Winter 2016
The International Magazine of Spring Manufacture
A Publication of the Spring Manufacturers Institute / Vol. 55, No. 1
Human Resources
How SMI Companies Manage Human Resources 28 Are You Creating a Culture of Unwanted Employees? Twelve Low-Cost Suggestions for Welcoming New Hires 34 Taking a Conscious Approach to Your Hiring Practices 37
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President's Message From Hap Porter
Job Well Done Here’s a memory teaser for you. What was going on in the world during the month of April 2013? There was turmoil: The Boston Marathon bombing took place. There was achievement: Louisville and UConn won the college basketball championships. And there were big developments afoot for one particular trade association: the SMI, at its annual convention in Tucson, embarked on a strategic planning process that would ultimately result in what would become the Metal Engineering eXpo trade show. What exactly took place in Charlotte last October? When you mix twoand-a-half years of planning with gobs of incredibly hard work; when you build a gathering around the wishes of SMI members to have a ground-breaking series of industry-specific technical symposia; and when you infuse it all with the energy and excitement of exhibitors and attendees, the result is inevitable: you have a hugely successful inaugural event! You will read in this issue many of the details of the eXpo’s three days in October, but let me give a couple of personal highlights. The Charlotte Convention Center was fantastic, and we received many compliments on the venue and how it looked. There was great interest in the technical symposia, and many attendees told me there were more topics and sessions they wanted to visit than there were time slots available. The SMI-sponsored welcoming reception on the show floor Tuesday evening was a wonderful way to visit and connect with each other. And I cannot say enough about the delightful evening at the NASCAR Hall of Fame on Wednesday, hosted by our Visionary Sponsor Industrial Steel and Wire (and this from someone whose prior knowledge of NASCAR was limited to a general awareness that the sport involves cars driving real fast around a track!). There are two special mentions I want to make for the record. First, our nine sponsors - Industrial Steel & Wire, American Spring Wire, Gibbs, Interwire, Suzuki Garphyttan, WAFIOS, Central Wire, RK Trading and Kiswire — shared our vision and understood the mission for the event, and we thank them all for their support. Secondly, the eXpo would not have happened but for the hard work of our trade show committee and our SMI staff. Our committee, led by Dan Sceli, worked tirelessly with SMI’s technical committee (chaired by Gene Huber) to spec out the content and presentation of the technical symposia. And our executive director Lynne Carr and her staff were the quarterbacks of the myriad details of launching this event. On behalf of SMI and its members, I thank everyone for your leadership and diligence. The eXpo was 30 months in the making, and in retrospect, it was indeed a job very well done. Finally, I end my last President’s Message with a hearty thank you for the privilege of leading this organization for the last two years. With our April annual meeting, SMI will be in the great hands of its new president Mike Betts, who, along with the executive committee, the board of directors and staff, will continue leading SMI in service of its members and our industry.
SMI Executive Committee President: Hap Porter, SEI MetalTek Vice President: Mike Betts, Betts Company Secretary/Treasurer: Steve Kempf, Lee Spring Immediate Past President: Steve Moreland, Automatic Spring Products At Large: Bert Goering, Precision Coil Spring Co. Executive Director: Lynne Carr
SMI Board of Directors Tim Bianco, Iowa Spring • Mark DiVenere, Gemco Manufacturing • Simon Fleury, Liberty Spring • Ed Hall, Spring Team • Gene Huber Jr., Winamac Coil Spring • Charly Klein, Fox Valley Spring • Bill Krauss, Vulcan Spring • Don Lowe, Peterson Spring • Bill Marcum, MW Industries • Melanie Orse, Sound Spring • Jennifer Porter, SEI MetalTek • Dan Sceli, Peterson Spring • Bill Torres, Gibbs Wire and Steel • Jeff Wharin, Bohne Spring • Ted White, Hardware Products • Steve Wunder, Duer/Carolina Coil
Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Sue Zubek, Art Director, zubekdesign@gmail.com
Springs Magazine Committee Chair, Ted White, Hardware Products • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Bill Marcum, MW Industries • Brett Goldberg, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisors: Loren Godfrey, Honorary Member • Dan Sebastian, Honorary Member Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho 1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 • Fax: +81-6-6624-3602 E-mail: info@sakurain.co.jp Advertising sales - Europe Jennie Franks, Franks & Co. 63 St. Andrew's Road Cambridge United Kingdom CB41DH Phone/Fax: +44-1223-360472 E-mail: franksco@BTopenworld.com Advertising sales - Taiwan Robert Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, Taiwan Phone: +886-4-2325-1784 • Fax: +886-4-2325-2967 E-mail: stuart@wwstaiwan.com Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 495-8588; Fax: (630) 495-8595; Web site www.smihq.org. Address all correspondence and editorial materials to this address. The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication. The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability. The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention. Do not reproduce without written permission. Cover art credit: ©iStockphoto.com/debibishop
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Contents
40 57 34
48
DEPARTMENTS 2 President’s Message Job Well Done
FEATURES 28 How SMI Companies Manage Human Resources By Gary McCoy
34 Are You Creating a Culture of Unwanted Employees?
52 Flashback
Talent Shortage? How to Win with What You’ve Got By Vince Thompson
55 Fenn Holds Open House
Twelve Low-Cost Suggestions for Welcoming New Hires By Kate Zabriskie
COLUMNS
37 Taking a Conscious Approach to Your Hiring Practices
HR and SHE Management: The Overlap and Some Guidance By Laura Helmrich-Rhodes
By Magi Graziano
40 SMI Holds Inaugural Metal Engineering eXpo By Gary McCoy
48 Manufacturing Day 2015 Has Strong Impact
19 Be Aware Safety Tips
25 Dean of Springs
How Does the Market Value Your Company By Dan Sebastian
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7 Global Highlights 14 Regional Spring Association Report 57 Springmaker Spotlight
American Success Story with a Global Footprint By Gary McCoy
63 Book Corner 65 CTE News 67 Inside SMI 69 Committee Connection 70 New Products 71 Advertiser’s Index 72 Snapshot
Tony Pesaresi, Winamac Coil Spring
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Global Highlights North America Alloy Wire, which makes round, flat, shaped profile and electrical resistance wires in a range of exotic nickel alloys, has become one of the first companies in the West Midlands, UK to start the Fit For Nuclear (F4N) program. The program, which is supported by the Regional Growth Fund, aims to help UK manufacturers measure their capabilities against industry standards and take the necessary steps to close any gaps. The Brierley Hill-based firm will benefit from a £10,000 grant to help it develop a new strategy for targeting this market and ensuring it meets exacting health and safety and performance standards required by the major contractors. It is anticipated that this funding — combined with ongoing support from manufacturing Huw Jenkins and Mark Venables experts at the Business Growth Service – will unlock nearly £750,000 of potential contracts. Mark Venables, Alloy Wire’s managing director, including technical experience, fast lead times and an ability commented: “Some of the specialist wire we produce is to deliver bespoke solutions in a range of exotic alloys. used within component parts and seals and in springs With the additional funding, the company has started to destined for the nuclear sector — especially where they produce a nuclear specific brochure/website and is looking to need to operate effectively in corrosive and intense high attend a number of exhibitions to showcase its capabilities. temperature environments. “We have been supplying the nuclear sector for more “With £60bn of civil build projects and billions more than 17 years, typically at tier 3 or 4. As we have invested in involved in de-commissioning existing plants, there is a new technology and skills, there is definite scope for us to significant opportunity for us to grow our sales from eight get involved in civil build projects and also in components percent of our current turnover.” that can be used when decommissioning reactors.” Venables continued, “It’s not the easiest sector to penetrate, Established in 1946, Alloy Wire is a world leader in so when we decided we want to do more we turned to Fit For the manufacture of precision drawn round wire, flat Nuclear for additional support to help us review our operations wire and shaped wire in a comprehensive range of high and identify where we could make improvements. performance and exotic nickel alloys. The company “The process to gain funding was extremely rigorous supplies wire from 0.025mm (.001”) to 21mm (.827”) and and encompassed every aspect of the business, including currently works with 4,000 customers in 15 sectors. strategy, design, leadership, process, quality management and health and safety.” MW Industries, a leading provider of highly engineered Alloy Wire will spend the next five months working springs, specialty fasteners, machined parts and other its way through the Fit For Nuclear program, working precision components, announced the acquisition of with assessor Huw Jenkins and expert consultants Start Servometer and BellowsTech, world leading manufacturers 2 Finish Marketing and Initiative Quality and Safety Ltd. of precision engineered bellows and electroformed The initial focus will be on developing a strategy that components. Both companies have developed innovative identifies the firm’s key strengths for attracting new work, technologies to service mission critical applications across a variety of markets.
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join the best: 4-8 April 2016 Düsseldorf, Germany I www.wire.de join the best — welcome to the world’s leading trade fair for the wire and cable industry! To find comprehensive information about the latest innovations in wires and cables, manufacturing machinery and equipment, look no further. It is all on display at the world’s most important exhibition — the meeting point for international experts, specialists and global market leaders. A focal point of wire 2016: the growing importance of copper wires in automotive engineering, telecommunications and electronics. An important date in your calendar — your visit to wire 2016 in Düsseldorf!
International Wire and Cable Trade Fair
Wire, Cable, Spring Fibre Optic, Making Wire Products and Machinery
Fastener Technology
Mesh Welding Machinery
For show information: Messe Düsseldorf North America 150 North Michigan Avenue _ Suite 2920 _ Chicago, IL 60601 Tel. (312) 781-5180 _ Fax (312) 781-5188 info@mdna.com _ www.mdna.com For hotel and travel arrangements: TTI Travel, Inc. Tel. (866) 674-3476 _ Fax (212) 674-3477
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Located in Cedar Grove, New Jersey, Servometer designs and manufactures a high quality line of miniature bellows, flexible shaft couplings, contact springs and bellows assemblies. BellowsTech, located in Ormond Beach, Florida, markets a premier line of edge welded bellows and assemblies, encompassing a wide array of alloys and dimensional configurations. Both companies’ product technologies complement each other in terms of size, compatibility, pressure and temperature capability. Bill Marcum, CEO of MW Industries, said, “The Servometer and BellowsTech brands have an excellent reputation for quality, technology, material flexibility and engineering expertise. The company’s products and workforce are highly complementary to our existing business base, and as part of the MW integrated family of companies, we believe that both Servometer and BellowsTech are better positioned to penetrate and expand in our existing markets, including aerospace and aviation, semiconductor, medical, energy and other industrial markets.” MW has completed a number of acquisitions to strengthen its product offerings and customer base and is currently evaluating a strong pipeline of possible transactions. The “Journey to Safety Excellence” campaign of the National Safety Council has added a new partner as the Metals Service Center Institute (MSCI) will sponsor the initiative as one part of a broader program effort to elevate the importance of safety in the metals industry. More than 10 workers die on the job each day, and 4.8 million are injured annually. It is also estimated that more than 50,000 fatal workplace illnesses and 400,000 nonfatal workplace illnesses occur each year. To address this issue in the metals industry, MSCI and the National Safety Council have developed a unique safety program for MSCI member organizations focused on education of safety practitioners, safety measurement and continuous safety improvement. “MSCI is dedicated to educating not only our members, but all employers, on the importance of workplace safety,” said M. Robert Weidner III, president & CEO of MSCI. “By partnering with NSC, we know we will be getting extraordinary guidance from the nation’s most indispensable source of information on best practices in workplace safety.” Based on 100 years of experience, the “Journey to Safety Excellence” provides a model and methods for cultivating committed leaders and engaged employees; safety processes and procedures that are embedded in operations; active removal of risk in the workplace and sound measurement of both lagging and leading indicators of safety performance. The campaign provides safety practitioners access to tools and resources that help organizations of all sizes and levels of safety maturity pinpoint areas of weakness and capitalize on areas of strength.
06.08.15 11:42
Global Highlights
Left: The plaque of appreciation presented from Jim Allore, part family manager from Pratt & Whitney Aircraft to Bill Lathrop of Colonial Spring. Right: The development team from Colonial Spring that worked with Pratt & Whitney to produce components (l-to-r): Steven Lauben, Michael Ouellette, William Lathrop, Sandra Bourgoin and Adrienne LaPrise.
Colonial Spring Company was recently recognized by Pratt & Whitney Aircraft (PWA) with a plaque of appreciation. Colonial Spring president Bill Lathrop says Colonial Spring personnel, PWA engineering and Bodycote Thermal Processing worked collaboratively to develop a new manufacturing process for two critical components for the U.S. Marine Corps new F-35B aircraft. Lathrop said this work had to be completed to achieve initial operational capability (IOC) by the target date of July 31, 2015. “IOC was a very important milestone for the deployment of the F-35B aircraft,” Lathrop explained. “The work of the team brought forth components that met all necessary criteria and IOC was granted.” Colonial Spring has been a critical parts supplier to Pratt & Whitney for over 15 years. “PWA has become a top 10 customer for us and our business with that customer and in the aerospace market continues to grow,” added Lathrop. Colonial is certified to ISO 9001-2008 and AS9100C. Ace Wire Spring & Form Co., Inc. has won the 2015 Manufacturer of the Year Premo J. Pappafava Family Business Award. The Pittsburgh region’s proud manufacturing tradition – and future – was honored at the eleventh annual Manufacturer of the Year Awards program in December, presented by the Pittsburgh Business Times.
Ace Wire Spring & Form, an industry leader in the manufacturing of compression springs, extension springs, torsion springs, and wire form, has been family owned
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“Workers are the heart and soul of every business,” said Deborah A.P. Hersman, president & CEO of the National Safety Council. “By sharing the campaign with its members and beyond, MSCI will be working to help employees go home safely at the end of every day.”
Global Highlights
The Froehlich family of Ace Wire Spring & Form (l-to-r): Ritchy, Linda and Rich, accept the 2015 Manufacturer of the Year Premo J. Pappafava Family Business Award.
and operated for more than 75 years. Located in McKees Rocks, Pennsylvania, Ace Wire Spring & Form recognizes and congratulates its fellow finalists Edward Marc Brands, Inc., Sloan Lubrication Systems, and Walter Long Manufacturing in the continuing work of advancing the local manufacturing industry as a whole.
Obituaries SMI regrets to report the passing of member Joan Alice Costello (nee Henderson), who died peacefully with her family by her side, Oct. 13, 2015 in Mississauga, Ontario at the age of 74, after a spirited battle with lung disease.
