January 2014 - Volume 8; Issue 1
SURGEONS of STEEL In this issue... Focus on Federated: How to Prevent Costly Electrical System Problems Legislative Update: If You Make It Or Grow It In Wisconsin You Will Not Be Taxed Attracting and Retaining your Future Workforce: Presentation Insights
President’s Letter
I
would like to start by saying how humbled and honored I am to serve as president of the Tool, Die and Machining Association of Wisconsin in 2014. I hope everyone’s Christmas and holiday season was memorable and relaxing so we can look forward to this new year with optimism for health and prosperity. Our Association was started in 1937 and has endured over 76 years of a constantly changing environment. Changes in the economy, changes in machining practices, the evolution of computers in our businesses, and an endless list of others, have not stood in the way of our purpose. I believe the core of our Association, our Mission Statement, is still viable and needs to be reiterated. Mission Statement The Tool, Die & Machining Association of Wisconsin, established in 1937, was organized for the purpose of providing a forum for the independent tool & die and machine shop owners of Wisconsin to discuss mutual problems and for the exchange of ideas in business management and the technical aspects of the industry. We are also committed to educating the community, parents, and students about our
industry through scholarships, seminars, and the like, and on the life long rewards of a career in the metalworking industry. Our Association today is a larger, multifaceted group with committees and focal points that cover a variety of concerns not found in the TDMAW of 1937. We have evolved to include sponsors, partners and individuals who may not qualify as members, but have proven to be a very important and crucial part of this Association by working with our members to support their businesses. We, as members, need to acknowledge the support of our partners and sponsors and realize that it is because of them our Association thrives. Please keep an open mind regarding our ever-changing group and understand I am focused to stay true to our mission statement. I would like to thank Mike Mallwitz for his years of service on the board, especially the last two as president. His time spent and commitment to our Association is second to none. I would also like to thank our departing board members Gary Broege and Terry Moon for their dedication and service and thank new board members Brian Nuetzel and Randy Weber for making the commitment. I look forward to working with all of this year’s board of directors and ask for their support and guidance as we enter 2014. I wish everyone a great new year and please feel free to contact me with any of your concerns regarding the TDMAW, and I will do my best to address them. – Steve Latus
