Precision News - May/June 2015

Page 1

THIS ISSUE: Why Join the NTMA? / A Rough Start to the Spring / A Time for Reflection and Planning

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ARIZONATOOLING.ORG MARCH /APRIL 2013

The Official Tooling and Machining Magazine of the NTMA Southwest Region

PrecisionNews TM

TECHNOLOGY . BUSINESS . EDUCATION . EVENTS . DIRECTORY

A SPECIAL MESSAGE FROM PN:

MAKING PLANS

Inside: GLOBAL ECONOMIC REPORT FOR APRIL 2015

DESPITE THE OBSERVED THE HIGHEST PRODUCTION LEVELS SINCE AUGUST, THE OVERALL PACE OF EXPANSION HAS EASED OVER THE PAST FEW MONTHS

TOP 10 BUSINESS SUCCESSION PLANNING ROADBLOCKS MANY BUSINESS OWNERS EXPECT TO SOMEDAY PASS ON THEIR PRIDE AND JOY, MOST LIKELY TO THEIR CHILDREN, ANOTHER FAMILY MEMBER, AN EMPLOYEE, OR AN OUTSIDE BUYER. THE REFLECTION ISSUE

/ IT’S NEVER TOO LATE TO BUILD ON SUCCESS AND RE-ADDRESS CHALLENGES! / NTMA SW BRINGS YOU:

THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE!

PN HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP


Time Is Money. Start Here and SAVE!

1

2

Raw Stock

Machine-Ready Blanks

Requires sawing, milling, grinding, deburring, or wasteful machining in cycle.

Go directly from receiving to CNC machine.

3 Finished Part The high value result—Up to 25% faster cycle time, chip-to-chip.

Make parts faster with TCI Machine-Ready Blanks. s #USTOM MADE TO ORDER FROM ONE TO THOUSANDS s !S CLOSE AS v DIMENSIONALLY AND v m ATNESS SQUARENESS AND PARALLELISM WHILE MINIMIZING MATERIAL MOVEMENT DURING #.# MACHINING s $EBURRED AND CLEAN READY TO LOAD DIRECTLY INTO YOUR #.# MACHINING CENTER

Save On: Material Prep Time Set Up Time CNC Cycle Time

#ALL TODAY TO DISCUSS YOUR NEXT JOB 800-234-5613. Good Parts. On Time. Period. )3/ !3

MEMBER

www.tciprecision.com


MAY/ JUNE 2015 VOLUME 5 • ISSUE 3

Contents 10 14

Features

Departments

GLOBAL ECONOMIC REPORT FOR APRIL 2015

03 President’s Letter 04 Policy Matters

The global economic environment remains challenged, even as it continues to experience modest growth overall. Despite the observed the highest production levels since August, the overall pace of expansion has clearly eased over the past few months.

21 NTMA Initiatives 22 Websites that Work 22 Arizona Chapter Info 27 NTMA Membership

TOP 10 BUSINESS SUCCESSION PLANNING ROADBLOCKS

28 Feature Focus Cover photo: Sandvik Coromant

(AND HOW TO AVOID THEM) Many business owners expect to someday pass on their pride and joy, most likely to their children, but possibly to another family member, an employee, or an outside buyer. This is a common strategy to fund the owner’s retirement and carry his or her creation down through the generations.

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 Premier NTMA SW Regional Magazine EXECUTIVE DIRECTOR & EDITOR Chris Mignella

PrecisionNews

TM

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ....................................

CONTRIBUTING WRITERS David Lair, Michael D. McConnell, Chad Moutray, Omar S. Nashashibi, Mike Rakowski 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 ©2015 by ATMA. All rights reserved.

may/june 2015

arizonatooling.org

PrecisionNews

01


REGISTER TODAY, PARDNER! !$1

!$1

“WILDWILDWEST” Saddle Up Your Posse N’ Head to

The 2015 NTMA

Regional Conference 7.31.15 thru 8.2.15

!$1

NETWORKING • TECHNOLOGY • EDUCATION • BUSINESS Keynote Presentations by:

Sandia Labs - Futuristic R&D NAM - National Association of Manufacturers Presented by your favorite Outlaw Chapters of Arizona, California, Texas, Colorado & Utah

www.swregionalconference.org


.................................................................................................................................... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

First Word PRESIDENT’S LETTER

Hello, P.N. Readers! . . .. ..

Spring is upon us with summer just around the corner. Many of us are looking forward to vacations and time with families. 2015 is trucking by with already nearly two quarters behind us! I hope each of you are having successful years. Once again as you’re approaching mid-year it’s time for reflection and planning. What strategies have been working, what needs are you trying to address, what does the second half of your year look like? It is never too late to build on success and re-address challenges. In addition to business planning check your calendars for association events. Yes, the other three seasons typically have more events and gatherings to offer but the summer has a few options to consider. These association events offer knowledge and networking which can contribute to and supplement your individual efforts. Check out the NTMA website for upcoming items. Also be checking your mail for the latest brochure on the Southwest Regional Conference, July 31 – August 2. The next brochure has the full descriptions of the breakout sessions and our keynote speakers. The SWRC has shaped up nicely. We’re looking forward to seeing you later in the summer. Don’t wait – register now! Now for a sad note. Chris Mignella, the ATMA’s Executive Director has tendered her resignation. She and husband Dale are moving out of state to follow a career advancement for him. This is a wonderful opportunity for both of them and we wish them the very best! Chris has been an outstanding Executive Director for the ATMA. Her contributions to our association have helped make it a continuing success. She will be sorely missed - but not just yet! Although Chris has moving plans and such ahead of her this summer she is sticking around to complete the work begun on the Southwest Regional Conference and will work with us to make the event another success! She will be in attendance that weekend so for those attended you can personally bid her farewell and good wishes.