Costello is predeceased by her mother Selena, father Harry and brother Bob. She is the beloved wife to husband Leo of 54 years; loving mother to daughter Michelle, (Greg) and son Paul (Monica); proud and loving grandmother to Brittany, Grace and Colleen. After retiring from Bell Canada Operator Services in 1996 with 24 years of service, Costello co-founded Mississauga-based spring and wire form company Springs & Things Inc. in 1997. She was still active in the business up to her passing. Costello’s’s energy and dedication were a driving force behind the company’s success. Costello was an avid gardener, home decorator, cook, seamstress and cottager. Some of her fondest times were shared with family and friends at the family cottage in the Kawarthas. In her younger years, Costello was up to many outdoor pursuits: horseback riding, snowmobiling, ice fishing, sailing and tennis. “It is with a heavy heart that I announce the passing of my mother and business partner,” stated Paul Costello, president of Springs & Things. “She will be deeply missed by her family and the many friends she made throughout the years.” Costello’s life was celebrated with a funeral service Oct. 21 in Mississauga. In lieu of flowers please consider a donation in Costello’s name to the Lung Society, Scott Mission or Trillium – Mississauga 5J Respiratory Unit. SMI regrets to report the passing of Ronald Banas, 79, chairman of Stanley Spring & Stamping Corp. in Chicago, and Stanron Steel Corporation in Ft. Lauderdale, Florida, on Nov. 19, 2015. Banas is a past president of Chicago Association of Spring Manufacturers, Alliance of Metal Working Industries, Washington, D.C. Banas was a certified single-engine pilot, restaurateur and entrepreneur. He also served in the U.S. Coast Guard from 1958 to 1965. Banas was a graduate of Lake Forest College, where he met his wife, Adrienne. He was the beloved husband of Adrienne Banas, nee Matson; loving father of Cynthia Nack, Ronald E. “Reb” (Megan) Banas and Jennifer (Greg) West; dear grandfather of Samantha, Christopher and Tyler Nack; Madison, Ronald E. Jr. “Reb,” Blake and Ryan Banas; Jackson, Harley and Holt West; fond brother of the late Stanley (Dorothy) Banas. Services were held November 23 in Northfield, Illinois. In lieu of flowers, memorials made to Lake Forest College, 555 N. Sheridan Rd, Lake Forest IL, 60045, c/o Office of Development and Alumni Relations, would be appreciated. SMI regrets to report the passing of Richard A. “Doc” Brink, 79, of Manchester, Connecticut, Dec. 17, 2015. Brink was born at home in Cedar Rapids, Iowa, son of the late Edwin F. and Nellie L. (O’Connor) Brink, Sr. on January 29, 1936. He was a graduate of Iowa State University and a member of the 1957 “Big 7” Baseball Championship team that went on to the NCAA College World Series. Later in life, he was proud to have received the Harold “Pinky”
10 / SPRINGS / Winter 2016
Global Highlights
Primrose Award in 2009 designed to honor a former Iowa high school baseball player who went on to be successful and influential in life. Before his retirement, Brink was the owner/president of two companies, BHS-Torin of Farmington, Connecticut and LM Gill Welding of Manchester, Connecticut. He loved golf and was a long time member of The Country Club of Farmington. For the majority of his life Brink enjoyed relaxing at his retreat in Barnard, Vermont, which was his “Field of Dreams.” Brink is survived by two sons a nd a daughter, Todd Brin k of Farmington, Phillip Brink of West Hartford and Julie Neistat and her husband Mark of Newington. He also leaves five grandchildren, Avery, Paige and Mackenzie Brink and Olivia and Raymond Neistat; a sister, Jean Chorbajian and her husband Torcum of Boulder, Colo.; his former wife, Ruth Ellis Brink of Simsbury; and nieces and nephew. Brink was predeceased by his wife, Gail Brink; his brother, Edwin F. Brink, Jr.; and his daughter-in-law, Nancy Calhoun Brink. To extend online condolences, please visit www.farleysullivan.com.
from the fact that it not only has access to the tube bending machinery program of its parent company, but can also use the global service and sales network of WAFIOS AG. WAFIOS Tube Automation GmbH will maintain production of fully integrated, automated tube processing machinery systems. Customers will profit from the merger of the companies as they can continue to count on quality and now have worldwide access to linked solutions from a single source.
International WAFIOS AG, Reutlingen and D i pl o m - K a u f m a n n C h r i s t i a n Benzing, Stuttgart, founded the WAFIOS Tube Automation GmbH, in effect as of Nov. 2. WAFIOS Tube Automation GmbH acquired the assets of Rosenberger AG. R o s e n b e r ge r i s one of t h e technically leading manufacturers of tube bending machines and machines for processing tubes, e.g., cutting, bending and forming tubes as well as automating these processes. The newly founded company’s goals are to continue and expand the existing product range of the Rosenberger AG, and to pool their activities with the tube bending technology of the WAFIOS AG. The WAFIOS Tube Automation GmbH has plants in Simonswald and Apolda, Germany. WAFIOS Tube Automation GmbH benefits
SPRINGS / Winter 2016 / 11
Global Highlights
The Waelzholz Group has acquired Wickeder’s Cold-Rolled Steel Strip product group from Wickeder Westfalenstahl. For both companies, the impending change of hands for “Cold-Rolled Steel Strip,” with an annual sales volume of more than 50,000 tons, signifies an important strategic decision. The acquisition is currently awaiting approval by Germany’s antitrust agency. With its sale to the long-standing company Waelzholz, Wickeder Westfalenstahl will take an additional step toward focusing on its core business activities and their systematic expansion in the future. The Wickeder Group is currently the global market leader in clad materials and thermostatic bimetals. Since its founding in 1913, Wickeder Westfalenstahl has strengthened its market position through continued product innovations and strategic acquisitions. It maintains plants in Europe, the Americas and Asia. The Wickeder Group, which includes the companies Wickeder Westfalenstahl, Auerhammer Metallwerk, Deutsche Nickel, micrometal and Engineered Materials Solutions, has its strategic focus on specific technically demanding niches and product groups. The product group “Cold-Rolled Steel Strip,” on the other hand, is situated in a market environment fit for Waelzholz as a supplier for high-quality cold-rolled steel strip for
demanding applications. With more than 1,100 employees working in nine plants, the Wickeder Group generated 320 million euros in 2014. The acquisition will enable the Waelzholz Group to expand its core business with cold-rolled steel strip to include additional specialty products in the area of electrical steel, especially for e-mobility applications. Waelzholz is a medium-sized group of companies and a leading manufacturer of cold-rolled and heat-treated steel strips and profiles. Founded in 1829 as a family-owned enterprise and based in Hagen, Germany, the group currently employs more than 1,900 people around the world. The market leader produces more than 600,000 tons of high-quality cold-rolled steel products each year at nine sites in Europe, North and South America, and Asia. Waelzholz primarily caters to customers from the automobile industry, energy producers and consumers, and companies in the industrial goods sector such as producers of construction equipment, electrical appliances and cutting dies. Wickeder West fa lensta h l a nd Waelz holz w ill collaborate closely during the transition of activities at the Wickeder site. This will allow both companies to continue delivering the highest standards in service and product quality to their customers in the future. n
35
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Regional Spring Association Report SESMA Holds Its First Meeting at Charlotte eXpo The Southeast Spring Manufacturers Association (SESMA) held its first-ever meeting during the inaugural SMI Metal Engineering eXpo in Charlotte. “Thank you all for your participation in the first ever meeting of SESMA,” said Michael Wright, southeast technical sales manager for Diamond Wire Spring Company in an email to the more than 20 participants who attended. Wright, who helped organize the event said to those who attended, “Getting to know all of you a little better was the highlight of my week at the SMI eXpo! If any of you got half of what I did out of the meeting, I know the group will flourish.” In addition to the opportunity to network, the group heard a presentation by Laura HelmrichRhodes, SMI’s independent regulations consultant.
Laura Helmrich-Rhodes
Michael Wright
“It is clear to me after this first gathering there is enough interest to press on with this endeavor,” said Wright. “I will start working on organizing our next gathering.”
Look for more information on the group’s next gathering in future issues of Springs.
WCSMA Celebrates with Fall Golf Tournament and Dinner Members of the West Coast Spring Manufacturers Association gathered at Coyote Hills Golf Course in Fullerton, California for its annual fall golf tournament and dinner. Enjoy these photos from the event. To keep in touch with WCSMA activities, be sure to visit www.wcsma.us.
14 / SPRINGS / Winter 2016
Regional Spring Association Report ©iStockphoto.com/Scott Hirko
CASMI Hosts Successful Fall Events The Chicago Association of Spring Manufacturers, Inc. (CASMI) hosted two successful events this past fall. On Nov. 5, more than 80 CASMI members and SpringWorld exhibitors and potential exhibitors gathered at Maggiano’s Little Italy in Oak Brook, Illinois, for the SpringWorld 2016 Kick-off Dinner. This biennial event signals the beginning of the year leading up to SpringWorld, which takes place Oct. 5-7, 2016, at the Rosemont Convention Center in Rosemont, Illinois. In addition to networking, dinner and show announcements, Ross Bernstein, best-selling sports author and inspirational speaker, delivered the presentation “The Champion’s Code: Life Lessons in Ethics and Accountability From the Sports World to the Business World.” Bernstein has been featured on CNN, ESPN, Fox News and CBS This Morning. CASMI hosted its Annual Holiday Party Dec. 10 at The Great Escape in Schiller Park, Illinois. More than 50 CASMI members were on hand to celebrate the coming holidays. As a part of the event, members provided a $5 donation at the door, and CASMI held a raffle with all proceeds being donated to the Mercy Home for Boys and Girls to assist the less fortunate during the Christmas season.
Attendees at CASMI's Holiday Party. Top (l-to-r): Former CASMI president JR Strok and David Purcell, WAFIOS. Bottom (l-to-r): Joshua Kahn and current CASMI president Tony Iuliano.
CASMI’s 2016 Scholarship Program CASMI is proud to sponsor a scholarship program to benefit dependents of the employees of member companies. Founded in 1944 to promote the interests of the spring manufacturing industry in the greater Chicago area, CASMI has engaged in many
activities, including sponsorship of the biennial SpringWorld Trade Show. This event’s success has made it possible to fund many significant programs, including this scholarship. CASMI is grateful to the many industry suppliers and spring manufacturers from all over the world who make it possible to provide this support that helps recipients to obtain the education that is so necessary to personal success. This scholarship program is administered by Scholarship Management Services®, a division of Scholarship America®. Scholarship Management Services is the nation’s largest designer and manager of scholarship and tuition reimbursement programs for corporations, foundations, associations and individuals. Awards are granted without regard to race, color, creed, religion, sexual orientation, gender, disability or national origin. CASMI members and staff are not involved in the selection process. All eligible students are encouraged to apply for these awards. While awards are not “renewable,” students are eligible to reapply every year they are in school. Details on the 2016 Scholarship Program, which begins accepting applications in February, are available on the association’s website, www.casmi-springworld.org.
NESMA Participates in Bristol Tech TTAC Fall 2015 Meeting By Ted White The Trade Technology Advisory Committee (TTAC) of the Connecticut Technical High School System requires each technical high school to hold an open house program each year as a part of its accreditation process. Because NESMA is a longtime supporter of Bristol Tech (formally known as The Bristol Technical Education Center), they are always invited to this function.
NESMA members present were Bill Waseleski, president of Century Spring; Scott Kirkpatrick, vice president of Radcliff Wire; Bill Lathrop, president of Colonial Spring; and I was there as president of Hardware Products. Also present at the meeting were Susan Sadeki, president and CEO of Main Street Community Foundation; Janine Audet, Bristol Board of Education; and Jim Albert,
SPRINGS / Winter 2016 / 15
Regional Spring Association Report
president and Cindy Scoville, vice president of the Central Connecticut Chamber of Commerce (Scoville is also executive director of NESMA). Making the presentation was Stephen Hanecak, Work Based Learning coordinator of Bristol Tech (filling in for Ben Russel, manufacturing coordinator of Bristol Tech); and Luz Manson, the new coordinator of Bristol Tech. The presentation not only included the manufacturing program but the personal skills required for success. Hanecak went through the mission statement, the admission requirements, and the theories and skills taught to the students. Some of the items discussed were safety, the use of measurement instruments, proper lathe operation, proper milling machine operations, ProtoTrak operation, blue print reading, drill press operation and metal properties. The personal skills presentation illustrated the need for organization, verbal and written communication skills, social interaction, general trade knowledge, ability to accept criticism, proper hygiene, work ethic and proper attendance. As the formal presentation ended and discussion ensued, it became clear that the program is open not only to high school undergraduates but to post graduates as well. The tuition schedule and scholarship possibilities were also discussed in detail. The discussion then led to the fact that not only is this a daytime program, but Bristol Tech offers
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an extensive nighttime program of apprentice and extension courses. This discussion was of note to t he N ESMA members because t hey a re interested in engaging daytime graduates, as well as in sending current employees to some of the nighttime classes to further hone their skill sets. Because Bristol Tech also has a culinary division, at tendees wer e t r eated to a f u l l lu nc heon. The culinary students indicated both their dedication and professionalism when performing this function. Once the luncheon was over, a tour of the manufacturing facility began. The equipment available for student education is remarkable. In addition to the customary lathes and milling machines, there are CNC lathes, CNC milling machines and several other pieces of modern equipment. The manufacturing equipment available has been markedly upgraded over the last few years due to the hard work of several individuals resulting in grants to Bristol Tech. During this aspect of the program, I was fortunate enough to have a very pleasant conversation with one of the students. This young man told me he had graduated from high school in a college preparatory program and had no knowledge of machinery or manufacturing whatsoever. Unable to obtain any sort of acceptable employment, he joined the daytime program. He obtained a scholarship, which virtually eliminated the tuition and fees, and began the program. Now that he has almost completed the program, he’s been asked by two different companies to become an employee. He went from being in the unenviable position of not being able to gain employment to the very enviable position of having to choose between two firms that are offering quite lucrative packages. Even with these options, this particular young man is going to come back to Bristol Tech and take the CNC machinery course so that he can even further develop his skill set. In addition to learning machinery and manufacturing skills from the program, it was obvious that this young man learned many of the life skills as well. During our conversation, he was direct, enthusiastic and respectful. In one package, this young man was indicative of the availability and the need of Main Street for the scholarship possibilities, Bristol Tech for the education and the Bristol Board of Education for the oversight of all of the above. The Central Connecticut Chamber of Commerce and NESMA can also share in this shining example. Most importantly, Bristol Tech employees Manson, Russel and Hanecak deserve the admiration and respect from the manufacturing industry for providing us with such admirable young candidates. For more information on NESMA, visit www.nesmausa.com. n
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Be Aware Safety Tips
HR and SHE Management: The Overlap and Some Guidance By Laura Helmrich-Rhodes, CSP, Ed.D.
I
nvesting in the professional development of those individuals who are handling your human resources (HR) and safety, health and environmental (SHE) management issues has become more important in recent years as the functions have become more complicated and the professional lines of content continue to blur. The days of assigning these duties to a trusted clerical person or talented maintenance man have passed. The legality of decision-making and recordkeeping alone make the assignment of these duties mission critical. Staying apprised of regulatory changes alone for both HR and SHE is nearly a full-time job in any size company. The crossover of these two professions is rarely discussed in academic literature. For that reason, I surveyed 510 Industrial and Labor Relations graduates (Indiana University of PA) in 1999 in fulfillment of my doctoral dissertation. Similar questions were presented to SMI member companies in the summer of 2015. The influence of company size and need for continued professional development for those assigned these duties continue to be an industry need. Informative highlights of those similarities are discussed here, as well as “hot issues” and advice on program improvements. SMI members surveyed said that few have fulltime HR (about 32 percent) or safety (about 30 percent) professionals. About 78 percent of those members responding had fewer than 100 employees. This is consistent with my earlier findings. The dissertation study showed that size influenced many items, including hiring separate HR and safety professionals as well as the creation of line item safety budgets. The addition of full-time HR/ safety managers may simply not be cost effective for small companies. Still, according to my earlier findings, most professional HR managers may not have adequate preparation to address specific SHE issues. The dissertation survey of working HR professionals identified safety related issues with which they had dealt with in the last 12 months. Overwhelming response was that they did not feel they were adequately prepared to handle those safety issues. Due to regulatory changes, court decisions and executive orders, the importance of continuing education for those handling the HR and SHE functions is paramount. The results from the dissertation
The dissertation survey of working HR professionals identified safety related issues with which they had dealt with in the last 12 months. Overwhelming response was that they did not feel they were adequately prepared to handle those safety issues. study created curriculum topics that HR managers should be seeking in their degree or professional development seminars if they are handling both functions. SMI members and dissertation respondents both listed accident investigation training as a priority-training topic. A few other crossover items identified in the original study which continue to be of interest to both HR and SHE include: workers’ compensation, contractor selection, disaster preparedness, employee training and grievances. Who is addressing these concerns in your facility? (See diagram of intersection of professions on page 21.)