On January 7, 2014, TDMAW held a members-only Annual Meeting prior to the general meeting where Partners and Sponsors were invited to attend. The meeting was held at Alioto’s Restaurant in Wauwatosa. 33 representatives from 20 member companies, one Honorary member and one Retired member were in attendance. 22 Partners, Sponsors and guests joined members to network at the general meeting that followed, and to learn about “Attracting and Retaining the Emerging Workforceâ€? from Aleta Norris, President of Living as a Leader. 2014 Annual Meeting Summary UĂŠ ĂŠ/ 7ĂŠ i“LiĂ€ĂƒÂ…ÂˆÂŤĂŠ*Â?>¾ÕiĂŠĂœ>ĂƒĂŠ>Ăœ>Ă€`i`ĂŠĂŒÂœĂŠÂ˜iĂœĂŠÂ“i“LiĂ€]ĂŠ ÂœÂ…Â˜ĂŠ7iLiĂ€ĂŠÂœvĂŠ ĂžÂŤÂ˜iՓ>ĂŒ]ĂŠ ˜V° UĂŠ >V…ÊÓä£ÎÊ Âœ>Ă€`ʓi“LiĂ€ĂŠĂœ>ĂƒĂŠĂ€iVÂœ}Â˜ÂˆĂ˘i`ĂŠvÂœĂ€ĂŠĂŒÂ…iÂˆĂ€ĂŠĂƒiĂ€Ă›ÂˆViĂŠ>˜`ĂŠVÂœÂ“Â“ÂˆĂŒÂ“iÂ˜ĂŒĂŠĂŒÂœĂŠ/ 7°Ê UĂŠ >ÀÞÊ7i…À…iÂˆÂ“ĂŠ>Â˜Â˜ÂœĂ•Â˜Vi`ĂŠĂŒÂ…iÊÓä£{ĂŠ-Â?>ĂŒiĂŠÂœvĂŠ"vvˆViĂ€ĂƒĂŠ>˜`ĂŠ>ĂƒÂŽi`ĂŠĂŒÂ…>ĂŒĂŠĂŒÂ…iÞÊÂ?i>Ă›iĂŠĂŒÂ…iĂŠĂ€ÂœÂœÂ“ĂŠvÂœĂ€ĂŠ a final vote. Votes from those at the meeting were combined with Proxy votes, and the entire slate was unanimously confirmed. UĂŠ-ĂŒiĂ›iĂŠ >ĂŒĂ•Ăƒ]ĂŠĂŒÂ…iÊÓä£{ĂŠ/ 7ĂŠ*Ă€iĂƒÂˆ`iÂ˜ĂŒ]ĂŠ>Ăœ>Ă€`i`ĂŠ ˆŽiĂŠ >Â?Â?ĂœÂˆĂŒĂ˘ĂŠ>ĂŠÂŤĂ€iĂƒÂˆ`iÂ˜ĂŒÂ˝ĂƒĂŠÂŤÂ?>¾ÕiĂŠ>˜`ĂŠ thanked him for his two years of outstanding service as President. Mike will remain on the Board, as Chairman. UĂŠ-ĂŒiĂ›iĂŠĂƒÂ…>Ă€i`ĂŠÂ…ÂˆĂƒĂŠĂ›ÂˆĂƒÂˆÂœÂ˜ĂŠvÂœĂ€ĂŠĂ“Ă¤ÂŁ{°Ê ÂœÂ?Â?ÂœĂœÂˆÂ˜}]ĂŠ>ĂŠĂ€iÂŤĂ€iĂƒiÂ˜ĂŒ>ĂŒÂˆĂ›iĂŠvĂ€ÂœÂ“ĂŠi>VÂ…ĂŠVÂœÂ“Â“ÂˆĂŒĂŒiiĂŠĂ€iV>ÂŤÂŤi`ĂŠ their 2013 accomplishments and gave their committee’s vision for 2014. ~ Watch for a full recap of their reports in the February issue of Surgeons of Steel. ~
2 | TDMAW HQ 262-532-2440
2014 Board of Directors President Steve Latus Journeymen Tool & Technologies, Inc. 414.228.8338 Vice President Doug Brockelman Stanek Tool Corporation 262.786.0120 Treasurer Randy Weber DACO Precision-Tool 262.626.6591 Secretary Brian Nuetzel Matzel Manufacturing, Inc. 414.466.3800 Chairman of the Board Mike Mallwitz Busch Precision 414.362.7305
2014 Committee Chairs Apprenticeship Committee Ken Heins 262.253.4990 Budget Committee Randy Weber 262.626.6591 Insurance Committee Allen Weiss 262.820.3400 Legislative Committee Kathy Pfannerstill 262.250.7640 Membership/Programs/ Events Randy Weber 262.626.6591 Promotions Committee Lynn Mahuta 262.502.4100 Business Support Committee Doug Brockelman 262.786.0120 Scholarship Committee Steve Latus 414.228.8338 Nominations Committee TBD
TDMAW Headquarters
W175 N11117 Stonewood Drive, Suite 204 Germantown, WI 53022 262-532-2440 Phone 262-532-2430 Fax toolmaker@tdmaw.org www.tdmaw.org
www.TDMAW.org
For Members Only - Classified Advertising ASSOCIATION UPDATES UÊÓä£{ĂŠ Ă•iĂƒĂŠ,i˜iĂœ>Â?ĂŠ>ÂŤÂŤĂ€iVˆ>ĂŒi`ĂŠLÞÊ >Â˜ĂŠĂŽÂŁĂƒĂŒ UĂŠĂŠ Â…iVÂŽĂŠÂœĂ•ĂŒĂŠĂŒÂ…iĂŠĂƒÂˆ}˜ˆvˆV>Â˜ĂŒĂŠÂˆÂ“ÂŤĂ€ÂœĂ›i“iÂ˜ĂŒĂƒĂŠÂ“>`iĂŠĂŒÂœĂŠĂŒÂ…iĂŠ apprenticeship section of the DWD web site. Go to: http://dwd. wisconsin.gov/apprenticeship/ UĂŠĂŠ/ 7ĂŠLĂžÂ?>ĂœĂƒĂŠĂœiĂ€iĂŠĂ•Â˜>Â˜ÂˆÂ“ÂœĂ•ĂƒÂ?ÞÊ>ÂŤÂŤĂ€ÂœĂ›i`ĂŠLÞʓi“LiĂ€ĂƒÂ°ĂŠĂŠ/ÂœĂŠ access updated bylaws please contact TDMAW HQ or visit www. TDMAW.org UĂŠĂŠ i“LiĂ€ĂƒĂŠÂˆÂ˜ĂŒiĂ€iĂƒĂŒi`ĂŠÂˆÂ˜ĂŠĂ€iViÂˆĂ›ÂˆÂ˜}ĂŠ/ 7ĂŠ+Ă•>Ă€ĂŒiĂ€Â?ÞÊvˆ˜>˜Vˆ>Â?ĂŠĂ€iÂŤÂœĂ€ĂŒĂŠ updates, contact TDMAW HQ. ĂŠUĂŠĂŠ/Â…iĂŠ/ 7ĂŠĂŒÂ…>Â˜ÂŽĂƒĂŠĂžÂœĂ•ĂŠvÂœĂ€ĂŠ}i˜iĂ€ÂœĂ•ĂƒÂ?ĂžĂŠĂƒĂ•ÂŤÂŤÂœĂ€ĂŒÂˆÂ˜}ĂŠ ii`ˆ˜}ĂŠ America Eastern Wisconsin, they are very appreciative.
CLASSIFIEDS New Equipment Capabilities- Wisconsin Engraving Co. www.wi-engraving.com Mitsubishi 55J Sinker EDM X=48�, Y=24�, Z=24�. We also have 7 other sinkers. HAAS VM2 Vertical Mold Making Machine 12,000 RPM. 30� X 20� X 20�. We also have 7 other VMC, up to 30,000 RPM.
US Bank will provide offers to TDMAW members only!
