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Winter 2017
A Publication of the Spring Manufacturers Institute / Vol. 56, No. 1
The International Magazine of Spring Manufacture
Employee Engagement
Employee Engagement 24 Manufacturing Day 2016 Recap 36 Forecast 2017 49 2001 Midwest Rd., Suite 106 Oak Brook, IL 60523-1335 Change Service Requested [61983.pdf (2)](1)
Let the Sunshine In 52
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President’s Message
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SMI Executive Committee President: Mike Betts, Betts Company Vice President: Steve Kempf, Lee Spring Secretary/Treasurer: Bert Goering, Precision Coil Spring Co. Immediate Past President: Hap Porter, SEI MetalTek At Large: Dan Sceli, Peterson Spring Executive Director: Lynne Carr
From Mike Betts
SMI Board of Directors
Empowering the Year Ahead This issue of Springs, “Employee Engagement,” is timely, as many of us have begun our planning process for 2017. When you start to plan for the upcoming year, do you take the time to look objectively at what is working well and where you have opportunities to improve? One of the most important aspects of improvement is creating a close-knit team of doers whose goals are aligned to achieve success. This begs the question of how to best empower our employees. The answer may surprise you. Peter DeMarco, an empowerment professional, was asked the question, “My boss says I need to empower my people to make decisions. What is the right way to empower others?” His answer, in a word: “Don’t.” Peter Drucker once quipped of empowerment: “That’s an obscene word.” He stated further, “The term empowerment, while well intentioned, is imprecise, incomplete and tends to do more harm than good.” Instead of empowering employees to make certain decisions or do certain things, Drucker encouraged leaders to give their employees responsibility to do so. Like you, I am excited to read the articles in this issue on how to empower our employees. Our 2017 SMI Annual Convention this spring will be held at the Ritz-Carlton on Amelia Island in Florida from March 31 to April 4. While together on Amelia Island, nothing could be more empowering than learning about our new Dream It. Do It. (DIDI) program that SMI has adopted and getting involved with our new DIDI Ambassadors program. With more than a dozen SMI member companies now participating in Manufacturing Day events, our DIDI ambassadors will hold strategy discussions with representatives of the National American Manufacturers Association (NAM) to learn how SMI members can get the most out of the Manufacturing Day program. Dream It. Do It. is designed to connect our businesses with students who will become the next generation of talented workers. By becoming a DIDI ambassador you can make a difference at your company and in your community. If you are interested, please connect with me at mike.betts@betts1868.com. We will also be updating our progress toward filling our technologist position at SMI. Our convention education program will feature several exciting speakers, one of which will deliver a game-changing talk for couples titled, “Great Minds Think Unalike.” This presentation will look at Gender Intelligence®, which is the understanding of the naturally-occurring characteristics that distinguish attitudinal and behavioral differences between men and women. In closing, many folks have asked about the SMI Metal Engineering eXpo that will be held in Hartford, Connecticut from Oct. 3 to 5, 2017. SMI is holding the eXpo in partnership with our friends at the New England Spring Manufacturers Association (NESMA). Our event will offer one of the best spring industry education platforms ever. To learn more, visit our eXpo website at www.metalengineeringexpo.org. On behalf of the SMI board and staff, we look forward to visiting with you at our annual convention on Amelia Island and at the SMI Metal Engineering eXpo. All the best! Mike Betts
John Bagnuolo, MW Industries • Cheri Betts, Betts Company • Tim Bianco, Iowa Spring • Mark DiVenere, Gemco Manufacturing • Frank Foernbacher, Kern-Liebers USA • Brett Goldberg, International Spring • Don Jacobson III, Newcomb Spring • Charly Klein, Fox Valley Spring • Bill Krauss, Vulcan Spring • Bill Lathrop, Colonial Spring Company • Don Lowe, Peterson Spring • Daniel Pierre III, JN Machinery • Hannes Steim, Kern-Liebers USA • Chris and Jeff Wharin, Bohne Spring • Ted White, Hardware Products • Steve Wunder, Duer/Carolina Coil
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, Art Director, zubekdesign@gmail.com
Springs Magazine Committee Chair, Ted White, Hardware Products • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Brett Goldberg, 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 reference images from: ©iStockphoto.com/Weekend Images Inc.
2 / SPRINGS / Winter 2017
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SPRINGS / Winter 2017 / 3
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Contents
S
24 36 52 FEATURES 24 Employee Engagement By Gary McCoy
25 Employee Engagement:
An Interview with Mackenzie Kyle, author of “The Performance Principle”
30 Gender Intelligence:
A Tool to Improve Workplace Engagement By Kendra Thomas
31 Key Account Spotlight Helps Central Wire Industries Engage Employees
By Danny Bozart
32 Transform Walking Dead Employees into Raving Fans…Without Paying More
By Mike Campion
33 Flashback
Cultivating Teamwork By John Murphy
36 Manufacturing Day Participation Increases Among Springmakers 41 Second Edition of SMI Metal Engineering eXpo is Full Speed Ahead 44 Another SpringWorld is in the Books 49 Forecast 2017
DEPARTMENTS 2 President’s Message
Empowering the Year Ahead
7 Global Highlights 14 Regional Spring Association Report 59 Springmaker Spotlight
Bohne Spring Industries in Toronto Celebrates 125 Years By Gary McCoy
Rising Employment, Confident Consumers Drive Economy By Philip M. Perry
65 Book Corner
52 Let the Sunshine In
67 CTE News
By Gary McCoy
57 A Lobby Show Piece By Tim Morris
COLUMNS 17 Be Aware Safety Tips
"Suitable" Electrical Equipment By Laura Helmrich-Rhodes
21 Dean of Springs
How Do I Grow My Business? By Dan Sebastian
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69 Inside SMI 73 Committee Connection 74 New Products 75 Advertisers’ Index 76 Snapshot
Gary Schuessler Diamond Wire Spring
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Symposium. Demonstration.
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A Special Event Dedicated to Productivity Enhancement... Our one-day technology symposium will show you the way to enhancing the competitiveness and profitability of your spring-making operations with best-in-class solutions from WAFIOS. Take this unique opportunity to learn about the latest advances in machine control systems, tool technology and automation by participating in proprietary technical presentations with hands-on demonstrations. Featured Machines Spring Coiling Single-head Bending Spring Winding, Coiling and Forming
iQ Functions on Demonstration smartbend spring bend autopitch adaptive control control bestspeed Register FREE by email to Brian Davi : BrianD@wafios.us
Engineered for What’s Next Spring Coiling & Forming Machines
WAFIOS Machinery Corporation 27 NE Industrial Road, Branford, CT 06405 USA Phone: 203-481-5555 / Fax: 203-481-9854 A Subsidiary of WAFIOS AG Precision Machinery for Wire, Tube and Formed Parts
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Wire Bending & Forming Machines
Wire Straightening, Cutting & End Working Machines
Tube Bending & Forming Nail, Fastener & Chain Machines Machines
WAFIOS Midwest Technical Center 9830 W. 190th Street, Mokena, IL 60448 USA USA www.wafios.us sales@wafios.us SPRINGS / Winter 2017 / 5 Canada www.wafios.ca sales@wafios.ca
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Global Highlights North America American Spring Wire Corporation (ASW) of Bedford Heights, Ohio and Joh. Pengg AG (Pengg) of Thörl, Austria have formed a partnership to manufacture high quality, specialty steel wires for the North American market. The new entity will be called ASW.Pengg LLC, and will be located in Bedford Heights at the location currently occupied by ASW. Substantially all of ASW’s wire manufacturing assets in Bedford Heights, and Pengg’s activity of North American business have been contributed to the new entity to make up the partnership. “We are pleased to be joining with Pengg in this effort to strengthen our base of business and expand our product offering to North American springmakers and specialty wire users,” said Timothy Selhorst, CEO of ASW. He continued, “ASW has established a very strong brand over our 50 years of serving the North American market, and we’re very excited about joining with one of the world’s premier specialty wire producers to create North America’s highest quality steel wire manufacturer.” All of ASW’s employees will be retained in the new venture. Greg Bokar, who has acted as ASW’s president for the past two years, will continue in a leadership role as chief executive officer. He will be joined by Roland Tutzer of Pengg who will play the role of chief technology officer and vice president. Alexander Phillipp, CEO of Pengg, added, “This partnership gives us the opportunity to combine the knowhow of two well experienced wire manufacturers for the benefit of our customers. We want to grow our market share in North and South America, Europe and Asia and will be able to offer additional products to all markets. We very much look forward to working together with the ASW team to create a world-class wire manufacturing unit in North America.” ASW.Pengg plans to make a number of investments over several years to expand the product offering of the business. Further details about the capabilities of ASW. Pengg will be shared in future disclosures. A m e r i c a n Sp r i n g W i r e C o r p o r a t i o n (w w w. americanspringwire.com) manufactures valve spring and commercial quality spring wire in carbon and alloy steel grades for use in the automotive, agriculture, appliance and residential construction markets. Capabilities include round and shaped wires from .120" to .625". Manufacturing processes include: chemical pickling, surface removal, die drawing, cold rolling and oil tempering. ASW is registered to ISO 9001:2008 standards.
JOH. PENGG AG (www.wire-pengg.com) operates manufacturing units in Austria, Czech Republic and India (Pengg Usha Martin) and a sale offices and stock in Hong Kong and China. Capabilities for oil-tempered wire range from .0016" to .300". Pengg Austria and Pengg Usha Martin are registered to ISO 16949, ISO 9001:2008 and ISO 14001 standards. Central Wire Industries (CWI) is pleased to announce the acquisition of Sanlo, Inc. (Sanlo), a manufacturer and distributor of galvanized and stainless wire rope, custom extruded products, and engineered cable assemblies, located in Michigan City, Ind. Cent ral Wire Indust ries, fou nded in 1955 a nd headquartered in Perth, Ontario, Canada, manufactures and distributes stainless steel, nickel alloy, and copper and brass wire and welding wire products throughout the world. The company, which maintains nine manufacturing facilities — six in the United States, two in Canada, and one in the United Kingdom — has over 400 employees. Central Wire provides products to many major industries, including aerospace, petrochemical, food-processing, medical, automotive, and marine. The acquisition of Sanlo by Central Wire Inc. (CWI’s U.S. subsidiary) marks the third acquisition by CWI in the past two years; Sanlo joins Strand Core, a manufacturer of stainless and galvanized strand, wire rope, and rope assemblies (September 2014) located in Milton, Fla., and CWI UK Ltd., (formerly Hempel Wire), a manufacturer of stainless and nickel alloy wire specializing in a wide range of rolled profiled wire (February 2015) located in Rotherham, United Kingdom, as a recent CWI acquisition. For almost 60 years, Sanlo has provided wire rope and mechanical cable assemblies with reliable, cost effective solutions to an ever-increasing array of applications in a wide range of industries. Sanlo provides products including galvanized steel and stainless steel cable, nylon, vinyl, and various other extruded resins, and finished goods with numerous assembly configurations. The acquisition, which includes the Sanlo trademark and all of Sanlo’s operating assets and its intellectual property, allows Central Wire to further diversify its customer base and provides Strand Core the opportunity to connect directly with end-users. CWI looks forward to augmenting its product lines with the capabilities and expertise of Sanlo as well as
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utilizing Sanlo’s central U.S. location in the distribution network for Central Wire’s wide range of product offerings. As the transaction finalized, CWI named Sanlo’s current sales leader, Luke Vandercar, as the general manager of the facility. “Sanlo brings to CWI and Strand Core a depth of product development and technical sales which further deepens all operations. Sanlo is geographically located in the right area and has a ‘value defined’ workforce; capable and experienced,” said Paul From, president and CEO of Central Wire Industries. “We have been impressed with Sanlo’s team and I know they are all eager to see growth and development of new global markets, precisely what CWI can bring to the table.” The transaction was completed August 25, 2016. For further information, contact From at 613-267-3752. Also at CWI, Tabitha Herbst has taken on added duties with her new title of sales and commercial development, focusing on future growth of their spring wire stocking programs located in Ill., Texas, S.C., Calif., Canada and the U.K., as well as other CWI specialty products. She will continue to be based at the Union, Ill. plant. Dudek & Bock Spring Manufacturing Company received the Sandy Trowbridge Award from the National Association of Manufacturers (NAM). Located in Chicago, Dudek & Bock
John and Kathleen Dudek accept the Sandy Trowbridge Award from the National Association of Manufacturers.
is a leading manufacturer of custom springs, wireforms, metal stampings, and assemblies. The Sa ndy Trowbr idge Awa rd is na med a f ter Alexander B. “Sandy” Trowbridge, the late NAM president and former U.S. Secretary of Commerce, and is presented to an active NAM member that is heavily involved in
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community service. On September 30, 2016, John and Kathleen Dudek, president and owners of Dudek & Bock, flew to Washington D.C. to accept the award. Dudek & Bock received the award for their work partnering with local high schools and community colleges to offer internships, job shadowing, career counseling and site visits. “For our company and our employees, giving back to the community is not only part of our mission, but also our passion,” said John Dudek. “We work with high schools and colleges around the Chicago area to foster and build today’s youth into manufacturing’s future. We are honored to receive this award.” Dudek & Bock has selected the Jane Adams Resource Center (JARC) to receive the award funds. JARC will use the $5,000 grant to upgrade the computers in its CNC lab. JARC provides job training, income support and financial coaching for families transitioning out of poverty. “Dudek & Bock has show n g reat at t it ude a nd excellent leadership in serving our community and is striving to continue to set an example for the future of manufacturing,” says Kathleen Dudek. “We are proud of our team.” The International Organization for Standardization (ISO) and ASTM International have jointly crafted the Additive Manufacturing Standards Development Structure, a framework which will help meet the needs for new technical standards in this fast-growing field. Additive manufacturing (AM), also known as 3D printing, is the process of joining materials layer upon layer, as opposed to “subtractive manufacturing” methods such as machining. The new structure will help guide the work of global experts and standards development organizations involved in AM standardization, identify standardsrelated gaps and needs in the AM industry, prevent overlap and duplicative efforts in AM standards development, ensure cohesion among AM standards, prioritize AM standards areas, and improve usability and acceptance among the AM community, including manufacturers, entrepreneurs, consumers and others. Also at ASTM International, a new standard has been developed that will help manufacturers and buyers who want to use 3D-printed stainless steel alloys, which can be made more quickly than through traditional methods. This new specification describes chemical and mechanical requirements – as well as other properties – of additively manufactured parts made from 316L (UNS 31603), which is a widely used grade of stainless steel. “Among the companies that will find the standard most useful are manufacturers willing to replace cast or wrought 316L parts and components, especially those with complex geometries, high inventory costs or long lead times,” says ASTM member Dr. Amir Farzadfar,
materials process engineer for additive manufacturing at Corning Inc. “Also, regulatory bodies such as the American Society of Mechanical Engineers will benefit, since the availability of this standard is the first step toward the ASME adoption process of additively manufactured parts,” Farzadfar added. The standard (soon to be published as F3184M, Specification for Additive Manufacturing Stainless Steel Alloy (UNS S31603) with Powder Bed Fusion) was developed by ASTM International’s committee on additive manufacturing technologies (F42). ASTM International also announced that it has hired its first director of additive manufacturing programs, Mohsen Seifi, to help support standards development activities and relationships in this fast-growing industry. To purchase standards, visit www.astm.org and search by the standard designation, or contact ASTM Customer Relations by phone at 877-909-ASTM; sales@astm.org. ASTM welcomes participation in the development of its standards. Become a member at www.astm.org/JOIN. The Yost Superior Company, located in Springfield, Ohio, has announced that Bert Barnes has sold the company to Dave Deerwester. Deerwester has been with the company for 25 years, most recently serving as vice president and
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quality manager. For more than a century, The Yost Superior Co. has produced custom made springs and wireform products, “Quality True since 1902.” Barnes’ grandfather, Bert F. Downey, worked at Yost during the early 1900s and became majority owner before his deat h in 1954. Barnes’ father, L.V. Barnes, then led the company until 1977, at which time
Barnes became president and, in 1989, majority owner. Barnes will continue to serve the company as chairman of the board of directors. Deerwester is honored to continue the longstanding commitment to pr ov ide pr e c i sion spr i ngs, f a st delivery and outstanding customer service to more than 1,000 companies across dozens of industries alongside
t he m a n a gement te a m of Ga r y Dickerhoof, Brian Phillips, Jason Lay and Mark Adkins. Deerwester holds a B.S.M.E. from The Ohio State University and lives in Springfield with his wife Sharon and their three children. Gi f f or d Spr i n g C ompa ny, a dynamic manufacturer of custom precision springs and wireforms in Garland, Texas, recently announced that its quality management system has been audited by Perry Johnson Registrars, Inc. and registered as being in confor ma nce wit h ISO 9001:2015. Melany Gifford, president a nd daug hter of fou nder Ralph Gifford, explains, “Achieving this cer tif ication is for mal evidence of what we have been doing all along and every day. Each member of ou r tea m plays a n essent ia l role in pursuing Ralph’s original vision of springmaking excellence and following his example. This achievement is a reflection of how seriously we respond to our customers’ requirements. They demand excellent quality, manufacturing ingenuity and world-class service — and we make sure they get them.” For more information, visit www. giffordspring.com. Blue Blade Steel has announced the promotion of Jeremiah Shaw, Jr. to the position of vice president of sales and administration. Shaw, Jr. joins his father, Jerry Shaw Sr., president, and Don Lindewirth, vice president of operations, in the senior management team. For seven yea rs, Shaw, Jr. served as business development manager at the company, during which time he earned an MBA in business administration from Rutgers Business School. Shaw, Jr. has more than 15 years of experience in the industry and a diverse background. Working directly with his father at Blue Blade Steel, he has gained the knowledge and principles inherent to the company’s success.