In-House or Contracted HR/SHE Support? For smaller organizations unable to hire professionals, a different and more cost effective strategy may be necessary. Training those who are overseeing the functions can be provided by professional organizations such as Society of Human Resource Management (SHRM.org) and Board of Certified Safety Professionals (BCSP.org). Such training may make your company less likely to have missing
Laura Helmrich-Rhodes, CSP, Ed.D., is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A former member of PA/OSHA Consultation, she is an associate professor in the Safety Sciences Department at Indiana University of Pennsylvania where she teaches graduate and undergraduate classes on topics such as OSHA standards, safety communications, workers’ compensation and human relations. Rhodes is available for safety advice and information. Contact SMI at 630-4958588 or laurahrhodes@gmail.com.
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Internal Safety and HR Resources Graduates 1980–1999
Small Company (<1,000)
(L.H. Rhodes Study 2000)
Separate safety department 28.3% Separate safety and HR budgets 24.5% Presence of a safety committee 67.3%
Separate safety department 53.2% Separate safety and HR budgets 60.9% Presence of a safety committee 72.3%
Large Company (>5,000)
Medium Company (1,000–4,999)
Separate safety department 59.1% Separate safety and HR budgets 66.7% Presence of a safety committee 74.7%
©iStockphoto.com/prettyboy80
SMI Member Survey Responses 2015
79.5%
73%
31.8%
30.2%
Someone assigned the duty of OSHA recordkeeping
Have a Safety Committee
Have a Safety Manager
Have a Human Resources Manager
<50
62.2% Member Response Based on Number of Employees
50–100
16.6% 100–500
20% >500
2.2%
20 / SPRINGS / Winter 2016
programs or errors. Training shop supervisors through such organizations as the National Safety Council (NSC.org) certificate programs will likely have a positive influence on safety culture. The most obvious solution is to utilize the resource in which you have already invested. Almost 40 percent of SMI respondents said they had not had a visit from their insurance company loss control representative in the last year. Most large insurance companies and insurance brokerage houses now h i re sea soned SH E professiona ls from the insurance industry and new professionals from accredited colleges and universities. These individuals are well prepared to help with your needs. It is likely that you are paying for this service in your workers’ compensation and/or property insurance premium. Be sure to utilize them to the fullest! Many local community colleges, fouryear colleges and universities have robust internship programs that more industries should consider. Some interns are paid others are unpaid. Our SHE academic department has a two-day career fair in which more than 60 domestic and global companies seeking interns come to meet and interview. Your organization is likely located near a similar opportunity. Consider hiring upper level (junior/senior) students, from accredited schools, to work on specific projects related to the HR and SHE programs. For ex a mple, t he OSH A GH S requirements for chemical labeling kick in January 2016. Where are you on complia nce? An audit of you r compliance by an HR or safety intern would be a worthwhile project and may save you significant fines. Do you have all the written employee programs required by the Department of Labor? Again, a compliance audit and upgrade would be an excellent opportunity for both the upper level student and for your company-win/win! Of course standard confidentiality agreements happen in these situations. That is a hurdle easily handled. Another cost-effective strategy that you might consider is seeking an outside HR/SHE consultant. There are several key items to consider. Here are a few.
Safety Curriculum Needs for the Human Resources/ Industrial Relations Professional
al Compliance Leg
Communication of Hazard Control Information • New employee safety training • Ongoing safety training • Safety committee administration • Safe behavior reinforcement • Incentive programs • Information management
Development of Hazard Control Methods, Procedures and Programs • Safety policy development and implementation • Implementing safety in modern, nonhierarchical workgroups • Written program development • Safe contractor selection • Fleet safety program elements and implementation • Workplace violence prevention/mitigation • Workers' compensation management/ experience modification
in g velop Hum De Resources an
aining Hum ObtResources an
Identification & Evaluation of Hazardous Conditions & Practices • What is a hazard? • Evaluating the safety, fire and health risk • Developing and assigning hazard inspections • Disaster preparedness • Fire emergency management • Ergonomic hazards • Accident investigation techniques • OSHA regulations and standards • Job safety analysis
M Hum aintaining es an Resourc
1) Who is my face-to-face consultant? When choosing a consultant or part-time professional, take into consideration academic preparation and work experience as well as professional certifications. Be certain that if you are hiring a firm that the assigned consultant has the qualifications you want, not just the owner of the consulting business. Many firms are created by well-known and competent professionals who then hire less experienced staff to be the actual face-to-face consultants. 2) Is my consultant Board Certified CSP, CIH SPHR or PHR? The Board of Certified Safety Professionals (BCSP), American Industrial Hygiene Association (AIHA) and the Society for Human Resource Management (SHRM) each has rigorous exams, codes of ethics and requirements for continuing education. Also, if you already have professionals on staff, they should be working toward certifications
Measurement of Effectiveness Hazard Control Program • Safety program management • OSHA recordkeeping/incident rates • Implementing safety audit activities • Safety performance as an indicator
offered by these gold standard organizations. Any other certifications, in my professional opinion, are less rigorous than those. If your contracted consultant has none, there is likely a reason. Keep searching. 3) What is the response time? Every company should have a working relationship with a Certified Industrial Hygienist (CIH) or Certified Safety Professional (CSP) specializing in industrial hygiene, in the case of an OSHA visit where they are taking samples such as air or dust or conducting employee monitoring for vapors or noise. Part of your written procedure for handling an OSHA visit (if you don’t have one, write one!) should be to notify your consultant so that exactly the same samples can be taken while the compliance officer takes his or hers. Keep in mind, compliance officers are most likely NOT certified.
SPRINGS / Winter 2016 / 21
Most large insurance companies and insurance brokerage houses now hire seasoned SHE professionals from the insurance industry and new professionals from accredited colleges and universities. These individuals are well prepared to help with your needs. It is likely that you are paying for this service in your workers’ compensation and/ or property insurance premium.
Hot Topics The dissertation survey, current OSHA news releases, and SMI membership responses indicate there continues to be an overlap and urgency in seeking professional development for those assigned to the HR and SHE functions. One very recent issue with Department of Labor (both OSHA and wage and hour) is the use of temporary employees. According to Dr. David Michaels, assistant secretary of labor for OSHA, temporary employees frequently change worksites numerous times a year, putting them at greater risk for injury. These workers
often are inadequately trained to identify hazards and unaware of safety measures. As a result, OSHA has placed an emphasis on their protection. Because more than two million Americans report being a victim of workplace violence each year, OSHA considers it a hot issue. Some employers are not aware that injuries, even such things as broken eyeglasses that arise due to workplace violence such as fistfights and pushing and shoving, are OSHA recordable. There are several program items that you need, including a written zero tolerance policy and a very strict escorted visitor policy. For more information see Safety & Health Topics at https://www. osha.gov/SLTC/workplaceviolence/ The Americans with Disabilities Act requires that every employer perform job analyses and create written job descriptions. This is just one more crossover between HR and safety, and another great intern assignment! If you do not have written job descriptions with essential functions, you need to make this a priority. These are helpful tools in selection, hiring, training, and even accident investigation. For more information see Dept. of Labor publication at http://www.dol.gov/odep/pubs/misc/job.htm Employment issues become more and more complicated and more and more mission critical. How is your company managing the risks? n Accredited Safety University Degree Programs http://main.abet.org/aps/accreditedprogramsearch.aspx East Carolina University > Greenville, NC Fairmont State University > Fairmont, WV Illinois State University > Normal, IL Indiana University of Pennsylvania > Indiana, PA Marshall University > Huntington, WV Montana Tech of the University of Montana > Butte, MT Murray State University > Murray, KY Oakland University > Rochester, MI Trinidad State Junior College > Trinidad, CO University of Central Missouri > Warrensburg, MO University of Houston - Clear Lake > Houston, TX West Virginia University > Morgantown, WV Online Sources of professional development for those acting as HR/Safety personnel at your facility American Society of Safety Engineers http://www.asse.org/education/ Board of Certified Safety Professionals http://www.bcsp.org/SH-E-Practice Society for Human Resource Management http://www.shrm.org/education/pages/default.aspx National Safety Council –Safety Supervisor/HR Professional Development Courses https://nsc.csod.com/LMS/catalog/Welcome.aspx?tab_ page_id=-67&tab_id=-1
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Dean of Springs
How Does the Market Value Your Company By Dan Sebastian
D
uring my many years in the spring industry, I asked or have been asked: â&#x20AC;&#x153;How much is my company worth?â&#x20AC;? In my early days as an engineer and later as a manager at Associated Spring, it was very easy: as a public company the value of the stock was set by the stock exchange. It did not have to make sense or even follow basic logic, the public set the value based on what they believed. After joining MW Industries it was not so simple. As with most springmakers who own or have a limited number of family members or investors, it is not as easy to determine the value of your company. The value is important for a number of different reasons: 1) Estate planning 2) Access to capital like bank loans 3) Valuation for buying or selling Whatever the reason, getting a realistic value is important.
Asset Valuation This method, most often used by community banks, regional banks, insurance companies, brokers and the SBA (Small Business Administration), is valuing the assets of the business. Keep in mind that all tangible as well as intangible assets have value, but some institutions may not give you credit for or may discount some of your assets. If you are selling or buying, all assets have a value but some may be more difficult to value than others. The easiest item to value is your cash, accounts receivable (history of collectibles and timing will affect the value). Land, buildings, and equipment are harder to value because it can be more subjective. In the case of land and buildings, it is important to understand how the current market and location impact your value. There are some companies that, because of their unique location, the land or buildings could be worth more than the core business. The equipment value is based on what you could get for it in an orderly liquidation (the depreciation value can have some impact on value). There are companies that can give you an equipment appraisal. You should exercise caution in selecting an appraiser to make sure they know the value of spring equipment. Keep in mind that many lenders may require that the appraiser be certified to assure the quality of the appraisal. Lenders like an asset-based loan because the underlying collateral (the assets) minimizes the risk in the loan if there is a default and they have to take
control. The lender may also discount the book value of the assets to protect their investment. Using asset-based value to determine the sale value can be risky as it does not give you credit for the companyâ&#x20AC;&#x2122;s earnings. This is good and bad. If you have lots of new expensive equipment and/or a new building and your earnings are below average, the assets will drive the valuation, provided the acquirer is knowledgeable enough to recognize what the business could earn if the assets were utilized to their maximum potential. If your earnings are above average, the asset-based loan could undervalue your business. Asset-based valuation for sales or acquisition gets more complicated when you determine the value of the intangibles like your intellectual property (i.e. patents, trade secrets, processing technology, skills of your employees, etc.). Your customer list, contact information, supplier list and relationships with sub-contractors all have value.
Earnings (Cash) Valuation This method is commonly used by investment banks, private equity firms, and/or venture capital investors. It is based on your earnings and ability to generate cash. The investor will start with your EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization). In many ways this is the fairest way to evaluate your business because it tells the prospective investor, lender or acquirer how much money the business earns based on the assets you use to run your business. It discounts expensive equipment, land and or buildings that do not return profits based on the cost for them. It values assets that are efficiently utilized. It rewards you for the more hours you run the equipment (second and third shifts). It also gives you credit for the ingenuity and skills of your employees that help you make more and or better parts than your competitors.
Dan Sebastian is a former SMI president and currently serves as a technical consultant to the association. He may be reached by contacting SMI at 630-495-8588.
SPRINGS / Winter 2016 / 25
Using the earnings to value your company gives you credit for those intangibles that are hard to value because it is direct proof of how your intellectual property earns you your business. This method also helps you value your sales group. Good sales efforts give you the operating advantage over your competitors. It shows how your customers value your product above the cost of production. Good companies do not sell based on price (this is difficult with many costdriven customers), they sell based on the value your product provides. Everything you do from selling, manufacturing, shipping, billing and collection should have a value and add to your margin above operating cost and has a value.
Company Structure and Size The legal structure and size of the company can have a significant impact toward determining the value. The structure can be very important in the buying and/or selling value of the company. The tax laws on depreciation of the assets can affect the taxes after the transaction, which will affect the cash earnings of the company. In a similar way, the accounting and tax rules on the amortization of certain assets can impact future taxes and cash flow. These same issues can also impact the loan value of the company. Size does matter. In most cases, the larger the company, the greater the value the lender, buyer or seller will put
on the company. Many of the transaction costs like legal work and auditing of the data are the same regardless of the company size. There are now many new rules the government has imposed with which banks are required to comply, which add to the cost no matter the size of the transaction. This will have an effect on how value is determined. The costs are so high that in many cases banks will only make smaller loans that are underwritten by the SBA, which not only adds cost but the time required to complete that will affect value.
Summary The reason you are valuing your businessâ&#x20AC;&#x201D;estate planning, access to capital like bank loans or valuation for buying or sellingâ&#x20AC;&#x201D;can have an impact on which method you use to determine its value. Each of the methods has advantages and disadvantages, so choosing the method that best meets your needs is important. The market conditions at the time of valuation have a significant impact on the value. You should also remember that the current tax laws and the legal structure of the company can affect the value. In any case, it is important for you to research how the different methodologies affect your business. It can be helpful to talk to and/or use advisors who you trust to guide you through the process. n
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26 / SPRINGS / Winter 2016
Thank you for attending
SpringWorld® 2014
Over 2,700 Spring Industry Professionals were in attendance.
SpringWorld provides a unique opportunity to network with other spring manufacturers and wire formers: •
The premiere spring show since 1960.
•
A global showcase for suppliers to the spring and wire form industry from 15 countries.
•
See the newest technology available to improve your productivity, quality and service.
•
One-on-one discussions with others who share your concerns offering new insights for your business.
•
Attend free educational seminars offered by exhibitors on the show floor.
