Springs fall 2014 vol 53 no4

Fall 2014

The International Magazine of Spring Manufacture

A Publication of the Spring Manufacturers Institute / Vol. 53, No. 4

The World of Metals

Metals Supply: Six Trends to Watch 21 Can Aluminum Replace Steel in the Automotive Market? 28 Flashback: Customizing Stainless Strip for Specialty Spring Needs 39 2014 Spring World Preview 61

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President's Message From Hap Porter

Leading By Example

I suppose it could be said that I am a somewhat unusual person, at least politically. Having grown up and gone to school in Massachusetts (also known as “The People’s Republic of Massachusetts”), home of the Kennedys and bastion of various liberal enclaves and institutions, I nevertheless ended up on the conservative side of the political spectrum. And while a Yankee Republican is likely less conservative than, say, many Texas Democrats, we are still an endangered species here in good ole Mass.

I raise this issue because, on the national scene, our country is in the midst of a particularly contentious time between political parties, liberal and conservative factions, and even within groups which might be considered otherwise like-minded (think Tea Party vs “establishment” Republicans). The current rancor and dysfunction between the legislative and executive branches of the federal government make progress on important issues nearly impossible.

Respectful discourse and resulting compromise seem to be quaint notions from another time and place. And this fall, with 435 House of Representatives races and 36 Senate seats up for grabs, the tone and tenor of our national politics has been thoroughly mind-numbing.

But, fear not, there is one environment where people, enterprises and international groups can, and are, working together, supporting one another, and striving for the common good. I am, of course, speaking about SMI. The SMI membership is an admirably engaged group. There is an uncommon willingness from springmakers to support not only the Institute, but also their fellow members. When I was preparing to attend the European Spring Federation meeting in Düsseldorf this past April, I reached out to many of our board members, to hear directly from them about the state of their businesses, as well as their perception of the health of the overall economy. All were gracious and open in sharing their views and I was deeply appreciative for their support.

Beyond that specific event, SMI members have for years demonstrated their commitment to the organization, by serving as directors, committee chairs, or simply by participating on committees at our regular meetings. I have consistently been impressed by the degree to which our membership has willingly engaged in the running of SMI. Lynne Carr, our executive director, has been asked to help set up a possible U.S. tour by Italian springmakers. I have been struck by the welcoming invitations by many SMI members to host visits by these guests, should they come our way.

The success of SMI over the decades is directly attributable to our members, both regular and associate, working together with the organization’s staff, and with each other. I tip my hat to you all, in grateful appreciation of your selfless support of SMI. Commitment…dedication…cooperation…success. What a novel concept!

I only wish our political leaders could see how a group of competitors has looked beyond their parochial self-interest, to the benefit of the larger group.

Our organization has thrived thanks to this mindset, and we look ahead with excitement and confidence to all we will achieve in the coming months and years.

SMI members – be proud!

SMI Executive Committee President: Hap Porter, SEI MetalTek Vice President: Mike Betts, Betts Company Secretary/Treasurer: Steve Kempf, Lee Spring Immediate Past President: Steve Moreland, Automatic Spring Products At Large: Bert Goering, Precision Coil Spring Co. Executive Director: Lynne Carr

SMI Board of Directors Tim Bianco, Iowa Spring • Torsten Buchwald, Kern-Liebers USA • Mark DiVenere, Gemco Manufacturing • Simon Fleury, Liberty Spring • Ed Hall, Spring Team • Gene Huber Jr., Winamac Coil Spring • Charly Klein, Fox Valley Spring • Bill Krauss, Vulcan Spring • Don Lowe, Peterson Spring • Bill Marcum, MW Industries • Melanie Orse, Sound Spring Jennifer Porter, SEI MetalTek • Dan Sceli, Peterson Spring • JR Strok, Mohawk Spring • Bill Torres, Gibbs Wire and Steel • Jeff Wharin, Bohne Spring • Ted White, Hardware Products Steve Wunder, Duer/Carolina Coil

