Springs, Spring 2024, Volume 63, No. 2

Association Solutions

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Forming relationships that last.

For over six decades, our customers have trusted us as their definitive source for wire and strip solutions. At Gibbs Interwire, we’re consistently investing in our equipment, products, processes, and people to meet the needs of our customers, now and in the future.

Don Jacobson III

President’s Message

Planned and Unplanned Exits

As a kid at heart, I can’t think about exits without reflecting on an old HannaBarbera cartoon character, Snagglepuss, and his catchphrase “Exit, stage left.”

When Snagglepuss found himself in an uncomfortable or desperate situation, he’d look around, say his catchphrase and disappear off-screen. He was not the bravest of characters, but it worked for him. When the dastardly villains planned mischief, some characters stayed the course and found a way to overcome, others decided to move on with haste.

Exits can be planned or figured out on the fly. With planning, an exit can be laid out over several years with a series of steps to make the plan a reality. But there are situations where it’s best to move with haste to avoid any looming trouble or run toward a time-sensitive opportunity that can’t wait.

Now, when I watch my children on stage, I marvel at how easily some people move inconspicuously in the background while others catch your eye from the moment they step foot on stage until they exit. When you watch consecutive performances over four days, you can pick up the subtleties of each actor. I always watch to see if they stay true to the script or ad-lib and deviate from the rehearsed and expected.

When you’re on stage or giving a presentation, there are two different types of performances: the scripted and the ad-libbed. There is comfort in knowing the steps of the exit plan are laid out and easy to follow. One can rehearse until we are blue in the face, but there are times when staying on-script just isn’t the right decision. Many of the most memorable scenes in entertainment are ad-libbed by the actors on the spot. As springmakers we don’t want our parts to follow a inconsistent and unexpected movement, we want them to have expected repeatable linear movement. For every business owner, there comes a time when they must bow out of the spotlight. It may be a planned move, scripted ahead of time. It may be forced because the focus has shifted to another part of the story. They may be moving on to a different, bigger spotlight. Or it could be that scene from Frankenstein where the townsfolk/creditors are coming with pitchforks and torches.

There are a lot of ways to exit a company, and in this issue of Springs, some great industry leaders will discuss various ways to prepare for planned and unplanned exits.

An exit is just an entrance to another journey. I look forward to taking on these next two years as SMI president as we look towards the future and make our plans that may include both entrances and exits.

“Keep moving forward, and if it’s time to go, it’s time. Nothing lasts forever.”

— Stan Lee

Don Jacobson III Newcomb Spring Corp.

D3@newcombspring.com

Update Your Records

Please be sure to update your mail and phone records with SMI’s new address and phone numbers.

SMI Executive Committee

President: Don Jacobson III, Newcomb Spring

Vice President: David DeVoe, Plymouth Spring

Secretary/Treasurer: Dave Deerwester, The Yost Superior Co.

Past President: Gene Huber Jr., Winamac Coil Spring

At-Large: Joe Devany, Betts Company

Executive Director: Gary McCoy, SMI

SMI Board of Directors

Markus Arnold, WAFIOS I Jodi Boldenow, IDC Spring I Linda Froehlich, Ace

Wire Spring & Form I Adam Jacobson, FENN/Torin I Don Lyons, JonSpring

I Alex Melnikow, Midstate Spring I Tony Pesaresi, Winamac Coil Spring I Keith Porter Jr., Newcomb Spring I Tim Zwit, Motion Dynamics Corporation

Springs Magazine Staff

Gary McCoy, Executive Director/Publisher, gary@smihq.org

Phil Sasso, Managing Editor, phil.springs@sassomarketing.com

Gabriela Carrasco, Associate Editor, gaby@smihq.org

Lisa Plefka Haskin, Art Director, lisahaskin95@gmail.com

Communications Committee

Chair, Keith Porter Jr., Newcomb Spring I Reb Banas, Stanley Spring & Stamping I Hale Foote, Scandic Springs, Inc. I Patrick Gillum, Gilco Spring of Florida, Inc. I Adam Jacobson, FENN/Torin I Lucas Karabin, Acme Monaco I Gary McCoy, SMI I Phil Sasso, SMI I Michael Shapiro, Gibraltar Corporation I Bill Wynn, Gardner Spring, Inc.

Advertising Sales I Japan

Ken Myohdai, Sakura International Inc.

Head Office: 3F,4F, ENDO Sakaisuji Bldg., 1-7-3, Bingomachi, Chuo-Ku, Osaka 541-0051, Japan

Phone: 81-6-6624-3601 I Fax: 81-6-6624-3602

Tokyo Global Office: 5F Kamei No. 2 Bldg., 2-17-13, Kiba, Koto-Ku, Tokyo, 135-0042, Japan

Phone: 81-3-5646-1160 I Fax: 81-3-5646-1161

E-mail: info@sakurain.co.jp

Advertising Sales I Taiwan

Charlie Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd.

Taichung, 408 Taiwan

Phone: +886-4-2325-1784 I Fax: +886-4-2325-2967

E-mail: marketing@acw.com.tw Springs

PO

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NORTH AMERICA

Ace Wire Spring & Form Co., Inc., marks 85 years in custom spring manufacturing and remains a family-owned staple in McKees Rocks, Pennsylvania.

Founded by Joseph Vodvarka in 1939, Ace began by handcrafting garter springs in Vodvarka’s house. Family values continued to drive customer service and product quality, under next generation leaders Linda Froehlich (Vodvaraka’s daughter) and her late husband

Richard D. Froehlich

The 55,000 sq. ft. Ace facility, built in 1986, reflects community commitment and fosters enduring employee loyalty. President Ritchy Froehlich, carrying on traditions, emphasizes passion and perseverance.

Specializing in precision springs, Ace offers engineering support and quality control backed by a century of collective expertise.

Global Highlights

Barnes Group Inc. has finalized a deal to sell its Associated Spring and Hänggi businesses to One Equity Partners for $175 million, including a $15 million seller promissory note due in 24 months.

The move aims to raise $150 million in net cash proceeds, earmarked to reduce debt accrued from the strategic acquisition of MB Aerospace in August 2023. Barnes reiterates its commitment to achieving a net debt to EBITDA ratio of 3.0x or lower by the end of 2024 and a long-term leverage goal of 2.5x by 2025.

“We’ve been executing a comprehensive business transformation strategy focused on three key pillars: execute core business, scale aerospace, and integrate, consolidate and rationalize industrial to enhance growth, profitability and cash flow,” said Thomas J. Hook, president and CEO of Barnes. “Today’s divestiture underscores our efforts to rationalize our Industrial business and rebalance our portfolio toward aerospace.”

Hook added that the transaction enables debt reduction, lowering interest expenses and offering tax benefits. The deal, subject to regulatory approvals, is expected to close in early 2024. Further details will be provided during the company’s Q4 and full year 2023 earnings call on February 16, 2024.

Mike Betts, CEO, Betts Company, was inducted into the Heavy Duty Aftermarket Hall of Fame during Heavy Duty Aftermarket Week (HDAW) 2024 in Grapevine, Texas. HDAW is the premier event for the heavy-duty aftermarket industry in the U.S.

“Thank you all who support and grow our industry,” Betts said when accepting the award, acknowledging the company’s enduring legacy to past generations of leaders.

Reflecting on Betts Company’s 156-year history, Betts highlighted the resilience of predecessors who navigated through challenges, inspiring the company today.

After recognizing his son Bill Betts, the company’s president and COO, and emphasizing the importance of career and technical education programs, Betts called for industry collaboration to forge a path forward.

“I leave you with a question: How can we unite—OEMs, marketing groups, industry associations—to reset our industry path with common-sense solutions for future success? The time is now,” Betts concluded. For more information about HDAW, visit hdaw.org.

Wire Mexico debuted at Expo Manufactura in Monterrey’s CINTERMEX Centro Internacional de Negocios, featuring 51 exhibitors from 12 countries exhibiting across 6243 square feet. Daniel Ryfisch of Messe Düsseldorf praised the event’s success, affirming the decision to tap into Mexico’s burgeoning market. As a satellite event of Messe Düsseldorf’s trade show portfolio, Wire Mexico aligns with Expo Manufactura, catering to machinery, metal processing, electrical and automotive sectors.

Notably, recent U.S. Census data underscores Mexico’s prominence as the U.S.’s leading trading partner, with $798 billion exchanged in 2023. With burgeoning infrastructure investment, Mexico emerges as a pivotal growth hub for wire, cable and related industries, catering to national demand and neighboring Central and South American markets.

The next Wire Mexico is slated for Monterrey in 2025. For further information on visiting or exhibiting at Wire Mexico 2025, contact Messe Düsseldorf North America at 312-781-5180, info@mdna.com or visit wire-mexico.com.

Mike Betts

INTERNATIONAL

Alloy Wire International (AWI) celebrates a year marked by export successes, security of supply and broadening ownership through employee shareholding. Since the management buyout (MBO) a year ago, AWI achieved $22.7 million in sales, a near $6.3 million increase from 2022, surpassing anticipated revenues by $3.8 million.

Employee ownership expanded to all 33 staff members post-MBO.

AWI leadership team, Tom Mander, Adam Shaw and Andrew Du Plessis, attribute this growth to a post-pandemic resurgence in oil, gas and aerospace sectors, along with automotive growth and new R&D and space exploration opportunities. AWI’s commitment to a 400-ton stockholding and quick supply of 60 exotic alloys within three weeks enhances its competitiveness, says the team. Despite global supply chain challenges, AWI maintains three-week delivery times and plans a $1.2 million investment drive to enhance capacity and technical capabilities.

AWI’s technical expertise and customer consultation services reinforce the company’s appeal over international rivals, said Du Plessis.

AWI’s products now reach over 65 countries, reflecting strong overseas demand.

After the MBO, the ‘Wired for Good’ campaign, supporting local charities, continued, with donations exceeding $57,903.

The Japan Society of Spring Engineers (JSSE) held its semiannual lecture meeting, poster session, and JSSE awards ceremony at Winc Aichi November 10, 2023. With 123 attendees, eight general lectures and one special topic lecture, the event opened with a speech by Kei Watanabe, JSSE vice-chairperson and operating officer of Chuo Spring Co., Ltd.

Eight technical posters were exhibited during the poster session. A representative explained each poster followed by a question-and-answer session. The top two posters were “Development of Measurement and Analysis Systems for Mechanical Testing” by Shoma Nakano of the National Institute of Technology, Tokyo College, et al., and “Design and Prototyping of Solid and Hollow Coil Springs Using a Metal 3D Printer and their Evaluation Results” by Konatsu Takasaki of Utsunomiya University, et al.

Messe Düsseldorf Group expanded its global presence in Turkey, adding new events to leading Eurasian trade shows, ANKIROS/TURKCAST and ALUEXPO. This growth is through a joint venture of Messe Düsseldorf and Deutsche Messe AG, each holding a 50% share in “Hannover Messe Ankiros Fuarcilik A.S.”

Meanwhile, Messe Düsseldorf and Tüyap Fairs Istanbul will jointly develop wire Eurasia and Tube Eurasia.

“Turkey, a thriving marketplace at the EuropeAsia interface, offers significant opportunities for wire, cable, tubes, and pipes technologies,” said Friedrich-Georg Kehrer, Global Portfolio Director of Messe Düsseldorf GmbH.

Turkey’s substantial investments in housing, infrastructure and ongoing projects drive demand for metal industry products. The country’s economic potential, serving as a bridge between Europe and Asia, makes it highly attractive. In 2022, trade between Germany and Turkey reached $29 billion, with North Rhine-Westphalia contributing $12.4 billion (42.6%).

For more information, contact Messe Düsseldorf North America at 312-781-5180 or info@mdna.com.

The awards ceremony preceded the afternoon lecture session, where the Ronbun-prize, Gijutuprize and Koseki-prize were presented. A banquet followed by opening remarks from Toshihiro Tachikawa, JSSE vice president, and a guest speech by Masahiko Nakatani, executive director of Japan Spring Manufacturers Association. Dr. Mitsuo Notomi, JSSE chairperson gave a closing address. z

Alloy Wire International leaders (l-to-r): Mark Venables, Tom Mander, Adam Shaw and Andrew Du Plessis.

Shoma Nakano is pictured holding a laptop in front of his winning poster.

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CASMI

Regional Reports

CASMI Launches New SpringWorld Brand and Website

The Chicago Association of Spring Manufacturers (CASMI) launched a new SpringWorld website (springworld.org) to showcase the expanded event, including the new SMI Educational Symposium. The site provides comprehensive expo content, including schedule information, event registration, hotel reservations, sponsorship opportunities and exhibitor information.

The 2024 SpringWorld symposium and expo (Oct. 2–4 in Rosemont, Illinois) combines CASMI and SMI’s events into one biennial springmaker convention. SMI will host two days of business and technical education morning sessions (Oct. 3–4), which will include 24 educational programs. The exhibit hall, hosted by CASMI, allows OEMs, spring

manufacturers, distributors along with coiling, grinding, peening and wireforming companies, to showcase the newest equipment and technologies to key decision-makers in the spring industry.

SpringWorld’s rebranding extends across exhibitor and sponsor sales kits, brochures, digital mar keting, email templates, event signage and the website.

2024 CASMI Scholarship Program Opens

Applications are now available for the 2024 CASMI scholarship program to benefit dependents of member company employees.

Since the scholarship program began, CASMI and its generous donors have provided $936,250 in scholarships to undergraduate and graduate students. The success of SpringWorld makes it possible for CASMI to fund many significant initiatives, including scholarships.

“CASMI appreciates the ability to give back to its members and the industry each year and those who help make this happen with the support and loyalty you provide,” said Joe Wesner, president of CASMI. For more information, visit: casmi-springworld.org/Scholarship. The application deadline is May 2, 2024.

Upcoming CASMI Events

April 25 Dinner and Bocce Ball Event

Pinstripes, Oak Brook, Illinois

June 20 Golf Outing

Cog Hill Golf and Country Club, Lemont, Illinois

Aug. 29 Evening at the Ballpark Impact Field, Rosemont, Illinois

Nov. 14 Dinner and Guest Speaker TBD

Dec. 12 Holiday Party Coopers Hawk, Arlington Heights, Illinois

*Events are subject to change. Please visit casmi-springworld.org for the latest information.

