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ATMA ON THE LEADING EDGE: 2010 ATMA Board of Directors

PRECISION

The Premier Publication of the Arizona Tooling & Machining Association NOVEMBER/DECEMBER 2010 Issue TM

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Upcoming ATMA Events n

A New Optimism

WORKFORCE

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Working Together For All

INITIATIVE

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Helpful Websites

ATMA AND PARTNERS DEVELOP PJAM APPRENTICESHIP PROGRAM

EXTENDING CAPABILITIES NEXT-GENERATION PRODUCTIVITY, ACCURACY AND RELIABILITY FROM MAKINO p16

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New President Appointed at NTMA

BE A PROACTIVE LEADER Minimize the Impact of Hard Times with A Flexible Business Plan arizonatooling.org THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.

PLUS After the Election: Will Politicians Focus on the Economy? Happy Talk: What’s the Good News In the U.S. Economy?


It’s Our Business to Protect Yours



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ATMA


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480-804-0593 480-804-0527 Fax

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CONTENTS NOVEMBER/DECEMBER 2010

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MAGAZINE

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DEPARTMENTS 08 News Roundup 12 Legislative Update 14 Education Update 15 Websites You Should Know 16 Technology Update 28 Business Brief 30 Member Listings 32 Upcoming ATMA Events 32 Index of Advertisers

06 President’s Letter

FEATURES 18 Personal Initiative Defeating Procrastination

New President Appointed at NTMA

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Helpful Websites

26 Happy Talk The Good News In the U.S. Economy

Working Together For All

20 Proactive Leadership Make Critical Decisions Long Before a Crisis

A New Optimism

30 ATMA Members Directory

PRECISION

The Premier Publication of the Arizona Tooling & Machining Association NOVEMBER/DECEMBER 2010 Issue TM

Upcoming ATMA Events

07 Board of Directors

ATMA ON THE LEADING EDGE: 2010 ATMA Board of Directors

CONTENTS in this issue

WORKFORCE

INITIATIVE ATMA AND PARTNERS DEVELOP PJAM APPRENTICESHIP PROGRAM

BE A PROACTIVE LEADER Minimize the Impact of Hard Times with A Flexible Business Plan

EXTENDING CAPABILITIES NEXT-GENERATION PRODUCTIVITY, ACCURACY AND RELIABILITY FROM MAKINO p16

PLUS

After the Election: Will Politicians Focus on the Economy? Happy Talk: What’s the Good News In the U.S. Economy?

ON THE COVER A manufacturing apprentice polishes a metal part for finish on a lathe.


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We have the largest centerless grinder in the state!

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

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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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VOLUME 1, ISSUE 6 NOVEMBER/DECEMBER 2010

RIGHT. ON TIME.

The Premier Publication of the Arizona Tooling & Machining Association TM

MAGAZINE

PRESIDENT Trifon M. Kupanoff, Jr.

Hard Alloy Precision Machining Stainless Steels • Titanium • Maraging High Temp • Milling • Turning Cylindrical Grinding Serving the Aerospace, Defense, Medical and Alternative Energy Industries Boeing (Silver Supplier) • ATK Sargent • Lockheed Martin

PUBLISHER Michael A. Kupanoff EDITOR Tammy LeRoy CONTRIBUTING EDITOR Chris Mignella EDITORIAL INTERNS Travis Duprey, Trey Warren CREATIVE DIRECTOR Neal McDaniel ONLINE SERVICES DIRECTOR Theo Tigno CONTRIBUTING WRITERS Milton D. Erickson, David J. Hopkins, Elizabeth Kane, Marc Osborn, Jay Rifenbary, Jeff Thregold ADVISORY BOARD Chris Mignella, Mark Weathers, John Lewis, Dante Fierros, Mickey Gartman ACCOUNTING: Phone: 480.443.7750 ext.312 Email: accounting@lpimultimedia.com EDITORIAL AND ADVERTISING OFFICE: Precision Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 Phone: 480.443.7750 • Fax: 480.443.7751 Email: precisionmag@lpimultimedia.com SUBSCRIPTIONS AND BACK ISSUE ORDERS: Call: 480.443.7750 ext.312 or Email: precisionmag@lpimultimedia.com PLEASE SEND ADDRESS CHANGES TO: Precision Magazine 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 Email: precisionmag@lpimultimedia.com

Precision Magazine is published six times per year by LPI Multimedia Inc. Opinions expressed are those of the authors or persons quoted and not necessarily those of LPI Multimedia Inc. While efforts to ensure accuracy are exercised, the publisher assumes no liability for the information contained in either editorial or advertising content. Publisher assumes no responsibility or liability for unsolicited manuscripts or artwork. Reproduction in whole or part without the expressed written consent from the publisher is prohibited. Precision Magazine is the registered trade name of this publication.

AS9100 Certified by DNV

Copyright ©2010 by LPI Multimedia Inc. All rights reserved.

Mark Weathers, Owner 8737 NORTH 77TH DRIVE • PEORIA, ARIZONA 85345 P) 623.878.6800 • F) 623.878.0633 • C) 602.363.7929

Precision Magazine is a subsidiary of:

mark@excalpm.com • www.excalpm.com 15170 N. Hayden Road, Ste. 5, Scottsdale, AZ 85260 USA T 480.443.7750 F 480.443.7751 www.lpimultimedia.com 4 /


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

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20th

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kerry@consolidatedresources.com

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

GOT ATMA?

GET CONNECTED TO THE ATMA! • • • • • • • •

NETWORKING LOBBYING/LEGISLATIVE EDUCATION/WORKFORCE DEVELOPMENT BUSINESS DEVELOPMENT MEMBER DISCOUNTS TECHNOLOGY UPDATES INDUSTRY NEWS VENDOR & PRODUCT SHOWCASES

ATMA

ATMA VISION: Arizona’s preferred professional association, dedicated to the growth, health and prosperity of our tooling & machining members.

ATMA MISSION: “We join together as members of the Arizona precision custom manufacturing community to achieve business success in a global economy through advocacy, advice, networking, information, programs and services.”

“The Right Tools. The Right Team. The Right Time.” For more information contact: CHRIS MIGNELLA, arizonatooling@cox.net www.arizonatooling.org

PRECISION arizonatooling.org / 5


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PRESIDENT’S letter OUR MISSION: “WE JOIN TOGETHER AS MEMBERS OF THE ARIZONA PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

A NEW OPTIMISM:

CLOSE TO CAPACITY November, 2010 Having recently returned from the NTMA Fall Convention on Amelia Island in northeastern Florida, I would like to update the members on what I learned. As always with the NTMA conferences, I found the information sharing to be valuable and I urge all members to go to a conference to see for themselves. While cost can be a barrier, especially in these times, the next conference is right here in the Valley at Sheraton Wild Horse Pass Resort! is March, we will host not only the NTMA but also the Precision Metalformers Association, the Association of Machine Tools, and the Association of Machine Tool Dealers. With per diem registrations available, there is no excuse not to come out and hear the speakers and attend the roundtables to see what John and Chris and I are always talking about. Along those lines, the industry roundtables are everyone’s favorite venue as you can get real-time peer advice on industry conditions, equipment brands, sales tools, government trends, workforce development and every other topic you have interest in. One of my big takeaways from this trip came from the roundtables in which the majority of the attendees were having good sales years and running at or close to capacity. Granted, some of these guys are in automotive, so any improvement is a huge turnaround and the survivors are benefiting from their resilience. However even the aerospace and defense guys seemed to be very busy despite the continued softness of business aviation. I am hoping this trend will make it to our neck of the woods soon. Most of the shops were larger than our average shop in the ATMA—not sure if this is because the larger shops tend to be able to afford the trip or if we are more fragmented in Arizona. Another topic of interest was workforce development and apprenticeship programs, especially in light of the increasing workload. Many regions have active NRL and apprentice programs but all agree recruiting remains the biggest challenge. I was particularly interested in this since we are launching our own local apprentice program in 2011. e term “apprentice” doesn’t appeal to most Americans unless it’s associated with Donald Trump, so changing the perception is half the battle. Although most local apprentice programs are thriving, the annual NTMA apprentice competition was poorly attended and, consequently, has been dropped. A great role model for training is the Los Angeles NTMA training centers. ey have 500 students in machining classes at any one time, and their top student won the William Hardeman award for education. In addition, we are teaming with Jim Ragaissis in L.A. to put on an NRL match at the March conference in Chandler. We had some very good speakers, most notable was the popular and entertaining economist, Jeff redgold, who was fairly optimistic about continued growth in the economy, albeit growth that is slow and steady. At least the dreaded double-dip was not on his radar screen, and he predicts the pent-up demand from sideline sitting corporations should unleash after the elections if Republicans regain influence and stability returns. e recent “Great Recession” was (is?) the longest and most severe downturn since the Great Depression. Look for excerpts from Jeff’s popular Teal Leaf emails in Precision News magazine. Also notable was a speaker from the Ayn Rand Institute reminding us that making money is a good thing for the country, counter to the implications of current administration policy decisions. Capitalism is still the best system, even with its faults.