Springs Magazine Staff Lynne Carr, Advertising Sales, lynne@smihq.org Gary McCoy, Managing Editor, gmccoy@fairwaycommunications.com Dina Sanchez, Assistant Editor, dina@smihq.org Sue Zubek, Graphic Designer, zubekdesign@gmail.com

Springs Magazine Committee Chair, Ted White, Hardware Products • Reb Banas, Stanley Spring & Stamping • Lynne Carr, SMI • Raquel Chole, Dudek & Bock • Ritchy Froehlich, Ace Wire Spring & Form • Bud Funk, Fourslide Products • Bill Marcum, MW Industries • Brett Goldberg, International Spring • Tim Weber, Forming Systems • Europe Liaison: Richard Schuitema, Dutch Spring Association • Technical Advisors: Loren Godfrey, Honorary Member • Dan Sebastian, Honorary Member 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) 495-8588; 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 art photo credits: rangizzz/Shutterstock.com, ©iStockphoto.com/casadaphoto, ilbusca, joakimbkk, metalhorse, Florin1605, Creative_Improv, pixelprof, nikamata, PeskyMonkey, morkeman

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BEST IN CLASS! “How does Fennell Spring stay ahead of the curve? Through strategic investment in WAFIOS CNC spring forming, coiling and bending machines (FMU, FUL and BM series) that ensures we’re utilizing cutting-edge precision wire working technologies. We just added two new machines to our lineup with the FMK 2 and FTU 2.2B, allowing us to hold the tightest tolerances, reduce setup times and increase run rates. Fennell Spring is uniquely equipped to meet the critical demands of today’s automotive, aerospace & medical industries thanks to our partnership with WAFIOS. The growth we’ve realized in recent years directly correlates to our investment in WAFIOS machine technologies, ensuring our competitive edge and continued growth trends into the future.”

Tom Fennell Vice President

Marty Fennell President

Fennell Spring Company

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SPRINGS / Fall 2014 / 3

Precision Machinery for Wire, Tube and Formed Parts

Contents

28

30 53

FEATURES 21 Metals Supply:

Six Trends to Watch

By Gary McCoy

67

28 Can Aluminum Replace Steel in the Automotive Market?

By Julia Mihalkina and John Mothersole, IHS

30 Stainless Surges

By Helen Burnett-Nichols

DEPARTMENTS

39 Flashback

2 President’s Message Leading by Example

Customizing Stainless Strip for Specialty Spring Needs

By Seth R. Thomas

7 Global Highlights

43 15 Tips from Ronald Reagan for Communicating with Impact

12 Regional Spring Association Report

By Dan Quiggle

COLUMNS

49 New Rules to Impact the Lease/Buy Decision

15 Be Aware Safety Tips

By Mark E. Battersby

Where OSHA is Active

By Jim Wood

53 Thank You and Goodbye

17 IST Spring Technology

SMI Salutes Jim Wood on His Retirement

By Gary McCoy

Cautionary Tale: Testing Spring Loads

By Mike Bayliss

61 2014 Spring World Show Preview

67 Springmaker Spotlight

No Problems, Only Solutions: A Profile of Kerry Cannon and Cannon Spring Company

By Gary McCoy

75 Book Corner 77 Inside SMI 79 New Products 79 Advertisers’ Index 80 Snapshot

Kelley Christy, Diamond Wire Spring

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Global Highlights North America SpringWorld® 2014, the international trade show dedicated exclusively to the spring manufacturing industry, will take place October 8-10, 2014 at the Donald E. Stephens Convention Center in Rosemont, Ill. Show organizer the Chicago Association of Spring Manufacturers, Inc. (CASMI) believes the outlook for the spring industry is upbeat and positive.

“The spring indust ry is a fiercely competitive marketplace, with spring manufacturers facing all sorts of economic pressures and business challenges from their customers. That is why spring industry executives should be attending this year’s SpringWorld Show,” Rick Ross, the show chairman from Rockford Spring, recently stated. “It is the perfect time to do strategic planning, to step up and analyze company needs, and determine what equipment will best serve those needs. SpringWorld gives you a chance to see all the spring making machinery in a single place.”

The SpringWorld Show floor will present manufacturing technology from springmaking equipment manufacturers and wire providers from the U.S., and all over the world.