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The company says Shaw, Jr.’s passion for the industry was ignited at an early age from a strong family history in metals, which spans four generations with a good balance of hands-on experience, education, and guidance from successful entrepreneurs which will serve him well in his new position. Sologlobe, a leading provider of supply chain software, has reached an agreement whereby the Generix Group will acquire a majority stake in Sologlobe Logistics Inc. Sologlobe has built a strong reputation by offering extensive solutions for manufacturing and distribution companies with its warehouse management system (WMS) and manufacturing execution system (MES). These solutions are built on the latest technologies and have been leading the market by offering rich functionalities and technological innovations. According to Louis Veilleux, CEO of Sologlobe, “We were looking to accelerate growth by increasing our portfolio of supply chain solutions to better serve our customers. We also wanted to extend our worldwide presence. Companies that aim to optimize their supply chain are looking for broad platforms that support robust capabilities. They are also looking for a solution provider that has a global footprint. Joining the Generix Group family enables us to
achieve these two strategic objectives quickly, bringing immediate value to existing and future customers.” By becoming the exclusive distributor and integrator of the Generix Group’s products in North America, Sologlobe will now offer a more comprehensive portfolio of supply chain solutions. The agreement also provides rapid growth opportunities on the international market for its flagship product: SOLOCHAIN. Jean-Charles Deconninck, CEO of Generix Group, said, “We were looking for a company that shares our vision in terms of entrepreneurship and innovation, and also has a strong footprint in the North American marketplace. Sologlobe is an excellent fit and we look forward to combining our strengths in order to offer our clients the tools to build world class supply chains.” By joining the Generix Group worldwide family, Sologlobe gains access to additional resources that support its growth plan strategy. Sologlobe will be offering the extended portfolio of products to the North American market as of October 2016. For more information visit www.generixgroup.com. Diamond Wire Spring celebrated the 75th anniversary of its incorporation and 77 years since the company started with a special event at PNC Park, home of the Pittsburgh
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As a satellite event of wire Düsseldorf in Germany, wire Southeast Asia responds to the steadily increasing importance of fastener technology. At wire Düsseldorf 2016, a large number of national and international companies presented their fastener technology products on 35,500 square feet of exhibit space. This year, wire China, another event in the Messe Düsseldorf worldwide trade fair portfolio, also introduced its special fastener technology show — the Fastener Shanghai Special Zone. A total of 180 companies offered their products on a net space of 25,700 sq. ft. For further information on wire Southeast ASIA 2017 or any of the other worldwide wire trade fairs in the Messe Düsseldorf program, contact Messe Düsseldorf North America, at 312-781-5180 or visit http://www.mdna.com. Subscribe to their blog at http://blog.mdna.com and follow on Twitter at http://twitter.com/WireTube_MDNA
Don Fazio, president of Diamond Wire Spring, discusses the many uses of springs to the children of company employees.
Pirates. Employees and family members enjoyed a personal tour of the park, dinner and an awards ceremony during the Sept. 17, 2016, event. Diamond Wire Spring has three manufacturing plants located in Pittsburgh, Tyler, Texas, and Taylors, South Carolina. In addition to the manufacturing plants, there is also a catalog division located in Glenshaw, Pennsylvania, which houses over 11,000 different parts in stock.
Correction In the Fall 2016 issue of Springs, we reprinted with permission from CompositesWorld the article: “Composite Leaf Springs: Saving Weight in Production Suspension Systems.” The location for Liteflex, LLC was identified as Englewood, Colorado. They are actually located in Englewood, Ohio. n
International
www.vulcanspring.com
The Keats companies have opened a new manufacturing plant in El Marques, Queretaro, Mexico. The new plant is the third manufacturing plant under the Keats corporate umbrella. It will operate under the name Keats de Mexico and will manufacture complex precision metal stampings, wireforms and assemblies for the automotive, electrical distribution, medical, electronics, appliance and home automation industries. Keats specializes in custom metal clips, terminals, brackets, heat sinks, ground straps, shields, springs, contacts, covers, washers, antennas, plates, inserts, clamps, bus bars, spacers, bushings, caps, pins, yokes, disks, socket jaws, sleeves, lead frames, armatures, collars, latches and blades. Keats de Mexico is located in Business Park Advance Conín, just 10 miles east of Santiago de Queretaro. The building is approximately 15,000 sq. ft. and will employ 15 to 20 people. Total investment will be approximately $1MM. For more details, visit www.keatsmx.com. wire Southeast ASIA 2017, the 12th International Wire and Cable Trade Fair for Southeast Asia, will for the first time feature a special fastener technology show. The event will take place from Sept. 19–21, 2017 in Bangkok, Thailand.
When you need a quality custom spring with fast turnaround, you can count on Vulcan Spring & Manufacturing Co. sales@vulcanspring.com | Phone: 215-721-1721 | 501 Schoolhouse Road, Telford, PA 18969
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Thank You to all who participated in SpringWorld 2016 Be proud that you are part of an industry that provides vital parts for all sectors of manufactured products.
Truth.
Almost nothing man-made moves without springs.
Truth.
It takes knowledge, skill and experience to be a successful spring manufacturer.
Truth.
A complete supplier support system of equipment, materials, test equipment and services are required to maintain the spring manufacturing industry.
Be Proud.
Success in this industry, whether manufacturer or supplier, demands championship performance.
Be Proud.
Together at SPRING WORLD® we share remarkable achievements in applying the latest technologies to create more productive machinery, advancements in metallurgy and fabrication of production materials, a higher level of quality and consistency of product and the means to measure it. These efforts enable improvements in products we all use and the tools to make them.
Be Proud.
Your work contributes to the improvement of the quality of life for people from all corners of globe.
presented by Join us for SPRING WORLD® 2018 Donald E Stephens Convention Center Rosemont, IL | October 3-5, 2018 For information visit our website or call 630.359.4273. 155670 CASMI SPRINGWORLD AD.indd 1
We’re proud to be on your team! CASMI is proud to cheer for all of the Champions of the Spring Manufacturing Industry Manufacturers and Suppliers.
www.casmi-springworld.org
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Regional Spring Association Report NESMA Holds Annual Golf Outing By Ted White NESMA’s annual golf outing was held Sept. 12, 2016, at the Chippanee Country Club in Bristol, Connecticut, but not without a scheduling difficulty (t he cou rse was double booked) getting resolved at the last minute so the event could go on as scheduled. I want to say a special word of thanks to NESMA’s new administrator, Dee Babkirk, who contacted each of the 95 golfers and 39 dinner members who planned to attend about the mix-up. No sooner had Dee completed the difficult task, when Chippanee Country Club called to say the issue had been resolved and the event could go on as scheduled. Everyone enjoyed the upgrades recently made to improve the facilities at Chippanee, both on and off the course. After lunch was served, golfers were treated to perfect weather. As people played they started to become parched. Last year, one of the beer kegs that was delivered to the
13th hole went missing. There were some allegations that the keg ended up in the trunk of my Lexus. These allegations were blatantly untrue, but it took a week for my back to heal. This year there were no such disappearances, but many people suggested that it was better that I left some beer for other people. After the golfing was finished, there was a cocktail hour in the lounge of the Chippanee Country Club, where much ca ma rader ie wa s enjoyed and hyperbole exchanged about the day’s golf scores. Everyone moved into the dining room for the buffet dinner, followed by a short business update on the state of NESMA by our president Michael Brault. NESMA has changed quite a bit under the tutelage of Michael, having become more active in technical education, legislative involvement, membership outreach and membership benefits.
When Michael was f inished, perennial master of ceremonies and past NESMA president Bill Lathrop handed out the golf awards. The lowest score went to the team of Steve Putnam, Ray Kwasnik, Doug Delfini and John Torda. Closest to the pin went to Pete Marut for the men and Kim Lanke for the women. The longest drive for the men went to Bob Swanson and Kim Lanke won the women’s award When the golf prizes were through, a plethora of door prizes were handed out. An unusual set of circumstances repeated itself, namely that a certain few people won multiple door prizes. No aspersions are being cast as it is different people every year, but it is a recurring event that people tend to win multiple prizes. After the event, as is normally the case, many people lingered for some closing fellowship until next year’s event.
Pittsburgh-Ohio Spring Group Meets A Sept. 8 meeting of the PittsburghOhio Spring Association was held at The Lakehouse Inn along the southern shore of Lake Erie in Geneva-ont he-La ke, Ohio. The event, wit h 26 attendees, included a special presentation by State Representative John Patterson, who represents Ohio House District 99. SMI executive director Lynne Carr updated attendees on the 2017 SMI Metal Engineering eXpo to be held Oct.
3-5 in Hartford, Connecticut. She also provided reports from SMI’s standing committees. Dr. Laura HelmrichRhodes, SMI’s regulatory compliance consultant, shared information on important regulatory issues. Rhodes also answered a number of questions from springmakers. Repr esent at ives f r om spr i ng companies in attendance included: Ace Wire Spring & Form Co. Inc., A M W Spr i n g s, Ba r b e r Spr i n g ,
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Diamond Wire Spring Co., Elyria Spring & Stamping, Marik Spring Inc., Mercer Spring & Wire, Spring Team, Inc., The Spring Works Inc. and The Yost Superior Co. Special guests represent ing suppliers included Anchor Abrasives Co., Central Wire and Gibbs Wire & Steel Co. Also in attendance was Russ Bryer, a retiree from Spring Team Inc. and a former SMI board and executive committee member.
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Regional Spring Association Report ©iStockphoto.com/Scott Hirko
WCSMA Mourns Loss of Leo Hernandez The West Coast Spring Manufacturers Association (WCSMA) has announced the passing of Leo Hernandez of Diversified Spring Tech., Inc. on Sept. 28, 2016. Services for Hernandez, 87, were held in Whittier, California Oct. 6, 2016. Hernandez’s daughter, Marilyn Chudnofsky, delivered the eulogy at her father’s funeral and said he was the second oldest of 16 children born in Cuba. At the age of 26 he came to the U.S. “His dream was to live some time in Florida, New York and Chicago and then come back to Cuba.” His dream was deferred when Fidel Castro came to power and Hernandez was on a hit list of “Traitors of the Revolution.” He did not return to Cuba, but instead “the son of a successful businessman” took on multiple jobs in New York just to survive. Hernandez was first introduced to the spring industry in Chicago when he happened to see a coiling machine in action. It was love at first sight. He eventually moved to Los Angeles and went to work at Precision Spring, before later working at Foremost Spring. “At both companies he was in charge of the coiling department and was the shop foreman,” said Chudnofsky. “My father’s hard work and prudent nature afforded him the ability to invest in income property and also the financial means to open Diversified Spring Tech., Inc. (in 1986).” Chudnofsky went on to say, “Throughout his career, my father gave many their start in the spring industry, mentoring them throughout their careers. Many the mother or aunt that would take their boys to my dad asking him to give them a job.” Hernandez is survived by his wife of 48 years, Olga Hernadez, his children, Sara Vasquez and Marilyn Chudnofsky, and three grandsons.
CASMI Plans Spring Fling; Announces Loss of Past President CASMI will host its Biennial Spring Fling Dinner Dance Saturday, Feb. 18, at 6:30 p.m. at Twin Orchard Country Club in Long Grove, Illinois. CASMI will install its new directors at that time. For more information on the event, visit www. casmi-springworld.org.
Joseph Sirovatka, 58, a former CASMI member and past president of the organization in 2009-2010, died Oct. 30, 2016. He was previously employed at Perfection Spring, Lewis Spring and RR Spring. Sirovatka is survived by his former wife and three daughters. n
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Be Aware Safety Tips
“Suitable” Electrical Equipment By Laura Helmrich-Rhodes, CSP, Ed.D.
D
uring the period October 2015 to September 2016, spring and wire product manufacturing organizations incurred 35 Occupational Safety and Health Administration (OSHA) inspections, resulting in 92 citations. This cost the industry $262,779 in penalties. We have already discussed many of the most frequently cited standards here and during SMI webinars. The subject we will address now is the seventh most frequently cited: “Electrical – General Requirements.” The spring industry incurred just over $10,000 in penalties for this standard. In all, this standard was cited 1,352 times and cost the entire manufacturing sector $2.28 million in penalties over the same period. Obviously, manufacturing, including spring manufacturing, needs help addressing electrical hazards. Space prohibits addressing all electrical concerns such as lockout/ tagout or maintenance personnel exposure to electric arc blast in this issue of Springs. We will focus on suitable electrical, the prevention of electrocution, burns, fires and explosions. It is likely much of this is new information to many readers. OSHA’s regulations on electrical are based on National Fire Protection Association (NFPA) 70, which is also known as the National Electric Code (NEC). One way to solve many compliance concerns is to only use licensed electricians who understand that all work must be done “to code” without exception. Installations done in compliance match the environment in which they are located. Unfortunately, not all who portray themselves as electricians are licensed. Even some professional engineers (PE) may not be familiar with these requirements, depending upon his/her specialty. Some companies rely on experienced maintenance personnel to determine workmanship. Owners and top management need to be aware that the NEC provides guidelines for electric wiring, equipment, and systems installed in hazardous (also known as classified) locations and contain specific provisions for the following: wiring methods, wiring connections, conductor insulation, flexible cords, sealing and drainage, transformers, capacitors, switches, circuit breakers, fuses, motor controllers, receptacles, attachment plugs, meters, relays, instruments, resistors, generators, motors, lighting
If the work is done in a “Hazardous Location” then the fixtures, devices, motors, fans, etc. must be constructed for explosion potential. The term “Explosion Proof” does not mean that it will not explode, but rather that if an explosion occurs it will be maintained within the fixture itself. fixtures, storage battery charging equipment, electric cranes, electric hoists and similar equipment, utilization equipment, signaling systems, alarm systems, remote control systems, local loud speaker and communication systems, ventilation piping, live parts, lightning surge protection and grounding (See OSHA Standard 29 CFR 1910 Subpart S Electrical). Nowadays, some of what has traditionally been delegated to the maintenance department is beyond their skills and decision-making capabilities. When evaluating electrical installations for suitability, one must focus on the environment in which the work is done. If the work is done in a “Hazardous Location” then the fixtures, devices, motors, fans, etc. must be constructed for explosion potential. The term “Explosion Proof” does not mean that it will not explode, but rather that if an
Laura Helmrich-Rhodes, CSP, Ed.D., is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A former member of PA/OSHA Consultation, she is an associate professor in the Safety Sciences Department at Indiana University of Pennsylvania where she teaches graduate and undergraduate classes on topics such as OSHA standards, safety communications, workers’ compensation and human relations. Rhodes is available for safety advice and information. Contact SMI at 630-4958588 or laurahrhodes@gmail.com.
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Hazardous Locations according to National Electric Code/NFPA70/OSHA Class I
Class II
Class III
Division 1
Presence of flammable gases or vapors in the air in sufficient quantities to be explosive or ignitable
Presence of combustible dust in the air in sufficient quantities to be explosive or ignitable
Presence of easily ignitable fibers or flyings
Division 2
Where volatile flammable liquids or flammable gases or vapors are used, but which would become hazardous only in case of an accident or of some unusual operating condition
Where dangerous concentrations of suspended dust would not be likely, but where dust accumulations might form on or in the vicinity of electric equipment. These areas may contain equipment from which appreciable quantities of dust would escape under abnormal operating conditions or be adjacent to a Class II Division 1
Locations in which easily ignitable fibers are stored or handled, other than in the process of manufacture
explosion occurs it will be maintained within the fixture itself. Intrinsically Safe equipment is made in such a way that it is unable to be an ignition source. If you dismiss this discussion by assuming that you do not have “Hazardous Locations,” read on.
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Hazardous Locations as defined by NEC (and OSHA), are found in three different operations, two of which are consistently found in springmaking. • Class One Division One locations include the presence of flammable gases or vapors in the air in quantities sufficient enough to be explosive or ignitable. These are found in nearly all springmaking plants. Potential areas where this can occur are in spray finishing, dipping and coating operations where flammable vapors are present. Often overlooked are the areas where flammable liquids are mixed and/or transferred to a secondary container. Some oil quenching operations also need protective equipment. • Class One Division Two is limited to where the release of such vapors are unintended, such as in a storage area where no mixing or transfer occurs. One way to remember Division Two is that it is only an emergency or unforeseen circumstances that create the hazard. For example, a storage room in which no mixing or transfer occurs and the only time vapors would be present would be if an accident occurred, such as a drum puncture. • Class Two locations focus on presence of combustible and explosive dusts. Despite the lack of the passage of a specific OSHA Combustible Dust standard (yet), the suitability of electricals is the go-to citation for dust environment in every industry. Class Two Division One locations are possible in your facility. This means the presence of combustible dust in the air in sufficient quantities to be explosive or ignitable. Most of us understand that organic materials such as flour, sugar and wood dust are
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• Class Three presence of easily ignitable fibers or flyings. Typically, these fibers and flyings are not suspended in the air, but can collect around machinery or on lighting fixtures and where heat, a spark or hot metal can ignite them. This can be seen in manufacturers where fibrous products are baled and sawmills (yes, wood dust/flyings are classified in both Class Two and Three depending on its form). Entire buildings are not likely to be classified as I, II or III but rather areas of your facility. Just the area where the activity is occurring needs to be for the hazardous location and possibly an extended area around the operation. The bottom line is that all electrical service wiring, equipment and forklifts too, must be intended for the particular environment. This is the reason ordinary household equipment such as fans, coffee makers and microwave ovens are not appropriate in the shop area. Control of ignition of hazardous atmospheres by inerting (replacing oxygen in a machine or dust collection with an inert gas such as nitrogen) is often dismissed as a retrofit but is being considered more often as prevention through design, thus becoming more commonplace in original machine design. By replacing the oxygen with an inert gas such as nitrogen or carbon dioxide, the ignition condition is eliminated. This can be done on operations such as grinders, pulverizers, mixers, driers and conveyors. Of course, this can be a tremendous investment and should be part of capital planning as business changes, relocates or expands. Using modern technology to solve such problems is possible. It’s a modern risk management option. Installing proper electricals, however, is not an option for any business faced with hazardous atmospheres. n
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combustible but many metal dusts are considered combustible. This is especially true in facilities where there is magnesium, aluminum, bronze, zinc and iron, among others. The buildup of dust on top of devices or equipment can cause it to run “hot” and ignite the surrounding atmosphere. Such conditions can lead to fire and explosion as well as a secondary explosion of suspended dust. Check out some great explanatory videos on the Chemical Safety Board website http://www.csb.gov/ Class Two equipment must be able to accommodate a “dust blanket.” Dust is obviously created in grinding, abrasive blasting, sifting and screening typical of metal working, but also created in areas where materials are transported. These conditions emphasize the need for efficient dust collection and proper housekeeping practices in addition to electrical engineering controls to prevent deflagration.