DAVID LAIR Vice President, Dynamic Machine & Fabrication Corp. and President, ATMA

After August she’ll be out of state but not out of touch. We expect to hear from her regularly and perhaps see her too as she visits family and friends in Arizona. Enjoy your summer. I wish all of you continuing success in 2015!

may/june 2015

arizonatooling.org

PrecisionNews

03


................................................................................................................................... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

Policy Matters BECOME A VOICE FOR CHANGE

Washington Update: A Rough Start to the Spring by OMAR S. NASHASHIBI

Spring is supposed to bring with it sunshine, blooming flowers, and baseball. However, policymakers in Washington had more than just cherry blossoms on their minds this April, hitting manufacturers with EPA regulations, Tax Day, and a new NLRB rule taking effect. While nothing can make us long for the cold days of winter, many people I speak with would just rather Congress and regulators hibernate year round. Our lobbying firm arranged for a One Voice manufacturer to testify before the U.S. Congress Joint Economic Committee about the impact of tax policy on small businesses. His message could not have been clearer, “It feels as if people in Washington are so insulated from the real world they do not realize their inaction, as much as their action, has significant consequences. It is very difficult to plan for the future when you don’t even know the rules for today.” While this testimony addressed tax reform, one could apply those words to almost every facet of government. The National Tooling and Machining Association, together with the Precision Metalforming Association, marched on Washington in April, sending manufacturers to the nation’s capital to meet with

lawmakers in both parties. They sent a clear message that we need a partner in Washington that encourages manufacturing in America. One Voice members visited over 125 Congressional offices to discuss the importance of tax reform, recruiting qualified employees, and addressing ineffective and burdensome regulations. The meetings could not have come at a better time. Tax reform was fresh on everyone’s mind as April 15th passed and Congress begins making another attempt to update the Internal Revenue Code. In addition to the hearing at which One Voice testified, another member also participated in a call with his U.S. Senator serving on a key tax reform working group. The Senate Finance Committee created these informal groups to explore areas where Congress may agree on reform. It is increasingly clear that any action will not involve lowering the individual rates, however, lawmakers are exploring how to include pass-through companies in business tax reform. Eighty-one percent of manufacturers are structured as pass-throughs, many of which are paying taxes at the much higher individual tax rate, which can exceed 44%

fyi: Manufacturers and businesses across the country are alarmed by the increased activity of the U.S. EPA in the past few months. + Photo: Photo:NTMA NTMA

04

PrecisionNews

arizonatooling.org

may/june 2015

when factoring in surcharges. The Administration and some on Capitol Hill would prefer to focus only on lowering the C-Corporation income rate from 35% to 28% or as low as 25%. Unfortunately, this C-Corporation only reform would leave behind eight in ten manufacturers, most small and medium-sized family-owned businesses. In addition to comprehensive reform for all manufacturers, One Voice members pressed their Senators and Representatives to make permanent the tax provisions Congress allowed to expire such as the R&D Credit, Bonus Depreciation, and Section 179 Equipment Expensing. Manufacturers and businesses across the country are alarmed by the increased activity of the U.S. EPA in the past few months. Industry groups submitted formal comments opposing the Administration’s efforts to lower the levels of permissible ground level ozone. The rule would reduce GDP by $140 billion annually and cost over $1 trillion in compliance costs over the next decade by forcing a reduction in emissions from factories, buildings, vehicles, even livestock. Slated to take effect starting in 2017, any manufacturer located in an area exceeding acceptable ozone levels could face restrictions on their facility expansion and machine acquisitions. continued on page 06


may/june 2015

arizonatooling.org

PrecisionNews

05


................................................................................................................................... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

Policy Matters

Washington Update: A Rough Start to the Spring continued from page 04

Meanwhile, in the first week of April, the EPA formally sent to the White House for final review a lesser-known rule known as “Waters of the U.S.” The proposal will expand the federal government’s reach over the nation’s waterways from 3.5 million miles to over 8 million miles of rivers, streams, and ditches. This affects stormwater retention ponds, fire ponds, and on-site impoundments, leading to point source discharge and other permit requirements, causing manufacturers to pay costly permitting costs – where the median price range comes in at $155,000. Capping off April, one of the most controversial workplace changes in decades took effect. Unions and their supporters in Washington finally succeeded in subjecting

employees to Ambush Elections. Under the new rule, starting on April 14, employees must hold an election for whether join a union in as little as ten days, down from an average of fifty-six prior to the rule taking effect. In a greater violation of employee rights, the National Labor Relations Board is requiring that employers provide unions with the personal email and phone numbers of their workers ahead of the vote. In addition, the Ambush Election rule removes the employers right to protest the organizing effort until after the vote takes place. For the past five years, NTMA and its industry partners have successfully defeated efforts to implement the rule and are continuing to seek solutions in the courts. While this does not paint a rosy picture as

spring turns to summer, it is important that manufacturers continue to apply pressure by coming to Washington and reminding policymakers their actions, and inactions, have consequences. Just imagine how much worse the situation would become were it not for those individuals who stand up for manufacturing in America. While we can’t win them all, one thing is for certain, if you’re not at the table, you’re on the menu, and the federal government isn’t hibernating anytime soon. 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

Manufacturing in Arizona for over 46 Years Providing precision machining and fabrication of diverse parts and assemblies

Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries ISO9001:2008 and AS9100:2009 REV “C” CERTIFIED Facility Recently Expanded to Over 36,000 Sq. Ft. Equipment Capacities range up to HR-4R HAAS 4-Axis Horizontal Milling Center @ 150”x 66”x 48” and Ikegai VTL CNC Lathe @ 0/ 55” Diameter

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 We’re Looking Forward to Meeting and Exceeding Your Expectations! 06

PrecisionNews

arizonatooling.org

may/june 2015


Is Uncertainty Holding You Hostage? Everyy employer, Ever employer, no matter what size, has to deal with human resource issues, regulations, learn and employment law changes. Contact your local marketing representative to lear n how Federated Insurance can help you address issues such as hiring, firing, and disciplinaryy actions with an employee handbook building tool, sample policies disciplinar attorneys. and procedures, and access to independent employment law attor neys. www.federatedinsurance.com Visit www .federatedinsurance.com to find a representative near you. )HGHUDWHG 0XWXDO ,QVXUDQFH &RPSDQ\ ‡ )HGHUDWHG 6HUYLFH ,QVXUDQFH &RPSDQ\ ‡ )HGHUDWHG /LIH ,QVXUDQFH &RPSDQ\ ‡ )HGHUDWHG /LIH ,QVXUDQFH &RPSDQ\ )HGHUDWHG 0XWXDO ,QVXUDQFH &RPSDQ\ ‡ )HGHUDWHG 6HUYLFH ,QVXUDQFH &RPSDQ\ 2ZDWRQQD 0LQQHVRWD ‡ 3KRQH ‡ ZZZ IHGHUDWHGLQVXUDQFH FRP 2ZDWRQQD 0LQQHVRWD ‡ 3KRQH ‡ ZZZ IHGHUDWHGLQVXUDQFH FRP *Not licensed in the states of NH, NJ, and VT. VT.