There are companies exhibiting from China, Taiwan, Japan, India, and multiple companies from Europe. In 2012 show registration included attendees from Australia, India, China, Colombia, Brazil and throughout Europe, as well as the United States and Canada. Registration is already running ahead of the pace for the 2012 show, suggesting that the economy is strengthening. The 2012 event had a total of 2,700 in attendance.

“We expect another strong attendance for 2014 at the Donald E. Stephens Convention Center in Rosemont. It is the place to be and see all the spring industry equipment available in one place,” said CASMI executive director and show manager Tom Renk.

Exhibitors will be offering high speed computer driven coiling, bending, and wire forming machinery, plus fourslide equipment and tooling. There will be testing equipment and specialized computer software, laboratory analysis, and other metal testing capabilities displayed.

In addition, there will be companies offering plating, heat-treating, stress relief, ovens, payoffs, and turntable equipment as well as equipment leasing options. There will be international material suppliers offering a full range of wire metal sizes and alloys.

For further information, please contact Renk at 847-4471705, tom@casmi-springworld.org, or tomr@ewald.com.

Newcomb Spring Corp. recently announced that the company is using an innovative measurement system to improve the speed and accuracy of its quality control processes for stampings, flat springs and wire forms.

The system, called the Keyence Instant Measurement (IM) System, can accurately measure part dimensions in seconds. This technology allows Newcomb to quickly conduct quality inspections with consistent results, without variations caused by different inspection equipment or operators.

The Keyence IM System uses optical technologies to capture hundreds of part dimensions. Most Newcomb Spring parts can be measured in approximately 30 seconds, versus traditional methods that can take upwards of 30 minutes. The Keyence System allows for a faster inspection process that identifies problems with parts and non-compliant dimensions. By quickly identifying issues, Newcomb can stop and recalibrate production equipment, greatly reducing the number of rejected parts, which helps the company to reduce waste and keep costs low.

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SPRINGS / Fall 2014 / 7

Global Highlights

“Using the latest technology, Newcomb Spring is able to increase the speed and precision of their quality and compliance inspections, all while reducing the time and labor required to complete those inspections,” said Robert Ortiz, project manager at Keyence Corp. of America. “We’re very excited to see them using our technology so effectively.”

The Newcomb Spring facility network is comprised of eight manufacturing plants, seven of which have a Keyence Image Measurement System, with the eighth plant awaiting its arrival in 2015. The technology has streamlined inter-plant operations, as each facility can compare consistent data.

“Keyence has made a remarkable difference in how we conduct our quality checks,” said Dan Tetreault, general manager at Newcomb Spring of Connecticut.

“Specifications for a number of different parts can be saved into the system, and recalled when needed. The operator simply calls up the order details, places the part on the Keyence System, hits a button, and the measurement starts. This really speeds up our QC processes, and provides consistent results. We can even confirm that parts we make today match the dimensions of orders we fulfilled months ago. Keyence technology lets us be very efficient, reducing waste and providing the highest levels of quality.”

Donald Jacobson, Chairman of the Board at Newcomb Spring Corp., with Ginger and Ron Hubbard, and Janet Jacobson, celebrating the festivities.

Newcomb Spring Corp. recently announced that Ron Hubbard, general manager of Newcomb Spring of Texas, is celebrating 50 years with the company.

Hubbard started with Newcomb Spring in 1964 and has held many positions during his time with the company. “Ron has been a vital part of the Newcomb Spring family,” said Robert Jacobson, president of Newcomb Spring Corp. “Ron’s managerial skills, engineering expertise and leadership have been an invaluable asset to our growth and success.”

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Haynes 25 is a trademark of Haynes International. Inc. Inconel, Incoloy, Monel are trademarks of Specialty Metals Corp.

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Global Highlights

Hubbard began his career at Newcomb Spring as a shipping clerk in the Atlanta facility, and was quickly promoted through various positions, gaining experience which prepared him for his next role. In 1971, he was tasked with opening and managing the company’s new division, Newcomb Spring of Texas.

Throughout his 50 years of service, Hubbard has been involved with many efforts related to the growth of Newcomb Spring and the implementation of new equipment and technologies.