Tool steel for sale: (1) piece A-2, 13.38� dia x 4.75�, 189#; (1) piece A-2, 7.0� dia x 2.88�, 31#; (1) piece D-2. 10.38� dia x 4.25�, 101#. Contact: Ken Mahuta 262-502-4100 or e-mail, ken@mahutatool.com Machine for sale: 1999 Hitachi Seiki Horizontal Machining Center-- 10,000RPM, CAT 50, 120 Tool ATC, Full 4th Axis, Through Spindle Coolant, Seicos 10M control, Tooling and Tombstones available. Email ezeitler@allistool.com for more information or to schedule a showing. N118 W19137 Bunsen Drive Germantown, WI 53022 Phone: 262-502-4100 E-Mail: sales@mahutatool.com www.mahutatool.com
CNC Short Run Turning
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We supply the machining industry!
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at 800.873.9703 or 262.814.0266 toolmaker@TDMAW.org
#4257 Ad.indd 4
1/7/2014 9:19:54 AM
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Wisconsin’s Bank for Business has YOUR BUSINESS COVERED Whether a large middle market company, a local small business, or anything in between, Town Bank has the resources to help you succeed.
4 | TDMAW HQ 262-532-2440
Please contact Keith Baisden, Senior Vice President, at 262-432-6256 to discuss your business’ financial needs.
www.TDMAW.org
TDMAW Updates, News and More Announcing TDMAW’s Newest Sponsors
2014 UPCOMING EVENTS
Foundations Bank Contact: John Griffin 262.691.9400, john.griffith@foundationsbank.com
January 28th – Breakfast Meeting at Swick Technologies
Hagemeyer Contact: Bob Stollenwerk (414) 254-3084, bstollenwerk@hagemeyerna.com
February 18th – Lunch Meeting with Ron Johnson March 14th – Luck ‘O the Irish Casino Night
Progressive Machinery, Inc. Contact: John Gennrich (414) 577-3200, john.g@progressivemachinerywi.com
April - Dinner with Herb Kohl and Bucks Game May 6th – Dinner Meeting at Delafield Brewhaus, featuring Federated Insurance
June 17th – TDMAW June Outing: Golf Outing at River Club vÊ iµÕ Ê> `Ê > iÊ V }> Ê >ÀÌiÀÊ Ã }ÊÌ À Õ} Ê,ii Ê Sensations.
Mark your calendars and watch for details
Randy Weber, TDMAW Membership Chair, welcomes our newest TDMAW member John Weber of Hypnomat at our January meeting.
RegisteR today! tuesday, January 28, 2014 ~ Breakfast Meeting ~
“Four Steps to Supercharge Your Online Marketing”
Incoming 2014 TDMAW President, Steve Latus, presents outgoing President Mike Mallwitz with the TDMAW President’s Plaque, thanking him for his dedicated service and leadership in 2012 and 2013. Mike will continue to serve as Chairman of the Board.
FINANCING 101 (If you can make it, we can finance it.)
John Griffith
Steve Rossmeissl
(262) 691-1734
(262) 746-3969
Senior Vice President
First Vice President
Located on the corner of Hwy. 164 & West Capitol Dr. www.foundationsbank.com
toolmaker@TDMAW.org
Presenter: Deeatra Kajfosz, Owner of Nalani Services, Inc., TDMAW Sponsor Location: Swick Technologies, 15700 W. Cleveland Ave., New Berlin, WI 53151, TDMAW Sponsor time: 8:00 a.m. to 9:30 a.m. Menu: Scrambled Eggs with Cheese, French Toast CasseAssorted juice & Coffee Cost: $20 in advance, $25 at the door Registration deadline: January 24, 2014 -- early registration is appreciated. Contact TDMAW HQ at 262.532.2440 or toolmaker@TDMAW.org
This program will be geared towards company Owners and Marketing Directors. Invited to attend are: TDMAW members and employees, TDMAW Sponsors, TDMAW Partners, Local Trade Associations (AFS, NADCA, NTMA, AMBA, PMA), and community partners.
Member FDIC
5
TDMAW Friendly Association Summit TDMAW Ad Hoc Community Outreach Initiative hosted a Friendly Association Summit in Dec 2013 in hopes to collaborate with our neighboring sister associations. Ideas shared and discussed include supporting each other through events, promotions of events, creating an image and passion for manufacturing to pass on to parents and students alike and possibly creating a “Super Committee” with representation from each association. Those attending shared the scope of their association, abbreviated below. The plan is to meet again in February. Watch for new happenings on this front in future Surgeons of Steel issues. Present from TDMAW were Mike Mallwitz, Randy Weber and Laura Gustafson of TDMAW HQ and the following: American Foundry Society (AFS) George Forish AFS is an international association i>`µÕ>ÀÌiÀi`Ê Ê °Ê WI is the largest chapter with around 550 members. Monthly meetings are held and are generally of a technical nature. A regional conference is held every year in February. AFS offers two scholarships. AFS is a volunteer run association.
6 | TDMAW HQ 262-532-2440
American Mold Builders Association (AMBA) Dan Glass There are around 400 members nationally. WI and UP chapter has around 40 members. Not many meetings are held due to low attendance. North American Die Casting Association (NADCA) Tim Kauffung NADCA has 15 chapters and Chapter 12 represents southeastern Wisconsin. NADCA offers corporate, individual and student memberships. There are four business meetings per year. NADCA offers a scholarship. Each year NADCA hosts a class at a technical college. The benefits of membership include: a magazine, lobbying and job fairs. National Tooling & Machining Association (NTMA) Mike Retzer NTMA has 36-39 chapters representing 1700 companies. NTMA is heavily involved in government affairs. Membership consists of Controllers, Managers, Presidents and Foremen. The association was formed during WWII to get draft exemption because Tool & Die makers were needed to build armaments. e. NTMA – U offers six online courses for machining, built around National Institute of Metalworking Standards (NIMS).