‹ )HGHUDWHG 0XWXDO ,QVXUDQFH &RPSDQ\ ‹ )HGHUDWHG 0XWXDO ,QVXUDQFH &RPSDQ\

Quality | Innovation | Dependability 5 AXIS | MULTI-TASKING w/Y AXIS | EDM | WEDM Trust the company that does it all Fast Hole EDM | Water Jet | Laser | Wide Variety of Part Configurations 2905 South Potter Drive

Delivering High Quality and Value in Conventional and Non-conventional Manufacturing, Fabrication, Rubber Molding, Mechanical Assemblies, Water Jet and Laser Cutting.

Tempe, AZ 85282-3138 www.micro-tronics.com rfq@micro-tronics.com

AS9100 Rev C and Nadcap-Nonconventional Machining Certified

Phone: 602-437-8995

may/june 2015

arizonatooling.org

PrecisionNews

07



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

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

PrecisionNews

TM

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

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

arizonatooling.org

may/june 2015

arizonatooling.org

PrecisionNews

09


Feature Story // PrecisionNews

GLOBAL MANUFACTURING ECONOMIC UPDATE FOR APRIL 2015 REPORT BY CHAD MOUTRAY

10

PrecisionNews

arizonatooling.org

may/june 2015


The global economic environment remains challenged, even as it continues to experience modest growth overall. The J.P. Morgan Global Manufacturing PMI, for instance, observed the highest production levels since August. Yet, the overall pace of expansion has clearly eased over the past few months. continued on page 12

may/june 2015

arizonatooling.org

PrecisionNews

11


Feature Data // PrecisionNews

GLOBAL MANUFACTURING ECONOMIC UPDATE FOR APRIL 2015 continued from page 11

These Along those lines, manufacturers in half of the top 10 markets for goods manufactured in the United States reported declining levels of activity in March, up from just two countries in February. Three Asian economies shifted into contraction territory for the month: China, Hong Kong and South Korea. In addition, Brazil and Canada remained challenged, with the latter struggling on lower crude oil prices. Manufacturing in the emerging markets also stagnated in March, with weaknesses in a number of nations counteracting progress in others. In this context, the U.S. economy remains a bright spot in the world despite significant headwinds that dampened activity in the early months of 2015. Manufacturing production has been soft over the past four months, but edged marginally higher in March, boosted by strong automotive output. Business leaders tend to be more upbeat about the coming months, and the Markit U.S. Manufacturing PMI rose to its highest level since October. I continue to forecast roughly 2.8 percent growth in real GDP for 2015, even as first quarter growth will be very soft on the before-mentioned headwinds. Yet, a healthier economy (and differing monetary policy actions) also comes with a cost—a strengthened U.S. dollar. Measured against a broad range of currencies, the U.S. dollar has appreciated more than 22 percent over the past nine months. Already, the data suggest that the exchange rate has begun to dampen the demand for exports orders. While the U.S. trade deficit narrowed to its lowest level since October 2009, much of that was the result of a weaker global economy and reduced petroleum flows. Indeed, crude oil imports hit their slowest pace since February 1994. Year-to-date manufactured goods exports this year have been lower than at the same point last year. (Granted, it is just two months so far.) There are a few regional highlights of note. First, the Chinese economy continues to decelerate. Real GDP rose 7.0 percent year-over-year in the first quarter, down from 7.3 percent growth in the fourth quarter. Moreover, industrial production, retail sales and fixed asset investments have each slowed materially in the first quarter. These data points are likely to lead the Chinese government to pursue new stimulative measures. Second, Canadian manufacturers have reported weaker conditions in the past two months due to energy markets, particularly in 12

PrecisionNews

arizonatooling.org

may/june 2015

Alberta and British Columbia. In January, manufacturing output fell 0.7 percent. The Canadian unemployment rate held steady at 6.8 percent in March, but the manufacturing sector had 2,400 fewer workers for the month. In contrast to what we see in Canada and China, European manufacturers have reported modest progress of late. The Markit Eurozone Manufacturing PMI increased to its highest level since May 2014 on notable gains in output, new orders, exports and employment. Moreover, industrial production rebounded in February in the Eurozone, and economic sentiment marginally improved in its most recent survey. Nonetheless, other data highlight continuing challenges. The unemployment rate ticked up slightly to 11.3 percent. Many observers continue to worry about deflation, and annual inflation declined 0.1 percent in March. As a result, the European Central Bank is spending 1 trillion euros over the next 18 months to spur greater economic growth as part of its quantitative easing program. The resistance felt by the global economy, from the strong dollar to continued weak demand, accentuate the need to drive forward key trade policies and agreements that will help make manufacturers in the United States more competitive. Trade Promotion Authority (TPA) legislation was introduced this week on a bicameral and bipartisan basis, as was new Miscellaneous Tariff Bill (MTB) process legislation and an extension of U.S. preference programs. Movement is expected as well on other key pieces of trade legislation. Congress continued to debate the reauthorization of the Export-Import (Ex-Im) Bank, with bills introduced in both the House and Senate. Both the Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) negotiations are ongoing, with the TPP expected to conclude as early as this summer. Issues related to Cuba and Iran are also under discussion.