“I was given an opportunity at a very young age,” said Hubbard, “and I was blessed to have great mentors, including

G. Donald Jacobson Sr. and Charlie Porter, who gave me that opportunity. I now have the great fortune to work with another generation of owners, who have continued the family traditions passed on to them. My colleagues, especially those with whom I work on a daily basis, and Newcomb’s great customers have all made it a wonderful 50 years!”

Newcomb Spring celebrated the 50-year milestone with a party on August 2 at the Omni Mandalay Hotel in Las Colinas, outside of Dallas, Texas. More than 100 people attended the event, including division general managers and owners Carol O’Connor and John, Robert and Donald Jacobson, Jr., many active and retired staff members and Hubbard’s family.

“We are so happy to celebrate Ron’s 50 years of service to Newcomb Spring,” said Robert Jacobson. “His commitment to the company really personifies what we are all about – working in a family atmosphere to manufacture the highest quality parts, meeting our customers’ toughest challenges, and providing the very best ser v ice. Ron ha s cer ta i n ly suppor ted a nd cha mpioned ou r mission, and we sincerely thank him for his hard work and dedication.”

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Vulcan Spring and Manufacturing Co., a le ad i ng desig ner a nd manufacturer of flat steel springs and related assemblies for diverse global markets, announces the appointment of Tom Pivnichny to the position of regional sales manager. In this role, Pivnichny will be responsible for sales in the western United States and select international regions for Vulcan’s indust rial and point of purchase markets.

In making the announcement, Don Jarvie, vice president of sales, stated, “Tom adds an exciting amount of drive and experience to our growing sales organization. He will help Vulcan Spring continue our growth by better serving our clients and to find new opportunities that align with Vulcan’s strengths.”

Originally from the Philadelphia a rea, Pivnichny holds a B.S. in business management f rom West Chester University in addition to significant experience selling technical products to a variety of markets.

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SPRINGS / Fall 2014 / 9

Global Highlights

International The Japan Society of Spring Engineers (JSSE) held its semiannual lecture meeting, including a poster session and annual general meeting, at Tokyo Denki University in Tokyo on June 5. Eight general lectures and one special topic lecture were presented to 164 attendees in a hall on the Tokyo Senju Campus. The opening speech was presented by Satoshi Suzuki, a vice-chairperson of JSSE in charge of events and a director of Chuo Spring Co., Ltd. The special topic lecture, “Present Status and Future Issues of Heat Treatment in Japan,” was presented by Dr. Kazuhiro Kawasaki of Japan Society for Heat Treatment and a senior managing director of Netsuren Co., Ltd. Five technical posters were displayed in another hall on the same campus. The winning first place poster was “Evaluation of Fatigue Crack Propagation Characteristics of SWOSC-V High Cleanliness Valve Spring Steel by Real Time Observation of the Fatigue Crack,” from Tatsuhiro Iwashita of Ritsumeikan University, et al. The second place poster was “Development of Technology to Render Fatigue Crack on Welded Area,” by Ryutaro Fueki of Yokohama University, et al.

Five certificates of Spring Technological Heritage were presented to one spring manufacturer and three spring machine manufacturers to express JSSE’s appreciation for their preservation of machines of historical value.

The annual general meeting was held following the lecture meeting in a conference room on the same campus.

The meeting was led by Mr. Sugawara, a trustee of JSSE in charge of general affairs and a general manager of Horikiri Inc. During the meeting, five proposals, 2013 Annual Business Report, 2013 Settlement of Balance Report, 2014 Annual Business Plan, 2014 Budget and Replacement of Trustees, were approved.

A reception was held after the annual general meeting in the same hall where the posters were displayed. Dr. Motoaki Osawa, a vice-chairperson of JSSE in charge of publication and a professor of Tokyo Denki University, made the opening speech, followed by the guest speech by Masayuki Ito, the chairperson of general affairs committee of Japan Spring Manufacturers Association (JSMA). Dr. Kenji Kanazawa, an honorary member of JSSE, made a toast to the development of the spring industry and the participants’ health. n

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ŠiStockphoto.com/Scott Hirko

Regional Spring Association Report NESMA Scholarship Awarded

By Ted White, Hardware Products The Ne w E n g l a nd Spr i n g & Metalstamping Association (NESMA) a w a r d e d it s a n nu a l a c a d e m i c scholarship to Emma Dinn on June 12, 2014. Dinn was the 2014 valedictorian for Bristol (Conn.) Easter n High School and plans to attend Yale University in the fall.

