Issuu on Google+

THIS ISSUE: An Invitation / Budget Deal Reached / Multi-Dimensional Leadership / OSHA 1910.1200

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The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas

PrecisionNews TM

TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

WE ARE SHAPING NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

THE FUTURE OF MANUFACTURING Economic uncertainty is now an accepted reality, but industry leaders are not letting it hinder growth

PLUS

MOVING BEYOND THE GREAT RECESSION THE DYNAMIC ISSUE

CLIFTON LARSON ALLEN’S THIRD ANNUAL SURVEY OF U.S. MANUFACTURERS AND DISTRIBUTORS

MILITARY FIXED WING AVIATION OUTLOOK FOR 2014 THE U.S. HAS SEVERAL DEFENSE PROGRAMS IN PRODUCTION AND NEW ONES RAMPING UP


WORKERS

LIABILITY

HEALTH

PROPERTY

AUTO

Workers Comp rates will soar in 2014... Some companies will experience a +37% premium increase.

Employers with high X-MODs (those above 100%) are charged more for their premiums and less likely to be offered any discounts. If the X-MOD is high enough (indicating a history of large losses), the employer might be on the receiving end of additional charges and the rate hike. The majority of employers will see rate hikes from their insurance carriers next year. Some modestly, but many will be more than 20%. A few employers will be lucky – at least for next year. If you have not looked at the NTMA Insurance program, now might be a good time to explore your options. To find out how the new pure premium rate filings and your X-MOD will affect your work comp premiums, call Glenn Van Noy at 760-419-1393.

Percent Change — Pure Premium Rates January 2013 vs. January 2014

40% 35% 30% 25%

(Percent [%] Change)

Will your X-MOD offset Your WC Rate increase? It depends... Employers with a low X-MOD (usually below 100%) will have their premiums reduced by that amount. Also, employers with low X-MODs are usually given additional discounts. However, any additional discounts could be wiped out by the proposed Pure Premium Advisory Rate hike that goes into effect January 1, 2014.

20% 15% 10% 5% 0% -5% -10% -15%

100

200

300

400

500

-20% -25% (Number of Class Codes)

The above chart shows the increase, or decrease, in the filed pure premium rates for all 494 class codes. The chart shows many class codes with a decline up to -20%. It also shows the number of class codes that will increase – up to +37%. To read more about the Pure Premium Rate increase, go to MachiningSurvivalNews.blogspot.com.

Champion Risk & Insurance Services, L.P. is a proud supporter of the NTMA San Diego and the San Francisco Bay Area Chapters. We provide the NTMA Metalworkers’ Program, a group of competitively priced, specialty coverages that are essential to precision machining operations. This program is not offered by generalist brokers. Contact Glenn VanNoy at 760-419-1393 or gvannoy@championrisk.net for a no obligation evaluation and consultation. LIC #0H18156

Champion Risk & Insurance Services, L.P. An Affiliate of Wood Gutmann & Bogart Insurance Brokers


JANUARY/FEBRUARY 2014 VOLUME 4 • ISSUE 1

Contents 12

Features

Departments

MOVING BEYOND THE GREAT RECESSION

03 President’s Letter 04 Policy Matters 08 People Power

Economic uncertainty is now an accepted reality, but industry leaders are not letting it hinder growth, according to CliftonLarsonAllen’s third annual survey of U.S. manufacturers and distributors.

16

MILITARY FIXED WING AVIATION OUTLOOK FOR 2014

21 NTMA Initiatives 22 Websites that Work 22 Arizona Chapter Info 28 San Diego Chapter Info 29 NTMA Membership 30 North Texas Chapter Info

With a defense budget that amounts to roughly 50% of the world defense budget, the US has several programs in production and new ones ramping up.

32 Shop Floor

OUR MISSION:

“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas EXECUTIVE DIRECTOR & EDITOR Chris Mignella

PrecisionNews

TM

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CONTRIBUTING WRITERS Jamie Beauvais, Sergio Cecutta, Rick Hansen, David Lair, Margaret Jacoby, Omar S. Nashashibi, Erik Skie, Ted Szaniawski ADVISORY BOARD Chris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser EDITORIAL, ADVERTISING & ADDRESS CHANGES Chris Mignella, Executive Director & Editor Phone: 602.388.5752 Email: ExecutiveDirector@arizonatooling.org

Precision News is published bi-monthly by the Arizona Tooling & Machining Association (ATMA). Opinions expressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes no liability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from ATMA is prohibited. Precision News is the registered trade name of this publication. Copyright ©2014 by ATMA. All rights reserved.

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Consolidated Resources, Inc. Industrial Recycling Specialists

• Aluminum • Nickel • Stainless Steel • Copper • Brass • Titanium • Aerospace Alloys

• Glass • Wood • Plastic ATMA M EMBE R • Paper • Cardboard • Certified Material Destruction • All Ferrous Grades

20th

Anniversary

Call Kerry 623.931.5009

kerry@consolidatedresources.com

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Consolidated Resources Inc. 4849 West Missouri Glendale, AZ 85301 Office: 623.931.5009 Fax: 623.931.5852 www.consolidatedresources.com


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First Word PRESIDENT’S LETTER

An Invitation Happy Holidays and Happy New Year. It is a pleasure and an honor to address all of you. Let me begin my first letter as your President Elect by thanking our former President and friend Dante Fierros for his two years of service as your President. Dante worked very hard to bring value to the ATMA family and made incredible contributions toward improving our industry. But his work is far from done and we will continue to work with him, the Board, and you to build on the successes we’ve had over the last two years. And what successes! We have witnessed an increased enthusiasm and optimism within our industry. We have begun important partnerships with our friends at the Arizona Commerce Authority, Cox Communications, and the Edge Factor. We’ve participated in the founding of the Arizona Manufacturing Partnership (AMP) which continues to work on strides toward strengthening our work force. Cox Communications and Edge Factor are preparing terrific programs . to bring the news to . .. ..our young people about the exciting and rewarding career they can have in our manufacturing industry. We’ve participated and hosted the inaugural Southwest Regional Conference this past summer which was a huge success bringing members from the entire southwest together for an information packed agenda of networking and informative roundtable sessions. Do you want to share a part in these and other opportunities within our industry? May I offer you a suggestion? Why not join our association? Or if you are already a part of us – get involved and make a difference. Our association is made up of “volunteer” participants – shop owners and managers. Some of us have been members for decades. The question I ask myself each year at annual renewal time is – Why? Why does my company, year after year, continue to pay the dues to this association? Why do I attend the regular meetings? Why do I travel to attend our national conventions? Why do I serve on our Board of Directors? The answer to these questions is the same – I believe in our industry! What does that mean exactly? To me it means as a manufacturing company we belong to the business sector of our country that is a corner stone of its greatness. It was manufacturing at the center of the industrial revolution. It was manufacturing which catapulted America to the top of the world’s economies. It was manufacturing which supported our military each time the world rose to defeat the evils threatening humankind. It IS manufacturing that IS leading the current economic recovery. The question then becomes – Why wouldn’t we continue to be members? Why wouldn’t we participate in the association? Manufacturing is a collective of a variety of companies provided expertise, creativity, consistency in performance, employment, and stability in our country. We all share in our collective success. None of us does it all. Each of us has our strengths. Each of us can share with others. Collectively we have a huge voice that reaches to the halls of our legislators. Why wouldn’t we want to participate? So, Why Not You? I am extending my personal invitation to each of you to join with me and your fellow manufacturers in our collective efforts to strengthen our industry together. Your volunteer participation is what makes our association the beacon it should be to our communities, our state, and our country. Thank you, I hope to meet you at our next event. Warm Regards, DAVID LAIR Vice President, Dynamic Machine & Fabrication Corp. and President, ATMA