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OUR VISION: ARIZONA’S PREFERRED PROFESSIONAL ASSOCIATION, DEDICATED TO THE GROWTH, HEALTH AND PROSPERITY OF OUR TOOLING & MACHINING MEMBERS.

ATMA PRECISION 2010 ATMA Board of Directors President Mark Weathers Excaliber Precision Machining Vice President Joe Sirochman JPS Manufacturing Executive Director Chris Mignella

ere have been some really big changes at the NTMA as the admin team is re-formed and co-located with the PMA staff in Cleveland. Many of the longtime NTMA staff are not moving, and many of the admin duties will transition to the third part Metalworking Service Institute (MSI), shared by both associations. Additionally, we have a new NTMA President, David Tilstone, and Vice President, Ken McCreight, who will give some much needed full-time professional leadership to the group. e many teams and committees have been consolidated under three oversight teams: Workforce Development, Member Value and Industry Advocacy. e changes are brand new and there is still some turmoil, but the new president and the renewed focus bode well for the coming years. On a sad note, Chairman Russ Reschke resigned following the demise of his business as a result of the automotive market challenges. I believe the ATMA and NTMA are the same in that you only get out of them what you put in. Attending the conferences is the best way to get your money’s worth from the NTMA and I hope to see everyone in our chapter—regular and associate members alike—at the March Convention in Chandler. Let’s show the rest of the country why Arizona is the best and most active chapter in the NTMA! MARK WEATHERS PRESIDENT, ARIZONA TOOLING AND MACHINING ASSOCIATION

Treasurer Maxine Jones PPG-Aimco Division Secretary David Lair Dynamic Machine & Fabricating Trustee John Lewis Lewis Aerospace Board Members Dante Fierros Nichols Precision Bob Marusiak Micro-Tronics, Inc. John Raycraft Arizona Precision Industrial Greg Chambers PPG-Jet Division Jeremy Lutringer Unique Machine & Tool Gary Watkins MarZee Associate Member Liaison Mickey Gartman Gartman Technical Services Arizona Tooling & Machining Association A Chapter of the National Tooling & Machining Association P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.242.8826 Fax: 480.970.8501 arizonatooling@cox.net

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MAGAZINE

“The Right Tools. The Right Team. The Right Time.” arizonatooling.org

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NEWS roundup

OUR MISSION: “HELP MEMBERS OF THE U.S. PRECISION CUSTOM MANUFACTURING INDUSTRY ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS, AND SERVICES. ” OUR VISION: BECOME THE PREMIER CENTER OF KNOWLEDGE TO LEAD THE U.S. PRECISION CUSTOM MANUFACTURING INDUSTRY IN CONTINUING WORLD LEADERSHIP.

NTMA NEWS NEW PRESIDENT APPOINTED AT NTMA! The National Tooling & Machining Association announced that David (Dave) Tilstone took the helm as President October 1, 2010. With an extensive background in manufacturing and association leadership, Mr. Tilstone brings his vast experience and global insight to the Association and will guide it into the future. His proven track record of identifying opportunities and expanding business in publicly and privately held organizations will best position the Association as it continues forward with its strategic initiatives. Mr. Tilstone comes to NTMA with over 35 years of metalworking experience. Throughout his career, he held leadership positions with Kennametal and Extrude Hone where he was instrumental in developing and implementing growth strategies and improving operating results. With extensive knowledge and experience leading organizations that supply the industry, Mr. Tilstone has a great appreciation and passion for precision manufacturers and understands their needs.

Mr. Tilstone received his Master of Science at North Carolina State University and his Bachelor of Science and Bachelor of Art at the University of Connecticut, and he has completed numerous industry specific trainings. “In my many years working in the industry, I have yet to see a more dedicated group of people as those manufacturers represented in the NTMA”, says Tilstone. “I am extremely excited to have the opportunity to serve this Association and be part of such an extraordinary group.” n

ABOUT THE NTMA The NTMA is the national representative of the custom precision manufacturing industry in the United States. Many NTMA members are small businesses, privately owned and operated, yet the industry generates sales in excess of $40 billion a year. Our nearly 2000 members design and manufacture special tools, dies, jigs, fixtures, gages, special machines, and precision machined parts. Some firms specialize in experimental research and development work.

Recognized internationally, Mr. Tilstone has extensive experience in promoting domestic manufacturing capabilities to global markets. His ability to market America as a manufacturing leader provided his prior companies with significant organizational growth and market share. His knowledge and insight will greatly serve the members of NTMA in their continuous battle of global competitiveness.

The tooling and machining industry is critical to our country’s economic health as it makes possible the existence of virtually every other manufacturing industry. Tooling is, in its simplest sense, the means of production. “Special” tooling, such as dies and molds, is custom designed and made to manufacture specific products, generally in quantity, and to desired levels of uniformity, accuracy, interchangeability, and quality. Machining involves the use of a wide variety of machine tools to cut or form material, usually metal, to precise shapes and dimensions.

No stranger to associations, Mr. Tilstone has held board positions with the Association for Manufacturing Technology (AMT), the American Heart Association, the University of Pittsburgh and others. While at AMT, he was chairperson for the Marketing, Sales and Service Committee and a recent board member.

NTMA member companies use the full range of machine tools and related equipment, ranging from small automatic lathes for miniature parts, to enormous boring mills. The industry is probably the most technologically-advanced of all small manufacturing activities, and enjoys widespread deployment of computernumerically-controlled (CNC) machines and other computer-aided design and manufacturing (CAD/CAM) techniques.

NTMA Vice Chairman and leader of the Search Committee Grady Cope says, “We are fortunate to have found someone of Dave’s talent to serve the NTMA. His ability to understand our industry and the importance it has on our economy will help fortify NTMA as the leading manufacturing association, and his background and proven track record will also be instrumental in marketing manufacturing in America.”

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Our industry supplies the necessary precision tooling and machining for such vital industries as defense, automotive, aerospace, appliance, business machines, electronics, agricultural implements, ordnance, transportation, environmental, construction equipment, nuclear, and many more. NTMA members are organized into 49 local federated chapters and tool centers throughout the country.


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Richter Machine & Design Has Joined Forces with Accurate Waterjet

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.

Paul Lemaire, Accurate Waterjet Arnie Lytle, Richter Machine & Design

Ph: 480-736-2422 Fax: 480-292-9304 Cell: 480-510-7550 paul@accuratewaterjet.com www.accuratewaterjet.com

Ph: 480-736-1736 Fax: 480-736-1740 Cell: 480-773-0115 arnie@rmdwaterjet.com www.rmdwaterjet.com

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NEWS roundup

NTMA NEWS

continued

Please send your news item of interest or press release to: precisionmag@lpimultimedia.com

Access to credit for manufacturers Manufacturers continue to tell us they face challenges accessing timely and adequate credit as the economy improves. We took the lead for small manufacturers in Washington and proposed several solutions to the small business credit crisis. Through our voice in the Administration and the Manufacturing Council, we succeeded in making this a top priority for President Obama. The House of Representatives passed a bill in June 2010, following several months of work with us, to help improve access to credit. Cap and Trade Manufacturing Tax defeated A domestic manufacturing facility tax on emissions was a central point of the climate change overhaul legislation that has stalled in Congress due to opposition from manufacturing companies. The domestic production tax would have added thousands in increased costs and penalties on U.S. manufacturers while giving foreign competitors a free ride. National Currency Manipulation Call-In Day The organization led an effort to hold a National Currency Manipulation Call-In Day where thousands of manufacturers, farmers, and others called Congress asking them to move on legislation to stop illegal currency manipulation by China and others.

