the field. The monitor is powered by one replaceable 2/3 AA lithium battery that will power it continuously for up

to three years even if the instrument is being used in the optional “always on” mode. After the battery can no longer support instrument life, it can be easily replaced for another three years of continuous operation. With a three-year instrument warranty, three-year carbon CO and H2S sensor warranty, and twoyear warranty on the SO2 and NO2 sensors, the Tango is the most cost effective instrument on the market today. The Tango is compatible with iNet®, Industrial Scientiﬁc’s gas detection as a service solution. iNet is a software-based service that increases safety by providing visibility into gas detector alarms, exposure and usage. With iNet, customers do not have to buy gas detectors. Instead, they can subscribe to iNet and receive gas detection as a service. For more information on the Tango, visit www.indsci.com/tango. *Based on iNet data including more than 2 million bump tests and 100,000 unique sensors.

Rug Keeps High Trafﬁc Areas Clean The new Oil Eater Tuff Rug from Kafko International provides the long-wearing durability needed for high trafﬁc areas, including forklift aisles and walkways. The absorbent pad has the strength and absorbency to quickly absorb oil leaks, dirt and grime. Made of 100-percent recycled materials, Tuff Rug is underside fused through a heat and pressure process to produce a high level of absorbency while also retaining the tear resistance required. The product is available in 36-inch by 150-ft. rolls. For information, visit www.oileater.com or call 800-528-0334. Samples are available upon request.

A WORLD OF SPRINGS Available in low volume quantities. Avoid no-bids or timely set up on short runs. Century Spring is a great source for filling low volume or prototype demands. Our stock parts ship same day at a very low minimum. To learn more or to request a free stock spring catalog, inquire at info@centuryspring.com or by calling us at (800) 237-5225 Mon-Fri 6:00am - 4:30pm PST. Compression • Extension • Die • Disc • Drawbar H-Clips • Tapered • Torsion • Urethane

222 East 16th Street, Los Angeles, CA 90015 ph 800-237-5225 • fx 800-474-4479 info@centuryspring.com • www.centuryspring.com/smi

70 / SPRINGS / Spring 2013

New Products

Ritron PT Series Portable Radios PT Series Portable Radios from Ritron, Inc., are an ideal solution for virtually any 2-way radio use, especially in manufacturing environments. Ultra small and lightweight, these ergonomically designed radios are easy to hold and use. They feature narrow frequency channel steps for clearer communication with less interference. Nine programmable function buttons allow the PT series to be customized to particular application requirements. These FCC narrow band compliant radios feature 255 channels with channel scan, priority scan and scan resume functions. Built-in selective signaling alerts the user to priority messaging automatically. Loud 1 Watt audio output makes the PT radio easy-to-hear, even in noisy manufacturing locations. Weighing just 10 ounces, these robust radios are tested to Mil-STD 810° F for temperature, humidity,

shock and vibration, and are IP65 rated for resistance to dust and water. Each PT series radio includes DTMF encode, an Emergency Call Button, status icons, and an easy to read alphanumeric LED display. A 13-hour 1800mAh li-ion battery pack provides ample power for shift-plus operations while a low battery alert indicates time to recharge. Each radio includes a spring-action belt clip, ﬂex antenna, long-lasting battery, and a rapid rate charger. Options include remote speaker mic, ear hook earset, and gang chargers. All PT series radios are compatible with other Ritron products such as Liberty Repeater, radio callboxes, wireless PA systems, and more, so that customers can add other radios to the system as their needs grow. For details, visit www. ritron.com

Danly IEM Offers Shorter Spring Lengths Danly IEM has announced the availability of 23 new shorter spring length part numbers to their DieMax XLTM™ Springs product line. The 3/4" free length was added to the 3/8" to 3/4" hole diameters, which includes both the rectangular design and round wire die springs. Available in both inch and metric sizes, Danly IEM springs are made in the USA to ISO9001:2008 certiﬁcation. The 32-page spring catalog has also been updated. Contact Danly at 248-489-9122. Q

In the last issue of Springs we announced the debut of a new series of mid-range wire payoff machines by Spectral Systems. Unfortunately, we printed the wrong contact information for the company. For more information, contact Bob Buehrer, Spectral Systems, Inc. at bbuehrer@spectralsystems.com or phone 800-393-4747.

Advertiser's Index A & D Trading (440) 563-5227 . . . . . . . . . . . . . .11 Acme Wire Products (860) 572-0511 . . . . . . . . . . . . . .36 Admiral Steel (800) 323-7055 . . . . . . . . . . . . . . 8 Alloy Wire International (866) 482-5569 . . . . . . . . . . . . . .51 CASMI (630) 369-3466 . . . . . . . . . . . . . .57 Century Spring, Division of MW Industries (800) 237-5225 . . . . . . . . . . . . . 70 Diamond Wire Spring Co. (800) 424-0500 . . . . . . . . . . . . . 39 Dispense Works (815) 363-3524 . . . . . . . . . . . . . 46 Elgiloy Specialty Metals (847) 695-1900 . . . . . . . . . . . . . 30 Exova (866) 263-9268 . . . . . . . . . . . . . 13 Forming Systems Inc. (877) 594-4300 . . inside front cover, back cov er Gibbs Wire & Steel Co. Inc. (800) 800-4422 . . inside back cover