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Recommendations for Prevention of Fire and Explosion in Hazardous Locations ü Check credentials of anyone performing electrical work. Don’t rely on experience only. ü If using a PE to assess the conditions assure it is their specialty area. ü Obtain certificates of insurance from all contractors for both workers’ compensation and liability. ü Prevent fire and explosions through design of new or changing operations and surrounding areas. ü Install and maintain suitable NEC Hazardous Location equipment. ü Prevent critical concentrations from occurring through ventilation. ü Eliminate/shield ignition sources in and around Hazardous Locations. ü Ground any moving equipment to eliminate static sparks. ü Install adequate fire suppression systems (fixed and portable).
Helpful Websites OSHA Electrical eTool https://www.osha.gov/dsg/etools/subpartS/subpart_s_etool. html Chemical Safety Board http://www.csb.gov/search/?Keywords=dust NFPA 30 Flammable Liquids Code http://www.nfpa.org/codes-and-standards/all-codes-andstandards/list-of-codes-and-standards?mode=code&code=30 NFPA 70 http://www.nfpa.org/codes-and-standards/all-codes-andstandards/list-of-codes-and-standards?mode=code&code=70
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Dean of Springs
How Do I Grow My Business? By Dan Sebastian
T
he age old question is: “Now that I have a spring business, what do I do with it?” Here are some possible options: • Keep running it the way it is • Find a way to grow it • Sell it off A strong, stable business is a viable option as long as business threats are minimal, product lines are sustainable, customers are satisfied and your financial position is strong. For most in the spring industry these conditions are seldom met, so the choices are either grow or sell. That means, for most of us, growing is what we do to sustain our business. Growth generally comes organically (from within the business) or externally by acquiring a company or a license for unique products or processes. Organic growth is hard work but is at the core of any strong business. It requires you to find new customers by aggressive selling and marketing programs, or developing new products and/or processes that open up new markets. Finding new customers can be time consuming and costly. Developing new products and or processes requires reach and development investments, and can also require additional capital and lots of man hours. The other way to grow quickly is through acquisitions that can add customers, eliminate competitors, and/or add new products or processes.
Organic Growth Although sometimes difficult, organic growth can be the most rewarding. Why? It brings value to the business that investors like, and it is something that drives employees to succeed. Nothing builds morale more than employees being part of something they helped to work on. Some of the traditional activities that can stimulate growth: • New products • New customers • New markets • New technologies • New processes • Aggressive selling and marketing programs • Outstanding customer service (things they are unlikely to get elsewhere)
The most underestimated thing in acquiring a company is the creation of a common culture that brings the two teams together with a common purpose. The new employees can feel like outsiders or second class citizens and the acquiring company’s employees can feel threatened. • World-class quality • Strategic purchasing of materials or services (provides pricing or timeliness) • Geographic relationships (proximity to customer) • Terms and conditions • Inventory management (consigned) In any and all of the methods I’ve described to drive organic growth, one of the greatest challenges is to communicate these new opportunities to your sales force. In most spring companies this can be especially challenging due to the use of manufacturers’ representatives who are not as familiar with your new product offerings as company employees are.  Acquisition Acquiring another company can be a fast way to jumpstart growth, but it can be costly and has inherent risk. You can buy a business to instantly get new customers
Dan Sebastian is a former SMI president and currently serves as a technical consultant to the association. He holds a degree in metallurgical engineering from Lehigh University and his industry career spans more than four decades in various technical and management roles. He may be reached by contacting SMI at 630-495-8588.
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and/or get a larger market share with your customers. It is important to understand (to the extent it is possible) how these new customers are going to accept your new position with them. In a similar fashion, if the acquisition can improve your market share you need to know if customers like the fact that there are less suppliers to compete for their business, or are they going to leverage your increased size to extract price reduction. If the objective of the acquisition is to gain new products, there are other things to consider. Are the processes similar to your current ones or are they significantly different? If the processes are different, who are the key personnel with the knowledge of them and are they going to stay after the acquisition? If they do not stay, how long will it take for your personnel to have a working knowledge? The most underestimated t hing in acquiring a company is the creation of a common culture that brings the two teams together with a common purpose. The new employees can feel like outsiders or second class citizens and the acquiring company’s employees can feel threatened. It is like bringing a new baby home — you have to create an environment where everyone feels safe.
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Failure to establish a common culture can make any acquisition a difficult undertaking. Acquisitions can create significant opportunities for any business. Opportunities for greater operational efficiencies in consolidating operations, getting increased leverage with material suppliers due to higher combined volume, exchanges in processing technology between the companies and exchanges in management “best practices” can make your company much stronger. The cost associated with financing an acquisition can be challenging, but when completed it can and should bring a much stronger company from an economic perspective. Size does matter when you work with your bank and/or your investors.
Summary For most businesses, growth is the key to a strong and healthy future. Organic growth is critical in making up for the constant changes you encounter as a result of the ever present changes in the economy. Acquisitions can also be useful and provide the impetus for a quantum leap in both revenue and the business viability, but with the inherent opportunity also come risks if they are not executed properly. n
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Employee Engagement
Article illustrations based on: ©iStockphoto.com/Weekend Images Inc., IPGGutenbergUKLtd
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By Gary McCoy
I
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suspect that the management team at most SMI member companies instinctively know when they have an engaged employee or not. Right away they can tell that the person cares about the company, will work beyond what is expected and will fiercely defend it against competitors. The converse is also true. Disengaged employees are easy to spot. Companies used to measure employee satisfaction with a survey. Just because your employee satisfaction survey showed a high percentage of satisfied workers, it did not always translate to mean those employees were engaged. Some of these employees may be “satisfied” to punch the clock from 9 to 5, collect their money and go home, but would not qualify as being fully focused and enthused about your company. Much work has gone into useful tools like “360 feedback surveys” that can often provide good data to help improve your degree of employee engagement. There are plenty of companies out there who can help you with this. In this issue of Springs, we present a series of articles to help explore the topic of Employee Engagement. • Author and consultant Mackenzie Kyle completed a written interview for Springs on employee engagement. His thoughts are very helpful in understanding how employee engagement is possible and shatters some myths about the millennials who’ve joined your workforce. Kyle’s book called “The Performance Principle” is reviewed in our Book Corner feature on page 65. • Kendra Thomas is one of the featured speakers at the April 2017 SMI Annual Meeting at Amelia Island, Florida. She gives us a peek at the subject of “Gender Intelligence” in her article on page 30 and how understanding the differences between men and
women can help increase your engagement quotient. • SMI member Danny Bozart presents a simple tool that Central Wire Industries uses to help employees understand the customers who use their products. See page 31. • Author and speaker Mike Campion proposes some ideas to awaken the “walking dead” among your employees on page 32. • Finally, our “Flashback” segment rolls back to an article originally published 20 years ago on “Cultivating Teamwork.” John Murphy argues for a team-based culture where senior management’s role is to “provide overall vision, direction and support, help remove obstacles and get out of
the way!” That still sounds like good advice today. Turn to page 33 to read the full article. George LaRocque says employee engagement is one of several factors that goes into a healthy company culture, not something that you hope for after the fact. “Employee engagement is not an outcome, but one strong supporting pillar to culture and business results.” What LaRocque found is that “perhaps the strongest component of culture that resonates with employees, of all generations, is having purpose and meaning in their work.” Give your employees purpose and meaning and perhaps you’ll be lucky enough to find yourself with an engaged employee workforce. n
Employee Engagement: An Interview with Mackenzie Kyle, author of “The Performance Principle” How would you define employee engagement? We often describe employee engagement in terms of what we might call “emotional elements.” We talk about an engaged employee as one who is happy to come to work, who interacts regularly and collaboratively with his/her co-workers, and has a positive attitude in the workplace. We judge this by observing behaviors that we believe are consistent with this internal state of an employee, and in some cases, we even survey employees to assess this. Unfortunately, we often treat these elements of engagement or employee morale as being somewhat independent from the results that the team is producing. Worse still, we
assume that low employee engagement is the driver of poor results. In my experience, organizations don’t spend a lot of time defining what they mean by engagement, and then tackle engagement as if it is a situation that can be addressed directly, or in fact is the driver of organizational results. Examples of attempts to address engagement directly can be found easily in the everyday work environment, everything from giving everyone ergonomic workstations to employee suggestion boxes to implementing a casual dress code. Many beer fridges and foosball tables have been purchased to improve employee engagement. While these types of things can cause a short-term increase in some of the behaviors
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associated with engagement, they are indicative of the belief that employee engagement is its own separate issue and can be treated as such. An alternative perspective is that employee engagement is actually a lagging indicator of something else, and that it therefore cannot be addressed independently. From that perspective, it is often more helpful to think in terms of alignment as the driver of both organizational results, and of the elements we associate with employee engagement. Organizational alignment can be defined broadly as the situation that exists when four conditions are met: • Individual employee goals and objectives are clearly articulated, and are in alignment with (i.e., support) the team goals and objectives, which are in alignment with the organization’s goals and objectives (commonly referred to as its strategy); note the requirement for these goals to be clearly described at each level. • The results needed to meet individual, team and organization objectives have been clearly defined; • The behaviors or actions required to achieve the results at the individual, team and organizational level have been defined; • The organization’s performance measurement and management system has been established in such a way as to reward the appropriate behaviors at the individual, team and organizational level, while discouraging inappropriate ones. It’s important to note that this is rarely simply about money – people find a variety of things reinforcing or rewarding, although money is usually part of this, it quickly becomes a ‘satisfier’ rather than a motivator. An organization that is in alignment has a clear picture of what rewards are needed to motivate employees. Providing employees
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When you drill down into the underlying environment, you often find that people are actually being rewarded for doing the wrong thing, and that ‘doing the right thing’ actually leads to negative consequences.
with the opportunity to earn the rewards that they value, all while being part of a larger team, tends to lead to behaviors that we would associate with engagement — employees who enjoy coming to work, who participate in the workplace, who respond positively to surveys on how they feel about work. So, what does this drive out in terms of a definition of employee engagement? A practical take on this term would be: a condition that exists when employees clearly understand what results they need to achieve, what behaviors or actions they need to take to get those results, and who value the rewards they are given for taking those actions and getting those results. Does this mean that a foosball table or jeans day Friday are bad things? Of course not. However, without addressing the underlying issue of alignment, superficial changes to the work environment will not address longer-term employee engagement.
What are some practical steps companies can take to improve employee engagement? Take steps to address the issue of alignment. This would include developing a clearly articulated strategic plan, communicating that plan to all team members, working with teams and individual employees to determine how their actions will support the achievement of the strategic plan and, perhaps the greatest challenge, addressing the performance management system. We tend to assume that because employees get a paycheck,
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they will be motivated to do whatever it is we need. Experience shows this is not the case. A biweekly paycheck is frequently a simple satisfier but it is not a motivator. Think about water — if you don’t have enough, the quest to get more is a powerful driver. But once you have enough, getting more becomes less important. Instead, managers need to work with employees to understand what each individual finds reinforcing, and look for ways to provide that reinforcement in conjunction with the actions that are required.
What are some techniques you’ve used to influence and improve employee behavior? The most successful approach has been to analyze the work environment to understand how employees are being rewarded. In most work environ-ments, people are often just expected to ‘do the right thing.’ When you drill down into the underlying environment, you often find that people are actually being rewarded for doing the wrong thing, and that ‘doing the right thing’ actually leads to negative consequences. I’ve run across many interesting examples of this — from sales people who were being rewarded for volume rather than profitability (and driving the company to bankruptcy as a result), to employees who avoid doing a good job because the ‘reward’ for outstanding performance is increasingly difficult work. There are a couple of things to remember here:
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• People do what they’re rewarded for. Expecting someone to do the right thing, while providing negative consequences for it, or while providing rewards for some other behavior has a very consistent outcome. It’s not that we’re bad people, it’s just that we do what we are reinforced to do. The challenge is that managers can often lose sight of how the behavior and reward system is actually working on their team. • Not everyone is reinforced by the same thing. Some people are driven only by monetary rewards. Experience shows that this is a small percentage, but this is still the case for some team members. Many people find information about their progress rewarding. Some people like public praise; some people hate public recognition. An effective manager recognizes that different people are reinforced by different things, and tailors her or his performance management system accordingly. • The best way to understand the reward system is to talk to the individuals. As a manager, you may not be privy to the details of specific behaviors and rewards, and unless you ask, it’s difficult to know for certain what your team members find motivating or punishing (without experimenting, which can be time consuming and costly, not to mention disrespectful to the individual team member.)
Millennials are a growing force in the workplace, what are the best ways to work with them and to handle cross-generational differences? I’ve written several pieces about millennials — here are some thoughts excerpted from some of the articles. Millennials. The very mention of the word can be enough to strike fear into the heart of the most seasoned manager. Entitled. Narcissistic. Unwilling to work hard. Expecting
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their opinion to be valued above others. The ‘Me’ generation. How do you manage someone (or worse still, a team of someone’s) with those characteristics? And it’s not like you can avoid them — they’re everywhere! Current estimates put the number of millennials at about 80 million in the U.S. alone. They’ll make up 75 percent of the workforce by 2030. No wonder the millennial generation is so high on the list when it comes to discussing performance management and motivation in the workplace. Oh, for the good old days when people were willing to work hard, didn’t put themselves first, and we all pulled together for the greater good of the organization… if you’re heading down this line of thought you’re not far from reminiscing about how you used to walk to school every day, barefoot, through the snow, uphill both ways…and suddenly you’re living the Four Yorkshiremen (https:// www.youtube.com/watch?v=Xe1a 1wHxTyo&app=desktop) sketch by Monty Python. But hang on a minute and back up the bus: one generation lamenting the various elements lacking in the next generation? That’s never happened before. Well, except for, like, the last 2,000 generations. It’s not just standard practice; it appears to be the way of us humans. This problem is with a generation of a different name, but the problem is not new. Fifty years ago, we talked in terms of the ‘generation gap’ but gradually we’ve moved on to defining broad characteristics for generations, and pigeonholing all the members of that demographic under that term, as if everyone embodies the characteristics of his or her cohort. Baby boomer. Generation X. Depression era. Generation Z. And, yes, our current challenge: millennials. But here’s the problem with broad characterizations and generalizations: it is wrong a
lot of the time when it comes to application to individuals. Very few people exhibit all of the characteristics of a given stereotype. We know and recognize that this happens, and go out of our way to reject this way of thinking when the stereotype is based on gender or race or ethnicity. And yet at the same time, we devote significant intellect and discussion to doing the same thing based on the year in which an individual was born. Wonderful, so how do we apply this to millennials? Sorting that out requires the recognition of three important principles that apply to working with any individual or group of people: Don’t assume that you know what motivates another person based solely on knowing his or her birthdate. This can be generalized to ‘Don’t assume you know what motivates another human being.’ I know and work with millennials who work harder than some Generation Xers or baby boomers I know, and so do you. I also know millennials who are less hard working than those same Gen Xers. It turns out that human beings are a bit like snowflakes — on the surface of it we look pretty similar, but when you look closely, no two are alike. This is certainly the case when it comes to motivation, and making broad assumptions based on stereotyping is likely to end up with incorrect assumptions, which can lead to failure to achieve in the workplace. What motivates you is not necessarily what motivates others. This applies to millennials, baby boomers or giraffes. Everybody may find different things reinforcing, and different things unpleasant or punishing. And these things may be different from what you find reinforcing, motivating or punishing. This may be the most significant piece, and certainly in my experience this is an element that can drive a wedge between managers and the people they
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work with. We have an unfortunate tendency to assume that the things that drive us (and conversely, the things that we find to be negative or punishing) are the same things that drive everyone. Because this is how we’re motivated, we deem this to be ‘good.’ Without thinking too much about it, we then structure the work environment to provide our team with the things that we find motivating, rather than taking a step back and accepting that this may not be the case. This doesn’t mean that we can’t be aligned to achieve a common goal, but it does mean that different people likely need different reinforcers to get them working toward that common goal. Aligning reinforcers with the common objective is essential, but this does not mean all the reinforcers have to be the same. There are only two ways to find out what motivates another individual: asking and observing. Well, technically a third way would be to guess, but the gist of what I’m saying is that guessing is not a great approach. Although we may feel awkward doing it, there is no Miss-Mannersprescribed law against asking people what motivates them. This is far more likely to provide us with a reliable indicator than guessing. However, the most reliable way to learn what drives people is to observe how they behave. There’s a reason why we have that folk-wisdom expression ‘actions speak louder than words.’ An individual might think he or she understands what drives them, but the most reliable way to determine this is by observing how they behave and interact with their environment. We are often more idealistic about what motivates us than the reality of what does. Finally, we need to take this knowledge and incorporate it into our performance management process, clearly aligning the individual’s rewards with his or her objectives, and with the objectives of the team.
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The process is simple, but it’s not easy, and the biggest barrier I see is the time it takes to do it right. My answer to that objection is straightforward: it’s much more expensive to have unproductive team members, high turnover on your team, and a de-motivated workforce than it is to invest in how you manage performance. Invest the time; reap the rewards, for the organization and for the team.