Chicago Association of Spring Manufacturers, Inc.

Annual Golf Outing Returns to Cog Hill

The CASMI 2024 Golf Outing returns to Cog Hill Golf & Country Club in Lemont, Illinois, on June 20. The 2024 event includes lunch, 18 holes of golf, a reception, dinner and an awards presentation.

Last year, 85 primary and associate CASMI members participated in the 18-hole best-ball tournament.

Sponsorship opportunities and registration information are available online at casmispringworld.org.

NESMA REPORT

By Lucas Karabin , Acme Monaco, NESMA President

NESMA finished 2023 on a high note. Overall, membership grew slightly, and revenue increased. We want to thank our members for their participation throughout 2023 and for helping us achieve these goals.

We had one outgoing board member, Charlie Radcliff of Radcliff Wire in Bristol, Connecticut. Radcliff last chaired our scholarship committee. Charlie will remain active on the scholarship committee, which John Higginbotham, Rowley Spring, and Stamping will now chair. When John isn’t playing golf you can find him working on his company’s Stanley Bitel Golf Tournament, which annually awards a scholarship to a technical degree student. A gallery of the 2023 tournament is at rowleyspring.com/2023-golf-tournament.

NESMA scholarship applications were being accepted online through March 8. John will now have three scholarships to award at the ceremony in June 2024. This event is managed by the Main Street Foundation of Bristol, Connecticut (mainstreetfoundation.org).

We are fortunate to have three new board members join us this year: Ryan Cei, general manager of Radcliff Wire; Heather Rowe, northeast account manager of Industrial Steel & Wire and Kara Bosse, chief sales officer of MW Components.

The 2023 NESMA Annual Holiday Party had 130 guests. Our events committee, led by Ryan Cutter, president of FENN/Torin, has mastered party planning and solicits membership feedback to ensure future success. Additional thanks to Annelise Mackiewicz, FLM (Future Leaders in Manufacturing), NESMA board member, and a host of NESMA volunteers. If you have suggestions for 2024, please let us know. We had guests from across the district’s multiple states and even one from Ireland for our 2023 event.

2023 NESMA Golden Spring Winner John Higginbotham,  director of operations for springs, wireforms, facilities, and IT, Rowley Spring and Stamping (center), is pictured with Lucas Karabin, NESMA president (left) and Annelise Mackiewicz, NESMA board member (right).

Keri Valente, State of Connecticut DOL Office of Apprenticeships, accepts NESMA Spring Industry Community Advocate Award at the 2023 NESMA Annual Holiday Party.

Jamie Jones (r), president of Solar Atmospheres, and Tim Steber (l), Regional Sales Manager, acknowledge NESMA recognition of their company’s 40 years in business at the 2023 NESMA Annual Holiday Party.

At our annual meeting, outgoing board member Charlie Radcliff was presented with an award of recognition by David DeVoe, Plymouth Spring and Stamping.

NESMA presented two “Continuous Operation” awards. Solar Atmospheres was honored for 40 years in business. Tim Steber, regional sales manager, and Jaimie Jones, president, accepted the award. Springfield Spring was honored for 80 years in business. Ryan Nadeau, general manager, accepted the award.

Al Mangels of Lee Spring, who serves as NESMA’s technical development committee chair, presented our “Spring Industry Community Advocate Award” to Keri Valente, Connecticut Department of Labor Office of Apprenticeship. Keri works tirelessly on behalf of apprentices and has helped these programs evolve standards for the modern shop environment.

The “President’s Award” was given to Michael Brault, The Ultimate Companies, a former NESMA board member and president. The award was presented by Lynette Nadeau, Southington Tool and Manufacturing and past NESMA president. Michael’s efforts while on the NESMA board produced many changes that have impacted our board.

Our newest award, “Golden Spring — Community Impact Award,” was presented to Rowley Spring and Stamping and was accepted by John Higginbotham on behalf of company president John Dellalana. FENN/Torin made this trophy, and it caught everyone’s attention. The award honors the tremendous volunteer work that Rowley employees do in our community.

Our final award, “Special Recognition Award for Dedication to NESMA and Our Industry,” was presented to outgoing board member Charlie Radcliff. We were honored to have this award presented by past recipient and former Radcliff employee Scott Kirkpatrick. Both have truly motivated and rallied our cause year in and year out, contributing to NESMA’s legacy. Images can be viewed at nesma-usa.com/gallery

NESMA has hired Dee Babkirk as our new executive director through NAPCON Communications LLC, our new association management company. Dee is president and CEO of the Greater New Britain Chamber of Commerce. She can be reached at d.babkirk@nesma-usa.com. Our new mailing address is New England Spring & Metalstamping Association, Inc., P.O. Box 1478, Bristol, CT 06011. z

Upcoming NESMA Events

June 11 Yard Goats Baseball, FLM Board, Dunkin’ Park, Hartford

June 20

Scholarship Ceremony, DoubleTree by Hilton Hotel, Bristol

Aug. 26 NESMA Golf Outing, Farmington Country Club

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159573_ANCHR_Spring 2021_SPRINGS Mag Ad_HalfPgIsland.indd 1

Laura Helmrich-Rhodes, CSP, Ed.D.

Change Often Leads to Unforeseen Accidents

In staying with the theme of this issue, let’s look at keeping employees, facilities and other assets safe during an acquisition or sale. Being a good steward is always important especially during times of dramatic change to prevent errors and oversights that can lead to catastrophic loss.

Over the last three decades, popular process improvement methods include “change management.” For example, ISO 45001, Six Sigma, Lean and, most currently, Human Operational Performance (HOP) all address change.

After several devastating explosions in the U.S. and foreign countries, change management became a hot topic in the environmental, health and safety (EHS) profession. Leading organizations, including the US Chemical Safety Board and OSHA, investigated these occurrences. The result was the creation of the Chemical Process Safety Standard 29 CFR 1910.119.

Our readers likely do not fall under the scope of that particular standard. However, the lessons learned and the techniques associated with the standard give us a framework to use when any process or procedural change occurs. Best practices for management of change (MOC) have been widely adopted in EHS due to this standard.

The Only Constant is Change

Changes and modifications happen daily in manufacturing, including the spring and wireforming industry. New/used machines are purchased and installed. Shop floors are reconfigured to meet the needs of different products and workflows. New technology is adopted. Even internal and external demands require change.

A merger, acquisition, management buyout or generational transition in ownership can lead to significant change and create loss, which well-planned transitions can prevent.

New materials and finishing processes can introduce the potential for employee injury/ illness, fire or explosion. This happens with new customers but also with company operational mergers. For example, grinding or welding on new material requires planning. Several EHS issues include, but are not limited to, respiratory illness, dermatitis and even explosive dust from content or coatings.

According to the US Chemical Safety Board Safety Bulletin, “Systematic methods for managing change are sometimes applied to physical alterations, such as those that occur when an interlock is bypassed, new equipment is added, or a replacement is ‘not in kind.’ Developing your own formal written ‘systematic method for managing change’ can prevent oversight, allow time to plan and assure all your ‘bases are covered.’”

Change is Hard

In my ten years with SMI, I have witnessed and participated in several company transitions, redesigns, expansions, moves and new/old equipment purchases. Some of those changeovers have been smooth. Others were not so smooth. In one case, purchased equipment required additional safety certifications by a third party before installation to meet local electric codes. That was expensive and caused significant delays.

Transitions can lead to communication breakdowns, too. After 35 years of management consulting, I’ve seen leadership’s effectiveness become clear when discussing safety, quality, material handling, accident investigations and work tasks. Being a good steward of an organization requires planning and communicating to create an environment of trust and growth versus chaos. The latter can lead to product errors, fires, employee injuries, excessive workers’ compensation claims, property loss and environmental damage. Implementing transition processes that include EHS reviews before they are needed can reduce risk significantly.

If you’re planning a merger, acquisition, or generational change that can create significant upheaval, consider using the broad-based checklist at the end of this article (p. 14). This is not an exhaustive list. However, it will force leadership to act as needed.

Small Change, Big Impact

Even if your business is not facing a significant transition, remember all change — even nonroutine tasks can lead to significant loss. If you are considering significant changes in equipment, processes, materials or the like, check out Fred Manuele’s, article Management of Change:

Laura Helmrich-Rhodes, CSP, Ed.D., is SMI's regulatory compliance consultant. She is an associate professor in the Safety Sciences Department at Indiana University of Pennsylvania, teaching graduate and undergraduate classes.

Contact Rhodes at SMI: 847-450-6848 or laurahrhodes@gmail.com

Examples from Practice (see link on the right). This is an excellent resource for plant engineering and decision-makers. He outlines reasons for MOC, how to conduct detailed risk assessments and gives examples that can be used by plant engineering in assessing and preventing catastrophic loss.

If you are at a larger organization obligated to full disclosure under the WARN Act, I advise formalizing your accident investigation process before you announce any closures. This means supervisors and managers have been thoroughly trained in accident investigation techniques by someone well versed in the subject (insurance broker, workers’ compensation loss control representative and/or certified safety professional)

Also, document your process for prompt communication with your insurance claims representatives. Legal counsel should actively advise you on handling such claims as the business closes. Don’t wait for a change in your business. Regardless of size, every company should have a high-quality, quick-action, accident investigation process to prevent fraudulent claims and, more importantly, the reoccurrence of loss. Strive to build a “resilient organization.” For a MOC system to function effectively and prevent loss, management, engineers, supervisors and workers, need to be trained to recognize which deviations are significant enough to trigger

Change Checklist

further review. Planning and preparing procedures such as non-routine operating, installation, cleaning and others with well-defined limits is essential. Once onsite, personnel should be trained and aware of upper management’s commitment to MOC to make informed judgments (see Chemical Safety Board Safety Bulletin in the helpful resources). z

Sources and Helpful Links

Example Management of Change Policy, University of Notre Dame (retrieved 2/10/24)

https://bit.ly/MOC-20 (pdf)

Management of Change: Examples from Practice, Manuele, Fred, (2012), American Society of Safety Professionals, Professional Safety, pp 35-42

https://bit.ly/MOC12 (pdf)

Safety Alert—Management of Change Failures, (retrieved 2/10/24)

https://bit.ly/MOC-17

Management of Change, US Chemical Safety Board Investigation Safety Bulletin (retrieved 2/10/2024)

https://bit.ly/MOC-01 (pdf)

Managing Change in the Digital Era: Five Lessons for Leaders

Marone, Mark, dalecarnegie.com (retrieved 2/11/2024)

https://bit.ly/MC-dc

Manufacturing changes and non-routine tasks can lead to accidents. Consider the following to prevent loss. (Not an exhaustive list!)

❑ Safety assessments of machines before purchase (both new and used)

❑ Risk assessments before implementing manufacturing process changes

❑ Safety training for all employees to identify and correct hazards within their authority

❑ Test and validate manufacturing changes before full implementation

❑ Provide time and opportunities for knowledge transfer during transitions

❑ SDS review for new materials being considered — chemicals, wire, and coated wire

❑ Non-routine task procedures (dust collection cleaning and explosion procedures controls)

❑ Electrical power survey, including markings to prevent arc blast

❑ A means for employee safety concerns/ideas to be reported and addressed

❑ Review mandated EHS policies and procedures and ensure responsibilities and accountabilities are assigned at all levels

❑ Complete chemical inventory and all associated SDS are readily available

❑ Emergency Action Plan addresses shelter in place, evacuation, spills and workplace violence all addressed

❑ Complete/partial-loss contingency

❑ Contingency plans — prevent preparations to reduce business interruption

❑ Monitor the system changes implemented through inspections, audits and feedback to address EHS concerns

❑ Stay current on regulatory changes through trade association meetings, professional organizations, periodicals, news services and consultants

Dan Sebastian

Dean of Springs

When it is Time to Go

In the late 60s, I started my career as a metallurgical engineer at a research and development center. It was a great transition from academia as I searched for my place in this world.

I took with me a “career and life plan” a professor had me write as a class project. It was the first time I was asked to consider the end of a career I’d spent so much time preparing to begin. Years later, I found that plan when it was time to leave my corporate cocoon. It renewed my belief that we must all have an exit plan.

When I arrived in Logansport, Indiana, I joined a business neglected by its corporate parent and led by an unprepared team with no exit plan.

Our bankers’ exit plan was a sale to minimize their losses. But, we assembled a leadership team of experienced springmakers to quickly lead the company back to a strong position in the spring industry. Our team was so successful the bankers wanted a sale to capture their investment.

During the selling process, we met a prospective buyer who asked for our exit plan at the initial meeting. I found it an odd request. But soon realized it was the same question my professor asked me many years ago. You must know what success looks like when you’ve reached your goals and have a plan when it’s time to go.

Our leadership team kept an exit plan in focus over the years as multiple owners came and went and were rewarded for their ownership stake.

Every company needs an exit plan regardless of the type of ownership transition. This is especially true if you plan to exit by succession to family, friends or employees. The key here is to understand the value of your business in the marketplace. To paraphrase the great engineer, management consultant and author, Joseph M. Juran, “the language of business is money.”

Here are five key drivers in an exit plan to maximize your business’ value:

1. What are your earnings? Earnings are the strongest factor in determining the value the market places on a business. The marketplace values consistency and demonstrable growth. Bankers call it the “quality of earnings.”

2. Who is the buyer? Understand the buyer and the reason for their interest.

• A strategic buyer (a buyer in the business or the supply chain) may look beyond earnings and focus on how your core business can add value to their company.

• A family buyer may focus on the legacy of the business.

• A financial buyer (a buyer requiring bank loans) focuses on earnings. The formula they use to determine your valuation is based on a multiple of your earnings. This multiple is market-driven, and it varies with the type and size of the company.

3. Who are your customers, and what markets do they serve? Your customers, your percentage of their business and the markets they serve are also important. Any buyer wants to ensure the market is sustainable and has growth potential.