We’ll see you again for
SpringWorld® 2016 www.casmi-springworld.org
October 5-7
Donald E. Stephens Convention Center Rosemont, IL SPRINGS / Winter 2016 / 27
How SMI Companies Manage
Human
Resources
By Gary McCoy
©iStockphoto.com/debibishop, VoodooDot/Shutterstock.com, Colorlife/Shutterstock.com
28 / SPRINGS / Winter 2016
If we had time to survey and interview the hundreds of different spring companies that are SMI members for this article, the variety of answers would be quite different when it comes to how members handle the human resource (HR) function at their companies. A survey conducted by SMI in June 2015 found that a little less than one-third (30.2 percent) of SMI companies have a full-time HR professional on staff. For those SMI companies who do not have the luxury of someone fully devoted to the function, it’s a mixed bag of how they handle the various duties that are part of an HR department. “Let’s face it, managing people is not why an entrepreneur goes into business,” states Patricia Lotich, the founder of Thriving Small Business in an article, “Human Resource Management in Small Business,” at her website www.thethrivingsmallbusiness.com. “Small-business owners often lack the interest or skill set to manage their most valuable asset – their human resources.” Typically, the management of the HR function is fulfilled through a full-time staff person, between several staff members, or outsourced partially or fully to a professional organization. Lotich in her article outlines six areas of HR that every organization should manage. They include: 1. Compensation and Benefits 2. Recruitment and Staffing 3. Training and Development 4. Employee Relations 5. Employee Satisfaction 6. Labor Laws and Legal Compliance
How Three Companies Approach HR
©iStockphoto.com/debibishop
In this article, we will take a look at how three SMI member companies of different size look at the HR function. R. Hale Foote, president of Scandic Springs, Inc. in San Leandro, California, said he cannot give a pithy answer about how HR is dealt with at his company. “We handle the different functions that are loosely organized under human resources with a couple of people internally and a couple of professionals externally,” explained Foote.
Two major areas that are outsourced are the administration of 401(k) and health insurance programs. With an employee base of around 40, Foote said he likes the stability that a large outside company provides for his programs. Even with those programs in place with large, wellestablished companies, Foote says, “We have an inside person to help relay the information to employees.” In Foote’s case, the internal employee is his office manager, a 30-year veteran of the company who is conversant in Scandic’s health insurance and 401(k) plans. “If she doesn’t have the information, she knows exactly who to call to get it.” Foote said that his team works hard to create an environment where employees have easy access to important information about pay and benefits. He goes on to say, “There are lots of wrinkles and lots of questions, so it sets employees’ minds at ease knowing that there’s somebody here who knows it pretty well and will get answers for them.” The company’s 401(k) provider has what Foote describes as “an excellent online portal where plan participants can directly manage their funds. Lots of people here take advantage of that.”
SPRINGS / Winter 2016 / 29
In addition the company’s health insurance carrier, Kaiser, has many helpful online resources. “I think these self-directed HR situations will become more and more common,” he added. Foote estimates that his office manager spends about 25 percent of her time on HR actions such as payroll, tax filings and other compliance issues. The areas of safety and training take up about 10 percent of one person’s time and 15 percent of another person’s. Foote believes it’s important to have one person focused on training, which in his case is the company’s production manager. Scandic Springs participates in a California employer training program that has more than $115 million dedicated to help employers train their employees. “You can either do it internally or bring in outside trainers,” explained Foote of the program. “If you want to have your lead man in a certain department talk about setup reduction and teach other people, the state will pay for that.” Foote says there is a little bit of administrative time upfront to enroll and be qualified. “Essentially if you’re in high-tech manufacturing, like most SMI members are, and you’re in California, you qualify.” When it comes to recruiting new employees, Foote said he has different people at Scandic involved, including himself. One of the things Foote is responsible for is an apprentice program through the state of California that
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j n m a c h i n e r y. c o m 30 / SPRINGS / Winter 2016
was recently reinvigorated. “I am by no means qualified to train apprentices, but I helped identify the state program and connected them with people that are enrolled.” When asked if he had ever considered outsourcing HR to companies like ADP, Insperity or Paychex, Foote said no. “We’ve certainly been solicited to do that with the current crop of web-based providers or others,” said Foote. “I’ve never felt like we needed to or that it was a good match for us. I’d be happy to learn more, but it’s just never has really been a fit before.”
Fully Committed Jessica Morse is the human resources manager at Michigan Spring & Stamping (MS&S) in Muskegon, Michigan. She has been with the company more than 10 years and has a Bachelor of Business Administration in Business Management with a Human Resources emphasis. While working at MS&S she has also earned certifications as a Senior Professional in Human Resources (SPHR) from HRCI (Human Resources Certification Institute) and as a Senior Certified Professional from the Society for Human Resource Management (SHRM-SPC). “These certifications show I have achieved breadth and depth knowledge of not only HR, but of the other functional areas of business management as well.” explained Morse. Morse said the pass rate for the SPHR test is just barely over 50 percent and passing it on the first try is very difficult to accomplish. “Being able to pass the test the first time and get certified shows not only dedication to the field, but also proves the knowledge I have on the many aspects of human resource,” she said. Morse also explains that the credentials for both certifications require continuous education to renew. Morse believes having a full-time HR professional at Michigan Spring & Stamping is very important for employeerelated items that can change on a daily basis such as health benefits, 401(k) administration, review tracking, legal issues and “equitableness from supervisor to supervisor.” Her role demands that she to be a neutral party when an employee has an issue and it’s imperative to have an HR representative to be sure the proper procedures are being followed to head off lawsuits from disgruntled employees. “At Michigan Spring & Stamping the employees know they have someone they can rely on and go to that will be honest with them, who will find the facts behind what is going on and follow up on it. It’s very important for the employee to know how important they are and know they will be treated fairly,” she explained. “We focus not only on business needs, which are of course a priority, but we also focus on the needs of the employees and helping them with items that may be outside of their comfort zone, such as online enrollments for benefits and 401(k).” Morse said it’s not uncommon for her to drop everything and help an employee who’s having trouble with something, such as an insurance claim. The
Even with [401(k) administration and health insurance] programs in place with large, well-established companies, Foote says, “We have an inside person to help relay the information to employees.”
role is one where multitasking is mainstream and the duties are meticulous in nature. No two days are the same. Morse’s responsibilities include recruitment, employee placement, new employee orientation, professional development and leadership training, wage and benefits administration, grant funding for training, labor law compliance, program development, company publicity within the community, coaching and mentoring, payroll, time and attendance, policy review and implementation. The only part of HR that is partially outsourced is payroll. Michigan Spring & Stamping is still responsible for tracking all the hours internally and entering employee related information.
Company size plays a strong role in having a full-time human resources manager. Michigan Spring & Stamping has 128 full-time employees and 12 temps at its Muskegon plant, and an additional eight full-time employees and four temps at its branch in El Paso, Texas. When it comes to finding new employees, company size doesn’t matter as much because it’s a challenge for all SMI members. Morse cites “finding people with the talent and skills we need to grow the company” as among her greatest challenges. “I am sure you hear this all the time. Parents are guiding their kids into more of a business role rather than manufacturing. We need to do everything in our power
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to make manufacturing viewed as a career worthy of pursuing again. We really want to make the current high school students see that manufacturing is a career and not just a job,” said Morse. “We’ve implemented programs for just this purpose such as our Education Assistance Program. We encourage our employees to work from the ground up by helping them with tuition costs up to 100 percent of program costs and books. It shows that we invest in our people. We also are active in the community by attending college job fairs and participating in local high school advertising so that we can come face-to face with potential new employees. “This has been extremely helpful,” she reiterated. “Our plan for 2016 is to get even more involved on the high school level and visit local schools and bring kids in for tours so they can see how incredible what we do really is.” Michigan Spring & Stamping also works with local tech schools who help by referring top students who are attending machining and automotive classes. Morse plays a big part in scheduling employee training and working with local colleges to get the training the company needs. She works with local community colleges to help them understand manufacturing’s current needs like training in measurement, blueprint reading, basic machining and advanced machining. The school has also been a resource for finding new employees. Training is an extremely critical component, explained Morse. It’s important to recognize talent within the company ranks and encourage them to attend classes so they successfully move up in the company. And with regard to new students coming out of high school… the basics that I learned in school are no longer being taught,” she said. “Wit hout t he tec h n ica l, ha nd s- on sk i l ls l i ke woodworking, drafting and machine shop that years ago were commonly taught in high school, training is imperative. Some high schools are beginning to bring those classes back, but the post-Millennials that are being interviewed now need training beginning at the basics.” Morse understands that not all spring companies have the luxury of a full-time person, and when asked what advice she would give those companies, she said “It’s important to find a way to get employees the answers they need. If you are not present part of the time, be sure there is a well-known chain of command so the employees know who they can talk to or where they can find answers, and be sure there is someone there to represent them who can do a great job in coaching and mentoring,” Morse advocated. “The key is to be sure the employees understand how truly important they are and to get them what they need and make sure they are heard and acknowledged,” she said. “Without our employees, and what they can do, there is no Michigan Spring and Stamping.”
Help Inside and Outside Ted White has worked at Hardware Products in Chelsea, Massachusetts for over 40 years and has been
32 / SPRINGS / Winter 2016
“The key is to be sure the employees understand how truly important they are and to get them what they need and make sure they are heard and acknowledged.”
its president since 1998. Hardware Products is one of several companies owned by Dallas-based SEI MetalTek. In addition to Hardware Products, the holding company operates SEI MetalForms, Spring Engineers of Houston, Colonial Spring, Hopwood Globe and John M. Dean. SEI MetalTek handles the administration of health insurance and 401(k) programs. In Hardware Products’ case, the bulk of the company’s HR function is carried out by the company’s accountant and bookkeeper. While the retention of HR records goes through SEI MetalTek’s headquarters in Dallas, the hiring of new employees is handled locally by White and his staff. Payroll is one service that is outsourced locally by Hardware Products.
White says labor laws in Massachusetts are among the most difficult in the country, which is why it makes sense for SEI MetalTek to let this function be handled locally by its operating units. “Due to the complexity of Massachusetts’ labor law, we belong to the Associated Industries of Massachusetts (AIM) to help us with labor law matters,” explained White. AIM provides Massachusetts companies with a unique combination of lobbying, management and human-resource services. White finds them most helpful for compliance with complex employment laws and regulations. White says the local organization provides the company with a labor law manual and access to a labor law attorney. “I recently used this person (the attorney) to review all our job descriptions to make sure they are in compliance with state law,” said White. The company’s compliance with safety and regulatory issues is handled by Hardware Products’ manufacturing engineer. “OSHA varies by state, so it is good for us to handle this on the local level,” explained White. “What we need to do in our state may be different from Connecticut or Texas.”
Making a Decision Whether HR is viewed as a strategic part of a company’s operation or seen as more of an administrative function, there’s no arguing that human resources must click on all cylinders to keep current employees happy through innovative wage and benefit programs and in recruiting new talent. Outsourcing only makes sense when internal resources are not available, and outside expertise can help mitigate potentially negative consequences (fines and taxes). In the case of SMI member companies, HR is a function that is being carried out in many different ways, both internally and externally. What these companies decide is ultimately what makes the most sense for their current situation. There’s no doubt that changes in the growth and size of a company could make for an entirely different decision down the road regarding HR. n
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©iStockphoto.com/sturti
Are You Creating a Culture of Unwanted Employees? Twelve Low-Cost Suggestions for Welcoming New Hires By Kate Zabriskie
J
acqueline remembers her first day at her last job almost as if it were yesterday. She had on a new outfit, left her apartment early, and was excited to get to work and learn everything she could about her new company. After a brief “hello” in the morning, she was shown the coffee pot and led to an empty office. The desk obviously not been cleaned well, as evidenced by the personal notes, candies and other items left by the previous occupant of what was now her chair. The person apparently had a thing for peppermints and not much use for pennies. Happy to have the change but afraid to touch the candy, she spent time cleaning. During the next few hours several people stopped by to introduce themselves. These encounters were somewhat random, and clearly there wasn’t much of a plan for dealing with new hires. When 12:30 p.m rolled around and nobody said anything about lunch, she finally took herself out for her first day on the job. The afternoon played out much like the morning. Jacqueline read and tried to figure out what she was supposed to be doing, and a few more people walked by her door. Some stopped. Some didn’t. She began to wonder what she had gotten herself into.
34 / SPRINGS / Winter 2016
Eventually 5 p.m. arrived, and her new boss asked how the first day had gone. “Okay I guess,” was the best she could come up with. How else did he think it had gone? Reflecting upon it now, Jacqueline stands by that answer. Granted it was a small office with no formal orientation, but really? The message was loud and clear. They were less than excited to have her there! That first day still stands out as a lonely eight hours. Were they bad people? No. Were they unprofessional? Surprisingly not. Did they position themselves to get the most out of her? Not so much. Could they have easily done better? You bet. Sadly, Jacqueline’s story isn’t unique or unusual. In fact, similar situations are unfolding right this very moment to dozens or even hundreds of people starting new jobs today. And how do they feel about the organizations with whom they’ve just signed on? Probably not too great. Statistics and practical experience show it costs time and money to replace an employee, so does it not make sense to get new hires off to a good start? For very little money and a modicum of effort, you can set the stage for a new hire’s success.
12 1.
Ways to Welcome a New Employee:
Send new employees a note (handwritten if possible) before they start work. These aren’t messages about policies or parking passes. Rather, you are writing to say “We are glad you are going to be working with us.”
2.
Tell new people exactly what to do when they arrive on their first day. Do they park in visitor parking? Should they report to human resources first? Eliminating uncertainty will show that you’ve got your act together.
3.
Make sure the space a new hire is going to occupy is clean and free of the last person’s personal effects and well stocked with supplies. Nothing says “We don’t care” like dirt and clutter do.
4.
Does the new person get a computer, phone, or other electronics? If so, be sure to have those items in place as soon as possible. Without the proper tools, it’s hard to hit the ground running.
5.
If your organization has coffee mugs, shirts, or other promotional items emblazoned with the company name, gather these together, and present them to the new hire. Most people like a present, and this small gesture is another signal that you are welcoming and excited to have a new team member.
6.
Avoid doubt and confusion by providing the new person with a written schedule for the first day. The schedule should include lunch with their immediate supervisor, new colleagues, or other people who will contribute to making the new hire’s first days a success. And while you’re at it, provide the firm’s emergency telephone number.
7.
Along those same lines, establish expectations early. Meet with the new person and review what you expect in terms of quantity and quality of work, appearance, hours and so forth. Much of this could also have been covered by human resources or outlined in an employee manual provided by your organization. However, if something is important to you, highlight it verbally. New people have a lot of information to digest, and extra emphasis can’t hurt.
8.
During a new hire’s first few weeks, set up 20-minute informational meetings with key employees throughout your company. This should go without saying, but be sure to choose people who believe in your organization, set a good example, and can provide insight about the business.
9.
A little background information can help new employees avoid potential landmines. While gossip is obviously not a good idea, insight on the idiosyncrasies of the workplace should be shared if knowing about them will help the new person without hurting anyone else.
attention to distribution lists. New people won’t 10. Pay necessarily see the emails or memos they should if someone isn’t looking out for them.
the employee is new to your industry, share trade 11. Ifmagazines, websites, and other resources that might be useful.
check in throughout the week, but don’t 12. Finally, be a pest. None of these suggestions is difficult to implement, but they all take planning. The good news is, it’s usually worth it. The faster you can get new employees up to speed, the sooner they will produce the work you hired them to do! n Kate Zabriskie is the president of Business Training Works, Inc., a Marylandbased talent development firm. She and her team help businesses establish customer service strategies and train their people to live up to what’s promised. For more information, visit www.businesstrainingworks.com.