How can you establish a companywide culture of continuous improvement? First thing to establish is whether this is desirable. Despite what we might say, part of the purpose (some would say ‘value’) of most organizations is to create and maintain a level of stability and consistency. This is in direct conflict with the idea of constant improvement, for the simple reason that any improvement requires change. The first question is to determine whether truly ‘continuous change’ is something that is consistent with what a given organization is attempting to accomplish. Instead of continuous change, most organizations go through what could be described as step-changes — which are more significant changes in what they do or how they operate, but which occur at intervals and are often driven by external forces creating crisis within the organization (and the associated high motivation level to avoid an unpleasant consequence). My experience with most organizations is that when they say ‘continuous improvement’ they mean a minor level of incremental change with a few of their less impactful processes. Examples might include a staff member figuring out how to create an efficiency by processing an invoice with two fewer steps, or a team member who proposes a modification to a standard vacation request form that makes completion simpler. Organizations create significant systems and therefore
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what might best be described as ‘momentum’ around how things are done in order to be stable and predictable, so even what appear to be minor changes can still be difficult to implement. But whether the change is characterized as ‘minor’ or ‘major,’ there are a few things to consider: • The nature of any organization includes resistance to change. This is not a bad thing — the value in organization includes creating stability and predictability (most business models depend on it in order to make money!), and therefore an environment that discourages change. However, this means that, consciously or unconsciously, the performance management system will tend to favor and reward compliance with existing processes, and punish deviations. • People will do what they are rewarded for, and avoid things that bring them negative consequences. • Change therefore requires a change in the alignment of the organization. This means change in everything from the strategic plan down to the actions that individual team members need to take, and a change in the reward or performance management system. • Trying to create a reward system that simultaneously reinforces people to conform, while constantly questioning why they do things the way they do and looking for alternatives, creates an inherent conflict, and is unlikely to have a positive outcome. Therefore, the idea that an organization can have a culture that values continuous change above stability and consistency is not realistic. • Instead, change/improvement, can function more effectively if treated as a separate initiative (often taken on by a different team), something that is outside the day-to-day activities of team
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It’s much more expensive to have unproductive team members, high turnover on your team, and a de-motivated workforce than it is to invest in how you manage performance. Invest the time; reap the rewards, for the organization and for the team. members. This allows us to create a different set of actions, and rewards, specifically tied to change. • At the same time, it is possible to create a process within the existing system that rewards people for identifying opportunities for improvement (and the change that would be required). This creates only minimal disruption to the existing stable system. Once an opportunity is identified, it can be taken on by the (separate) improvement team, to assess, determine what realignment is necessary, and ultimately implement. • In today’s world (and some would argue, in any day’s world) it does not appear possible that an organization can avoid change. Society changes, consumer demand changes, social interaction changes; in short, the environment changes. An organization that does not evolve to integrate and meet the demands of the changing environment will eventually cease to exist. • In order to remain stable (and fulfill one of its main objectives), there is a finite limit on the amount of change an organization can absorb. At some point chaos ensues and the organization ceases to be. This point is different for every organization, but one of
the primary responsibilities of the management team is to determine where this point is, AND to push the organization as close to this point as is required in order to remain relevant in the environment. Failure to do this leads to organizational extinction. Incremental change may not be enough to remain relevant.
Most individuals (employees) are resistant to change. How can you overcome this resistance if your company needs to change course in order to succeed? As noted above, any improvement requires a change (doing the same thing and expecting different results has been described by many people as a definition of insanity.) But not every change is an improvement. So every change represents a risk (it also represents a reward, but we generally find ourselves dealing with the fear of the downside of the risk initially). And what is the risk? As individuals we’re in a pattern of action and reward that we know and understand, and which gives us a level of certainty. As it turns out, most people find certainty to be a very reinforcing thing. Conversely, most people find uncertainty to be a negative thing. There are a variety of reasons why this might be the case, and a detailed exploration doesn’t make sense here, but it can be
reduced to simple (but unfortunately simplistic) terms: certainty versus uncertainty has, at many times in our collective history, represented the difference between life and death. I’m starving; is that plant safe to eat? I’ve come across a super-dry looking plain on my journey; if I cross it, will I find water out there before my canteen is empty? When you start talking about engaging in a new action, one that an individual hasn’t tried before, we introduce uncertainty. The heart of resistance to change is the uncertainty around what results we’ll get when we do something new. What’s the best way to overcome that? Experience with the new actions and the new results. How do you get that before the change has taken place? Education, training, case study work that simulates the real-life situation. And ultimately, plenty of support and encouragement from the managers/ leaders of the organization.
Anything else you would like to add? Unfortunately, the internally reinforcing system and environment that most organizations evolve to around stability means that a major crisis is often required for significant (and unplanned or unexpected) change to occur. Ideally, the management team is continuously assessing the environment, and implementing some change on a regular basis to allow the organization to evolve and remain relevant. This is a very tough task because of our focus on predictability and consistency, two things that don’t mesh well with change. n Mackenzie Kyle is the regional managing partner for MNP, a national consulting and accounting firm and the author of “The Performance Principle: A Practical Guide to Understanding Motivation in the Modern Workplace.”
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Gender Intelligence: A Tool to Improve Workplace Engagement By Kendra Thomas
In a nutshell, Gender Intelligence is about understanding and appreciating the unique ways men and women approach situations and solve problems, how we can leverage those differences to create a more sustainable, collaborative and successful workplace and to value and capitalize on those differences to improve the bottom line.
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ender Intelligence® is the understanding of the naturallyoccurring characteristics that distinguish attitudinal and behavioral differences between men and women. By understanding these differences, we gain a better sense of gender-related tendencies that help explain how men and women think, act, and engage more effectively in the workplace. Let me explain what Gender Intelligence is and what it is not. It’s not simply increasing the number of women in the workplace, nor is it trying to treat everyone the same. In a nutshell, Gender Intelligence is about understanding and appreciating the unique ways men and women approach situations and solve problems, how we can leverage those differences to create a more sustainable, collaborative and successful workplace and to value and capitalize on those differences to improve the bottom line. Employee turnover is a costly endeavor in terms of time, money and productivity. According to a 2015 Bersin by Deloitte study, by 2025 (that’s only eight years away) 75 percent of the global workforce will be comprised of millennials. Twenty five percent of millennials
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report they plan to leave their current employer by 2017 and 65 percent report plans to leave by 2020. The report shows that 60 percent of women millennials feel their employers don’t do enough to encourage diversity in the workplace and that the leadership skills of the diverse employee are not being developed. How can you reduce the exodus of talent from your company? Being gender intelligent is a great place to start. During my presentation at the 2017 SMI annual convention, “Great Minds Think Unalike,” I will outline the benefits of a gender intelligent culture: • Grow in global competiveness • Make better strategic decisions • Secure and retain top talent • Create more relevant products and services that mirror the market In attending this presentation, you will gain access to the content I will present and the opportunity to access to the “Be Gender Intelligent” transformational online learning experience (OLE). The OLE provides a unique and engaging journey that develops leadership competencies and a competitive advantage.
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We believe this online learning experience will help organizations achieve great success through improved inclusion, engagement, retention and performance. Be Gender Intelligent connects people in meaningful ways using deeply impactful, cloud-based learning that’s uniquely engaging. The learning experience is at the core. Available to access at any time on any device, the experience includes: • Expert commentary from Barbara Annis, a thought leader in gender differences and diversity. • Video and audio stories of communication challenges.
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• Missions that send people off to practice, reflect, and share their original insights, building a community’s collective wisdom. Real improvement in an organization’s culture involves learning how to recognize, value and leverage positive changes. Be Gender Intelligent is an engaging, multimodal learning experience that allows you to share the exchange of powerful ideas and techniques with your organization. The experience will illuminate the reasons behind how men and women think and react differently, explain how to overcome genderbased blind spots and provide
hands-on opportunities to practice techniques and develop new skills. I hope this short peek at what I will be presenting will be a strong incentive and an enticement to join us in Florida for SMI’s annual convention. I think we can all agree that a workforce full of engaged employees is a model that we can all embrace and I believe Gender Intelligence is a powerful tool to help make that happen. n Kendra Thomas is vice president and head of global diversity and inclusion for Pearson, the largest learning company in the world. She holds a bachelor’s degree in socio-political communications from Missouri State University and a juris doctorate from Northeastern University School of Law. She is based in Boston.
Key Account Spotlight Helps Central Wire Industries Engage Employees
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t Central Wire Industries, LTD (CWI) we have used a simple tool, “Key Account Spotlight,” to increase employee engagement, ownership, and pride in the products we manufacture. Here’s how it works. Every month our sales department selects a specific customer and writes up a one page descriptive bulletin about who the customer is and what they do. The bulletin includes what product we supply to them, critical components of their process and the product’s end use. This is only shared within the CWI team. We use customer and market knowledge, as well as photos, to be as descriptive as possible. This “Spotlight” is then emailed within the entire CWI organization. This allows employees at all locations to learn more about where our products are going and the impact we make. This builds pride within the entire company.
By Danny Bozart
It is important for CWI to know that all employees understand where our products are being utilized, especially the CWI employees that are "hands on" for the specific product. It has truly made a difference within the plants, and in turn further ensures a premium CWI product being delivered. The “Spotlight” is then posted at various locations throughout each plant. Specific to the manufacturing plant that supplies the key account, managers meet with operators to discuss further how important they are and where the products they make ends up in the world. For example, we have products on the Mars Rover, in submarines and on airplanes. It is important for CWI to know that all employees understand where our products are being utilized, especially the CWI employees that are “hands
on” for the specific product. It has truly made a difference within the plants, and in turn further ensures a premium CWI product being delivered. It is a rather simple tool that shines a “Spotlight” on a key account, helping engage our people to the product, the customer, our company and each other. n
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Transform Walking Dead Employees into Raving Fans…Without Paying More
By Mike Campion
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f you’ve been tasked with hiring, developing, and keeping top quality talent on a budget for any length of time, you know engaged, committed and talented people are crucial. You may even have dreams of talented, honest, hardworking employees ready to give their left kidney for the good of the organization. You imagine them sitting at home wishing the weekend weren’t so long so they can get back to work for your company. Often that dream ends with a Monday morning bucket of ice water to the face as you return to find the tired, the poor and the huddled masses. Your team appears to slog through the office; mindless, uninspired and drained of all energy. There has been no zombie apocalypse, but your entire staff seems plucked from the cast of The Walking Dead. You know that committed, talented, engaged people are the lifeblood of your company. But how on God’s green earth do you find these unicorns and keep them fired up, committed and on point? Here are three keys to do just that:
Key #1: The right people come because of who you are, not what your compensation package looks like. It is so much easier to attract people who share your values than to hire first and “convert” later. Be clear about who you are and what you believe and you will attract the right people. Just as importantly, you will repel the wrong people who end up making your life miserable. Before you can hire based on your core values, you need to define those values and communicate them in word and deed until you and your employees are saying them in your sleep.
If you asked your employees today “What are our core values?,” How many different answers would you get? If that answer is anywhere north of one—keep reading. Here are some fun ways to communicate your core values to your employees, prospects, customers, vendors and the community at large: • Company parties • Your interview process • Email signatures • Business cards • Voicemail/ phone system recordings • Hiring ads • Hiring an airplane to skywrite them over your office every other Thursday… Too much on the last one? Good catch—back to filling your company with amazing employees.
Key #2: Not only do you have to clearly understand your company core values; you must be able to communicate them clearly and consistently. Do your employees come to you with some questions you have answered dozens of times? Does fear of a bad decision hold you back from freeing them to be more independent? Do you want them to figure things out for themselves? Often, employees make what seems to them a small mistake from their perspective, yet you lose your mind. Why is that? Generally, they have violated one or more of your core values. The problem is, they didn’t know it. Your job as the leader is to communicate those values early and often! Next time an employee comes to you with an idea or question—don’t answer it. Ask a question instead:
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• Does this idea fit into our core values? • How can you best reflect our core values based on what you just told me? • Which core value comes to mind first in dealing with this?
Key #3: You can’t just talk the core values talk, you’ve got to live and breathe them. Even when your employees get sick of hearing them! Start consistently asking these questions instead of providing answers. Your staff will become more independent, stop asking the same questions over and over and become better decision makers. Imagine arriving at work tomorrow not to find the walking dead, but to find a community. A special place in the world where your people are raving fans. You offer something they have never had before. More than a paycheck. Community. A sense of belonging. Of purpose. Something special that none of you could have built alone. Remember to clarify your core values and communicate them early and often. n Mike Campion is a celebrated speaker, entrepreneur and author of I’m a Freaking Genius, Why is This Business So Hard? A small business expert, Campion has built several multimillion dollar businesses, the most recent achieving $4.3 million in sales in the first 18 months. As the host of the “Conversations with a Genius” podcast, Campion imparts his business wisdom on his listeners. For more information visit www.MikeCampion.com.
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Cultivating Teamwork By John Murphy
(Editor’s note: In this edition of Flashback we travel back to the Winter 1996 issue of Springs for this insightful look at teamwork and how it relates to current thinking about employee engagement. Let us know what you think.)
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s a peak performance specialist, I appreciate the wisdom and value in training as much as anyone. Clearly, providing people with an opportunity to advance their intellect and skill level is critical to any organization’s ongoing improvement and prosperity. Unfortunately, an enormous amount of money is wasted every year on team-building training because managers don’t realize that cultivating true high-performance teamwork is a natural process — not unlike growing a perennial garden. In other words, the essence of teamwork depends on the roots established beneath the surface and nurtured throughout the year. In a perennial garden, the roots support and sustain the plants, allowing them to be bountiful. There are no quick fixes or shortcuts to this process. You cannot “cram” for it. And training alone will not grow you a healthy team. In fact, it can even make matters worse by raising false expectations and sacrificing management credibility. To complete the analogy, you could find yourself fertilizing weeds.
Locked in the Traditional Paradigm Let’s imagine you are a production manager for a spring manufacturing company and you just returned from a team-building workshop. Let’s also assume that the training was outstanding and the presenter was fabulous. You learned all kinds
of interesting things about yourself and how you can build healthier, more trusting relationships with others. During the next four weeks, you work especially hard applying the concepts and techniques covered in the workshop: You do a better job listening to your employees. You involve more people in decisions. You set some department goals. You resolve conflicts more effectively. You communicate more openly. You solve problems more rationally. You even go so far as to get approval to provide your whole department with four hours of the same teambuilding training you attended. Six months later, you discover that your department of 35 people isn’t experiencing any measurable change in results: Productivity continues to creep along at its current pace. Lead times have not improved. Quality remains the same. Excessive rework and scrap still pose a serious problem. Absenteeism is poor. Machine down time is costing you a fortune. Employee turnover is still too high. People on the front line still don’t see any real opportunity for themselves. There are no teams in place, other than a few groups that meet monthly to discuss broad issues such as safety and housekeeping. And even these groups don’t appear to be getting much done. In fact, the meetings are often postponed and rescheduled because members don’t perceive
them as a priority. As a result, several members of the department are starting to criticize the company for talking the talk but not walking the walk. The training you were once so excited about has accomplished nothing for your department.
Systems and Structure If this sounds familiar, don’t fret. Your situation can be changed. But training alone isn’t going to cut it. You have to get to the root cause of the problem. You have to challenge the underlying assumptions driving your organizational behavior. If these assumptions are not consistent with team principles, you probably have to re-engineer everything beginning with your operating systems and structure. In other words, if you want teamwork, you have to grow it into your culture from the roots up. Aristotle once observed, “We are what we repeatedly do.” Looking to the traditional organizational paradigm, most people in U.S. companies are still working (repeatedly) in non-team based systems and structures. They are subject to individual job descriptions and performance reviews. They are organized and rewarded by independent function, not by interdependent process (which is the relationship between multiple functions). People are classified by title and department, creating huge gaps between one function and the next. There is limited ownership for a process from start to finish.
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A “lob it over the wall” mentality still prevails. People participate in employee-of-the-month contests in which one person wins and everyone else loses. The hierarchy still reigns, with people assuming that the only advancement opportunity they have is to some box on an organizational chart. And with companies flattening out these days, who really knows if that elusive box on the chart will still be there in five years? To effectively change anything, you have to begin at the root level. You have to challenge the fundamental assumptions that drive behavior and outcomes. If you are not working effectively as a team, perhaps it’s because your organization is not designed to work as a team. Perhaps the underlying assumptions driving your organizational structure and systems imply that people cannot be trusted and empowered with certain responsibilities. Yet trust and
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empowerment are critical success factors in any high-performance work environment. Or perhaps the underlying assumptions in your organization suggest that people are incapable of self management, or they are too incompetent to make decisions, or they are too lazy to accept responsibility. Or maybe your organization’s systems and structure assume that people don’t need to know what’s going on in other areas. Or they have no business hiring their co-workers, or visiting customers or benchmarking, or learning new skills in other areas. If this is the case, no amount of training will bring you highperformance teamwork. You have to change your assumptions first. You have to instill team work into the roots of your culture. Only then will you create “we-opic vision,” a sense of responsibility for working together toward common goals. Only then will you foster cross-
35
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functional accountability. Only then will you see a healthy return on your team training investment.
Growing Teams into Your Structure Going back to our production manager, this might mean organizing the department of 35 people into four or five (cross-functional) process teams. Now, rather than joining a department of 35, a new employee joins a smaller team where his presence, commitment and input are clearly visible to his team members. At this point, a team structure is in place, and the production manager can begin helping the team develop systems to promote and reinforce self management, process ownership and teamwork. For example, the team might begin by writing a team job description, setting team goals and priorities, defining team measurements, tracking team results, writing standard operating procedures,
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managing attendance, scheduling breaks and reporting progress. Ultimately, the team can learn to analyze processes, prepare business plans, manage budgets, hire and orient new members, schedule daily production and prepare proposals. They also can implement actions to improve productivity, quality, delivery, safety and morale. Once a team structure is in place and these expectations are clear, training becomes a powerful growth element. It helps the team pull together and synergize.
Pay for Knowledge One team-based training system worth exploring is a voluntary “pay for knowledge” or “employee development” system. This system creates an opportunity for people to advance their knowledge, skills, responsibility and income at their own pace by learning all the jobs on the team. Put another way, it means people can promote themselves without any ties (or constraints) to an organizational chart. They simply advance from one clearly defined level and income range to another (at review time) once they have mastered all the requirements for that level. This promotes personal planning and goal setting, and it builds ongoing learning into the organizational culture. And, unlike many traditional systems, it fosters internal cooperation and team work, not competition. There are no quotas on how many people can qualify for any given level. And to advance to a higher level, you must be willing and able to train others. In other words, everyone becomes both a student and a teacher. Ultimately, the team develops a very strong “bench.” Once an employee masters all the skills within an operations unit, you may want to consider creating additional skill levels or bridges to other units. For example, if Mark has achieved Level IV in operations and he has an interest in becoming a quality engineer or a process engineer, you might offer him the
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opportunity to enter a new learning curve. This presents Mark with a whole new educational challenge and keeps the fire burning. It also helps the organization retain a very competent individual capable of doing multiple things.