4. What are the experience and skill levels of your employees? The overall skills, length of service, age and number of employees are very important to the future owner. You can’t control what a future employer will do, but it’s important to understand their intent. At MWI we frequently gave employees a bonus when there was an exit.

5. Who is the leadership team? A critical part of value is the strength and quality of leadership post-exit. In the spring business, the owner is frequently the technical or manufacturing expert. The number of qualified leaders remaining after the exit can significantly impact the valuation.

As springmakers, we constantly face challenges unique to our industry. Preparing for an exit can also be problematic. Don’t try to exit without help. One of the benefits of SMI membership is the ability to talk with other springmakers about their experiences.

Another good source of help may be your banker who should be familiar with the current market conditions. The five key drivers above should provide the basic steps to prepare you before you take any formal action. They are also basic management practices to focus on in your everyday operations. z

Dan Sebastian is a former SMI president. 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.

Contact Sebastian at SMI: 847-450-6848.

C. Richard (Rick) Gordon

Designing Compression Springs Using SMI’s ASD Software

The Winter 2024 issue of Springs contained an article, “Back to Basics — Compression Springs.” This article presented an approach for compression spring design, highlighting the power of SMI’s Advanced Spring Design software (ASD7) to backsolve when designing a spring.

As many readers of Springs know, Universal Technical Systems, Inc. (UTS) has been SMI’s software development partner for more than 20 years. Todd Piefer, vice president of applications development at UTS, is responsible for

writing the ASD7 software and other UTS software products. He has a wealth of knowledge about the software and springs.

A compression spring design example from the Encyclopedia of Spring Design provides a spring design methodology. As shown in the 201 Compression Spring Design class, there is an alternate, quicker solution using the ASD7 software. This article will demonstrate the power of the software to backsolve.

Spring Design Example

This is a case in which spring designers are given certain spring design criteria but need to decide on the diameter of the round wire to start with.

A compression spring with squared and ground ends is required to work in a hole of diameter DH = 40 mm (1.575 in.) and exert load one, P1 = 275 N (61.8 lbf) at a height of L1 = 60 mm (2.362 in.) and load two, P2 = 500 N (112 Ibf) at a height of L2 = 50 mm (1.969 in.). Additional information is that the spring will operate under static conditions at room temperature. In addition, the spring must not set when compressed to solid height. The material selected for this example is ASTM A229, Oil Tempered (OT), Commercial.

As a general guideline, the outside diameter of the spring is assumed to be 95% of the hole diameter for clearance between the hole and outside diameter of the spring. This is simply a starting point for the design calculations. The value can be modified as part of the spring design optimization process.

ASD7 Background Information

Figure 1 shows a screenshot of the opening window of the software showing the 47 different spring types or loading options available.

Once the compression spring icon is selected, Figure 2 shows the compression spring data input screen.

Default options include:

1. Material = ASTM A228 Music Wire

2. Winding Direction or Hand = Optional (Right Hand is Applied When Optional is Selected)

3. Grade (Tolerance) = Commercial

4. End Type = Closed and Ground

5. Auto Adjust Inactive Coils = Check

6. Units = US

Figure 1. ASD7 opening screen showing the 47 different spring types or loading options available.

Figure 2. Compression Spring Data Input Screen.

Alternate defaults for units and grade can be selected from the “Tools” menu, “Options,” to suit the designers’ preferences.

Clicking on the down arrow to the right of the materials field shows the 45 different material selections available. As shown in Figure 3, ASTM A229 OT, Commercial is highlighted for this example.

Next, clicking on the ellipsis button to the right of the materials field shows the material properties included in the software for ASTM A229 OT Commercial as shown in Figure 4. Data shown includes: density, bending modulus (E) [aka Young’s modulus and modulus of elasticity], torsion modulus (G) [aka modulus of rigidity and shear modulus], allowable percent bending (APB) which is the allowable bending stress as a percentage of the minimum tensile strength, allowable percent tensile (APT) is the maximum allowable torsional stress as a percentage of the minimum tensile strength, percent tensile to set (APTP) which is the percentage of tensile strength at which the material will take a set.

APT is the value that determines when the diagnostic triggers for an overstress condition and is different for each material. In this example, this is the value we will use to backsolve for wire diameter. For ASTM A229 OT, Commercial, APT = 45%.

Values used to calculate the tensile strength for each wire diameter are included. Todd has modeled the tensile strength data included in the ASTM A229 specification, which allows for calculation of minimum tensile strength for each individual wire diameter.

ASD7 Solution

Figure 5 shows the input data screen for our spring design example. We entered a value of 44.9% (<45% APT) in the corrected percent of the MTS field at solid, which resulted in a calculated wire diameter of 4.849 mm. As a next step, the 44.9% value was removed from the corrected percent of the MTS field, and a value of 4.90 mm was entered in the diameter field. This resulted in a satisfactory design with no design warning, as shown in Figure 6. A 3D image of the spring just designed is also shown.

Summary

A compression spring design example introduced users to the ASD7 software. In this example, the backsolving capability of the ASD software was demonstrated for calculating the wire diameter required to meet the spring design criteria. Hopefully, this example will be useful to new and experienced ASD7 users. z

Figure 3. Material Selection = ASTM A229, OT, Commercial.

Figure 4. Material Properties Data Screen for ASTM A229 Oil Tempered Commercial Quality Wire.

Figure 5. ASD7 Data Input Screen for the Spring Design Example Showing the Calculated Wire Diameter Arrived at by Backsolving.

For a more detailed treatment of compression springs, be sure to enroll in the next SMI 201 Compression Spring Design webinar, Thursday, April 18, 2024, 1– 5 p.m. ET.

To register for this class or others, visit https://bit.ly/SMItech.

C. Richard (Rick) Gordon is the technical director for SMI. He is available to help SMI members and non-members with metallurgical challenges such as fatigue life, corrosion, material and process-related problems.

Contact Gordon at 574-514-9367 or c.richard.gordon@gmail.com.

sales department sales@bbspringtechnology.com

service department service@bbspringtechnology.com

BB Spring Technology SRL Via

Figure 6. ASD7 Final Design Data Input Screen Including a 3D Image of the Spring.

EXIT STRATEGIES

By Phil Sasso

What do you think when you hear the term “exit planning?”

Does the word “exit” make you cringe? Would another word make it easier to discuss?

“Discussing exit does prompt a negative reaction nine times out of 10,” says Chris Snider in his exit planning book “Walking to Destiny: 11 Actions an Owner Must Take to Rapidly Grow Value & Unlock Wealth” (Book Corner p. 57). But it’s not the word that evokes fear and negative emotion, says Snider, it’s the process. “Over the next 10 to 20 years, we will likely see an unprecedented set of business exits. How ready are we as owners? Statistically speaking, not very,” Snider says. When Snider became a Certified Exit Planning Advisor (CEDA), he was stunned to learn the sad state of business transition rates:

• 70% to 80% of businesses put on the market don’t sell.

• Only 30% of all family-owned businesses survive into the second generation, 12% survive into the third generation, and

• Three out of four business owners surveyed “severely regretted” the decision 12 months after selling

Although anecdotal evidence suggests that most springmakers beat those odds, that doesn’t make the exit decision or the planning process any easier. As you review this special section remember forewarned is forearmed.

Personal Experiences

Rather than a separate exit process, Dan Sebastian says exit planning might be best integrated into the day-to-day business planning process in his Dean of Springs column “When it is Time to Go” (p. 17). When he was in leadership at a Midwest springmaker, the team learned to keep a perpetual exit plan in place. The company survived and profitably changed hands several times. Preparation and planning are important. The unexpected happens in life and business.

“From Sorrow to Success” (Flashback p. 32), we look at an excerpt from a 1974 Pittsburgh Press article about the unexpected death of springmaker Alphonse Fazio and the amazing job his wife, Jane Fazio, did at taking over the family business in 1959 —an era where women in business were outliers. In a parallel Women in Springs story, “A Lesson in How to Pass Along a Legacy Without Losing the Spark” (p.40), the next generation of Fazio leadership at Diamond Wire Spring Co. includes the sales management success of “Mrs. Fazio’s” daughter, Nina Fazio Williams.

Professional Opinions

In our main feature section, our experts delve into three of the most common transition options for spring manufacturing businesses.

Succession — John L. Ward and Stephen L. McClure of the Family Business Consulting Group outline a basic playbook for succession in “15 Guidelines for Family Business Succession” (p. 24). Their overarching message is that intergenerational transfer is a long, delicate process, but following practical steps other family businesses have navigated can streamline the multi-year process.

Acquisition — Paul Menig, a guest on the new edition of the Springs Are Everywhere podcast, lists “Seven Levers to Grow Your Business Value” (p. 28), Menig focuses on how to build value and prepare your business for sale to an outside buyer. He clarifies that building value is not an overnight proposition and outlines seven of the 25 levers that could maximize the return on your career’s investment.

Employee Stock Ownership — Besides transitioning your business within your family or selling it to an outside buyer, you might consider allowing your employees to take ownership — literally. In “ESOP as an Exit Strategy,” (p. 30) Liz Hickcox, partner and fiduciary investment advisor to the SMI 401(k) retirement plan program, clarifies the financial and practical considerations of launching an ESOP (Employee Stock Ownership Plan).

Practical Advice

In her Be Aware column, SMI’s regulatory compliance consultant, Dr. Laura Helmrich Rhodes explores how “Change Often Leads to Unforeseen Accidents” (p. 13). “If you’re planning a merger, acquisition, or generational change that can create significant upheaval, consider using the broad-based checklist at the end of this article.” The list includes various ways to ensure safety during a transition.

Back to the “Walking to Destiny” book. Snider says one of the most fundamental ways to increase business value is to build what he calls your four intangible capitals (4Cs): human, customer, structural, and social. If you plan to transfer the business to family and believe you don’t need to worry about driving up value, Snider says think again.

“Understand that, to unlock your business’ wealth, you still need to transition it to someone — if not an outside buyer, then perhaps to family, a partner, a management team, or employees,” Snider writes. “If you choose any of the ‘inside’ options, you will likely not have a big liquidity event at the time of your exit. You will need the business to perform as well, or even better, to get all your money out of it. And you will not be around to make sure that happens. Strong 4Cs mitigate that risk.”

Exit planning isn’t about building everything around a one-time event. It’s about building a scalable, profitable, and transferable business. Inevitably, your business will change hands. Will it be on your terms or someone else’s? z

Most Businesses Not “Exit-Ready”

In “Walking to Destiny” (Book Corner p. 57) Christopher Snider cites a 2013 “Owner Readiness” survey by the Exit Planning Institute that indicates, although many business owners think they know the value of their business, most are largely unprepared for a planned or unplanned exit:

• Two-thirds of owners don’t know all their exit options

• Half of owners need a profitable business after the transition

• 78% have no formal transition team

• 83% have no written transition plan

• 49% have not done any planning

• 93% have no personal life-after-business plan

• 40% have no plan for illness, death or forced exit

• 86% have not done a strategic review or value enhancement project

• 56% believe they have an idea of their business’ worth, yet only...

• 18% had a formal valuation within the last two years

By John L. Ward and Stephen L. McClure

15 Guidelines for Family Business

Succession can be a painful and critical time for a family business. Less than one-third of family businesses survive into the second generation, and only 13% make it to the third generation.

How do the successful ones make it? Based on our work with hundreds of family businesses, here are 15 guidelines for successful succession.

1

Succession is a process, not an event

Rather than think of succession as an event that happens on a designated day, consider it a process that takes place over a long period of time. Parents should begin to lay the groundwork for succession while their children are still young. Consider how you talk about your business at home.

Imagine being a child. Your parent comes home complaining that three key people quit, a customer didn’t pay his bill, a supplier sent the wrong order and the bank threatened to pull the loan. Then, they turn to the child and say, “Someday, this will all be yours.”

The truth is most family business owners love their work. However, humans tend to talk more about the bad than the good. So, make a conscious effort to present a balanced perspective to the next generation so they understand and appreciate the business.

2

Present the business as an option,

not an obligation

Many parents hope their children will follow in their footsteps. But some fall into the trap of overselling the family business. Others never discuss the subject because they want to avoid pressuring their children. The key is to present it as an opportunity, not as an obligation.

Parents should encourage teenagers to look at career options, but it may be too soon for your teen to choose a career path. They may find the family business rewarding and fulfilling, but it’s not the easiest or only way. It’s just one of many options. Children should be welcome to join the family business or follow their own path.

That conversation may be hard, but unconditional support during your child’s high school years gives them a healthy chance to consider options.

Succession

3

Encourage outside experience

Of the hundreds of family business successors we’ve interviewed, those with outside experience said they’d recommend it. It allows successors to build their identity, gain knowledge, grow self-confidence, make mistakes and learn to take criticism.

But perhaps the best thing they will learn is there’s no perfect boss or perfect business.

Our recommendation to the next generation is to work for someone else for three to five years. If that’s not possible, there are other ways to get perspective, such as trade association involvement (like SMI), community volunteerism or networking with other family business successors.

Parents may find it hard to believe their children will return after working elsewhere. But the odds are better than two to one that they’ll return. Magnetism to the family business generally increases with age.

4

Hire into an existing job

It’s crucial to hire your child into an existing, defined job. It will help you better gauge pay and expectations. Your staff will also know how your child fits the hierarchy and how to treat them. Often, children get ill-defined jobs. Parents assume children can do anything that needs to be done. But this can open the door to resentment. Sometimes, employees doubt that the second generation is qualified to lead the company. Don’t set your child up for failure by giving them an overwhelming and undefined job. Instead, create a situation where progress can be measured.

6

Teach the foundations

5

Encourage complementary skills development

After the next generation has entered the business, encourage them to develop skills that complement yours. Your skills are probably well ingrained into the business. If the parents are super salespeople, then the children might bring operations or information system skills to the business. If the parents focus on making it or inventing it, then the next generation might be best to understand market segmentation or break-even analysis.

You need to be secure to allow your child to contribute. Would your business be better off having a next generation who only duplicates what you have done? Focus on being supportive.

One of the most valuable things one generation can give the next is an understanding of the business’ historical, cultural and strategic foundations. It’s important for successors to grasp the underlying principles that hold the enterprise together.

