Springs winter 2010 vol 49 no1

The International Magazine g of Spring p g Manufacture

Winter 2010,Volume 49 Number W Num mber beer 1

A Publication bli i off the h SSpring i M Manufacturers f Institute I i

Sales and Marketing AVOIDING A LETHAL DISCONNECT— GETTING SALES AND MARKETING OUT OF THEIR SILOS 20 MANUFACTURERS’ REPRESENTATIVES — THE ORIGINAL OUTSOURCING SOLUTION 24 TURNING ANGRY CLIENTS INTO HAPPY ONES 29

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President’s Message From Reb Banas

Take Care of the Little Things Happy New Year! Say goodbye to a crazy 2009 and may everyone hit the ground running with good health and a renewed spirit in manufacturing springs.

This issue of Springs highlights the topic of Sales and Marketing. What has worked in the past will still work in the future, but what are you doing to attract new business?

• Do you use a direct or indirect sales department?

• Are your advertising dollars well spent?

• Is e-commerce working for you?

• Are you utilizing Mfg.com, Thomas.net, and First Index as online sources for potential sales?

• Is your website up-to-date and easy to use?

• How do you and your company follow up on sales leads?

• How is your time spent with customers?

This is just the tip of the iceberg. Everyone has a “brand” and how you market yourself and your company dictates your company’s reputation for service, quality, and price. I’ve always said and have been taught to “sweat the big stuff” and “I don’t like to baby sit or be baby sat” by vendors and customers alike.

Is delivering products on time at a fair price acceptable? Or do you want more?

Lead by example and exceed your customer’s expectations. Sometimes doing the right thing for your customer may cost a few dollars more and adding a little personal touch goes a long way. It’s the little things in life that separate and make you unique. Pay attention to those details and customers will remember. There’s more to a sale than just a good price. Many of the most successful management principles come from the following: • Build a reputation for excellence – even at the expense of profits.

• Strive to offer the best values, not the lowest prices.

• Treat potential customers as equals and friends, not as targets.

• Shun debt.

• Don’t force employees to do things they don’t want to do.

• Learn the little details that shape your customer experience.

• Embrace change.

I have been honored to serve as your president for the past two years. Together with the SMI board of directors, executive committee and staff, we have made significant changes to increase and improve the many programs and services offered to our membership. A mere “thank you” would never be enough to express how fabulous Lynne Carr, Luke Zubek, Jim Wood, Dina Sanchez, and Gary McCoy are for the organization and the tremendous effort they put forth each and every day.

Scott Rankin and the SMI team are positioned for growth and endless opportunities. I know they will continue to execute the little things that will make a big difference for our association.

SMI Board of Directors President, Reb Banas, Stanley Spring & Stamping • Vice President, Scott Rankin, Vulcan Spring & Manufacturing • Secretary Treasurer, Steve Moreland, Automatic Spring Products • Immediate Past President, Dan Sebastian, MW Industries • Executive Committee At-Large, Russ Bryer, Spring Team • Tom Armstrong, Duer/Carolina Coil • Dennis Backhaus, Spiros Industries • Mike Betts, Betts Spring • Dan Bishop, Automatic Spring Coiling • Ron Curry, Gifford Spring • Ann Davey, John Evans’ Sons • Chris Fazio, Diamond Wire • Richard Guimont, Liberty Spring • Mark Habicht, Kirk Habicht • Greg Heitz, Exacto Spring • Gene Huber Jr, Winamac Coil • Miko Kabeshita, Ark Technologies • Steve Kempf, Lee Spring • Bob Iorio, Gibbs Wire • Richard Rubenstein, Plymouth Spring • Joe Sirovatka, RR Spring • Ted White, Hardware Products • Tim Zwit, Michigan Spring & Stamping Springs Magazine Staff

Lynne Carr, Advertising Sales, lynne@smihq.org Dina Sanchez, Assistant Editor, dina@smihq.org Luke Zubek PE, Technical Advisor, luke@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Springs Magazine Committee Chair, Richard Rubenstein, Plymouth Spring • Carol Caldwell, Century Spring/MW Industries • Lynne Carr, SMI • Randy Deford, Mid-West Spring & Stamping • Ritchy Froehlich, Ace Wire Spring & Form • Tressie Froehlich, Ace Wire Spring & Form • LuAnn Lanke, Wisconsin Coil Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical advisors: Loren Godfrey, Colonial Spring • Luke Zubek, PE, SMI Technical Director Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho 1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 • Fax: +81-6-6624-3602 E-mail: info@sakurain.co.jp Advertising sales - Europe Jennie Franks, Franks & Co. 63 St. Andrew's Road Cambridge United Kingdom CB41DH Phone/Fax: +44-1223-360472 E-mail: franksco@BTopenworld.com Advertising sales - Taiwan Robert Yu, Worldwide Services Co. Ltd. 11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, Taiwan Phone: +886-4-2325-1784 • Fax: +886-4-2325-2967 E-mail: stuart@wwstaiwan.com Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 4958588; Fax: (630) 495-8595;Web site www.smihq.org. Address all correspondence and editorial materials to this address.

The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication.

The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability.

The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention.

Do not reproduce without written permission.

Cover by Sue Zubek, Zubek Design, Inc.

Reb Banas, President, Stanley Spring & Stamping, reb@stanleyspring.com

2 SPRINGS Winter 2010

Cover art created using images from Photodisc/Punchstock

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Table of Contents FEATURES

20

20

Avoiding a Lethal Disconnect— Getting Sales and Marketing Out of Their Silos

By Tom Marx

24

Manufacturers' Representatives: The Original Outsourcing Solution

By Gary McCoy

29

Turning Angry Clients into Happy Ones

33

When is a Sale Complete?

By Frank Fazio

38

So,You Want to Buy a Used Conveyor Oven!

By Daniel Pierre III

41

Repair or Replace, Depreciate or Write Off?

By Mark E. Battersby

COLUMNS 15

Spotlight on the Shop Floor More Trickery — Lowering Spring Rate

By Randy DeFord

17

Be Aware Safety Tips The OSHA Hexavalent Chromium Standard is Being Enforced

By Jim Wood

52

IST Spring Technology Cautionary Tale: Marketing of Extension Springs

By Mark Hayes

55

Technically Speaking Showcasing ASD 7.0: Springs in Series

By Luke Zubek, PE

24

DEPARTMENTS

33

44 4 SPRINGS Winter 2010

2

President’s Message Take Care of the Little Things

7

Global Highlights

12

Regional Spring Association Report

34

Flashback Manufacturers’ Representative Versus Direct Salesman: A Panel Discussion

44

Springmaker Spotlight Winamac Coil Spring: A Family Business Built Through Hard Work

49

Inside SMI 2010 SMI Annual Meeting to Convene in St. Thomas; Springs Managing Editor Receives Education Award

58

New Products

63

Advertisers’ Index

64

Snapshot William Lathrop, Colonial HanDee Spring

6 SPRINGS Winter 2010

Global Highlights North America Spring Manufacturers Institute (SMI) and Universal Technical Systems, Inc. (UTS) announce the release of Advanced Spring Design (ASD) 7. ASD7 meets springmakers’ needs in a single program by including a variety of spring types: compression, extension, garter, torsion, spiral, constant force, washer, beam and snap ring. The program combines engineering expertise with customized calculations created in TK Solver’s collaborative environment in order to design quality springs.

New features and spring types include: conical compression springs with non-linear rates; systems of compression springs in series and in parallel; internal and external garter springs; ability to calculate torsion at arm and arm length calculations; and contextsensitive help linked to the SMI Encyclopedia.

ASD7 contains a exible database of materials with a new estimation routine for minimum tensile strength, making it easier to add your own materials. Other time-saving features include the ability to combine cylindrical and conical compression springs in a series (stacked or continuous) and in parallel (nested).

Because it runs on TK Solver, ASD7 lets you “backsolve” your designs, allowing you to solve your problem in any direction, and gives you a means of designing a spring with variable pitch, rate, size, and more.

Visit UTS at www.uts.us.com or call (815) 963-2220 to order ASD7.

Family-owned Wolverine Coil Spring, Grand Rapids, Mich., a supplier of springs, stampings, wire forms, clips and assemblies, earned the 2009 ACT Employer of Excellence Award from ACT, Inc. ACT, an independent nonprofit organization, provides assessment, research, information and programmanagement tools for employee education and workforce development. The company served as a pilot site for rolling out the National Career Readiness Certi cate in Western Michigan. The National Career Readiness Certi cate veri es to employers anywhere in the United States that an individual has essential core employability skills in reading, math, and in locating information. Wolverine Coil Spring president Jay Dunwell formed a regional employer group to assist the project’s leadership, and championed the initiative by organizing career-awareness events and securing business support for the certi cate. Dunwell traveled to Washington, D.C. on October 28, 2009 to receive the award.

(l-to-r:) Wolverine Coil Spring president Jay Dunwell and Rachael Jungblut of Grand Rapids Community College accept the Employer of Excellence award from Dr. Richard Ferguson, CEO and chairman of ACT.

Numerous senators and congressional representatives presented awards to recipients from their home states and communities. Rachael Jungblut, Dunwell’s guest at the event, was instrumental in implementing WorkKeys and the National Career Readiness Certi cate in Michigan.

“My hope is that this event will provide greater awareness of the National Career Readiness Certi cate to the employers in not only Michigan but throughout Wolverine’s various industry associations,” said Dunwell.

Responding to the requirements of U.S. and worldwide automakers to speed time-to-market for hybrid vehicle designs, InterTech Development Company announces an expansion of its ChicagoDetroit Applications Engineering Team that designs high gauge R&R turnkey leak test solutions.

Applying best-match leak test technology as required — pressure leak testing, differential pressure decay leak testing, mass ow leak testing in either downstream or upstream leak test con gurations, and helium leak testing for the most demanding applications — InterTech Development Company’s Applications Engineering Department combines custom leak test sensors with a growing knowledge base of xture design requirements for hybrid vehicle components.

Jacques Hoffmann, president of InterTech Development Company comments, “Given the costs of helium leak testing there has especially been a recent interest in InterTech’s custom mass flow sensors and other patented technology that enables us to get accurate leak test results in applications that would SPRINGS Winter 2010 7

InterTech Development Company’s leak test solutions are reported to cut leak test cycle times by as much as 70 percent. No-cost initial consultations and evaluations of leak test application requirements can be obtained by contacting Gerald Sim at gsim@ intertechdevelopment.com or phone (847) 679-3377 x250.

otherwise be done with prohibitively expensive and cumbersome helium mass spectrometers. We work with automotive manufacturers worldwide — both for hybrid vehicles and traditional automobiles, among many others with demanding leak test applications. Our sole focus on developing test technology for more than four decades helps us keep our customers competitive and ensures that their globally-distributed manufacturing processes are up to top quality standards.”

Newcomb Spring Corp., a Decatur, Ga.headquartered manufacturer of custom springs and metal parts, has announced that the company recently reached a milestone of producing 25 billion parts. Put end to end, these parts would reach from the earth to the moon and back, with length to spare.

“The company is very excited about reaching the 25 billion mark,” said Dan Kelly, sales manager for Newcomb Spring. “We feel this achievement shows the con dence that the industries we serve have in our products, and we are pleased and proud that our products have been in such high demand for over a century. What separates us from our competitors is the convenience of our eight locations across the United States plus one location in Canada. This allows our customers to come to our facilities and meet with Newcomb representatives in person. An engineer can sit right at the machine and demonstrate on the actual equipment. Newcomb can provide samples within an hour while the customer waits, where it can take our competitors a week or longer to provide a sample.”

Newcomb Spring has been a manufacturer of custom springs and metal parts for more than 125 years, producing the highest quality springs, wire forms and metal stampings for a wide variety of industries worldwide, including the aerospace, agricultural, automotive, computer, medical, military and telecommunications industries. With highlyef cient manufacturing processes that incorporate the latest technological advancements, Newcomb Spring has manufactured almost half of the 25 billion parts in the past 20 years.

JN Machinery recently completed some internal reorganization and moved its headquarters to Elk Grove Village, Ill., about 5 miles north of their former location. Most oven-related activity will relocate to its Chicago factory, including shipment of ovens and heavier spare parts. Formulation and R&D of AquaTRC will shift to a laboratory in Atlanta, Ga. which will also handle shipments of drums and totes of material.

The headquarters in Elk Grove Village will oversee the Chicago and Atlanta departments and focus on development of FTS TRC Machinery—a patented line of specialty coating machines—as well as distribution pail-sized containers of Aqua-TRC. Rather than putting everything under one roof, JN split up the day-to-day activities related to ovens and Aqua-TRC so each department can focus on its core technology.

8 SPRINGS Winter 2010

The company’s new address is: JN Machinery Corporation, 1500 Midway Ct. #W4, Elk Grove Village, IL 60007. For more information, contact Daniel Pierre III at (847) 439-0866 or daniel@jnmachinery.com.

Fox Valley Spring Company has been honored with Fox Cities, Wisconsin Chamber of Commerce and Industry’s 2009 Small Manufacturer of the Year award.

The company, established by Russ Stang Sr. in 1989, has been successful carrying the philosophy that employees are individuals with valuable ideas. Keith Wincentsen, Fox Valley Spring’s general manager, credits terrific employees and the company’s use of lean manufacturing as part of the reason the company has earned the award. “For employees of the company, the award is an af rmation that what they are doing is making a difference,” Wincentsen said. “It puts a spring back in everyone’s step.”

The annual chamber awards recognize outstanding manufacturers based on size. The businesses are nominated for consideration in their category and are then judged by a panel of ve local people with backgrounds in manufacturing.

supplied 100 percent of Continental’s coiled spring requirements. This portion of Mastercoil’s sales made up 50 percent of its overall business. At the time Mastercoil employed close to 50 people, all from the McHenry County area. Unfortunately, with a loss of this magnitude, as well as the economic downturn at the end of 2008, Mastercoil was forced to reduce its workforce by one third.”

The article detailed how, in reaction to this loss, Mastercoil’s owner, Don Musielak and his management team, put together a new business plan to recoup

Tom A. Dulworth, president, Southern Spring and Manufacturing Company, announced his retirement in August after 50 years serving the spring manufacturing industry.

Southern Spring, headquartered in Nashville, Tenn., signed an agreement to be acquired by PennElkco Spring Company, with corporate headquarters in St. Mary’s, Pa. After transitioning to PennElkco, Southern Spring continues to expand its reach into the spring, stamping and wire form markets throughout the United States. For more information, contact PennElkco at www.pespring.com, or phone (800) 854-4658.

Mastercoil Spring of McHenry, Ill. was featured in an October 3, 2009 article in the Northwest Herald newspaper. “Just over one year ago ContinentalAfa of Saint Peter’s, Mo. went out of business without any notice to its employees or suppliers.

Mastercoil Spring of McHenry, Ill.

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the sales loss in as little time as possible. This plan included marketing Mastercoil’s springs overseas, which the company stated would take a commitment of resources, both nancial and personnel-wise.

Within two months of the closing of ContinentalAfa’s ve facilities, Musielak had made arrangements for some of his management team to travel to South America and Mexico to begin to develop new markets.

Mastercoil Spring’s core business has always been with the aerosol and nger pump industries.