THE NTMA/PMA “ONE VOICE” COALITION WORKING TOGETHER FOR ALL Our Successes: We Continue to Make a Difference Stopped Employee Free Choice Act for three straight years Despite unions spending over $400 million since 2007 to pass the Card Check bill, we have successfully killed the bill each year and are fighting to beat it back again in 2010—whether voted on by Congress or in a lame duck session after the November elections. Developed a National Manufacturing Policy The U.S. is the only industrialized nation to not have a formal manufacturing strategy. The organization took the lead in drafting a Small and Medium Sized Manufacturing Strategy which was sent to the Obama Administration. In July 2010, the House of Representatives passed a bill following our input to establish a national manufacturing strategy, which the White House must review every four years. Defeated SEIU/AFL-CIO nomination to NLRB The organization sent hundreds of letters to the U.S. Senate just hours before the failed vote on Craig Becker’s nomination to the National Labor Relations Board, which hears all labor policy enforcement and organizing activities. Becker was the top lawyer for the AFL-CIO and SEIU and the author of the Card Check legislation (Employee Free Choice Act).

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Increased funding for job training for seven consecutive years For example, we increased funding for training from zero in the President’s budget in 2002 to $125 million per year for the manufacturing extension partnership program (MEP). Tax credit provisions extended Few sections of the federal tax code support manufacturing in America. We have successfully extended the Research and Development Tax Credit 14 times, expanded Bonus Depreciation and Section 179 Expensing, expanded the Section 199 Domestic Production Tax Credit to 9 percent. The NTMA is the largest U.S. metalworking trade association and its mission is to help members of the U.S. Precision Custom Manufacturing industry achieve business success in a global economy through advocacy, advice, networking, information, programs and services. For more information about the NTMA, go to www.ntma.org, call 800.248.6862 or write info@ntma.org. n

GET CONNECTED TO THE ATMA! For more information contact: CHRIS MIGNELLA, arizonatooling@cox.net www.arizonatooling.org


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LEGISLATIVE update

AFTER THE ELECTION POLITICIANS SHOULD FOCUS ON THE ECONOMY On Nov. 2, the 2010 election campaign finally and mercifully came to an end. It was a pivotal election for the U.S. and Arizona, as the economy continued to struggle and people across the U.S. continued to feel the pain from record-high unemployment rates and a devastated housing market. As a lobbyist for the manufacturing industry, a campaign consultant, and close watcher of all things political, I paid special attention to the 2010 campaigns.

Over the past months, I’ve reviewed giant stacks of political mail, listened to countless automated calls, viewed way too many debates and watched an endless array of television ads. If I were to categorize the 2010 campaign, it was not about new vision: It was about putting down your opponent. Whether Republican, Democrat or Tea Party, this election was all about who can be the most punitive and negative about their opponents. The mood in the country was sour on election day and the candidates feasted upon the voters’ despair. I am not surprised by the overwhelming negative message of the campaign. I am sure that campaign consultants all read the same polls that said the voters were angry and the straight line to election day success was to direct the voters’ anger toward your opponent. Unfortunately, all of the negative advertising only enhanced the despair about the economy and made the nation’s mood worse. I was naively hoping that this election campaign would be about bold new ideas to get our economy growing and a somber and realistic discussion about fixing the federal and state fiscal crises. Unfortunately, I was sadly disappointed as this election was not about new ideas but about proving that my opponent is much worse than I am. Now that the election is over, it is time to govern in this era of extreme pessimism. Candidates on both sides of the aisle need to focus on making the U.S. and Arizona economically competitive. For much of the 2000s, the U.S. has grown complacent about our international competitiveness. The pre-recession economic success masked a harsh reality that the policy environment across the U.S. placed businesses, especially manufacturers, in an increasingly less competitive position than our competitors.

CONTINUING IN OUR EFFORTS to bring you the highest level of current information regarding all things “legislative,” we present to you the remarks of Marc Osborn, Deputy Director of Government and Public Affairs for R&R Partners.

there are not disadvantages placed on U.S.-based manufacturers by competition-limiting public policy. Foster the Development of a Robust Workforce: If the U.S. is going to compete in the global marketplace, it is not because we have the cheapest labor. Our competitive advantage must come from a dynamic, well-educated and properly trained workforce. The high-profit companies of the future are the ones who win the innovation battle. Our education systems, both higher education and K-12, were once an advantage for the U.S. Improvement in the productivity of K-12 and higher education must be at the forefront of policy makers' minds or we will see capital and high-wage jobs grow faster outside of the U.S. than inside. Opening Trade Routes: Exports must increase if the U.S. is going to return to fiscal health. The heavy trade imbalances with China and other major nations must be turned around. Working aggressively to open new markets to U.S. manufacturers is essential. The past decade was one in which we used foreign capital to finance our debt. We need to change that equation so that we are using foreign capital to pay for the products we are exporting. Creating a Culture of Competitiveness: Washington, D.C., and state capitols across the U.S. need a culture change. Instead of worrying about interest-group politics, they need to evaluate how their public policy decisions impact the economic competitiveness of the U.S and their states. Understanding the competitive pressure of businesses that compete in a global economy is the first step.

So, what should we expect out of elected officials who survived the 2010 campaign? We need to ask them not what they oppose but what are they willing to support. It is time to remake our economy and move from being one based too much on consumption to one that uses robust exports to fuel our economic success. Where should our elected officials focus their attention?

As you visit or communicate with the newly elected officials, please get them to focus on economic competitiveness. Republican, Democrat or Tea Party, our problems will not get better unless our economic situation improves. Only if we out-compete other nations and other states will the U.S. and Arizona economically recover. n

Keeping the Cost of Doing Business Competitive: Whether it is energy costs, taxes, the legal environment or regulatory burdens placed on the U.S. businesses, our policy makers must work to ensure that

Marc Osborn is Deputy Director of Government and Public Affairs for R&R Partners’ Phoenix office. INFOLINK: www.rrpartners.com

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MEETING THE GROWING CHANGES OF INDUSTRY

Accuwright Industries, Inc. is a full service Metal Spray facility utilizing State of Art Robotics and Controls for precision Flame Spray applications. Featuring Plasma Flame Spray, Twin Wire Arc Spray, Combustion Powder/ Wire Spray, and HVOF (High Velocity Oxygen Fuel) Spray. With Quality programs and certifications such as ISO 9001-2008 and FAA Repair Certificates we can meet the growing changes of your industry. Recently combined with our Metallizing capabilities, we now have the Cold Gas-Dynamic Spray (Low Pressure Cold Spray) available for specialized services.

PHOENIX METAL TRADING, INC. Industrial Scrap Specialists OUR MISSION:

Refurbish worn or damaged shafts/spindles? • Don’t throw away those worn shafts/spindles • Think green and repair • Surface restoration for worn or damaged shafts/spindles • Similar and Hard surfacing repair for longer life Over/under sized machined parts? • Don’t weld • Don’t throw away • Let us rebuild material on incorrectly machined parts • Coatings to match part material • Coatings to provide harder materials • Increase longevity Can’t quote that new job? Never heard of Flame spray? • It is called Metallizing, Thermal Spray, Plasma Spray, HVOF Spray, Arc Spray, Combustion Spray, Cold Spray • We can do it • Material engineering • Quick turn around times Benefits? • Fast turn time • Engineering services • Friendly Service • Knowledgeable Staff • Pick-up/Delivery Valley wide • Consulting/Specification selection • In-house testing procedures

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 Accurate Thermal Spray Technologies Accuwright Industries, Inc. Contact: David Wright 480.892.9595 (toll free 877.247.9108) www.accuwright.com

www.phxmtl.com SCRAP METAL/RECYCLING SINCE 1989 • ATMA MEMBER

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EDUCATION update

EMBRY RIDDLE AERONAUTICAL UNIVERSITY, PRESCOTT

AZ “BATTLEBOT” STUDENTS WIN NATIONAL CHAMPIONSHIP

MANUFACTURING TRAINING WITH AzPJAM ATMA PARTNERS DEVELOP A PRECISION MANUFACTURING APPRENTICESHIP PROGRAM by MILTON D. ERICKSEN Few would argue with the notion 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 a Precision Manufacturing Apprenticeship program. This partnership effort in modeled after the National Tooling and Machining Association’s Precision Jobs for American Manufacturing (PJAM) effort. PJAM 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. Arizona’s PJAM Workforce Initiative (AzPJAM), will mirror, in many ways, the national PJAM activities in the areas of recruitment, training, placement, retention,