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Policy Matters BECOME A VOICE FOR CHANGE

Two-Year Budget

Deal Reached by OMAR S. NASHASHIBI

In December, lawmakers in Washington, D.C. reached a two-year agreement to avoid another government shutdown. The deal, crafted by the two Budget Committee Chairs, Senator Patty Murray (D-WA) and Rep. Paul Ryan (R-WI), sets a $1.012 trillion spending level for fiscal year 2014, which began October 1 and $1.014 in FY2015. This a compromise between the $967 billion advocated by Republicans in the House and the $1.058 trillion sought by Senate Democrats. The agreement results in a net deficit reduction of $22 billion over 10 years by offsetting the $63 billion in new spending with $85 billion in savings. The relief from sequestration is evenly divided between defense spending and non-defense discretionary spending and replaces about half of the sequester cuts in 2014 and about a quarter in 2015.

Republican and Democratic leaders in both the House and the Senate breathed a sigh of relief when the twenty-nine lawmakers on the bipartisan Congressional Budget Conference Committee reached an agreement. Following the 17-day government shutdown, Congress passed a bill temporarily restoring government operations but gave themselves until December 13 to propose a solution. This became one of the only bipartisan actions on Capitol Hill in all of 2013. However, it fell far short of the grand bargain once envisioned possible by President Obama and Speaker Boehner in 2011. Rather, members of both parties focused on addressing sequestration and providing relief for some defense and domestic spending programs. Republicans voiced concerns regarding the additional $21 billion in Pentagon budget cuts coming on

fyi: Insiders still see a difficult pathway to achieving the larger reforms needed; whether those sought by fiscal conservatives or social liberals. +

Photo: NTMA

04

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January 15, while Democrats sought to restore funding for some domestic programs. Neither party spent much time discussing the real issues facing the federal government – reforming entitlement programs, defense spending, and the tax code. While falling short of addressing the toughest challenges, the Budget agreement does reduce the deficit. Rather than formally increasing taxes to generate new revenues, the budget agreement institutes new “user fees.” Examples include, charging new airline fees to pay for airport security operations, the extension of customs user fees by the Bureau of Customs and Border Protection and allowing the Natural Resources Conservation Service to charge a fee for assistance in developing conservation plans. continued on page 06


Arizona Quality Alliance is pleased to announce we are now:

SOUTHWEST ALLIANCE for EXCELLENCE Empowering Organizations to Improve Results

Ask us about our Baldrige-based Performance Excellence Program to drive improvement in your organization. Our new web address is: www.swae.org Questions? Contact: Karen Shepard, Executive Director at kshepard@swae.org phone: (480) 874-5815 | fax: (602) 343-8330

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Swiss Turning Micro-Machining Honeycomb Seals Tube Bending High Speed Stamping Sand Casting Investment Casting Molded Rubber Plastic Injection Molding Rapid Prototyping Balancing Electromechanical Assembly Clean Room Assembly Wire Harness Production MIG/TIG Welding Resistance Welding Hydrogen Brazing Vacuum Brazing Laser Welding

Electron Beam Welding Heat Treating Vacuum Heat Treat Nitriding Shot Peening Cryogenic Processing Plasma Spray Coating HVOF Coating Diffused Aluminide Coating Electroless Nickel Plating Hard Chrome Plating Cadmium Plating Silver Plating Copper Plating Anodizing Phosphating Black Oxide Dri-Lube Painting

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Contact the Arizona Tooling and Machining Association and discover how you can put your unique skill-set to work in Arizona and give your company the Competive Edge.

ATMA

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

PRECISION

executivedirector@arizonatooling.org

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Policy Matters

Two-Year Budget Deal Reached continued from page 04

In a key concession for some Democrats, federal workers hired after December 31, 2013 will have to increase their employee contributions to their retirement programs by 1.3 percentage points. The package also trims the cost-of-living adjustments to the pensions of military retirees under the age of 62, another way they achieved spending cuts. Several outside conservative groups opposed the deal before it was even released based on reports they saw. Some progressive Democrats also expressed displeasure because the agreement does not include extending expiring unemployment benefits. However, the desire of most in Congress to avoid another government shutdown prevailed over all other concerns. The question now is; what next? Congress kicked the can down the road again, this time for 21 months. If there is a silver lining, it is that two very different Budget Chairmen

could come together and put their significant differences aside. Senate Budget Chair Murray is considered a fairly liberal Democrat who wanted to close tax loopholes and increase spending on social programs. House Budget Chair Ryan ran as Mitt Romney’s Vice President on the 2012 Republican ticket and is a generally regarded as a pro-life conservative who is trying to reform Medicare and other entitlement programs. Insiders still see a difficult pathway to achieving the larger reforms needed; whether those sought by fiscal conservatives or social liberals. Despite progress made inside the Budget Conference Committee, the relationship between Republicans and Democrats is still mired in distrust.

begin voting in the primaries. This places deficit reduction front and center once gain as Congress avoids a government shutdown on October 1, 2015. That is, unless, Washington tries again for a grand bargain agreement; but we all know how that turned out.

OMAR NASHASHIBI is a founding partner at The Franklin Partnership, LLP, a bi-partisan government relations firm retained by the National Tooling and Machining Association in Washington, D.C. Learn more at: www.franklinpartnership.com

The roughly two-year agreement reached expires just months before Republicans

NTMA SOUTHWEST REGIONAL CONFERENCE DALLAS, AUGUST 1-3, 2014

!$1 Save the date and join us for our 2nd annual regional conference! We’ll be heading to Dallas for some Texas-sized networking and breakout sessions to assist you in growing your business. Conference will be held at the Dallas Fort Worth Airport Marriot 8440 Freeport Parkway Irving, Texas 75063 Conference presented by the North Texas, Arizona, San Diego, Rocky Mountain, and Northern Utah Chapters of the NTMA. Registration Information will be coming soon!

!$1 06

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SUMMON S

t District Cour ict Judicial Distr

State

567890 mber: 1234 Court File Nu Negligence Case Type:

County

Employee,

Plaintiff,

Summons

vs.

any, Your Comp

Defendant.