As the business founder or second-generation leader, you may be too close to articulate these foundations. If so, let a key employee train your child, explaining how you do things and why. For example, instead of just showing your child how to treat customers, the key employee should explain how your customer service policy evolved and the current policy’s advantages.

7

Start with mentors

When successors enter the business, they should work for a mentor rather than a parent.

The mentor should be one of your most valuable, loyal, secure and tenured employees. That person may be your alter ego, the one who does everything you don’t choose to do.

A word of caution, even if you’ve made it clear you intend to keep your business in the family, an employee may believe she is more qualified and deserves to lead the company. That employee may attempt to undermine your successor’s efforts. Keep your eyes open. You may have to offer the employee two options: recognize the successor’s role or leave the company.

8 10

Designate an area of responsibility

Next, give your successor welldefined areas of focus. As your child gains experience and competency, increase the responsibility. You are working toward a smooth succession by assigning pieces of the business rather than all at once.

Think of succession as a “relay race.” In a relay, one runner is moving, and the other has to catch up for the baton handoff. Your business will transition smoother if the next generation runs next to you at full speed to create a seamless exchange.

9

Develop a rationale

We’ve described the ideal transfer. But what if somebody breaks stride or stumbles? It happens. The transfer zone can be a harrowing period. A parent may grieve leaving the business, and a child may feel stress.

There may be disagreements over money, power or readiness. How do you resolve these?

Recognize you’re not alone

It often helps families to know they’re not alone. All family businesses face the same complex issues, such as business valuation, transition timing and titles. These issues are difficult for everyone. Knowing that can often make them easier to face.

How family members respond to these issues is relatively predictable. Mothers are often overprotective. Fathers tend to think they’re invincible. Firstborn children tend to be hard-driving and achievement-oriented. Youngest children rarely take anything too seriously.

Rather than label your family as dysfunctional, recognize it’s natural for each member to act as they do.

Conflicts are universal. So learn from others who have faced them. Consider joining family business forums or support groups. Not only will you see how others resolve their issues, but you may also realize you are not as bad off as you may think.

11

Have family meetings

Good communication is essential to any transition. Sometimes productive communication occurs spontaneously — other times, you need to plan for it.

The current generation and the successor should consider creating a written rationale statement explaining the purpose and value of this transition. When things are painful, you can both refer back to your rationale. When things get tough, you can remind yourself of your purpose.

One method is to get the family together for a meeting to discuss important matters. Sometimes, holding these meetings at a neutral location, such as a resort or restaurant, is best. Other times, it is best to sit around the kitchen table.

How do you begin? Start by selecting a topic and a moderator. Keep things informal and relaxed so that everyone can participate comfortably.

The benefits of these meetings typically include a feeling of unity (or team building), a clearer focus on the issues and a better understanding of the family’s range of perspectives.

12

Plan, plan, plan

Long before the succession takes place, current leadership should draft a business plan, an estate plan and a succession plan. We know we’re asking for the near-impossible. But it works. It’s best to write these plans simultaneously because they influence each other.

This is not, however, a do-it-yourself project. Get help from your accountant, attorney and an organizational development expert. Your job is to bring these experts together and develop plans to guide you through the succession period.

It’s not easy or quick. However, the long-range benefits of this approach cannot be overstated.

13

Create an advisory board

We recommend advisory boards for all small businesses. They’re a valuable sustaining resource. The board should include the above-mentioned lawyer, accountant and organizational specialist, and at least one leader in your industry whom you respect. The business owner often offers the board members an honorarium instead of a salary. If liability issues are a concern, call the board a council. In any case, you’ll benefit from group discussions of important issues.

Conclusion

Perpetuating a family business is the ultimate management challenge. You can increase your chances for success if you realize that succession is a long process that may take 15 or 20 years to complete fully.

Fortunately, there has recently been a sharp increase in helpful resources (books, journals, support groups and conferences).

If you surround yourself with support, plan ahead and are candid with your family and staff, you’ll find yourself on the road to successfully transferring your business to the next generation. z

14

Set a date

As you go through the planning process, you’ll be able to determine a realistic and financially advisable transition date. When your plans are established, you should know precisely when the leadership evolution process will be complete, and you should be ready to hand your business over to the next generation. You must be fully committed to that date so your staff is aware of the plan and your successor can depend on you to follow through with it.

Again, succession is a process. Preparing your successor, your business and yourself are all important components.

15

Let go

At the end of the transition process, many founders decide not to complete the transition. Or, even worse, many decide to return two or three years after they’ve left.

Letting go is a complex and difficult process that should not be underestimated. You may know founders in their 60s who fear giving up their identity if they leave the business.

If you’re financially tied to the business, it can feel impossible to let go.

One of the central goals while writing your business plan, estate plan and succession plan is to create financial security not tied to the business. It’s best if you are financially independent — if you aren’t, it will be hard to resist the temptation to interfere.

John L. Ward is a co-founder of The Family Business Consulting Group and an expert in continuity, ownership, governance and philanthropy. He has authored or co-authored family business books, including “Perpetuating the Family Business,” “Family Business as Paradox” and, with Craig Aronoff, books in “The Family Business Leadership Series.” Ward also served as co-director of The Center for Family Enterprises at Northwestern University’s Kellogg School of Management.

Stephen L. McClure is a principal consultant with The Family Business Consulting Group, specializing in making family ownership a competitive advantage. He assists family firms with communications, decision-making, governance and succession planning. He has co-authored books on family business succession, family councils, compensation and working in a family business. He is a frequent speaker on family business topics.

To contact the Family Business Consulting Group, call 773-604-5005, email info@thefbcg.com or visit thefbcg.com.

You will exit your business at some point. It can be forced upon you by circumstances such as death, disability, disagreement, divorce, disaster, debt, or dissolution. But, it’s much better to exit on your own terms.

As part of the spring industry, you probably know a thing or two about springs, such as Hook’s Law: F=kx (Force (F) equals constant (k) times (x) the displacement or change in length). So, you understand that many decisions, designs and processes predetermine the end product.

The business equivalent of Hook’s Law is EV = Multiple x EBITDA (EV is enterprise value, and EBITDA is earnings before interest, taxes, depreciation and amortization). That multiple is your “business constant.” But, it is not constant — there are many ways to change both the constant and the EBITDA. Changing the business constant will have an outsized impact. Here are seven levers you can use to improve your business’s attractiveness well before exiting.

1 Effective Senior Leadership

Buyers want to know your business can run without you, make enough money to pay back any debt they assume and create a reasonable ROI (return on investment). If you spend all your time fighting fires and making all the decisions, your multiple will be lower. On the other hand, if you can take a month-long cruise and not have to answer the phone, respond to texts, deal with email or signoff on quotes, your multiple will be higher.

By Paul Menig

2 High Percentage of Recurring Revenue

Buyers like the assurance that a stream of money will be coming into the business. For example, subscription revenue and ARR (annual recurring revenue) are key to software businesses providing such large business constants in their valuations. Whereas a small service business may have a business constant of two, software businesses often have a business constant of 30. One thing you can do is have three to five-year contracts with your customers. If you provide equipment to springmakers, offer some sort of annual inspection or tune-up. Or offer remote diagnostics and predictive diagnostics.

3 Strategic Vision, Planning and Execution

What business are you in? I helped one company reframe its business from making small motors to being in the motion control

Seven Levers to Grow Your Business Value

business. Now, it is all about what the motors can achieve, such as eliminating shoulder injuries and speeding deliveries for UPS drivers who must repeatedly open and close the door between the driver area and the package area for security. Do you have a plan to achieve growth in your business? Do you hold people accountable for achieving increased sales, higher reliability and faster production?

4 Unique Products/ Services

Commodities are not highly valued by buyers. However, if you have specialized skills and have made springs for Ferrari race cars, then you’ve got some unique capabilities. If you can manufacture tiny titanium springs for heart pacemakers, you have something unique in a growing market as the population ages. A company that does computer-aided design and helps the end customer with a Failure Modes Effects Analysis (FMEA) has a higher business constant than one that is a contract manufacturer forced to deal with low margins.

5 High Growth Compared to Market

This is tough for a mature product market such as springs — but not impossible. One method is to find the niche that is growing. That could be medical equipment or robotics. Another method is the opposite of selling your business but merging with or acquiring another business. It could be in the same market, or it could be one in a different market. For example, it might be a design company if you are a contract manufacturer. Or you could outperform the industry standard for sales and service so that you gain market share from direct competitors.

6 Accurate and Credible Financial Reports

Most privately-held businesses do not have independently audited financials. Many have no outside review or quality of earnings assessment. I often cite a company I know that listed a guard dog with food and veterinary costs in the business where the dog had never been on site. Owners of small and medium businesses sometimes practice “creative accounting.” Buyers will want to see very clean and understandable finances with the owner

getting a reasonable salary rather than one that minimizes taxes and maximizes the owner’s income. Buyers will restate your financial statements as if they owned the company to better determine the potential EBITDA.

7 Strength of M&A Market

Alas, you cannot control every aspect of your business constant. The M&A market was frothing in 2020 and 2021. Today, it is a much different picture. Higher interest rates have made the cost of borrowing for acquisitions higher. The loss of experienced personnel over the last few years and the challenge of hiring new people have made acquisitions more difficult. Business constants of 10 seen not long ago are now closer to six — even for the best companies. That impacts your valuation. Let’s say your company is producing $2 million in EBITDA. A ten business constant (10x multiple) yields $20 million in gross proceeds before fees and taxes. That six business constant yields a much lower $12 million.

Final Words

Owners of good businesses with growth potential will smile much more broadly and exit on their terms when they want to rather than being forced to exit. As a smart springmaker, you can design a spring to achieve your customer’s needs. As a smart business owner, you can design your business to convince buyers that you have maximized your business constant. z

Paul Menig is CEO of Business Accelerants. He prepared “Observations on the Spring Industry & Recommendations for the Future” for SMI in 2016. Menig believes there is always a better way; he knows how complex things can be and how to simplify and make them clearer.

Learn more about Menig at his website, businessaccelerants.com, or on LinkedIn at linkedin.com/in/paulmenig. Contact Menig at paulmenig@businessaccelerants.com or 971-222-5683.

Free Workshops

SMI members are invited to attend one or more free, virtual workshops to explore all 25 levers that impact the business constant. If you are interested, contact Gary McCoy at gary@smihq.org or 847-450-6240, and it will be arranged specifically for SMI.

By Liz Hickox

ESOP

as an Exit Strategy

As the adviser to the SMI member multiple employer 401(k) plan, I work directly with owners to help offer their employees bestpractices retirement plans. Our goal is to help their valued employees achieve a successful retirement.

I also often encounter owners contemplating their own retirement and exit strategy or succession plan. They ask themselves, “How do I turn years of hard work and sacrifice into a successful retirement for me and my family?”

If this is you, perhaps your children, grandchildren and heirs who are involved in your business would like to take the reins one day. Generational transfer can be a very efficient and rewarding strategy when implemented correctly. Maybe you are looking at selling to private equity. Or it could be that current management is open to an MBO (Management Buy Out).

Another effective and increasingly popular method of ownership transfer is the Employee Stock Ownership Plan (ESOP). This strategy can ensure a smooth transition and offers a range of benefits to both the owner and the employees that helped you achieve your success.

About ESOPs

An ESOP is a type of employee benefit plan that gives your workers ownership interest in the company. It can align the interests of the employees, give them pride in ownership of the company and create a smooth transition. It can also create liquidity for the owners.

Essentially, an ESOP involves setting up a trust fund to which the company contributes new shares of its stock or cash to buy existing shares. Alternatively, the ESOP can borrow money (leveraged ESOP) to purchase new or existing shares from the owner and employees. The company then makes plan contributions to repay the loan. This is particularly beneficial in manufacturing, where capital investments can be significant, and employee engagement is crucial for success.

For spring manufacturing owners whose company legacy and continued operation are often of paramount importance, ESOPs offer an elegant succession solution. By selling your business to an ESOP, you can gradually transition out while ensuring the business continues in the hands of ownership who are genuinely invested in its success — your employees.

Counting the Costs

ESOP plans typically benefit closely-held corporations with a feasible business model and a strong employee base, like many springmakers. The process involves a fair amount of legal and financial structuring. While ESOPs do offer an array of benefits for owners and employees, it comes with upfront and ongoing costs and administrative maintenance.

The cost to set up an ESOP can be substantial, especially during the first year of the plan. Currently, legal and administrative costs to set up a plan average $75,000 or more, including valuation. Ongoing trustee reviews are approximately $20,000, and recordkeeping can average $2,000 to $5,000 a year. Adding a professional plan adviser can cost approximately 1-3%.

Tax Benefits

From a tax perspective, owners can reap significant benefits. If certain conditions are met, owners who sell to an ESOP can defer and potentially eliminate capital gains taxes on the sale of their shares. This can result in substantial tax savings, particularly for owners of profitable manufacturing businesses.

For the company, contributions of stock are tax-deductible: the company can get a cash flow advantage by issuing new shares or treasury shares to the ESOP. Furthermore, dividends used to repay an ESOP loan passed through to employees or reinvested by employees in company stock are tax-deductible.

Employees also benefit from favorable tax treatment. Contributions to the ESOP are made in pretax dollars, and employees pay no tax on the contributions until they receive the stock when they leave or retire, at which point they are taxed at potentially favorable rates. (Be sure to consult with your accountant or tax professional regarding your specific situation.)

An Employee Retirement Tool

For employees, ESOPs are a powerful tool for retirement savings. They provide employees with a beneficial ownership stake in the company, which can be a significant retirement asset. Financially, employees stand to gain as company shareholders, potentially reaping the rewards of its growth and success.

Case studies have shown that manufacturing businesses that have implemented ESOPs often experience increased productivity, higher employee morale, greater retention, increased resilience and a stronger company culture, leading to overall business growth and success.

Pride in ownership often spurs employee productivity and engagement. “If you could get all the people in the organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time,” says Patrick Lencioni in his book “The Five Dysfunctions of a Team.”