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and implementation. Additionally, AzPJAM will look to implement a parallel and complementary apprenticeship program in an effort to ensure a continual additional supply of very well qualified technicians. Although the program requires significant commitment from both the apprentice and the sponsoring employers, the benefits derived are well documented. A robust attraction effort, followed by a comprehensive assessment process will help ensure that only qualified individuals will be accepted into a pre-apprenticeship program of study. Although many may satisfactorily complete the pre-apprenticeship training, limited resources will initially restrict the number of individuals who can be accepted into the apprenticeship program. Those who do not make the initial cut will be afforded the opportunity to seek program acceptance in the future. We are confident that these individuals will possess the skills necessary to be immediate and valuable contributors to an organization’s operation. Unfortunately though, they may have to rely on their own financial resources to continue their formal education, which would follow a parallel

OEM WORKFORCE DEVELOPMENT, PHOENIX

educational pathway to those accepted into the program. On Sept. 30, the AzPJAM task group presented a draft of an apprenticeship program to a representative group of precision manufacturing organizations. Although there were a number of very relevant questions, as well as some concerns, the overall consensus of the group was to continue the efforts to bring this program online. A copy of the Sept. 30 presentation can be found at http://grovesite.com/htwi/azpjam and then clicking on the AzPJAM Apprenticeship link in the left hand sidebar. The apprentice program is expected to commence in January 2011. For more information, contact Rick Hansen, 480.731.8204, or email to rick.hansen@domail.maricopa.edu. n

Milton D. Ericksen is Deputy Associate Superintendent, State Director of Career and Technical Education for the Arizona Department of Education.


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Arizona Department of Commerce – Job Training Grant application www.azcommerce.com/workforce Arizona Department of Education www.azed.gov Arizona Manufacturers Council www.azchamber.com/amc Arizona MEP www.arizonamep.org Arizona State University Mechanical & Manufacturing Engineering Technology www.poly.asu.edu/technology/mmet/

Advantages of Leach Laser Marking • Permanent non-contact product identification • Serialization; Frequent message changes • Character sizes as small as .02” in hard to mark places • High quality, high visibility marks • Low cost compared to many marking methods

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Greater Phoenix Chamber of Commerce www.phoenixchamber.com Human Resources, Safety & Environmental topics of interest (Also see a link on the NTMA website, www.ntma.org) www.blr.com Maricopa Skill Center www.maricopaskillcenter.com Maricopa Community Colleges www.maricopa.edu Maricopa Workforce Connection www.maricopaworkforceconnection.com Mesa Community College www.mc.maricopa.edu Mesa High School www.mpsaz.org National Institute for Metalworking Standards www.nims-skills.org National Tooling & Machining Association www.ntma.org One Voice Advocacy www.metalworkingadvocate.org SCF Arizona www.scfaz.com U.S. Department of Labor www.dol.gov

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TECHNOLOGY update

SPECIAL ADVERTISING FEATURE

MAKINO. A BRIEF HISTORY 1937 Tsunezo Makino establishes the company. 1953 Develops a super-precision universal cutter & tool grinder. 1958 Develops Japan’s first NC milling machine. 1966 Develops Japan’s first machining center. 1972 Develops transfer line (FMS) consisting of adaptive control machining centers. 1978 Acquires interest in Heidenreich & Harbeck, Germany. 1980 Develops the N/C Electrical Discharge Machine. 1981 Purchases LeBlond Machine Tool Company in Cincinnati, Ohio. 1982 Develops the DMS Commercial Automatic Die and Mold Machining System. 1983 Makino’s Flexible Manufacturing System factory starts operation. 1984 Introduces the industry’s first highspeed spindle. 1984 Develops first 5-axis controlled machining center. 1986 Introduces first Intelligent Adaptive Control System. 1986 Develops the Module MMC (Makino Machining Complex). 1989 ntroduces the A55, revolutionizing horizontal machining centers. 1990 R&D Center becomes operational. 1990 ntroduces Geometric Intelligence, the first servo-control software to provide higher machining speed with enhanced accuracy. 1990 Develops Flush Fine machining, revolutionary method for cutting hardened materials. 1994 Introduces award-winning, highprecision U-Series Drop Tank Wire EDM. 1996 Develops 3-D die/mold CAD/CAM system. 1996 Introduces HQSF™ (High-Quality Surface Finish) technology with patented uSc additive. 2002 Introduces EdCAM™ offline software for programming and automating EDM machinery. 2003 Makino R&D Center becomes operational. 2003 Develops world’s first conventional horizontal wire EDM that automatically threads and machines with a 0.02 mm diameter wire. 2006 Develops HEAT for wire EDMs, increasing machining speed by up to 40 percent. 2007 Develops the SurfaceWIZARD™ wire EDM technology, which allows for the elimination of witness lines in stepped parts.

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MAKINO’S NEW MACHINING EXTENDS CAPABILITIES NEXT-GENERATION PRODUCTIVITY, ACCURACY AND RELIABILITY Makino’s new a51nx and a61nx horizontal machining centers extend the capabilities of the highly successful aseries with a host of technologies for nextgeneration productivity, accuracy and reliability. Designed with larger work envelopes, improved casting designs and spindle and axis guide enhancements, the nx machines offer rigidity, speed and precision far beyond that of typical 40-taper machines. The a51nx and a61nx models boast expanded axis travels to accommodate larger parts, or more parts per fixture. The a51nx features a 560-mm (22.0-inch) X-axis and extended Y- and Z-axes of 640 mm (25.2 inches) for an industry-leading total axis volume of 8.1 cubic feet. Its additional Y stroke yields a 14 percent larger working envelope. The standard a61nx features a 730 mm (28.7 inches) X-axis, 650 mm (25.6 inches) Y-axis and extended Z-axis of 800 mm (31.5 inches). An optional tall column on the a61nx expands the Y-axis to 730 mm (28.7 inches), making it beneficial for large die-cast or near-net-shape applications. Thanks to the expanded Z-axis stroke, maximum tool length on the a51nx and a61nx models is increased to 430 mm (16.9 inches) and 510 mm (20.1 inches), respectively.

Increased Spindle Power The a51nx and a61nx machines offer new, more powerful standard and optional spindles. The standard spindle is a 14,000rpm design with 240 Nm of duty-rated torque and 22 kW of continuous output, a 19 percent increase over the previous model. An optional 300-Nm spindle, designed for high metalremoval rates in ferrous applications, is also available. Along with the two new spindles, the current 20,000-rpm core-cooled spindle remains available as an option on the a51nx and a61nx machines. Higher Machine Strength and Rigidity Casting design and axis guide improvements of the nx machines deliver higher stiffness, load capacities and precision. A new crossed roller guide design yields improved rigidity for higher metal-removal rates, reduced vibration and improved tool life. Several major casting enhancements coupled with the use of cross roller guides enable customers to effectively use the additional 14 percent Y-stroke. Improved Productivity The nx machines are designed with a 1G-axis acceleration, supplemented by high-power servo motors and enhanced casting rigidity for faster acceleration.


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Additionally, nx models have a standard Direct Drive (DD) motor B-axis table for dramatically faster indexing time over the previous worm-gear-driven NC rotary table (NCRT). The motor includes an inertia control system that adjusts table speed and acceleration based on pallet payload. The speed of the DD motor may lead to fewer machines being required for high-volume, high-tool-count automotive applications. The DD motor table also reduces B-axis complexity, and eliminates backlash and key component wear.

THE A51NX AND A61NX MODELS BOAST EXPANDED AXIS TRAVELS TO ACCOMMODATE LARGER PARTS, OR MORE PARTS PER FIXTURE.