Companies in these manufacturing elds in South America, Europe and Asia presented the opportunity for Mastercoil Spring to begin to provide stainless steel springs to these facilities.

Beginning in the rst quarter of 2009, Musielak’s business plan began to take shape and Mastercoil began to ship product to Argentina, Chile, China, Switzerland, Mexico, and Canada. Since the creation of Mastercoil Spring, over twenty-six years ago, it had been Musielak’s goal to have his company be established as a global supplier of quality springs to the aerosol and nger pump industries.

The article concluded that with the addition of new sales, Mastercoil has been able to regain a majority of the business that was lost. The company is once again providing new employment opportunities to McHenry County.

To read the complete article, visit: www.nwherald.com/articles/2009/09/29/r_ yaerla6brtouuak2zeapvg/

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Overseas The Japanese Society for Spring Engineers (JSSE) held its 2009 Autumn Session in Nagoya, Japan from November 5-7. The Autumn Session consists of three events: the technical session, Spring Machine Show and technical lectures.

At the technical session, seven papers in total were presented, one of which was from the JSSE joint report on the fatigue strength of suspension coil springs based on the principal stresses. A keynote lecture was presented by Akihiro Ohtsuka, chief engineer of Toyota Motor Company on “Developing Processes of the Toyota Prius.” Other presentations included: “The Effect of Steel Composition and Clearance to Tooling Wear on Shearing;” “Improvement of Fatigue Strength of Stabilizer Bars by the Optimum Condition of the Cross-section of Bent Area;” “Development of CDC Processed Micron-Hard Stainless Steel Wire;” and “Fatigue Fracture Mechanism of Pearlite Steel Wire Spring.”

Spring Machine Show 2009 has been held every two years at Nagoya. The Machine Show was successful despite the economic recession, providing attendees with updated technologies relevant to the spring industry under the slogan, “Renaissance in Spring Manufacturing – Harmonization of Traditional Craftsmanship and New Technology.” Coiling machines were presented from Asahi Seiki, Itaya, Shinko and Wa os, as well as many other equipment and measurement devices. More than 1,700 attended the show.

Technology lectures included those from emeritus professor Takahiko Kuno of Keio University, who looked at the history of coiling machines, and Masahiko Inuzuka of Toyota Hokkaido, who presented insights on how to keep each process in the speci ed condition as a process of a self-complete cycle. X

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China International Fastener, Spring &Equipment Exhibition Guangzhou, China www.fastenerchina-gz.com June 23-26, 2010

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wire China 2010 Shanghai, China www.wirechina.net September 21 – 24, 2010 SpringWorld 2010 Rosemont, IL www.casmi-springworld.org October 13 – 15, 2010

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Regional Spring Association Report Wire Manufacturer Tells CASMI Members Why His Company Is Growing

Drew Greenblatt, president of Marlin Steel Wire Products of Baltimore, Md., was the guest speaker for the November 2009 CASMI Meeting at Rosewood Restaurant in Rosemont, Ill. Greenblatt presented the story of his company’s remarkable growth in the midst of the economic recession and downsizing in the manufacturing sector.

Greenblatt outlined how Marlin has dramatically changed since he bought the company in 1998. The company was established in 1968 in Brooklyn, N.Y., and principally made wire baskets for bagel shops.

“Every bend and weld was done by hand with hand cut wire,” explained Greenblatt of the company he purchased. “And there were no prints made of the baskets we manufactured. If we got a reorder, we had clients return their basket so we could copy it.”

He also mentioned how the company had no health insurance, 401(k) plan, brochures or technology to speak of (the exception being a recently purchased fax machine).

He said most orders were still mailed via USPS. Greenblatt said two seismic shifts occurred when the Atkins diet came along and cut into the bagel

12 SPRINGS Winter 2010

market for his clients, and when his customers could buy cheap wire bagel baskets from China. “I knew at that point if we didn’t change, we were toast,” said Greenblatt.

Instead of closing the doors, Greenblatt decided it was time to transform the business through strategic change. He turned his focus to recruiting great talent, investing in technology, focusing on pro ts instead of revenue, and adopting lean manufacturing. In his presentation, he outlined the steps he went through to achieve change in these four areas.

One of the biggest technology changes Marlin undertook was investing $2 million in robots.

“Robots have helped us stay on the cutting edge, and beat our competition,” said Greenblatt.

Gr eenblatt said Marlin is now known as an engineering powerhouse, one of the fastest companies in the world and a company that places quality as king.

As a result of this transfor mational work, Marlin is now four times larger than it was 11 years ago, with four years of record revenue/profit growth.

In addition, Greenblatt said the average employee is now paid three times more, employee bene ts are much stronger and the company exports products to 23 countries.

Regarding the future, Greenblatt said they will continue to execute from the same playbook that brought about strategic change, which will include pursuing aggressive growth, focusing on more engineering and robots, and recruiting even more talent.

Greenblatt was recently elected board chairman of the

Regional Manufacturing Institute of Maryland. In addition, he is on the executive board of the National Association of Manufacturers and was recently appointed by Maryland’s Governor O’Malley to the Governor’s International Business Advisory Board.

He is a frequent guest of Fox Business News and has been featured in articles in the Wall Street Journal, New York Times and Fortune.

December Meeting Features Richter On December 9, CASMI Members wer e joined by the members of the Chicago Metal Finishers Institute (CMFI) for a holiday party and a joint member meeting.

The joint meeting featured a presentation by Christian Richter, founder of The Policy Group that represents the surface finishing industry on a wide range of government relations issues.

Richter’s r eputation as a dynamic speaker was proven as he held the attention of the almost 60 meeting participants with a humorous, yet information-packed presentation.

Members of both associations commented that they are looking forward to further joint meetings.

Joe Sirovatka, CASMI president, and R yan McKenna, CFMI president, both stated that they will be working together to coordinate future joint gatherings.

For more information on CASMI, contact T om Renk, executive director at (630) 369-3466, email: tom@associationenterprise.org, or visit www.casmi-springworld.org.

NESMA Holds Christmas Dinner/Awards

by Ted White, Hardware Products On December 2, 2009 the New England Spring & Metalstamping Association (NESMA) held its annual Christmas Dinner at the Silo Restaurant in Farmington Conn.

This dinner, along with NESMA’s annual golf outing and the semiannual tabletop exhibition, provides a forum for members to get together in a non-competitive venue to enjoy each other’s company. This year, 93 attended (as opposed to 70 last year), which encouraged everyone that perhaps things were starting to loosen up a bit.

Bill Lathrop, NESMA president, hosted this affair for the rst time and helped hand out membership awards in three categories. The first awards were presented to companies for the longest continuous operation. The three recipients were D.R. Templeman

WCSMA Holds Fall Tabletop, Golf Outing Events

Company for 71 years, Peck Spring for 92 years and Hardware Products Company for 143 years.

The next category honored Atlantic Precision Spring, Plymouth Spring and Radclif f Wire for reaching their 50th anniversaries.

The nal category of lifetime achievement awards were presented to Les Dayon and Fred Hirsch. Les began his “spring career” in 1949 at Hardware City Spring Company in New Britain. Now, 60 years later, he still participates in the day-to-day operations of Dayon Manufacturing.

Fred began his wire career at H.K. Porter. He worked at Techalloy for 17 years before beginning Hamden Metals. I personally enjoyed talking at length with Fred because some 35 years ago I was a cub spring salesman trying to understand the bene ts of high nickel alloys. Fred was instrumental in me gaining much of that knowledge.

Two events dominated the fall schedule for the West Coast Spring Manufacturers Association (WCSMA).

The association held its Tabletop Expo on Thursday, October 29 at the Holiday Inn in La Mirada, Calif.

“The Tabletop was a little slow in attendance,” commented WCSMA

Before the dinner began there was a cocktail hour where members could experience camaraderie and networking. The honorees all wore boutonnieres so that their associates could easily identify them and congratulate them on their accomplishments.

NESMA is administered through the Central Connecticut Chamber of Commerce, primarily through the many hours of input

by Cindy Scoville, which resulted in another well-organized and enjoyable event.

chairman Colleen Trost, “but it was still a good time for people to mingle.”

WCMSA held their golf tournament on November 5 at Coyote Hills Golf Course in Fullerton, Calif.

“We had just over 50 golfers and over 80 for dinner and drinks,” said Trost.

For more infor mation on WCSMA, visit www.wcsma.us. X

SPRINGS Winter 2010 13

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Spotlight

More Trickery — Lowering Spring Rate

on the Shop Floor

By Randy DeFord

n the Fall 2009 issue, we discussed spring rate and how rate can be increased with a manipulation of pitch. The practice of placing some coils of a helical compression spring closer than others, to increase rate, is a fairly common practice in the industry. But, what if the rate needs to decrease during deflection? There is a way to accomplish that goal.

As shown in the previous article, a rate graph is made from the two components of force and de ection.

When a spring moves, the force applied creates a de ection — the spring moves and pushes back with the same force that is applied. As it travels, the rate of the spring will stay consistent until there is substantial coil loss. This basic rate graph is shown in Figure 1.

But, what if the spring rate needs to decrease? How can this be accomplished?

To have a decreasing rate, two springs will be needed. The rst spring is preloaded to a given load and captured in that preloaded state.

For example, a spring with a rate of 10 #/inch is captured with a .500” de ection. This produces approximately 5.0# of force. This means a force of greater than 5.0# will be needed to make the spring move. Figure 2 shows the rst spring in position.

The next step is to set a second higher rate spring on top of the preloaded spring. Let’s assume the top spring has a spring rate of 20.0 #/inch. It will require a movement of .250” to create 5.0# of force. The nal set-up looks like Figure 3.

As force is applied, the top spring starts to move.

The pitch is set so the top spring reaches solid height after a .250” de ection. The top spring is now completely closed and can no longer move (see Figure 4).

As force continues to be applied, the bottom spring will now move because the force has exceeded 5.0# (see Figure 5).

I

Randy DeFord is the engineering manager at Mid-West Spring & Stamping in Mentone, Ind. He has 35-plus years in the spring industry, and believes that educating both customers and associates is the key to great customer service.

Readers may contact him at rdeford@mwspring. com or phone (574) 353-7611.

R (rate)

P low rate spring preloaded to 5.0#

(force)

F (deflection) Figure 1: Basic Rate Plot

Figure 2

force

higher rate spring with a solid height load of 5.0# on top of preloaded lower rate spring Figure 3

force

Figure 5

high rate spring reaches 5.0# at solid height — no more movement possible

Figure 4

lower rate spring starts to move when force exceeds 5.0#

first rate based on top spring

R2 P

R1 F

second, lower rate based on bottom spring after top spring reaches solid

Figure 6: Rate Plot

Since the bottom spring is a lower rate spring, the combination of the two springs now produces only the rate of the bottom spring. This will generate a rate plot as shown in Figure 6.

The key to the success of this system is to be sure the top, higher rate spring’s solid height load matches the preload of the bottom, lower rate spring.

When the top spring has reached the end of its de ection capability, the bottom spring kicks in and begins the lower rate scheme.

This system makes it possible to deliver any rate change needed by cleverly matching one spring’s closing force to the other spring’s preload force. Simple, but very effective for the right application. X

SPRINGS Winter 2010 15

16 SPRINGS Winter 2010

Be Aware

The OSHA Hexavalent Chromium Standard is Being Enforced Safety Tips

By Jim Wood

n the spring of 2006, I advised Springs readers about the new OSHA standard covering employee exposure to hexavalent chromium. As with most new standards, OSHA has a learning curve to train personnel and incorporate the standard into its enforcement procedures.

In the past few months I have heard of a number of OSHA routine, programmed inspections that included air sampling for hexavalent chromium.

OSHA has set an extremely low action level (2.5 micrograms per cubic meter of air) for hexavalent chromium. Action levels are set by OSHA to express a health or physical hazard. It has been noted that grinding departments can register in the action level when grinding stainless steel or other metals with chromium content.

What is hexavalent chromium? Hexavalent chromium means chromium with a valence of positive six, in any form and in any compound. It is not a type of chromium, but rather the state of the chromium.

Here is the NIOSH de nition: “Hexavalent chromium (Cr(VI)) compounds are a group of chemical substances that contain the metallic element chromium in its positive-6 valence (hexavalent) state. Occupational exposures to Cr(VI) occur during the production of stainless steel, chromate chemicals, and chromate pigments. Cr(VI) exposures also occur during other work activities such as stainless steel welding, thermal cutting, chrome plating, painting, and coating processes.”

I

Jim Wood is an independent regulations compliance consultant to the Spring Manufacturers Institute (SMI). A certified instructor of the OSHA Out-Reach Program, Wood conducts seminars, plant Safety Audits and In-House Safety Trainings. These programs help companies create safer work environments, limit OSHA/Canadian Ministry of Labor violations and insurance costs, and prepare for VPP or SHARP certification.

He is also available for safety advice and information by phone at (630) 495-8597 or via e-mail at regs@smihq.org.

The new standard lowers OSHA’s permissible exposure limit (PEL) for hexavalent chromium, and all Cr(VI) compounds, from 52 to 5 micrograms of Cr(VI) per cubic meter of air as an eight hour time weighted average.

The standard also includes provisions related to preferred methods for controlling exposure, respiratory protection, protective work clothing and equipment, hygiene areas and practices, medical surveillance, hazard communication and recordkeeping.

In response to a 2003 court order, OSHA published a nal standard for occupational exposure to hexavalent chromium in the February 28, 2006, Federal Register.

The standard covers occupational exposure in general industry, construction and shipyards, and took effect on May 30, 2006.

The new standard lowers OSHA’s permissible exposure limit (PEL) for hexavalent chromium, and all Cr(VI) compounds, from 52 to 5 micrograms of Cr(VI) per cubic meter of air as an eight-hour time weighted average. The standard also includes provisions related to preferred methods for controlling exposure, respiratory protection, protective work clothing and equipment, hygiene areas and practices, medical surveillance, hazard communication and recordkeeping.

Hexavalent chromium compounds are widely used in the chemical industry as ingredients and catalysts in pigments, metal plating and chemical synthesis.

Cr(VI) can also be produced when welding, burning, or grinding on stainless steel or Cr(VI) painted or plated surfaces.

This standard, CFR 29, 1910.1026 applies to occupational exposure to chromium (VI) in all forms and compounds in general industry, except: “Where the employer has objective data demonstrating that the

SPRINGS Winter 2010 17

material containing chromium or a speci c process, operation, or activity involving chromium cannot release dust, fumes, or mists of chromium (VI) in concentrations at or above 0.5 micrograms per cubic meter of air as an eight-hour time weighted average.�

If monitoring reveals employee exposure to be above the PEL, the employer shall perform monitoring every three months and initiate a formal hexavalent chromium program with engineering changes to reduce the exposure below the PEL for the protection of employees in the regulated areas.

Exposure Determination Each employer who has a workplace or work operation covered by this standard shall determine the eight-hour time weighted average exposure for each employee exposed to chromium.

Prohibition of Rotation The employer shall not rotate employees to different jobs to achieve compliance with the PEL.

Monitoring The employer shall perform initial monitoring to determine the eight-hour time weighted average exposure for each employee on the basis of a suf cient number of personal breathing zone air samples to accurately characterize full shift exposure on each shift, for each job classi cation, in each work area.