The New Organization Chart Once a company has aligned itself into teams, a new organization chart begins to take shape. Looking at it two dimensionally, it consists of several circles all surrounding a nucleus. The nucleus represents the team(s) managing the core (moneymaking) process. In manufacturing, this is the cross-functional team that produces and packages the product that ships to the outside customer(s). A three-dimensional model simply implies that there is more than one nucleus team. All the surrounding circles represent support services. These functions typically include accounting, management, information services, purchasing, engineering, quality assurance, human resources, marketing, sales and senior management. They exist to serve the nucleus team(s) with whatever it takes to win. The goal in applying this model is to give as much responsibility, authority and accountability to the nucleus team(s) as possible. This shifts the paradigm from one where management is responsible for planning, organizing and controlling the core processes to one where the team(s) takes charge. Senior management’s new role in the team-based culture? To provide overall vision, direction and support, help remove obstacles and get out of the way! n
To effectively change anything, you have to begin at the root level. You have to challenge the fundamental assumptions that drive behavior and outcomes. If you are not working effectively as a team, perhaps it’s because your organization is not designed to work as a team.
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Manufacturing Day Participation Increases Among Springmakers
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anufacturing DaySM is an annual national event that brings together thousands of manufacturers to host students, teachers, parents, job seekers and other local community members at open houses designed to showcase modern manufacturing technology and careers. Manufacturing Day 2016 officially took place Oct. 7 with more than a dozen SMI member companies participating (some of the events were held before or after the official day). Here are a few highlights of what took place.
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Ironmonger Spring Company Students f rom Lewis Cass Jr.Sr. High School stepped out of the classroom and onto the factory floor at Ironmonger Spring Company in Walton, Indiana Oct. 7 for Manufacturing Day. This year marked the first time Ironmonger Spring participated. Other area manufacturers and businesses also hosted open houses, including Myers Spring Company in Logansport, Indiana. Myers Spring hosted their second Manufacturing Day event that included 320 Logansport area fifth-grade students. In an article in the Pharos-Tribune in Logansport, JoEllen Ironmonger,
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whose parents founded the business in 1977, said the spring company wanted to show the public and high school students the importance of manufacturing. “Ma nufactu ring exists,” she sa id. “We need employees. We need good, dependable people. It can be a job. It can be a career.” Most of the employees at Ironmonger Spring have been working there for 20 to 30 years and many are approaching retirement, Ironmonger said. She added that the company knows they need younger workers who are skilled and prepared for the demanding job. Ironmonger Spring creates several spring products at its facility on U.S. 35 in Walton, ranging from .007- to .25-inch thick diameter wire. Ironmonger, who’s been working at the company for 39 years and has been sole owner since her parents died, said the business makes springs for companies that make air tools, road construction equipment and water systems. Lewis Cass seniors Garrett Cain and Jerad Morey, who were two of many agriculture and engineering students at the school, had never been to a spring company. They said the machines at Ironmonger Spring interested them because of their specific designs and functions. “It’s nice to get out of the classroom and learn new things and see how things are made,” Cain said. “It’s good to see it from a different standpoint than just on TV.”
Wolverine Coil Spring In Grand Rapids, Michigan, Wolverine Coil Spring (WCS) held their event Oct. 3. U.S. Senator Gary Peters visited the WCS manufacturing plant along with 35 students from Grand Rapids Public Schools’ Innovation High. WCS president Jay Dunwell said the morning began with the senator meeting with business and education leaders in a private session to discuss the talent needs of manufacturers and the efforts taking place in West Michigan and nationally. “The senator then met up with students who were already participating in plant tours, and the event concluded with remarks from the podium and a big group photo,” said Dunwell. Ace Wire Spring & Form Co. Ace Wire Spring & Form Co., Inc. in McKees Rocks, Pennsylvania also participated in Manufacturing Day for the first time Oct. 7, 2016. Ace Wire Spring hosted two separate groups of students for a presentation and tour of the company’s facility. In the morning, the company welcomed a group of Montour High School students and Katelyn Lamm, regional manager for U.S. Senator Pat Toomey’s office. In the afternoon, Ace Wire Spring hosted a group of Robert Morris University students and employees from Catalyst Connection. In a news release the company said, “The hope is that this event helped expand the minds of the students
Manufacturing Day activities at Ace Wire Spring & Form Co.
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Above: Manufacturing Day event at Scandic. Right: Students watch a demonstration at Perfection Spring & Stamping.
that visited Ace Wire Spring, and that they saw the many opportunities for a career in the manufacturing industry.”
Perfection Spring & Stamping Based in the Chicago suburb of Mount Prospect, Illinois, Perfection Spring & Stamping Corp. held its first Manufacturing Day events in November 2016 when they hosted visitors from two Chicago schools. Rachel Kahn says her family-owned business plans to continue inviting other students with the goal of changing the perception of what working in manufacturing is currently like. Kahn said that to grow and keep up with the always changing technology, “we look to educate and employ the youth around us. Manufacturing Day is a great way to showcase to students around the country the rewarding, highly skilled careers available in manufacturing today. Manufacturers across the nation, like us, have been participating as sponsors, hosting open houses, public tours, career workshops and other events.”
Finding skilled workers has become a national epidemic that Perfection Spring & Stamping has found can best be overcome by offering several apprenticeship programs. “Being an apprentice is a great option for students right out of high school (or older), as we provide them with skills to succeed and build a career,” explained Kahn. “We want students to know that they don’t have to go to college to have a great career and make a great living. In fact, they can get paid while they learn through our programs. By opening up shop floors around the country, we are able to show modern manufacturing for what it is—a sleek, technology-driven industry that offers secure, good-paying jobs.”
Scandic Scandic in San Leandro, California held three open houses in the fall of 2016 including a national Manufacturing Day event Oct. 7. They also held separate days for high school students and for Stanford University engineering students. Visitors included city officials and a
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staff member who works for the member of Congress for the area where Scandic is located. “We had the opportunity to demonstrate that manufacturing is thriving, and we gave students and teachers a close look at career possibilities,” said Scandic president Hale Foote. Foote says hosting a Manufacturing Day event is worth the effort. “Holding an open house for Manufacturing Day lets us showcase our technology and lets the community know what we are doing. It opens the eyes of our next generation of workers,” Foote explained. “We learn the names of the high school shop teachers and guidance counselors, and they talk about Scandic in their classes. We now know who to call for recruits. It also makes our city officials a bit friendlier to us, as we know from having undertaken a recent facility expansion.” Foote says showcasing your plant gives your workers a chance to shine so they can demonstrate their expertise to visitors and they receive well-deserved praise. He added, “It’s a great morale booster.” “Hosting a Manufacturing Day event costs nothing and the rewards are great,” Foote concluded. n
We invite other SMI member companies to participate in Manufacturing Day 2017 and encourage those who held events in 2016 to send us your stories. To learn more about Manufacturing Day and to get started planning your 2017 event, visit www. mfgday.com.
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Second Edition of SMI Metal Engineering eXpo is Full Speed Ahead
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he planning process is in full gear for the 2017 SMI Metal Engineering eXpo™, scheduled for Oct. 3-5, 2017 at the Connecticut Convention Center in downtown Hartford. The event is being hosted by SMI for the second time after a successful inaugural show in Charlotte in Oct. 2015. This year’s event is co-hosted by the New England Spring and Metalstamping Association (NESMA). The SMI Trade Show committee, co-chaired by Bill Lathrop, president of Colonial Spring in Bristol, Connecticut, and Daniel Pierre III, president of JN Machinery in East Dundee, Illinois, met Oct. 4, 2016, in Rosemont, Illinois, to review plans. The committee represents springmakers, suppliers and SMI staff. Many committee members belong to both SMI and NESMA. “The central Connecticut region is full of spring, metalforming and wire forming manufacturers, along with many suppliers of wire, machinery and ancillary products,” said SMI president Mike Betts. “We are excited to partner
with NESMA to make this not just a regional show, but an event for the entire worldwide spring industry.” The SMI Metal Engineering eXpo is a three-day event that features a technical symposium for individuals and companies to share their knowledge and expertise on a variety of topics surrounding the design, engineering and production of springs, wireforms and stampings. The session lineup for the technical symposium, scheduled for Wednesday, Oct. 4, and Thursday, Oct. 5, is still under development. The technical symposium was one of the most popular features at the 2015 event. The schedule for both days will allow attendees to attend two separate 50-minute presentations. They can choose two sessions from among six different subject areas or tracks. • Track 1: Business Practices • Track 2: Manufacturing • Track 3: Culture, Leadership and Motivation • Track 4: Technology • Track 5: Business Environment • Track 6: Materials and Testing
New this year is a “Product Theater” on the show floor (located near the SMI booth) for exhibitors to present the latest developments in their product portfolio. “Networking is still one of the primary benefits of being part of the Metal Engineering eXpo,” added Betts. “This is the place to be to rub shoulders with the leaders of our industry.” Networking events will include an opening night reception sponsored by SMI Tuesday, Oct. 3. A special cruise ship event Wednesday, Oct. 4, is being sponsored by NESMA and will take place through Lady Katharine Cruises on the Connecticut River. The ticketed event will be open to everyone. More details, including pricing, is yet to come. Housing registration is scheduled to open Feb. 1, and show registration is scheduled to open March 1 at www. metalengineeringexpo.org. Check the website frequently for the latest information.
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2017 SMI Metal Engineering eXpo Schedule Monday, October 2 2 p.m. – 5 p.m.
Exhibitor Registration Open Convention Center, Lobby
Tuesday, Oct. 3
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9 a.m. - 6:30 p.m.
Registration Open Convention Center, Lobby
3 p.m. - 3:15 p.m.
Ribbon Cutting Floor Grand Opening Convention Center, Exhibit Hall Entrance
3 p.m. - 6:30 p.m.
Exhibit Hall Open Hall A
5 p.m.- 6:30 p.m.
Opening Reception on Exhibit Floor Convention Center
Wednesday, Oct. 4
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7:30 a.m. - 5 p.m.
Registration Open Convention Center, Lobby
8 a.m. - 8:50 a.m.
Technical Symposia Convention Center, Theater Track 1: Business Practices Track 2: Manufacturing Track 3: Culture, Leadership & Motivation Track 4: Technology Track 5: Business Environment Track 6: Materials & Testing
8:50 a.m. - 9 a.m.
Break Convention Center
9 a.m. - 9:50 a.m.
Technical Symposia Convention Center, Theater Track 1: Business Practices Track 2: Manufacturing Track 3: Culture, Leadership & Motivation Track 4: Technology Track 5: Business Environment Track 6: Materials & Testing
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9:50 a.m. - 10:30 a.m. Break Convention Center 10:30 a.m. - 5 p.m. Exhibit Hall Open Hall A 5:30 p.m. - 8:30 p.m. Special Networking Event hosted by NESMA Off-site
Thursday, Oct. 5 8 a.m. - 8:50 a.m.
Technical Symposia Convention Center, Theater Track 1: Business Practices Track 2: Manufacturing Track 3: Culture, Leadership & Motivation Track 4: Technology Track 5: Business Environment Track 6: Materials & Testing
8:50 a.m. - 9 a.m.
Break Convention Center
9 a.m. - 9:50 a.m.
Technical Symposia Convention Center, Theater Track 1: Business Practices Track 2: Manufacturing Track 3: Culture, Leadership & Motivation Track 4: Technology Track 5: Business Environment Track 6: Materials & Testing
9:50 a.m. - 10:30 a.m.
Break Convention Center
10 a.m. - 2:30 p.m.
Exhibit Hall Open Hall A
2:30 p.m.
Meeting Concludes
4 p.m. - 5 p.m.
Trade Show Committee Headquarters Hotel
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Another SpringWorld is in the Books
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T
he spring industry descended upon the Donald E. Stephens Convention Center in Rosemont, Illinois for SpringWorld 2016. Presented by the Chicago Association of Spring Manufacturers, Inc. (CASMI), the latest edition of the every-other-year event was held Oct. 5–7, 2016. Show organizers report that total registered attendance for SpringWorld 2016
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was more than 2,200, with the trade show floor comprised of 103 exhibiting companies occupying 30,900 net square feet of exhibit space. CASMI is currently conducting an exhibitor survey, and while results aren’t final, exhibitors are reporting brisk sales and meaningful contacts with both current and potential customers. Additionally, preliminary results indicate this
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year’s show was successful in meeting or exceeding exhibitor expectations. In addition to the trade show, the event featured several educational sessions presented by exhibiting companies in the education theater on the show floor. An opening reception Oct. 5 was co-sponsored by SMI and CASMI, and an Oktoberfest event was held on the trade show floor Oct. 6.
SpringWorld 2018 will return to the Donald E. Stephens Convention Center in Rosemont, Oct. 3–7, 2018. Preliminary information, including the exhibitor floor plan, contract, and rules and regulations, are available on the CASMI website at www.casmi-springworld.org.
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New Ideas and Innovations Welcome Here!
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Call for Papers 2017 SMI Metal Engineering eXpo The Spring Manufacturers Institute (SMI) invites authors to submit abstracts for the 2017 SMI Metal Engineering eXpo. As the largest North American event for key decision makers in the spring and metal forming industry, the SMI Metal Engineering eXpo is the best place to expose the industry to your new ideas and innovations. It is preferred that papers are submitted in English with sufficient detail included for the fair evaluation of your proposal. Those submitting abstracts should limit their submission to 75 words and indicate which of the following session(s) the presenter would prefer to participate in: • New and upcoming materials or alloys • Automation/robotics • CNC repair and diagnostics • Spring manufacturing setup practices • Tooling materials selection • Stress relieving best practices for various materials • Coatings science • Future manufacturing processes and rapid prototyping
October 3–5, 2017 Connecticut Convention Center, Hartford
Abstract deadline: June 1, 2017 Acceptance notification: August 1, 2017 Manuscript deadline: September 1, 2017
See submission form on the reverse side. Spring Manufacturers Institute (SMI) 2001 Midwest Road, Suite 106 Oak Brook, Illinois 60523-1335 Phone 630-495-8588 Fax 630-495-8595 www.smihq.org
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About SMI Metal Engineering Expo 2017 The eXpo is designed to meet the needs of and advance the industry of springmaking and wireforming. The offerings are meant to provide information and learning opportunities to industry professionals, suppliers, customers, floor managers and machinery operators. The gathering offers a full spectrum of information on the latest business, technology and market trends and developments in the global springmaking and wireforming industry. Focused on the science of all facets of this industry from design to manufacturing, the eXpo brings the latest technology and innovations to improve product quality, productivity and profitability. The eXpo and symposium also provides an excellent forum for expert discussions, continuing education, networking opportunities and more.
Abstract Submission
In order for SMI’s Trade Show Committee to fairly assess the scope and content of your proposed technical article please submit a 75 word abstract.
Papers
Accepted speakers for the SMI Metal Engineering eXpo will receive an Author’s Guide with details about the proper presentation of your manuscript and presentation.
Registration Form Check your area of interest: n New and upcoming materials or alloys
Contact Author (designate only one)
n Automation/robotics
Company (affiliations for each author)
n CNC repair and diagnostics
Address
n Spring manufacturing setup practices n Tooling materials selection n Stress relieving best practices for various materials
City, State, Postal Code
Country
n Coatings science
Telephone (include country and area code) Fax (include country and area code)
n Future manufacturing processes and rapid prototyping
Abstract (75-word maximum)
Please type your abstract in English. If you need additional space, please use a separate page.
Please submit your completed form to: 48 / SPRINGS / Winter 2017
Lynne Carr, Executive Director, Spring Manufacturers Institute, 2001 Midwest Road, Suite 106, Oak Brook, Illinois 60523-1335 or via email lynne@smihq.org.
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The SMI Trade Show Committee reserves the right to screen all abstracts and reject those abstracts deemed unsuitable or inappropriate for presentation or publication. Everyone who submits an abstract will be notified whether the abstract has been accepted.
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Author(s)
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Forecast 2017
Rising Employment, Confident Consumers Drive Economy By Phillip M. Perry ©iStockphoto.com/ferrantraite
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or any business looking to enjoy a more profitable 2017, the economic stars are shifting into happy alignment. Major drivers of the economy—such as capital investment and housing construction—are expected to continue their modest but steady growth. And consumers should spend more money over the coming 12 months, thanks to increases in employment and wages. “The economy should continue to strengthen in 2017,” says Kathryn Asher, associate economist in the Research Division of Moody’s Analytics, West Chester, Pennsylvania. “The job market is posting impressive gains, vehicle sales have never been stronger, home sales and house prices have largely recovered from the bust, and the stock market is hitting new highs.” The numbers tell the tale. Over the next 12 months economists expect a 2.9 percent increase in the gross domestic product (GDP), or the total spending on goods and services by consumers and businesses. That’s above the American economy’s historic norm of 2.5 percent. It’s also a healthy increase from the 1.6 percent growth expected when 2016 numbers are finally tallied, and the 2.6 percent growth of 2015. (The lower 2016 GDP rate resulted from two unanticipated forces: a larger than expected inventory correction, and a slide in energy-related investment).
Growing Employment A healthy economy means higher employment. “The labor market expansion is in its seventh year, the longest
uninterrupted period of job gains in recent history,” says Asher. That expansion is expected to continue, with unemployment decreasing to about 4.6 percent by the end of 2017, down from the 4.9 percent recorded in late 2016. (Many economists believe an economy is at “full employment” when the unemployment level dips to 4.7 percent). Thanks to the improved employment picture, the nation is finally starting to see signs of a wage acceleration that can only fuel additional consumer spending. “A number of large companies, such as Wal-Mart, have announced increases in base pay,” says Scott Hoyt, senior director of consumer economics for Moody’s Analytics. “That suggests tighter labor markets and issues in obtaining sufficient workers. And that bodes well for wage growth.” Average hourly earnings are expected to grow by 3 percent in 2017, up from the 2.6 percent increase of 2016, which was itself a healthy rise from the 2.3 percent growth of the previous year.
Holding Steady Housing, a critical economic driver, is expected to continue to expand through 2017, albeit at a more moderate pace. Moody’s forecasts a 3.5 percent increase in housing starts in 2017, a de-escalation from the 9.7 percent of 2016, a pace which was itself slower than the previous year’s rate of 10.7 percent. The inventory of available homes remains low as consumers continue to snap up the best deals. At the same time, constraints on mortgage credit availability are
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relaxing. “Lenders are increasingly comfortable extending credit to borrowers with lower scores and smaller down payments,” says Asher. “This is a result of the solid job market and consistently rising house prices, which are closing in on record highs nationwide.” Prices of single-family median homes are expected to rise some 3.8 percent in 2017, a slower pace than the 5 percent rise in 2016 and the 6.9 percent increase of the previous year. Additionally, federal agencies have recently clarified their regulations, so lenders have felt more comfortable extending credit. “Household formation is building and that benefits retailers,” says Walter Simson, principal of Chatham, New Jersey-based Ventor Consulting. “People with new homes need ‘new everything.’” The de-escalation of housing starts is caused not by a decline in demand but by limitations of supply. “Residential construction has leveled off over the past year amid reports of skilled worker shortages,” says Asher. “There are other supply constraints, including buildable lots and credit access.”