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Taking a Conscious Approach to Your Hiring Practices By Magi Graziano
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©iStockphoto.com/photocanal25
any companies—from multinational mega-corporations to neighborhood markets—are still using outdated hiring techniques. Clinging to the ways of the past when constructing a workforce leads to high turnover, stagnant engagement from staff and quarterly reports in the red. In some cases, it is as if they are staffed by a host of HR drones. These businesses are going about the practice of hiring in a completely automatic, unconscious manner. Solving the hiring problems of the 21st century requires a spirited, connected system that makes selecting the right candidates for the job easy. It requires a conscious hiring process. The premise is that conscious hiring is the lynchpin to workforce optimization and engagement and employee retention, as well as an overall boost to your customer service efforts. Hiring consciously means awareness around the role, the purpose and outcomes required to successfully validate the roles existence and cost in the organization, as well as mindfulness about who the right type of person is for the role. With a conscious hiring mindset, all of these parameters are defined at the beginning of the search. It means making keen hiring decisions that are geared toward the organizations’ strategic needs over and above the keywords listed on the resume and the frenzy to fill the job fast. When people are hired and onboarded into an organization that they are philosophically aligned with and they are hired into roles that are a natural selfexpression of their strengths and talents, simply said, they perform—and they perform well. When you open your hiring minds and take a conscious approach in your “people onboarding” methods, you ultimately streamline your operation: you optimize your workforce, maximize
SPRINGS / Winter 2016 / 37
employee retention and engagement and begin to provide stout customer service.
Workforce Optimization When you look at hiring like you look at improving your running, tennis or golf game, it only makes sense to hire people who raise the bar and make everyone better in the process. High performers focus on doing the right things to achieve outcomes. Depending on their role and interests, they focus on making improvements to products and the business. An optimized workforce means that the right people are focused on the right things. The right things might look like increased sales, operational efficiency, innovation, customer experience and sustainability, as these are the pillars of any long-term successful organization. Employee Engagement There is tremendous chatter in the media about the lack of employee engagement in the workplace and a large emphasis in leadership circles on raising workforce productivity—both of which can be solved through a conscious hiring mindset. When the majority of people on a project team are high quality engaged workers, it raises
Ready, to Roll, Reel Time. 38 / SPRINGS / Winter 2016
the energy and output of the group, and when the opposite occurs, it lowers the energy and output of the work. Most people are like sponges and those around them affect their work attitudes. Positivity breeds positivity, and so forth. Work production improves under the guidance of engaged, inspired and competent people. When as opposed to when you unknowingly hire someone who is not competent, not engaged and their attention is bifurcated, you get a subpar work product. It’s the law of physics. Hiring is a tricky game. Most people know they must put their best foot forward in an interview; however, they don’t know the impact they cause by being ill-equipped for actually doing the work. It is the business manager’s job to know and be aware of the impact and to head off these problems before they arise.
Employee Retention A conscious hiring program helps business owners streamline their hiring efforts and maximize hiring effectiveness because it begins with the end in mind. Before any advertising is done or any recruitment begins, the role is assessed and analyzed for a solid understanding of purpose and linkage to strategic outcomes. Often, too much time is spent with candidates who have spot-on
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A conscious hiring program helps business owners streamline their hiring efforts and maximize hiring effectiveness because it begins with the end in mind. Before any advertising is done or any recruitment begins, the role is assessed and analyzed for a solid understanding of purpose and linkage to strategic outcomes. Often, too much time is spent with candidates who have spot-on resumes yet lack the fundamental traits to effectively execute the role and in the end, neither the person nor the role delivers.
resumes yet lack the fundamental traits to effectively execute the role and in the end, neither the person nor the role delivers. Organizations want to keep the right people—those people who contribute and move the business forward. When management focuses on developing their best people, evoking the best in them and shepherding them to the next level, they improve the retention of their high-potentials. Likewise, when management focuses on fixing and preventing errors, they create a culture of risk adversity and stagnation. Consciously hiring affords managers the time to focus on elevating the work challenges and opportunities for the right people, which leads to stronger employee retention.
Customer Service The customer experience improves when the person in the customer-facing role authentically cares about service delivery, is a proactive problem solver and has a natural talent at follow up and detail orientation. The experience one has when they walk into an establishment and the staff are standing around talking, while customers stand and wait, is the same experience your customers have to endure when they call and don’t feel served. In sharp contrast, the organizations that match their hiring brand with their customer brand attract and onboard the type of people who deliver results for the customers that are consistent with what was promised when they signed
up. When you match your company’s values to the values you look for in your service people, they naturally deliver in a manner that honors those values and your message, and in turn your service brand is strengthened. When your company breaks free from the fetters of archaic hiring methods, turns on its brainpower and begins to recruit and hire in a conscious manner, it has an organization-wide benefit. Turnover drops, employee engagement improves, workforce productivity increases, and your customers and clients are more apt to return and increase their business. n Magi Graziano, as seen on NBC, is the CEO of Conscious Hiring® and Development, a speaker, employee recruitment and engagement expert and author of “The Wealth of Talent.” Through her expansive knowledge and captivating presentations, Graziano provides her customers with actionable, practical ideas to maximize their effectiveness and ability to create high-performing teams. With more than 20 years’ experience as a top producer in the recruitment and search industry, she empowers and enables leaders to bring transformational thinking to the day-to-day operation. For more information on Graziano visit www.KeenAlignment.com.
SPRINGS / Winter 2016 / 39
SMI Holds Inaugural Metal Engineering eXpo by Gary McCoy
Anticipation was in the air as trade show committee members gathered around an oversized pair of scissors to cut the ribbon to open the inaugural SMI Metal Engineering eXpo on Tuesday, Oct. 20 at the Charlotte Convention Center. Much of the same group met at the conclusion of the three-day event on Thursday, Oct. 22 to toast and celebrate the success of the first-ever educational/technical symposium and general trade show for the spring and metal forming industry. 40 / SPRINGS / Winter 2016
“The quality of attendees and exhibitors was off the charts,” said SMI president Hap Porter. “The highlight for many were the classroom hours spent at the technical symposia on the mornings of Oct. 21 and 22. Overall, the show wrapped up after a lot of hard work on the part of SMI staff, volunteers and our trade show management company, Tradeshow Logic.” The eXpo had 77 exhibiting companies and 900 attendees. “We listened to the industry and worked closely with our exhibitor partners to create a brand new event exclusively for the spring and metal forming industry,” said Dan Sceli, chairman of the trade show committee and president/ CEO of Peterson Spring. “The show accomplished its goal of gathering like-minded professionals to learn about the latest solutions to help springmakers do their job better, along with many hours of classroom training during the technical symposia. We thank our exhibitors, many of whom also
served as sponsors, and attendees for supporting SMI in this new event, and we look forward to an even more successful event in two years.”
Attendees Speak Here’s what some of the attendees to the SMI Metal Engineering eXpo had to say:
“The training and informational symposia were fantastic,” said Keith Porter, Jr., general manager, Newcomb Spring of Carolina. “Between the 15 Newcomb attendees, we were able to attend all of the technical symposia and cross train each another. It’s always great to see and network with everyone
Opening Night Winner The first day of the SMI Metal Engineering eXpo, Tuesday, Oct. 20, concluded with a cocktail reception on the show floor of the Charlotte Convention Center. Attendees had the chance to enjoy time catching up with colleagues, while interacting with exhibitors. In a random drawing among spring maker attendees, Jason Schreur, coiling department manager at Spring Dynamics, Inc. in Almont, Michigan was awarded a NASCAR VIP Experience with the Michael Waltrip Racing Team at the NASCAR race of his choice during the 2016 NASCAR season.
Scheur (right) is pictured receiving the award from SMI trade show committee chairman Dan Sceli.
SPRINGS / Winter 2016 / 41
NASCAR Hall of Fame Welcomes SMI
L
ocated in Uptown Charlotte, the 150,000-square-foot NASCAR Hall of Fame served as the backdrop for a gala reception sponsored by Industrial Steel & Wire Wednesday, Oct. 21. The three hour event took place at the conclusion of Day Two of the SMI Metal Engineering eXpo, and provided a relaxing atmosphere for show attendees to enjoy food, fun and fellowship. The highlight of the event was an appearance and speech by NASCAR legend Dale Jarrett. Jarrett is a former NASCAR driver and current sports commentator on NBC who is known for winning the Daytona 500 three times (in 1993, 1996, and 2000) and winning the NASCAR Winston Cup Series championship in 1999. He is the son of two-time Grand National Champion Ned Jarrett, younger brother of Glenn Jarrett, father of former driver Jason Jarrett, and cousin of Todd Jarrett. He was inducted in the 2014 class of the NASCAR Hall of Fame. Jarrett also posed for photos with attendees. Photos were printed during the event and presented to attendees as they exited the NASCAR Hall of Fame, along with a gift bag from Industrial Steel & Wire. A special presentation was made by eXpo committee chairman Dan Sceli, president and CEO of Peterson Spring. Sceli gave SMI president Hap Porter a one-of-a-kind racing suit that was adorned with the SMI and eXpo logos, along with all the inaugural sponsors of the event. The back of the suit 42 / SPRINGS / Winter 2016
included the logo for the Harvard Rowing Crew, the team for which Porter had competed as a student at Harvard. “What a special treat to receive this gift from Dan on behalf of the trade show committee and SMI,” said Porter. “I was touched by this thoughtful and memorable gift.” After the presentation, Porter donned the suit and proudly wore it until the conclusion of the reception. During their time at the Hall of Fame, reception attendees had the chance to compete against fellow attendees in simulator races and a pit crew challenge. “We are grateful to have been the Visionary sponsor for the first ever Metal Engineering eXpo,” said Dan Foster, vice president of sales and marketing for Industrial Steel & Wire. “The eXpo and the NASCAR Hall of Fame event with Dale Jarrett were off the chart.”
Foster concluded by saying, “It was fun re-connecting with old friends and making new ones, all while learning more about our industry.” The NASCAR Hall of Fame is an interactive, entertainment attraction honoring the history and heritage of NASCAR. The high-tech venue, designed to educate and entertain race fans and non-fans alike, opened May 11, 2010, and includes artifacts, interactive exhibits and a 278person state-of-the-art theater.
“It’s always great to see and network with everyone in our industry, but we really were impressed with the technical symposia. Another job well done by the leadership and staff of SMI.”
in our industry, but we really were impressed with the technical symposia. Another job well done by the leadership and staff of SMI.” “The technical symposium sessions were excellent,” explained Joe Devany, director of operations, Betts Spring Manufacturing. “I wish I could have had all of our engineers
SMI Salutes its Sponsors The SMI Metal Engineering eXpo was made possible by the generous support of its sponsors. Industrial Steel & Wire Visionary Sponsor American Spring Wire Gibbs Wire InterWire Products Suzuki Garphyttan Platinum Sponsors WAFIOS Machinery Corp. Gold Sponsor Central Wire RK Trading Bronze Sponsors Kiswire Miscellaneous
“The technical symposium sessions were excellent. I wish I could have had all of our engineers in attendance and that I could have attended them all. Each session seemed to cover very relevant issues all springmakers face. I found them very valuable and interesting." in attendance and that I could have attended them all. Each session seemed to cover very relevant issues all springmakers face. I found them very valuable and interesting. I also enjoyed being able to network with all of the key people among material and equipment suppliers.” Phil Jones, president of Industrial Spring Corporation of Kansas City, said the most valuable thing he gained from the eXpo was the training offered through the technical symposia. “There is really no other offering that I am aware of, that is targeted, industry-specific for the spring industry. Because of this we gained great, usable information for use in the plant by attending the sessions geared toward manufacturing, technology, material and testing,” Jones elaborated.
“For me personally, I gained a lot of useful information from the tracks related to business practices and culture, leadership and motivation. Finding and hiring the manufacturing leaders of tomorrow was definitely a theme in most of these sessions. It was good to discuss these issues with others in our industry and to hear what is working for other companies, especially in the area of utilizing local Career Technical Education options. I actually wish I could have attended each session that was being offered.” Chris M. Fazio, general manager, Diamond Wire Spring Company, said, “Of course there were many valuable things we enjoyed about the show but if we had to choose one aspect it was the educational symposiums.”
SPRINGS / Winter 2016 / 43
“Of course there were many valuable things we enjoyed about the show but if we had to choose one aspect it was the educational symposiums.”
“Finding and hiring the manufacturing leaders of tomorrow was definitely a theme in most these sessions. It was good to discuss these issues with others in our industry and to hear what is working for other companies, especially in the area of utilizing local Career Technical Education options. I actually wish I could have attended each session that was being offered.” 44 / SPRINGS / Winter 2016
Exhibitors Chime In A trade show cannot be successful unless exhibitors come out to support it. “Toyo Seiko North America, and I personally, felt it was a very good show,” said Larry A. Catanzarite, corporate secretary / general manager, Toyo Seiko North America Inc. “What impressed me the most was not the quantity of attendees, but the quality. We have garnered at least 12 to 14 significant leads. The people that visited our booth were the actual decision makers for their companies. I will take quality over quantity every time. I am also aware that this was the first attempt at establishing this show and that is always difficult. Rest assured that we will definitely be in attendance at the next SMI meeting.” The show location benefitted several exhibitors, including JN Machinery. “JN has several customers in the southeast U.S., but usually
“What impressed me the most was not the quantity of attendees, but the quality. We have garnered at least 12 to 14 significant leads. The people that visited our booth were the actual decision makers for their companies. I will take quality over quantity every time. I am also aware that this was the first attempt at establishing this show and that is always difficult. Rest assured that we will definitely be in attendance at the next SMI meeting.” only the top management have ever visited these kinds of trade shows,” explained Daniel Pierre III, president, JN Machinery Corp. “Since our location in Charlotte was convenient for many of them, they brought a lot of operators to the show. JN was able to show them our entire range of products and many of these operators had no idea of the sizes of ovens available to them. JN
really enjoyed good exposure to a new area of the market.” Other companies took the opportunity to unveil new products at the eXpo. “The eXpo was great opportunity to gain visibility for our new generation Torin spring coiler. We knew the industry-focused show, paired with educational seminars, would draw the type
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“The training and informational symposia were fantastic.”
“The combination of the wellorchestrated technical symposia and hands-on machine demonstrations was most valuable for us.” 46 / SPRINGS / Winter 2016
of visitors we needed to reach,” said Jacquelyn Zenhye, director of marketing and product innovation, Fenn LLC. “We felt the eXpo would be the perfect forum to launch our new machine. We were very pleased with the consistent, high level of booth traffic at the eXpo, enabling us to be in front of the customers our spring coilers were designed to serve in a cost effective way. We at Fenn are excited about planning for the next eXpo, to build on the momentum we gained at the 2015 show!” Danny Bozart, vice president, distribution sales, Central Wire Industries, said the show helped the
We were very pleased with the consistent, high level of booth traffic at the eXpo, enabling us to be in front of the customers our spring coilers were designed to serve in a cost effective way. We at Fenn are excited about planning for the next eXpo, to build on the momentum we gained at the 2015 show!” company gain increased exposure to spring manufacturers and to educate them on the many different products and services that it offers. “We felt that being a Bronze sponsor was well worth the cost,” said Bozart. “We were able to sign
Technical Symposia is a Big Hit One of the unique features of the SMI Metal Engineering eXpo was the technical symposia, held Wednesday, Oct. 21 and Thursday, Oct. 22. The symposia featured two days of technical education sessions with an impressive list of more than 20 presenters. Attendees could choose among six tracks that included: business environment; business practices; culture, leadership and motivation; manufacturing; materials and testing; and technology.