Jim’s Regulatory Tip: Don’t get caught short with this standard. OSHA is taking it very seriously. Ask your insurance carrier to perform air sampling tests in any department where stainless steel operations include welding, burning, grinding, sawing or cutting. This would include chromium plated materials and any other material containing chromium. Document all test results as part of the compliance program. X

Action Level If the concentration of airborne chromium (VI) is 2.5 micrograms per cubic meter of air as an eight-hour time weighted average the employer shall perform monitoring every six months.

18 SPRINGS Winter 2010

SPRINGS Winter 2010 19

Getting Sales and Marketing Out of Their Silos

By Tom Marx

Have you ever looked back and seen the tension between marketing and sales teams in your company?

Does it sometimes feel like they are speaking different languages?

Do you sometimes wonder if they ever talk with each other? Do you listen to each of them complain about the other?

20 SPRINGS Winter 2010

t The Marx Group we’ve witnessed this disconnect between sales and marketing teams countless times. Each one points his or her finger at the other.

We often see this when sales and marketing teams work in the same building, right next to each other.

But we’ve also observed this with larger multi-national companies that have corporate and regional marketing and sales teams.

We believe that the relationship between marketing and sales is critical for the success of a company’s sales strategy. In the course of our marketing planning for clients, we continue to experience a potentially lethal disconnect between these two teams.

When sales and marketing teams are aligned in their purpose, mission, messages and methods, and both teams have open channels of communication, the power—and resulting leverage that becomes available— is formidable. The company connects directly to the heart of its target audience. Internal communications are in line with company goals and the drive to be territorial is completely eclipsed by a substantial increase in revenues and new business.

Most companies spend their budget on a variety of marketing initiatives, such as creating or increasing awareness, lead generation and promotions. Within

A

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Avoiding a Lethal Disconnect –

these categories are multiple tactics like advertising, promotions, direct marketing, web sites, e-commerce, point-of-sale (POS), and sales support materials. The lethal disconnect is when sales and marketing lack agreement on focus with regard to deliverables or benchmarks for these programs.

The Problem The problem occurs when various divisions of a company, such as R&D, manufacturing, nance, marketing, sales and customer service develop and execute these initiatives without working together on mutually agreed benchmarks and timelines.

When a particular product launch or campaign is successful, a signi cant level of inquiries and leads can be generated. The leads are passed on to the sales team, but marketing has no idea what sales intends to do with them nor have they provided guidance (consistent with the marketing strategy) on how to do follow-up.

The result? Sales is left holding the bag and everyone points ngers at marketing.

The problem is then compounded because sales is focused on getting the business in for the running quarter. If the information coming from marketing isn’t complete, there is little value to the leads. If they do accept the leads, sales will often procrastinate on follow-up because they are “too busy.” The leads end up getting older and colder, and so does the relationship between marketing and sales.

Unfortunately, the ultimate loser in this “weakest link” process is the potential customer. They have taken the time and made the effort to respond to the marketing activity. In some cases they’ve invested valuable time to attend a seminar or exhibition and then they are left behind. Chances are this potential customer will not make the same effort again — no matter how compelling the value proposition!

The Result When the right hand does not know what the left hand is doing, the result is often a dis-investment by management of both sales and marketing. The marketing budget is not realizing an acceptable return on investment (ROI). Next thing you know, the marketing budget is slashed (Isn’t that what most companies do when times are tough?).

In the worst-case scenario, an impassioned decision is made to just stop marketing! This decision does double harm to the company. It destroys credibility and makes it that much harder for sales and marketing to

do their job. At the end of the day, the two teams have no one to blame but themselves.

Let’s be clear — we know sales and marketing people have an ongoing dialog concerning goals, initiatives and success. What we are talking about is a rigorous discussion, with clear-cut strategic planning and a mutual focus on results.

Here are a couple of proven solutions to help prevent this disconnect: Establish an institutionalized communication process between marketing and sales.

Initiate a comprehensive and flexible working relationship between the two departments, called “The Cartridge Marketing Model.”

Solution #1: READY Communication Process Designing and institutionalizing an ongoing communication process between sales and marketing will bring rigor to the conversation and clarify mutual

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expectations. Think of this as “READY-AIM-FIRE” — rather than what often happens, such as ready- re-aim.

First, get sales and marketing out of their silos and on to the same playing eld. Second, we urge you to include your outside marketing/advertising/ PR partner as part of your team. Involve them with your core values, your company vision and your sales and marketing goals. This should happen from start to nish. The power in this collaboration is especially potent when your marketing/advertising partners are seen as an integral element of your marketing department.

What’s the advantage? You’ll have an objective voice in the conversation and someone to help you focus on your mutual goals. They will listen intently from a deeply experienced marketing perspective, and will be solely dedicated to growing your business.

When you win, they win. Their grounded, objective and professional viewpoint will keep the conversation focused: Growing your brand, making more sales and generating more pro t. The internal dialog shifts from

politics, departmental differences and private agendas, to one of cohesion and consistency.

The Process Essential is a (minimum) one-day, closed-door, head-to-head meeting with sales and marketing (and ideally, your marketing/advertising/PR partner).

Minimum is a yearly major strategy session and quarterly review and readjust meetings. To eliminate interruptions, the meeting should be off-site. To ensure no biases, an outsourced, skilled facilitator should manage the conversation (this could be someone from your marketing/advertising/PR team or another consultant).

Keep on track and focus on providing solutions that support the goals of both marketing and sales. An effective guideline for managing conversations is “every complaint must include a request.”

As a result of this brainstorming session, a strategy can be developed of ine by a designated management group and presented back to the teams. We call this a Marketing RoadMap™. Once the teams agree on the strategy, a tactical plan and budget guidelines will follow. With sequential buy-in from all parties throughout the process, the tactics can be successfully launched, with speci c benchmarks and a clear picture of ROI. Would you Rather Spend Time Brainstorming or “Blamestorming”?

Here’s the clincher. Consistency is the key to effectiveness and longevity for your marketing communications. Everyone has to speak the same language: To each other, to your customers and to your prospects. That means the same team that meets to take part in the process outlined above, needs to be the team that continues to manage your successful ROI.

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Define the Marketing Model Marketing is based on the age-old principle that there is a market and from that market you want to get customers. Sounds simple, and it is. Now that marketing and sales are on the same page, marketing can do its research and come up with a plan that calls out the various marketing tactics it will use to ful ll the goals and objectives.

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Included may be research or market intelligence, trade or consumer shows, e-commerce, lead generation, advertising, web development or traf c building, public relations, co-op marketing with distributors or retailers, promotions and customer relations.

Once the marketing tactics are delineated, marketing meets with sales and presents the plan, in order to ensure that the sales objectives can be met.

Once approved, the next step is implementation.

Solution #3: FIRE AND EVALUATE It’s now time to get going with messaging, creative development and placing media, doing news conferences and news releases, designing collateral, publishing catalogs, creating new packaging, and more.

By launching these marketing tactics now, marketing will get valuable and grounded feedback from sales on how the marketing programs are working.

Both marketing and sales can evaluate and redesign on the y. This will be far more satisfying and successful since marketing and sales have developed trust, respect, accountability and commitment — all with the “we’re in this together” attitude.

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You’ll have faster decision making based on coherent marketing, sales and communications strategies — which means improved sales. Isn’t that the goal in the rst place? X Tom Marx is the president and CEO of The Marx Group, a full service advertising agency that specializes in business development, marketing strategy and communications support services primarily to the automotive and heavy duty aftermarket. Marx brings a depth of marketing and business knowledge from 25-plus years of experience in lead generation, direct mail, public relations and almost every discipline of marketing and advertising. He support his clients with highly strategic marketing planning and the implementation of marketing programs that create breakthrough results. This includes innovative processes such as Contract With Sales™ and The Cartridge Marketing Model™, which are highlighted in his book “Marketing Sucks! (And Sales, Too!).” To contact Marx, phone (415) 453-0800 ext.106, or e-mail tmarx@themarxgrp.com.

SPRINGS Winter 2010 23

Imagezoo/Punchstock

Manufacturers’ Representatives: The Original Outsourcing Solution

By Gary McCoy

pringmakers are scrutinizing every area of their operations to cut costs. To achieve these reductions, some are outsourcing various organizational functions such as payroll, human resources, information technology, or direct sales.

While outsourcing has gained wide acceptance and popularity during the past decade, to those in the manufacturers’ representative business outsourcing is not a new concept.

“We are the original outsourcing solution,” says Tom Powell, CFO and former partner with PSKB, a manufacturers’ representative rm based in Atlanta, Ga. that serves clients in the automotive aftermarket. Powell says reps have the advantage of longevity in the eld and extensive local knowledge of the territory they cover. “And we are highly motivated because they (manufacturers) pay us on a commission basis,” adds Powell.

S

The State of the Rep Business At one time outsourcing eld sales to manufacturers’ representatives only occurred because a manufacturer was too small to afford a captive sales force to cover a certain territory. While that practice still happens today as new businesses are formed, some companies with

24 SPRINGS Winter 2010

the resources to fund a direct sales force are turning to reps as a practical way to downsize.

When the economy makes wide swings, as it has recently in the U.S., more manufacturers look to trim their direct sales force and turn to reps for help.

So-called blended sales forces are becoming more common where a manufacturer looks to reps to sell part of their product line, and to their own captive sales force to sell the rest.

Rick Carr, national accounts manager for Senco Brands, Inc., has worked with reps for many years during his career selling industrial products. He’s also seen a strong occurrence of blended sales forces in recent years.

“In my current company, their direct sales force has been cut back by 40 percent of what it was two years ago,” he explained. “So they’re pretty lean with their factory people.”

He says if Senco wants to approach some markets, where they physically don’t have the manpower, they have taken on rep companies to reach speci c geographic areas or customer bases.

Steve Shedden is president of Shedden Sales Company, a two-person manufacturers’ representatives rm based in Libertyville, Ill. that primarily covers the state of Illinois. Among the 10 different manufactures that Shedden represents is Century Spring and their retail-focused line of springs to the hardware industry.

Shedden says that, in his company’s channels of distribution, he hasn’t seen the blended rep force. “We see factories being committed either one way or the other,” he said.

Steve Moreland, president of Automatic Spring Products, Grand Haven, Mich., explains that in recent years he has “whittled” down the number of rep rms his company employs. He says the three rep rms he still works with operate more like direct reps for his company.

Moreland follows more of the blended approach with one direct salesman who works solely for Automatic Spring Products. This salesperson is focused on servicing accounts that are geographically close to Automatic’s production facility in western Michigan.

He says many times the decision on whether to use a rep or direct salesperson comes down to one thing: “what best ts the customer.”

T raditionally r eps wer e hir ed to pr ovide a manufacturer with representation in specific geographic regions. While that is still primarily the case, Moreland says most of his reps are now based more on relationship rather than geography.

“It really comes down to who the rep knows and providing us with relationships that we don’t have on our own,” explained Moreland.

Reps More Technically Savvy While not everyone can boast of a dramatic success story from using reps, some springmakers know the value of the service.

Joe Pesaresi, president, Winamac Coil Spring, says their company has had great success using rep rms.

The company currently has 10 rms representing them to customers throughout the U.S. and Canada and most of the rms have worked with Winamac Coil Spring for a number of years.

The company uses reps and also has an internal sales manager, Steve Cameron, who’s been in the spring industry for over 30 years.

Gene Huber Sr., CFO of Winamac Coil Spring, says the image of the rep as the “old boy with a cigar doesn’t work anymore.” He says Winamac Coil Spring tries to educate their reps and give them as much power as they can to speak on the company’s behalf to customers.

“It’s worth it,” he says. “We have a wonderful relationship with our reps. They are very savvy businessmen on their own.”

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SPRINGS Winter 2010 25

In addition, reps are much more technically savvy than they used to be, according to Gene Huber Jr., vice president of engineering for Winamac Coil Spring. He explained that one of their company’s reps functions as the “engineering secretary” for one of their biggest customers.

“He literally keeps everything straight for what we do for this customer,” says Huber Jr. The Rep Advantage Brian Cohen has been in the rep business his entire 20-year career. After working for another rep company, he started his own agency, Arrowhead Sales and Marketing, nine years ago. In addition to being a rep for springs, he sells hardware, tools and items that go into the farm and ranch department of a retail store.

Cohen says the main advantage for a manufacturer to work with a rep rm is, “We already work with those customers they want to sell to.” He says that, many times, a rep rm is more important to a buyer because “we’re in front of them all the time for other product lines we do business with.”

26 SPRINGS Winter 2010

“The greatest advantage of a rep — freeing up your time as a manager — can also be the greatest disadvantage,” explains Carr.

“That’s because you’re competing for their time versus other companies they represent.”

Cost is also another advantage, says Cohen.

“There’s no cost to have us on board, other than the percentage we’re paid for our sales activity.”

Mac Dunn, a manufacturers’ representative for 35 years, is the owner of Dunn Sales and Marketing, Inc. near Indianapolis, Ind. He also reps for Century Spring and explains that when a manufacturer decides to use reps it is an economic and marketing decision for them.

“Manufacturers’ reps are a xed sales cost for the manufacturer,” said Dunn. “In good times and bad, they know what portion of their total costs will be for sales and marketing.”

Carr of Senco agrees regarding the cost of hiring reps. “It is much more reasonable than hiring factory reps,” Carr points out. “You get more results than having an inside sales force and the costs are always under control.”

Moreland agrees, “With a rep you pay only if you have a sale.”

Before working for Senco, Carr worked for a national manufacturer that worked with six rep rms.

“Having rep rms on your side really frees up your time as a manager, so you can execute a strategy nationally without getting involved in a lot of the detail work,” said Carr.

Carr believes reps are perfect for companies that want to develop a new channel of business or gain new customer relationships.

Shedden believes reps provide both longevity and consistency in their relationships with accounts. He says it comes down to experience and knowing how the buyer goes to market, what their corporate goals are, what their objectives are and what the buyer is trying to accomplish for their corporation.

“The experience and level of connection with our accounts gives a lot of stability to the manufacturer,” explained Shedden.

On The Other Hand While reps can be a great advantage for a manufacturer, using them can also pose some challenges.

“The greatest advantage of a rep—freeing up your time as a manager—can also be the greatest disadvantage,” explains Carr. “That’s because you’re competing for their time versus other companies they represent.”

Carr says, “Sometimes these guys aren’t focused when you need them to be because they’ve got more than one master.”

Moreland says he’s also seen the challenge of serving multiple masters. “If we are a small line for a rep, we’ve sometimes found it dif cult for them to focus on our products.”

Dunn agrees that reps do serve two masters-the manufacturer and the customer. “We rst of all represent the manufacturer, but we also work for the customers,” explains Dunn. “From a customer standpoint we can be a real time saver.”

Dunn says because he represents multiple manufacturers, “when we call on that buyer we can take care of several vendor issues in one shot.”

When asked if reps are too independent, Shedden says it all goes back the level of expectation that a manufacturer has and their willingness to support their reps.

“I’ve heard this comment over the years that ‘Reps, they don’t follow-up on xyz for me as a factory,’” said Shedden. “I tell the factories, ‘You’ve got the wrong rep then.’”

Shedden says many times the problem lies with the manufacturer not providing their reps with the tools to do the job in the eld. He also believes some manufacturers do not truly understand their goals in the marketplace.