Forward, But Slowly Thanks to the gradually improving economy, businesses are becoming more confident. “Business people have started to engage in longer term strategic planning,” says Simson. “This is a major change since the years following the Great
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Recession when companies were too depressed to even schedule meetings to plan for the future.” Manufacturers in particular are looking toward 2017 more favorably after coming off a fairly modest year. “Our members are starting to see an increase in sales and are in the process of building inventories,” says Tom Palisin, executive director of The Manufacturers’ Association, a York, Pennsylvania-based regional employers’ organization with more than 370 member companies. Despite the better boardroom feelings, business investment, a key driver for the economy, is nothing to write home about. Many businesses burned by the Great Recession refrain from taking on too much risk. “Businesses are expanding steadily rather than aggressively, with an awareness that things could go bad again,” says Simson. “In many cases they are just playing catch up for those investments they had deferred in prior years.” Moody’s Analytics concurs that business investment remains a source of weakness, weighing heavily on overall growth. The reason? A profit picture that is darker than anticipated. “Corporate profits have had a poor run recently because of lower oil prices and appreciation of the U.S. dollar,” says Asher. Other factors include regulatory changes in OSHA and overtime pay, and economic turmoil in Europe. Corporate profits fell 3 percent in 2015 and are forecast to drop another 3.5 percent when 2016 numbers are finally tallied.
Labor Costs Margins for larger employers should come under additional pressure as a tighter job market increases wages. “One of the biggest concerns remains the relative scarcity of skilled workers,” says Palisin. “About 10,000 baby boomers a day are leaving the workforce. The pressure is increasing to replace those individuals, but the pipeline is very thin. That, in turn, impacts growth prospects, since companies are afraid they will not have the available talent for an upsurge in orders.” Wage pressure is further increased by the ongoing trend toward reshoring, where companies bringing work back from offshore to the U.S. seek additional domestic workers. “For companies serving the North American market, reshoring can make a lot of sense,” says Palisin. “The goal is to improve quality by keeping production close to the R&D and engineering locations. Reshoring is also stimulated by a desire to reduce shipping costs, and protect intellectual property. Too, increasing labor costs in China have made offshoring less attractive.” Manufacturers also enjoy quicker delivery time with domestic production, says Simson. “Companies would rather have a four-to-six-week delivery of an item made here than a three-month delivery of something made overseas, even though the price might be lower.” To help solve the labor shortage problem, many companies are more aggressively pursuing internal training, launching apprenticeship programs to grow from
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Over the next 12 months economists expect a 2.9 percent increase in the gross domestic product (GDP), or the total spending on goods and services by consumers and businesses. That’s above the American economy’s historic norm of 2.5 percent. It’s also a healthy increase from the 1.6 percent growth expected when 2016 numbers are finally tallied, and the 2.6 percent growth of 2015. the inside. But competition for the remaining workers remains a key driver of wage growth. “Manufacturers are having a hard time keeping this year’s worker with last year’s wages,” says Simson. “Many are going for higher quality workers, lower turnover and slightly higher wages.” Rising labor costs, of course, sharpen the already keen desire to get the most benefit for each labor dollar invested. The need to maximize productivity has gained additional urgency with the recent changes in federal overtime law. “Increasing costs due to the recent reclassification of exempt workers has caused many employers to take a hard look at the productivity of individual employees,” says Palisin. “If the return is not there, then employers are reducing their workforces.” For all the above reasons, labor costs will likely continue to pressure margins over the coming 12 months. “Corporate profit growth will remain modest in 2017 as we look for a 1.4 percent gain,” says Asher.
Retailers Benefit The improved economy should fuel more sales for retailers. “Our view is that 2017 looks better than 2016 for retail sales,” says Hoyt. Core retail sales are expected to increase by 5.4 percent, up from the mediocre 4.2 percent increase expected for 2016 when figures are finally tallied. (Core retail sales exclude volatile revenues from auto sales and gas stations.) The healthy employment and housing sectors contribute to generally positive feelings at large. “Consumer confidence has remained remarkably stable over the last year and a half,” says Hoyt. That’s good for retailers, because confident consumers tend to be aggressive shoppers. And when they want to open their wallets wider, banks are cooperating. “An ongoing support for retailers is the increased availability of credit,” says Hoyt. “We are seeing an acceleration of credit card balance growth, and that that is a positive sign.” Retail results for 2016 were on the weak side of historic norms and were pretty much flat with 2015. Hoyt attributes the disappointing performance to deflationary pressures.
“All indices of retail prices, not just energy, showed an unusual lack of pricing power in 2016,” he says. “We did not anticipate that a year ago.” When deflation is factored out of the 2016 results, says Hoyt, the year’s retail sales increase would be nearly a percentage point higher. And the deflation-adjusted increase for 2017 is expected to compare favorably with periods of healthy retail activity, such as the decade of the 1990s and the years just before the Great Recession.
No Recession What are the chances of a recession kicking in over the next 12 months? One can easily spot troubling signs, such as the pressures on corporate profitability described above. Another is the de-escalation of employment growth. “Job growth slowed in 2016 to an average pace of 182,000 per month, compared with 240,000 in 2014 and 2015,” says Asher. That moderation is expected to continue: “We expect the labor market recovery to persist with monthly gains holding below 200,000 on average over the next year, supported by a strengthening housing market and broad-based service growth.” None of these factors, however, is expected to tip the nation into recession. Moody’s expects business investment to cease being a drag on growth over the year ahead as unanticipated excess inventories get back in line. “In addition, consumer spending will turn more supportive to investment in the next few quarters,” says Asher. “Stronger consumer spending bodes well for industrial production, and as capacity utilization increases, so too will the pressure on businesses to invest.” Finally, the employment picture remains positive. “The moderation in job growth should not be alarming,” says Asher. “It is natural for this to occur as an expansion ages and the economy rapidly approaches full employment.” Economists do not expect the economy to soften in the foreseeable future. “While job growth will slow, we don’t expect the economy to fall into a recession soon,” says Asher. “Odds are that the current expansion, which is already one of the longest, has a way to run.” n
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Let the Sunshine In By Gary McCoy
D
riving up to the 20,000 square foot manufacturing plant of D.R. Templeman in Plainville, Connecticut, there’s no visible trace that 360 solar panels are perched atop the building’s rooftop. “The panels sit flat on the roof and they’re back far enough from the edge that you don’t see them from the street,” explained Richard Williams, president of D.R. Templeman of the company’s new solar project. “The only thing you can see is the electrical conduit that comes down the side of the building.” The company announced the installation of its 111-kilowatt (kW) solar photovoltaic (PV) system in August 2015. Williams says the installation process lasted longer than expected. “Installation usually takes six to eight weeks, but in our case it took more than four months. It didn’t go as smoothly as expected, but that seems to be typical of these kinds of projects.” Williams said the installation process only had a minimal impact on the SMI-member company that manufactures precision springs and wireforms to a broad market that includes medical devices, electronics, inspection instruments, alternative energy devices, electromagnetic controls, appliances, hardware, locks, hand and power tools, consumer products, packaging, fire protection equipment, jewelry, motors, pumps, valves and more. The company received approval to operate its solar system Nov. 10, 2015.
The Sun’s Business Impact On an annual basis the system, installed by Standard Solar, Inc., is designed to produce 127,000 kW-hours of power per year, covering 100 percent of D.R. Templeman’s manufacturing facility needs. According to Standard Solar, the D.R. Templeman solar system offsets nearly 90 metric tons of carbon dioxide annually which is equal to the amount of CO2 emissions sequestered each year by a 70 acre U.S. forest. Williams said the system is designed to generate, over a 12-month period, all the electricity the company uses. At the time Williams was interviewed for this article, the company was on track to exceed its annual generating capacity. The solar panel project at D.R. Templeman is being funded through an operating lease. This type of financing is designed to make the acquisition of solar affordable by combining tax efficiency with the Connecticut Zero Emissions Renewable Energy Credit Program (ZREC). The Connecticut ZREC program provides utility customers who generate their own power using zero emissions renewable processes, such as solar photovoltaics, with production based “Between the tax credits and the ZRECs income payments for 15 years, in addition to their we receive by selling the ZRECs to the utility avoided electric cost savings. The genesis of the project all started for and the savings from not buying electricity D.R. Templeman through a salesman from from Eversource, the project became cash flow a different solar company who approached them about installing a solar energy system. positive for us from Day One.”
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“He educated us on the incentives that were out there for going solar,” explained Williams, “part of it being tax credits and the bigger part being that the utility company has a mandate to generate a certain amount of electricity by renewable resources. Part of the way they meet the criteria is by purchasing our renewable energy credits for the power that we generate with solar.”
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Williams said D.R. Templeman has a 15-year contract with their local utility, Eversource, where the company sells to Eversource the credits they receive through ZRECs. “Between the tax credits and the ZRECs income we receive by selling the ZRECs to the utility and the savings from not buying electricity from Eversource, the project became cash flow positive for us from Day One,” said Williams.
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“
“It’s nice to be able to view the data collection unit built in to the system through the internet and see how much electricity we’ve generated since we started.”
Williams said the lease option was more advantageous because the banks could make better use of the tax credits and depreciation than D.R. Templeman could as a company. “In other words, they could write it off quickly and they were willing to reduce the lease payments accordingly,” Williams elaborated. With the D.R. Templeman project there is no way for the company to store the energy they generate. “So the way it works is when we’re generating significant energy on a bright, sunny day, we’re pumping excess energy onto the grid and banking credits with Eversource for when we’re not generating so much during the winter months.” Williams said in March each year they settle up with the utility on any excess energy the company has
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generated. “They pay us at a wholesale rate, so it’s not a lot of money. The idea is to size the system so that it matches our usage, so there isn’t a lot of extra energy generated or there isn’t a lot of shortfall that we have to pay.” Williams is hopeful that someday technology improves to the point where it would make sense for the company to install a battery storage system and go off the grid altogether. He admits, “that we’re not at that point yet.” Before installing the solar generation system, D.R. Templeman was paying a “couple of thousand dollars a month in electricity costs.” The solar generation system helps D.R. Templeman offset the generation portion of their utility bill, but the company still has to pay the distribution portion of the bill. “When we’re drawing from the grid, we’re paying distribution charges,” explained Williams. “Since most of the distribution charges in Connecticut are associated with peak demand, not actual usage, we’re not really offsetting that portion of the bill, which is half of the cost.” Williams hopes there is a day when Connecticut’s electricity rate structure is adjusted so companies who choose solar tangibly benefit. “Right now we’re seeing the utility, whose revenues are reduced by those that go solar, change the rate structure to shift it over to be almost 100-percent based on peak demand, not on kilowatt hours used, which is somewhat affecting our payback.” Williams is uncertain at this point whether state regulators will step in and say to the utility, “Hey, you guys are saying you support renewable resources and yet your rate structure does exactly the opposite.”
Going Green “We’re doing things that in the long run help the environment and doing them in a way that generates some income,” said Williams. He said the “green project” has been a positive for employees, vendors and customers, though Williams admits that so far the company has not actively promoted its green advantage in marketing to customers. In addition to Williams, his brothers, Arthur and David, also work in the business. His older brother, Arthur,
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is plant manager and his younger brother, David, is the top setup individual in the coiling department. Their father, the late Eugene Williams, was hired by the original owners, Dave Templeman and his son, Bob, shortly after they founded the company in 1938. “My dad worked his way up through the company and eventually became part owner in 1976 when he purchased a one-third ownership share from Dave Templeman.” Williams said his family purchased the remaining ownership of the company from Bob Templeman in 1986 and “it has been a Williams family enterprise ever since, while maintaining the Templeman name.”
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The company currently has 15 employees. Of the solar project, Williams said there were a few “bumps in the road” that he categorizes as minor. “All in all, things are working the way they were projected with the solar project,” said Williams with pride of the success of the project. “It’s nice to be able to view the data collection unit built in to the system through the internet and see how much electricity we’ve generated since we started.” Williams said he would recommend this project to other SMI-member companies, where it makes sense in their states, and is willing to talk to others about D.R. Templeman’s experience. n
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A Lobby Show Piece By Tim Morris
Before
AFTER
A
n old, no longer used Torrington W100 coiler built in 1952 was headed to the scrap pile at James Spring & Wire Co. After staring at it for a while and thinking, I decided: “Why not make it a show piece for our lobby?” I asked my toolmakers to move it into the tool room and dismantle the entire machine. I joined in the fun of cleaning, polishing all the parts and painting the old machine. Finally, after approximately three months, it was finished and moved to our lobby. Although no power is connected, the machine remains in working order. When you turn the hand wheel all the internal mechanisms function. We receive a lot of favorable comments from visitors who enter our lobby. n Tim Morris retired as president of James Spring & Wire Co. September 30, 2016. He remains a part of company as a board member and shareholder. Morris said, “I’d like to say how much I enjoyed being part of SMI and the spring industry for over 20 years.”
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Springmaker Spotlight
Bohne Spring Industries in Toronto Celebrates 125 Years By Gary McCoy, Managing Editor
N
ot many companies survive several generations of ownership, but Bohne Spring Industries Limited has been in business in Toronto, Canada for more than 125 years. Founded by William Bohne in 1891, the company was originally known as W. Bohne & Company Limited and started out as a manufacturer of piano parts for Canadian piano producers. As time went on, the company made piano bass strings and was involved in the jobbing of piano wire and other piano parts. Like most companies that have endured for so long, challenging times necessitated a shift in focus to survive. For Bohne Springs it was during World War II that the piano industry became depressed. The principals of the company appealed to the federal government in Ottawa for assistance. At the suggestion of the Canadian Defence Production Department, the company started producing springs in 1943.
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While the spring business boomed during the ‘50s and early ‘60s, the piano parts division continued to be out of tune with the market. Ownership made the decision to discontinue that part of the business and by early 1965 the company changed to its current name, Bohne Spring Industries Limited, matching the product with the name.
Family Ownership Continues The Wharin family has been associated with Bohne Spring Industries for more than 75 years. Herbert Wharin, the great-grandfather of the present, third-generation owners, Chris and Jeff Wharin, started working at Bohne Spring in the ‘30s. Herbert’s son, Douglas (Chris and Jeff’s grandfather), joined the business in the ‘40s. Chris and Jeff’s father, Donald Wharin, started working at Bohne Spring in the ‘50s. The Bohne’s owned the company until the ‘60s, when Douglas and Donald purchased the business. Chris and Jeff Wharin joined the business in 1979 and had the privilege of working alongside their father and grandfather until 1985 when their grandfather Douglas retired at 85. Donald Wharin continued to work with his sons until his retirement in 1993. When a company photo was recently taken to celebrate the 125th anniversary of Bohne Springs, Donald Wharin is pictured in the center among the employees. Both Chris and Jeff Wharin have early memories of working in the family business during their teenage years. They helped out in the shipping and packaging areas.
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A younger brother, John Wharin, is the company's purchasing manager. Their brother, Jim, and sister Jane are not involved in the business. Between Chris and Jeff Wharin they have seven children, and it remains to be seen if any fourth-generation members will join Bohne Springs down the road. While the culture of society has changed over the past 125 years, Chris Wharin says Bohne Springs continues to carry on a legacy of “outstanding service in meeting the requirements of our customers.” Employee longevity is a hallmark of Bohne Springs in a country with no fixed retirement age. In fact, a significant number of the company’s workforce has logged 30 plus years of service, with very little turnover. Bohne Springs works within a variety of industries including automotive, telecommunications, aircraft and consumer goods. In addition to producing highly engineered mechanical springs for more than 70 years, the company also manufactures wireforms and four-slide parts.
Canadian Heritage Bohne Springs is a proud Canadian company that competes on the worldwide stage. Both Wharin brothers acknowledge the growth of global sourcing as a factor in making it more difficult to compete. Once at a high watermark of over 100 employees, Bohne Spring currently has a dedicated workforce of 48. Chris Wharin says the introduction of technology such as servo motors and
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Employee longevity is a hallmark of Bohne Springs in a country with no fixed retirement age. In fact, a significant number of the company’s workforce has logged 30 plus years of service, with very little turnover.
computers were contributing factors toward the reduction in the workforce as well as buyers purchasing product offshore. “We’ve seen a trend among purchasing agents to try and commoditize our business,” said Jeff Wharin. “We are being measured against China, India and elsewhere; countries where companies don’t have to cover the costs of all the specifications and standards we must follow. These factors make it difficult to be competitive.” He added, “Our margins are constantly being squeezed. It really is our greatest challenge.” While their main customer base continues to be Canadian companies, Bohne Springs does export products to more than five countries. “We continue to seek business beyond our borders,” said Chris Wharin. “We’ve invested in new technology to help us be competitive and to help us go after new business.” Bohne Springs is a TS16949/ISO9001 registered company.
Growth and Expansion The history of Bohne Springs has always involved the word “growth.” The original location of Bohne Springs was a small rented establishment on King Street in Toronto. When the company moved into the spring market in the ‘40s, a larger manufacturing facility was purchased in 1945. The ground floor space of the 7,200 square foot building was completed and occupied by the company in 1946. With a steady increase in volume, a second story was added to the building and completed in 1951 to double the building’s square footage. Further expansion was experienced in 1969 when another 14,000 squa re feet of manufacturing a rea was added, thus enabling Bohne Springs to add more equipment to increase efficiencies and capacity.
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“We would like to see the Bohne Spring name and brand continue successfully, it would be great if the business carried on for another 125 years,” said both brothers in a joint statement. “All of our employees have a sense of history and pride knowing that we work for the oldest spring company in Canada.”