Gibraltar Corporation (847) 769-2099 . . . . . . . . . . 26, 40 Industrial Steel & Wire (800) 767-0408 . . . . . . . . . . . . . 14 InterWire Products Inc. (914) 273-6633 . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161 . . . . . . . . . . . . . .20 Kiswire (201) 461-8895 . . . . . . . . . . . . . 52 Larson Systems (877) 780-2131 . . . . . . . . . . 29, 56 Link Engineering (734) 453-0800 . . . . . . . . . . . . . 64 Mapes Piano String Co. (423) 543-3195 . . . . . . . . . . . . . 31 Mount Joy Wire (800) 321-2305 . . . . . . . . . . .16, 18 NIMSCO (563) 391-0400 . . . . . . . . . 37, 63 Proto Manufacturing (800) 965-8378 . . . . . . . . . . . . . 34 Radcliff Wire (860) 583-1305 . . . . . . . . . . . . . 49

RK Trading (847) 640-9371 . . . . . . . . . . . . . . 5 Simplex Rapid (563) 391-0400 . . . . . . . . . . . . . 32 Spectral Systems (800) 393-4747 . . . . . . . . . . . . . 62 Spring Manufacturers Institute (630) 495-8588 . . . . . . . . . . 65, 68 Suzuki Garphyttan (574) 232-8800 . . . . . . . . . . . . . . .6 Tool King (800) 338-1318 . . . . . . . . . . . . . 43 Ulbrich Stainless Steels (203) 239-4481 . . . . . . . . . . . . . .58 United Wire Co. (847) 840-9481 . . . . . . . . . . . . . 42 Vinston US (440) 972-1098 . . . . . . . . . . . . . .10 Vulcan Spring & Manufacturing Co. (215) 721-1721 . . . . . . . . . . . . . . 9 WAFIOS (203) 481-5555 . . . . . . . . . . . . . . .3 Zapp Precision Strip (203) 386-0038 . . . . . . . . . . . . . 66

SPRINGS / Spring 2013 / 71

Charly Klein Fox Valley Spring Name: Charles Klein Nickname: Charly Company name and city: Fox Valley

Spring, Greenville, Wis. Brief history of your company: Russ Stang along with a few business leaders started the company in 1989 in a building where you could watch the snow come in. In 1994 they built the current structure and doubled the size of the building in 1996. In 2006 Russ and his wife Kathy bought out the partners, and in 2011 we again doubled the size of the building and added new ofﬁces. Job title: Vice President, Sales and

Marketing. Birthplace: Beaver Dam, Wis. Current home: Appleton, Wis. Family: My wife, Patty; our ﬁve children, Jason, Dan, Andy, Christine, Katie; our grandson, Wyatt; and our three dogs, Hailey, Zoe and Bentley. What I like most about being in the spring industry: Being on the ground

Favorite Places: Anywhere by the

ocean. Best times of my life: Traveling with

my wife, exploring new places and meeting new friends.

If I weren’t working at Fox Valley Spring, I would like to: Host a sports talk radio

show. The most difﬁcult decision I ever had to make was: The company I worked for

was sold. My Dad had worked there for 47 years, and I was the one who had to tell him that his services were no longer needed. Translation: I had to ﬁre my Dad.

ﬂoor of so many new applications; places where you never dream that a spring would be an integral part of the ﬁnished product. It just never gets old.

A really great evening to me is: Build a

Favorite food: Mexican dishes.

take themselves too seriously; life is too short to be full of yourself.

Role Model: My Dad.

My most outstanding quality is: In my

I would like to be remembered in the spring industry for: To continue to help

ﬁre, cook a great meal and enjoy my wife’s company. The one thing I can’t stand: People that

Favorite authors: John Grisham, Tom

Clancy, Michael Connelly.

profession, the ability to close the sale. Favorite song/musician: That’s a tough

one for me. I was a DJ in my early career, so I like all kinds of music, even disco!

People who knew me in school thought I was: Boy that was a long time ago.

Hobbies: Golf, collecting Green Bay Packer paraphernalia.

I knew I was an “adult” when: My ﬁrst

72 / SPRINGS / Spring 2013

Probably a jock! son was born.

build what is already a great company to work for with the awesome people we have here at FVS. But people will probably remember me for: That I tried to bring a sense of

humor and lightheartedness to the spring industry.

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Gibbs delivers the ultimate level of customer service. Period. Not what is typically expected but a level of service that is really, truly, well beyond expectations. And if you think this is just an advertising line, ask any Gibbs customer. We do. All the time. Remarkable customer service is one of the beneďŹ ts we are known for throughout the industry. Since 1956 Gibbs Wire and Steel has represented a combination of responsiveness, innovation and leading edge

technology, the lowest total cost and a team of dedicated and knowledgeable employees you can count on. From our newest hire in the warehouse to our most senior employee in management. Men and women who truly care about the work they do and the customers they serve. Thatâ&#x20AC;&#x2122;s why so many leading companies have chosen to partner with us.

The People You Can Rely On For Wire And Strip ZZZ JLEEVZLUH FRP

Connecticut

Indiana

Texas

California

North Carolina

Ontario

Mexico

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