The awa rd wa s presented at Hawks Landing Country Club during the Main Street Foundation annual awards presentations. Main Street Foundation is a group that provides third party administration for several Bristol area scholarship programs.

George Fournier, the president of NESMA and the vice president of engineering at Acme Monaco Corporation, made the presentation.

Many other Main Street Scholarships were also awarded that evening.

NESMA initiated the scholarship drive in 2008, and by 2010 enough members had contributed $50,000 to fully fund the program. The first scholarship was awarded that year.

A scholarship is now awarded each year from the earnings of the fund.

A g roup f rom N ESM A ha s been work i ng w it h Ma i n St reet Foundation this past year to modify its application requirements to make the scholarship more pertinent in today's env i ron ment. A mong t he g roup members were Cindy Scoville, vice president of the Central Connecticut Chamber of Commerce and NESMA ad m i n i s t r ator, M a rk D iVene r e, president of Gemco Manufacturing Company and SMI board member, and Bud Funk, president of Fourslide Spring & Stamping and former SMI board member.

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George Fournier, president of NESMA, presented Emma Dinn with the NESMA academic scholarship in June 2014.

Currently the fund is set up to award two $1,000 scholarships per year. The first scholarship is set aside for a graduating senior from Bristol interested in pursuing engineering at the college level.

T h e s e c o n d s c h o l a r s h ip i s earmarked for a graduating senior who is the child of an employee or owner at a NESMA member company in good standing.

It is hoped that by modifying the requirements, applicants other than high school seniors (such as current college students or college applicants

who have finished high school in prior years such as returning veterans) can be considered for the scholarships.

NESMA hopes that once these c h a n g e s h a v e b e e n m a d e, t h e scholarships can be awarded from a broader range of applicants. This year only one scholarship was awarded due to a limited number of applicants.

For more information on NESMA, visit www.nesma-usa.com.

Regional Association Report

Pittsburgh-Ohio Regional Spring Association Meets Wit h over 25 i nd iv idua ls i n attenda nce, t he Pittsbu rgh-Ohio Spring Association met on August 7 at Silver Lake Country Club in Silver Lake, Ohio. The meeting included a light breakfast, meeting, lunch, and optional golf in the afternoon.

Companies represented included: Gibbs Metals, Interwire, Diamond Wire Spring, AMW Springs, Yost Superior, Ace Wire, Spring Team, Marik Spring, Mercer Spring, Elyria Spring, Industrial Steel and Wire, Anchor Abrasives and SMI. Disc ussion s a mong a l l t he members were held on the state of the spring business and how each company is working to comply with the Affordable Care Act. SMI’s executive director, Lynne Carr, provided an update on SMI activities, including plans for SMI’s new Metal Engineering eXpo to be held in October 2015.

F i n a l ly, t h e g r o up h e a r d a presentation from Daniela Osos of Gibbs Metals, Rod McKay of Industrial Steel and Wire, and Troy Long of Interwire. The panel was assembled to answer the question: “What is happening in the marketplace?”

CASMI Mourns Loss of Member The Chicago Association of Spring Manufacturers (CASMI) mourns the passing of Ron Pankow on August 15, due to complications stemming from his battle with colon cancer. Pankow was an active member of CASMI up until the sale of Allied Spring & Mfg. Co. in late 2012 to Jackson Spring & Mfg. Co. Pankow spent the majority of his career with Beltone Electronics in Chicago, and went on to own Allied Spring in Elk Grove Village, Ill. from

1981 until his retirement from the spring industry in 2001. His son Jeff took over the company that he built and was honored to do so.