Expanding Reliability Makino’s a-series machines have a reputation for reliability as well as low maintenance. The nx machines leverage this proven design to advance reliability with new features. The ATC shutter door typically sees millions of cycles over the life span of a machine. On nx machines, a high-speed servo-driven ball screw actuates the ATC shutter door, improving responsiveness, ease of setup and maintenance. The servo axis also reduces exposure of the ATC to the work envelope. The net result is improved reliability and cleaner ATC environments. n

ABOUT MAKINO A WORLD LEADER IN ADVANCED CNC MACHINING CENTERS, MAKINO PROVIDES A WIDE RANGE OF HIGH-PRECISION METAL-CUTTING AND EDM MACHINERY, INCLUDING HORIZONTAL MACHINING CENTERS, VERTICAL MACHINING CENTERS, 5-AXIS MACHINING CENTERS, GRAPHITE MACHINING CENTERS, AND WIRE AND RAM EDMS. OUR FLEXIBLE AUTOMATION SOLUTIONS REDUCE LABOR COSTS AND INCREASE THROUGHPUT IN A VARIETY OF PRODUCTION VOLUMES AND DESIGNS. WITH MAKINO ENGINEERING SERVICES, WE OFFER INDUSTRY LEADING EXPERTISE FOR EVEN THE MOST CHALLENGING APPLICATIONS ACROSS ALL INDUSTRIES. For more information call 1.800.552.3288, or visit www.makino.com.



above: Makino’s new a61nx horizontal machining center.

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FEATURE story

Personal Initiative DEFEATING PROCRASTINATION by JAY RIFENBARY

One of the questions I ask leaders when conducting my workshop training seminars is, “What social trends are you witnessing that have created an increase in your challenge to effectively lead others?� A common response is, an acceptance of mediocrity and the lack of initiative among employees. The existence of this attitude promotes procrastination and is devastating to the efficiency, productivity and profitability of an organization. It depletes individual creativity, innovation and a spirit of risk taking because of the lack of assertiveness being promulgated by the workforce.

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A lack of assertiveness and initiative stimulates the fundamental reasons behind procrastination.

is same attitude when transferred into our personal lives has similar consequences. Initiative is defined as “the ability to assess and initiate things independently; the power or opportunity to act or take charge before others do; an act or strategy intended to resolve a difficulty or improve a situation; a fresh approach to something.” Assertive is defined as “having or showing a confident and forceful personality.” Do you personally accept mediocrity, lack initiative and procrastinate in regard to your potential to excel in life? Are you taking the steps necessary to become increasingly assertive in making decisions, accomplishing tasks, and welcoming opportunities to expand into a better you? Personal initiative plus assertiveness eliminates procrastination. A lack of assertiveness and initiative stimulates the fundamental reasons behind procrastination. ose are the fears of failure and the unknown. Without having a confident personality and the belief in yourself to act independently, putting off what you know needs to be done is easy, and sustains those fears. In addition, deciding a task is too difficult or stressful to initiate and complete is only an excuse for not taking ownership for the responsibilities one has created in their personal and professional life.

because it delays acting on the core values that enhance personal pride and self-respect. If you do not act on what needs to be done, how can you grow as a person and as a professional? Procrastination can be aligned conceptually to a lack of forgiveness because both behaviors allow for incomplete and unresolved issues. Both human frailties direct energy toward a path that is self-destructive. e burden to carry what still needs to be completed drains the human spirit and stifles initiative. All of us know individuals who cannot let things go, whether it be hurts from past relationships, employment or even personal failures. Are you one of those individuals? Procrastinating on not forgiving yourself or others only creates further frustration, anger and disappointment because it directs wasteful energy toward what was, instead of directing productive energy toward what can be. What do you have to lose by being assertive and taking the initiative? If you are honest in your attempt at resolving an issue or accomplishing a task, there is nothing to lose, only to gain from the success or learn from the mistakes made in the process. As many notable leaders have said, “It is better to have tried and failed than to have never tried at all.” n

Jay Rifenbary is President of the Rifenbary Training & Development and author of the best-seller, No

It is the understanding and implementation of your core values that provide the strength to be assertive and take the initiative. Your core values provide a foundation to execute present and future actions. Structured and defined core values in an organization create the blueprint to hold employees accountable as they enable us to hold ourselves accountable. Procrastination diminishes self-esteem

Excuse!: Incorporating Core Values, Accountability and Balance into Your Life and Career. He was a

FIVE BASIC PRACTICES TO OVERCOME PROCRASTINATION ARE: • A belief in yourself that the task at hand can be accomplished successfully; • Having the discipline to set aside time and energy to initiate what needs to be completed; • Managing effectively and following through with the process to its completion; • Evaluating the completed task by thoroughly reviewing the process to assess ways to improve in the future; • Celebrating the achievement by appreciating yourself and recognizing those who have assisted in the achievement. Anyone can make a decision not to do something, but if that something is important and contributes to the betterment of you, your family and your profession, then step up to the plate, take action and hit the home run by thinking more of others than yourself. Initiative combined with assertiveness creates a team destined to succeed, and you are that team.

keynote speaker at the recent ATMA Fall Conference.

INFOLINK: www.rifenbary.com

Editor's Note: This article was reprinted with permission from Jay Rifenbary’s October 2010 blog. Catch his blog monthly at www.rifenbary.com/jays_blog. arizonatooling.org / 19


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FEATURE story

Proactive Leadership MAKE CRITICAL DECISIONS LONG BEFORE A CRISIS by DAVID J. HOPKINS

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The last several years have been challenging for most business leaders, and many have made difficult decisions to maintain the health of their organizations. In some cases, those decisions were made proactively. e decisions were evaluated and carefully considered while the company was not under the economic stress of a recession, which allowed those leaders the flexibility to explore many well-reasoned and cohesive options. Other organizations did not plan or respond until the company neared a crisis point. ese leaders found themselves with limited options and draconian solutions that often sacrificed the long-term strategy of the company in the name of survival. Some organizations are able to respond quickly to a changing business climate because they're prepared for multiple scenarios. ey accept that predicting the future is, at best, an educated guess, so they develop business plans based on a range of possible situations. A typical plan would outline how a company responds to three situations. For example: • Sales volumes are as expected • Sales volumes are below expectations by 25 percent • Sales volumes exceed goals by 25 percent

Leaders map out each scenario and include the specific actions that need to be taken. e end for each situation, but the majority of the plan describes the operating decisions that turn it into reality. Each scenario examines four key areas of the business and articulates how they are impacted at each sales volume level.

A plan for unexpected growth in volume is necessary to help mitigate the tendency to overspend during good times. As the last two years have shown, the good times don’t last forever, and it’s a healthy practice to maintain strong spending discipline even when sales are strong.

Structural Elements Structural elements of a business include buildings, equipment, information systems, and land. ese elements often define the capacity of a company and tend to drive many of the costs in an organization, which makes them a critical part of a planning activity.

Project Funding and Investments As part of the annual business planning process, most companies target certain projects for investment. ose might include new product development, facility expansion or improvement, or a new process or technology. A comprehensive scenario describes how the project funding would change if events don't unfold according to the plan.

Although they are often called fixed costs, they are not necessarily permanent— though they're difficult to change. To adjust them is painful, risky and expensive, which leads to a natural resistance to address these areas. Because these structural elements are so closely related to costs and capacity, it’s crucial they are carefully evaluated in each scenario. People A people plan describes more than headcount and the associated costs; it describes the skills and competencies that will be needed. Developing growth scenarios typically involves adding key talent to the organization and is an energizing exercise. Unfortunately, creating the plan for a drop in volume is a difficult and emotionally draining process. Again, the best time to consider a strategy for a loss in sales volume is before it is needed. A proactive plan can include many options: shorter hours, pay reductions, in-sourcing, forced vacations, voluntary layoffs, furloughs, and early retirements can all reduce the impact of slow sales volumes on the employees and their families while still meeting the needs of the business. ese tools may not be available to a company forced to operate in crisis mode.

ese investments are often expected to become the long-term value drivers for the company, but they also tend to consume internal resources and cash rapidly. Given the critical nature of these projects, scenarios should articulate when an investment should be accelerated, decelerated, or stopped altogether. e difference between a business that can effectively and successfully flex, adapt and respond in times of uncertainty and one that cannot is often the leadership. Leaders who have planned well can fall back on a pragmatic and data driven approach to managing the highly emotional issues that arise when a company is under stress. ey rely on the leading indicators (daily sales, current work backlog, and/or leading economic trend data) to drive action. And they rely on a plan that was carefully considered long before it was needed. n

Dave Hopkins is a manufacturing and distribution principal with LarsonAllen. He can be contacted at dhopkins@larsonallen.com or 480.615.2300.