Each day started with a session from 8 a.m. to 8:50 a.m. After a short coffee break, a second session was held from 9 a.m. to 9:50 a.m. “Attendees to the technical symposia told me numerous times how they wished they could have attended all the sessions that were offered due to the strong content that was offered,” said SMI president Hap Porter. “This anecdotal evidence confirmed the work of our strategic plan, where SMI members told us they wanted the Institute to offer more technical training.”
Available for Download Slides from the following presentations are available for download at the official eXpo website at www.metalengineeringexpo.org/2015-presentations. • • • • • •
Become a Better Leader – David Wheatley, President, Humanergy How to Have It All: Quality, Cost, and Performance – Paul Menig, CEO, Tech I-M How to Hire the Best – Mark Lee, Owner, Management Solutions, LLC Improve Employee Wellness – Sarah Szul, Wellness Consultant, Kapnick Insurance Group Steel: Chaos in the Industry – John Anton, Director, Steel Service, IHS The State of Health, Safety and Environment – Dr. Laura Helmrich-Rhodes, Independent Regulations Compliance Consultant, SMI • Update: Coating – Gary Orosz, Applications Process Manager, PPG Industries, Inc. and Dr. Anthony Chasser, Senior Research Scientist, PPG Industries, Inc. • Update: Stainless Steel - Shawn Chaney, Product Manager, Fort Wayne Metals
up many new accounts as well as book orders. While attendance seemed less than expected, there were a lot of decision makers walking the show.” “WAFIOS was honored and proud to participate as an exhibitor in support of SMI’s inaugural Metal Engineering eXpo,” said David Purcell, president and CEO, WAFIOS Machinery Corp. “The quality of attendees was very good, resulting in many serious discussions.” Purcell went on to say, “Considering WAFIOS continuously develops innovative manufacturing techniques for the springmaking and wire forming industries, the most valuable aspect of the SMI event was having the opportunity to present very relevant productivityenhancing information to the attendees during the technical symposia. Then, we were able to demonstrate the functionality and benefits on the machines in our booth. The combination of the wellorchestrated technical symposia and hands-on machine demonstrations was most valuable for us.” Joe Burchill, marketing coordinator for Link Engineering Company, summed up the feeling of many when he said, “The most valuable thing we gained at the SMI eXpo was the quality of the leads we received.” A location and dates for the 2017 SMI Metal Engineering eXpo will be announced at a later date. n
SPRINGS / Winter 2016 / 47
Manufacturing Day 2015 Has Strong Impact
Students who were part of Manufacturing Day tours at Betts Company in Fresno.
F
or Manufacturing Day 2015, a total of 2,620 events were held across North America, including all 50 states, Canada and Puerto Rico. Based on data collected from host company
evaluations, more than 225,000 students and 55,000 parents, teachers and other attendees participated in these live events. Twelve virtual events helped even more people participate, with the Discovery Education and Alcoa online program reporting the largest participation of any single event at more than 120,000 students. This brings the total number of participants in Manufacturing Day 2015 activities to more than 400,000.
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Manufacturing Day at a Glance Developing positive perception of manufacturing with students
81% 90%
84%
Activities and tours were interesting and engaging
More aware of manufacturing jobs in my community
More convinced manufacturing provides careers that are interesting and
62% More motivated to pursue a career in manufacturing
rewarding
Generating value for Manufacturing Day hosts
94%
95%
Value in participating in manufacturing day
Likely to host an event again in the future
Developing positive perception of manufacturing with education
91%
93%
88%
The activities/tours were interesting and engaging
More convinced it provides careers that are interesting and rewarding
More aware of manufacturing jobs in my community
71% Source:
of students are more likely to tell friends, family, parents or colleagues about manufacturing after attending an event
Teachers, students, parents/ influencers, and employers shared their perspective on Manufacturing Day using the new Deloitte perception survey developed in collaboration with The Manufacturing Institute. The survey was distributed to more than 2,500 manufacturing hosts across the United States to gather national data from teachers, students and parents on how Manufacturing Day events truly make a difference in local communities. The survey found after attending Manufacturing Day events, 81 percent of student respondents are more convinced manufacturing provides careers that are both interesting and rewarding, and 71 percent are more likely to tell friends, family, parents or colleagues about manufacturing. “The co-producers of Manufacturing Day could not be more pleased with the results of the 2015 celebration,” said Ed Youdell, president and CEO of the Fabricators & Manufacturers Association (FMA), one of the co-producing organizations. “Our goal, when we created Manufacturing Day just three years ago, was to bring manufacturing into the mainstream. We wanted to showcase this important sector of the American economy and introduce young people to the career options and exciting work environments manufacturing offers.” Educators’ responses to the survey also illustrated the positive impact Manufacturing Day has on public perception. Ninety percent indicated they are more likely to encourage students to pursue a career in manufacturing and 91 percent found the activities/tours to be interesting and engaging. “By capturing the impact of a national Manufacturing Day, we can see how it has made a difference in changing the image of the industry,” Institute executive director Jennifer McNelly said. “Every day we aspire to make this industry better than
SPRINGS / Winter 2016 / 49
Manufacturing Day addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t.
it was yesterday. The results of the Manufacturing Day survey illustrate how we are improving the image of the industry through Manufacturing Day, and positioning the industry as a rewarding career path for future generations.” “This survey further demonstrates the changing perception of manufacturing across the country, particularly among young people, and we have events like Manufacturing Day to thank in large part for this positive trend,” said National Association of Manufacturers president and CEO Jay Timmons. “We appreciate the continued efforts of thousands of manufacturers from across the country to educate students, parents and their communities about the many career opportunities through our industry.” Manufacturers responding to the survey also expressed positive
feedback regarding their participation in Manufacturing Day. Ninety four percent found there was value in participating in the event and 88 percent are more likely to continue engaging with high schools or colleges in their area. “It is powerful to see that our collective efforts are making a difference in educating the public about manufacturing and its rewarding careers and how we are helping manufacturers throughout the U.S. connect with the next generation workforce,” said Carroll Thomas, director of the Manufacturing Extension Partnership.
Spring Industry Participation Several SMI members were registered at the Manufacturing Day website to host events, including: Associated Spring, Barnes Group, Inc. (Syracuse, New York and Bristol,
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Connecticut); Betts Company (Fresno, California); Keats Manufacturing Co. (Wheeling, Illinois); Myers Spring Co., Inc. (Logansport, Indiana); Scandic (San Leandro, California); Spring Dynamics, Inc. (Almont, Michigan); and Wolverine Coil Spring (Grand Rapids, Michigan). Betts Company was part of Fresno’s first Manufacturing Day celebration on Thursday, Oct. 1, 2015. Institute of Technology served as the meeting spot for 80 Fresno County High School students and their teachers, after a morning of touring local manufacturing facilities. Students and teachers listened to presentations about careers in manufacturing from representatives of Cargill and Betts Company. The students also learned about Fresno State Lyles College of Engineering’s Valley Industry Partnership for Cooperative Education (VIP)
Program, which provides internship opportunities for qualified students. After lunch and presentations, students were able to visit employer booths to learn about career opportunities with local manufacturing companies. Representatives from Betts Company, Ruiz Foods, Cargill, Netafim, PPG Industries, and Foster Farms were available to provide information about their companies and answer questions. Students and teachers were also provided tours of the Institute of Technology Industrial Maintenance and Automated Technology labs and classrooms. A news release reported, “The Institute of Technology’s Manufacturing Day Open House was fun and informative. We are proud to be a part of Manufacturing Day and inspiring the next generation of manufacturing employees.”
Manufacturing Day addresses common misperceptions about manufacturing by giving manufacturers an opportunity to open their doors and show, in a coordinated effort, what manufacturing is — and what it isn’t. By working together during and after Manufacturing Day, manufacturers will begin to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry. For more information, visit www.mfgday.com. n
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Flashback:
Talent Shortage? How to Win with What You’ve Got By Vince Thompson ©iStockphoto.com/block37
(Editor’s note: This article originally appeared in the July 2007 issue of Springs.)
If you’re starting to feel the pinch of the so-called “talent shortage,” you’re not alone. Consider these facts: • Forty percent of employers worldwide are having difficulty filling positions due to the lack of suitable talent available in their markets. • According to the U.S. Bureau of Labor Statistics, the skilled workers shortage will exceed 10 million by 2010. • At any given time, 75 percent of American employees are looking for a new job, says the Society of Human Resource Management, and 45 percent of workers say they want to change jobs every three to five years.
In light of these facts, smart managers realize they need to retain people on staff in order to keep the company running. So, while under better circumstances they might move along those “less spectacular” performers, they know that in a tight talent market, the key is to effectively work with what you have. Fortunately, you can take steps to help the people on your team do better and perform to expectations. After all, hiring someone is costly (both in time and money), and any turnover has a potentially negative impact on the company. Following is a process that will help you work with your current staff and gain the competitive advantage in doing so.
Look at how you’re evaluating your team. Many managers who work under, or who have been influenced by, command-and-control hierarchies live with the belief that they should rank their employees and cut those at the bottom. Ranking may be valuable when people do identical jobs in an identical environment, such as in call centers or sales organizations with territories that have no uniqueness, but the fact is that such environments count for only a minority of the workplace population. Most people work in organizations where teams tackle diverse challenges with diverse solutions. Therefore, when managers rank people, their perception of each individual is often blurred by a lack of clear
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criteria or the potential to play favorites. Getting great performance from your team is about working with individuals. Therefore, you need to look at each individual on staff and ask yourself, “Is this person doing what I expect of him or her?,” then clarify your expectations. If that person isn’t meeting your expectations, how are you communicating those expectations? Often, managers communicate a lot with their best players, but when it comes to the marginal performers, they communicate less often and in a less meaningful way. It’s been said that we hire people for what they are and fire them for who they are. That is, we hire someone because he is a Harvard graduate who
©iStockphoto.com/marekuliasz
Step One: Take a Look at Yourself
Have I been communicating my expectations clearly?
worked at the top advertising agency in NYC, but we fire him because he was a dishonest jerk who didn’t respect people. Therefore, most of our dissatisfaction is not with what people are but with who they are. And when we deal with the “who” side of the equation, we often find that the dissatisfaction stems from a general lack of communication of expectations from the manager, not the employee. In other words, we’ve set the job specs but we’ve failed to talk about how we expect our people to treat each other and our customers.
Step Two: Take a Look at Your Staff Are the people on your team committed or compliant? Here’s the difference: You give person A and person B each a package to deliver to a key prospect. Person A takes the package to the prospect’s office, leaves it with the receptionist, and then heads back to work. Person B takes the package to the prospect’s office, waits in the lobby to meet the prospect personally, and spends time talking with the prospect to answer any additional questions. Person A is compliant; he did what he was told (delivered the package to the prospect’s office) and nothing more. Person B is committed; he did what he was told, and then went a step further to win big for the company. So again, are the people on your team committed or compliant? If someone on your team is committed and still not performing to your
expectations, then you need to talk with the person and learn where his or her commitment is. Is it to the team? To you? To the company? To personal success? Maybe he’s committed to the team but not to the company. If so, you need to show him how what he’s doing impacts the team. Understand what each employee is committed to, and communicate your expectations in relation to that individual commitment. If someone on your team is merely compliant, then you need to uncover why. Is the mindset temporary due to some challenges at home? Is it a lack of passion for the work? Are his or her motivations misaligned? If you can’t move someone toward commitment, then that’s the first person you have to consider firing. Realize, though, that firing can be mutually beneficial — and needs to be in a tight
Step Three: Develop a New Plan
Plan A Plan B Plan C
Finally, for each employee, you need to create a plan that will help that person move forward to the level of performance desired. Your plan needs to include the following: Communication. Communication is the pathway to trust. Therefore, you need to find ways to communicate more frequently so your team trusts you and wants to perform for you. To do so, hold regular mini-meetings that emphasize face-to-face interaction. So many workers don’t personally interact with their boss anymore. They communicate solely by email, even though the boss is just down the hall. Remember, as Zig Ziglar so profoundly said, “People don’t care how much you know until they know how much you care.” Communication equals caring. Expectations. What do you expect of your employees? Is it realistic? Does the team member have the time or skills to meet that expectation? What can you do to support the employee and prioritize the expectations? Motivations. What’s the reward to the employee for meeting the expectation? For some, the reward may be the satisfaction of a job well done, while for others the reward may be something tangible, such as a bonus or time off with pay. In order to motivate people, help them see value in their work by explaining how the project impacts the company or the industry. Assistance. How can you help your staff? Maybe it means being a mentor or taking a piece of the workload. Maybe it’s just guiding the group. If you have a low-performing employee, then you need to actively coach that person to become more successful.
Is my staff committed or compliant?
talent market. The fact is that it can take several months to find a replacement. Therefore, it’s better to tell that person, “You’re not enjoying your job, and it’s obvious this isn’t a good fit. So let’s agree that we’re on a path here for me to find someone to replace you and for you to find employment elsewhere. As long as you commit to doing your daily work during this time, I’m committed to figuring this out with you.” Managers who take this approach find that it works out well. The employee who isn’t a fit appreciates the honesty and the time to find new work. The company appreciates having the coverage it needs to meet deadlines and goals. The key is being honest, communicating openly and building trust to make it all work.
Maximize the Talent You Have Realize that this process isn’t a one-time quick fix. You’ll need to invest the time in these steps on a regular basis in order to see results. When you do, not only will you gain a much deeper understanding of your team, but you will also find some surprises. Some of your “lost causes” will take on new value, and for those who don’t, you’ll experience a lot less stress as you move them along, knowing that you gave it your all. In a market this tight, you can be assured your competitors are facing the same issues, so getting this right can give you a real competitive advantage. n
SPRINGS / Winter 2016 / 53
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Fenn Holds Open House
O
ver 100 customers, vendors, local government officials and industry friends gathered Sept. 17, 2015, to celebrate the 115-year history of Fenn, and its new location in East Berlin, Connecticut. The event started with a ribbon cutting ceremony in the morning led by David Somers, CEO of Quality Products, Inc. (the parent company of Fenn) to formally celebrate the opening of its new headquarters. Quality Products is an American company that supports American manufacturing, with five divisions over four states that employs nearly 200 people. In his remarks, Somers said the day “marks the beginning of a new chapter in Fenn’s long and illustrious history.” He later said, “Our machines have helped promote metallurgy research and education in labs and universities, helped support the American war efforts through the decades, including WWI, WWII and the recent wars in the Middle East. Fenn has built hundreds of specialty machines and parts over the years
— paper cup making machines, precision parts for helicopters and nuclear reactors, and now our coilers, swagers and other highly engineered metal forming products. “We were really excited to be involved with Fenn from the moment we first heard it was open to acquisition in 2014,” explained Somers. Dignitaries on hand for the ceremony included Bill Rasmussen, deputy mayor of Berlin; Brendan Luddy, Berlin Town Council member; Chris Edge, Berlin economic development director; Joe Aresimowicz, majority leader, Connecticut House of Representatives; and Selim G. Noujaim, state representative, Connecticut General Assembly. In the afternoon, Fenn hosted its guests with shop tours and educational sessions about each of its product lines, including wire flattening and shaping lines, rolling mills, spring coilers, swagers, drawbenches and turks heads. Each product line was represented
with an actual working machine for demonstration. The company also provided educational outlines about its spare parts, upgrade and remanufacture, and service and training capabilities. “We hosted catered hors d’oeuvres, an open bar and a beautiful dinner for all of our guests.” said Jacquelyn Zenhye, Fenn’s director of marketing and product innovation. “It was a successful event, and provided Fenn with the opportunity to show both its local and industry communities what our operation is all about. We are very proud that we have remained competitive in providing metal forming solutions for the last 115 years, and look forward to the next 115!” n
©iStockphoto.com/elly99
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Springmaker Spotlight
American Success Story with a Global Footprint: A Profile of Dudek & Bock at 70 By Gary McCoy, Managing Editor
T
he office of John Dudek, president of Dudek & Bock in Chicago, is filled with historical photos and artifacts dating back to the company’s start in 1946 by Dudek’s father, Joseph Dudek, a Polish immigrant and his partner, Stanley Bock. “There are a lot fun memories of Christmas parties and significant company milestones attached to the pictures on these walls,” explained Dudek. “My father and all the associates worked hard to build this business and we are excited to celebrate our 70th anniversary in 2016.” Dudek, the youngest of Joseph Dudek’s four children, has led the company to impressive growth by expanding the company’s product line and its global footprint. The company is thoroughly an American-made company, based on the west side of Chicago in a massive 225,000 square foot plant that the company boasts as “possibly the largest stand-alone facility in the U.S.” Approximately 200 employees work at its main headquarters. Recognizing the need to serve a worldwide customer base, the company opened a plant in Saltillo, Mexico in mid2000. That facility has gradually expanded from 30,000 to 60,000 square feet to its present size of 85,000 square feet and 200 employees.