This offering is important for states that do not have a strong technical school system. They support national robotics leagues, including Bots IQ WI. There are national conventions that include roundtable discussions that lead to the formation of partnerships and business collaborations. NTMA partners with PMA on their lobbying efforts. Precision Metalforming Association (PMA) Mark Ullstrup WI is one big chapter. There are around 15 chapters nationally. Meetings are held September – June on the third Tuesday of the month throughout the state. Half of the meetings are tours. There are usually 30-50 people in attendance at meetings. They have many lunch meetings where they meet at 10 a.m., tour, have lunch and then are free to go. PMA has many national meetings. Every February PMA has a national automotive group come in for a meeting. Scholarships are offered and a focus is put on education. A golf outing is held in June.
www.TDMAW.org
Focus on Federated SuBMITTED By FEDERATED INSuRANCE, TDMAW GROuP BuyING PARTNER AND SPONSOR
HOW TO PrEvENT COSTLY ELECTrICAL SYSTEM PrOBLEMS Why Preventive Maintenance Is More Important Than Ever more often and causing more severe losses. Like the country’s aging and overburdened electrical infrastructure, buildings and electrical systems are aging and may not be designed to handle the load most businesses need as they add more equipment. Inadequately maintained electrical systems also are a leading cause of business interruption, poor energy breakdown—all costly problems. maintenance program can reduce your risk of an unscheduled outage by as much as 66 percent according to statistics from the Institute of Electrical and Electronics Engineers.
What You Can Do To Keep Your Electrical System Safe Focus your electrical preventive maintenance program on the most common and frequent problems leading That includes inspection and preventive measures to ensure electrical apparatus is kept clean, cool, dry, and tight.
Keep It Clean rooms should be free of excessive dust and dirt accumulation. rooms for storage. operations and maintenance personnel.
adequate cooling. inequipment enclosures clean and free from obstruction. according to the manufacturer’s recommendations.
Keep It Dry protect equipment from moisture. Persistent exposure and direct contact with moisture can cause equipment to fail or shorten its life. contamination. If found, examine equipment for damage and get necessary repairs made. Identify and eliminate the source of moisture.
Keep It Tight common source of electrical equipment failure. they are keptt ight.
Sustainability - Casting Our Futures Together The American Foundry Society – Wisconsin Chapter, along with our associating chapters, AFS – Northeastern Wisconsin Chapter and AFS – Stateline Chapter, invite you to: The 76th Annual Wisconsin Foundry Conference and Expo! When:
February 12, 13 and 14, 2014
Where:
Crowne Plaza Hotel Milwaukee Airport 6401 S. 13th Street Milwaukee, WI 53221
This year’s regional features a specially selected program of management, marketing and technical services dedicated to Engineering, Energy and Environmental Health & Safety, Ferrous and Non-ferrous productions. Some of the Featured Topics Include: The Yin & the Yang of Health Care Economics Sustainability - The Key Driver of Innovation
manufacturer’s instructions for tightening.
Opportunities for Heat Recovery in the Foundry
test for loose connections.
And so much more!
Where To Begin With A Maintenance Program electrical equipment maintenance is following applicable jurisdictional
The Use of Differential Thermal Analysis in Iron Foundries
Don’t miss this opportunity to exchange ideas, network with your fellow foundry professionals, meet exhibitors and learn more about overcoming the challenges that foundries face.
manufacturers’ recommendations. Regular and routine maintenance is extremely important. Preventive maintenance should be performed at least every three years or more often when conditions warrant.
maintenance.
Keep It Cool in electrical apparatus enclosures and equipment rooms. Exceeding
competent maintenance personnel to electrical equipment. Electrical system maintenance increases safety and decreases losses.
hazard, and can also shorten the life of equipment.
breakdown,
installed on equipment to provide
wear-out with a preventive maintenance program.
toolmaker@TDMAW.org
business
interruption,
For complete details on how to sign up and attend this event, please visit www.wisconsinafs.org or email afswi@teamwi.com EXHIBITING OPPORTUNITIES AVAILABLE!
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Zapp Tooling Alloys, Inc. Z-Series Powdered Metal Tool and High Speed Steels Midwest Service Center, Gurnee, IL Phone 888 928-9927, Fax 843 873-6649 ZTAsales@zapp.com, www.zapp.com
8 | TDMAW HQ 262-532-2440
www.TDMAW.org
Legislative Update
IF YOU MAKE IT Or GrOW IT IN WISCONSIN YOU WILL NOT BE TAxED
R
Additional unintended consequences are abundant. The Tax Policy Center states that the AMT eliminates the
we are asking all TDMAW members to contact their State Senator and State Representative, along with Governor Walker asking for their support of Assembly Bill 484.