“I know factories that hire reps and then don’t teach, train or communicate well with them,” said Shedden. “If that’s the case, then they’re not going to get good results. It’s a two-way street. We have to be actively involved in planning with our factories and setting goals. And the factory needs to be equally responsive in terms of providing products on a timely basis, and the proper tools to sell it.”

Shedden believes if the tools and goals are in place “then it’s not as dif cult as people make it sound.”

18

Benefits of

Outsourcing Field Sales 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Predictable sales costs that go up and down with sales Standardized sales costs Lower sales costs Immediate market access Broader market penetration More experienced sales force Multifaceted, multiskilled sales team Wider, deeper coverage Stronger local relationships Reduced sales force turnover Training required only on product Closer-to-the-customer forecasting Better market intelligence Increased sales Knowledgeable advice and information – hear it like it is!

Risk-free exploration of new market niches Problem-solving approach outperforms product selling Vested partner in manufacturer’s success

(Source: Manufacturers’ Representatives Education and Research Foundation)

Challenges of Technology The demands upon today’s manufacturers’ reps are much higher than they used to be. Dunn is the second generation to run his family rep rm. He remembers when his dad, Bill, would travel up to two weeks at a time to visit customers.

SPRINGS Winter 2010 27

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el

“He didn’t even have a business (phone) line back in the ‘60s,” explained Dunn. “He gave everyone his home phone number and our technology back then was a blackboard by the phone. And I was trained at a very early age to answer the phone.”

Dunn said many times his father would not return phone calls for 1-2 weeks and customers would patiently wait until his dad returned home. “It was a much slower pace then,” said Dunn.

“Today it’s much faster and the demands are so much greater,” acknowledged Dunn.

“Everybody wants an answer now, right away,” said Shedden.

Shedden attended a trade show recently for Century Spring and asked colleagues gathered there: “What is an appropriate response time these days to a customer inquiry?” He said the unanimous answer was: “right away.”

Moreland says the level of expectations from customers has gone way up in recent years. This has in turn raised the level of expectations from reps.

Dunn says there are more demands on manufacturers than there used to be. In addition, he

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“I know factories that hire reps and then don’t teach, train or communicate well with them,” said Shedden. “If that’s the case, then they’re not going to get good results.

It’s a two-way street. We have to be actively involved in planning with our factories and setting goals. And the factory needs to be equally responsive in terms of providing products on a timely basis, and the proper tools to sell it.”

says everybody expects the rep to be a problem solver.

“I think today’s buyers and merchandise managers are overloaded, and more so than it used to be in the ‘old days,’” observed Dunn. “They want and expect the manufacturers’ rep to take those issues and problems off their desk.”

To The Future Jack Berman, a former manufacturers’ representative, devoted the latter part of his career to educating reps through his “Better Repping” seminars.

Berman died at the age of 94 on December 4, 2009.

In an interview I conducted with him a few years ago, Berman saw nothing but a bright future ahead for reps.

“Whenever there is a downturn in the economy, reps usually end up in a better position because they are forced to eliminate some of the fat in their company,” he says.

As a result, Berman believed in a “trickle-down” effect for reps.

“When a line that was direct from a big manufacturer is taken on by a large manufacturer rep rm they usually will drop a smaller line to accommodate them,” explains Berman. “That smaller line will get picked up by a mid-size rep rm who will in turn drop one of their smallest lines. Then the small one or two man rep rm will usually pickup that line. In the end, everyone comes out a winner.”

In today’s tight economy climate it appears that more not less outsourcing will take place. And the outsourcing of the direct sales function through use of professional manufacturers’ representatives will only continue to grow. X

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Turning Angry Clients into Happy Ones

t happens to the best of us. An upset client calls to complain about a product or service, and you’re completely caught off guard. How do you react? Do you fly off the handle right along with him? Or do you respond in a calm, thoughtful way that salvages and even strengthens your relationship? Author Maribeth Kuzmeski says that a high-pressure scenario doesn’t have to blow your client relationship sky-high—in fact, you can use it as an opportunity to truly connect with your client and keep him around for the long haul.

“Con ict is a normal part of business, and we all need to learn how to deal with it in the right way,” says Kuzmeski, author of “The Connectors: How the World’s Most Successful Businesspeople Build Relationships and Win Clients for Life” (Wiley, September 2009, ISBN: 978-0-470-48818-8, $22.95). “Some clients are just plain dif cult. And yes, ‘easy’ clients can also become dissatis ed for a variety of reasons. The good news is that there are effective ways to handle con ict and resolve issues—and these methods will actually strengthen your relationship.

“Remember that quite often, unhappy clients will not even tell you that they have a problem,” she adds.

“They simply move their business elsewhere. So, if a client thinks enough of you to give you the chance to repair a bad situation, take it. Play an active role in making your customer happy so that you can be sure to keep him or her on board with you.”

Creating clients for life is all about building relationships based on real human connections, and that’s the message found in Kuzmeski’s book. “The Connectors” describes how some of the world’s most successful professionals develop better, more pro table connections. And a big part of the way they do it is changing the way they think about con ict.

As much as we all hope for smooth sailing in our interactions with clients, con icts are bound to occur.

If they never happened, anyone could be a great connector. It’s what you do when there’s a problem

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that separates the (proverbial) men from the boys. Here are a few tips that will help you keep your business relationships from going bad...and rescue those that have started to sour.

Extend a Peace Offering It’s easy to reach out to clients when things are going well. However, it’s all too easy to avoid them when hard feelings are present. Don’t succumb to the temptation. Proactively reaching out to your clients can squash any negativity they may feel for you. Even the simplest of gestures can be effective: Offer an apology when you’ve made a mistake. Then, make things right by extending a peace offering. It doesn’t need to be anything extravagant. It can be as simple as a handwritten note, a refund, or a coupon.

“I know the peace offering works on clients, because it has worked on me,” says Kuzmeski. “At one point the relationship my rm and I had with a technology consulting group had turned sour. They had missed numerous project deadlines and just weren’t satisfying my expectations. I stuck with them, though, in hopes of repairing the relationship. Then one day, my contact Jeremy and I discovered we had something in common—a love for hockey! In fact, one day I mentioned that my son’s favorite team was the Pittsburgh Penguins, and that he and I would be watching them play in the Stanley Cup later that evening.

“Well, the Penguins ended up winning, and much to my surprise, Jeremy sent my son copies of magazines featuring their big win, a copy of the actual Pittsburgh newspaper from the day they won, and a few other items,” she adds. “None of what he sent cost very much, but the impact of his gesture was signi cant. My son was beyond thrilled. He couldn’t believe that one of my contacts had sent something for him! As for me, it immediately changed the way I felt about the company.

My feeling was, ‘Really, they can’t be all that bad. I

SPRINGS Winter 2010 29

If an angry client calls you fuming mad, your knee-jerk reaction might be to argue.

Remember, though, fighting anger with anger seldom works.

No matter how tough it is, do the opposite of what you feel like doing. Take a deep breath and remain calm. And most of all, diffuse your client’s anger by immediately assuring her that you will make it right. mean, they are hockey fans, and they were nice to my son.’ Jeremy may not have known it, but he extended a peace offering that helped preserve my company’s relationship with his.”

Don’t Follow Your “Strike Back” Instincts If an angry client calls you fuming mad, your kneejerk reaction might be to argue. Remember, though, ghting anger with anger seldom works. No matter how tough it is, do the opposite of what you feel like doing.

Take a deep breath and remain calm. And most of all, diffuse your client’s anger by immediately assuring her that you will make it right.

“When faced with dif cult situations with clients, instead of giving a reactionary, defensive response, offer solutions,” says Kuzmeski. “Your rst reaction may be to explain why you are right, why the client is overreacting, or to give her additional information so she can better see the situation from your point of view.

However, if you check those reactions and instead start working toward a resolution, your chances of keeping that customer are much greater.”

When confronted with an angry client, say something like, “I know we did not satisfy your needs, and I assure you that we will do better in the future.

Can I offer you a free gift the next time you stop in, or a discount off your next service?” Your client may still want to ght, but you are dispelling her anger by staying calm and offering a helpful response. Just smile, take responsibility (even if you feel you haven’t done anything wrong), and offer solutions. You can’t control the way your client is going to act, but you can control your own actions. If you are reasonable, your client will eventually come around.

The solutions you offer may not be exactly what the client wants, but you are trying to smooth things over instead of arguing; therefore, the results will no doubt

30 SPRINGS Winter 2010

be better. The legendary retailing genius Marshall Field once overheard a clerk in his store having a discussion with a customer. “What are you doing?” he asked. “I’m settling a complaint,” the clerk answered. “No, you’re not,” said Field. “Give the lady what she wants.” We can all learn a thing or two from that.

Get Them to Listen to You By…Listening to Them Customers will listen to what you have to say if you respectfully listen to what they have to say rst.

Knowing that you are truly listening to their concerns can cause your customers to agree to your suggestions much more quickly.

“Very few people in this world take the time to practice ‘Curious Listening,’” says Kuzmeski. “We instead partially listen, get ready to respond, and let our minds drift. But if you can practice Curious Listening, which is a form of active listening, you will differentiate yourself as someone who really cares.”

Here are the four steps of Kuzmeski’s Curious Listening: 1. Hear the essence of what your customer is saying by repeating back what you heard.

2. Ask questions so that your customer knows that you are actively seeking to understand why something is important him.

3. Make sure you aren’t acting on unsubstantiated assumptions. Confirm with the client that you have correctly understood what he is saying.

4. Listen for the “remarkable.” In every conversation you have with a client, he will say something unique and remarkable. If you listen for his “remarkable,” you will be able to come back to that later (even in a subsequent conversation) and connect with him on a different level. The “remarkable” may be something as simple as, “I’m thinking about taking an October vacation to Paris,” or, “I’m a Packers fan,” or, “We just landed our largest client!” The key is remembering it. It shows you are really curious about what happened, how the other person feels, and what resolution was reached.

Have a Standard Service Protocol at the Ready Creating standards, procedures, and methods of dealing with clients and servicing their needs can really help when it comes to resolving con icts or handling a dissatis ed customer. By creating a service protocol in advance, you provide a way to “enforce” how client con ict situations are handled. This allows you and your employees to more easily resolve issues and deal with those impossibly and consistently dif cult clients.

“When developing a service protocol, start by recalling past situations,” says Kuzmeski. “Consider how and when a dif cult client became dif cult. Was a resolution reached? If so, when and how? By examining

Clients who feel a connection with you are loyal and will stay with you—sometimes forever. Dissatisfied clients not only go elsewhere, but they also tell others of their dissatisfaction how dif cult clients were handled in the past, taking into account both good and bad examples, you and your staff can begin to set boundaries regarding what is and isn’t a proper way to react. Creating a protocol allows you to chart your path to resolution and gure out what you’re going to say before a problem arises.

“Your service protocol empowers your employees to become connectors,” she adds. “Often, they might think offering a discount or a coupon is the right way to handle a situation, but they may be worried that you, their leader, won’t approve. With the protocol, they know exactly what they can immediately offer to the client. You’ll nd that effectively resolving problems with clients actually makes them more loyal to you because they see that you care about their business.”

worse is that those dissatis ed clients will each tell an average of ve other people about their displeasure with you. That means for every complaint, you could have up to 60 people who are walking around with a negative image of you and your company—and are talking about it!

“By actively and sincerely playing a part in resolving con icts with your clients, you’re showing them that you are willing to do what it takes to make them happy,” she concludes. “You are not just xing a problem for them. You are also turning those dissatis ed clients into delighted ones who may even become evangelists for your company! And we all know there is no marketing force more powerful than a customer who shares her delight with others.”

Maribeth Kuzmeski is the founder of Red Zone Marketing, LLC, which consults to Fortune 500 rms on strategic marketing planning and business growth.

Kuzmeski has personally consulted with some of the world’s most successful CEOs, entrepreneurs, and professionals. An internationally recognized speaker, she shares the tactics that businesspeople use today to create more sustainable business relationships, sales, and marketing successes. For more information, visit www.redzonemarketing.com and www.theconnectorsbook.com. X

Ask for Feedback Obviously, you don’t have to sit around, anxiously wondering when a problem is going to arise. There is a way for you to avoid some (unfortunately, not all!) client con icts. You can do it by ensuring that customers aren’t suppressing problems. And you do that by constantly asking for feedback. (It’s amazing how rarely businesspeople do this—they’re usually just keeping their ngers crossed that all is well—but a sincere inquiry about a client’s satisfaction is a true pathway to making a connection.)

“Don’t be afraid to engage your clients,” says Kuzmeski. “Ask them what you can do better, how you can improve. Supply them with feedback surveys so that they can anonymously share their thoughts, ensuring that they are as honest as possible. And when a problem has been solved, ask them if you handled it to their satisfaction and nd out if there is anything they would like for you to have done differently. Asking for feedback is a great way for you to rectify any possible or growing problems before they become so great that they sour a client relationship.

“Clients who feel a connection with you are loyal and will stay with you—sometimes forever. Dissatis ed clients not only go elsewhere, but they also tell others of their dissatisfaction,” says Kuzmeski. “What’s even

SPRINGS Winter 2010 31

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When is a Sale Complete?

by Frank Fazio

n our business I often hear that “such and such an order has been completed and shipped.” In my mind, it may have been shipped, but it’s not completed until it’s paid for.

Cash ow is the life blood of any business. Without more money coming in versus what goes out, a company will eventually die (go bankrupt). There are several factors that hinder or enhance cash ow. This article relates to cash from a sale.

Years ago, terms generally were 2 percent, 10 day, net 30. Boy has that changed! Over the years, many companies would take the discount and pay beyond the 10 days, more likely stretch it to 60 days and longer.

So much for the discount. Today many companies are requesting 90 day terms. At Diamond Wire Spring, we have dug our heels in and opposed such requests.

Remember a sale is not a sale until it’s paid.

We monitor our accounts receivables very closely to make sure it is in alignment with good business practice, while at the same time we don’t want to be so stringent that we lose a customer.

Although we know it may not be possible or even legal, we have often talked about SMI being a “clearing

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house” for delinquent paying customers in order to head off problems for the spring suppliers. Many times, I’m sure a poor paying customer oats from supplier to supplier to spread their credits.

Recently we’ve had a few customers request buying springs on consignment. Our response is a strong negative. To make parts, in which the labor, overhead and material is paid promptly, then to ship parts that sit in someone’s warehouse and not invoice the customer until they say so, and wait to be paid in “x” number of days is a real cash drain, and we think it is bad for our industry. We believe you should ship the parts, invoice the following day, if not the same day, and be paid within 45 days. That is ideal in today’s environment.

The most favorable business and industries are ones that have good cash ow. Let’s keep the spring industry in positive cash territory and remember that a sale is not a sale until it’s paid. X Frank Fazio is the vice president of sales for Diamond Wire Spring in Pittsburgh, Pa. He may be reached at (412) 684-1201, or email: fef@diamondwirespring.com.

SPRINGS Winter 2010 33

Flashback Manufacturers’ Representative Versus Direct Salesman: A Panel Discussion The subject of using manufacturers’ representatives and direct sales representatives has been hotly contested over the years (read today’s current thinking on the subject in our feature article on p. 24).

In this edition of Flashback, we reprint an article from the December, 1963 issue of Springs. This article grew out of a panel discussion at an SMI convention on the subject matter.