SPRINGS / Winter 2016 / 57
Raquel Chole, director of global sales and marketing, says most of the parts made there are for the Mexico market, with a small number being shipped to the U.S. Chole says parts are typically made in Mexico for global customers. “If we are already shipping parts to their Mexico facilities, then they might say, ‘We need that part to ship up to our U.S. facilities as well, and vice versa.’” The company’s latest facility opened in Shanghai in 2012. The operation in China is a joint venture with China Spring, the seventh largest spring company in the world. “They had a gap that we had the knowledge to fill,” explained Chole. “The gap was they didn’t make counterbalance springs, and they didn’t make wire forms. So we went there to fill that gap as a joint venture partnership.” Aware of the sensitivity of work being done in China, Chole points out that the plant is dedicated to making parts for the China market. “We don’t make parts to import back to America,” she said.
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“Our Chinese team makes parts for the Chinese automotive market for Chinese cars for Chinese people. That’s basically how the joint venture operates. It complements what we do in the U.S. and Mexico, but does not take any business away from those operations.” The plant in China employs 40 people.
Tapping its Strengths The company’s global footprint is one of its strengths, says Chole. “It allows a company to look at us as having the potential for serving each of their markets within their markets. So we have potential to be a local supplier on a global basis,” she explained. “So we can serve the U.S. market, the Mexican market and the Chinese market,” Chole said, “and we’re the local vendor in each place. I think that’s an asset.”
“Our team pretty much makes things that make your life more comfortable, more sanitary and safer,” Chole said with pride. “So we’re in your home, your car and your appliances. We really touch almost every part of your life through our metal forms and springs.”
Another strength for Dudek & Bock is in project management, particularly working with its customers from the very early stages of a product’s development. “When a customer launches a new car or a new appliance, they want to know that there aren’t any glitches, because most money is lost on a project during the launch phase,” Chole said. The whole Dudek & Bock team works closely with customers on the design elements to eliminate the last-minute problems. Dudek & Bock primarily serves the automotive, appliance, and building and construction markets. Chole is quick to point out the common item s whe r e c on s u me r s enc ou nte r products made by the company. “We make the clips that go into drywall, or wire forms for bricks. We make the black plate that your toilet mounts to,” she said. “Our team pretty much makes things that make your life more comfortable, more sanitary and safer,” Chole said with pride. “So we’re in your home, your car and your appliances. We really touch almost every part of your life through our metal forms and springs.”
Dudek & Bock specializes in custom springs, wire forms, light metal stampings, welded assemblies and welded rings. The company has grown through expansion into international markets, but also through acquisition. In 2006, Dudek & Bock acquired the assets of HS Springs in Ohio to expand their capabilities into counterbalance springs. Ultimately, they brought the operations in-house to their headquarters in Illinois. In 2011 they acquired the assets of Wire Craft, allowing the company to expand its welding capabilities. “We set up a welding bay here and we now weld for the food service and automotive industries,” said Chole. The company has also added robotic and laser etching.
Fourslide Heritage Dudek & Bock started out as a fourslide company and continues to have a large fourslide department. “Joseph Dudek was a genius in fourslide machines,” Chole explained. “He not only could fix them, tool them and run them, he also mended them and created multislides out of fourslides. He developed special tools that would form spring materials and accommodate spring back. He became a master of wire forming and flat stock forming.” One of Dudek’s original fourslide machines is on display in the company’s lobby. In addition to fourslides, the company has a multitude of mechanical machines, CNC machines and punch presses. All tooling, maintenance and secondary operations like grinding, paint for ID and swedging are done in-house.
SPRINGS / Winter 2016 / 59
“Joseph Dudek was a genius in fourslide machines,” Chole explained. “He not only could fix them, tool them and run them, he also mended them and created multislides out of fourslides. He developed special tools that would form spring materials and accommodate spring back. He became a master of wire forming and flat stock forming.”
One of the things they make for the food service industry are the wire racks that revolve inside a pizza holder commonly seen at movie theaters and convenience stores.
At its Roots Joseph Dudek and Stanley Bock started the company 70 years ago at a small storefront on Damen Avenue in Chicago with $5,000 and two fourslide machines. Early customers included Dormeyer, VM Corporation, Whirlpool Corporation (formerly the 1900 Corp.) and Bendix. Much of the company’s early growth was due to Joseph Dudek’s manufacturing talent. According to John Dudek, “His machines produced problem-solving wire forms such that one wire component was often able to replace and
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outperform many conventional parts. This also reduced the cost of assembly.” The company moved and expanded two more times at locations in Chicago before permanently moving to its present site, on Roosevelt Road in Chicago, in 1970. Along the way, the company acquired Advanced Corporation (one of Chicago’s oldest spring companies) in 1954. The 1960s saw Stanley Bock retire and sell his interest in the business, making Joseph Dudek the sole owner of the business. Dudek & Bock is still a family-owned company with many family members composing its board of directors. The company also has some outside directors on its board. There continues to be many Dudek family members working at the company. John Dudek’s wife, Kathleen, works in the sales and marketing department. Several grandchildren are part of the team, including Michael Dudek, vice president, Mary Onesto, estimating department, Onesto’s husband, Chris, purchasing department, and Tim Dudek, information technology department.
A Good Place to Work In addition to direct descendants of Joseph Dudek, several generations of families have worked at Dudek & Bock. “This is a good place to work,” said Chole, “because of the Dudek family’s loyalty to its employees. Our employees stay here a long time because the Dudek family is very fair and dedicated to the well-being of its employees. It’s a high priority.” In Chole’s case, she came to work at Dudek & Bock 20 years ago, with the idea that she would stay for five. “I love it.” Chole recalls when she walked in the door for her interview. “I thought, ‘This is a place I could work,’” she recalled. “It’s been a great ride. We’ve opened a plant in Mexico, we’ve opened a plant in China, and we’ve grown our product line. Certainly, I’ve moved up in the company, and that’s been very exciting,” Chole said. “It’s been a wild ride in that there have been so many opportunities in growth and experiences for all of us here.” Longevity is a hallmark of Dudek & Bock employees. “I’m still the new girl at 20 years now,” said Chole with a laugh. “It is a good place. I’ve brought people on myself to work here. We have recently recruited some employees
One of the photos that adorns the walls of John Dudek's office pictures an employee gathering from the early days of the company.
who are new to the industry; they are young, dynamic, on the ball and ready to go. They are personally motivated and hardworking people.” Chole has been involved in SMI by writing articles for Springs and as a member of the magazine committee. During her time in the industry, Chole has noted many developments, including the increased complexity of parts. “As springmakers, we really have to keep up with that knowledge. What happened before was you would take six wire forms and put them in an automotive seat, and then you would weld them together, and that would be seat structure. But now a lot of times customers want to take eight wire forms, they want to reduce the number of welds, they want to reduce the amount of wire, they want to reduce the weight of the wire,” she explained. In the automotive industry, Chole said the goal is to combine efforts to reduce the number of grams in a car, or to make one part multifunctional. “We h ad one cou nterba la nce spr i ng t h at we were making for a car seat for an original equipment manufacturer customer. When you released the lever, it was supposed to do practically a triple flip to come down
and it was supposed to be so easy to use that a child could use one finger to activate it.” Chole said though it was a real challenge, Dudek & Bock made it work. Even with the increased complexity of parts, she believes there’s still room for companies who make low tolerance parts, and for companies like Dudek & Bock who have “highly developed machinery and skills that can develop more complex parts.”
Gadget Girls Camp Like every company in the spring industry, Dudek & Bock recognizes the challenge of finding next generation workers to take the place of aging Baby Boomers. “One of our real drives as a company is to get young people interested in manufacturing, not just hand someone a check for supporting a program,” explained Chole. Kathleen Dudek, special projects coordinator, has been the key force behind these efforts moving forward through school-based projects, company-based internships and more. This past summer Dudek & Bock had the opportunity to host a group of girls, aged nine to 18, who were taking
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part in a program sponsored by a local community college called Camp GADgET (Girls Adventuring in Design, Engineering, and Technology). The program allows girls to visit different manufacturing locations in the Chicago area to learn about manufacturing. “We took them on a tour of our shop floor and they were fascinated,” explained Kathleen Dudek. The shop tour was supposed to last 45 minutes, but Dudek said they couldn’t get them off the shop floor because they had so many questions and were so interested in what the company makes. Girls who participated in the program at Dudek & Bock had the opportunity to manufacture earrings for themselves and to apply for internships once they turn 17. “We got little earring bases and the girls used spring wire forms and beads to create some jewelry,” said Kathleen Dudek of the project. “It came out adorable. They were all thrilled with it. They all went home with jewelry that was spring-like and that they personally manufactured.” Kathleen Dudek said the girls who came to Dudek & Bock that afternoon were actually happier than they were in the morning. “And they were pretty happy when they came to us because they had just toured M&M Mars and got samples! Our own team was motivated, as well, from the hosting experience. We had an all-star team of women from different departments tell stories about their success in manufacturing.”
Beating the Challenge In addition to the gadget camp, Dudek & Bock has a mentoring program with a local high school that’s focused on technology. “We work closely with them and offer quite a few internships.” Kathleen Dudek says Dudek & Bock is “beating the challenge” of finding new employees and making it a place where young people want to work. “There are a lot of disadvantaged youth in this area. We can give them something that would be absolutely
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©iStockphoto.com/kertlis
“We took [the girls] on a tour of our shop floor and they were fascinated,” explained Kathleen Dudek. The shop tour was supposed to last 45 minutes, but Dudek said they couldn’t get them off the shop floor because they had so many questions and were so interested in what the company makes.
Girls who visited Dudek & Bock last summer made jewelry as part of Camp GADgET.
the highest value to them. We can give them a career,” Kathleen Dudek explained. “They’re not just working a job. “Everyone here is committed to help youth have careers in manufacturing from our president to the shop floor,” said Kathleen Dudek. “Everyone is eager to have their turn to train and mentor these young people.”
70 Years and Still Growing Though Dudek & Bock is still working on a formal plan to celebrate its 70th anniversary this year, Chole said “we do celebrate our milestones very well here.” When asked about the company’s outlook on the future, Chole was quick to say, “I think you know that a company has a positive outlook on the future when you open a new plant,” referencing the company’s new plant in China. She said the management team and employees at Dudek & Bock views itself as “one team, three countries.” Chole explained, “We, the staff here, live in Chicago, Cicero, Burr Ridge, Riverside, and other Chicago suburbs. We’re going to be here and we’re going to make this work here. The staff in Saltillo, live in Saltillo,” she said. “We have great motivation to make all three locations work, and the leadership in the executive management team have the responsibility to tie it all together.” Maybe in another 70 years, Dudek & Bock will find itself in more countries around the world. Happy anniversary! n
Book Corner ©iStockphoto.com/kertlis
Facilitating Effective Change: Helping the Leader Lead the Way
W
hat role can a facilitator play to help an organization make changes? In the case of SMI, a strategic planning process was carried out through the work of an outside facilitator. One of the outcomes of the process was the successful development and execution of the SMI Metal Engineering eXpo this past October in Charlotte. “Facilitating Effective Change: Helping the Leader Lead the Way,” is a new book from authors Dr. Patrick Love and Patrick Putorti. The authors make the argument that in today’s fast-paced, globalized world, organizations need to embrace change in order to thrive. Organizational leaders have responsibility for the enterprise’s success as well as choosing and implementing needed changes. It is unrealistic to ask those leaders to have the process knowledge, required time, or practiced skills required to navigate the complexities of the change process by themselves. “Facilitating Effective Change” makes the case that meeting these challenges requires having a change facilitator within your organization. Through influential leadership and a solid understanding of change management, a facilitator can ensure that the path for change is clear, well communicated, and sustained. Uniquely positioned to reflect and observe, a facilitator advises leaders on strategy and analyzes progress. The book’s purpose is to aid manufacturing leaders in creating sustainable effective change. There are lots of good examples sprinkled throughout the book, many that with which manufacturers will readily identify. A good example is found on page 12 titled “Working with Operator Jacob.” The story illustrates how “Operator Jacob” was introduced to a change agent to help improve the time specified to make a unit from Jacob’s unaccept-
able 15 minutes to the accepted nine minutes. The change agent helped identify the main issues with Jacob which were the way the workstation was configured and the tooling needed to fit the part. The five takeaways listed on page 13 are instructive on how a change agent can attack these challenges the right way. “Once a business moves from small to midsize or large, progress will begin to move backward if it has not identified a specific individual on the team dedicated to facilitate improvement,” said Putorti. “This book was written for those professionals and aims to help them better advise leaders on strategy, and assist them in developing effective skills to analyze overall progress and accelerate success.” The idea for “Facilitating Effective Change: Helping the Leader Lead the Way” evolved when Putorti and Love worked together at the Alcoa Operations Management Group. When Love, a Ph.D. in astrophysics, gave his retirement lecture to the group, his discussion regarding overcoming barriers to busi-
ness improvement and operational excellence touched a chord with Putorti, who approached Love with an idea for a collaborative project. As a senior business consultant instrumental in implementing the Alcoa Business Operating System within its plants and business units, Putorti set out to combine his experience in business facilitation and Love’s knowledge of structure and business-wide change implementation to create a guide designed for the sometimes overlooked professional facilitator. Unlike other instructional business manuals, this publication is written for the men and women who are responsible for leading teams and businesses to never-beforeseen levels of success. “There are very few companies anymore that do not have these types of individuals on staff, or as third-party consultants, and a lot of responsibility is placed on the shoulders of these facilitators,” said Putorti. “Sometimes called continuous improvement directors, managers or consultants, these individuals will never be able to influence their managers without guidance themselves, and that’s what this book delivers.” This is a relatively short book at 124 pages, but packed with a lot of good information and one that should stimulate thinking on how to drive change in your organization and ultimately sustain it. n Review by Gary McCoy, managing editor.
Have a favorite business book you would like to tell us about? Send your suggestions to Springs managing editor Gary McCoy at gmccoy@ fairwaycommunications.com.