The Fine Print

With its capital-intensive nature and reliance on skilled labor, the manufacturing sector is particularly well-suited for ESOPs. But, be aware, implementing an ESOP in a manufacturing business requires careful planning and consideration of the company’s specific needs and an upfront and ongoing financial investment.

Overall, ESOPs present a unique and beneficial opportunity for small- to mid-sized companies in the manufacturing sector. They offer a viable succession plan, significant tax advantages and a way to reward and motivate employees. As you contemplate the future of your business, considering an ESOP could be a strategic move, benefiting both you and your valued employees. Consult an ESOP specialist to explore how this strategy could be tailored to your specific business situation. z

Liz Hickox has over 40 years experience in the financial services industry and serves as partner and fiduciary investment advisor to the SMI 401(k) retirement plan program. She specializes in qualified plan oversight and executive compensation and serves the complex financial planning needs of individual small business owners and their valued employees. Hickox holds the Certified Investment Manager Designation (CIMA®) from the Investments and Wealth Institute (IWI) and the Wharton School of Business, as well as the Certified Private Wealth Advisor (CPWA®) through IWI and the Yale School of Management.

You can reach Hickox at Liz@newportcfp.com or 401-236-2350.

Flashback

From Sorrow to Success

By Margie Carlin

Editor’s Note: In this edition of Flashback, we feature an excerpt from a 1974 story in the Pittsburgh Press on Jane G. Fazio, the 40-year-old woman who took over Diamond Wire Spring, Co. in 1959 after the sudden death of her husband, Alphonse.

A graduate of Northwestern University, Fazio found herself alone with seven children aged 11 months to 14 years, and a business in which she was not previously involved.

In May 1993, Fazio passed away from breast cancer, which she fought for 12 years. She traveled the world and was involved in the business until a few months before her death, said her son Don Fazio, the current chairman of Diamond Wire Spring, an SMI member company.

Fazio’s daughter, Nina Fazio, featured in the “Women in Springs” section of this issue (p. 40), continues to be involved in the family business.

Jane Fazio is president of Diamond Wire Spring Co., North Hills, Pennsylvania. Her factory turns out all sizes and types of industrial springs.

Fazio concentrates on serenity, and with her clear, fresh skin, blue eyes, trim figure and easygoing manner, she doesn’t look at all like the successful president of a booming company with sales close to $2 million.

Her husband, Alphonse, died in 1959 at 49 of a heart attack. He left the 12-year-old Diamond Wire Spring Co. debt-free and with annual sales of $500,000; a wife who never hankered for a career; and seven children, five sons and two daughters, aged from 14 years to 11 months.

The company today employs 65 people and has just opened a branch in Greenville, South Carolina, under the direction of Fazio’s oldest son, Arthur, 29.

Stays Serene

Fazio thinks her philosophy of remaining calm pulled her through when her husband died.

“He had his first heart attack in 1958, but he seemed to get all right. We never talked about his dying, because we had faith he would be all right.

“But then he had the second attack, and he told me, ‘If anything happens to me, you’d better sell the business.’ But I said, ‘I couldn’t. Not after you worked so hard. I couldn’t forgive myself if the children grew up and wanted to know why I didn’t do the best I could.’”

“He said, ‘All right. But if anything happens, call Bill D., he’ll help you. He knows all about the spring business.’”

That piece of advice — for her to get good managers and rely upon them — has been the making of Fazio as an executive.

“I do oversee everything, and make final decisions. And we do have a board of directors and meet formally four times a. year. The directors are friends, too. When I need advice, I can call on them,” Fazio said.

When Fazio was faced with widowhood and the prospect of raising seven children alone, she said she took a stoic approach.

“I’m just not a panicky person. Religion is important to me. I’m a Catholic. I spent a lot of time praying. I can remember telling myself over

and over that we would make it, then spending a lot more time praying.

“My primary interest was the children. I was just determined to do the best I could. To raise them the way Al would want me to. His major interests were the family and work.

“He was such an intense man. Kept everything inside. He never complained, but I guess he worried too much and worked too hard.

“His dream was to own his own company. He had been superintendent of a steel mill and left that in 1947 to start the spring business with four other men. He eventually bought them out.

No Women’s Libber

“I can remember him coming home all excited when he got his first $500 order. And I was excited, too, but like a housewife would get excited — nothing more. I never was a woman’s libber — if Al had lived, I would have been happy to stay at home and take care of the family.”

However, Fazio buried her husband on a Saturday in May 1959, and the following Monday, arrived at her company to confer with her employees.

“I knew they would be worried about their jobs, and what was going to happen,” she said. “I told them we would go on if we could.” From the start, Fazio concentrated her efforts on having competent managerial help at the factory as well as at home.

“The man my husband had recommended finally came to work for us and stayed about five years. He was very good.”

Fazio doesn’t claim to know everything about every spring and coil her company turns out. She sees her job as “an overseer — to make final decisions after studying all the information I can get.”

From the beginning, her major concern was the children.

“But considering how many there were, we didn’t have too many problems. Maybe they realized they’d have to help me. The boys were always interested in sports. We had some things happen, but never anything big, just the usual things that happen in all families.

“If I was really worried, I’d go to Mass and pray it out. It worked. It was a support.”

Hobbies? Fazio just laughed.

“With seven children, who has to worry about spare time? I was always busy every minute.”

Five Fazio children have completed college, and three are associated with the family firm. Four are married, and there are three grandchildren.

“My happiest times are when I can get all the children around me. They are my real success story, and they make all the business worries through the years’ worth it all,” Fazio said. z

Excerpted from the Pittsburgh Press, Nov. 12, 1974, and is used with permission of the Pittsburgh Post-Gazette

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Five Questions

Five Questions allows SMI associate members to tell the spring industry about their products and services. In this edition, we talk with Alan Ortner from Spring Tool Solutions

1 Can you tell us about the history of your company and the products it offers to spring manufacturers?

Spring Tool Solutions was formed in October 2023 with the merger of North American Spring Tool (NAST) and Spring Manufacturer’s Supply Co. (SMSC). NAST was a division of All Five Tool in Bristol, Connecticut and SMSC was a division of Northeast Carbide, Inc. in Southington, Connecticut. Sirois Tool Co., Inc. acquired the assets of All Five Tool in 2012 and Northeast Carbide in 2023. These two divisions were then merged and rebranded as Spring Tool Solutions.

2

What are the latest trends impacting your industry, and what effect is it having on spring manufacturers?

Our customers are challenged to find skilled labor due to retirements and the lack of an experienced labor pool. This is driving some customers to look for more precise tooling because their newer employees lack the “magic” of previous generations of coilers who just knew how to make wireforms and springs.

3 What types of products and services do you offer to springmakers?

Spring Tool Solutions manufactures tooling for all major brands and models of spring coiling machines and some not-so-common brands or machines.

We keep material and blanks in stock so we can quickly finish and ship tooling to our customers. Using our blanks, we can offer customized tooling for a customer’s specific application. We also provide tooling for wire rolling and forming and other related processes. As a division of Sirois Tool, we have the capability to make many other types of tooling, fixtures and gages.

4 What role does logistics play in serving spring manufacturers?

Since most spring tooling is relatively small and lightweight, shipping logistics are not an issue. We have daily UPS pickup and use FedEx as needed. For our local customers here in central Connecticut, we have our own delivery van, and customers are welcome to pick up tools when it’s convenient.

5 Can you tell us about a recent challenge that you were able to solve for a customer?

Customers often grind parts to their needs and desires. A customer was working with a large coiling arbor, but due to the shape they were forming and the machine’s configuration, they were spending a lot of time grinding away material. We worked with them to determine exactly what they needed and were able to provide a ready-to-use arbor to eliminate the additional work needed.

We are often asked: “Which carbide grade should we use?” We help customers extend tool life in their process, based on the material being run or their specific process. Our standard grade for an item usually works for the majority of customers, but when someone is trying to get more out of a tool for their specific process/material, we can help them select a different grade. Often there’s a fine line between tool wear and breakage. z

Alan Ortner

Spring Tool Solutions Sales & Engineering

Victor Antunes or Priscilla Gagon

Phone: 860-583-1693

sales@springtoolsolutions.com

Sirois Tool Co., Inc.

Alan E. Ortner

Phone: 860-828-5327

alan@siroistool.com

Follow SMI on social media for bonus content on Alan Ortner and Spring Tool Solutions.

By Gary McCoy, Executive Director

Springmaker Spotlight

Respecting the Past, Embracing the

Future

A Profile of Don Jacobson III and Newcomb Spring Corporation

At the 2024 SMI Annual Meeting at Coronado Island in April, G. Donald “Don” Jacobson III (affectionately known as “D3” by friends and industry colleagues) of Newcomb Spring Corp. will assume the mantle as president of SMI for the next two years. He has the unique challenge and privilege of being the third Don Jacobson to lead the association, following in the path of his grandfather, G. Donald Jacobson Sr., 1960–62 and his dad, G. Donald Jacobson Jr., 1995–97.

“It’s exciting to know that I’m walking in the footsteps my grandfather and my dad both traveled,” said Jacobson. “It’s going to look interesting in the history books, but it shows that our family and our company have been invested in the industry. That we are always available and always willing to work hand-in-hand with not only our suppliers, but also our competitors to make it a better industry in North America.

“SMI is such a great organization that works with companies throughout North America, and what’s important to me is education,” explained Jacobson. “It’s getting the next generation involved, and it’s also keeping our employees engaged. Education is what I’m going to focus on during my time as president.”

For the past two years as SMI’s vice president, Jacobson has worked hard to find speakers for the SMI annual meeting and, more recently, to fill slots for the upcoming SMI Educational Symposium at SpringWorld 2024.

He has served on the SMI technical committee for many years. He was instrumental in helping introduce SMI’s spring design classes and took the

lead in developing the first class, 201 Compression Springs, which continues to be extremely popular and was the first course taught live. Jacobson has also served as the chairperson of the magazine committee.

Connecticut Roots

Jacobson is a fourth-generation family member and a full-time employee of Newcomb Spring since Dec. 2004. He currently serves as vice president of business development. As a director of Newcomb Spring, he works out of their facility in Ooltewah, Tennessee. He previously worked at the company’s California facility, where he met his wife, Sara. Shortly after getting married, the couple moved to Colorado in 2006 to work at the Newcomb facility. He has worked at the Tennessee location on Springhill Drive for the past 15 years.

His roots hearken back to the Bristol, Connecticut area, which many know as one of the hotbeds of spring manufacturing in the U.S.

“It was an interesting childhood because growing up in the Southington area, there were a plethora of spring manufacturing companies,” said

Don Jacobson III

Jacobson. “Even in elementary school, talking with other kids in my class I found out that their parents worked at other spring shops. It always felt like there was a spring shop around the corner.”

Jacobson’s initial foray into the spring industry was washing windows at the Newcomb Spring facility in Southington.

“My first job involved a ladder, a squeegee and a bucket, and I got to wash some two-story windows, and then they finally let me wash the inside windows,” explained Jacobson. “After that, I got to sweep.”

He said a burst of excitement came when he got his forklift certification, which he earned before he got his driver’s license. “I was helping the guys move wire around and helping unload trucks when I could, before I actually got my driver’s license,” Jacobson explained.

After high school, he enrolled at Babson College in Wellesley, Massachusetts, where he earned a Bachelor of Science degree in entrepreneurial and small business operations in 2001.

Jacobson got valuable experience working on early CNC wire benders and was certified as a spring designer back in 1999 when he was 19. He completed a two-day SMI seminar taught by Loren Godfrey that introduced springmakers to computers for designing springs. Jacobson remembers learning how to design springs the old-fashioned way by drawing them in CAD and faxing drawings to customers.

Before joining the family business, Jacobson cut his teeth selling AFLAC insurance and pursuing several entrepreneurial endeavors while living in California.

A Rich History

Family-owned and operated, Newcomb Spring Corp. is headquartered in Alpharetta, Georgia, and offers additional facilities in California, Connecticut, Colorado, North Carolina, Tennessee, Texas and Ontario, Canada. Newcomb Spring is a worldwide supplier of compression springs, extension springs, torsion springs, wireforms, stampings, rings, hooks and battery contact springs.

The company started in Brooklyn, New York in the 1890s as the Charles A. Cook Company. After a couple of name changes, the company was renamed Newcomb Spring and incorporated in

1921 under the leadership of E.L. Newcomb and George L.C. Jacobson. Jacobson became company president in 1924.

Newcomb Spring has always been active in the spring industry. George L.C. Jacobson helped found SMI in 1933, and Newcomb Spring became a charter member. In 1957, Donald Jacobson Sr. helped found the New England Spring Manufacturers Association (NESMA) and Springs magazine in 1962 while he served as SMI president.

In addition to being elected SMI president in 1995, G. Donald Jacobson Jr. was elected president of NESMA in 1982.

Jacobson’s dad recently retired from the company, now led by his uncles, Robert Jacobson, president and John Jacobson, vice president. The exciting part for Jacobson took place when his son, Joshua, started working at the company last year as an intern, making him part of the company’s fifth generation.

Office Connections

If you get a chance to visit Jacobson’s office in Tennessee, you’ll see an eclectic collection of cultural and family-oriented items. Some are related

We all need to be able to work together because there are plenty of opportunities for all of us to be successful. I love hearing about the growth of some of our competitors because I know that means manufacturing in the U.S. is strong.

Jacobson is pictured inside the Newcomb Spring facility in Ooltewah, Tennessee.

to things he’s done with his wife and three children, Joshua, Noah and Scarlett, which includes a photo wall of different comic book conventions and other activities they have attended. You’ll also see signed art and a pin collection of different theme parks and memorabilia from franchises like Star Wars and Transformers.

Jacobson says bringing a customer to his office allows him to connect professionally and personally with them. He jokes, “If they can’t find something we can connect on, then they have to go!”

Since moving to Tennessee, Jacobson has always shared an office with someone, including five years with his dad until his retirement in 2022. His office includes two desks and a little table.

The second desk in his office was his dad’s, which has now been transformed into a place for his children to use when they visit.

A Passion for Robotics

“On the desk there are projects my sons are working on,” explained Jacobson.