Pankow was an active parishioner and usher for St. Cecilia Church, and a 4th degree member with the Knights of Columbus. He is survived by his loving wife of 50 years, Diane, his four children, Jeffrey (Susan), Debbie (Ken) LeComte, Michael (Sherri) and Mark (Courtney), 10 grandchildren, and

brother Robert (Diane) Pankow, along with many other family members and friends. Services were held in Mt. Prospect, Ill. In lieu of flowers, memorial donations were asked to be sent to St. Jude Children’s Research Hospital.

For more information, visit www. casmi-springworld.org. n

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Be Aware Safety Tips

Where OSHA is Active

By Jim Wood

E

Standard

1. 1910.305 2. 1910.147 3. 1910.212 4. 1910.178 5. 1910.303 6. 1910.1200 7. 1910.215 8. 1910.219 9. 1910.217 10. 1910.134 11. 1910.023 12. 1910.095 13. 1910.157 14. 1910.141 15. 1910.184 16 1910.106 17. 1910.132 18. 1910.151 19. 1910.179 20. 1910.037

Violation Wiring methods and components Lockout/Tagout Guarding requirements for all machines Forklift trucks Electrical, general requirements Hazard Communication Guarding bench and pedestal grinders Guarding power transmission Power presses (punch presses) Respiratory protection Guarding floor and wall openings Industrial noise exposure Portable fire extinguishers Sanitation Slings Flammable and combustible liquids Personal protective equipment Medical services and first aid Cranes and hoists Maintenance for exit routes

©iStockphoto.com/ndoeljindoel

ach year we try to keep the spring industry abreast of OSHA activities and where their efforts have been concentrated.

The following table lists the top 20 most frequently cited standards for fiscal year ending September 2013 along with adjusted penalties for SIC 3493, 3495, and 3496, which cover the spring industry. Penalties shown are the adjusted amount, not the initial penalties.

Penalty $ 1,560 12,291 12,869 956 2, 072 267 860 1,261 5,408 1,243 1,860 1,071 545 1,171 3,908 880 850 935 2,850 0

Whenever a safety violation does not have a specific standard that applies, OSHA cites the violation using the General Duty Clause 5(a)(1) which states: "Each employer shall furnish to his employees a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees."

Use of the General Duty Clause in the spring industry was for forklift drivers not wearing seat belts and ergonomic violations, with an average penalty of $1,980.

Jim’s Regulatory Tip: Here are some statistics that may be of interest and also some food for thought: • OSHA budget 2013 $535,246,000 • OSHA budget 2014 $552,247,000 • OSHA budget 2015 $565,010,000 • 2013 Total Federal inspections = 39,220 • 2013 Total State Plan inspections = 50,436 • 2013 Total OSHA inspections = 89,656 • 4628 workers were killed on the job in 2012, almost 13 deaths each day. n

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 630-495-8588 or via e-mail at regs@smihq.org.

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16 / SPRINGS / Fall 2014

IST Spring Technology

Cautionary Tale: Testing Spring Loads

By Mike Bayliss

Length Measurement Effects This is the error produced by the length measuring system and the load frame deflection. All measuring systems have an error, and different test machine manufacturers may use length measuring systems with different degrees of accuracy. For example, the length encoders used by IST for its range of test machines have a resolution of 0.0002 in (0.005 mm) and are accurate to ±0.00012 in (±0.003 mm), but that accuracy degrades when they are bolted into a testing frame due to imprecise deflection compensation and nonlinear deflections such as those from bearings. Hence a real life accuracy figure on IST machines is ±0.0004 in (±0.01 mm). On a high rate spring, 0.0002 in (0.005 mm) resolution can produce significant load variation and IST regularly supply machines with 0.0004 in (0.001 mm) resolution encoders.

50.64

50

0

50.64

Figure 1: Same spring turned over has a different free length

50

ccasionally the Institute of Spring Technology (IST) has been asked why different companies get different load test results when testing the same batch of compression springs. In one particular instance, results recorded by IST were different from those of the springmaker who had used the same model of load test equipment while the ultimate customer had recorded yet another set of values. Although all three sets of results were within the load at length tolerances for the spring design, the variation had, unsurprisingly, raised concerns on the part of the end customer.