Except for minor editing to conform to the usage style of today’s Springs, the opinions of the moderator and four panelists are printed verbatim from 47 years ago. Some of these companies and their descendants are still part of today’s spring industry.

34 SPRINGS Winter 2010

William B. Timms, Jr. The Timms Spring Company Elyria, Ohio Moderator Which method do you use and why? This is the question we asked the four panelists whose comments appear on these pages.

We know some spring manufacturers who use manufacturers’ representatives exclusively while others have strong convictions that the direct salesman is the most effective. We also know some who employ both, dependent on circumstances.

The questions, it seems to me, that each one of us should weigh carefully are these: Am I getting the most out of my sales expense dollar? Am I serving my customer ... really giving him what he’s looking for ... serving his needs? Is the method I’m using building solid customers for my company?

A review of these four replies may help each of us in shaping or reshaping our own marketing policies.

D. H. Wharin, President Bohne Industries Ltd., Toronto, Canada Panelist Direct salesmen in our opinion are a much better form of contact with customers and prospective customers than that of manufacturers’ representatives.

The art of selling springs is that of gaining the con dence of the buyer in the ability of your company to produce quality springs, to meet reasonable tolerances at acceptable prices and get them to him in time for his needs.

These salesmen must be more than order takers.

Before ever taking to the road they should be well schooled in the methods of springmaking and be able to discuss normal problems that might arise in spring manufacturing. They should know the delivery situation on the various pieces of production equipment, the capacities of which they are selling.

When the customer’s con dence has been gained and orders are resulting, the direct salesman can be of invaluable help in maintaining this business through his ability as a good liaison man.

The above qualities can rarely be found in manufacturers’ representatives. Too often these men,

assuming they have other products to sell, will, follow the lines of least resistance and concentrate on the easy to sell items that give them the quickest return.

Their prime concern is with dollar sales not service.

F. W. Lutz, President, Lee Spring Company Panelist A book could be written, or perhaps has been written, on the subject of salesmen versus sales representatives. There are many factors to consider, i.e. size of company, number and location of plants, sales budget, experienced sales management, engineering service, etc., just to mention a few.

Therefore, I will limit my comments to our experience. Lee Spring Company uses a combination of both salesmen and sales representatives. Our own sales department limits its sales force to the New England and Mid-Atlantic states. We use representatives in all other states.

After a very careful selection of representatives, our experience soon taught us that to have them effective, we had to set up a sales manager for representatives only, to give them the same attention, education in our products, service and follow-through that we give to our sales force. We believe this is the vital key to important results from representatives.

Quite often representatives are selected and then forgotten with the hope that, left to their own resources, they will bring in suf cient sales to warrant them. This, of course, is a wrong premise.

In summary, we are very happy with the results of our program of using both salesmen and sales representatives, and credit should be given to our sales management for their intelligent handling of this combination and the welding of them into an excellent sales team.

S. P. Dyba, President American Spring & Wire Specialty Company Panelist The manufacturers’ representative has long comprised the majority of our sales force. Any sales stature we enjoy today is directly traceable to the excellent exposure our company has been given to our particular market by our representatives.

A manufacturers’ representative operating on the basis of a commission arrangement and whose livelihood is dependent upon income derived from his sales will generally fully cultivate his area of representationship (sic). Also most manufacturers’ representatives handle other industrial product lines normally compatible with our products of manufacture and by so doing gains entry in to all purchasing departments.

SPRINGS Winter 2010 35

The manufacturers’ representative also assumes full responsibility for all of ce, travel, and entertainment expenses and the manufacturer’s obligation rests solely in furnishing to the customers the product purchased and the payment to the representative of any commissions earned.

Recently we have utilized some direct salesmen in the area of our home of ce. As these salesmen are in daily contact with our management, their sales gains in our local market have been notable.

In conclusion, our own evaluation of the question is that we would undoubtedly continue with manufacturers’ representative in sales areas outside our local sales area, but serious consideration would be given to direct sales representation locally.

P.C. Clarke Hunter Spring, A Division of Ammeter, Inc. Panelist In Hunter’s early days, we placed emphasis on engineering service and used our own engineering personnel as the selling organization.

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However, in 1939, a regular sales department was created, comprised of 16 manufacturers’ representatives.

When it came to getting inquiries, these fellows were simply unbeatable. They snowed us with mountains of blueprints, samples, etc. This placed a terri c burden on our plant people trying to pick out and price the desirable items.

In 1949, we decided on the policy of hiring only graduate M. E.’s and training them for sales work in the eld. We started with three and two are still with us, both in sales executive positions.

In 1950, we brought the total up to six and in subsequent years have steadily increased the number, so that we now have 13 eld engineers. Backing them up in the plant is an experienced sales department.

Finally and briefly, Hunter owes much of its rapid growth and expansion to the work of these well trained, company and customer dedicated men. To me, sales representatives do have their place but not in engineering oriented spring business. X

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Support the Organization That Supports Your Business Every E very sspringmaker pringmaker iiss ppart art ooff tthe he iindustry. ndustry. E Each ach sspringmaker pringmaker sshares hares iinn tthe he ggrowth rowth aand nd ddirection irection ooff tthe he iindustry. ndustry. A Ass S SMI MI ggrows, rows, ssoo ddoes oes tthe he sstrength trength ooff the the industry industry and and every every ccompany ompany in in it. it.

SMI members have helped originate SMI programs in education, safety, failure analysis, technical knowledge and general manufacturing. There is more to do, and you can contribute to those industry goals by joining SMI.

All springmaking and supplier companies are eligible to join SMI in one of three membership categories: • Regular Members who produce springs for general sale NE

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• Internal Producers who manufacture springs for their own end products • Associate Members who provide services, materials or machinery used directly in the manufacture of springs

Support the spring industry.

Support your company.

Join SMI now.

For complete details, visit the SMI Web site at www.smihq.org SPRINGS Winter 2010 37 or contact Lynne Carr in the SMI Office, (630) 495-8588.

So, You Want to BUY

a USED Conveyor

OVEN! Imagezoo/Punchstock

By Daniel Pierre III

f you haven’t thought of it yet, you may soon ask yourself, “Why not take advantage of the good deals for a used conveyor oven?” With the number of auctions, bankruptcies, and consolidations going on right now, there are a substantial number of 10-year plus ovens on the market.

But, before you shell out your hard-earned money for “the deal of the century,” please remember that it’s a little like buying a 10-year-old car with 150,000 miles: “You better know what you’re buying.”

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38 SPRINGS Winter 2010

Here are some things you should look for and be aware of: Drive Motors – Many older ovens have DC indirectdrive (chain-driven) motors. The sprockets and chains are a nuisance and the DC motors have brushes that constantly need replacing. In addition, these motors usually have powdered metal and/or acetyl gears that are inef cient and rather noisy. Many of these motors have also been discontinued, so the inevitable future replacement becomes a costly problem down the road.

Current ovens use trouble-free, direct-drive AC motors with Hypoid gearing. In addition, most of these motors have built-in pulse generators that allow digital speed control function.

Speed Control – Older ovens have a DC control with a 270° potentiometer for belt speed adjustment (i.e. from slow-to-fast within one turn of the knob). This produces poor repeatability on setting cycle times and there is no compensation for voltage changes. Current ovens either have a lockable 10-turn potentiometer which gives wider speed control range with recordable settings, or a digital control that works with the motor pulse generator and automatically adjusts for motor RPM changes. Note: a digital speed control connected to the pulse generator is required to meet ISO and AMS 2750D requirements.

Oven Belt Height Adjustment – On older and smaller ovens, the belt height was adjusted through either a telestrut or a scissor design. After a few years these designs often became jammed and dif cult to operate. Plus, they usually required assistance via a forklift and more than one person was needed to make adjustments. Current ovens have jacks mounted to each corner of the oven which allows quick and easy adjustment of the oven belt height. More importantly, one person can do it by hand.

Fan Motors – Smaller ovens (less than 12" belt width) have fan motors that are directly connected to the oven fan. These motors on older ovens have a poor heat insulating rating and usually have a rather small

(5 16") diameter motor shaft. If the fan blade becomes bent or unbalanced, the small shaft is easily distorted and will cause vibration and failure of the fan motor.

Also, just like drive motors, older fan motors may be unavailable for replacement.

Today’s new, smaller ovens use a high temperature fan motor with at least a ½" diameter fan shaft for better stability and longer life.

Heat Shields – Most domestic conveyor ovens have a stainless heat shield that lines the heat chamber. The stainless shield not only provides a hard surface for circulating fan air to bounce off of, but also provides radiant heat off the stainless surface. If an older oven has been used to heat-treat excessively oily parts, the face of the heat shield probably has oil burnt onto the surface which eliminates the advantage of radiant heat.

This dramatically reduces the ef ciency of the oven.

Thermocouples – More than likely the thermocouple or thermocouples have never been changed. While the thermocouple may appear to be working, an old thermocouple becomes oxidized over time, which slows down the reaction time of the thermocouple to the chamber temperature change, causing greater temperature variation. It is recommended that thermocouples be replaced once a year to eliminate this variation. Ask your used oven dealer if the thermocouples have been replaced. That way you will know if this is an expense you will soon have to deal with or not.

Curtains – Old, frayed or non-existent curtains waste a lot of electricity and increase your operating costs by a larger degree than the cost to replace them with new curtains. This expense should be part of your calculation of the “real” cost of your used oven.

Elements – A 10-year-old oven, depending on its usage history, is probably going to need elements replaced in the near future. Element costs range from $30 to $100 per element, depending on the size of the element. De nitely plan on this potential, added cost in your “used oven” deal.

SPRINGS Winter 2010 39

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40 SPRINGS Winter 2010

Oven Belts – Warped, stretched or torn belts might have to be replaced and are a very costly expenditure.

Depending on belt size, costs can vary between $400 ~ $1,800 and may not be stocked by the OEM manufacturer (especially on older and discontinued models). In such cases, not only do you have an additional expenditure, you have a 2 or 3 week lead time to obtain another belt.

Manuals & Electrical Drawings – Have you ever had a manual or set of electrical drawings that haven’t disappeared after 30 days? It would be very surprising if one came with your used oven. Don’t expect the OEM to supply one at no charge.

Temperature/Cycle Time Charts – This is one of the most important things that you are not getting with a used oven. How do you know what temperature to set the oven at to achieve a part temperature for a speci c cycle time? All new ovens come with this very important information.

Certi cation/Temperature Calibration – The used machinery dealer or auction house cannot supply this. Certi cation can only be supplied by the OEM or an ISO approved certi er.

Burnout Detection and Other New Features – New ovens take advantage of new technology as well as current requirements concerning safety and repeatability of the heat-treatment process. Some of these new features, such as Burnout Detection, cannot be retro tted into older ovens without a major overhaul and/or expensive investment in upgraded ancillary components.

Guarantee – Is the auction house or used machinery dealer giving you a guarantee? If so, what does it cover and for what length of time? Is your deal really worth the oven in “as is” condition?

After considering these points, do you still want to buy that used oven? Well, before you do, maybe you should call the OEM and give them the serial number of the oven you intend to buy. They should be able to tell you some history, concerns, and availability of replacement parts.

This information will help you nd the real cost of the used oven. After all, would you buy a 10-year-old, 150,000 mile car without checking it out thoroughly?

Why not do the same with a used oven? X Daniel Pierre III is the president of JN Machinery Corp. which recently relocated its headquarters to Elk Grove Village, Ill. Readers may contact him by email at daniel@jnmachinery.com or phone (847) 439-0866.

Dynamic Graphics Group/Punchstock

Repair or Replace, Depreciate or Write-Off?

by Mark E. Battersby

n today’s economy, the question is often not whether to fix or replace equipment, fixtures, business assets or even the building housing the spring manufacturing operation; it is often, Which path is more affordable?

As a result, several dilemmas arise. Will the spring manufacturing operation benefit more from an immediate write-off for the cost of repairs? Or will the lack of profits and a big tax bill mean smaller depreciation write-offs in later, hopefully more profitable years, be more rewarding?

There is also the question of just what the Internal Revenue Service (IRS) will allow. The tax collector’s power to reclassify an immediate expense deduction as a smaller series of depreciation deductions stretching over the life of the property is yet another factor that must be considered.

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Repair Or Depreciate?

Every springmaker can, of course deduct all of the “ordinary and necessary” expenses paid or incurred in the course of normal operations during the tax year.

Unfortunately, a deduction is not permitted for any expenditure that is a capital expense.

An expense is considered a capital expense if it adds to the value or useful life of property or adapts property to a new or different use. Generally, capital expenses are deducted by means of depreciation.

Expenses that keep property in an ordinarily ef cient operating condition and that do not add to its value or appreciably prolong its useful life are generally deductible as repairs. Repairs include most routine maintenance chores with the notable exception of a new roof which is considered to be a capital expenditure.

Capital Means Permanent The expenses incurred in operating a spring manufacturing business are fully deductible in the year incurred. In contrast, capital expenses may, at best, entitle the spring manufacturing operation to a tax deduction that must be taken in installments over a number of years.

SPRINGS Winter 2010 41

One school of thought says any legitimate business expenditure that does not create an asset or bene t to the business for a period longer than one year is an “expense.” Many spring manufacturers believe that normal inspection, cleaning and testing, and the replacement of parts with comparable and commercially available and reasonable replacement parts are routine maintenance.

In the eyes of the IRS, however, those expenditures are all too often considered part of capital improvements and their cost recoverable only through depreciation deductions. In fact, any expenditure that contributes to prolonging the life of equipment, or any business property, is considered by both lawmakers and the IRS to be a capital expense and must be treated — and deducted over the same period — as the underlying asset.

Capital Means Permanent – At Least to Some Generally, a capital expenditure either adds an asset to the business or increases the value of an existing asset. In other words, the amounts paid to acquire new property for resale, such as inventory, or to keep for one or more years, are capital expenditures.

Capital expenditures also include the amounts paid by a precision, mechanical spring manufacturer or supplier to improve equipment or property it already owns.

Whether expenditures are a deductible repair or a capital improvement often depends on the context in which the expenditure was made. If an expenditure was, for instance, made as a part of a general plan of rehabilitation, modernization or improvement to equipment or other business property, the expenditure must usually be capitalized even though, standing alone, the expense would be currently deductible.

In the past, the courts often ruled that capital improvements and ordinary repairs made simultaneously were capital expenditures. The courts often drew an analogy between constructing a new building and rehabilitating an older one. The courts reasoned that during building construction, expenditures associated with carting away trash, painting windows or even washing windows could not, realistically, be separated from other building costs, and thus must be capitalized.

New Safe Harbor Guidelines Under a unique “safe harbor,” the maintenance performed on equipment or business property is not generally considered as improving that property (and, therefore, currently deductible). Routine maintenance would be the recurring activities that a spring manufacturing business manager or executive expects to perform as a result of its use of the equipment or property to keep it in ordinarily ef cient operating condition.

42 SPRINGS Winter 2010

The tax rules allow repairs made at the same time as an improvement but which do not directly bene t it, or which were made strictly because of the improvement, to be deducted as repairs. Using the IRS’s example, a company owning several trucks decides to replace the existing engines and beds with new components.