His oldest son, Joshua, likes to play Airsoft, and he has a number of Airsoft springs that he’s trying to design. Jacobson’s middle child, Noah, likes foam darts. “We have a number of foam dart blasters taken apart, and Noah’s

Don Jacobson started coaching elementary and middle school robotics at Our Lady of Perpetual Help Catholic School in Chattanooga in 2021. His teams have earned numerous awards in state and national competitions. He was named the Tennessee Middle School Teacher of the Year in 2022 and has brought his teams to the VEX Robotics World Championships.

I had the privilege of seeing “Coach Don” in action as his teams met on a Friday afternoon the day before a weekend competition in the Nashville area. There was lots of energy from the youngest members in fourth grade to older students in eighth grade. Much of Jacobson’s work was focused on helping the students troubleshoot problems to get their robots moving in the right direction.

Since I visited Jacobson in January, his teams have added six more robotics trophies and all four teams were headed to the state championship in March.

Like all kids at that age, an important part of after-school activities is “snack time.” At Our Lady of Perpetual Help Catholic School in

trying to find ways to re-engineer their springs,” said Jacobson.

Spring Confusion

Like many in the industry, Jacobson has encountered people who have the wrong idea about the products produced by spring manufacturers.

The Newcomb Spring Tennessee facility is 55 years old, and Jacobson remembers talking with a local sheriff’s officer about how the company was building and expanding. “He mentioned, ‘Oh man, that spring water has gotten really popular.’ I turned to him, and I said, ‘Excuse me.’ The sheriff said, ‘You guys make spring water up there on Springhill Drive, and you’re a spring company.’”

Jacobson straightened him out, and several law enforcement officers later came to Newcomb Spring for a tour. “We actually showed them what we did up here, and they were just mind blown,” explained Jacobson. “For a long time, they thought something totally different.”

Jumping in to Help

While Jacobson doesn’t technically work for the company’s Tennessee branch, he’s always willing to jump in and help when needed. “I do help out, especially with set up. I have some machines here that I’ve been learning and it helps me in my business development role.”

Like his work in education for SMI, Jacobson knows that any company in the industry can have the best springmaking equipment in the world. “But someone’s got to set it up. It’s all about the people.”

Chattanooga, snacks have a local tie because numerous Little Debbie-branded products are consumed each week. It’s a local favorite because the headquarters for family-owned McKee Foods is in Collegedale, just five minutes from the Newcomb Spring facility.

“A lot of us talk about the challenge of getting the next generation involved in manufacturing,” Jacobson explained his decision to volunteer his time for robotics. “I felt like I needed to step up and get involved to help kids get excited about technology.

“The Vex IQ program allows students to solve complex engineering tasks with teamwork, creativity and problem-solving,” explained Jacobson. “Best of all, the students get to build and rebuild robots throughout the year. These robots are both driven by team members and are programmed to run autonomously during skills competitions.”

Jacobson believes that with so many openings in the manufacturing sector, programs like VEX are a great way to get the next generation excited about STEM activities.

Jacobson helping a 4th grader identify the correct part to use.

Jacobson working with an elementary school team on their lifting mechanism.

Jacobson is grateful to be a part of SMI’s volunteer leadership team. “It’s been a great opportunity to be part of SMI and on the executive level as we’ve made so many changes. We’ve had obstacles to overcome. We’ve had opportunities, and we’ve definitely, as a team, jelled very well to make decisions that have set us in the right direction.”

Jacobson recognizes how surreal it is to be on a conference call with some of his biggest competitors. “We’re all working together for the same goal. And it’s great. And it’s a hard thing to tell people and explain to people outside the industry that we work like that.”

Jacobson respects his family’s legacy and its role in the spring industry. In his new role as president, he wants to entice more people to attend association events.

“Those who come are blown away by what they experience,” said Jacobson. “A lot of people don’t come, sadly, and they are missing out on so much.”

In addition to great speakers and education, Jacobson recognizes the value of networking as an industry.

“While the spring industry is growing revenue-wise, it’s shrinking size-wise by the number of members,” said Jacobson. “We all need to be

able to work together because there are plenty of opportunities for all of us to be successful. I love hearing about the growth of some of our competitors because I know that means manufacturing in the U.S. is strong.”

In summary, Jacobson is excited to be the next president of SMI. “It’s been a great journey that we’ve been on. My focus will continue to be what it has been for the past six years of education, from top to bottom. How to educate not only office general managers, but also those in the shop and how to educate the community as a whole about manufacturing and spring manufacturing in the U.S.”

Can he accomplish those goals? For those who know Jacobson well, they recognize his willingness to never give up. In this regard, Jacobson frequently quotes from the Star Wars character, Yoda, who said, “Do or do not, there is no try.” z

Middle school students testing their lifting and sorting mechanics.

A few of the 14 trophies the program has won this past season.

By Sara Scullin

Women in Springs

A Lesson in How to Pass Along a Legacy Without Losing the Spark

Nina Fazio Williams Reflects on Her Impactful Sales Career in Springs

Nina Fazio Williams, southwest sales manager at Diamond Wire Spring Co., followed her mother into the family springmaking business. But the direction she took was all her own.

The elder Fazio matriarch, Jane G. Fazio, is a bit of an industry legend. She took on leadership of Diamond Wire Spring in Pittsburgh, Pennsylvania. after her husband died in 1959 at the age of 49 (she was 40).

In that moment of crisis, Fazio decided to keep the family business going. With seven young children at home, she stepped into the role of company president. In the decades that followed, Diamond Wire Spring not only survived but thrived under her leadership (see Flashback, p. 32).

Her legacy continues today under the direction of third-generation family members and a dynamic workforce.

“Mom was an excellent money manager,” Williams recalls. “That was the key to her continuing the company.”

While Fazio quickly owned her new role, she didn’t always see her daughter dabbling with coil springs.

“My mother was very protective,” Williams says. “She didn’t want me in the factory. I worked in the office a little bit, but she was still of the mindset that, ‘This is not a place for a young girl.’”

I was given a lot of rope [in my role], and I was allowed to put my personality into it.

Nina Fazio Williams began her sales career with Diamond Wire Spring in 1995.

Fazio passed away in 1993. Before that, she encouraged her sons to hire Williams in a sales position. At 44, Williams came on board in 1995. Diamond Wire Spring had opened a plant in Tyler, Texas, but was basically “treading water.” The rest is history.

Williams cut her teeth in sales by “grabbing the phone book and prospecting manufacturing companies.”

That pounding pavement approach worked. Her part-time role became a full-time position, and soon she was hiring reps and developing territories from southwest Texas to California as the southwest regional manager.

Never one to say, “good enough,” Williams continually sought out ways to grow her team and reach new markets. She says that tapping into industry trade shows and publications and welcoming new talent to the company all helped the business thrive.

Her approach over the years has been thorough, smart and personal. Just ask the many clients and colleagues who’ve enjoyed her trademark chocolate chip cookies during meetings and visits.

“I was given a lot of rope [in my role], and I was allowed to put my personality into it,” says Williams.

Her brother, Don Fazio, Diamond Wire Spring’s chairman, can vouch for that.

“Little by little Nina developed a great rapport with the management team and learned how to talk to people in sales.

“Our customer base back [when Nina started] was maybe less than 100 customers for the Tyler, Texas plant. Now it has more than 400 customers. She started with nothing and helped build up our Texas plant.”

What would her mother think of William’s career trajectory over the years?

“Oh, she would have loved it,” says Williams.

Williams is still attending shows and taking lunch meetings, though now a lot of her sales touchpoints happen online, particularly as more buyers forgo traditional trade shows in favor of internet research and purchasing.

The

While the national demand for springs is bouncing back — albeit slowly — post-pandemic, she is confident there are always new markets to explore. Springs are instrumental in everything from transportation to solar panels and drilling rigs.

As they navigate semiretirement, Williams along with brothers Don, Frank and Paul, are passing the torch to the third generation of Diamond Wire Spring leaders and a carefully selected workforce.

Williams maintains, “The right team in place is everything.”

Indeed, Fazio family history has shown that effective leaders don’t require all of the answers from the outset to thrive. It just takes the right people, at the right time, with the right ‘spark’, to keep a legacy going strong. z

The right team in place is everything.

team at the Diamond Wire Spring Tyler, Texas plant.

By Phil Sasso

CTE News Connecticut Chief Manufacturing Officer Drives Digital Transformation

Paul Lavoie is the State of Connecticut’s Chief Manufacturing Officer. Appointed by Gov. Ned Lamont in February 2022, Lavoie is entering his third year as part of the Department of Economic and Community Development for the State of Connecticut.

“This sector has a critical role when it comes to jobs, exports, innovation, and productivity,” says Lamont. “Over the last couple of years, thousands of manufacturing jobs have been added in Connecticut, and I am determined to keep this momentum going.”

Connecticut is the only state with a Chief Manufacturer Officer in the executive branch of government. His role is to serve the manufacturing ecosystem and ensure the state makes the resources available to support manufacturing growth. He is also the state economic development lead for the offshore wind industry sector.

“My job is to support and grow the manufacturing sector and develop and implement programs to build resiliency and growth in the sector,” he says. “I am the author of Connecticut’s Manufacturing Strategic Plan, and the Office of Manufacturing is responsible for coordinating the efforts to execute the plan.”

What led you to this industry?

I came to the manufacturing industry as a provider of services to the industry. I owned a business consulting firm and marketing agency, and manufacturers were a customer segment of my business. I fell in love with the industry and worked at two manufacturing firms in senior leadership roles before my appointment.

Tell us about manufacturing in Connecticut.

Manufacturing is Connecticut’s largest industry sector, accounting for 13.2% of the state’s GDP. We are number one in aircraft engine and airplane parts manufacturing, number two in shipbuilding and number two in defense spending per capita in the U.S. It is a major economic driver of Connecticut’s economy.

How are you driving digital transformation and efficiency within manufacturing?

Together with the Department of Defense and the Office of Local Defense Community Cooperation, we are working on a federal grant program to accelerate the digital transformation

Through our Manufacturing Innovation Fund, we are investing $15 million a year in programs designed to support and grow the industry.

Paul Lavoie

in the defense manufacturing industry. We have just been awarded a Department of Commerce Electronic Data Access (EDA) grant to drive digital transformation through the commercial industry base as a regional tech hub. Driving efficiency and digital transformation is a key element of Connecticut’s Manufacturing Strategic Plan.

How are you improving the sustainability of your manufacturers?

We are making major progress in growing our manufacturing base and developing sustainability in our ecosystem. Through our Manufacturing Innovation Fund, we are investing $15 million a year in programs designed to support and grow the industry. The programs are focused on the key elements of our strategic plan — workforce, supply chain resiliency and innovation, all leading to industry growth.

What do the next 12 months hold for you and the state of Connecticut?

I anticipate 2024 will be the year that manufacturing becomes the number one sector and driver of Connecticut’s economy, making Connecticut a manufacturing state. We are making significant progress in growing and developing our manufacturing workforce, assessing risk in the supply chain, developing programs to strengthen our industry, and driving innovation in digital transformation, additive manufacturing, and industrial automation. We continue to attract new businesses and talent to our state, and our strategic plan serves as our north star as we remain laser-focused on our key growth initiatives. z

By Phil Sasso

Makers

Scoops for Troops: Ice Cream and Patriotism

When he was eight years old, Michael Ahern saw the Travis

retreat

Mills Foundation’s

new

healing

facility for military veterans being

built near his

family’s vacation home in

Maine. The first thing he wanted to do was buy ice cream for all the children attending family retreats.

That year, Michael and his family raised $400, which included his birthday money, for the Travis Mills Foundation to share a boat ride and ice cream with veterans and their families. Thus, Scoops for Troops was born.

Michael is Rebecca Karabin-Ahern’s son and Lucas Karabin’s nephew, co-presidents of SMI member Acme Monaco Corporation in New Britain, Connecticut.

Travis Mills

On April 10, 2012, U.S. Army Staff Sergeant Travis Mills of the 82nd Airborne was critically injured on his third tour of duty in Afghanistan. While on

patrol, he triggered an IED (improvised explosive device) and lost portions of both his legs and arms. He is one of only five quadruple amputees from the Iraq and Afghanistan wars to survive their injuries.

In Nov. 2013, Mills retired from the Army and established the Travis Mills Foundation, a nonprofit organization formed to benefit and assist combat-injured veterans. At the Foundation’s facilities in Mount Vernon, Maine, veterans and their families receive an all-inclusive, all-expense-paid, barrier-free vacation where they participate in adaptive activities, bond with other veteran families and enjoy much-needed rest and relaxation in the great outdoors. Recently, the summer program expanded to year-round.

Mills has been featured in the media, including Men’s Health and “The Way I Heard it with Mike Rowe” podcast.

Michael Ahern

Now an unassuming 13-year-old, Michael enjoys math class and considers someday studying business or joining the military. Right now, his patriotism and love for ice cream have inspired Scoops for Troops (scoopsfortroops.org), a 501(c)3 nonprofit supporting veterans and their families, with 100% of the proceeds going to the “cause.”

“We raised $400 within probably a month,” he proudly recalls of his first summer of fundraising.

He and his family raised that amount by standing outside bagel shops, car shows, and grocery stores, handing out free ice cream and telling people about their fundraising cause, which led

Michael and Kara Ahern (l) present a $30,000 check from Scoops for Troops to retired U.S. Army Staff Sergeant Travis Mills (r) for the Travis Mills Foundation’s veterans’ retreat center program in central Maine.

Michael (l) and Rebecca with an ice cream truck the family rented for a Scoops for Troops fundraiser.

them to meet the veterans’ children and share a boat ride and ice cream together.

“It was amazing,” Michael says, reflecting on meeting the children they supported. “Just seeing them smile gives you a rush of joy, and nothing could beat it.”

This initial success only fueled his ambition further. He set his sights on a more significant goal: hosting the Travis Mills Foundation for a week — a $30,000 target. Michael embarked on an intense nine-month project and handily reached his ambitious goal.

To date, Scoops for Troops has raised over $100,000. This year, Michael and his family hope to raise $50,000, furthering their mission to support veterans and their families.