GLOBAL ECONOMIC AND TRADE TRENDS DESPITE MODEST GROWTH OVERALL, GLOBAL MANUFACTURING WAS VERY SOFT IN MARCH. The J.P. Morgan Global Manufacturing PMI dipped marginally, down from 51.9 in February to 51.8 in March. This index has changed little over the past five months, averaging 51.8 since October, and slightly eased from the average of 52.3 for 2014 as a whole. In February, the pace of growth for new orders (down


from 52.3 to 52.2), exports (down from 50.9 to 50.8) and employment (down from 51.0 to 50.7) each decreased a little. On the positive side, the production index (up from 53.2 to 53.4) increased to its highest level since August. Looking at the top 10 markets for goods manufactured in the United States, half had expanding levels of manufacturing activity in March, down from eight in February. Manufacturers in three Asian countries reported activity levels shifting from positive growth in February to declines in March. These included China (down from 50.7 to 49.6), Hong Kong (down from 50.7 to 49.6) and South Korea (down from 51.1 to 49.2). Moreover, Brazil (down from 49.6 to 46.2) and Canada (up from 48.7 to 48.9) continued to contract. Japan (down from 51.6 to 50.3) also slowed to a near standstill, with new orders falling for the first time in 10 months. In contrast to these markets, the top markets in Europe each recorded some modest gains for the month, including Germany (up from 51.1 to 52.8), the Netherlands (up from 52.2 to 52.5) and the United Kingdom (up from 54.1 to 54.4). Meanwhile, our second-largest trading partner, Mexico (down from 54.4 to 53.8), eased slightly but continued to expand at a decent pace.

THE U.S. ECONOMY, WHICH BEGAN 2015 WITH A NUMBER OF HEADWINDS, REMAINS A BRIGHT SPOT IN THE WORLD. The Markit U.S. Manufacturing PMI increased from 55.1 to 55.7, its highest level since October. As such, the Markit data reflect a rebound in sentiment in March after some easing in recent months. New orders (up from 55.8 to 57.3) and output (up from 57.3 to 58.8) expanded rather strongly in March, with modest growth in hiring (up from 52.8 to 53.8). Exports (down from 51.7 to 50.0) stagnated on weaknesses abroad and a stronger U.S. dollar. Still, it is worth noting that the competing survey from the Institute for Supply Management continues to show challenges. In addition, other economic indicators also reflect less-thandesired levels of activity since November in the U.S. market, even as manufacturers continue to have a more positive outlook moving forward. What matters most has been the health of the U.S. economy relative to its foreign counterparts. As other nations struggle, this negatively impacts our ability to sell products and services to them. Monetary policy also matters, with the Federal Reserve likely to begin increasing short-term rates later this year. As a result, the U.S. dollar has continued to strengthen relative to other currencies. The trade-weighted U.S. dollar index against major currencies from the Federal Reserve has risen from 75.6968 on July 1 to 92.5394 on April 17, an increase of 22.2 percent. Along those lines, the U.S. dollar peaked in 2014 at $1.3924 for each euro. On April 16, it closed at $1.0768 to the euro, with some expectations that it will move to parity soon for the first time since November 2002.

U.S. TRADE DEFICIT NARROWED IN FEBRUARY TO ITS LOWEST LEVEL SINCE OCTOBER 2009. The trade deficit declined from $42.68 billion in January to $35.44 billion in February. This sharp decline stemmed largely from a drop in goods imports from $191.07 billion to $180.81 billion, more than outstripping the decrease in goods exports from $128.54 billion to $125.64 billion. The trade surplus in the service sector changed little, down from $19.86 billion to $19.73 billion. Much of the decrease in the trade deficit could be attributed to petroleum flows. The petroleum trade deficit dropped from $10.69 billion to $8.07 billion, with petroleum imports declining from $19.44 billion to $16.35 billion. Indeed, the United States imported just 192.05 million barrels of crude oil in February, down from 222.78 million in January and its slowest pace since February 1994. To put this figure in perspective, the petroleum trade deficit was $19.61 billion in February 2014. In addition, the unit price for crude oil ($49.53 per barrel) hit its lowest point since April 2009. Of course, the data also reflect a weaker global environment, with the nonpetroleum trade deficit also lower, down from $50.83 billion to $45.99 billion. Along those lines, goods exports data were mostly lower. Nonautomotive capital goods (down $1.66 billion), industrial supplies and materials (down $1.41 billion), automotive vehicles and parts (down $1.09 billion) and foods, feeds and beverages (down $165 million) experienced reduced goods exports in February. Consumer goods (up $1.31 billion) marks the one bright spot. Meanwhile, goods imports also dropped significantly, as noted above. Industrial supplies and materials (down $4.35 billion), nonautomotive capital goods (down $2.60 billion), automotive vehicles and parts (down $1.70 billion), consumer goods (down $1.45 billion) and food, feeds and beverages (down $319 million) all contracted. Crude oil and petroleum products accounted for roughly $3 billion of the industrial supplies and materials figure. The data suggest that the stronger U.S. dollar, sluggish growth overseas and reduced energy prices have negatively impacted trade. Indeed, these headwinds have dampened demand for manufactured goods exports. Moving forward, policymakers can help by pursuing opportunities that will open up new markets, including passing TPA and enacting trade agreements in Asia and Europe. Moreover, the Ex-Im Bank needs to be reauthorized long term, ending financial uncertainty for manufacturers and their customers.

CHAD MOUTRAY is Chief Economist for the National Association of Manufacturers - Learn more at: http://www.nam.org

may/june 2015

arizonatooling.org

PrecisionNews

13


Feature Story // PrecisionNews

STORY BY MICHAEL D. McCONNELL

TOP 10 BUSINESS SUCCESSION

PLANNING ROADBLOCKS (and How to Avoid Them)

14

PrecisionNews

arizonatooling.org

may/june 2015


Many business owners expect to someday pass on their pride and joy, most likely to their children, but possibly to another family member, an employee, or an outside buyer. This change in ownership is a common strategy to fund the owner’s retirement and carry his or her creation down through the generations.