All of these costs would have to be capitalized because they are so-called “restoration costs.” If the company decides to paint the truck cabs, and replace a broken tail light (both repair costs if made separately), at the same time the new components are installed, the cost would be a capital expenditure. They would have to capitalize the cost of painting (treated as an expense that directly bene ts or is incurred because of the truck restoration). Of course, the company could currently deduct the cost of repairing the broken tail light (treated as an expense that does not directly bene t and is not incurred because of the truck restoration).

Vive la Différence Among the IRS’ tax rules is another safe harbor, one designed to virtually guarantee the immediate deduction for repairs and maintenance. The new safe harbor applies if, at the time the equipment or property was placed in service, the spring manufacturer reasonably expected to perform the activities more than once during the life of the equipment or business property.

In other words, whether an expense is “routine maintenance” would depend on factors such as the recurring nature of the activity, industry practice, manufacturers’ recommendations, the taxpayer’s experience and the taxpayer’s treatment of the activity on its applicable nancial statements.

The Balancing Act At the heart of our tax system is the principle that a springmaker’s income for the tax year should only be offset or reduced by expenses that contribute to earning the income for that tax year. If, for example, oor space is added to the operation’s business premises, or a new business vehicle purchased, the business has acquired an asset that will be used by and bene t the operation for a number of years.

If, on the other hand, the spring manufacturer were to deduct the full cost of that asset in the year it was acquired, income for that year would be understated — and overstated in all later years that asset remained a part of the spring manufacturing operation. Thus, instead of permitting immediate deductions for the cost of equipment, assets or property of a more permanent nature (that is, items that will bene t the business beyond the current year), the tax rules — and the IRS — require such expenditures to be capitalized.

How confusing is the IRS’s reasoning? Consider an example offered by the IRS itself involving a small retail shop that suffers storm damage to some of its roof shingles. Redoing the entire roof with wood shingles would not have to be capitalized as a betterment to the shop, and neither would redoing the entire roof with asbestos shingles if wood shingles were not available.

However, redoing the entire roof with shingles made of a lightweight, composite material that is maintenance free, non-absorptive, has a 50-year life and a Class A re rating, would have to be capitalized as a betterment to the shop.

Ignoring the Obvious For many springmakers and other businesses, seeking an immediate expense write-off is the only strategy they consider. Faster write-offs for “bonus” depreciation, the Section 179 deduction that creates rst-year deductions or expensing for some capital expenditures temporarily in ate the write-off.

But, what about a troubled spring manufacturer, one that is struggling to keep a oat, or a new business, neither of which has much incentive to minimize taxable income and/or maximize current deductions?

Everyone knows that the ever-vigilant IRS will quickly jump onto any effort to “distort” the income of

the spring manufacturing business. Usually this means reclassifying a deduction claimed as an expense as a smaller depreciation deduction because results will be noted in a period longer than one year.

Ignoring an immediate expense deduction is an option since it will not distort the springmaking operation’s income. Would the same be true if an otherwise deductible expense were labeled as a capital expenditure and claimed over a number of years be an acceptable strategy? The complexity of the tax laws and the dif culty of that particular question are both enough to warrant seeking professional advice.

While far from being simple, the difference between the costs of maintenance or repairs and capital improvements seemingly boils down to the impact on the spring manufacturing operation, its equipment or other business property. Spelling out a periodic schedule for maintenance and regular routine repairs can help. Clearly separating routine maintenance or repair expenditures from a larger plan of rehabilitation or modernization can also help maximize the current tax deduction for maintenance expenses -– if that will bene t the spring manufacturing operation’s tax bill the most. X

SPRINGS Winter 2010 43

Springmaker Spotlight

The third generation of family members at Winamac Coil Spring with a picture of their late grandfather, Walter Pesaresi, in the background (l-to-r): Dan Pesaresi Jr., Andy Pesaresi, Gene Huber Jr., and Tony Pesaresi.

Winamac Coil Spring A Family Business Built Through Hard Work

by Gary McCoy

44 SPRINGS Winter 2010

escendants of Walter Pesaresi, founder of Winamac Coil Spring, Inc. in 1948, consistently mention one trait about their late father, father-in-law, and grandpa: “hard worker.” They all agree that Walter’s hard work and dedication helped sustain the company during its difficult beginnings, and continues to propel the company forward some 62 years later. Though the demands and technical needs of customers have increased over the years, all of Walter’s descendants believe that making springs still comes down to an unrelenting dedication to absolute customer satisfaction.

The company, located in the rural north central Indiana town of Kewanna, originally started in nearby Winamac (where the company derived its name) in a rented garage. “Dad came home one day and told his wife, Theresa, my mom, that he was going into business for himself,” explained Joe Pesaresi, current president of Winamac Coil Spring. “He said the worst thing that could happen is: ‘I go back to work,’ showcasing his never see a negative attitude about life.” Joe, Walter’s youngest son, was just a year old when that statement was made, and now has 43 years of service with the company.

D

Though the demands and technical needs of customers have increased over the years, all of Walter’s descendants believe that making springs still comes down to an unrelenting dedication to absolute customer satisfaction.

Walter learned his trade along with his two brothers at a spring company in nearby Logansport, Ind., and had always wanted to start his own company. He found ve men who agreed to invest money in his edgling business idea. Within a few years of these humble beginnings these investors became restless and though it wasn’t easy, Walter was able to scrape up the money to buy them out to become the sole owner of the company.

Early in the beginning of Winamac Coil Spring, Walter and one of his rst employees were known for working all day, taking a few hours off for dinner and then coming back to the plant in the evening to nish a job.

Gene Huber Sr., who married Walter’s daughter, Barb, and is currently the company’s CFO, says that while his father-in-law worked hard, “If you had a question, he would stop and drop everything.” And he quickly added, “He never rushed you. As soon as you were done, he picked up that hammer and went back at it, wherever he had left off.”

While Walter was known for putting in long hours making springs, he still found time to fish, hunt mushrooms and drive down to Logansport every Thursday night to see his mother. “I would go with him (to visit his mother) and they would be speaking Italian and I didn’t know what they were saying,” said Gene Sr. with a laugh.

“Dad taught us the value of work, but also the values of a family and how to have a good time,” explained Joe. In 1957 Walter, with the help of community volunteers, moved the company to a former creamery building in Kewanna. “That original building had 3,000 square feet and Dad said he would never have to add more space,” related Joe; with a laugh, he further explained, “We have added on eight times since then!”

All in the Family After his death in 1981, the ownership of the company was taken over by Walter’s three children, Dan Sr., Barb and Joe. Gene Sr. has been part of the leadership team for many years, as well, and has been with the company for 44 years. Dan Sr. serves as chairman of Winamac Coil Spring and has 48 years of service.

Though not involved in the company’s day-to-day operations, Barb is the corporate secretary and Joe says

she shares her father’s trait of never seeing a negative.

“Barb is a carbon copy of that. She has a smile every day.”

A Company on the Rise “He was a springmaker,” said Joe of his father. “He was not a businessman.” Joe credits the company’s rise to when his older brother, Dan Sr., came to work at Winamac in 1961 after graduating from Saint Joseph’s College in nearby Rensselaer, Ind. with a business degree.

“He put the business side to Dad’s mechanical talent.”

When Dan joined the company, sales were at $235,000 a year. “He (Dan) grew it 15 percent a year from that point on and for a number of years,” said Gene Sr. In 1969 the company had 35 employees and the total sales exceeded $1 million. Fast forward 40 years and the company now has yearly sales in excess of $20 million and over 150 employees. The old creamery

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building is still there, but the company now boasts over 100,000 sq. ft. of manufacturing space.

In addition to the second generation leadership team of Joe, Gene Sr., and Dan Sr., third generation family members in the business include: Gene Huber Jr., vice president of engineering (26 years), Tony Pesaresi, auto coil department manager (21 years), Dan Pesaresi Jr., vice president of purchasing (16 years), and Andy Pesaresi, quality and ISO 9000 manager (8 years).

Everyone in the family points to the ‘90s as the era when the company really took off. Winamac Coil Spring was extremely blessed to be in a position to take in a lot of work in the tumultuous times of the late ‘80s and early ‘90s. This work expanded the company physically and in knowledge base as many long term relationships were developed with several customers who helped the company understand the values of systems and properly applied technology.

Gene Jr. recalled when the company outlined a ve-step plan for growth during this time and said, “We’ve gone beyond those ve steps, to probably seven or eight now.”

Looking back, Joe says he and Gene Sr. could have never dreamed they would get to where they are now.

“We knew we were a good company and everything.

But hard work and timing have just paid off over time, along with the resources we had,” said Joe.

46 SPRINGS Winter 2010

Gene Sr. says, “Our people came out of the woodwork to help us, they truly are our greatest asset.”

Today Winamac Coil Spring makes springs for a variety of products such as agricultural equipment, household appliances, lawn and garden products, railroad equipment, off-road recreational vehicles, and other industrial applications. The company produces compression, torsion and extension springs along with wire forms in wire sizes ranging from .008” to .625”.

They are a cold wound house that offers in-house shot peening, grinding, and stress relief. Powder coat, E-Coat and electroplating are done outside through local suppliers.

Accelerated Speed of Business When asked about their greatest challenge as a business, everyone in management at Winamac Coil Spring agrees that it currently is “speed of reaction to the customer.” Things were different when the company rst started.

Gene Sr. remembers when Walter would get a call from a customer requesting a certain kind of spring.

“After a little conversation, Dad thought he had a feel for what the guy needed and said: ‘I’ll send you a sample.’ And he would send it a few days later,” Gene Sr. explained. “The guy would call a few days later and

Previous page: Autocoiling department at Winamac Coil Spring.

This page, clockwise from left: The first automatic machine purchased

by Walter Pesaresi. It was gutted, rebuilt and powder coated by a group of employees as a surprise gift in celebration of the 60th year of business for WCS; the company motto adorns one of the buildings at WCS; second generation descendants of Walter Pesaresi (l-to-r): Dan Pesaresi Sr., Barb Huber, Gene Huber Sr., and Joe Pesaresi.

say, ‘That was right on. I’ll order a 1,000 of those.’ We’ve come a long way from that.”

Gene Jr. remembers when he rst started at the company he would get mail and respond to customers a few days later back through the mail. “Then it went to the fax machine and then to e-mail. And the expectations go right with it in speed,” he explained. “Not only in design, but it in everything...we make samples now; many times in less than a week. Technology is a big part of what we do today,” said Gene Jr. Dan Jr. says everyone is forced into the situation of “doing more with less.”

Whether it is in the agricultural or automotive market, Joe says customers are driven by the need to get to market quickly on a product. “They no longer have the long-term, year-and-a-half cycle that they once had.”

Joe agrees that the company has evolved since the ‘70s and ‘80s when a customer would call and want parts. “You always had time to quote them, and plan the process. Now with the demands of the manufacturing cycle, you have to react so much quicker.”

To improve the company’s exibility in serving its 300 plus customers, Joe recently led Winamac Spring into using “lean” and “5S” disciplines in their manufacturing activities. To date the company has had great success with 5S, but the lean initiative has slowed

somewhat due to the economic collapse in 2008. “We had it (lean) rolling before the economy put a damper on it,” said Joe. Gene Jr. interjected, “We really did.

Basically, if it started in the factory it was out of here in a matter of days.”

Winamac Coil Spring credits its employees and strong relationships with suppliers for being able to turn projects around so quickly. “We don’t scream,” said Gene Sr. of their working relationships with their vendors. “We have wonderful relationships.”

Everyone at Winamac Coil Spring has accepted the fact that responding to customers is now measured in hours instead of days. They say that’s what is reasonable and expected in today’s spring world.

Family Business Dynamics Running a family business can sometimes be a tricky proposition, but the management team at Winamac Coil Spring has made it work.

“We’ve been admired in the industry and blessed,” said Gene Sr. “We really have a wonderful camaraderie and we have a lot of fun!”

Joe said when he, Gene Sr. and Dan Sr. were all active in managing the company, “I used to tell people we have three presidents - my brother Danny is in charge of business, Gene’s president of nance and I’m the president of manufacturing.”

SPRINGS Winter 2010 47

If they had a dif cult decision to solve, Joe said the three leaders would get together and look at the issue from everyone’s area of expertise. In the end they gave more weight to the person on whose area of the business the issue was centered.

“The ability to sit down, have a conference and walk away with one initiative that everyone’s on the oor with. That was the success dad taught us,” said Joe. “Instead of coming out of the room arguing about it, we came to a consensus.”

Joe said that’s the way they have tried to run the whole business, “not only with our family, but also with our employees.

“We have many areas of our factory that the actual operators did the layout of machinery,” explained Joe. “They work in that area day in and day out, so they are the experts.”

Gene Jr. quickly added, “It doesn’t mean we don’t have a lot of emotions when we discuss issues. That’s called a right discussion.”

And Joe adds that, “We like to make a decision that the whole 165 people (employees) are on board with.

That’s what we try to model.”

Skills for A New Generation The making of springs has changed signi cantly since Walter Pesaresi started Winamac Coil Spring. Joe

48 SPRINGS Winter 2010

believes that the future of the spring industry will see more mergers and that it will continue to be a hightech industry.

Joe said when he started at Winamac Coil his dad hired four of his friends at the same time. “And they’re all still here and have been here for over 40 years,” said Joe. “These men have been invaluable in their contribution to the growth of the company and where it is today and they would all agree that the future employees we are seeking will come with different skill sets.”

Of future employees, Andy says it will take someone with “great math skills, an understanding of physics, and computer technology,” to name just a few. Gene Jr. agrees. “It’s going to high-tech in how you manufacture, how you tackle design problems, how you do failure analysis and testing.”

In regard to the third generation that will someday run the company, Joe says the biggest issue ahead is “ nding the right people that will work with them, like Gene, Danny and I did. I hope they’re blessed with that,” he says. “We were just so fortunate to have the right people through the years. And they’re hard to nd today.”

There’s no doubt that like their forefathers, the third generation who will take the reins someday of Winamac Coil Spring will continue to follow their grandfather’s path of hard work and determination. X

Inside SMI

2010 SMI Annual Meeting to Convene in St. Thomas

An award-winning Caribbean resort will be the setting for the 2010 SMI Annual Meeting from March 20-23. The Marriott Frenchman’s Reef and Morning Star in St. Thomas will host this year’s meeting that will feature presentations by Brian Tracy and General Nick Halley.

Tracy is the chairman and CEO of Brian Tracy International, a company specializing in the training and development of individuals and organizations. Tracy is a best-selling author and professional speaker who has helped over four million people achieve their goals.

He has studied, researched, written and spoken for 30 years in the fields of economics, history, business, philosophy and psychology. He is the top selling author of over 45 books that have been translated into dozens of languages. Tracy has written and produced more than 300 audio and video lear ning programs, including the worldwide, bestselling "Psychology of Achievement," which has been translated into more than 20 languages.

Tracy speaks to corporate and public audiences on the subjects of personal and pr ofessional development, including the executives and staff of many of America’s largest corporations.

His exciting talks and seminars

on leadership, selling, self-esteem, goals, strategy, creativity and success psychology bring about immediate changes and long-term results.

One of the most popular speakers at the 2008 SMI Convention, General Halley is a recognized expert on leadership, change management and integrity.

His leadership expertise was learned and developed under the most stressful conditions — combat.