His efforts have not gone unnoticed. In 2022, Michael and Scoops for Troops were recognized with the Congressional Medal of Honor Society’s Youth Service Award. The Congressional Medal of Honor Society has 66 living members who have received the Medal of Honor and voted for Michael to receive this award.

Kara Ahern

As Scoops for Troops continues to grow, Kara, Michael’s sister, looks back on their collective efforts to drive the cause forward. Now 15, she recalls the inception of Scoops for Troops and her role.

Kara explains that ice cream became central to their cause because Michael wanted to share with other children the same cherished memories he and Kara had in Maine.

“It was just very rewarding to see some of the veterans and the kids,” Kara reflects.

“Michael formed Scoops for Troops, and we all gathered around him, knowing this was going to be a group effort,” Kara says.” I thought it was very achievable and very rewarding to be able to do this for the veterans and their kids. And since then, I’ve been able to create a swim-a-thon to help raise money.”

Now a high school sophomore with a passion for swimming, Kara has played a pivotal role in organizing events such as the swim-a-thons to further their cause. While uncertain if her career path may take her to sports medicine or business, Kara’s dedication to Scoops for Troops and her desire to give back to the community remains unwavering.

To date, Scoops for Troops has raised over $100,000

Kara Ahern (r) was the catalyst for the Scoops for Troops swim-a-thon fundraiser.

Michael Ahern receives the 2022 Congressional Medal of Honor Society’s Youth Service Award.

Scoops for Troops has grown from a family project to a 501(c)3 non-profit with volunteers like those shown here.

Difference Makers

For more information on Scoops for Troops or to donate, visit scoopsfortroops.org.

Reflecting on their journey, Kara emphasizes the importance of their shared patriotism and commitment to serving those who have served their country. “Every single day is working towards the next event, achieving our goals, and giving back to our veterans,” she affirms.

Rebecca and Scott

Rebecca Karabin-Ahern and Scott Ahern are understandably proud of the remarkable story of their son Michael’s Scoops for Troops initiative. They highlighted the heartfelt beginnings and the unwavering dedication that propelled their organization forward.

Rebecca recounts that pivotal moment during a family drive when Michael, just eight years old, expressed his desire to forgo birthday presents and raise money for children at the Travis Mills Foundation to enjoy ice cream on a boat.

“As his mom, I almost drove off the road,” she admits, struck by his selflessness.

“We quickly came up with the logo…and we just ran with it,” says Scott.” Fast-forward five years, he’s 13, Kara’s 15, and here we are today.”

Their journey wasn’t without challenges, as they set out to raise an ambitious $30,000.

“I am surprised I didn’t faint,” Rebecca says, recalling the moment Michael committed to the significant goal in the Travis Mills Foundation conference room. “I just looked at my husband. He

said, ‘Well, what do you do? You support your kids.’ And that’s the day Scoops for Troops was born.”

“What’s the worst that can come? We don’t meet the goal?” said Scott.

“We kept going. We did everything we could,” Scott says, underscoring their commitment despite facing the COVID-19 pandemic. The family persevered, adapting their efforts.

Then came Kara’s swim-a-thon. It started with ten swimmers; it now has 25.

“Everybody who gets in the pool does 100 laps to support the veterans,” says Scott. “It takes a lot to swim 100 laps. Some get it done in 30 minutes. Some take a couple of hours. But they’re all out there, and they know it’s for a great cause. So, they all work hard.”

A Family Affair

Scoops for Troops also has grown to include a golf outing and other fundraising events.

Kara shares a touching moment with a young girl named Maddie who expressed her admiration while on a boat ride sharing ice cream. “She said I was her hero!”

Scoops for Troops is more than just an organization—it’s a testament to the power of compassion and passion. With plans to expand and continue their mission, the Ahern family is ready to impact the lives of veterans and their families for years to come. z

Gary McCoy

A Message from Gary

A Cultural Journey on The Soft Side of Business

More than 10 years ago, I helped my friend John Passante edit and publish his book, “The Human Side: High-Touch Leadership in a High-Tech World.” John is a person I respect and admire due to his belief that companies need to pay close attention to the so-called “soft” side or human side of their operations. The bottom line: your company culture should be people-friendly.

As John related and demonstrated to me, a lot of leaders have a tough time understanding the value of the soft side to their bottom line. That’s because when they exclusively focus on the “hard” side of management, they often ignore or alienate employees, which can create a toxic atmosphere that drives top employees away.

Last year, I heard Bill Coughlin, a member of the executive team at Lippert Industries in Elkhart, Indiana, speak about “Business as a Force for Good.” Later, I went to visit Lippert with SMI president Gene Huber, and we saw up close the cultural transformation that took place more than a decade ago.

Bill recently joined me on the “Springs are Everywhere” podcast. When he first came to Lippert, a company that started in 1956, it was very successful and made money every year. He says that more than 10 years ago, Lippert was more of a command-and-control type organization. “We had a turnover rate inside our four walls of 131%. So, it wasn’t sustainable,” he explained.

To transform the company, he said they started to examine the company’s vision and mission. Specifically looking at the organization’s values, asking things such as “How are we going to hold people accountable?”

The company worked on everything, including things like restrooms, lunchrooms, and parking lots. Today, the company has a turnover rate in the mid-20s. “Our plan is probably never to get to zero because sometimes you just don’t have the right fit of people and you’re always going to have some sort of turnover. Hopefully, we hire people to retire when they’re done with their career.”

Bill candidly acknowledges it’s a journey. “We’re still on it, and we’ll probably always be on it. I believe the journey of our culture will never end.”

Bill says, “If you do the right thing, if you build the right culture inside your four walls at work, people will not wake up in the morning saying, ‘I have to go to work.’ Hopefully, the mindset is ‘I get to go to work. I enjoy it. I feel valued, appreciated, welcomed and cared for.’”

Coughlin says the leadership at Lippert believes if they do it the “right way,” that most of the company’s team members will go home happier and healthier, and they will treat their families differently. Plus, they will be better stewards in their communities.

Lippert’s cultural transformation is a fascinating story that Bill will talk about at our 2024 annual meeting. If you can’t make it to California, be sure to listen to my interview with Bill on the “Springs are Everywhere” podcast.

Cheers!

Gary McCoy Executive Director

Inside SMI

Spring Design Training Program Grows

2023 Spring Design Training Schedule

Class

201 Compression Spring Design

202 Extension Spring Design

203 Torsion Spring Design

301 Springs — Fatigue

In-Person at SpringWorld

201 Compression Spring Design

202 Extension Spring Design

203 Torsion Spring Design

Date*

April 18, 2024

May 16, 2024

June 20, 2024

Aug. 15, 2024

Oct. 2–4, 2024

Oct. 17, 2024

Nov. 14, 2024

Dec. 19, 2024

Webinars are offered from 1–5 p.m. EDT/EST

*Dates are subject to Change.

SMI is committed to helping train and support North American springmakers with outstanding technical assistance.

SMI’s spring design training program continues to grow and be well received by both members and nonmembers and highly rated by student attendees.

To date, 761 students have participated in training sessions for our four basic modules: 201 Compression Spring Design, 202 Extension Spring Design, 203 Torsion Spring Design and 206 Snap Ring Design along with the two advanced-level modules 301 Springs — Fatigue and 304 Springs — Dimensioning, Tolerancing and Testing.

Our upcoming training schedule for 2024 is shown to the left. In addition to webinars, SMI plans to offer in-person classes at the 2024 SpringWorld Expo and Symposium, sponsored by CASMI and SMI, Oct. 2–4, 2024 (class offerings to be determined).

The SMI Technical Committee is developing three new courses: 204 Beam and Washer Spring Design, 205 Power, Constant Force, Spiral, and Torsion Bar Spring Design, and 207 Strength of Materials and Spring Material Manufacturing. Dates for these new offerings will be announced as information becomes available.

SMI also offers on-demand training at individual company locations. This can be an attractive, cost-effective alternative for companies who wish to train a large number of their associates. Please contact Gary McCoy at gary@smihq.org for details.

For more information and to register for classes, visit https://bit.ly/SMItech or contact Gabriela Carrasco at gaby@smihq.org.

Springs Are Everywhere Podcast Launches

The first episode of SMI’s new podcast, “Springs Are Everywhere,” premiered in January 2024 featuring Jake Hall, The Manufacturing Millennial, and Lisa Ryan of Grategy.

Hosted by SMI executive director, Gary McCoy, the podcast provides educational information on issues related to manufacturing springs, wireforms and stamping. The program provides SMI with another venue to share information, inspire action and educate people about the spring industry with leading experts.

The second episode featuring Paul Menig of Business Accelerants and Bill Coughlin of Lippert was scheduled for distribution in mid-March.

The Springs Are Everywhere podcast is produced with the help of our Platinum Sponsor, Gibbs Interwire and our Silver Sponsor, Automated Industrial Motion.

The podcast is hosted on Spotify and on SMI’s YouTube channel. Be sure to like, review and subscribe to the program, which is available on all major podcast platforms.

Calendar z Key Events for the Global Spring Industry 2024

April 15–19

wire and Tube

Düsseldorf, Germany

wire-tradefair.com tube-tradefair.com

Oct. 2–4

SpringWorld Expo and Symposium

Donald E. Stephens Convention Center Rosemont, Illinois casmi-springworld.org smihq.org

Sept. 12–13

20th Meeting ISO/TC 227 Milan, Italy

Spotify YouTube

SpringWorld 2024 Registration is Now Available

Be sure to join your spring industry colleagues in Rosemont, Illinois, for the 2024 edition of SpringWorld, presented by the Chicago Association of Spring Manufacturers, Inc. (CASMI) and the newly added Symposium, presented by SMI. This year’s event will take place from Oct. 2-4, 2024, at the Donald E. Stephens Convention Center.

In addition to the CASMI-hosted exhibit hall, SMI will host two mornings of business and technical content on Oct. 3 and 4, including 24 educational sessions.

Exhibit hall hours will be similar to prior years, and the technical theater will be available for presentations on the show floor. Two receptions are scheduled to take place at the end of the first and second days of the show Don’t miss this comprehensive educational and networking event to learn the latest from suppliers and educators.

Registration is now available at the show’s new website, springworld.org.

2024 SMI Annual Market Summary Launches in April

SMI’s Annual Market Summary is an industry-wide report profiling the financial and operating performance of spring manufacturers. For those who participate, the Annual Market Summary will be delivered in both PDF and an Excel© dashboard files. Management commentary is provided in the reports to explain what the various statistics and ratios mean and why they are important.

Each participant that returns a completed questionnaire will receive an individual Financial Performance Report (FPR) delivered in an Excel© dashboard analyzing their company. This report offers an interactive, dynamic look at the columns of data the user wants to use for benchmarking.

Mackay Research Group, our exclusive survey partner, sends these reports directly to the survey participants. They follow the strictest guidelines to ensure the confidentiality of company data.

Keep these dates in mind:

April 2 Annual Market Summary survey is sent to all regular members.

May 31 Published cut-off date for returns

July 15 Annual Market Summary Report sent to SMI

SMI Announces New Discounted Freight Program

Earlier this year SMI announced an agreement with Estes Association Solutions to help members secure reliable freight transportation service at discounted rates. Estes is the largest privately owned freight carrier in North America.

“Last year Yellow Corporation declared bankruptcy after years of financial struggles and growing debt,” explained SMI executive director Gary McCoy. “As a result, SMI’s program with Yellow ended. I’m pleased to announce this new freight discount program for our members with Estes.”

When SMI members enroll in the program, they will have access to a dedicated association representative, exclusive association pricing, discounted time-critical guaranteed pricing and reduced accessorial rates.

“Estes has LTL shipping with nearly 7,000 next-day lanes, along with robust Time Critical Guaranteed service and Final Mile freight delivery to homes, businesses, institutions, and job sites without loading docks,” explained Alesia Dragon, Estes Association Solutions program manager. “Among other services we offer are global freight forwarding with worldwide coverage and reliable, specialized LTL services like trade show transportation.”

For more information on SMI’s program with Estes, visit estes-express.com/lp/associations, email AssociationSolutions@estes-express.com or phone 804-353-1900, ext. 2970.

For more information about SMI, visit smihq.org.

July 31 Individual Financial Performance Report sent to each participant We’d

Send Us Your News

SMI members receive priority placement for their product, company, personnel and events announcements in the magazine. Your news releases should be roughly 50 to 100 words and may be accompanied by color photos (high-resolution .JPEG photos at 300 dpi preferred). Send to gaby@smihq.org.

SMI Grieves Death of Past President Alex Rankin

By Gary McCoy

SMI mourns the passing of SMI past president Alexander Rankin, V, 91, of Bedminster Twp., Pennsylvania, Feb. 20, 2024, at his home. Rankin was a visionary entrepreneur, beloved community leader and the founder of Vulcan Spring and Manufacturing Co.

He was the loving husband of 66 years of the late Joanne (Sittig) Rankin until her passing Dec. 10, 2022.

Born in Chicago, he graduated from Calumet High School in 1950. Rankin earned a bachelor of science degree in mechanical engineering from the University of Illinois in 1957. On Oct. 14, 2012, Rankin was inducted into the Illinois College of Engineering’s Hall of Fame.

Following high school, Rankin proudly served with the U. S. Army from 1953 to 1955 having been stationed stateside during the Korean War, reaching the rank of Corporal.

After his military service, Rankin embarked on a remarkable career, starting with Firestone Tires, where he was part of the team that invented radial tires. His entrepreneurial spirit led him to establish Vulcan Spring and Manufacturing Co. in 1967, where he turned a basement startup into a global enterprise. Today, Vulcan produces custom-made parts for various applications worldwide.

Notably, a pivotal moment in the history of Vulcan Spring occurred with the first Talking G.I. Joe doll, making possible the innovative application of a Vulcan Spring. Rankin, instrumental in this breakthrough, went on to hold multiple patents for processes, products and advancements within the spring industry. His inventive contributions not only brought the iconic Talking G.I. Joe to life, but also established him as a key figure in the industry. Today, Vulcan Spring, under the continuing leadership of his son, Scott, continues to be a leading force, carrying forward Rankin’s legacy of innovation and excellence.