SS OWNER. THE BUSINE in the RECTED TO DI was harassed IS S ON eged that she ese THIS SUMM not throw th aintiff has all Pl Do e s. Th on . m sum gh it SUED it even thou E BEING ached to this su att AR is law U u is yo th YO st to 1. d t again summons. u must respon is Yo f's Complain th tif s. on ht ain r Pl rig be m e. e nu workplac at affect your be no court fil . You ial papers th and there may UR RIGHTS They are offic th the Court OTECT YO swer wi An PR ed fil an TO d be t lle YS se ca 20 DA may not ye of itten respon py wr Y WITHIN co a a PL s on nd RE m se T must this sum 2. YOU MUS mmons. You who signed to the person ceived this Su re ail u m yo or ich ve on wh must gi ted at: of the date mmons loca ** days has d this su thin 20size, o signewith Every employer, no matter wi what deal human resource issues, n wh e persoto th to er _. sw en response your An ________ is your writt __________ your local marketing regulations, and employment law__changes. ______Contact . The Answer sagree with M di AI or CL e __ ______ re CH ether you ag OND TO EA unlimited te wh SP everything sta n t RE representative to learn how you 3.can gain complimentary, access to us ve T m gi US u t be er yo YOU M tiff should no In your Answ ain t. Pl ain e pl th m ve u belie independent employment law Plaintiff's Cowho mprovide to theattorneys er. legal advice plaint. If yostate-specific in your Answ h of the Co ch paragrap u must say so A WRITTEN yo t, on your employment-relatedeaquestions. ain pl m NOT SEND the Co IS asked for in GNED TH IF YOU DO SI SE O H CA W PERSON Visit www.federatedinsurance.com YO toUfind near ll not get to LOSE YOUR Eyou. wi L representative TH u ILa Yo W . TO se ca NT f 4. will lose this COMPLAI d the Plaintif TO THE 20 days, you u and awar within )HGHUDWHG0XWXDO,QVXUDQFH&RPSDQ\‡)HGHUDWHG6HUYLFH,QVXUDQFH&RPSDQ\ ‡)HGHUDWHG/LIH,QVXUDQFH&RPSDQ\ RESPONSE ted in the e against yo not Answer sta cid s de do im u ay cla yo m e If t . Cour ntest th r 2ZDWRQQD0LQQHVRWD‡3KRQH  ‡ZZZIHGHUDWHGLQVXUDQFHFRP SUMMONS ry, and the ainst you fo t want to co e of the sto If you do no be entered ag *Not licensed in the states of NH, NJ, RI, and VT. ‹)HGHUDWHG0XWXDO,QVXUDQFH&RPSDQ\ tell your sid e complaint. ment can then th dg in ju t r ul fo fa d ke A de everything as to respond. do not need

Who’s Keeping You Out of Court?

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People Power YOUR MOST VALUABLE RESOURCE

MULTI-GENERATIONAL WORKFORCE NEEDS MULTIDIMENSIONAL HR PRACTICES by MARGARET JACOBY, SPHR

You are probably aware that there are at least 4 generations in today’s workforce at any one time: Traditionalists

Baby Boomers

Generation “X”

Generation “Y” (Millennials)

Do employees understand how work is done differently in different generations? Each generation has a different way they accept managing from their supervisors. For example, the Traditionalists like to be addressed in respectful professional tones with good grammar and no slang. While Generation “X” doesn’t want the manager to waste their time – they want an email or voicemail that is direct. These differences make the workplace challenging. If you are striving to recruit the best and brightest, it is important to include mature workers in the mix. It is also critical to examine your human resources practices to see if they support these generational differences. The right mix of policies and practices is key to a productive and engaged workforce. Some “best practices” to consider: • Facilitate regular conversations about generational differences • Create a workplace culture where employee opinions are sought and valued • Reward managers for retaining the people who report to them • Offer opportunities for horizontal movement in the company • Publicize career opportunities internally • Offer mentoring opportunities for seamless knowledge transfer When considering benefits: • Offer flexible work options when possible • Offer benefits suited to an employee’s state of life • Reward performance and productivity • Offer continuous learning and tuition reimbursement • Offer mentoring opportunities One last thought – what will your workforce look like five years from now? Nationally, Gen “X” will probably remain the same; Gen “Y” will increase; some Baby Boomers will have left along with the Traditionalists. What strategic capabilities are needed from your employees? Are there generational gaps that could be addressed by training, recruiting or retention? How are your preparing for this change?

MARGARET JACOBY is the president of MJ Management Solutions, Inc. She can be reached at margaret@mjms.net Learn more at: www.mjms.net

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Becoming a MultiDimensional Leader for Increased Leadership Effectiveness Significant research indicates that the most effective leaders use a collection of distinct leadership styles, each in the right measure. In the classic book Good to Great, Jim Collins devotes a chapter to what he calls Level 5 Leadership. He states, in part, that the need for diversity of leadership behaviors is simply too often overlooked and that their research clearly showed Level 5 Leadership was a consistent differentiator of “great” companies. Also, several books have been written in the last three years with a common thread of “quiet leadership” which challenges the outdated maxim that in order to be effective leaders must be dynamic, commanding, and hard charging. Several reasons point to why this research, which focuses on multi-dimensional leadership, needs to be considered in today’s organizations. Chief among these has to do with the make-up of today’s workforce. For the first time in history there are four distinct generations of workers: traditionalists, baby boomers, Gen X and Gen Y, often referred to as millennials. The hard charging leadership style that worked to lead tradionalists and baby boomers may prove to be not as effective with Gen X and Gen Y, and these two groups are, and will, become a much bigger slice of the workforce in the years to come. So what different leadership styles are there? In the book The 8 Dimensions of Leadership the authors describe eight distinct styles. Visualize a wheel, start at the top and going around the wheel the leadership styles are: Commanding, Pioneering, Energizing, Affirming, Inclusive, Humble, Deliberate and Resolute. Each of these styles is described in detail as to their characteristics, qualities, strengths, and potential weaknesses. Each of us has a core leadership style but we should also be aware of the other styles and put them into action when the situation or audience dictates. Granted, such flexibility is tough to put into action, but it can pay off in terms of better performance and improved results. Better yet, this is something that can be learned. Should you become a multi-dimensional leader? Or perhaps the better question to ask is do you want to be a good leader or a great leader? TED SZANIAWSKI Principal, HRGroup, LLC Contact by email at: ted@hrgrouponline.com Learn more at: www.hrgrouponline.com

PHOENIX METAL TRADING, INC.

Industrial Scrap Specialists OUR MISSION: Our mission at Phoenix Metal Trading is to provide the best service at a fair price and to continually improve our company to be a leader in our industry.