Operating Expenses Operating expenses include a wide range of activities, including travel, training, service contracts and supplies. When creating a plan for a sales volume shortfall, classic “belttightening” measures are necessary. It is typical to cut discretionary spending in order to avoid more drastic actions such as a reduction in the workforce.

INFOLINK: www.larsonallen.com

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Grinding the Tough Stuff Blue Streak Grinding, Inc. is a modern and clean facility dedicated to providing precision grinding services of the highest quality with “Blue Streak” turnaround times. Staffed with a compliment of experienced machine operators, engineers and management personnel, Blue Streak specializes in difficult jobs, exotic materials and tight tolerances. With capacities ranging from one-piece research and development projects to high production quantities, Blue Streak can meet all your fine tolerance grinding needs in the aerospace industry.

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ATMA_0106_Layout 1 11/8/10 5:22 PM Page 24

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are key decision makers that you as advertisers and sponsors, want to target. Our readers strive to stay up-to-date on the latest in business, education, legislation, technology, industry news and updates. ey want an edge in a constantly evolving industry, and they find it in Precision Magazine.

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FEATURE story

Happy Talk THE GOOD NEWS IN THE U.S. ECONOMY by JEFF THREDGOLD

The “dismal science” of economics typically focuses on “bad” news. We clearly face many significant challenges …no argument here. However, there are also many favorable developments taking place within the U.S economy. This is our semi-annual update of “Happy Talk.” This Tea Leaf focuses ONLY on the “good” news … • Economic output of the average American worker is 10 times that of China's. Americans won 30 Nobel prizes in science and economics during the past five years. China?… just one. • e value of a university education for American men and women in terms of future earnings power is nearly twice that of those in the average rich nation. • Violent crime in the U.S. declined during 2009 for the third consecutive year. Reported property crime is at a 20-year low. • Even as U.S. economic output (GDP) has climbed by more than 210 percent since 1970, aggregate emission of six principal air pollutants has plunged by 60 percent • e U.S. Justice Department said the number of juvenile offenders declined 26 percent between 2000 and 2008. • During the early 1960s, the five-year survival rate from cancer for Americans was one in three. Today it is two in three … continuing to climb … and is the highest in the world. • A recent poll of more than 12,000 global business figures conducted by the World Economic Forum ranked the U.S. as the world’s most competitive economy. 26 /


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Roughly half of the 50 states have added jobs during the most recent 12-month period. Formerly, every state had dealt with recession at some point during the past three years.

• e earnings gap between men and women has shrunk to a record low. Women, on average, earn 83 percent of what men earn, versus 76 percent a decade ago. Women with comparable education and experience earn comparable incomes. • Conventional 30-year fixed-rate mortgages have averaged 4.35 percent in recent weeks, the lowest level in nearly 50 years. • For every dollar of U.S. economic output generated today, we burn less than half as much oil as 30 years ago. • Women have drawn even with men in holding advanced degrees in the U.S. • Men’s contribution to housework has doubled over the past 40 years, while their time spent on child care has tripled. • Roughly 47 percent of science and engineering degrees of those ages 25 to 39 are held by women, compared with 21 percent among those 65 and older. • America produces more steel today than 30 years ago, despite the shuttered plants and slimmed-down work force. • Energy-efficient appliances, cars, buildings, and other technologies that already exist could lower U.S. energy usage 30 percent by 2030. • e U.S. accounted for nearly one-third of the $1.1 trillion spent globally on research and development, according to the latest data available. • Total U.S. workplace fatalities declined to their lowest point on record last year. • Donations to charity were near the all-time high in 2009, with nearly $304 billion donated by individuals, foundations, and corporations. • As a percentage of GDP, Americans gave twice as much as the next most charitable nation: England. In 1964, there were 15,000 U.S. foundations. By 2001, there were 61,000. • Smoke-free laws in restaurants, bars, the workplace, etc. reduced the rate of heart attacks by an average of 17 percent after one year in those communities where the bans had been adopted.

• e Dow average has rebounded 64 percent since its low in early March 2009, with even larger gains by other measures. • Roughly 80 percent of companies that suspended or reduced their 401(k) matches during the past two to three years plan to reinstate them this year or in 2011. • e divorce rate dropped by one-third between 1981 and 2008, and is at its lowest level since 1970. • U.S. exports to China have risen roughly 24 percent per year since 2001, making China the fastest growing market for U.S. Goods. • e number of American volunteers rose 2.0 percent to 61.8 million in 2008. Among young adults, the number of volunteers rose 5.7 percent. • Women now make up a record 46 percent of global MBA candidates. More than 70 percent of students surveyed name the U.S. as the top MBA study destination. • e Consumer Price Index (CPI) was up a modest 1.1 percent during the most recent 12-month period. • e number of people using public transportation hit a 52-year high in 2008. • Alcohol-related traffic fatalities in the most recently reported year dropped by more than half versus 20 years ago. • Average U.S. life expectancy has reached 78 years (men 75, women 80), the highest ever. is compares to 76 years in 1995, 68 years in 1950, and 47 years in 1900. • Children’s deaths from unintentional injury have dropped by almost 40 percent since 1987. Bicycle deaths fell 60 percent, while firearms-related deaths fell 72 percent. • Roughly 30 percent of trash was recycled or composted in the latest year, versus 16 percent in 1990.

• A record 30 percent of men have earned a bachelor’s degree or higher, versus 29 percent of women, also a record. is compares to a combined 7.7 percent in 1960. A record 85 percent of adults over age 25 now have at least a high school diploma, versus 24 percent in 1940. • Substantiated cases of childhood sexual abuse have fallen 49 percent since 1990. Physical abuse of children is down by 43 percent. • U.S. teen pregnancy and birth rates plummeted to all-time lows in recent years, before a slight rise. e reasons? More widespread use of birth control, more work opportunities, and more girls who “just say no.” • Flexible work schedules are now the norm for 43 percent of workers, up from 29 percent in 1992 and 13 percent in 1985. is allows greater flexibility for more people, especially those with children. • Productivity of U.S. workers rose an average of 2.6 percent annually during the past 10 years, the largest gains in 40 years. Rising productivity is a long-term key to higher standards of living. • e upward “mobility” of the typical American remains the greatest in the world. Why? e U.S. economy “rewards” the combination of hard work and educational achievement more than ever before … and more than any other country in the world. • e U.S. role of dominance in the global economy during the past decade was as clearcut as at any time since the 1950s. n

Jeff Thredgold, CSP and Economic Futurist, is author of the Tea Leaf, a free weekly economic and financial newsletter, now in its 35th year.

INFOLINK: www.thredgold.com/tea-leaf

• A record 50.5 million foreigners visited the U.S. During 2008. • Seat belt usage by Americans was at 82 percent in 2007, versus 49 percent in 1990 and 14 percent in 1983. arizonatooling.org / 27


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BUSINESS brief

THE SMALL BUSINESS JOBS AND CREDIT ACT:

More Good News than Bad by ELIZABETH ANNE KANE

Like many of you, I find myself working more hours for less money, with my work seeming to be much more stressful. And, when I go home at night, I have to really force myself to watch the news rather than turn on an old rerun of Seinfeld, since I generally dread anything coming out of Washington these days. So it was with great apprehension that I began reading the Small Business Jobs and Credit Act, signed by the President several weeks ago. But, I am here to report to you that there is really more good news than bad. Some portions of the Act, such as the restoration of bonus depreciation and enhanced Section 179 depreciation deductions, have received a lot of press. But, there are a number of less publicized items to provide relief for many of our businesses that did not have the budgets for increasing their fixed assets this year. ese include items such as the ability to deduct health insurance premiums from the self-employment income subject to employment tax and removal of restrictions for use of business credits to offset alternative minimum tax. I hope you will join me on December 1 as we review these opportunities together. I am sure Mr. Costanza of Vandelay Industries will be attending. n

Elizabeth Anne Kane is Manufacturing and Distribution Manager for LarsonAllen LLP. She can be reached at 480.615.2362 or ekane@larsonallen.com.