But every business owner faces roadblocks that threaten to thwart his or her dream. Whether you or a family member owns a business, or you are in line to become an owner, here is a checklist of hazards you’ll want to avoid.

1. Waiting too long to start planning Many business owners leave succession planning until the last moment — if they plan at all. Yet an ideal succession plan requires laying the groundwork over many years. Some experts recommend planning your exit strategy from the day you start the business. How you want to leave the business tomorrow strongly influences how you structure and operate the business today.

2. Assuming a family member will take over the business While many children want to eventually take over the family business, not all do. Perhaps your child really wants to be a school teacher or minister or doctor instead of the owner of a small factory. It’s critical to talk to your children about what they want for themselves. Encourage them to work in the business, but don’t pressure them. It’s not fair to them, and it will probably mean trouble for the business if you try to shove them into a role they don’t want. You’ll want to know every family member’s desires as soon as practical so you can pursue other avenues if necessary, such as selling to a valued employee or outside buyer.

3. Dividing the business equally among heirs Equal ownership among heirs is usually a recipe for disaster because different skills and different visions inevitably lead to conflicts. Ultimately, one person needs to run the company. That’s why it’s so important to plan well in advance, to see who among your heirs has the talent, genuine desire, and requisite skills to run the business. If a certain heir doesn’t want to be involved in the business, devise a way to gift that person other assets, or perhaps nonvoting shares in the business (though this, too, can lead to conflicts).

4. Waiting too long to give real authority to the heirs Another common roadblock is waiting too long to give genuine responsibility and authority to a potential heir. Many owners never give it up until the day they retire — only to learn painfully that the child isn’t up to the task. Involve the person in your decisions and let him or her make real decisions. Let the future owner build relationships with vendors, employees, and customers. After all, you made mistakes when you were starting and growing the business. Let the next generation make mistakes and learn from them, just like you did. continued on page 16

may/june 2015

arizonatooling.org

PrecisionNews

15


Feature Story //

THERE ARE NO SHORT CUTS TO A SUCCESSFUL BUSINESS SUCCESSION PLAN.

PrecisionNews

TOP 10 BUSINESS SUCCESSION PLANNING ROADBLOCKS 5. Trusting your successor This goes along with the failure to give your heir genuine authority. While you don’t want to trust someone blindly just because that person is family, don’t be so suspicious that you’re constantly peering over his or her shoulder. This creates an atmosphere of distrust. Whether you are working with a family member or an outside party, there is always a level of risk in leadership transition. An advisory (nonvoting) board is generally a productive way to establish a framework for communication and accountability without creating mistrust between generations.

6. Not having your potential successor(s) work for another business It is sometimes a good idea to encourage an heir to work a while for someone else before committing to the family business. This can be valuable training and can provide a clearer sense of whether that person ultimately wants to run the show.

7. Being secretive about your plans Business owners frequently play their succession plans close to their chest. Perhaps they’re worried about stirring up family conflicts or they just don’t like to talk about the family money. This is a disservice to your heirs and potentially a disaster for the company. The sooner you can reveal your plans, the sooner everyone can get on board. It also gives you time to modify the plan, if necessary. Keep all parties informed, perhaps through periodic family meetings

8. Dreading your retirement years Retirement can be difficult for an entrepreneur because the business is often the all-consuming center of the owner’s life and personal identity. Without a clear sense of what you want to do in retirement, you will almost inevitably drift back to the family business, frequently meddling in how it’s being run — often to the detriment of the business and family relations.

9. Planning on your own Business succession planning is complicated (we haven’t even discussed tax issues here) and fraught with landmines. Outside

16

PrecisionNews

arizonatooling.org

may/june 2015

(and How to Avoid Them)

advice can be invaluable, particularly from someone who can lead family meetings and ease conflicts with knowledge, experience, and an objective perspective.

10. Avoiding the journey and looking for a cookie cutter process There are no short cuts to a successful business succession plan. It is more like a journey than a destination, and like many journeys in life, it can be fun and fruitful for all who go with you. From a distance, every family-owned business may look the same, but like snowflakes, no two are really alike when you look at them closely. That’s why it’s so important to create a customized succession plan that addresses your unique needs.

How we can help We can provide individuals and business owners with valuable insights that address specific business and personal goals, reduce anxiety, and provide financial peace of mind. Ultimately, you are responsible for the changes your business will go through when you are no longer involved. But you don’t have to face the transition alone. No matter where you are in the process, we can help you create a seamless plan that satisfies key stakeholders, keeps the business thriving, and preserves your legacy.

MICHAEL D. McCONNELL, CPA, CFP®, Partner, CliftonLarsonAllen Wealth Advisors, LLC, for CliftonLarsonAllen. Please contact Michael at 612.376.4643 or via email at mike.mcconnell@CLAconnect.com with any questions. To learn more about CliftonLarsonAllen, visit www.CLAconnect.com/privateclient.


NTMA EXCLUSIVE

YOUR BEST TOOL OF THE TRADE.

ASK ABOUT SPECIAL RATES FOR NTMA MEMBERS!

Call 602.388.5752 today and become a part of Precision News - the most informative and comprehensive tooling and machining industry magazine!

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


CM

MY

CY

CMY

1235 S. 48th Street, Suite #1 Tempe, AZ 85281 480.615.6353 www.arizonacnc.com 18

PrecisionNews

arizonatooling.org

may/june 2015


PrecisionNews // NTMA INITIATIVES

How Can NTMA Help You Grow Your Business?