EPA and ADEQ Environmental Compliance We Purchase All Types of Scrap:

Copper Brass Aluminum Steel Stainless Steel

Titanium Plastic Cardboard Nickel and Cobalt Alloys

State of the Art Fleet and Plant Equipment Never a charge for pickup

602-257-4660 www.phxmtl.com SCRAP METAL RECYCLING SINCE 1989 • ATMA MEMBER

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Education Update KEEPING YOUR ESSENTIAL SKILLS SHARP

Precision Manufacturing Apprenticeship Program

ARIZONA’S PRECISION MANUFACTURING APPRENTICESHIP PROGRAM (AzPMAP)

Manufacture Your Future

A Model for Competing withTalent Few would argue with the notation that companies, regions, and even countries should compete on their ability to innovate and create new products and services that meet the needs the customers effectively and efficiently. To have to compete for the intellectual talent as a primary determinant of success or failure is a lose lose situation for everyone. Recognizing the critical importance of ensuring a more sustainable and predictable supply of skilled and competent employees, the Arizona Tooling and Machining Association (ATMA) has partnered with the Arizona Commerce Authority, the City of Phoenix, Maricopa County, The Maricopa Community Colleges, and the National Tooling and Machining Association in the development of the Arizona Precision Manufacturing Apprenticeship Program (AzPMAP). AzPMAP is a comprehensive workforce development support program, designed and implemented to fill and retain the metalworking and manufacturing skilled workforce pipeline, by upgrading and standardizing regional training sites into world class centers of excellence. The Apprenticeship Program’s goals is to ensure a continual additional supply of very qualified Certified Machinists

and CNC Programmer and Setup Milling and Turning workers. Although the program requires significant commitment on the part of both the apprentice and the sponsoring employers the benefits derived are well documented. There are 20 apprentices in the program working in companies throughout the Greater Phoenix area and attending classes that will lead to certification. The program continues to accept applications from job seeks interested in the aerospace manufacturing industry. For more information, please contact:

AzPMAP www.azpmap.org Applications may be submitted through the website.

Article provided by Rick Hansen with additional comments added by Maxine Jones. Learn more at: www.azpmap.org

fyi: There are currently 600,000 open skilled manufacturing positions in the U.S. today - Deloitte

+ 85 percent of NTMA members expect to have challenges recruiting qualified employees, especially younger workers. - NTMA Photo: NTMA

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Manufacturing in Arizona for over 46 Years Providing precision machining and Industries Served: fabrication of diverse parts and assemblies • Automotive • Aerospace • Medical • Firearms • Dept of Defense • Electronics Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries Our Quality System is conforming to AS9100C and working towards registration by year end 2013 2440 Cades Way, Vista, California 92081 Facility Recently Expanded phone: 760.727.5228 fax: 760.727.0799

Equipment Capacities range up to HR-4R HAAS www.cornerstonecnc.com 4-Axis Horizontal Milling Center @ 150�x 66�x 48� and Ikegai VTL CNC Lathe @ 0/ 55� Diameter

to Over 36,000 Sq. Ft. Centerless Grinding Capacities ranges from 0/ 1/8� up to 0/ 1-1/2� in Lengths up to 14’ long and 0/ 1-1/2� to 0/ 3� RD with Weight Maximum of 50#

Dynamic Machine and Fabrication Corp. and Dynamic Centerless Grinding 3845 E. Winslow Ave., Phoenix, AZ 85040 phone: (602) 437-0339 fax: (602) 437-8947

www.dynamic-machine.com Manufactured with Forward Pride in America! We’re Looking to Meeting and Exceeding Your Expectations!  

 !"# $$%&'  %(

 ($ )$ *

       ELECTROLESS NICKEL - MID AND HIGH PHOS. ELECTROLESS NICKEL - TEFLON BRIGHT NICKEL BLACK OXIDE PASSIVATION CHEMFILM – CLEAR AND YELLOW COPPER PLATING CHROME PLATING 24KT GOLD PLATING GLASSBEADING/ALUMINUM OXIDE ULTRASONIC CLEANING PRE & POST BAKE STRESS RELIEVE NICKEL/CHROME STRIPPING       

   



             

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Feature Story // PrecisionNews

A PrecisionNews SPECIAL REPORT

WE ARE SHAPING

THE FUTURE OF MANUFACTURING Economic uncertainty is now an accepted reality, but industry leaders are not letting it hinder growth, according to CliftonLarsonAllen’s third annual survey of U.S. manufacturers and distributors.

BY ERIK SKIE

12

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“The attitude and mindset of the leaders we surveyed focuses on capturing opportunities instead of dwelling on things that can not be controlled,” says Erik Skie, manufacturing and distribution managing principal with CliftonLarsonAllen. “The industry has moved beyond the Great Recession and is now shaping its own future.” Manufacturing and Distribution Outlook 2013 is a composite of opinions from hundreds of CLA clients and nonclients across the country. Seventy-five percent of respondents were privately held and family ownership businesses, 27 percent were one owner organizations, and 54 percent had two to five owners. Focusing on The Value Triangle This year’s survey centers on key areas that are essential for healthy and sustainable manufacturing and distribution organizations. We call it The Value Triangle, and it includes four dimensions: financial, growth, execution, and leadership. Excellence in any of these areas can create bursts of short-term success. However, consistent attention to all four creates high performance organizations that can compete in the global marketplace. The observations received from industry leaders related to these four areas. While many parts of our economy are nowhere near pre-recession levels of performance, approximately 70 percent of respondents say they are at or above pre-recession levels of profitability. The fact that U.S. manufacturers and distributors have navigated the turbulence of the past four years and returned to 2007 profitability levels is both significant and encouraging. • Overall, respondents indicate that working capital requirements (including inventory) and availability of credit have not been deterrents to growth over the past two years. • Cash flow challenges at the largest original equipment manufacturers (OEMs) have translated into extended payment terms for some suppliers. About 40 percent of respondents said the average age of accounts receivable has increased, while an almost equal number said account aging had stayed the same. Exports account for half of overall U.S. economic growth since the end of the Great Recession, so we asked about export strategies. • More than 63 percent of respondents said they are currently exporting, while approximately 27 percent said they have not exported and do not plan to start in the next two years. Three percent said they plan to begin export activities in the next two years. • While much is made of the challenges of global competition, respondents do not see a meaningful difference between what it takes to compete domestically and abroad. High quality products, flexibility to meet customer needs, and customer service continue to be the attributes most mentioned by respondents as their keys to success. continued on page 14

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The innovation and resiliency that has been demonstrated by the owners and leaders of manufacturing and distribution companies is truly inspiring.

Feature Story // PrecisionNews

WE ARE SHAPING

THE FUTURE OF MANUFACTURING

continued from page 13

Another issue that impacts long-term growth and sustainability is the management of revenue concentrations. • The majority of respondents said they have an industry concentration that accounts for more than 50 percent of their revenue base. They clearly indicated that revenue concentrations are a risk that must be mitigated, but they also said concentrations often continue even as the geographic reach of a company becomes global. The survey showed that continuous improvement is alive and well in manufacturing. For most companies, it has become a way of life. • Sixty percent of respondents indicated that their continuous improvement efforts target market pressures like costs, quality, and ontime delivery; 19 percent aim to increase capacity; and just 7 percent said they are targeting inventory reduction. • Roughly 70 percent said they are at or above pre-recession profit levels, but almost as many respondents (67 percent) feel they still have excess capacity. • A shortage of skilled workers is an issue for more than half of survey respondents. Most say they are implementing workforce training, lean manufacturing, and automation to counter this trend. Many in the Baby Boom generation are reaching an age where they are planning for the next phase of their lives. Since small to mid-sized manufacturing ownership is dominated by Baby Boomers, it would be safe to assume that many leadership changes are on the horizon. • Thirty-five percent said they are expecting an ownership transition in the next five years. • When asked about the importance of this transition, 70 percent said that it is “somewhat important” or “very important.” • There appears to be a correlation between the timing of future leadership transitions and the timing of expected ownership transitions.