INFOLINK: www.larsonallen.com

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COMPLIMENTARY TAX WORKSHOP Attend our free lunch event to learn about a broad spectrum of tax issues affecting you and your business currently and in the upcoming year: • Key provisions of the Small Business Jobs and Credit Act signed by President Obama on Sept. 27, 2010 • Important information on other legislation passed in 2010 you need to know about • Employer tax reform, including the employer tax credit and other requirements

At the end of this session, you will be able to: • Identify key tax developments occurring over the past year • Recognize new tax planning opportunities for individuals and businesses arising from recent tax legislation • Implement opportunities and defensive strategies in reaction to IRS positions

Who should attend? This event is tailored for owners, presidents, CFOs, controllers, and other key decision makers.

Event Information Date: Dec.1, 2010 Time: 11:30 a.m. to 1:30 p.m. Location: Phoenix Airport Hilton, 2435 South 47th Street, Phoenix, Arizona 602.242.8826 Fee: No charge Space is limited. RSVP by Nov. 29, 2010 to Debbie Blomme at dblomme@larsonallen.com or call 480.615.2371.


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INDIVIDUAL RECORDS RETENTION SCHEDULE Individual records should be disposed of as soon as they outlive their usefulness.

d o T

This schedule has been developed as a guide only. There are situations which would alter the holding period. Consult legal counsel before destroying if you are uncertain. This guide applies to both paper and electronic records.

ITEM

RETENTION PERIOD

Basis of inherited and gifted property Checks (cancelled, but see exception below) Checks (cancelled for important payments, i.e., purchase of property, special contracts, etc.) (Checks should be filed with the papers pertaining to the underlying transaction.) Contracts and leases (expired)

Permanently 7 years

Permanently 7 years

Contracts and leases (still in effect)

Permanently

Deeds and mortgages

Permanently

Depreciation schedules

Permanently

Insurance policies (expired)

3 years

Insurance policies (still in effect)

Permanently

K-1’s from partnerships, S corporations, or trusts

Permanently*

Purchase documents—such as home, home improvements, rental property, stocks, bonds, or IRAs

Permanently*

Receipts and/or cancelled checks Medical and dental

4 years

Taxes paid

4 years

Contributions

4 years

Other deductions

4 years

Purchase of assets

Permanently*

Tax return copies

Permanently

Wage statements (W-2’s)

Permanently

*Once the asset is disposed of, these records should be kept for a minimum of four years after the year in which the asset is sold. ©2010 LarsonAllen LLP

arizonatooling.org / 29


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ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBER LISTINGS Regular Members John Cain Dave Wright Brandon McDermott Maxine Jones Chuck Eriksen John Raycraft Charles A. Van Horssen Kevin Burbas Jeff Buntin Tony Miglio Norela Harrington Pat DeLanie Mike Sniegowski Keith Adams Greg Gaudet Joe Cassavant, Jr. Steve Schwartzkopf Kim Rice Ron Gilmore Allen Kiesel Daniel Krings John Maris David Lair Frank Eckert Grant Evans Mark Weathers Jeff Hull Alex Curtis Joseph Joe Koenig Tim Malin Jeremy Schaulk Don eriault Sam Ehret Greg Chambers Jim Bowen Joseph Sirochman Jeff Barth Jim Carpenter Don Kammerzell Lee & Colleen Adams Ernest Apodaca Matt Kalina John Lewis

30 /

AZ Industries for the Blind Accuwright Aerostar / Aerospace Mfg. PPG - Aimco Facility Allied Tool & Die Company, LLC Arizona Precision Industrial, LLC Axian Technology, Inc. B&B Tool, Inc. Barnes Aerospace Apex Mfg. Div. Bartino Tooling & Machine, LLC Bent River Machine, Inc. BID Machine Blue Streak Grinding, Inc. C.G. Tech, Inc. CAD Tools Company, LLC Cassavant Machining Chips, Inc. Cling’s Manufacturing Continental Precision, Inc. Creative Precision West Deck Machine & Tool, Inc. D-Velco Mfg. Of Arizona Dynamic Machine & Fabricating Corp. Eckert Enterprises, Ltd. Evans Precision Machining, Inc.

602.269.5131 480.892.9595 602.861.1145 602.254.2187 602.276.2439

Excaliber Precision Machining Foresight Technologies Hamilton Industries Hawkeye Precision, Inc. Helm Precision, Ltd. Hi-Tech Machining & Engine Industrial Tool Die & Engine Inline, Inc. PPG -'Jet Facility' Joined Alloys JPS Manufacturing JWB Manufacturing Kimberly Gear & Spline, Inc. K-zell Metals, Iinc. L2 Manufacturing Layke, Inc. LAI International, Inc. Lewis Aerospace

623.878.6800 480.967.0080 480.967.9339 480.926.8642 602.275.2122 520.889.8325 520.745.8771 602.278.9553 623.869.6749 602.870.5600 480.367.9540 480.967.4600 602.437.3085 602.232.5882 480.829.9047 602.272.2654 480.348.5942 623.581.0764 x101

480.785.7474 623.580.0800 520.397.0436 602.305.8080 x241 602.248.7880 928.634.7568 480.892.7304 602.353.8088 623.492.9400 480.753.4290 602.437.4005 602.233.1335 480.968.1778 602.278.4725 623.587.9400 602.253.1080 602.275.4406 602.437.0339 480.820.0380 623.581.6200

Michael C. Majercak, Jr. Edward Wenz Arle Rawlings Kris Swenson Paul Clark Jeff Meade Joe Tripi Robert Marusiak Mark Lashinske Dante Fierros R.L. Tom Osborn Steve Macias Loyal Clausen James Buchanan Tony Costabile Shaun Schilling Michael Dailey Tyler Crouse John Bloom Susan Scarla Tim Smith Paul Shelton Mark Willmering Jeff Gaffney Steven Yeary Mike Gudin Ruben Cadena Patrick Stewart, II Mike Gudin Dennis Miller Scott Higginbotham Craig Berland Todd Aaronson Bill Brooks Wayne Craig Jacque Cowin Jeremy Lutringer Bill Ankrom Robert L. Wagner Rick Erickson Geno Forman Bruce Treichler Hein Tran

Majer Precision MarZee, Inc. Mastercraft Mold, Inc. Matrix Machine Metal Spinning Solutions, Inc. Metalcraft Micropulse West Micro-Tronics, Inc. Modern Industries, Inc. Nichols Precision Osborn Products, Inc. Pivot Manufacturing Plastic Engineering, Inc. Powill Manufacturing & Engineering, Inc. Precision Die & Stamping, Inc. Premier Tool Grinding Prescott Aerospace, Inc. Pro Precision R & D Specialty/Manco Rae Tech, Inc. BAR-S Machinery, Inc Shelton Industries Sonic Aerospace, Inc. Southwest Swiss Precision Southwest Turbine, Inc. Southwest Water Jet State Industrial Products, Inc. PPG - Stewart Facility Southwest Water Jet Summit Precision, Inc. Sun Grinding LLC Systems 3, Inc. T.A. Custom Designs, Inc. Time Machine & Stamping Lynch Bros. Manufacturing Tram-Tek, Inc. Unique Machine & Tool Co. Vitron Manufacturing, Inc. Wagner Engineering, Inc. Wire-Tech X-5 Manufacturing, LLC Zircon Precision Products 3D Machine & Tools

INFOLINK: arizonatooling.org

480.777.8222 602.269.5801 602.484.4520 480.966.4451 480.899.0939 480.967.4889 602.438.9770 602.437.8995 602.267.7248 480.804.0593 623.587.0335 602.306.2923 480.491.8100 623.780.4100 480.967.2038 602.442.0698 928.772.7605 602.353.0022 602.278.7700 602.272.4223 928.636.2115 520.408.8026 480.777.1789 602.438.4670 602.278.7442 480.306.7748 602.275.0990 623.582.2261 x215 480.306.7748 602.268.3550 602.238.9595 480.894.2581 623.221.4922 602.437.2394 602.265.7575 602.305.8100 602.470.1911 602.548.9661 480.926.1761 480.966.1591 602.454.7385 480.967.8688 480.329.8254


ATMA_0106_Layout 1 11/8/10 5:13 PM Page 31

“THE RIGHT TOOLS. THE RIGHT TEAM. THE RIGHT TIME.”