3 RYL GL QJ :DW HU -HW U VHU YL FHV VL QFH

:H VSHFL DO L ]H L Q SU RGXFW L RQ DQG SU RW RW \SH FXW W L QJ )U RP W KH YHU \ EDVL F W R W KH H[W U HPHO \ L QW U L FDW H ZH FDQ L W ZL W K DQ\ RI RXU FXW I L YH PDFKL QHV

Profitability grows when revenue increases and costs are controlled. NTMA can help you with both. Though most of our members are small- to medium-sized companies, the power of the association can help you do business like a large corporation. REVENUE GROWTH • We organize regular business-to-business purchasing fairs, designed to operate like speed dating for suppliers. We invite 100 or more buyers from large companies and then give you opportunities to briefly pitch your products and services. As a result attendees leave with good contacts and solid leads, leading to increased business. Companies have been awarded millions of dollars in contracts as a direct result of these events. • We offer a program called Members First, designed to help members turn to each other to meet needs. Perhaps your next customer is an NTMA peer? Or perhaps an NTMA member would make an excellent vendor for you? Members First helps make the connections.

3KRQH 7 )U HH )D[ PDU ]HH#PDU ]HH FRP

1RU W K W K 'U L YH 3KRHQL [ $]

ZZZ 0DU =HH FRP

• By interacting with fellow members in your local chapter, you may discover new business opportunities, or ways to work together with peers to increase business or market yourselves cooperatively. COST CONTROL • We offer discount programs with several large suppliers (including Grainger, UPS and Yellow Freight), allowing you to leverage NTMA’s combined buying power for your own benefit. • Our business insurance program keeps more money in your pocket by offering a necessary product in a low-overhead, notfor-profit manner. Our decision resources allow you to be smarter about how you use your resources, resulting in greater efficiencies and lower costs. Learn more at: www.ntma.org/initiatives

Get Turned-On to the ATMA! Contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

PUSH OUR BUTTONS ...AND ACHIEVE YOUR BUSINESS SUCCESS THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.

Power-Up with

PrecisionNews

TM

For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

may/june 2015

arizonatooling.org

PrecisionNews

19


PrecisionNews Presents

WEBSITES THAT WORK FOR YOU

ATMA PRECISION

2015 ATMA BOARD OF DIRECTORS

Arizona Chapter Website arizonatooling.org Arizona Commerce Authority -Job Training Grant Application azcommerce.com/workforce

President DAVID LAIR Dynamic Machine & Fabricating

Arizona Department of Education azed.gov

Vice President JOSEPH KOENIG Exactitude, LLC

Arizona Manufacturers Council azchamber.com/amc

Executive Director CHRIS MIGNELLA

Arizona Manufacturing Apprentice Program www.azpmap.org AMP - Arizona Manufacturing Partners www.AMParizona.com

Secretary DUSTIN WHALEY Resonant Solutions

Arizona State University Mechanical & Manufacturing Engineering Technology poly.asu.edu/technology/mmet/ Arizona Technology Council AZtechcouncil.org

EVIT (East Valley Institute of Technology) evit.com

Greater Phoenix Chamber of Commerce phoenixchamber.com Manufacturing Extension Partnership azcommerce/MEP

Jeremy Shalk HiTech Machining & Engineering

Bruce Treicher Zircon Precision Associate Member Liaison David Senkfor TopGun Consulting ATMA Ambassador Maxine Jones mjones14@cox.net

Maricopa Community Colleges maricopa.edu Maricopa Workforce Connection maricopaworkforceconnection.com Mesa Community College mc.maricopa.edu National Institute for Metalworking Standards nims-skills.org National Robotics League NRL.org

ATMA Ambassador Dante Fierros Nichols Precision

Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752

NTMA - National Tooling & Machining Association ntma.org National Association of Manufacturers NAM.org

ExecutiveDirector@arizonatooling.org

PrecisionNews

TM

One Voice Advocacy metalworkingadvocate.org

arizonatooling.org

Norela Harrington Bent River

Gary Watkins MarZee

GateWay Community College gatewaycc.edu

PrecisionNews

BOARD MEMBERS Kevin Beach R&D Specialty Manco

City of Phoenix – Community & Economic Development Program phoenix.gov/ECONDEV/index.html

20

Treasurer ZACH WILSTERMAN Profile Tool & Engineering

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

arizonatooling.org

may/june 2015


PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS REGULAR MEMBERS David Wright

Accuwright Industries

480-892-9595

James Costello

Sanair Products

480-218-0918

Rob Markson

Action Machine

692-233-0883

Erik Niemira

Sierra Precision Products, LLC

602-481-9582

Michael Holmes

AeroDesign & Manufacturing

602-437-8080

Mark Willmering

Sonic Aerospace, Inc.

480-777-1789

Chuck Eriksen

Allied Tool & Die Company, LLC

602-276-2439

Jeff Gaffney

Southwest Swiss Precision

602-438-4670

Charles A. Van Horssen

Axian Technology, Inc.

623-580-0800

Steven Yeary

Southwest Turbine, Inc.

602-278-7442

Rex Dugdale

AZ Industries for the Blind

602-269-5131

Mike Gudin

Southwest Water Jet

480-306-7748

Paul Bowman

B3 Precision, LLC

480-250-3366

Dennis Miller

Summit Precision, Inc.

602-268-3550

Bill Boat

B&B Fabrication & Machine

602-684-0393

Scott Higginbotham

Sun Grinding LLC

602-238-9595

Kevin Burbas

B&B Tool, Inc.

520-397-0436

Craig Berland

Systems 3, Inc.

480-894-2581

Jeff Buntin

Barnes Aerospace - Apex Mfg. Div.

602-305-8080

Jacque Cowin

Tram-Tek, Inc.

602-305-8100

Norela Harrington

Bent River Machine, Inc.

928-634-7568

Rick Lorenzen

Tri Star Design & Mfg.

480-345-1699

Mark Clawson

C & C Precision Machining

480-632-8545

Jeremy Lutringer

Unique Machine & Tool Co.

602-470-1911

Joe Cassavant, Jr.

Cassavant Machining

602-437-4005

Bill Ankrom

Vitron Manufacturing, Inc.

602-548-9661

David Bardin

Chips, Inc.

602-233-1335

Robert L.Wagner

Wagner Engineering, Inc.

480-926-1761

Mark Musgrove

CJ Manufacturing

480-517-0233

Todd Kuhn

West Pharmaceutical Services

480-281-4500

Ron Gilmore

Continental Precision, Inc.