Looking ahead A year ago, manufacturing and distribution leaders were reporting that economic uncertainty, rising health care costs, and rising production costs were foremost on their minds. Though not as strong as last year, uncertainty remains a top concern in 2013, and will likely become an accepted reality as global economies and governments continue to resolve longer-term structural issues. “The rising concern with finding and retaining skilled workers can be seen as both a positive and a negative,” says Skie. “The need for skilled workers coincides with an expansion in manufacturing, but the inability to fill skilled positions could ultimately hold manufacturers back from their full growth potential.” “An unaddressed leadership void could also become a crisis,” Skie says. “Smaller companies often have questions about succession. Larger companies are worried about the sustainability of their smaller supply chain partners. Many survey respondents see the leadership void coinciding with a potential ownership transition.” The innovation and resiliency that has been demonstrated by the owners and leaders of manufacturing and distribution companies is truly inspiring. While the most recent recession recast the competitive landscape for many industries, manufacturing and distribution have been meeting the challenge for well over a decade and continue to move forward. As we put the Great Recession behind us, the resiliency of American manufacturing continues to show itself as the strongest characteristics of all. Download a complimentary copy of Manufacturing and Distribution Outlook 2013 at www.claconnect.com

ERIK SKIE is a member of the Manufacturing and Distribution group of CliftonLarsonAllen. He can be reached at 888.529.2648. To learn more about CliftonLarsonAllen, visit www.CLAconnect.com.

CliftonLarsonAllen is one of the nation’s top 10 certified public accounting and consulting firms. Structured to provide clients with highly specialized industry insight, the firm delivers assurance, tax and advisory capabilities. CliftonLarsonAllen offers unprecedented emphasis on serving privately held businesses and their owners, as well as nonprofits and governmental entities. The firm has a staff of more than 3,600 professionals, operating from more than 90 offices across the country. For more information about CliftonLarsonAllen, visit their website at: www.CLAconnect.com

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A PrecisionNews MARKET PROFILE

MILITARY FIXED WING AVIATION OUTLOOK FOR 2014 In the last issue we looked at the 2014 forecast for commercial aviation. In this issue we will focus on military fixed wing aviation, touching all the major programs that are in production. In military aviation the US plays the main role. With a defense budget that amounts to roughly 50% of the world defense budget, the US has several programs in production and new ones ramping up. Another interesting manufacturing center of excellence for military aviation is Europe, albeit with smaller number of airframes and programs. We will break this forecast into two parts: fighter jets and multi-role platforms. continued on page 18

BY SERGIO CECUTTA

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MILITARY FIXED WING AVIATION OUTLOOK FOR 2014

continued from page 17

Fighter Jets

Multi-role Platforms

The world has several fourth and fifth generation fighters in production. Europe produces two advanced fourth generation platforms, the Eurofighter, produced by UK, Germany, Italy and Spain and the Rafale, produced by France. The US produces three fourth generation fighters, the F-15, F-16 and F-18 and one fifth generation fighter, the F-35. The first fifth generation fighter, the F-22, ended production on March 14th 2012. A grand total of 178 aircrafts were produced: a strict export restriction and a hefty price tag have always limited the appeal of this extremely capable fifth generation fighter.

There is a limited amount of multi-role platforms being produced in the world, with an overwhelming majority rolling out of assembly lines in the US. The four major platforms in production in the US are the C-17A, the C-130J, the P-8A and the upcoming KC-46A. The European industry will have their hands full with the ramp up of the new airlifter, the A400M. Boeing has delivered 256 C-17A to air forces around the world, with the US Air Force operating the lion share at 222 aircrafts. However the end of production for this platform is approaching, with a forecast line shut down in 2015. Boeing has 22 aircrafts left to produced and 2014 will see a reduction of the workforce assigned to the production line.

The Boeing F-15 is being produced in small numbers at the St. Louis facilities. Currently the company is working on an order for 84 jets from Saudi Arabia and it is confident it can keep the production lines going through the next years with additional foreign orders and upgrades to the US fighters. The Lockheed Martin F-16 is the workhorse of many air forces worldwide. The 2014 production is going to maintain the 2013 levels with one aircraft assembled each month. Currently the company is working on an order from Egypt for 20 platforms. While the current order book will run out in the third quarter of 2017, Lockheed Martin is confident that additional orders and upgrades from the Middle East and South America will keep the line humming till 2020. The Boeing F-18 is reaching the end of its production run as well. The last purchased EA-18 Growlers are expected to be produced by the end of 2014 with the final deliveries of the combined F-18 and EA-18 to be completed by 2016. The forecasted 2014 production rate will be of 24 airframes. Boeing expects additional US Navy and foreign air force orders to add another 250 to 400 aircrafts in the coming years. The bright spot in the fighter arena for 2014 is going to be the F-35. The ramp up in production will see the number of platforms produced increase year after year, barring any cost overruns punished by Congress. The forecasted production rate for the next several years will be 29 aircrafts produced by October 2014, 42 aircrafts produced by October 2015, 62 aircrafts produced by October 2016, 76 aircrafts produced by October 2017 and 100 aircrafts produced by October 2018. The production rate could increase in the coming years because of additional foreign orders. The F-35 is bound to repeat the success of the F-16, albeit on a slightly smaller scale due to its higher price. On the European front, the Eurofighter production is down to less than 40 platforms per year from 50. The export units to Oman and Saudi Arabia are currently being produced. The French Rafale production is currently at 11 platforms per year but the French government is planning to order just 26 aircrafts in the 2014 – 2019 timeframe. The upcoming order for 126 aircrafts from India, to be signed by March 2014, could see the current production rate remain constant in the next years. The manufacturers of both platforms will be pressured in 2014 to find new export customers to keep their lines open.