Associate Members Linda Daly Richard Short Dave Biggar Greg Whelan John Anderson Isaac Bunney Howie Basuk Stan Watkins Steve Blok Pam Lindley Kerry Vance Cindy Stewart Lou Gallo Randy Flores Steve Warner Eric Boldic Grady Mickey Gartman Sherry Sentgeorge Patrick Ellison Jackie Bergman David Cohen John Reinhardt Jim Hurley Tim Kloenne Barry Armstrong Dave Hopkins Bob Von Fleckinger Jeff Trimble David Gundersen Michael Biesk Ray Limon omas Moore Glen Zachman Pete Hushek Steve Montgomery Arlene Helt Ron Swartzbaugh Russ Kurzawski John Drain Greg Burke Joseph A. Velez Daniel Franks

A 2 Z Metalworker Adams Machinery Arizona Bank & Trust Arizona CNC Equipment ATS Industrial Bank of America Barry Metals Canyon State Oil Co. ChemResearch Co., Inc. City of Phoenix Consolidated Resources Creative Promotions D D i - Solidworks D&R Machinery EMJ Metals Federated Insurance Co. Gartman Technical Services, Inc. Gold Canyon Bank Haas Factory Outlet/ Ellison Machinery HUB International Industrial Metal Supply Industrial Property Specialists Industrial Tool & Supply Klontech Industrial Sales L.A. Specialties LarsonAllen, LLP Leavitt Group Magnum Precision Machines Makino, Inc. Marshall Tool & Supply Metco Metal Finishing Moore Tool & Equipment North-South Machinery Phoenix Heat Treating Phoenix Metal Trading Ryerson S&S Machinery Star Metal Fluids LLC Tornquist Machinery Co. TW Metals Velez Attorney at Law Wells Fargo Bank

INFOLINK: arizonatooling.org

602.412.7696 480.968.3711 602.381.2079 480.615.6353 602.276.7707 602.523.2044 602.484.7186 602.271.9888 602.253.4175 602.262.6060 623.931.5009 480.839.9511 602.241.0900 480.775.6462 602.272.0461 800.527.5999 602.788.8121 623.594.7351 480.968.5877 602.749.4190 602.454.1500 602.418.1539 480.829.3835 480.948.1871 602.269.7612 480.615.2300 602.264.0566 602.431.8300 602.228.0347 602.269.6295 602.276.4120 602.455.8904 602.466.2556 602.258.7751 602.257.4660 602.455.3386 602.714.0116 602.256.2092 602.470.0334 602.864.0014 480.710.5079 602.522.7824

CAPABILITIES OF ARIZONA TOOLING AND MACHINING COMPANIES • CNC Machining • 5 Axis Machining • Multi-spindle Machining • Lights out Machining • Blade and Blisk Machining • Electro-Discharge Machining • Laser Machining • Waterjet Machining • Sheet Metal Fabrication • Gun Drilling • Jig Bore/Jig Grind • Hydroforming • Cylindrical Grinding • Surface Grinding • Curvic Grinding • Tool Grinding • read Grinding • Creep Feed Grinding • Chemical Milling • 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 • 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

ATMA PRECISION

GET CONNECTED TO THE ATMA! For more information contact: CHRIS MIGNELLA, arizonatooling@cox.net www.arizonatooling.org

arizonatooling.org / 31


ATMA_0106_Layout 1 11/9/10 9:38 AM Page 32

CALENDAR of events

MARK YOUR CALENDAR WITH THESE

December 9, 11:30 a.m. - 1:00 p.m.

UPCOMING ATMA EVENTS!

PROGRAM TEAM MEETING (Second Thursday of every month) JPS Manufacturing, 15651 N. 83rd Way, 85260 RSVP: arizonatooling.org or arizonatooling@cox.net

December 21, 11:30 a.m. - 1:00 p.m.

BOARD OF DIRECTORS MEETING November 11, 11:30 a.m. - 1:00 p.m.

INSURANCE & SAFETY TEAM MEETING

(Third Tuesday of every month) Phoenix Airport Hilton, 2435 S. 47th Street

Hub International, 1750 E. Glendale Avenue, Phoenix

RSVP: arizonatooling.org or arizonatooling@cox.net

RSVP: arizonatooling.org or arizonatooling@cox.net

Learn more at: www.arizonatooling.org

December 1, 11:30 a.m. - 1:30 p.m.

COMPLIMENTARY TAX WORKSHOP Attend Larson Allen’s free lunch event to learn about a broad spectrum of tax issues affecting you and your business currently and in the up coming year. Phoenix Airport Hilton, 2435 South 47th Street, Phoenix, AZ  602.242.8826 Fee: No charge RSVP: Space is limited. Reserve your seat by Nov. 29 2010 by contacting Debbie Blomme at dblomme@larsonallen.com or 480.615.2371.

December 3, 11:30 a.m. - 1:00 p.m.

BOARD OF DIRECTORS MEETING (Third Tuesday of every month) Phoenix Airport Hilton, 2435 S. 47th Street RSVP: arizonatooling.org or arizonatooling@cox.net

December 7, 11:30 a.m. - 1:00 p.m.

MEMBERSHIP & MARKETING TEAM (First Tuesday of every month) Lewis Aerospace, 1401 W. Victory Lane, 85027 RSVP: arizonatooling.org or arizonatooling@cox.net

December 8, 6:00 p.m. - 10:00 p.m.

ATMA HOLIDAY PARTY “PUTTING ON THE RITZ” Fine dining, wine, cigar patio and casino play! The Ritz Carlton, Phoenix RSVP: arizonatooling.org or arizonatooling@cox.net

INDEX OF ADVERTISERS For comprehensive advertising and media information, please email: precisionmag@lpimultimedia.com

32 /

A&J Industrial Machine Repair Co. Accurate Waterjet Accuwright Industries, Inc. Blue Streak Grinding Bolt Enterprises ChemResearch Co., Inc. Consolidated Resources, Inc. Excaliber Precision Federated Insurance Gartman Technical Services L.A. Specialties, Inc. LarsonAllen

p 15 p 09 p 13 p 23 p 22 p 01 p 05 p 04 p IFC p 23 p 09 p IBC

Leach Laser Lewis Aerospace Makino Micro-Tronics, Inc. Nichols Precision Phoenix Metal Trading, Inc Richter Machine & Design Southwest Waterjet Corporation Sun Grinding Ulbrich Unique Machine & Tool Co.

p 15 p BC p 16 p 25 p 01 p 13 p 09 p 24 p 03 p 03 p 23

METALHEAD

FACT: Three metals (lithium, potassium, and sodium) have densities of less than one gram per cubic centimeter at ordinary temperatures and are therefore lighter than water. source: wiki.answers.com


Š2010 LarsonAllen LLP

ATMA_0106_Layout 1 11/8/10 5:02 PM Page 33

WE HELP OUR MANUFACTURING CLIENTS INNOVATE, CHANGE, AND GROW. t Improving t Accelerating Growth t Reducing Risk t Planning for Succession

Lean Transformation | Supply chain management | Assurance services Tax | International services | Succession planning

Noticeably Different. Proud Silver Sponsor Of The

ATMA


ATMA_0106_Layout 1 11/8/10 5:01 PM Page 34

/FOR COST, QUALITY, FLEXIBILITY, AND DELIVERY, CHOOSE LEWIS AEROSPACE / n

CATIA, Pro Engineer 2000i, and SmartCam meet your engineering and CNC programming needs

n

Production control through JobBOSS, tracking all jobs from the quoting process thru shipping

n

Full service machine shop includes CNC turning, CNC milling, and CNC Swiss turning

n

Manual milling, turning, lapping, and vertical, horizontal sawing

n

AS 9100, ISO 9000, and ITAR Certified

LEWIS AEROSPACE SERVES AEROSPACE, DEFENSE, SEMICONDUCTOR AND MEDICAL INDUSTRIES.

1401 W. Victory Lane I Phoenix, AZ 85027 USA Phone: 623.581.0764 I Toll Free: 877.254.2024 Fax: 623.581.6505

www.LewisAerospace.com

“YOUR PARTS, DONE RIGHT, ON TIME, EVERY TIME.”


Precision Magazine November / December