a deductions for certain expenses like mortgage interest or high medical bills
In addition we are also urging members to consult with their accountants before
AB 484 passage is important to correct these egregious tax policies in Wisconsin. A public hearing was held on the bill in November 2013. I expect an executive hearing to happen this January. I urge you to stress the importance of this legislation for the
to phase out income taxes on Wisconsin manufacturers. However, due to a drafting error in the original legislation, businesses organized as Partnerships, LLC’s, and S-Corp’s would either
Chet Gerlach
Governor will pass this legislation by the end of March so that members will not
Dale Kooyenga Guest Article
T
taxes on manufacturing and agriculture in Wisconsin. If you make it, or grow it in Wisconsin you will not be taxed. When fully implemented in 2016, the credit will equal to 7.5 percent of one’s income attributed to manufacturing or agriculture. The credit was passed to incentivize economic behavior in our state’s most important reordering of state credits. Despite the authors’ meaning after calculating the credit the majority of the credit would be clawed The AMT is a bad public and tax policy and should be repealed all together. Wisconsin is one of seven states that have an AMT on individual income beyond the federal AMT. As if one income tax code is not enough, the AMT represents a second income tax that increases compliance costs and overall complexity. The with the federal AMT are well documented and Wisconsin’s AMT issues are similar. The AMT continually captures more individuals that are middle income. In 2013,
As our economy continues to grow we should use the additional revenue to alleviate the state’s tax burden. Eliminating the state’s AMT is a much needed reform that is overdue. If you agree voice your support to your state representative and state senator. We are proud of the work you are doing; you will continue to have our support.
and current reservist serving as a Captain in the united States Army. He was elected to the Wisconsin State Assembly in 2010 and currently serves on the Joint Finance Committee.
grow to 30,000 in 2015.
Did you know The TDMAW Legislative Committee authored legislation called “Tool Builder’s Lien Law”?
provides an added incentive for the purchaser of the tool to pay. If they do not pay, the Builder can enforce the lien by foreclosing on the tool. The lien is enforceable up to the amount that a customer or manufacturer owes the Builder. The law also establishes rights for the manufacturers who use the tool. This portion of the statute is not addressed here, but be aware of its on April 29, 2006.
QUICK REFERENCES Find your elected officials at: http://legis. wisconsin.gov/Pages/default.aspx 1. Click on “who represents me” fill in Ì iÊÀiµÕiÃÌi`Ê v À >Ì Ê> `ÊÕ«Ê« «ÃÊ a members state senator and state representative 2. Click on the picture, members are taken to their legislators home website which includes information on how to email the legislator 3. Send an email to your legislator
Access the Tool Builder’s Lien Law at: http://tdmaw.org/newsLegislative. html; www.TDMAW.org, News, Legislative, and click on appropriate link. toolmaker@TDMAW.org
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(414) 351-5990
Bell-Well Sales Co. STOCKING DISTRIBUTOR Socket Screw Products- Featuring Unbrako and Holo Krome Large inventory of non-standard items | Raymond Die Springs Precision Ground Flat Stock and Drill Rod Vlier Engineering Fixture Components | Miscellaneous Fasteners E-Z Lok Inserts | Hex Head Cap Screws | Nuts | Threaded Rod Machine Screws and Washers 262-781-3670 | 262-781-6077 Fax | sales@bellwellsales.com N54 W13864 Woodale Drive Menomonee Falls, WI 53051 www.bellwellsales.com
10 | TDMAW HQ 262-532-2440
www.TDMAW.org
Attracting and retaining your Future Workforce
T
he emerging workforce is looking
relationship than generations that preceded them. The cultures that have been authored throughout the past thirty years are not appealing to our young workers. Here is a brief summary of what they’re looking for:
later
-
Presentation Insights from our Jan 7th Meeting Pensions are going away, and the gold watch, a single function device? Well…. you can keep it. So what can you do to try to foster loyalty and longevity where it doesn’t naturally exist? Nick Sarillo, owner of Nick’s Pizza and Pub in Crystal Lake, IL had a good idea: Build a business plan AROuND the people. He took on an industry with 300% employee turnover and built a loyal workforce of primarily teenagers and young adults. Check out his book, “A Slice of the Pie: How to Build A Big
ing into their organization In organizations where owners and leaders have a more traditional approach to the workplace, we hear the following kinds of comments:
For right now, though, let’s take a high level look at eight leadership strategies that will help you succeed in meeting the high expectations of this generation of the workforce.
Eight Strategies For Leading Generation Y
‘butt in seat’ mentality.
#1 - Stop! Stop thinking the worst of them. Just as in any generation, you will ers and low performers. Treat them as This is a disconnect. And research shows that this is a problem. 23% of new workers leave their jobs within the job is 18 months. Employees are disappointed. Organizations are, too. Who has the upper hand? Employees do, loyalty, and the long job….well, they’re just gone. There was a day when the unwritten agreement was “Listen, for as long as you’d like a job, you can have this job. Give us 30 years, and we’ll
toolmaker@TDMAW.org
you can move away from a stereotype that, somehow, they’re all frustrating. Onboard them with a process. Make them feel important. They’re accustomed to a certain level of acknowledgment, attention and structure. Don’t underestimate the fact that the young professionals want to be part of something great. Set the stage: “I have high expectations of the people who work with me. I will hold you accountable. If I see you doing things well, I’m going
Ask each Gen Y employee what he or she is looking for! Do not lump your individual workers into a big pot and label them. Treat them as individuals. your best performers, ask “What can I respond to each Gen Y employee relaIt is conceivable that you will be able to give your Gen y employees some of what they want, and they will have to The bottom line is this: This generation was raised in a context are not prepared to come into your organization and be ignored or de-valued. Hold them accountable for results. From our experience, employees want to be held accountable for something great. Set your expectations clear and high, then pay attention. When they’re them. I remain a keen supporter of the talent that you are beginning by taking a hard look at how you’re set up to attract and the challenge. Aleta Norris, along with Nancy Lewis, is a co-founding partner of Impact Consulting Group, LLC and Living As A Leaderä, a leadership training, coaching Aleta at anorris@livingasaleader.com. Also, visit www.livingasaleader.com to learn more about services to support your leaders, one at a time or more.