Many springmakers will appreciate that there is a natural non-repeatability in springs such that, every time they are tested, the result can be slightly different, but many companies struggle to understand why this happens.

There is also the matter of tester to tester variation to take into account. All of this raises the question as to what would constitute a natural variation, and what would become a significant difference. In other words, which set of results truly reflect the performance of the spring?

The variation in spring load test results is made up of four main factors: • Length measurement effects • Load cell effects • Machine calibration • Spring effects

Figure 2: A spring compresses differently depending which end is up. this causes a different force vector through spring and, hence, different non-axial forces result. The different non-axial forces will also influence the measured axial force.

The machine datum or zero setting can also introduce errors if the platens are not parallel or if they are worn or damaged. A high rate spring placed offset from the machine center can cause the frame/load cell to deflect differently and hence introduce a length error.

Load Cell Effects The type of load cell used in spring testers is important because many types of cell are badly affected by non-axial forces and moments. Irrespective of how careful the load Mike Bayliss is the senior design engineer at the Institute of Spring Technology (IST) in Sheffield, England. He is principally involved with the design and development of IST’s extensive range of spring testing machines.

Readers are encouraged to contact IST at ist@ist.org.uk with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales.

SPRINGS / Fall 2014 / 17

cell selection has been made, all cells will exhibit some effect to a greater or lesser extent. It is thus good practice to always locate springs centrally on a test platen.

It is very difficult to quantify load cell effects, but they can be very significant and cause several percent differences in load measurements.

Machine Calibration For spring testing, the machine load cell should be accurate to ± 0.5% of reading or better. This means that, if the machine used by one company was reading high and

that of another company was reading low, a difference of one percent of load could be seen. It is also significant that many calibration companies do not adjust the machine or even tell people if the machine is wrong when they are checking the equipment. Similarly many calibrators/ operators do not check the length systems, and IST has seen errors of greater than 0.0039 in (0.1 mm).

Spring Effects End squareness has a considerable effect on the spring load as turning it upside down will usually give a different test result, as illustrated in figures 1 and 2. This means that, unless the C O M M I T T E D T O S E RV I C E , S U P P O RT & T E C H N I C A L E X P E RT I S E spring design is such that it will naturally only be tested one way up (e.g. for conical springs, beehive springs, springs that have a number of closed coils only at one end, etc.), it is advisable to test both ways up.

In addition, springs should be placed in the same orientation on the test platen (i.e. with the end tip at the same position) in order to minimize possible variations.

Springs that are laterally stiff Since 1954 Victory produce high side forces that will Machinery Exchange, impact on the load cell and frame (as Inc. and Victory mentioned above). Repeatability and Rebuilding & Parts reproducibility tests (R&R) assume Technology, Inc. are Every rebuilt that the test pieces are absolutely leading suppliers of or refurbished stable and all variation is due to the used spring coiling machine/operator, but spring effects product shipped and wire forming can make R&R tests appear very poor meets the exacting specifimachines, parts, even though the machine is good. cations and performance attachments and Springs themselves are not always you expect and require. stable items (design dependent) rebuilding services Dedication to customer and are subject to recovery when for the spring and wire forming satisfaction drives every aspect left unloaded or relaxation when industry. Our reputation is built of our business! stored compressed. Hence loads may on a solid foundation of honesty, Check our website for our appear to increase or decrease simply Call our convenient toll free integrity and a commitment to latest offerings because of the delay between testing number 1.888.918.9799 ■ excellence. www.victorymachinery.com at each company.

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Conclusion There is no way to quantify what would be a natural non-repeatability in spring load as it will always depend on the design in question.

The variation would ONLY constitute a significant difference when that variation falls outside of the load tolerance for the spring. n

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Trends to Watch

W

By Gary McCoy, Managing Editor

orking with metal is the one common denominator for all SMI members, whether they coil, punch or stamp it using a variety of materials from stainless steel to carbon to titanium or other specialty metals (wire or strip).

One fact is clearly evident: If the trucks with metal materials stopped coming to spring

manufacturing facilities, work would soon cease inside the walls, resulting in the inability for workers to coil springs, punch parts, or shape wireforms.