General Halley commanded soldiers in Vietnam, Grenada and Desert Storm. After retirement from the military, General Halley had a distinguished civilian career at the vice president/general manager level in several prestigious international electronics organizations. General Halley is currently the on-air military and terrorism expert for WGN-TV in Chicago.

General Halley’s presentations are based on extensive international experience as a senior leader in government, military and civilian organizations. His presentations are insightful, interesting, educational and inspiring.

For more infor mation and registration for the 2010 SMI Annual Meeting, contact the SMI of ce at (630) 495-8588.

SPRINGS Winter 2010 49

Springs Managing Editor Receives Education Award

Dr. Keith Pretty (left), president and CEO of Northwood University, presents the school’s Automotive Aftermarket Management Education Award to Gary McCoy.

SMI’s managing editor, Gary McCoy, was one of eight individuals honored by Northwood University with its annual Automotive Aftermarket Management Education Award. McCoy received the honor in early November during a luncheon at the annual Automotive Aftermarket Products Expo Show (AAPEX) in Las Vegas, Nev. The Northwood Automotive Aftermarket Management Education Award is given to individuals in the automotive aftermarket eld who have made noteworthy contributions to education, on any level, inside or outside of the industry. They are people of stature and the award is recognition of substantial dedication over a number of years to the educational process and the eld of automotive aftermarket.

During the award ceremony, McCoy was cited as “a leading voice in the automotive aftermarket industry. Since 2000, Mr. McCoy has led Fairway Communications, Inc. as its founder and president.

The communications rm produces marketing and public relations plans,

50 SPRINGS Winter 2010

writes and distributes news releases to specialty trade and consumer publications, and handles all facets of communications. His 25 years in marketing and communications has created a platform where he has thrived in a niche area such as the automotive aftermarket.”

McCoy has been extensively involved in education, having helped promote the Global Automotive Aftermarket Symposium (GAAS) since 1998. He was rst involved with the Symposium in his role as director of communications for the Automotive Service Industry Association (ASIA) from 1993 to 2000 and later as the president of Fairway Communications. He continues to be involved in helping promote the Symposium, as an active member of the Symposium’s steering committee. In addition, he is a member of the Symposium’s scholarship committee. He received the 2004 Aegis Film & Video Award for writing and producing the GAAS “Career Accelerator” video.

The Symposium is an annual educational event that donates the

net proceeds to fund scholarships for students who are pursuing careers in the automotive aftermarket. To date the Symposium has helped over 1,450 students and has given out nearly $1.5 million in scholarship assistance.

McCoy has been an active member of the Automotive Communication Council (ACC) for over 15 years. He served as president of the organization from 2001-2002.

McCoy holds a B.A. degree in Journalism and Mass Communications from Iowa State University in Ames, Iowa. His experience in communications includes several stints in radio news and sports broadcasting, and six years in alumni association work.

In addition to his work with Springs, McCoy is the public relations director for The Marx Group and he is a contributor to Aftermarket Business and Aftermarket Insider magazines and APRA’s Global Connection newspaper.

He and his wife, Leanne, have ve children and live in Elgin, Ill. X

SPRINGS Winter 2010 51

Cautionary Tale: Marketing of Extension Springs Spring Technology

by Mark Hayes

he best way to market extension springs is to claim that your company’s springs outperform your competitors’.

If this marketing is based upon research results, it should be sound. However, very little research has been done to quantify the performance of extension springs until now.

A systematic study of extension spring loops has been conducted within Techspring, a European research project of which I was the project manager.

In this cautionary tale, readers will be exposed to Techspring research results in order to answer some of the marketing claims made to me by springmakers, like: • “I changed from English (crossover) loops to German, and the customer reported that life was now satisfactory.”

• “I changed from German loops to English, and this sorted the breakage problem.”

• “By increasing the hook diameter slightly, the life of the extension springs was improved.”

• “By reducing the hook diameter, it stopped the hook failing in service.”

• “Shot peening the end loops delayed the service failures by over a year.”

One or two of the above reports may be exaggerations, delusions or marketing hype of the worst kind.

As the croupier* to the spring industry might say “Messieurs, faites vos jeux.” Translated: “Gentlemen, place your bets.” Is your money on English or German hooks, enlarged or reduced loops compared to the body coils? Or do you put all your faith in shot peening?

One thing is certain from the Techspring project — the reliability of the extension spring was never

T

Mark Hayes is the senior metallurgist at the Institute of Spring Technology (IST) in Sheffield, England. He manages IST’s spring failure analysis service, and all metallurgical aspects of advice given by the Institute. He also gives the spring training courses that the Institute offers globally.

Readers are encouraged to contact him with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales. Contact Hayes at (011) 44 114 252 7984, fax (011) 44 114 2527997, or e-mail m.hayes@ist.org.uk.

52 SPRINGS Winter 2010

Figure 1: Fatigue fracture always occurs in this region

transfor med to complete satisfaction. The life improvement from each of these measures was always disappointingly small.

The project rst looked at English vs. German loops.

It was observed that springs which rolled smoothly on a bench performed better than those that did not. In other words, when the end hooks protruded outside the space envelope made by the body coils, the hooks failed prematurely on test. When the loops protruded, the springs “rocked and rolled” on the bench. While rock ’n’ roll has its place, it is not best for extension spring life. The research results were very similar for English or German loops for extension springs of index 8 and larger, when these hooks were accurately made.

So claims A and B cannot be justi ed. Many think that the sharp bend required to form the English loop is a stress raiser, and indeed it is (especially when the index is small), but this is not the position of maximum stress.

The loops all failed at the position shown in gure 1, whether they were German or English loops.

Body stress range /MPa Load Positions / N

Life without shot peening / cycles

Life with peening / cycles

200 – 750 (14 – 52N)

21.8k H, 23.3k H

53.4k H, 64.1k B

200 – 700 (14 – 48.5N)

27.6k H, 29.9k H

81.4k H, 114.6k B

200 – 650 (14 – 45N)

26.7k H, 46.0k H

189k B, 196k B

200 – 600 (14 – 41.5N)

44.1k H, 44.2k H

4 @ 1000k

200 – 550 (14 – 38N) H = Failure in the hook

2 @ 1000k

B = Failure at the sharp bend at the base of the hook

The bending stress at the failure position should be calculated. The Techspring project studied the formula used by IST, which is as follows:

shadowed from the streamed shot. The fatigue lives were as shown in the table above.

The moral of this cautionary tale is “Base your marketing on research and not on guesses.” That will improve the standing of your company and the industry in general. Claims A to E may all have had an element of truth, but to solve end loop problems you will have to wait for the next installment of this tale. * A croupier or dealer is a casino employee who takes and pays out bets or otherwise assists at a gambling table.(Source: Wikipedia) X

qb = bending stress in the loop or hook F = spring load DL = Mean diameter of loop d = wire diameter

This formula proved to be accurate and is recommended. It is one that is absent from spring design standards such as EN13906-2.

Looking at this formula it is clear that the stress in the end loop will be minimized if the loop diameter is reduced. I guess the claimants (and there have been a few), who said enlarged loops improved the life were deluding themselves. How much should the loop diameter be reduced so that the springs no longer fail in the loops? For the answer to this question, you will have to wait for the next installment of this thrilling tale of extension spring loop research in the next issue of Springs.

The claim made for shot peening of end loops should be examined rst, because this might be the simplest way to stop the end loop being the weakest point in an extension spring. Three hundred two stainless steel extension springs with accurately made English loops were supplied to the Techspring project.

They were tested without glass bead peening and all the springs failed at the position shown in Figure 1.

After glass bead peening, some springs failed in the loop, but others failed at the sharp bend at a position

SPRINGS Winter 2010 53

54 SPRINGS Winter 2010

Technically Speaking

Showcasing ASD 7.0: Springs in Series

by Luke Zubek, PE

n 1944, A.M. Wahl published the book “Mechanical Springs.” Wahl worked for the Westinghouse Electrical Corporation in the Research Laboratories. Although most of the information in the book is over 60 years old, it is still recognized as one of the primary sources of spring design information.

Many equations in his book are terribly complicated.

Chapter Six is titled: “Aids in Helical Spring Design Tables, Charts and Tolerances.” The rst section of this chapter is dedicated to the Spring Slide Rule, which Wahl stated was a “great convenience in making a selection of springs, particularly if a number of designs are to be investigated.”

After reading this I wondered what Wahl would think if he could see the newest advancement in spring design currently available from SMI and UTS: ASD 7.0. This upgrade has many new models, some of which I will review in the next couple of articles. The new addition to the software that I will discuss in this article is the ability to design springs with different parameters in series.

“Different parameters” is de ned as springs that contain different diameters, pitch, rate and free lengths.

Springs can be con gured with sets of coils having different pitches. If the coil diameter remains constant, the segment with the smaller pitch compresses to solid rst and the number of active coils is reduced.

This changes the spring rate — the force required to de ect the remaining active coils. Coil diameters for each segment can also be varied as can the number of coils per segment.

I

Luke Zubek, PE is the technical director of the Spring Manufacturers Institute, providing failure analysis services, technical assistance and educational seminars to the spring industry.

Prior to that, he was a metallurgical engineer for a major steel producer for 10 years.

He holds a masters of materials and metallurgical engineering degree from the Illinois Institute of Technology and a bachelors in metallurgical engineering from the University of Illinois at Chicago. Readers may contact Zubek at (630) 495-8588 or email luke@smihq.org.

Figure 1: ASD 7.0 designed spring that contains three springs and two transition springs, each with their unique diameter, pitch, rate and free lengths.

Figure 2: A series stack of three springs with different rates, diameters, pitches, free lengths, and wire diameter. Spacer height is also another variable.

Figure 3: A continuous series design with two springs and one transition. The ends are closed and ground.

An example that contains three different continuous springs in series is shown in Figure 1. This design also has two one-coil transition springs. These transition coils are user de ned and can vary from less than one coil to greater than one coil. Simply put, the math behind these transition coils averages the properties of the neighboring springs.

A series of springs refers to either continuous springs separated by transition coils (as shown in Figure 1) or stacked springs separated by spacers.

When spacers are used, not only can the design contain different rates, diameters, pitches and free lengths, but also the wire diameter and material can be varied for each spring, as shown in Figure 2.

SPRINGS Winter 2010 55

TABLE 1

Height vs. Load 4.50 4.00

Height

3.50 3.00 2.50 2.00 1.50

O- Cycle Points

1.00 0.0

10.0

20.0

30.0

40.0

Load

Figure 4: Height vs. load for the spring designed from the variables presented in Table 1.

Spring 1

Wire Diameter (In) 0.08 Coil ID (in) 0.64 Coil Mean D 0.72 Coil OD 0.80 Coil Max OD at Solid 0.8278 Spring Rate 18.69 Spring Index 9.0 Active Coils 8.438 Total Coils 9.4388 Pitch 0.1979 Pitch Angle 5.0 Free Length 1.75 Solid Length 0.7551 Solid Load (lbf) 18.59 Deflection to Solid 0.99 Stress at Solid (psi) 77394 General Performance Active Coils 15.775 Initial Rate 10.00 Free Length 4.102 Wire Weight (lb) 0.058 Performance at Rate Transitions Load (lbf) Transition 1 18.60 Transition 2 28.06

A nal example is a continuous series design with two springs and one transition coil, shown in Figure 3. This type of design is used when a lower initial rate that increases with increasing de ection is desired. The diameter for this design is constant throughout the spring. Take a look at Table 1 for the partial list of variables and output that is needed for this design and generated by the ASD software. This entire spring design was generated with only six inputs, in bold in Table 1.

There is a lot of information here and a lot more in the software. These designs can be simply generated but it takes a little spring design experience to understand how to use them.

Another helpful medium contained in the software is graphic visualizations of the spring under loads. Figure 4 shows the spring height vs. loads for a 5 and 24 pound load. The 5 lb. load is in the linear part of the initial rate, which 56 SPRINGS Winter 2010

Transition

Spring 2

0.08 0.64 0.72 0.80 0.8297 157.7 9.0 1.00 1.00 0.2579 6.5 0.258 0.08 28.06 0.178 116782

0.08 0.64 0.72 0.80 0.8321 24.89 9.0 6.336 7.3362 0.3179 8.0 2.09 0.5869 37.53 1.51 156170

Length (in) 2.24 1.80

Rate after Transition 21.50 24.90

is at 10 lb./in. As the load increases to 24 pounds the rst coil goes solid and the rate increases rst to 21.50 lb./in. Then the rate increases to 24.90 lb./in. after the transition coil goes solid.

It sounds confusing, but I hope it’s not. Another great feature of the software is the addition of selfcontained help. Basically, the entire “Handbook of Spring Design” is contained in the software. All you have to do is hit “F1” in the desired eld and relevant help information pops up.

Finally, all of these models are back solvable, so they can be used to solve for every practical combination of input variables you might provide. If you already have ASD 6.0, the upgrade to 7.0 is free.

In upcoming issues of Springs I will discuss other models that ASD 7.0 can design, like barrel springs, conical springs, and nested springs, just to name a few. X

Be proud that you are part of an industry that provides vital parts for all sectors of manufactured products.

Truth.

Almost nothing man-made moves without springs.

Truth.

It takes knowledge, skill and experience to be a successful spring manufacturer.

Truth.

A complete supplier support system of equipment, materials, test equipment and services are required to maintain the spring manufacturing industry.

Be Proud. Success in this industry, whether manufacturer or supplier, demands championship performance.

Be Proud. Together at SPRING WORLD® we share remarkable achievements in applying the latest technologies to create more productive machinery, advancements in metallurgy and fabrication of production materials, a higher level of quality and consistency of product and the means to measure it. These efforts enable improvements in products we all use and the tools to make them.

Be Proud. Your work contributes to the improvement of the quality of life for people from all corners of globe.

CASMI is proud to cheer for all of the Champions of the Spring Manufacturing Industry Manufacturers and Suppliers.

We’re Proud to Be on Your Team!

Celebrating 50 Years We welcome you back for SPRING WORLD® 2010 Donald E Stephens Convention Center Rosemont, IL October 13-15, 2010

www.casmi-springworld.org SPRINGS Winter 2010 57

New Products PeakFit® Respirators According to NIOSH, an estimated 5 million workers wear respirators in 1.3 million U.S. workplaces to provide protection against various airborne hazards.

In the wake of the recent in uenza outbreak of the H1N1 virus, even greater focus has been given to proper respiratory protection across the country. Proper use of respirators is critically dependent on the t of the respirator to the user’s face, but a good t must include comfort, or workers won’t want to wear them.

PeakFit ® from Gateway Safety is specifically engineered to combine comfort with safety, PeakFit’s design results in an almost custom t and dramatically enhances user comfort. The company says, “When workers are comfortable, compliance rates go up, which means potentially lower workers’ compensation expenses for employers.” For more information, phone (800)822-5347, or visit www.GatewaySafety.com/PR.

5S Marking Supplies Brady Worldwide, Inc. has launched its latest visual workplace products — the new 5S Marking Supplies.

Designed to help lean manufacturers organize the workplace, control space usage, and manage inventory and tools, Brady’s 5S Marking Supplies are an effective solution for marking the location of items on tool boards, workbenches, storage shelves, job staging areas, desktops and more.