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Cheryl Aschenbrener 13400 Bishops Lane, Suite 300 Brookfield, WI 53005 262.754.9400 caschenbrener@sikich.com
1070823_09558 3.5" x 2" BW
We proudly salute TDMAW Heather Nill, Business Banking 414-530-1925 • heather.nill@wellsfargo.com © 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (1070823_09558)
1070823_09558 3.5x2 bw.indd 1
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12 | TDMAW HQ 262-532-2440
To learn more, contact us: 9300 West Heather Ave. Milwaukee, WI 53224 (414) 586-0450 www.morrismidwest.com
www.TDMAW.org
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toolmaker@TDMAW.org
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414.577.3200
progressivemachinerywi.com
REDUCE YOUR TOOLING SPEND BY 20% OR MORE With an AUTOCRIB Tool Management System from ApTex formerly Waukesha Industrial
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NEW Innovative Smaller Equipment! UÊ vv À`>L iÊv ÀÊà > iÀÊà «ÃÊUÊ*iÀviVÌÊà âiÊv ÀÊVi Ê >V iÃÊ UÊ >À ÕÃi ÊÃÞÃÌi Ê> ÜÃÊ` ëi à }Ê>ÊÜ `iÊÛ>À iÌÞÊ ÀÊ Ìi à "1,Ê , / 6 Ê*," , -Ê 9Ê "/Ê, +1 , Ê 9Ê * / Ê 8* /1, Ê 9Ê9"1t
Contact your ApTex Salesperson or our VMI Specialists for more info!
262-548-8960 aptexinc.com W227 N878 Westmound Dr. Waukesha, WI 53187
14 | TDMAW HQ 262-532-2440
www.TDMAW.org
STrATEGIC PLANNING HOW
F
or every company there are
‘how’ of strategic planning. While I can’t speak for every industry, I can provide general guidelines as they relate to technology. We specialize in technology planning for many industries and these guidelines are
Planning for increased data storage or additional functions will be a part of the planning process. 3. Line of business applications are always part of every business management process. Each industry has applications for the year, looking at the new features of your line of business application is important. These new features are generally
segments. In general the planning looks at three major factors: 1. How many new employees are needed for your projected them productive and any new employees will need some technology to get them going. 2. How old is existing technology? Older technology can
When investigating the features, be sure to request information about the technical requirements of the upgraded applications. In some situations newer servers or adjustments to existing systems will be required to take advantage of improved features. during your planning process will ensure any new technology will be aligned with your business goals and increase your
updating older computers is more expensive than replacing them with newer computers.
Mike Eckl, Business Banking Officer, 262.339.0729
toolmaker@TDMAW.org
Stacy Bell, Treasury Management Officer 414.744.2028
15
s &LAT (ONING &INE 'RINDING s $OUBLE $ISC s $OUBLE $ISC AND $OUBLE 3IDED ,APPING s "LANCHARD s 3URFACE s 6ALUE !DDED
#/,5-")! '2).$).' 414-762-7320 /AK #REEK 7)
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As a leader in supply chain solutions, we at MSC believe in local people solving local problems. W237 N2889 Woodgate Rd., Unit C Pewaukee, WI 53072 mscdirect.com
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YOUR ONE-STOP MANUFACTURING AND MACHINING PARTNER MACHINING CAPABILITIES
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16 | TDMAW HQ 262-532-2440
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THE IMPOrTANCE OF M&A‌EvEN IF YOU’rE NOT CONSIDErING A SALE Or ACqUISITION
B
usiness owners often consider M&A transactions as one of life’s most
and they get an intense introduction to the particulars of the industry when selling or purchasing a company...but, what if you’re not considering these events. Is it still important to be aware of M&A topics and market dynamics? yes, and it could ultimately be worth millions to do so. with building a better business. Business value is a common objective of business owners, and theoretically driven by terms for which they strive: Valuation is universally the most discussed term in investment banking negotiations, so understanding value from to business owners and commonly uncovers valuation factors that might not be considered in day-to-day operations. Investment bankers are experienced at assessing these valuation factors, such ring revenue or contracts, industry comstrength of the management team and related employment contracts, dynamics of family in the business, and capital expenditures, etc. understanding what contributes to business valuation can reveal areas for operational improvement, and ultimately, increase value. While the decision to sell or make an acquisition goes beyond market dynamics and is a very emotional, personal and professional decision, market trends
should be considered since they can sigfrom buyers, transaction structure and value. Currently, it’s a seller’s market. and private equity groups have substantial raised funds, there is a very limited inventory of available companies in the market, which is increasing business valuations and related multiples of cording to GF DataŽ Resources LLC, the average EBITDA multiple for companies istics is 6.0x through September 30, 2013 versus 4.9x in 2009. Assuming a business with $3.0 million in EBITDA and in value when selling in 2013 compared to 2009 is $3.3 million for the same business. Additionally, selling in a favorable market increases the population of buyers, which provides more options and improves negotiating leverage for the seller. current M&A market dynamics, corporations, private equity groups and individuals are more aggressively approaching target companies to discuss a potential acquisition. While these unsolicited buyers vary in quality, professionalism and value methodologies, business owners should be prepared to respond to these inquiries and qualify these buyers appropriately. An unsolicited buyer could be strategic and motivated, and in the right circumstances, could provide the best option for a possible business sale.