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While one program ends, another one ramps up at Boeing. The maritime patroller P-8A Poseidon has reached in 2013 the 13th delivery, on its way to the Initial Operating Capability (IOC) in 2016. It is the first new maritime patroller in 50 years, replacing with aging P-3 Orions, and it is built on the base of the commercial Boeing 737NG platform with the stronger wing of the 737-900. With a stated need for 117 platforms, the US Navy has an outstanding order for 68 aircrafts. The platform, in its P-8I export version, has also seen Australia and India sign up as foreign customers. Boeing predicts that the 2014 production will be around one P-8A and one P-8I per month. Boeing has one more platform in its stable that is coming into production, the tanker KC-46A. After several false starts, Boeing is working on a Low Rate Initial Production (LRIP) contract for the US Air Force with a start in 2015. The Boeing 767 derivative is being prepared for a first flight in 2014, with two airframes supporting testing. While 2014 production will be very low, Boeing plans to produce 15 platforms a year by 2017. By 2017 there will be 18 aircrafts in service out of a contracted number of 179. At Lockheed Martin, the C-130 continues to be produced in its latest J version. With 430 active aircrafts in the US inventory, Lockheed Martin plan to produce a new batch of 79 airframes in the 2014 – 2018 timeframe. The line is forecasted to operate at 24 aircrafts per year, including export customers, down from a peak of 36 per year in 2011. Finally, we are going to close by taking a look at the Airbus A400M. With 174 outstanding orders and only two aircrafts delivered as of October 2013, Airbus forecasts a peak production rate of 2.5 airframes per month starting in 2015. 2014 will be a transition year for the A400M production line, with 10 expected deliveries, ramping up for the full production schedule the following year. SERGIO CECUTTA is a former Honeywell and Danaher executive and the founding partner at SMG Consulting LLC, a business consulting firm specializing in serving the strategy, business development, marketing and finance needs of companies in Aerospace, Defense, Medical Devices, Clean Tech, Energy and SW Services. Learn more at: www.smg-consulting.com


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phoenixcustomlasering.com • info@phoenixlasering.com (New Regular Members)

NTMA UPCOMING EVENTS NTMA Team Leaders Meeting & Chapter Leadership Summit Tampa, FL January 16-17th, 2014 2014 The MFG Meeting Arizona Biltmore, Phoenix, AZ March 5-8, 2014 Hannover Messe Trade Show Hannover, Germany April 7-11, 2014 National Robotics League Competition Baldwin Wallace College, Cleveland May 16-17, 2014

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ATMA EVENTS in JAN/FEB 2014 January Membership/Mktng & Program Mtng > 1/09 @ 4:00pm (Doubletree Hilton/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 1/14 @ 4:00pm (MicroTronics) NTMA Chapter Leadership Summit > 1/16-17 Dinner MEETING > 1/29 @ 5:00-8:00pm (Airport Hilton)

February

MAKE YOUR VOICE HEARD ON CAPITOL HILL!

Precision News Articles/Ads Due > 2/03 Safety Team Meeting > 2/11 @ 11:30am - 1:00pm (MicroTronics) Membership/Mktng & Program Mtng > 2/13 @ 4:00pm (Doubletree Hilton/Raintree Room) @ 4:00pm - 5:30pm Board of Directors Mtng > 2/18 @ 4:00pm (MicroTronics) Roundtable MEETING > 2/26 @ 5:00-7:30pm (AirportHilton) For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

For additional information, please visit

www.metalworkingadvocate.org or contact the NTMA at 800.248.6862

Arizona Tooling & Machining Association

ATMA PRECISION january/february 2014

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ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses

Contact Nichols at 480-804-0593 www.nicholsprecision.com

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• Machining Excellence since 1997 • ISO 9001 + AS9100B Certified • Experienced senior machinists • Experts in stainless, aluminum, plastics and exotics • 8A Certified, Viet Nam Vet, Minority Owned Small Business • Eager to provide you with quality performance and quick responses

Contact Nichols at 480-804-0593 www.nicholsprecision.com

ONE STOP SHOP

Are you looking for? ELECTROLESS NICKEL BRIGHT NICKEL PASSIVATION CHEM FILM - CLEAR OR YELLOW COPPER or CHROME PLATING POWDERCOATING POLISHING GLASSBEADING VIBRATORY DEBURRING or FINISHING ULTRASONIC CLEANING PRE & POST BAKE STRESS RELIEVE PAINT/NICKEL/CHROME STRIPPING Pick up and delivery upon request.

L.A. SPECIALTIES, INC. 4223 North 40th Avenue, Phoenix, Arizona 85019

602-269-7612 barry@laspecialties.com • www.laspecialties.com Please feel free to contact us. We will be happy to assist.

www.SunGrindingUSA.com

For All Your Grinding Needs!

We have the largest centerless grinder in the state!

Blanchard - Our 60 inch chuck will cut stock quickly and allows us to grind parts up to 72” diagonally.

Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!

Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated. info@sungrindingusa.com / 522 E. Buckeye Rd. Phoenix, AZ. 85004

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arizonatooling.org27 / 19 PrecisionNews


PrecisionNews // NTMA -SAN DIEGO CHAPTER

MEMBER LISTINGS

SAN DIEGO CHAPTER

2014 BOARD OF DIRECTORS President SEAN TILLETT Alphatec Spine Vice President CLIFF MANZKE Corporate Secretary and Treasurer HEATHER RUSSELL K-Tech Machine Membership MIKE BROWN Computer Integrated Machining Past President TONY MARTINDALE Martindale Manufacturing

BOARD MEMBERS Education Board Member John Riego de Dios Kearny Tec Academy Member at Large Lyle Anderson

REGULAR MEMBERS Sean Tillett

Alphatec Spine

760.494.6774

Darryl Chudomelka

Asigma Corp.

760.966.3103

Peter Neville

B&H Tool Company Inc.

800.272.8878

Alejandra Rogue

BMW Precision

760.966.3103

Lyle Anderson

C&H Machine and EDM Services

760.746.6459

Michael J. Brown

Computer Integrated Mach., Inc.

619.596.9246

Erich Wilms

Diversified Tool & Die

760.598.9100

Donovan Weber

Forecast 3D

760.929.9380

Andrew Allen

Henry Machine, Inc.

760.744.8482

Jim Piel

J I Machine Company, Inc.

858.695.1787

Antonio Dominquez

Johnson Matthey, Inc.

888.904.6727

Heather Russell

K-Tech Machine, Inc.

760.471.9262

John Riego de Dios***

Kearny Tec Academy

858.496.8370

Frank Harton

L.F. Industries, Inc.

760.438.5711

Cliff Manzke

Manzke Machine, Inc.

760.504.6875

Russell Wells Sr.

MarLee Manufacturing, Inc.

909.390.3222

Linda Kurokawa***

Mira Costa College

760.795.6824

Mark Rottele

Roettele Industries

909.606.8252

Beau Haubruge***

San Pasqual High School

760.291.6000

Robert Kemery

Solar Turbine

619.544.2808

Scott Cormony

Waterjet West, Inc.

760.471.2600

*National Associate Members **Associate Member ***Educational Partner

ASSOCIATE MEMBERS Glenn Van Noy

Member at Large Michael Brown Chapter Executive Tammy Tillett

OUR MISSION “To form an alliance within the San Diego region of the local machining and tool industry and to foster mutual success through education, technology, opportunity sharing and act as one voice with the government and the community.” San Diego - NTMA Chapter 197 Woodland Pkwy.,#104, PMB #148 San Marcos, CA 92069-3020 Phone: 805.558.5830 Email: ExecutiveDirector@ntmasandiegochapter.org www.ntmasandiegochapter.org

Champion Risk and Insurance Services

Founder 800.829.0807 x716 760.916.1741

Steve Doda

Aerotek

Karen Morris Green

IMS Metal Supply

619.977.9486

Greg Mercurio

Shop Floor Automation

619.461.4000

San Diego - NTMA Chapter EVENTS January Member Meeting • 1/22/2014 Old Spaghetti Factory, San Marcos NTMA Benefits February Member Meeting • 2/27/2014 Client of Shop Floor’s Shop Floor Automation March Member Meeting • 3/20/2014 Education Facility Education - Mira Costa April Member Meeting • 4/17/2014 IMS Facility - San Diego IMS - Tec Metal Visit www.ntmasandiegochapter.org for details as they become available.