Lean manufacturers around the world have implemented a methodology for workplace organization called 5S to help them eliminate waste, improve work ow and reduce downtime at their facilities. 5S uses border lines and ID labels to clearly identify proper storage locations for every item in the work environment.

If every tool has a designated location, employees waste less time looking for misplaced items and it is visibly obvious when a tool is missing from its assigned location.

5S markings can also be used to indicate maximum stocking quantities, signaling when to reorder, and thereby providing enhanced inventory control.

Available in continuous rolls and die-cut shapes, 5S Marking Supplies allow manufacturers to quickly apply borders, corner marks and outline silhouettes (or shadows) to a wide variety of surfaces, making it easy to determine missing items at a glance.

Made of .125 mm vinyl with industrial-grade adhesive backing, Brady’s 5S Marking Supplies are designed to resist scratching and abrasion and can last up to two to four years in outdoor use. They are easy to apply and do not peel, crack or fade when 58 SPRINGS Winter 2010

exposed to cleansers or solvents. For more information on Brady’s new 5S Marking Supplies, or to learn more about Brady’s full line of visual workplace and lean manufacturing solutions, visit www.bradyid.com/ visualworkplace.

2009 – 2010 Economic Handbook of the Manufacturing Technology Industry The 2009 – 2010 Economic Handbook of the Manufacturing Technology Industry is now available from the Association for Manufacturing Technology (AMT). This annual guide, compiled from numerous domestic and foreign sources, provides comprehensive domestic and international data on the manufacturing technology industry.

The Economic Handbook encompasses product and country speci c manufacturing technology data, as well as information on capital equipment purchases, by several major consuming industries. The domestic data covers such areas as employment, machine tool shipments, machine tools in use, and the nancial condition of the industry. The handbook also provides a full range of international data for 31 foreign countries, typically including production, trade by machine type, and trade by partner country.

PDF and Excel versions of the Economic Handbook are available to AMT members free of charge. Nonmembers may download the PDF version for $295 or may purchase a CD containing the entire PDF document for $345 plus shipping and handling. Contact AMT at (703)893-2900 or visit www.AMTonline.org.

Sandvik Loniflex™ Stainless Steel In response to customers’ requirements Sandvik Materials Technology has developed Sandvik Loni ex™ a new, high quality, low nickel austenitic stainless steel for spring wire applications that performs exceptionally well.

Developed to reduce the dependency on nickel, the new patent pending grade has already been extensively tested with major springmakers, producing various spring types with excellent success and consistent repeatability. It demonstrates all the demanding properties required, such as low

relaxation, good fatigue resistance, excellent workability and good corrosion resistance.

Sandvik Loni ex™ spring wire is available in coated, bright, polished, degreased or Nicoat nish and as flat wire in either cold rolled or annealed condition. Normal size ranges are valid for both round and at wire. The material can be supplied in coils, spools, compact coils or straightened lengths to best suit customers’ individual requirements.

For further information, visit www.smt.sandvik.com/wire.

Cavidur®D Coating Bekaert Diamond-Like Coatings (DLC), the worldwide leader in performance engine coating technologies, introduced its latest innovation, the Cavidur®D coating, at Performance Racing Industry (PRI) 2009.

Bekaert developed the Dymon coating machines to make its DLC coating technology accessible to a wider audience, and in particular to smaller racing teams.

The Dymon coating machines enable the company to upscale to larger volumes, which makes the coating more affordable. Being able to produce high-volume coatings led to the development of the Cavidur®D coating.

The structure of the Cavidur®D coating is based on the patented three-layer structure of the industryrenowned Cavidur®N coating. The latter has been protecting race engine components against friction and wear, and prolonging the components’ lifetime, for 15 years in large motor racing events such as Formula One and NASCAR. But with an increasing number of smaller race teams interested in applying Bekaert’s high-end technology on their engines and motors to improve performance, the company decided to develop an affordable solution speci cally for this market.

Because the deposition temperature for the Cavidur®D coating is kept below 250°C, it is possible to apply the coating on a wide range of engine components.

For more information, contact Tom Jenkins at (614) 286-0130, email tom.jenkins@bekaert.com, or visit www.bekaert.com/bac.

Magnalight Explosion-Proof Lighting Larson Electronics Magnalight offers a growing range of explosion proof lighting for industrial, commercial and military applications. Many hazardous location areas require custom fabrication for unique speci cations.

Recognizing that many of the custom con gurations are not unique to a single customer, Larson Electronics

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now looks to productize these solutions and make them available at magnalight.com.

Rob Bresnahan with Larson Electronics says the company doesn’t like email marketing, “So we are looking at Twitter as a way that our customer base can keep up with new lighting products.”

For more information, follow Larson Electronics on Twitter at LEMAGNALIGHT, phone (800)369-6671, or visit www.magnalight.com.

CardView Kanban Boards Magnatag has developed CardView Kanban boards to help manufacturers coordinate inventories and lean work ow. As the item cards are removed, the yellow and red pocket colors give a visual signal when supplies are low. CardView boards prompt workers to know which jobs are the top priority orders to work on next.

“We offer our patented CardView Kanban board kits in ve formats: Next-Job, Build-Board, Job-Load, To-Do, and On-Hand,” says Magnatag spokesman Christian Krapf. “Each comes ready to use in six size capacities including kanban cards in 17 colors, card printing templates, color pocket tapes and press-on FlashSpot signals so customers can tailor the board to their exact needs. CardView board users tell us they reduce inventory levels, work in progress and stock outs.”

For more information, visit www.magnatag.com/ kanban, or call (800) 624-4154.

IND131/331 Terminals Mettler Toledo of Columbus, Ohio has introduced the IND131/331 terminals – a new family of industrial process weighing terminals that provides maximum connectivity with smaller footprints.

The IND131/331 terminals are available in multiple enclosure styles to match any process environment, and include: IND131 DIN rail mount, IND131 J-box, IND331 panel mount, and IND331 Harsh/desk/wall mount.

The IND131/IND331 Industrial Process terminals offer solutions for applications requiring fast data exchange with a process controller, and improved speed and ef ciency by executing simple process control from the terminal. These terminals are compact and easy to integrate and set up. Their versatile form factors make them an economical solution for quick, accurate, high performance weighing for analog scales.

The IND131 and IND331 scale terminals deliver precision measurement data in a single, cost-effective package.

For more information, visit www.mt.com.

60 SPRINGS Winter 2010

Machine for Producing Air Coil Inductors HTC introduces the new HTC20LF for coiling double air coil inductor springs which require winding one coil body over another. Utilizing a standard four axes former (feed – cams, servo winder – servo slide), equipped with two sets of air winders, the HTC 20LF provides an economical forming solution for these complex shapes.

Since the material is normally coated, the machine is also equipped with a high speed, in-line wire stripper to further automate the process. Multiple coil layers (one coil body over another) are possible

by using a newly developed offset movement of the winding arbor.

This feature insures fast setup and smooth winding performance. The machine is also equipped with a touch screen operator interface.

HTC’s complete line of spring coilers and forming machines are available exclusively from Forming Systems, Inc. Contact them at info@ formingsystemsinc.com, or (269) 679-3557.

SPRINGS Winter 2010 61

The MEGATEX XD™ Screener The MEGATEX XD™ Screener, from ROTEX Global, LLC of Cincinnati, Ohio, delivers highly accurate screening performance in a compact footprint. Designed to meet the demanding screening requirements of highvolume applications, the unit provides higher capacity throughput and greater reliability than conventional screeners. The screener is ideal for a wide range of screening processes, including agriculture, plastics, and chemical applications. A unique elliptical linear motion provides unsurpassed screening performance with less downtime and lower energy consumption.

The MEGATEX XD provides 25 to 50 percent greater capacity per square foot of screen cloth in a compact footprint measuring 12' x 12' x 12' (for the standard model). Its unique, elliptical-linear motion— generated by an external drive cartridge—separates from ¼" to 100 mesh (6.3mm to 150 m). The external drive creates equal feed distribution to all screen decks, and mesh cleaning balls keep the screens clear of debris, resulting in unmatched screening performance.

A variety of options are available to further customize the MEGATEX XD to address various application demands. These include stainless steel or abrasion-resistant steel construction; rockbox landing areas to handle continuous impact on high-wear surfaces; single or double inlet plenums with sliding inlet connections and long-life Te on™ wear rings; and a unique sleeveless brush system and discharge vent connection for additional dust control without connecting sleeves. For installations lacking overhead support, the screener may be supplied with a oormounted suspension stand.

SMI Mourns Passing of Former Leader It is with deep regret that Springs announces the passing of Frederick “Fritz” R. Downs, 89, of Bristol, Ct. on July 24, 2009.

Downs was born in Bristol on Dec. 12, 1919, and began his career in the spring industry in 1940 at Humason Manufacturing Company, which later became Industrial Components. His service with the company was interrupted by four years of active service in the South Paci c with the U.S. Navy during World War II. He retired from the company in 1973 as sales manager.

During his career in the industry he was active in both SMI and the New England Spring & Metalstamping Association (NESMA). He served as president of NESMA from 1960-61 and as president of SMI from 1967-68.

Downs became the executive vice president of SMI in 1974, where he served until retiring in 1979. During his time at SMI it was noted in an October 1979 article in Springs that, “The number of members has increased from 232 to 355. Springs magazine, for which Fritz was the managing editor, has grown to a position of worldwide readership. The impact of the publication 62 SPRINGS Winter 2010

For more information, contact ROTEX Global, LLC, 1230 Knowlton St., Cincinnati, OH 45223, www.rotex. com, (800) 453-2321, fax (513) 541-4888, or email info@rotex.com. X

upon the industry has been dramatically demonstrated by the gain in advertising to 50 pages in May of 1979.”

In addition to his work in the spring industry, he served as president of the Manufacturers’ Division of the Bristol Chamber of Commerce, director of the United Fund, president of the Bristol Boys’ Club, director of the American Clock and Watch Museum, president and director of the Bristol Hospital, and director of the United Bank and Trust Company of Hartford, Ct. He resided in Bristol all his life and during his retirement he was the owner and operator of the New Cambridge Clock Company, Bristol. He was a member of the Asbury United Methodist Church, Forestville, Ct. Downs was the husband of the late Mary (Treadway) Downs. He is survived by a son, Tom Downs and his partner, L ynn Cavanaugh of Canton; a daughter and son-in-law, Susan D. and Richard Millington of Friday Harbor, Wash.; a sister, Georgine Cawley of Farmington; three grandchildren, David C, and Adam C. Argento both of Seattle, Wash., and Sarah M. Downs of Columbus, Ohio; a special friend, Lenni Strauss of Bristol; and a niece and four nephews. X

Advertiser’s Index A Admiral Steel (800) 323-7055 / 28 Alloy Wire International (866) 482-5569 / 23 ANK, Inc. +886-2-2204-2140 / 48 C Chicago Association of Spring Manufacturers Inc. (630) 369-3772 / 56 D Diamond Wire Spring Co. (800) 424-0500 / 31 Dispense Works, Inc. (815) 363-3524 / 40 E Elgiloy Specialty Metals (847) 695-1900 / 18 F Forming Systems Inc. (877) 594-4300 / inside front cover, back cover G Gibbs Wire & Steel Co. Inc. (800) 800-4422 / inside back cover Gibraltar Corp.

(847) 769-2099 / 61

I Industrial Spring Steel (215) 426-7000 / 10 Instron (800) 564-8378 / 45 InterWire Products Inc. (914) 273-6633 /1 J JN Machinery (630) 860-2646 /8 Julang Exhibition (800) 830-1658 / 16 K Kiswire (201) 461-8895 / 51 L Lapham-Hickey Steel (800) 323-8443 / 43 M Mount Joy Wire Corp.

(800) 321-2305 / 32 N NIMSCO (563) 391-0400 / 36, 53 P Precision Quincy (800) 338-0079 / 22 Precision Steel Warehouse (800) 323-0740 /9 Proto Manufacturing (800) 965-8378 / 26 Pyromaître Inc. (800) 231-7976 / 60

R Radcliff Wire (860) 583-1305 / 21 RK Trading (847) 640-9371 / 3, 14 S Simplex Rapid (563) 391-0400 / 19 Spring Manufacturers Institute (630) 495-8588 /37 Suzuki Garphyttan (888) 947-3778 /5 T Tool King (800) 338-1318 / 59 U Ulbrich Stainless Steels (203) 239-4481 / 54 United Wire Co. (800) 840-9481 / 25 V Vulcan Spring & Manufacturing Co. (215) 721-1721 / 62 W Wire Düsseldorf (312) 781-5180 / 11 Z Zapp Precision Strip (203) 386-0038 /6

Visit the Springmakers Exchange at www.smihq.org to buy surplus materials or machinery from SMI members.

SPRINGS Winter 2010 63

Snapshot William Lathrop Colonial HanDee Spring

Name: William Lathrop Nickname: Bill Company name, city and country: Colonial HanDee Spring, Bristol, Conn.

Brief history of your company: Founded in 1946. Colonial HanDee Spring works with a wide variety of industries including home improvement, lighting, mining, aerospace and medical.

The company produces coiled products, wireforms, flatforms and small stampings.

Colonial HanDee Spring uses coilers, CNC wirebenders, fourslide, secondary and automatic power press equipment.

Job title: President Birthplace: Norwich, Conn.

Current home: Farmington, Conn.

Family: Wife, Patty, son, Preston, twin daughters,Victoria and Olivia.

What I like most about being in the industry: The incredible diversity of where our products are used.

Favorite food: My Mom’s apple pie.

Favorite books/author: Hunt for Red October,Tom Clancy.

Favorite song/musician: I’m very eclectic: Dave Koz, Jay-Z, Carrie Underwood, Nickelback, Michael Bublé.

Hobbies: Motorcycling (though at the moment, I am sadly bikeless).

Favorite places: A tropical island, on the beach, drink in hand.

64 SPRINGS Winter 2010

The Lathrop family (l-to-r): Preston, Patty, Victoria, Bill, and Olivia.

Best times of my life: Are yet to come!

A really great evening to me is: A motorcycle ride on a moonlit night.

If I weren’t working at Colonial/ Han-Dee Spring, I would like to: Teach and/or go back to school myself.

There’s still so much to learn!

My most outstanding quality is: Sense of fair play.

The most difficult business decision I ever had to make was: I had to dismiss an employee who was trying very hard to do a job but could not be successful.

People who knew me in school thought I was: A smart guy and a decent basketball player.

I would like to be remembered in the spring industry for: Integrity, honesty, and intelligence.

I knew I was an “adult” when: My son was born.

But people will probably remember me for: Being tall.

The one thing I can’t stand is: Greeting cards that play music.

Why Partner With Gibbs?

Precision Medical Wire and Strip.

Now you can order your medical wire and strip from the same company that’s been supplying your other wire and strip needs for more than 50 years. Why split your order when you can get the finest wire and strip for every application all under the same roof.

No matter what you’re looking for, Gibbs can draw or slit exactly the premium quality product you need.

lowest total cost and now a complete inventory of the finest quality medical grade wire and strip.

That’s why so many leading companies have chosen to partner with us.

For information contact Jim Ashwell, 1.800.800.4422 Ext. 117, jima@gibbswire.com

Since 1956 Gibbs Wire and Steel has represented a combination of responsiveness, knowledgeable and reliable people, innovation and leading edge technology, the

The People You Can Rely On For Wire And Strip

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