to a corporation, private equity group, or management, or passing the company to the next generation, it’s critical to formalize your objectives and implement any appropriate changes to minimize transition the business. For example, C-corporations impose certain disadvantages upon the sale of a business holders’ net proceeds, but a conversion to an S-corporation could levy a long waiting period before fully exhausting certain disadvantages of a C-corporation sale. Likewise, certain buyers might or employment agreements in place with certain employees, which is more challenging to execute during an M&A transaction compared to having a standard employment policy. Both examples considered, understanding your objectives, available options and any limitations is important well before any succession might take place. This article addresses only a few of the reasons it’s important to stay informed of the M&A market and current topics, even if you’re not considering a sale or acquisition. Whether considering building a better business, exploiting current M&A market dynamics, leveraging unsolicited buyers to achieve your objectives, or preparing for a long-term succession, an understanding of the M&A market and underlying principles can contribute to the success of business ownership.
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toolmaker@TDMAW.org
17
SPONSORS
PARTNERS
ApTex Waukesha Industrial Peter Delany ~ (262) 970-4833 ~ www.aptex.biz
Bank—Equipment Loans US Bank ~ Charles Starck ~ (920) 791-9089 ~ www.usbank.com
Bell-Well Sales Co. Tom Schoenecker ~ (262) 781-3670 ~ www.bellwellsales.com Busch Precision, Inc. Micheal Mallwitz ~ (414) 362-7305 ~ www.buschprecision.com
Gary Swick ~ (414) 257-9266 ~ www.swicktech.com
-0717 ~ www.cintool.com
- Waukesha Ronald Abts ~ (262) 896-
John Schmitz ~ (262) 548Dee Jensen ~ 262-373-
- Germantown -4990 ~ www.klhindustries.com
-6100 ~ www.dickmanrealestate.com Federated Insurance -
-1878 ~ www.thermtech.net Insurance— Federated Insurance
-691Kit Krabel ~ (920) 426-
Steel Supplier Alro Specialty Metals - Wauwatosa Inside Sales ~ (800) 365-4140 ~ www.alro.com
-
Supplies/Full Line E.L Simeth - Milwaukee
Bob Stollenwerk ~ (414) 254-
-9270 ~ www.elsimeth.com -9000 ~ www.haucpa.com
- Pewaukee Sales ~ (262) 703-
Sales ~ (920) 783-Point LLC Mich Kealey ~ (414) 456-
-point.com
Midwest Forman Metal Co. Marty Forman ~ (414) 351-
- Sussex Sales ~ (262) 251-4020 ~ www.sussextool.com Visionworks
Morris Midwest -0450 ~ www.morrismidwest.com
Community Directory:
PNC Bank Lyndsay Zwirlein ~(262) 955-5168 ~ www.pncbank.com
Erin Gudeyonn ~ (262) 391-1028 ~ www.wi-
John Gennrich ~ (414) 577Corey Vanderpoel ~ (414) 465-5607 ~ (262) 695ShopWare, Inc. -4350 ~ www.shopwareinc.com Sikich LLP Cheryl Aschenbrener ~ (262) 754-9400 ~ www.sikich.com Town Bank Keith Baisden ~ (262) 432-6256 ~ www.townbank.us United Milwaukee Scrap Susan Paprcka ~ (414) 449-4410 ~ www.umswi.com Weller Machinery Mike Weller ~ (262) 523-1800 ~ www.wellerusa.com -
Eric Decker ~ (262) 695(414) 577Dorothy Walker ~ (414) 297Marcia Arndt ~ (262) 335SkillsUSA - Laura Domer ~ (262) 698-
-
Michael Shiels ~ (262) 691-5345
-8041 18 | TDMAW HQ 262-532-2440
www.TDMAW.org
Thank You to our 2013 TDMAW Members Together we are growing and strengthening manufacturing in Wisconsin A.C. Tool & Machine Co., Inc. 3-D Solutions Inc. A.J. Tool Company, Inc. AAA Grinding Service, Inc. Accu Stamping & Mfg., Inc. Accu Tool & Die Accurate Die Design Inc. Ace Precision Machining Corp. Advance Die Casting Co. Advanced Mold / EDM Supplies, Inc. Albert Tool & Die Co., Inc. Alliance Manufacturing Group LLC Allis Tool & Machine Corp. Amera Gear Company, Inc. Amtech Tool & Die Corporation A-Plus Machine Products Automated Manufacturing, Inc. Aztalan Engineering Behr Enterprises LLC Behrens Tool & Die Inc. BesTech Tool Corp. Brenner Industries Busch Precision, Inc. CDM Tool & Mfg. Company, Inc. Cal-X, Inc. Central Machine, Inc. Church Metal Spinning Class Tool and Die, Inc. Cole Manufacturing Corp. Columbia Grinding, Inc. Custom Production Grinding, Inc. Custom Tool & Engineering, sub of KMC Stamping Custom Tool Service, Inc. D & H Industries, Inc. DMG Design Daco Precision-Tool Deluxe Plastics DEW Tool Grinding Service Du-Well Grinding Enterprises, Inc. Eagle Grinding & Plating Inc. eTek Tool & Manufacturing Excel Tool & Fabrication Inc. Exeter Machine Company, Inc. Final Cut G & H Jig Grinding, Inc. Gruber Tool & Die Heckel Tool & Mfg. Corp. Hencke Tool & Die, Inc. Herdeman Corporation Howard G. Hinz Company