602-278-4725

Bruce Treichler

Zircon Precision

480-967-8688

Allen Kiesel

Creative Precision West

623-587-9400

David Lair

Dynamic Machine & Fabricating

602-437-0339

Mike Hallford

Empire Precision Machining

602-622-4580

Joseph J. Koenig

Exactitude, LLC

602-316-6957

Mark Weathers

Excaliber Precision Machining

623-878-6800

Arizona Precision Industrial

John Raycraft

Jeff Hull

Foresight Technologies

480-967-0080

MicroTronics

Mark Travis

602-437-8995

Tim Malin

Helm Precision, Ltd.

602-275-2122

Performance Grind & Manufacturing

Joe Hajda

480-967-5354 480-632-9414

MANUFACTURING ADVOCATES 480-785-7474

Jeremy Schalk

Hi-Tech Machning & Engineering

520-889-8325

Arcas Machine

Denny Arcas

Don Theriault

Industrial Tool Die & Engineering

520-745-8771

Critical Cut, LLC

Frank Froncillo

480-785-1316

Jim Carpenter

Kimberly Gear & Spline, Inc.

602-437-3085

A&M Manufacturing

Steve Barton

602-278-6380

Don Kammerzell

K-zell Metals, Iinc.

602-232-5882

Ernest Apodaca

Layke, Inc.

602-272-2654

Michael C. Majercak, Jr.

Majer Precision

480-777-8222

Edward Wenz

MarZee, Inc.

602-269-5801

Arle Rawlings

Mastercraft Mold, Inc.

602-484-4520

Jeff Meade

Metalcraft

480-967-4889

Joe Tripi

Micropulse West

602-438-9770

Lyle Rusanowski

MMI Precision Technology

480-897-7100

Mark Lashinske

Modern Industries, Inc.

602-267-7248

John Anglin

Nelson Engineering

602-273-7114

Tom Osborn

Osborn Products, Inc.

623-587-0335

Ray Chu

Phoenix Analysis & Design Tech.

480-813-4884

Michael & Laura Cree

Phoenix Custom Lasering

602-996-1402

Steve Macias

Pivot Manufacturing

602-306-2923

James Buchanan

Powill Manufacturing & Eng, Inc.

623-780-4100

Roy Stenger

Precision Aerospace

602-352-8658

Tony Costabile

Precision Die & Stamping, Inc.

480-967-2038

Michael Dailey

Prescott Aerospace, Inc.

928-772-7605

Tyler Crouse

Pro Precision

602-353-0022

PrecisionNews

Zach Wilsterman

Profile Tool & Engineering

480-894-1008

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

Michael Hughes

Pure Logic Industries, Inc.

480-892-9395

John Bloom

R & D Specialty/Manco

602-278-7700

Dustin Whaley

Resonant Solutions

602-288-6740

TM

visit: arizonatooling.org

may/june 2015

arizonatooling.org

PrecisionNews

21


ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

PrecisionNews // ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS MARK YOUR CALENDAR WITH THESE

ASSOCIATE MEMBERS

ARIZONA SPONSOR MEMBERS

UPCOMING ATMA EVENTS!

Richard Short

Adams Machinery

480.968.3711

Tim Nichols

Arizona Bank & Trust

480.731.7354

Greg Whelan

Arizona CNC Equipment

480.615.6353

Ty Miller

Clifton Larson Allen

480.615.2320

Linda Daly

A 2 Z Metalworker

602.412.7696

Kevin Draper

Comerica Bank

602.417.1188

Howie Basuk

Barry Metals

602.484.7186

Michael Cox

Joe Ciancio

Bralco

602.252.1918

MAY Federated Insurance 817.545.1500 5/11 Safety Meeting (General Safety Standards) 11:30 Steve Piotter at Phoenix Heat MSC Industrial Tool Treat, 2450 W. Mohave, Phoenix480.755.0415

Marc Bissell

CadCam/Geometric

480.222.2242

National Bank of Arizona Mike Hasenkamp 5/12 Combined Membership, Marketing & Program

623.872.2540

James Burriss

ChemResearch Co., Inc.

602.288.0394

atIndemnity Foresight Technologies, Meeting 11:30-1:00 Republic David Pettycrew

602.242.4602

Kerry Vance

Consolidated Resources

623.931.5009

Lou Gallo

DDi - Solidworks

602.241.0900

Steve Warner

EMJ Metals

602.272.0461

Mickey Gartman

Gartman Technical Services, Inc.

602.788.8121

Jackie Bergman

HUB International

602.749.4190

David Cohen

Industrial Metal Supply

602.454.1500

Tim Kloenne

Klontech Industrial Sales

480.948.1871

Jeff Trimble

Magnum Precision Machines

602.431.8300

Jim Algers

Makino, Inc.

602.228.0347

Thomas Moore

Moore Tool & Equipment

602.455.8904

Bob VonFleckinger

NFP Property & Casualty

480.458.6052

Glen Zachman

North-South Machinery

602.466.2556

Pete Hushek

Phoenix Heat Treating

602.258.7751

Bob Nichols

Phoenix Metal Trading

602.257.4660

Arlene Helt

Ryerson-Phoenix

602.455.3386

Dave Bolt

SBG Capital

480.897.4988

Jane Rousculp

Samuel Aerospace Metals

602.721.0176

Chris Tanner

Solid Products

480.206.0330

Russ Kurzawski

Star Metal Fluids LLC

602.256.2092

Megan Lenhart

SVS Group

623.687.8386

David Senkfor

Top Gun Consulting

602.510.5998

Donna Kordas

Tornquist Machinery Co.

602.470.0334

Greg Burke

TW Metals

602.864.0014

Doug Pratt

Ulbrich Stainless Steel & Spec.