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PrecisionNews // NTMA MEMBERSHIP

Why join NTMA? To say it simply, the NTMA gets it. We understand your challenges in today’s economy. We recognize that many of you face a talent gap, with necessary skills in short supply. And we know that there’s a gap between the reality of our industry and the public’s perception of it. But even more importantly, NTMA has the resources to do something about these issues. Our educational programs stimulate the talent pipeline. Our resources and roundtables help members share best practices and solve common business problems. And by speaking with one voice, we cut through media-generated perception to communicate reality to policy makers and the public. American ingenuity isn’t dead. It isn’t in decline. It’s alive and well in the custom precision manufacturing industry. NTMA stands for the future. We also stand with your peers. Will you stand with us– and your industry–today? JOIN US TODAY!

BENEFITS OF JOINING Networking You don’t have to go it alone. Membership immediately connects you with peers at the local, regional and national levels—opening up conversations that can lead to new opportunities while helping you discover better ways to operate. Training We offer an arsenal of training programs designed to pick up where American vocational and technical education leaves off, preparing your workers to meet the demands of today’s precision manufacturing environment. These range from informal programs to college-level courses. Discount Programs You don’t have to be a big company to get big-company treatment from suppliers and vendors. Through association membership, you qualify for volume discounts on everything from office supplies to payroll service to shop components—no matter how small your volume may be. Online Resources From job postings to a members-only marketplace, from industry news to archived webinars, NTMA members can take advantage of a number of benefits without ever leaving their keyboards. Market Research Good business begins with good planning. But it’s hard to plan without reliable market intelligence. That’s where our reports come in. We survey the marketplace as well as our members to put useful data in your hands. Initiatives NTMA is constantly moving forward, seeking new ways to help you grow profitably. Our programs include everything from the National Robotics League to a constantly evolving set of benchmarks and best practices.

YOUR NEW TOOL OF THE TRADE. PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISER WANT TO REACH. OUR READERS WANT AN EDGE IN A CONSTANTLY EVOLVING INDUSTRY AND THEY FIND IT IN PRECISION NEWS!

Let your ad be a call to action! Contact Precision News today for more details at: executivedirector@arizonatooling.org

PrecisionNews

TM

VISIT:

NTMA.ORG 800-248-6862

THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

arizonatooling.org

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NORTH TEXAS CHAPTER 2014 BOARD OF DIRECTORS President TODD ELLARD Manda Machine Company Vice President JEFF SPENCER Clay Precision Treasurer BARRON SMITH R.W. Smith Company Chapter Executive LISA ELLARD Trustee JOE O’DELL Plano Machine & Instrument, Inc.

BOARD MEMBERS Mike Berdan BE Technologies Frank Burch Southern Machine Works Bill Walter Ellison Technologies Micah Embrey CNC Precision/Shamrock-Bolt Don Halsey Halsey Manufacturing Ray Jones MWI, Inc. Pat McCurley Midlothian Insurance Karla Chandler Education Liason

NTMA - North Texas Chapter ntc.ntma@gmail.com phone: 214.536.4970 PO Box 541236 Dallas, TX 75354-1236 ntmanorthtexas.org

NTMA-NORTH TEXAS MEETINGS & EVENTS October 2013 Sponsor: Kenney Industries/Mountain View College November 2013 Sponsor: Novacopy January 23, 2014 – Manda Machine Company February 20, 2014 – General Meeting March – No Meeting

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PrecisionNews // NTMA -NORTH TEXAS CHAPTER

MEMBER LISTINGS REGULAR MEMBERS

ASSOCIATE MEMBERS

Vincente Chan

Aeroweld Technologies, Inc.

972.247.1189

Larry Ellison

AJR Metalworks, Inc.

214.352.3766

Mark Hestly

Air & Earth Instrument Company

972.438.2277

Tommy Thompson

Bodic Industries

972.840.1015

Wade Whistler

A.C.T. Precision Sheet Metal, Inc.

214.678.9114

Lewis Lance

Bodycote Heat Treat

817.265.5878

Guy Allen

All Special, Inc.

972.641.0110

Rick Blair

Brook Anco Corporation

585.475.9570

Wayne Applegate

Applegate EDM, Inc.

972.488.8997

Craig van Hamersveld

Campat Machine Tool, Inc.

972.424.4095

Tony Woodall

AST Waterjet

972.554.0383

Claudia Pautz

Castle Metals

972.339.5000

Dan Wiktorski

Axis Machine Works, Inc.

214.390.5710

Norm Williamson

H & O Die Supply, Inc.

214.630.6660

Steve Ingersoll

Bailey Tool & Manufacturing

972.974.8892

Mike Johns

Haas Factory Outlet

972.231.2802

Michael Berdan

BE-Technologies, Ltd.

972.242.1853

Matt Curtis

Hillary Machinery, Inc.

972.578.1515

Christi Cameron

Cameron Machine Shop, Inc.

972.235.8876

Rod Zimmerman

Iscar Metals, Inc.

817.258.3200

Jeff R. Spencer

Clay Precision, Ltd.

903.891.9022

Randy Joyce

Joyce Engraving Company, Inc.

214.638.1262

Joseph Lodor

Commerce Grinding Company, Inc.

214.651.1977

Curtis Dahmen

Kaeser Compressors, Inc.

972.245.9611

Robert McNamara

Davis Machine & Manufacturing

817.261.7362

Mark S. Holly

Machinists Tools & Supplies

214.631.9390

Charles Gilbert

DNS Tool Cutter Grinding, LLC

972.241.5271

Leland McDowell

McDowell Machinery & Supply Co.

214.353.0410

David Ellis

Ellis Tool & Machine, Inc.

903.546.6540

Nicki Smith

MSC Industrial Supply

817.590.2637

Jim Harris

E.W. Johnson Company

972.436.7528

Ray Jones

MWI Inc. / Southwest Division

972.247.3083

Rudy D. Kobus

Expert Tool & Machine, Inc.

972.241.5353

Mike Chadick

North Texas Precision Instrument

817.589.0011

Monte Titus

F& R Machine & Repair, Inc.

214.631.4946

Reed Hunt

Reed Hunt Services, Inc.

817.261.4432

Gary Fore

Fore Machine Company, Inc.

817.834.6251

Scott Devanna

SB Specialty metals

800.365.1168

Mike Lee

Fort Worth Centerless Grinding, Inc.

817.293.6787

Bob Severance

Severance Brothers

972.660.7000

Shevin Goodwin

Goodwin Machineworks

972.242.485

Alan VanHoozer

Top Tooling of Dallas, Inc.

972.278.8300

Larry Borowski

Greenslade and Company, Inc.