SMI Leadership

Rankin also excelled as an SMI leader. He was a member and past president of the SMI board of directors, serving as president from 1989 to 1991. Among his accomplishments, he was instrumental in elevating the role of the association’s technical committee, where he

served as chairman, and helping make SMI’s connection to legendary spring pioneer A.M. Wahl.

Considered by many springmakers as the “bible” of spring design, Wahl’s book “Mechanical Springs” is a 317-page hardcover reference covering many types of springs. SMI gained rights from McGraw-Hill Book Co. to reprint Wahl’s second edition (1963) in 1991 during Rankin’s presidency.

Rankin was beloved by many in the spring industry for leading overseas trips so SMI members could visit springmakers in countries such as Italy, Germany, Yugoslavia and Japan. Numerous photos dotted the pages of Springs magazine documenting the worldwide adventures SMI members embarked upon under his leadership.

Rankin was a leader in community service. He was a member of Re:New Bible Church, Perkasie, Pennsylvania, where he sang in the church choir. He was a former member of the Hilltown (Pennsylvania) Baptist Church, where he also sang in the church choir and served on the deacon board.

In addition, he was a former member of the Hilltown Township Zoning Board and a former member and past chairman of the board of the First Service Bank.

Rankin was an antique car collector, a passionate “goose chaser” and enjoyed dancing and playing the piano. He produced the Broadway production of “Amazing Grace.”

He is survived by two children, Heather R. Doherty and Scott Rankin, along with their families. His impact extended to his six grandchildren and four great-grandchildren, who will carry on his legacy of dedication, innovation and community service.

“In honoring my dad’s memory, let us celebrate a life well-lived, marked by accomplishments that have left an indelible mark on the spring industry, the community and the hearts of all who had the privilege of knowing him,” said his son, Scott, at his dad’s memorial service.

Scott concluded his remarks with these words, “Alexander has again joined his wife, Joanne, and they are celebrating their lives together dancing in heaven.”

Funeral Services were held March 4, 2024, at Re:New Bible Church.

Former SMI past presidents M. Parker Blatchford (left) and A. H. “Pete” Peterson III (right) are pictured with Alex Rankin (center).

Joanne and Alex Rankin dance the night away at an SMI annual meeting.

Joanne and Alex Rankin.

202 4

EXPO AND SYMPOSIUM

ROSEMONT, ILLINOIS • OCT 2-4

Presented by CASMI and SMI

CASMI

JOINT

and SMI PARTNER TO HOST A

Three Days of EXPO

EXPO AND SYMPOSIUM

Presented by CASMI and

EVENT

SMI brings symposium to SpringWorld!

Two Mornings of Educational Sessions

Technical Theater Sessions Same Great Networking Events

Chicago Association of Spring Manufacturers, Inc. (CASMI) and The Spring Manufacturers Institute (SMI) have partnered to combine the two organizations’ semi-annual events into one industry foremost event. The joint SpringWorld Expo and Symposium will be held October 2-4, 2024, at the Donald E. Stephens Convention Center in Rosemont, Illinois. In addition to the CASMI hosted exhibit hall, SMI will also host two mornings of business and technical content, including 24 educational sessions. Exhibit hall hours will be similar to prior years and the technical theater and receptions return! Don’t miss this comprehensive educational and networking event to learn the latest from suppliers and educators.

Registration will open later this year!

For Exhibitor and Sponsorship information, visit our new website: SpringWorld.org

SMI Survey Schedule: Benchmark with Your Peers

SMI regularly surveys its members to help them understand how they are doing relative to others in the industry. Confidentiality is important when surveys are conducted, which means no company data is ever shared with SMI members or SMI itself. Here’s the schedule of surveys for 2024 and into 2025.

SPRING & WIRE FORMING

SAS SPRING TESTERS ONE SOURCE. MANY SOLUTIONS.

New CTM series manual load testers:

▪ Fully Windows 10, 11 compatible.

▪ Includes WIFI access to the company network.

▪ Includes new CT-18 DDA technology, allowing for fast and accurate "pass-through" testing without the need for mechanical stops.

▪ Tolerances up to 3 force at height positions can be entered and part disposition displayed via red and green in or out-of-tolerance indicators.

▪ A real-time report including min, max, average, sigma, Cp, and Cpk statistics can be displayed and printed.

▪ A reverse engineering spring analysis module is available to aid the coiler setup, via free length, OD, or even wire size suggestions with respect to part load tolerances.

▪ A very small footprint of only 7.08"x10.63", allowing location next to the spring coilers.

▪ Load capacities from 10N (2.24lbf) up to 1000N (224lbf) are available in the model range.

▪ Includes both compression and extension attachments.

SAS Spring testers o ering a full line of manual & automatic compression and torsion spring testers, setting, load sorting, and pitch tracing machines. SAS; our focus is on spring testing and customer support.

DELTA 8 AXIS CNC COILER SERIES

8 AXES CNC COILER

D-808 .004-.039”/0.10-1.00mm (In-stock)

D-816 .016-.079”/0.4-2.00mm (In-stock)

D-826 .039-.118”/1.00-3.0mm (Shown)

Gabriela Carrasco

Podcast Picks

What Business Owners Wish They Knew Before They Decide to Sell Their Business

The Employment Experience | Katy

E60 | Jan 17, 2024 | 30 min.

We live in an information-rich age. There are digital books, streaming videos and unlimited online resources for on-demand learning. But my favorite resource for learning, with my limited free time, is podcasts because I can listen while doing something else. When choosing a podcast, I look for an engaging host, clear and concise communication and a reasonable length.

“The Employment Experience” fits that bill by providing 20-to-40-minute, bite-sized episodes hosted by Karly Wannos, an employment lawyer and founder of The Wannos Law Firm. Each interview in the series offers a mini-training session or step-by-step guide to help business owners face important employment issues.

I chose this particular episode because it fits the topic of this issue of Springs magazine: exit planning strategies.

Guest Charlie Janes is a certified growth and exit advisor with more than 30 years of experience helping businesses in Silicon Valley. His business transition statistics are interesting. For example, “Only 17% of businesses put up for sale actually sell,” Janes says. About 30% of family businesses successfully transition from the founder to the first generation, and only 18% transition from the second to third generation. And of owners who successfully sell their business, “75% of owners are not happy with the exit terms or payout.”

Janes explains that many owners spend their time thinking about management goals (how to oversee the day-to-day and make a profit) versus growth and strategy to make the business more productive. This way of thinking makes the owner the center of the business, and when the owner moves on, the business cannot keep moving forward.

He distinguishes between owners working in their business and working on their business by looking at the big picture of strategy and an exit legacy.

Janes recommends owners look at their exit plans in three dimensions: financial readiness, emotional readiness, and business valuation. For owners, he lists experts he suggests you involve

Wannos

in the exit planning process, the timeline and the types of buyers to consider. He recommends eight categories to increase a business’s value to a potential buyer. The major ones include providing a track record of annual profit growth, showcasing clear future growth potential, building a strong recurring revenue stream and, importantly, demonstrating the business can run without the current owner.

Wannos wraps up the episode by briefly discussing with Janes the legal implications of not including your employees in the exit strategy and how to properly address them in the contract. To listen to this episode and others in this series, search “The Employment Experience” anywhere you listen to podcasts. And while you’re there, check out SMI’s new podcast, “Springs Are Everywhere” — you might even hear a familiar voice at the end of the episode! z

Want to share a business development podcast for me to review? Please send your suggestions to gaby@smihq.org.

Reviewed by Phil Sasso

Book Corner

Walking to Destiny

11 Actions an Owner Must Take to Rapidly Grow Value and Unlock Wealth

“America alone sits on a stockpile of privately held business wealth, over $10 trillion. It is the greatest transfer of wealth in the history of mankind, set to hit in the next 10 to 20 years. Are you doing what you need to do today to identify, protect, build, harvest, and manage that wealth so the business successfully moves to the next stage in its life cycle? I can’t answer that for you, but I can tell you that based on owner readiness research performed throughout the United States, the answer is no.” — Christopher M. Snider, “Walking to Destiny” (Second edition, 2023)

Does the above paragraph rattle your cage? It does mine.

As a Boy Scout, “be prepared” was drilled into me. But I never thought about the long-term implications — until recently. This year, my dear cousin, Julie, passed away. She was far too young and alive. It reminded me we don’t always get to write the last chapter of our lives, so it’s important to write a good lead-in. (Julie did.)

In “Walking to Destiny,” Christopher M. Snider, CEO of the Exit Planning Institute, maps out a path to prepare business owners for the inevitable — be it succession, acquisition — or the unexpected. The author stresses early planning and provides a step-by-step process to build a business that will survive and thrive. Snider’s Value Acceleration Methodology (VAM) unlocks deeper business wealth and transferable value. It builds a business that can run without the founder or current leader.

As much as 80% of a privately-held business owner’s net worth is locked in their business. Snider says most owners liquidate their business for a fraction of its full potential because they lack a structured, actionable strategy to unlock the full value.

Snider's VAM methodology provides a threeto ten-year road map to identify and unlock a business's hidden value. This value is usually underutilized assets, operational inefficiencies or untapped market opportunities.

I did an exclusive email interview with Snider about the second edition of his book. Here are my questions and his replies:

What inspired you to revise the book, and what's the most important addition?

It had been seven years since the first publication, and the market had changed quite a bit. I had double the experience working with business owners that I wanted to share. I also wanted to share my personal journey as an owner using VAM, which, over 10 years, has grown its income 43 times and its value 600 times from when I bought it. (We practice what we preach at the Exit Planning Institute!)

Which one of the 11 actions tends to yield the greatest return?

I believe it is action number four: “Make value, not income, your primary goal.” This simple paradigm shift changes everything, including how you look at and operate your business and how important it is to integrate personal and financial aspects into your daily life. In the new edition, I dedicated a whole chapter (chapter 9), to this paradigm shift. What one or two areas do most manufacturers miss when unlocking value?

I find chapter 6 with “the 4Cs” (intangible capital) is the book's most compelling and popular chapter. What many owners miss is that 80% of the value of their business is captured in intellectual capital and intangible assets versus tangible assets. That's the secret sauce that drives accelerated value, as well as sales and income. This may be instinctive for most owners, but many owners do not formally measure their 4Cs. To capture the value, owners need to measure and actively track intangible value and use this to drive the business. When they do this, intellectual capital becomes company property which can be sold. Manufacturers have a lot of physical capital tied up in the business. The real value, though, is how they deploy those assets and document what they do to make their business special and unique. z

Have a favorite business book you would like me to review? Email your suggestion to phil.springs@sassomarketing.com.

New HCF-AL Energy-Efficient Conveyor Ovens

HSI and Forming Systems, Inc. have launched a new energy-efficient line of conveyor ovens.

The HCF-AL saves up to 20% or more on energy costs. HCF-AL is the latest energy-saving series developed by HSI, which includes the following features: intelligent energy control system (algorithm), extra insulation jackets, heat retention design to increase energy efficiency and optimized insulation construction to reduce heat loss.

For additional information, including option details and pricing, contact Forming Systems, Inc. at info@formingsystemsinc.com or call 269-679-3557. z

*The above data is an average result. Actual results may vary due to different models and test conditions.

Joe Devany y Betts Spring Manufacturing

Name: Joe Devany

Snapshot

Company name and city: Betts Spring Manufacturing, a division of Betts Company, Fresno, California.

A brief history of your company: A multigenerational family-owned and operated spring manufacturer since 1868.

Job title: Vice President — Manufacturing Divisions (spring manufacturing and Betts HD).

What I like most about being a springmaker: I want to exceed customer expectations with our design, quality and delivery. Every day brings its own challenges. It is overcoming the challenges that excites me.

Spring industry affiliations: SMI — Regulatory Compliance Chair and At-Large Member of the Executive Committee.

Nickname: Coach.

Birthplace: Walnut Creek, California (San Francisco Bay area).

Current home: Clovis, California.

Family: Wife, Heather, three sons, Russell, 16, Tommy, 14, and Matty, 9, and dog, Buddy.

Favorite food: Steak and potatoes.

Favorite song/musician: Toby Keith, “Should’ve Been a Cowboy” (that was my college baseball walk-up song).

Hobbies: When I am not at work I am usually on a baseball field. I run a local Pony baseball league with more than 700 kids enrolled. I also enjoy coaching my boys’ baseball teams.

Favorite places: Carmel, California.

What podcast and/or music are you currently listening to: I always play “The Highway” on SiriusXM in my truck.

What is on your bucket list: Attending a Super Bowl the Las Vegas Raiders are playing in!

Aside from necessities, what is one thing you could not go without: My Outlook calendar. If it is not on my calendar it does not happen.

Best times of my life: Right now. I am chasing my boys around playing baseball, football and basketball, trying to figure out what their future dreams are. My wife and I are on the go, but we would not want it any other way.

A really great evening for me is: Spending time with Heather and the boys. We live a busy life and do not always have a ton of time together. So, when we do it is really special.

The one thing I cannot stand is: Lazy people.

My most outstanding qualities are: My work ethic. I am not afraid to work hard or get my hands dirty when needed. I have a tough time standing by and waiting for things to get done.

People who knew me in school thought I was: Going to play major league baseball.

I knew I was an “adult” when: I drove my first son home from the hospital and realized I was driving 10-15 mph below the speed limit.

If I were not working at my company, I would like to: Own a baseball training facility.

The most difficult business decision I ever had to make was: Letting people go. That is never fun.

I wonder what would have happened if: I had continued playing baseball after college.

Role models: My grandfathers, William Michael Betts III and Russell Joseph Devany. Both men had incredible work ethics and were ultimate family men. Both served our country and stood for right and wrong. My older son is named after both: Russell William Devany.

I would like to be remembered in the spring industry for: Making a difference and having an impact. In everything I do, I want to leave things better than I found them.

But people will probably remember me for: Being the nephew of Mike Betts.

The Devany family: (l to r) Matty, Tommy, Heather, Joe and Russell with dog, Buddy.