203.234.3464

ATMA EVENTS IN MAY/JUNE 2015 May Board of Directors Mtng > 5/19 @ MicroTronics Roundtable MEETING > 5/27 @ Phx Airport Hilton, Upstairs meeting room 5:00-7:30

June Board of Directors Mtng > 6/16 @ MicroTronics SOUTHERN AZ Shop Tour > 6/tbd (Location and Time TBD) For more information contact Chris Mignella at: ExecutiveDirector@arizonatooling.org

22

PrecisionNews

arizonatooling.org

may/june 2015

1301 W. Geneva, Tempe 5/17 Board of Directors Meeting 11:30-1:00 at Micro-Tronics, 2905 S. Potter, Tempe, 85282

Welcome!

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

JUNE NEW ASSOCIATE MEMBER: 6/08 Safety Meeting (General Safety Standards) 11:30

at Leavitt Group, 919 & N. 1st St., Phoenix NFP PROPERTY CASUALTY

6/09W.Combined Membership, 2023 Guadalupe #2 Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, Mesa, AZ 85202 480.458.6052 1301 W. Geneva, Tempe Contact: Bob VonFleckinger 6/21 Board of Directors Meeting 11:30-1:00 at Email: bob.vonfleckinger@nfp.com Micro-Tronics, 2905 S. Potter, Tempe, 85282 6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

MANY THANKS TO OUR 2015 ATMA VALUED SPONSORS:

MANY THAN

TO OUR 2011 ATM VALUED SPONSOR


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

arizonatooling.org / 19

When it comes to finding smart tooling solutions, there’s no substitute for world-leading expertise. The yellow coat is your guarantee that you’ll get both the world’s finest tools and the know-how to make the most of them. With thousands of proven manufacturing solutions, we have the experience to help you cut cost per part produced, increase machine utilization and improve product quality in your applications. Sound interesting? Visit our website at www.sandvik.coromant.com or get in touch with someone in a yellow coat at 1-800-SANDVIK.

may/june 2015

arizonatooling.org

PrecisionNews

23


FeatureFocus SPECIAL ADVERTISING FEATURE

NANO Technology for Metalworking Fluids – A QUANTUM LEAP! In the current environment of Exacting Standards and Increased Requirements for On-Schedule Delivery and Maximum Productivity, an examination of the role of Coolant Materials in the Metalworking Process is warranted. With the need to maximize Tool Life and Minimize Downtime, the Coolant utilized in various forms of Metalworking has always played an important role, but the choices were, frankly, limited to a fairly narrow range of properties and outcomes - until now. Tool-X represents a Quantum Leap in terms of the Properties and Performance that can be expected from Coolant. Tool-X, which is a Nanotechnology-based Material that actually changes the characteristics of existing Metalworking Fluids, is a real Game-Changer for anyone doing Milling, Turning, Drilling, Grinding, Broaching, etc. Tool-X, which is, in fact an additive for existing coolants, whether water- or oil-based, represents a change so dramatic that historical calculations for Speeds and Feeds and the resulting Metal Removal Rates will have to be rethought and recalculated, to the Tool-X represents extent that it might actually entail a virtual a Quantum Leap in increase in in-place Productivity without terms of the Properties adding new equipment. Just think - quicker and Performance that turnarounds, less overflow work being sent can be expected out, greater ease in meeting demanding from Coolant. schedules - the impact is indeed dramatic! On top of that, you will find improved surface finishes, often critical in Aerospace and other critical applications, and greater adherence to dimensional accuracy without adjustments. And the improvements in Tool Life will be obvious, cutting both Tool Costs and Downtime associated with Tool Changes. What is Tool-X? It is a Nano Fluid like Rain-X and other Nano Materials that are suspended in liquids. Tool-X is made with Nano Onions of Graphene Material that

24

PrecisionNews

arizonatooling.org

may/june 2015

provides two different elements that increase Tool Life and Speeds and Feeds. What does Tool-X do? It increases Tool Life and Speed and Feed. It will also improve your surface finish, dimensional accuracy, and lower the heat in your sump. All of these factors combined add up to major cost savings for you. How does Tool-X work? Millions of Nano Particles are suspended in the Coolant and oil, and act like tiny ball bearings to radically reduce friction and the heat that results from it. Tool-X makes life easier, less stressful, and far more productive for everyone in your Operation from the Maintenance Supervisor to the Shop and Quality Managers and the CEO by allowing you to markedly increase the Operating Speeds of your Machines without worrying about excessive Heat, Tool Wear and Damage. Your Operators will be less Tentative and More Productive! While Tool-X has been under test and proven in Production in Aerospace, Automotive and other Industrial Applications for years, it is just now being made available for Purchase and Use in the American Southwest. Tool-X is currently under test and in use in several Arizona and California operations. Most notably, Dante Fierros, owner of Nichols Precision in Tempe, Arizona, and immediate Past President of ATMA has been pleased and impressed by the benefits they have observed in Surface Finishes, Faster Speeds and Feeds and Metal Removal Rates, and greatly Reduced Tool Wear and Replacement.

We are confident that you will see the same GameChanging Benefits in YOUR operation. Please contact Mike Rakowsky at bigmik@cox.net, 602.696.1553 to set up a demonstration and experience the results for yourself.


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

may/june 2015

arizonatooling.org

PrecisionNews

25


THE ARIZONA TOOLING AND MACHINING ASSOCIATION

FOCUSED ON THE FUTURE:

MANUFACTURING IN ARIZONA AND PROVIDING THE CAPABILITIES YOU NEED TODAY!

/

THE STATE OF ARIZONA has a broad and capable industrial base committed to providing low-cost manufacturing to OEMs

and Tier Ones around the world. Our agile and entrepreneurial small shops make Arizona’s high-tech manufacturing supply base one of the world’s most capable and cost-effective for machined and fabricated components. Our industry supplies the necessary precision tooling and machining for such vital industries as defense, automotive, aerospace, medical, appliance, business machines, electronics, agricultural implements, ordinance, transportation, environmental, construction equipment, nuclear and many more.

////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Arizona Tooling & Machining Association

ATMA PRECISION

Contact the Arizona Tooling and Machining Association and discover why doing business in Arizona will give your company the Competive Edge. CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752 executivedirector@arizonatooling.org

arizonatooling.org


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.