Growth continued through the ‘70s and into the ‘80s until the plant was at full capacity and it became apparent additional space was again required. In 1984 the company purchased a newer, larger location with 44,000 square feet of space. The plant at its current location on 60 Coronet Street in Toronto was acquired, renovated to suit the company’s needs and occupied in July 1985. In 1988, Bohne Spring Industries Limited purchased Automated Spring Industries Inc. and kept this business as a separate entity until 1993, when the two operations were
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combined into the Coronet location and have operated as Bohne Spring Industries Limited ever since. In 2007, Bohne Spring acquired Hamond Industries Limited, a company specializing in vertislide formed stampings. “Additionally, we amalgamated this business into the Coronet location,” explained Chris Wharin. In 2009 Bohne Spring Industries Limited acquired the assets of OPUS Heat Treating, a company specializing in the hardening and tempering of spring steels using the austempering process. “This acquisition complimented our expanded vertislide and fourslide operations, while adding new clientele,” said Chris Wharin. The Wharin brothers see more growth in the company’s future. “We would like to see the Bohne Spring name and brand continue successfully, it would be great if the business carried on for another 125 years,” said both brothers in a joint statement. “All of our employees have a sense of history and pride knowing that we work for the oldest spring company in Canada.”
Recognizing the Anniversary Spea k ing of histor y a nd pride, Boh ne Springs celebrated its 125th anniversary on Sept. 30, 2016, with an employee recognition luncheon. Each employee received a commemorative jacket. Another special event took place Nov. 26, 2016, when the company hosted a night at Woodbine Racetrack in Toronto, featuring a dinner for all employees and their significant others. Bohne Spring has been a proud member and supporter of SMI since its inception. Three generations of Wharins have been active as directors of SMI, including Jeff and Chris, who currently split a seat on the board. The owners of Bohne Spring have attended many SMI conventions over the years. Jeff and Chris Wharin both remember attending conventions with their parents when they were youngsters. Congratulations on 125 years in business! n
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The Global Leader in Wire Announcing the opening of a new wire production facility in San Jose Iturbide, Guanajuato, in the heart of the automotive area of Mexico. This expansion continues the SG focus of increasing our global footprint with local production close to our customers to offer greater flexibility and shorter lead times.
Initially this 12,000 sq meter facility will have the capacity to produce 3600 MT, and expand to more than 12,000 MT at full production levels. The prime output will be oil tempered valve quality wire for the high demands of the engine, clutch, and transmission springs industry, but it will also produce high tensile OT wire for other spring applications. Construction of this built-to-suit facility will commence in Q2 of 2016 and production will start in Q1 2017. With the completion of this plant in Mexico, SG will have six wire producing facilities around the world: Garphyttan Sweden, South Bend USA, Suzhou China, Leeds England (KTS), San Jose Iturbide Mexico, and the Suzuki Metals plant in Narashino, Japan.
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4404 Nimtz Parkway • South Bend, IN 46628 (574) 232-8800 • Fax (574) 232-2565 • suzuki-garphyttan.com SPRINGS / Winter 2017 / 63
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Book Corner ©iStockphoto.com/kertlis
The Performance Principle
I
n this issue of Springs, we are focused on the topic of “Employee Engagement.” At its root, employee engagement it is all about having employees who believe they have a stake and influence in their company’s longterm viability and profitability. “The Performance Principle: A Practical Guide to Understanding Motivation in the Modern Workplace” by Mackenzie Kyle takes a different approach to the topic (see the interview with Kyle on employee engagement on page 25). Instead of a straightforward nonfiction narrative with lots of anecdotes, Kyle instead uses a fictional story to convey his ideas. I must confess that most of the books I enjoy reading are nonfiction, so I approached this book with some bias. Getting past that, I found the book enjoyable and easy to read. The protagonist of the book is Will Campbell, a newly promoted executive in charge of the Hyler manufacturing facility owned by Mantec that is highly underperforming. As you might guess, Campbell is responsible for turning around the fortunes of Hyler, while working with a group of disgruntled, unmotivated employees. Basically, Campbell inherits a bad union situation, a complicated performance management system and a sales team that has been lowering the price of the company’s products to improve volume while losing the company money. Over the course of time, Campbell rejuvenates Hyler and puts it on the path toward profitability by implementing the valuable business strategies he’s used over the years, along with sage advice from Martha, the grandmother of his wife, Jenny. Martha is 102 and is quite lively in providing Will with ideas about change and improvement. She is the one who coins the term The Performance Principle. When you look at the cover of the book there is an illustration of a frog and a scorpion. The image makes no sense
until you read the book, where the frog and scorpion are used as a parable to illustrate how workers within a company can work at cross-purposes and ultimately destroy each other and the company in the process. He also uses the “whack-a-mole” game as an illustration of how companies can wander for years, putting out the latest fire without stepping back to see the fundamental root causes. One of the underlying tenets of The Performance Principle is not to look at what people think, but instead on what they do. Kyle provides ideas for understanding why people do what they do and ways to influence employee behavior that will ultimately lead to increased profitability. Part of achieving different behaviors is to align workers with achievable goals and to understand that money isn’t always the prime motivator. Some of what Kyle says reminds me of Edgar Papke, who addressed a recent SMI annual meeting to explain his book, “True Alignment.” Papke looks at true alignment through the lens that companies live or die based on their ability to communicate and deliver on the promise their brand makes to its customers. Kyle instead looks more at the employee side of alignment and how it can make or break a company’s ability to succeed. The Performance Principle looks at the importance of providing employees with direct information for immediate feedback. In fact, the fictional Hyler implements a “scoreboard of basic production information” so employees understand how their actions impact the company’s bottom line. I have visited several SMI companies, some of whom use the “open book management” philosophy, where I’ve witnessed a scoreboard or scorecard type of information system being used to great success in achieving buy-in from employees. Some of the snarky, sarcastic banter among employees, and between Martha
and Will in the fictional dialogue, felt a bit overdone to me. After getting past that editor’s quirk, I enjoyed the book and its profound yet simple message. As a youth soccer coach, I particularly enjoyed how Kyle compared business to a sport. “Be sure people know the rules, their roles, the goals and how it’s all measured.” The takeaway: When everyone understands how they fit into the team or at their place of business, alignment takes place and the opportunity to succeed is not guaranteed but greatly improved. n Reviewed by Gary McCoy, managing editor.
Have a favorite business book you would like to tell us about or review? Send your suggestions to Springs managing editor Gary McCoy at gmccoy@fairwaycommunications.com.
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Global CTE News Highlights
Pictured (l-to- r): Phillip Anthony of DP Engineering, Kinana Youssef of Kensa Heat Pumps, Michael Gibbs of European Springs & Pressings Ltd, Ella Tresidder of DM Orthotics and James Standley of Kensa Heat Pumps who are all featured in the brochure.
European Manufacturing Group Looks for Engineers
C
ornwall Manufacturers Group has launched a new brochure aimed at the county’s young student population, inviting them to engineer their career. Located in Cornwall, U.K., the group includes European Springs & Pressings, Ltd. Launched at a recent careers show and distributed across the county, the glossy guide showcases apprentices, managers and managing directors from across the Duchy (county of Cornwall) that have made the move into manufacturing. The engineering industry, famously known for priding itself on “changing the world,” pays a 30 percent higher than average salary for the area and the brochure highlights other rewards in this exciting sector. Ken Martin, secretary of the Cornwall Manufacturers Group says: “The U.K. is the ninth largest manufacturer in the world. Cornwall’s 1,100 manufacturers contribute just under £800 million per annum to the local economy and employs over 16,000 people. The industry is growing, is diverse, offers something for everyone and is enormously valuable to the growth of the county and to those who are part of the manufacturing scene.” Martin added, “We wanted a brochure that highlights all of this that recognizes Cornwall’s incredible industrial talent, and that attracted a new generation to consider
engineering as a rewarding career (Editor’s note: Normally path. With hundreds of brochures this section looks at efforts in the U.S. to attract new flying off the stand at the careers talent to the spring industry. fair, we hope it has opened the This time we look across to eyes of Cornwall’s students to the Europe to see what one enormous opportunities available manufacturing group is in the county.” doing to attract more Representatives from some of engineers.) the county’s leading manufacturers including Bott, Pall Corporation, Watson-Marlow and Polymermedics were on hand at the careers fair to offer guidance and advice. Interactive exhibits ranging from filtration testing to catapult making sought to inspire young attendees to take their first step on the manufacturing career ladder. The Cornwall Manufacturers Group is now visiting schools and colleges across the county, distributing the guide and advising on apprenticeship opportunities. The project is funded by Futureworks through the Manufacturing Schools Links project. The Cornwall Manufacturers Group consists of over 40 manufacturing companies in Cornwall that employ more than 3,550 people. For more information or a copy of the brochure, please visit www.cmgroup.org.uk n SPRINGS / Winter 2017 / 67
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Inside SMI
One of the fringe benefits of SMI’s annual meeting are the beautiful locations where the events are held. This time is no exception. SMI will hold its annual meeting at the Ritz-Carlton on Amelia Island in Florida from March 31 to April 4. An impressive lineup of speakers has been assembled to educate, inform and entertain SMI members. A speaker at past SMI meetings, economist Dr. Alan Beaulieu of ITR Economics is back by popular demand. Dr. Beaulieu has been providing workshops and economic analysis seminars in countries across the world to thousands of business owners and executives for the last 25 years. He is considered one of the country’s most informed economists. He is co-author of “Prosperity in the Age of Decline,” a powerful look at how to make the most of the U.S. and global trends over the next 20 years. Dr. Beaulieu also co-authored “Make Your Move,” a practical and insightful guide to increasing profits through business cycle changes, and noted by one reviewer as “simple, yet awesome.” As the chief economist for numerous U.S. and European trade associations, it has been remarked that Dr. Beaulieu’s “insight into our business, a track record of accurate forecasting, and unparalleled knowledge of global markets has earned him the respect and appreciation of key business leaders in our industry.” Kendra Thomas believes that “Great Minds Think Unalike!” (see related article by Thomas on “Gender Intelligence” on page 30). Thomas
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Amelia Island Speaker Lineup Set
says a true culture change happens when we stop focusing on simply counting the number of women on a team and instead start building teams that effectively optimize the talents of both men and women. Numerous case studies have noted that teams and organizations with high levels of gender intelligence are better able to realize the significant benefits of truly transformative inclusion, such as: attracting and retaining high quality talent, experiencing superior financial performance, having greater responsiveness to customers and markets, and enjoying more engaged, motivated and productive employees. Thomas is vice president and head of global diversity and inclusion for Pearson, the largest learning company in the world. She holds a bachelor’s degree in socio-political communications from Missouri State University and a juris doctorate from Northeastern University School of Law. She is based in Boston. Peter Philippi, CEO, is founder and president of Strategex, Inc., and has over 30 years of direct experience working with top level management to drive change, profitability and growth. Philippi manages a vast range of long-
term client relationships; he is an exceptional communicator and facilitator with an unusual ability to bring cohesiveness to a management group, as well as a clear vision and direction. He conducts 80/20 seminars and workshops across the country in both the manufacturing and service sectors. In his many years of consulting, Philippi has had direct involvement in hundreds of consulting assignments. Philippi has worked closely with client management teams to effect change as well as provide focus and ongoing direction for increased profitability and aggressive growth. For more information and to register for the SMI Annual Convention, phone SMI at 630-495-8588.
SMI Welcomes New Members SMI is pleased to announce its newest members. Please join us in welcoming these new companies.
Corporacion Dinamica Industrial, S.A., Nuevo Leon, Mexico
Ironmonger Spring Division, Walton, Indiana
Jon Spring Co., Inc., Springfield, Massachusetts
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Inside SMI
Richard and Lea Rubenstein Featured in West Hartford Life 50-livingbest
Hand in hand for a cause Richard and Lea Rubenstein recognized for commitment to Jewish life by Alicia B. Smith Staff Writer
R
Lea and Richard Rubenstein have spent their lives working for Jewish causes and were recently recognized for their work with a tribute hosted by Congregation Beth Israel.
Lea have been pillars of Congregation Beth Israel and beyond. Their involvement and guidance of the congregation, and in the Greater Hartford Jewish community has been a blessing,” Senior Rabbi Michael Pincus stated in a press release. Richard grew up in West Hartford and his parents were active in the Jewish community. He was educated in Jewish life at Congregation Beth Israel, but admitted that when he was younger he did not embrace or pay much attention to his spiritual life. When a friend of his parents, the late Charles Jordan, invited him on a 10-week tour of Europe. Richard, now a college student, decided to go. The group was on a study mission for the Joint Distribution Committee’s Jewish rescue relief. The organization worked to resettle displaced Jews following World War II. “There were many Holocaust survivors still around,” Richard said. “I knew basically nothing about the Holocaust.” Richard’s father had served in the Army in WWII and was involved in the liberation of a concentration
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helping to get a book published First, Richard said, “I was really Jewish Family Services helping to (Oct. 15th - Dec. 7th) camp; however, he never shared about the Jewish Federation. lucky to find my wife – it was one in resettle Jewish refugees; from 1992details of this experience with You have choices “Honoring the Past: Building the a million. I have believed in payback 94 she was its president. his son. Advantage, Supplemental & RX Drug Plans Future, The History of The Jewish for the good fortune we’ve had.” Additionally, Lea was president of “Organized religion was not his Call today to schedule a Federation of Greater Hartford,” The second thing, he said, is, the Jewish Historical Society of thing, but helping Jews was,” Richard We remove the stress from the transition appointment written byone-on-one Betty N. Hoffman. “I am a student of history and am Greater Hartford from 2001-03. said of his father, the man he said services that are often overwhelming. or attend a FREE SEMINAR Published in 2007, it was dedicated very concerned anti-Semitism is Richard served on the board of inspired him. Downsizing - Clean the clutter little I could to Richard’s parents, Florence and rising. I have visited Holocaust sites, the Jewish Federation, chairing its “I tried for whatever Committed totohelping you your bestsolutions! solutions! Senior stress with a plan Annual Campaign from 2001-03 then Committed you find best Charles Rubenstein. seen Jews in need; ithelping motivates mefind to your do Relocation to follow in- Eliminate his footsteps,” Estate Sales &said. Auctions - Maximize your value serving as board president from The cover shows the really want to help.” Richard cltc Lisa Krawczyk, cltc community services building. He can cite one experience that 2003-05. On that 1966 Richard andin home SeniorInsurance InsuranceServices Services • Independent Senior IndependentBroker Broker Calltrip, for your FREE consultation: Richard was president of the has stayed with him all these years He also served as chairman his group visited Switzerland, Caring Transitions of Central CT - 860-406-8197 860.529.0656 • lisakrawczyk@img-sis.com 860.529.0656 • lisakrawczyk@img-sis.com federation at the time, and oversaw and helps him keep his commitment. of the Hebrew Home Healthcare Morocco, France, Italy, Israel and www.caringtransitionscentralct.com Serving ourcommunity community since 1996 •• Never aafee Serving our 1996 Neverits feeororobligation. obligation. planning and construction. It was during that trip insince 1966. While from 2001-13, a position also held Austria. “I am very proud of that,” in Casablanca, he visited the Jewish by his father. trip changed life,” he | November 50 WEST“The HARTFORD LIFEmy 2016 Richard said. quarter of the city and was talking Additionally, Richard serves on a said. “I became very committed to The couple also managed to the Jewish cause. I don’t know what I find the time to travel, racking up would have done had I not gone on an impressive number of miles in that trip.” the air as they visited more than Lea Elias was a Czechoslovakian 120 countries around the world. refugee who came to this country New Zealand was a favorite in 1966. place of theirs to visit. Their travels “I met Richard again; we started –Richard Rubenstein also took them to South Africa, most going out; we fell in love,” Lea said. of Asia, the Canadian Rockies and, to a group of people living in a number of boards including the The two knew early on in their more recently, Tanzania. They have rundown hut, swarmed by flies. Maurice Greenberg Center at the relationship they wanted to devote been to Israel 25 times. “It was my first exposure to why University of Hartford and the Ben their lives to helping other Jews. Lea said one day she would like we help people,” Richard said. “In Bronz Academy of West Hartford. The couple joined Congregation to spend an extended trip in the many cases, because no one else All totaled, Richard has served Beth Israel in 1970. Their volunteer South of France. will help, and because it’s the right 33 years on the executive committee work was done in conjunction with There are no plans to slow thing to do.” of the Jewish Federation. raising two children. down, either. Richard and Lea will be Through all of this, the couple “That is an enormous amount of “My daughter says all she visiting the Easter Islands this fall. raised their family while also runtime to be at the center of Jewish life remembers is meetings, meetings, “Fate is an interesting thing,” ning their own business, the in Hartford,” he said, noting. “I have meetings,” Richard said of those Richard said. “It’s remarkable how Plymouth Spring Company, based in a perspective of Jewish life in days, jokingly. things happen. I always say Lea and Bristol. Hartford as thorough as anybody.” The couple’s children served as I meeting was pure luck, or bashert. “If you want to do something, Recently, Richard joined the president of the youth group while It couldn’t happen in a million years. whatever it happens to be, you just board of the Park Road Playhouse. Richard was the president of the She’s still my best friend and I’m her have to chose to do it,” Richard said. Two things have kept him Congregation from 1997-99. best friend.” WHL The couple was instrumental in motivated and involved. Lea served on the board of
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Lisa Krawczyk,
“If you want to do something, whatever it happens to be, you just have to chose to do it.”
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. . .H 70 / SPRINGS / Winter 2017
ichard Rubenstein was in the Hebrew Immigration Aid Society office in Vienna in 1966, interviewing two Hungarian men. He then asked the young women standing next to them who she was, where she was from and her phone number. He was collecting contact information. His interaction with this young woman took less than a minute. Richard had no idea then that the young woman, Lea Elias, would become his wife. The two were reunited in New York City months later when Richard had reached out to the refugees he had met on his 10-week study mission that summer, inviting them to a gathering. “She came and the rest is history,” he said. The couple has been married 48 years and has devoted their lives to the Jewish community. This fall they were honored for their work at a reception hosted by Congregation Beth Israel. “I was very surprised; it was a real honor,” Richard said of the recognition. 51-livingbest“For many years, Richard and
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Hand in hand for a cause
Living your Best LIFE Photo by Alicia B. Smith
Past SMI board member and magazine chairman, Richard Rubenstein and his wife, Lea, were featured in an Nov. 2016 article in West Hartford Life. Rubenstein is the owner and president of Plymouth Spring Company in Bristol. The article noted the couple’s 48 years or marriage and devotion to the Jewish community, including a reception held in their honor in the fall of 2016 hosted by Congregation Beth Israel. In the article Rubenstein said he was surprised by the recognition. “It was a real honor.” Senior Rabbi Michael Pincus noted in a news release, “For many years, Richard and Lea have been pillars of Congregation Beth Israel and beyond. Their involvement and guidance of the 50-livingbest congregation, and in the greater Hartford Jewish community has been a real blessing.” The West Hartford Life story recounted the couple’s chance meeting at the Hebrew Immigration Aid Society Richard and LeaOffice Rubenstein recognized in Vienna in 1966 that for commitmenteventually to Jewish lifeled to their marriage. by Alicia B. Smith The article explained about Staff Writer the many Jewish organizations and boards to which the couple has devoted their time. Of his volunteer service, Rubenstein told the paper, “If you want to do something, whatever it happens to be, you just have to choose it.” Many in the spring industry are aware of the Rubenstein’s many worldwide travels. As the article noted, the couple have racked up an impressive number of trips to more than 120 countries around the world.