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wongwean/Shutterstock.com
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wongwean/Shutterstock.com
Global CTE News Highlights Wolverine Coil Spring President Presents to CTE Students with Gov. Rick Snyder
J
ay Dunwell, president of Wolverine Coil Spring (WCS) in Grand Rapids, had the unique opportunity in November to promote manufacturing careers with Michigan Governor Rick Snyder. Dunwell, Snyder and Stephanie Comai, director of the Michigan Talent Investment Agency, toured the multiple labs at the Kent Career Technical Center in Grand Rapids and met with numerous career technical education (CTE) students before the three made presentations.
“My message, from the employers’ perspective, emphasized the great career opportunities, not just jobs, but careers in the skilled trades,” explained Dunwell about his talk to the students. “I pointed out the National Career Readiness Certificate is a great tool to show employers the strength of your foundational skills. Finally I pointed out that West Michigan has a new entity called ‘Discover Manufacturing’ (www.discover-manufacturing.com) to expand manufacturing talent throughout West Michigan by connecting education, employers, economic developers, and workforce development.” One of things Dunwell did to illustrate his point was hold up a “pipe-cleaner spring” like some of the students
in the audience had made at WCS (Editor’s note: Springs during a Manufacturing Week has introduced a new tour WCS hosted for nearly 100 department devoted students In October. to news about Career “I used it as a nice connection & Technical Education between simple, hands-on, low-tech (CTE). Please keep us spring making (winding a pipe posted about any efforts cleaner around a pencil to make in your area to attract torsion, compression, and finally students to careers extension springs in the spring and wire i n t he t ra i n i ng forming industry.) room) and walking onto the plant floor to see (and adjust under close supervision) the high-tech spring making machines.” In a story about the event on MLive. com, Snyder said, “When you talk about career tech education, you’re talking about Michigan’s future, and it will and is making a difference.” Snyder said t here a re more t han 100,000 job openings for good jobs in the state. He said having those types of jobs is one of the key elements to a great economy, along with a great quality life and having the talented, hard-working people that have the right skills to take those positions. “That’s something you are on the forefront of,” he told students. “For too long in our state, we didn’t fully recognize the importance of career tech education.” Governor Snyder’s office has said attracting future talent and addressing perceptions is crucial, as employers will continue to actively seek skilled talent to fill the projected 6,700 skilled trade job openings each year through 2022. Snyder’s stop in Grand Rapids was the first on a statewide road show to connect with students, parents and educators to address perceptions and create more awareness on skilled trade careers. n
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ŠiStockphoto.com/seraficus
EliminatE SEcondary opErationS HaX 3d turrEt SEriES FormErS With the same trusted quality youâ&#x20AC;&#x2122;ve experienced in smaller Herdon Hybrid formers now you can handle larger wire ranges. The 16-axis all servo former comes with touch screen programming, moveable slides, rotary wire, 3 standard servo spinners along with an optional double servo spinner or looping station you can take on the large wire jobs without those costly secondary operations. Now is the time to move to the ne xt le ve l.
www.rktradingusa.com 66 / SPRINGS / Winter 2016
847-640-9771
Inside SMI ©iStockphoto.com/seraficus
SMI's Immediate Past President Addresses Spring Federation
S
Steve Moreland Prague
teve Moreland, president and CEO of Automatic Spring Products Corporation in Grand Haven, Michigan, represented SMI at the 8th International Congress of Spring Industry, Sept. 24-25, 2015 in Prague, the capital city of the Czech Republic. Moreland, the immediate past president of SMI, made a speech on the state of the spring industry and the U.S. economy. Similar presentations were made on the economic situation of the spring industry in different parts of the world by representatives from China, Czech Republic, Finland, France, Germany, Greece, India, Italy, Japan, Korea, Switzerland, Spain, Sweden and United Kingdom. A keynote presentation was made by Vojtech Oplestil of PricewaterhouseCoopers on “How Slovak & Czech Cultures Embrace the Principles of Innovation Management.” Featured presentations included: • “High-Performance Leaf Springs for Commercial Vehicles – New Generation Design” • “Heat Treatment of Cold Formed Springs” • “High Tensile Valve Spring Steel in Kobe Steel” • “Investigation of Very High Cycle Fatigue Strength Of Helical Compression Springs” • “Passivation/Cleaning and Packing for the Aerospace Industry” • “Report of ISO TC 227 ‘Springs’” For more information on the Congress, visit http://www.esf-springs.com. n
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Inside SMI
Reception at wire 2016
SMI Welcomes New Members SMI is pleased to welcome its newest members. Gibraltar Corp. Northbrook, Illinois their latest innovations in the following categories: wire manufacturing and finishing machinery; process technology tools and auxiliary process technology materials; special wires and cables; measuring and control technology; and test engineering.
Barber Mfg. Co, Inc. Anderson, Indiana
Come to Dana Point for 2016 SMI Annual Meeting The 83rd SMI Annual Meeting will be held April 15-19 at the St. Regis Monarch Beach in Dana Point, California. This year’s meeting will include the installation of new officers at a black tie optional closing dinner Tuesday, April 19.
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Speakers will include Dr. Rajita Sinha, director of the Yale Stress Center and a professor at Yale University in New Haven, Connecticut; Dr. Paul Stoltz, the author of the national best-seller “GRIT: The New Science of What it Takes to Persevere,
Flourish, Succeed;” and Paul Menig, CEO of Tech I-M, who recently presented at the SMI Metal Engineering eXpo in Charlotte. For more information and to register for the SMI Annual Convention, phone SMI at 630-495-8588. n
©iStockphoto.com/Studio-Pro
SMI will host a cocktail reception April 4 during wire 2016 in Düsseldorf, Germany at the Radisson Blu Scandinavia. The hotel is serving as the headquarters hotel for SMI members who are attending the next concurrent staging of wire Düsseldorf, International Wire and Cable Trade Fair, and Tube Düsseldorf, International Tube and Pipe Trade Fair. The concurrent trade shows will take place from April 4 – 8, 2016 at the fairgrounds in Düsseldorf, Germany. More than 2,500 exhibitors will showcase the most up-todate technologies from the wire, cable, tube and pipe processing industries. At wire 2016, an expected 1,300 exhibitors from 50 countries will present
Committee Connection ©iStockphoto.com/Studio-Pro
Technical Committee Chairman Represents SMI in Japan
T
he chairman of SMI’s Technical Committee, Gene Huber Jr., executive vice president of Winamac Coil Spring, Inc. in Kewanna, Indiana, represented SMI at the First International Conference on Spring Technologies (ICST-1), Nov. 16-18, 2015 in Tokyo, Japan. Huber attended the event with his son, Brock. Also in attendance from the U.S. was Daniel Pierre III, president of JN Machinery in East Dundee, Illinois. The event was hosted by the Japan Society of Spring Engineers (JSSE) and included a welcome reception, a poster session and an exhibition at Meiji University and Akihabara UDX in Tokyo. The welcome reception was held at Meiji University Nov. 16 and included an opening speech by Mark Hayes, the proprietor of Spring Expert in the U.K. In addition, Isao Kato, a member of the local committee and working for Japan Spring Manufacturers Association (JSMA), performed Rakugo, (traditional Japanese comic storytelling and magic) to entertain nearly 75 attendees. Fifteen general lectures and one special topic lecture were presented to 161 attendees from seven countries on November 17. The opening speech was presented by Dr. Katsuji Tosha, the ICST-1 chairman and an adviser to JSSE. The special topic lecture, “Development of Fuel Cell Vehicle in Toyota,” was made by Seji Sano of Toyota Motor Corporation. The closing speech was made by Dr. Yuji Nakasone, the chairman of JSSE and a professor of Tokyo University of Science.
Five technical posters were displayed in the Type N Area of UDX Gallery, and discussions between presenters and participants were made during coffee breaks and lunch time. The purpose of the ICST-1 was to provide attendees with the opportunity to attend academic lectures and to gather information about production technologies and measuring techniques from exhibition booths. In addition, the event provided a venue for attendees to interact with engineers from around the world at a banquet held Nov. 17. “What an opportunity to travel to Japan and represent SMI before the international spring industry,” said
Huber Jr. “I had great discussions with leaders from many different countries, and I’m grateful to learn more from all the papers that were presented by the worldwide industry on a variety of topics related to the engineering and manufacturing of springs.” ICST-2 will be held in Germany in 2019. To download a copy of the proceedings at ICST-1, visit: http:// www.esf-springs.com/wp-content/ uploads/2015/12/Proceedings-ofICST-1.pdf. For more information or to provide feedback about SMI’s committees, contact SMI’s executive director Lynne Carr at lynne@ smihq.org or 630-495-8588. n
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New Products
Forming Systems has introduced the new HTC 50XU. The 50XU includes: A wire range of 2.6 - 5.0mm (.102" – .196"); standard 13 axes; available up to 18 axes; "Z" axis Quill IN/OUT movement, providing additional setup flexibility; a rotating tool holder to provide tool change capability for fast setup with minimal tooling; "SWING" motion on certain slides provides added flexibility for complex shapes; advanced machine self-diagnosis with the latest software; and, optional in 2016, real time machine monitoring will be available via Wi-Fi, including alarm and error reporting, run time, productivity reporting and machine downtime. The XU Series of machines provides fast, all servo controls, for minimized setup times requiring minimal tooling. For additional information, please contact Forming Systems, Inc. at 269-679-3557.
Smart Vision DDL Dome Light Series for OCR Codes Smart Vision Lights, a leading designer and manufacturer of high-brightness LED lights for industrial applications, has introduced a new line of dome lights designed for use with OCR codes on reflective or round surfaces. The DDL Dome Light reads code and imperfections on rounded or highly reflective products with an even, uniform and repeatable light intensity. The lights are available in three models: DDL-100, DDL-150 and DDL-250. The DDL Dome Light Series features Smart Vision Lights’ Multi-Drive controller and built-in driver. The Multi-Drive controller combines the constant on operation and the high pulse operation into one easy-to-use product. The Multi-Drive controller allows the user to run the product in constant on operation or pulse/strobe the light at the maximum allowed intensity by the LED manufacturer by simply setting the product parameters. The DDL Dome Lights are easily installed or disconnected with an industry-standard 5-pin M12 connector, and are available in white, blue, green and red. For more information on the DDL Dome Light Series or other industrial and machine vision LED lighting products from Smart Vision Lights, visit SmartVisionLights. com, or contact national sales manager Bobby Segraves at 231-722-1199 or Bobby@SmartVisionLights.com. n
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©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey
Forming Systems Introduces HTC 50XU
SMI Annual Meeting April 15-19, 2016
Don't miss this year's line up of engaging speakers!
©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey
St. Regis Monarch Beach Dana Point, California Join Yale University's Dr. Rajita Sinha as she conducts mindfulness exercises and discusses how to be effective and optimize function. Her second presentation about stress and the brain offers common sense approaches for improving wellness in the workplace.
Hear best-selling author Dr. Paul Stoltz's compelling two-part introspective on GRIT and how to use it to your advantage in personal and business life. Take his optional GRIT Gauge survey and find out how much GRIT you have.
Listen as Paul Menig presents the results of his in-depth two-year investigation of the spring industry. He will speak about the future for small, medium and large companies and how to grow your business into a more successful enterprise.
Information and registration: phone SMI at 630-495-8588
Advertiser's Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . 24 Admiral Steel (800) 323-7055. . . . . . . . . . . . . . 35 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 17 CASMI (630) 369-3466. . . . . . . . . . . . . . 27 Central Wire (800) 435-8317. . . . . . . . . . . . . . 26 Century Spring, Division of MW Industries (800) 237-5225. . . . . . . . . . . . . . 45 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . 16 Dispense Works (815) 363-3524. . . . . . . . . . . . . . 50 Elgiloy Specialty Metals (847) 695-1900. . . . . . . . . . . . . . 31 Fenn/Torin (860) 594-4300. . . . . . . . . . . . . . 36 Forming Systems Inc. (877) 594-4300. . inside front cover, back cover Gibbs Wire (800) 800-4422. . . inside back cover
Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . 18 InterWire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161. . . . . . . . . . . . . . 30 Kiswire (201) 461-8895. . . . . . . . . . . . . . 54 Larson Systems (763)780-2131. . . . . . . . . . . . . . 12 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . . 9 Mount Joy Wire (717) 653-1461. . . . . . . . . . . . . . 32 NIMSCO (563) 391-0400 . . . . . . . . . . . . . 59 North American Spring Tool (860) 583-1693 . . . . . . . . . . . . . 22 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . 10 Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . 51 RK Trading (847) 640-9371. . . . . . . . . . . . 5, 66 Rolled Metal Products 800) 638-3544 . . . . . . . . . . . . . . 38
Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . 23 Spring Manufacturers Institute (630) 495-8588 . . . . . . . . . . . . . . 71 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 13 Tool King (800) 338-1318. . . . . . . . . . . . . . 60 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . . 6 United Wire Co. (800) 840-9481. . . . . . . . . . . . . . 64 Vinston (847) 972-1098. . . . . . . . . . . . . . 11 Vulcan Spring & Manufacturing Co. (215) 721-1721. . . . . . . . . . . . . . 33 WAFIOS (203) 481-5555. . . . . . . . . . . . . . . 3 wire Düsseldorf (312) 781-5180. . . . . . . . . . . . . . . 8 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 56
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Snapshot ©iStockphoto.com/Tryfonov Ievgenii, nicholas belton
Tony Pesaresi Winamac Coil Spring
Name: Anthony W. Pesaresi Nickname: Tony Company name, city and country: Winamac Coil Spring, Inc., with facilities in Winamac and Kewanna, Indiana. Brief history of your company: Founded in 1948 by my grandfather, Walter Pesaresi. It continues today under the direction of the third generation.
Tony Pesaresi with Garrett (back row)
and l-to-r (front row): Curtis, Tina and
Cale.
Job title: President Spring industry affiliations: CASMI, director, SMI member, FEMA.
Favorite places: Heinz Field, Pittsburg, Pennsylvania.
Birthplace: Winamac, Indiana. Current home: Kewanna, Indiana.
Best times of my life: One recently, riding my Harley to Pittsburg for Steelers training camp.
Family: Tina – wife of 19 years; Garrett – son, 18; Cale – son, 13; Curtis – son, 11.
A really great evening to me is: Watching the Pittsburg Steelers, winning of course.
What I like most about being a springmaker: Having the opportunity to carry forward my grandfather’s dream while meeting other extraordinary individuals within this industry.
The one thing I can’t stand is: People being late.
Favorite food: Buttered macaroni with Parmesan cheese. Favorite books/authors: “The Slight Edge” by Jeff Olson. Favorite song/musician: Bon Jovi. Hobbies: Instructing firefighters.
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My most outstanding qualities are: My willingness to step up and help anyone. I don’t mind getting my “hands dirty.” People who knew me in school thought I was: Quiet and reserved. I knew I was an “adult” when: I bought my first home at 21. We are still living in it.
If I weren’t working at Winamac Coil Spring, I would like to: Be a career firefighter. The most difficult business decision I ever had to make was: Having to dismiss an employee who was a very good friend. I wonder what would have happened if: I had finished my degree at Purdue. I would like to be remembered in the spring industry for: Getting things done while respecting those who led before. But people will probably remember me for: My aggression and passion.