H.T. Machine LLC Hydra-Seal, Inc. Hydraulic Service & Mfg. Inc. Hypneumat, Inc. Innovation Mold & Design, Inc. Integrity Wire EDM Inc. ITR, Inc. J.P. Pattern Inc. Journeymen Tool & Technologies, Inc. K&S Tool & Die Corp. K W Manufacturing LLC Kald Tool & Die Corp. Kelbros Inc. Kettle Moraine Coatings Key Products, Inc. Kinetic Company, Inc. Kivela, Inc. KLH Industries, Inc. KLM Machining, Inc. Laser Finishing, Inc. Lenard Tool & Machine Inc. Machine & Thread Company Machining Concepts Inc. Mahuta Tool Corp. Mantz Automation Master Jig Grinding Specialists, Inc. Matenaer Corporation Mat-Tech, Inc. Matzel Manufacturing, Inc. Maurer Tool MD Design & Automation, Inc. Mechtrix Corporation Metalcraft Tool & Die Metalcut Products, Inc. Micrometric Machine Corporation Midwest Cutting Tool, Inc. Midwest Grinding Co., Inc. Ê µÕ « i Ì]Ê V° Milwaukee Deburring, Inc. Milwaukee Fabricators, Inc. Miro Tool & Mfg., Inc. Muthig Industries, Inc. Mutual Machine Company, Inc. Myshock Tool & Die Nitschke Mold & Manufacturing Corp. Norlen, Inc. Nor-Quist Tool & Die, Inc. Oldenburg Metal Tech Omega Tool, Inc. Pinewood Tool Power Test, Inc.
Precision Pattern Co., Inc. Premier Paper Converting Machinery Progressive Tool & Die Corp. Prototype Stampings Quality Stamping & Tube Corporation R.C. Tool, Inc. RAM Tool, Inc. Reich Tool and Design, Inc. Retlaw Industries, Inc. Riverstone Machining, LLC Schaefer Tool & Mfg. Co., Inc. Schroeder’s Tool Welding Select Machining Corporation Service Tool & Die Two, Inc. Sharpe Fabrications, Inc. Singer Tool & Die, Inc. Snow Tool & Machine Southwest Metal Finishing Stanek Tool Corporation Strohwig Industries Suburban Tool & Machine Inc. Superior Die Set Corp. Symmetry Mold Design LLC T & L Grinding Corporation Tape Machining Corp. Techni-Turn Inc. Thomas D. Neary, Inc. Three R Machine Products, Inc. TKS Innovation, LLC Toolcraft Co., Inc. Toolrite Manufacturing Co., Inc. Tools, Inc. Triangle Tool Corporation Tru-Position, Inc. Ulness Machining Innovations Ultratech Tool & Design, Inc. Ultra Tool & Manufacturing, Inc. Universal Die & Stampings Versevo Inc. Victory Tool Company, Inc. W. Haut Specialty Co., Inc. W-Steel W/S Machine Tool, Inc. Wagner Companies, The Waukesha Metal Products Willer Tool Corp. Wire Specialists, Inc. Wisconsin Engraving Company, Inc. Wisconsin Metal Parts, Inc. Zeman Tool & Mfg. Co. Inc., R J
The TDMAW Membership Committee’s goal is to bring 25 new member companies on board in 2014. We need your help! Personal invitations have been shown to be most effective recruitment tool. If you know of a company that is a privately held, Wisconsin- based manufacturing company, and they are not already members of our great association, please invite them to consider joining the TDMAW. Prospective members are invited to attend one meeting as TDMAW’s guest, contact TDMAW HQ for additional information.
toolmaker@TDMAW.org
19
W175 N11117 Stonewood Drive Suite 204 Germantown, WI 53022
RegisteR today! Four Steps to Supercharge Your Online Marketing deeatra Kajfosz, owner of Nalani services, inc., tdMaW sponsor
Breakfast Meeting at swick technologies, tdMaW sponsor tuesday, January 28, 2014 8:00 a.m. to 9:30 a.m. See inside page for full details This program will be geared towards company Owners and Marketing Directors. Invited to attend are: TDMAW members and employees, TDMAW Sponsors, TDMAW Partners, Local Trade Associations (AFS, NADCA, NTMA, AMBA, PMA), and community partners. Printed by American Print Quik, Menomonee Falls www.APQprinting.com