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Inside SMI
Obituaries
SMI mourns the passing of Bill Betts. Born March 17, 1927, William Michael “Bill” Betts III, 89, died peacefully at home surrounded by his family Oct. 16, 2016. Betts grew up in Berkeley and attended Berkeley High School where he was an exceptional athlete who excelled as a team leader and star player in football and track. Follow i ng h ig h school, Bet ts attended the University of California, Berkeley, where he was a member of the Phi Delta Theta Fraternity. His studies at Cal were interrupted by World War II, when he enlisted in the United States Coast Guard. He returned to Cal after the war and met the love of his life, Mary Jane Gallagher. They married in 1950 and resided in Piedmont for 66 years. They raised three children, Mimi Devany (Don), Margie Mordaunt (Mike) and Michael Betts (Cheri). Betts lived his life with dignity, integrity, compassion and joy. Family was the most important thing in his life. He was admired and respected by the community where he lived and worked. Betts was a role model who led by example. His appreciation and respect for his employees was unprecedented, as he considered them his second
family. He was a handsome gentleman with a kind heart, a loyal friend and an all-around great guy. As an entrepreneur and business owner, Betts led one of California’s oldest and most successful family-owned manufacturing businesses, Betts Spring Company (now known as Betts Company). Presently celebrating its 148th year, the company was founded in 1868 in San Francisco by Bett’s great-grandfather, William. Betts was an inventor, well-known for his many innovations in the spring industry including his invention of the first mud flap holder for heavy duty trucks in 1956. Today his products continue to be sold worldwide. He served the spring industry as a board member for SMI and the West Coast Spring Manufacturers Association. A member of Claremont Country Club and the Olympic Club, Betts enjoyed golf, tennis, dominoes, and fishing trips with his lifelong friends. He loved spending time with his family in Piedmont and Carmel Valley. Betts will be fondly remembered for his love of life, integrity, loyalty and sense of humor. He modeled perseverance and hard work through his actions. Above all, his life was characterized by his devotion to his family, who consider themselves blessed to have had such a great man in their lives and will remember him as a loving husband, father, grandfather and great-grandfather.
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Donations may be made in Cardile’s honor to either the American Heart Association or the American Liver Foundation.
SMI mourns the passing of Ed “Eddie” Hall, 58, of Jefferson, Ohio, Nov. 19, 2016. Hall was the SMI board representative for the Pittsburgh/Ohio region. Born Oct. 14, 1958, in Warren, Ohio, Hall graduated from Jefferson Area High School. He started working at Schultz Mechanical Wire right out of high school and continued with the company when it changed ownership to Spring Team in 1997. His career spanned more than 40 years. Hall was serving as general manager and production manager for Spring Team at the time of his death. Hall was a member of the former Tuscan Lodge #342 F&AM, now Relief Lodge #284 F&AM and he served on an audit committee for Lakeview Federal Credit Union. Hall enjoyed bowling, golf, making craft beers, wood crafting, and going to yard sales and flea markets and collecting memorabilia. Ed was a “natural hugger” and was a strong supporter of Toys for Tots. Hall is survived by his wife of 23 years, Laura, a son, Keith E. (Lindsey) Hall, two granddaughters, three siblings and many nieces, nephews and cousins. Memorial contributions in Hall’s memory can be made to Relief Lodge #284 F&AM, 1041 St. Rt. 7 N, Pierpont, OH 44082 or Toys for Tots, 850 Broad St., Conneaut, OH 44030.
SMI mourns the loss of James R. Van Horn, 59, December 2, 2016, after a brief illness. Van Horn was a graduate of Grove City High School, a U.S. Marine Corps Veteran, and president and co-owner of SMI member company Bloomingburg (Ohio) Spring & Wire Form Co. Inc. In addition to SMI, he was a member of NFIB and NAM. Van Horn was a vintage car owner and enthusiast, especially Mopar cars. An avid Buckeye fan, he enjoyed watching games with his daughter, Ashley. He also looked forward to poker nights with his buddies. Van Horn was preceded in death by his parents, Sam and Arlene. He is survived by his loving wife of 31 years, Donna Panico Van Horn; daughter Ashley and son Joshua (Sheena); grandchildren James, Kalob, Summer and Khylee; brothers Dan (Jana) and Timothy; nieces, cousins, including special cousin Vivian; brother-in-law Steve (Chuck) Panico and sister-in-law Margaret Panico-Harn; and many close friends. Services were held. The Van Horn family expressed a special thank you to Mt. Carmel West 3 Tower doctors, nurses and staff. Memorial contributions may be made to Mt. Carmel Hospice or the American Cancer Society. n
SMI mourns the passing of Frank Cardile, 81, of Purchase, New York, Nov. 23, 2016. Cardile was a student at the University of Naples, Italy and received a master’s degree in law from Hunter College in Manhattan, New York. He was the founder and CEO of InterWire Products in Armonk, New York. Emigrating from Italy at age 19, Cardile realized there were great opportunities waiting for him in America. He spent time in Japan and Germany learning the steel wire business. He brought that technology to America and was able to help make American mills’ quality competitive with the rest of the world. In 1981, Cardile founded Interwire Products which is now a leading national distributor of fine quality specialty wires. Cardile was a devoted family man who enjoyed spending time with his wife, Deborah, his children, and especially his 12 grandchildren. He was an avid golfer who belonged to Tamarack and Hampton Hills Country Clubs. Cardile was also a major contributor to Mount Sinai Medical Center and Columbia Presbyterian for liver and heart disease research.
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Admiral is a registered trademark of Admiral Steel LLC. Alsip, Illinois. Reg. No. 2430959. All rights reserved.
©iStockphoto.com/Studio-Pro
Betts is survived by his wife of 66 years, Mary Jane, his three children, eight grandchildren and 15 greatgrandchildren.
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Committee Connection ©iStockphoto.com/Studio-Pro
Report on the ISO TC227 Meeting in Vienna Tom Armstrong of Duer/Carolina Coi l attended t he I nter nat iona l Organization for Standardization (ISO) TC227 Springs meeting in Vienna, Austria, Oct. 20-21, 2016. Armstrong represents SMI as the U.S. head of delegation for the American National Standards Institute (ANSI). Also attending was Mark Caldwell of MW Industries, who served as the U.S. expert for the “Disc Springs” project. Approximately 25 delegates, experts and observers attended the meeting from Austria, Germany, Italy, Japan, Thailand, Malaysia, China, France and the U.S. The U.K. was not present, but was represented by Germany. Armstrong said the U.S. delegation helped facilitate a deal between the European Union and the Japanese delegations on a couple of issues that he believes would not have
reached a compromise without the U.S. delegation’s direct involvement and pressure toward resolution. This effort allowed part two of ISO draft standard 19690 to move to the Draft International Standard (DIS) phase of the process rather than dying in the working group. The next meeting of ISO TC227 will be held in Bangkok, Thailand sometime in October or November 2017. Armstrong says there is currently no specific project on the agenda for the 2017 meeting because two Russian proposals for new projects were rejected by the committee. “A general discussion took place and I believe that Germany will ask the committee to take on a new project titled ‘Test Methods for Small Cold Formed Helical Compression Springs’ before the next meeting,” explained Armstrong.
A r m st rong is look i ng to t he SMI board of directors and the SMI technical committee for guidance to help select a U.S. expert for this project. I n r el ated news, A r m s t r on g reported that the European Spring Federation announced that its “9th International Congress of the Spring Industry” will be held Sept. 29–Oct. 1, 2017, in Taormina, Italy. The event is being hosted by National Association of Italian Springmakers (ANCCEM). For more infor mat ion on t he European Spring Federation meeting, contact Fabio Visentin of the Italian delegation at Fabio.visentin@mevis.it or visit www.anccem.org. For more information or to provide feedback about SMI’s committees, contact SMI’s executive director, Lynne Carr, at lynne@smihq.org or 630-495-8588. n
Delegates and experts who attended the ISO TC227 meeting in Vienna, Austria in Oct. 2016.
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New Products ©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey
PW110R Parts Washer; TPS4 Temperature Profiling System for Conveyor Ovens HSI and Forming Systems, Inc. have introduced the new PW110R parts washer system. This new in-line cleaning system includes these features: • High pressure water • Variable water temperature adjustment • Oil skimmer included • Water circulation system included • Variable roller speed adjustment • Link in-line with the machine Also at HSI, the latest addition to their high performance oven line has been announced. The TPS4 Temperature Profiling System may be linked to the conveyor ovens. The TPS system is used for surveying and recording temperature uniformity within the heat chamber. Features include:
• Real time temperature display and temperature chart showing all channels • Temperature data stored in USB flash drive may be downloaded to PC for analysis • 7” touch screen for ease of operation • Portable design with miniature thermocouple jack for easy movement to additional furnaces • Standard design for K type thermocouples, with other types available as option • TPS systems are also available for 6 channel and 12 channel operation For additional information, including dimensions, specifications and options, contact Forming Systems, Inc. at info@formingsystemsinc.com or call 269-679-3557.
ShiftPixy App Allows Real-Time Access to Thousands of Workers The ShiftPixy app has blended a completely integrated workforce management platform that addresses the weight and cost of the increased employer administrative responsibilities, compliance, and owner related cost with a powerful scheduling and recruiting platform. “The employer simply broadcasts an available shift through the ShiftPixy app platform. As the workers reply, management then uses the app to access the Shifters experience, reviews and qualifications. The chosen one is confirmed on their own personal ShiftPixy mobile app. An invaluable tool, our new app helps employers assume new roles as the Gig economy continues to change and ma-
ture. Real-time access to thousands of mobilized, contingent shift workers flourishes with the ShiftPixy app. Nowhere else will you find such a powerful combination: the ability to access and manage human capital, with resources that help your company control labor cost,” stated Scott Absher, CEO of Shiftpixy, Inc. “Administrative risks are lessened when all involved use the new app. The roles taken on as operator, employer, planner and business developer can consume all of management’s resources and time. Employer administrative threats such as ACA, minimum wage increases, and mandatory paid time off regulations keep most business owners up at night
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thinking how they are going to be compliant, phase in new pricing to offset higher labor cost, and access a shrinking labor pool as more and more people are working part-time jobs,” explained Absher. ShiftPixy has reported filing a Reg A+, the new Securities and Exchange Commission (SEC) regulatory vehicle that allows non-accredited investors the opportunity to invest in a company at an early stage initial public offering (IPO). Previously, investing in pre-market IPO’s had been available to only a select few accredited or institutional investors. For more information, contact https://wrhambrecht.com/ipos/ shiftpixy-inc-regulation-a-ipo.
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New Products
Sena Tufftalk Bluetooth Headset Sena Technologies, Inc.,has released the new Tufftalk headset, which is engineered with Sena’s almost two decades of industrial wireless Bluetooth expertise. “Sena Tufftalk is the first fully Bluetooth integrated intercom device to both protect the user and supply a clearer communication channel,” said Tae Kim, president and CEO of Sena Technologies, Inc. “This device marks our continued commitment to the safety and efficiency of the industrial field.” Sena’s Tufftalk, an earmuff Bluetooth® communication and intercom headset, is designed specifically to meet the communication and connectivity needs of industrial applications. Tufftalk sports a 1.4 km working Bluetooth range — the furthest of any product on the market today. Its sturdy design and tough manufacturing offers up to 15 hours of uninterrupted
intercom communication between up to four headsets. Tufftalk’s secure earmuffs help protect users from harmful noise with an audio attenuation of 24dB. The ambient mode feature allows users to amplify external sounds, generating greater awareness of surroundings so important alarms or calls can be heard while still protecting hearing. For more active applications, Tufftalk offers an optional hard hat mount package. Equipped with high-definition (HD) quality speakers, Tufftalk delivers crystal clear audio that industrial mobile workers need to stay safe on busy and noisy worksites. Tufftalk features Sena’s Advanced Noise-Control™ technology, which limits the interference of background noise while maintaining the full volume of voice communication. Sena’s patented Jog Dial design is glove-friendly and easy to control,
while the VOX technology allows users to answer phone calls, communicate and react to voice commands, all while hands-free. Tufftalk is also compatible with a Sena App to configure settings and presets easily through any smartphone. As with all Sena units, Tufftalk is completely firmware upgradeable to ensure it remains compatible with all of the latest Bluetooth technology. For more information on Sena Technologies, Inc. and its products, please visit www.sena.com, www. SenaIndustrial.com or contact 949716-3793 or marketing@sena.com. n
Advertiser's Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . . 6 Admiral Steel (800) 323-7055. . . . . . . . . . . . . . 72 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 66 Anchor Abrasives (708) 444-4300. . . . . . . . . . . . . . 15 CASMI (630) 369-3466 . . . . . . . . . . . . . 13 Central Wire (800) 435-8317 . . . . . . . . . . . . . 55 Century Spring, Division of MW Industries (800) 237-5225. . . . . . . . . . . . . . 61 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . 18 Elgiloy Specialty Metals . . . . . . . . . . (847) 695-1900. . . . . . . . . . . . . . 11 Fenn/Torin (860) 594-4300. . . . . . . . . . . . . . 58 Forming Systems Inc. (877) 594-4300. . inside front cover, back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422. . . inside back cover
Industrial Steel & Wire (800) 767-0408 . . . . . . . . . . . . . 68 Interwire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161 . . . . . . . . . . . . . 50 Julang – China International Spring Exhibition 0086-20-38620790. . . . . . . . . . . 64 Kiswire (201) 461-8895 . . . . . . . . . . . . . 40 Larson Systems (763) 780-2131 . . . . . . . . . . . . . 34 Lucky-Winsun Enterprise Co. 886-4-23374938. . . . . . . . . . . . . . 8 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . 43 Mount Joy Wire (717) 653-1461 . . . . . . . . . . . . . 42 NIMSCO (563) 391-0400 . . . . . . . . . . . . . 62 North American Spring Tool (860) 583-1693. . . . . . . . . . . . . . . 9 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . 43 Radcliff Wire (860) 583-1305 . . . . . . . . . . . . . 22
RK Trading (847) 640-9371 . . . . . . . . . . . . . . 3 Shinko 81-6-6794-6610. . . . . . . . . . . . . 20 Simplex Rapid (563) 391-0400 . . . . . . . . . . . . . 23 Spring Manufacturers Institute (630) 495-8588. . . . . . . . . . . 47-48 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 63 Tool King (847) 537-2881 . . . . . . . . . . . . . 54 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . 56 United Wire (800) 840-9481 . . . . . . . . . . . . . 71 Vinston (847) 972-1098 . . . . . . . . . . . . . 10 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . 12 WAFIOS (203) 481-5555 . . . . . . . . . . . . . . 5 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 16
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Snapshot ©iStockphoto.com/Tryfonov Ievgenii, nicholas belton
Gary Schuessler
Diamond Wire Spring Name: Gary Schuessler Nickname: Grizz Company name and city: Diamond Wire Spring, Pittsburgh, Pennsylvania. Brief history of your company: The Diamond Wire Spring Company was founded in 1939 in a garage-like building in the Bloomfield section of Pittsburgh, Pennsylvania. By 1941, ownership of the company was held by five businessmen who joined to form a corporation. During World War II, the five participants were totally committed to their respective wartime responsibilities, and the expansion of Diamond was limited. By 1947, one of the five owners, Alphonse J. Fazio, bought out the other stockholders, left his position as plant superintendent of Braeburn Steel, and became the full-time president and owner of the fledgling company. In 1945, Diamond moved from its Bloomfield location to Grant Avenue in Millvale, Pennsylvania, and, in 1956, Fazio built a modern facility on Babcock Boulevard that remains the main manufacturing plant today. Job title: Vice President of Manufacturing.
Gary Schuessler and his wife, Zita.
What I like most about being a springmaker: All the great people I have met and the friendships I have developed over the years in spring industry. Favorite food: My wife Zita’s sauerkraut that includes the secret ingredients of apples and vanilla. Favorite books/authors: Dean Koontz, the Frankenstein series. Favorite song/musician: Copperline, James Taylor. Hobbies: Landscaping projects. Favorite places: My front porch on a summer evening. Best times of my life: The day I married my soul mate. She was 15 when we met. The rest is history.
Current home: Franklin Park, Pennsylvania.
A really great evening to me is: Sitting around the fire pit at the house with my family and cooking moon pies.
Family: My wife of 36 years, Zita, and two adult children, Grant and Anna Jane. Three cats, Miley, Ollie and Bubbie.
The one thing I can’t stand is: Being late, and long winded stories (just give me the Cliff notes).
Birthplace: Pittsburgh, Pennsylvania.
76 / SPRINGS / Winter 2017 76 / SPRINGS / Winter 2017
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My most outstanding qualities are: Being calm in a crisis and taking control. People who knew me in school thought I was: Quiet and reserved. I knew I was an “adult” when: When my son was born. If I weren’t working at Diamond Wire Spring, I would like to: Captain a fishing boat off the North Carolina coast. The most difficult business decision I ever had to make was: The first time I had to let someone go. My thoughts were always on the employee’s family and the impact it would have on them. I wonder what would have happened if: I had pursued a medical career. Role models: Ronald Reagan, and my wife Zita for her patience and always giving me the benefit of the doubt. I would like to be remembered in the spring industry for: Fairness. But people will probably remember me for: My sarcastic sense of humor.
C M Y K
| 2017/01/19 16:41:56
[61983.pdf (2)](79)
61983 |
C M Y K
| 2017/01/19 16:41:56
[61983.pdf (2)](80)
61983 |