817.870.8888

Glenn Wise

Wise Machinery, LLC

817.905.9473

Oscar Guzman

Guzman Manufacturing

972.475.3003

David L. Hodgdon

H. H. Mercer, Inc.

972.289.1911

Don Halsey, Jr.

Halsey Engineering & Mfg., Inc.

940.566.3306

MANY THANKS

Mike Kenney

Kenney Industries

214.421.4175

TO OUR NTMA-NORTH TEXAS SPONSORS:

Denver Knox

Knox Machine Company

817.551.1600

Cory Trosper

K & D Tool & Die, Inc. 1 6/18/11 7:02 AM Page 972.463.4534 ATMA_0202_FINAL_Layout 19

Keith Hutchinson

Lancaster Machine Shop

972.227.2868

Scott Cody

LSC Precision, Inc.

940.482.9700

Sammy Maddox

Maddox Metal Works, Inc.

214.333.2311

Todd Ellard

Manda Machine• Company, MachiningInc. Excellence214.352.5946 since 1997

David Evans

Manek Equipment, Inc.9001 + AS9100B903.439.6414 • ISO Certified

Rodie Woodard

Maximum Industries, Inc. 972.501.9990 • Experienced senior machinists

Woodrow W. Thompson

• Experts in stainless, aluminum, Metal Detail, Inc. 214.330.7757

Allen Meyer Eddie Mills Eddie Steiner, Jr. Morris Padgett Troy Paulus Joe O’Dell

plastics and exotics 972.353.9791 • 8A Certified, Viet Nam Vet, Mills Machine Shop 940.479.2194 Minority Owned Small Business • Eager with quality O E M Industries, Inc. to provide you 214.330.7271 performance and quick responses Meyer Enterprises

Padgett Machine Tools, Inc.

254.865.9772

Contact Paulus Precision Machine,Nichols Inc.

at 480-804-0593 940.566.5600 www.nicholsprecision.com Plano Machine & Instrument, Inc. 940.665.2814

Matt Harrell

Quickturn Technology, Inc.

469.643.5010

Barron Smith

R. W. Smith Company, Inc.

214.748.1699

Mike Embrey

Red Rock Industries

940.665.0281

Gary Embrey

Shamrock Precision

972.241.3931

Frank Burch

Southern Machine Works

580.255.6525

John Anselmi

Sunbelt Plastics Inc.

972.335.4100

Marshall B. Taylor

T & K Machine, Inc.

903.785.5574

Jake Bailey

Tower Extrusions Fabrication

940.564.5681

Tom Buerkle

Traxis Manufacturing

512.383.0089

David Greer

Tribal Solutions, Inc.

972.436.0422

William Winberg

Winberg & Company

817.640.7930

BIL L OR M A C H IN E T OOL SERVIC E

“The Power of Connections” january/february 2014

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Shop Floor NEWS FROM THE FRONT LINES

Getting to Know

OSHA 1910.1200 by JAMIE BEAUVAIS, Arizona Safety & Emergency Consultants LLC

Are you using cleaner at your Machine shop? Do your employees ever handle Isopropyl alcohol? "Well of course!" you say. In that case, have your employees been educated on the health hazards associated with these chemicals? If your answer is no, then you do not comply with the Federal Hazard Communication Standard (OSHA 1910.1200). Arizona has received federal approval for its occupational safety and health regulatory program and has adopted the federal OSHA Act standards, including the federal Hazard Communication Standard (AZ Rev. Stat. Sec. 23-401et seq.; AZ Admin. Code Rules R20-5-601et seq.). The state law covers all private businesses and public sector (government offices and operations) workplaces and is administered and enforced by the Arizona Industrial Commission. The state's worker right-to-know law is identical to the federal standard. Hazard communication standards, or worker “right-to-know� laws, regulate how information about workplace chemical hazards is communicated to employees. As with most workplace health and safety standards, state worker right-to-know laws have developed in large part according to standards adopted under the federal Occupational Safety and Health Act (OSH Act). There is additional information and a detailed discussion of the federal regulations.

store, and use hazardous chemicals, while providing cost savings for American businesses that periodically update safety data sheets and labels for chemicals covered under the hazard communication standard. The new hazard communication standard still requires chemical manufacturers and importers to evaluate the chemicals they produce or import and provide hazard information to employers and workers by putting labels on containers and preparing safety data sheets. However, the old standard allowed chemical manufacturers and importers to convey hazard information on labels and material safety data sheets in whatever format they chose. The modified standard provides a single set of harmonized criteria for classifying chemicals according to their health and physical hazards and specifies hazard communication elements for labeling and safety data sheets. What are the major changes to the Hazard Communication Standard? The three major areas of change are in hazard classification, labels, and safety data sheets. Hazard classification: The definitions of hazard have been changed to provide specific criteria for classification of health and physical hazards, as well as classification of mixtures. These specific criteria will help to ensure that evaluations of hazardous effects are consistent across manufacturers, and that labels and safety data sheets are more accurate as a result. Labels: Chemical manufacturers and importers will be required to provide a label that includes a harmonized signal word, pictogram, and hazard statement for each hazard class and category. Precautionary statements must also be provided. Safety Data Sheets: Will now have a specified 16-section format.

The Hazard Communication Standard (HCS) is now aligned with the Globally Harmonized System of Classification and Labeling of Chemicals (GHS). This update to the Hazard Communication Standard (HCS) will provide a common and coherent approach to classifying chemicals and communicating hazard information on labels and safety data sheets. Once implemented, the revised standard will improve the quality and consistency of hazard information in the workplace, making it safer for workers by providing easily understandable information on appropriate handling and safe use of hazardous chemicals. This update will also help reduce trade barriers and result in productivity improvements for American businesses that regularly handle,

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The GHS does not include harmonized training provisions, but recognizes that training is essential to an effective hazard communication approach. The revised Hazard Communication Standard (HCS) requires that workers be re- trained within two years of the publication of the final rule to facilitate recognition and understanding of the new labels and safety data sheets.

Resources: https://www.osha.gov/dsg/hazcom/index.html http://www.ica.state.az.us/ADOSH/ADOSH_main.aspx Learn more at: www.ica.state.az.us or www.atma.org


TECHNOLOGY • MANAGEMENT • EDUCATION • LEGISLATION • DIRECTORY

YOUR PREMIER PUBLICATION FOR THE SOUTHWEST! Discover the NTMA SW Regional Magazine featuring Arizona, San Diego, and North Texas

...AND TURN ON THE P Contact Chris Mignella with questions at: executivedirector@arizonatooling.org

visit us at: www.arizonatooling.org

WER!

PrecisionNews ............................................................... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..


EVERY BUSINESS HAS A STORY TO TELL Ever y business has a stor y to tell. At National Bank of Arizona, we’ve been helping write some of the best and brightest stories for over 29 years. Let us help you write yours.

FOR MORE INFORMATION, PLEASE CONTACT: Michael A. Hasenkamp Vice President, Commercial Banker 623.872.2553 | michael.hasenkamp@nbarizona.com


Precision News January/February 2014