For this article, we surveyed the SMI supply chain of metal manufacturers and service centers to find out the challenges they face and predictions regarding the future.

ŠiStockphoto.com/redcollegiya

0

6

Metals Supply:

SPRINGS / Fall 2014 / 21

1

Trend One:

Few New Products “We’ve been selling to the spring industry for many years now and we haven’t seen any new products that the spring industry has wanted,” explained Stephen Kraft, marketing manager for Precision Steel Warehouse (PSW).

K raf t does sou nd a note of concer n rega rding aluminum, one product PSW does not carry. “We are not seeing the demand because it’s mostly high volume automotive,” he said. “I don’t think aluminum is being used widespread at the job shop levels for springmakers.”

The use of aluminum is increasing in automotive production, but the long term prospects of that are mixed (see related story: “Can Aluminum Replace Steel in the Automotive Market?” on page 28).

Bill Torres, president and CEO of Gibbs Metals said his company is not seeing a push for new products in wire.

“However, we do see a push at times to find new sources for existing products,” he explained. “This is typically driven by cost considerations.”

Despite the trend toward few new products, Springs publishes new product updates from time to time (see sidebar on new zinc aluminum coated wires from Bekaert).

2

Trend Two:

Niche Players Fare Better

or sophisticated item, where you have some value added in it like an assembly or sub-assembly, speed to market ends up being the key there. So that’s what is driving demand for us.”

Kraft says competition is as strong as ever for PSW. “It’s very difficult.”

He says PSW’s specialty has always been in its ability to supply smaller quantities, and narrow widths. “I think some of the high volume service centers are seeing there is more margin in small quantity, low volume areas. The edging, the oscillating; all the extras we can do for customers.”

Kraft says one market he doesn’t want to be in is flat sheet stainless steel, a commodity market that he says is brutal. “The margins are so thin on that,” he said.

With more than 25 years of experience in the steel industry, Tim Selhorst has been with American Spring Wire Corp. (ASW) for nearly 20 years, where he currently serves as the company’s CEO. “We started out with the intent of making noncommoditized, high performa nce spring wire for automotive and other high-end applications,” explained Selhorst of ASW’s niche. “We manufacture thousands of tons each year for these high-end applications, and we manufacture less specialized grades of material that are used for overhead garage door springs and other less stringent applications.”

ASW also makes high tensile shaped wires for many different applications, said Selhorst, springs for the stamping industry and reinforcement wire for oil and gas pipes.

Selhorst believes ASW will only survive if they are understood by customers to be specialized wire makers making products that come with what he calls “a better metal margin.”

Selhorst continued, “I think it will get tougher and tougher for commodity manufacturers that are independent, to survive.”

Byron Ress is the general manager for Rolled Metal Products. The company sells flat rolled product to the spring/wireform industry, which he estimates to be about 10 to 15 percent of the spring market.

Ress says if you are going head to head with commodity type products, you have to have some kind of advantage, and for his company it comes down to just in time (JIT) delivery service.

To tackle the challenges of manuHe says the service demands facturers of critical springs, Bekaert of customers have become a recently added two new products to larger and larger piece of the its portfolio of zinc aluminum coated puzzle to solve as a valued wires. “Using our advanced testing member of the supply chain. capabilities and extensive experience “I t h i n k t hat is d r iven as a producer of coated steel wires, we a lot by t he dema nd f rom created Bezinal® XP and Bezinal® XC,” our domestic springmakers,” said the company in a new whitepaper. explained Ress. “In order for While Bezinal® XP excels in corrosion and cathodic protection; Bezinal® them to maintain market share, XC maintains its coating integrity even speed to market is important.” under heavy deformation and high H e w e n t o n t o s a y, stress-relieving temperatures. As these “Somebody can use an off-theshelf product made in China.

That’s fine. But if it’s a custom

Bekaert Introduces New Zinc Aluminum Coated Wires

22 / SPRINGS / Fall 2014

properties remain fully intact after processing, no post-coating is required.

Serving customers in 120 countries, Bekaert is a world market and technology leader in steel wire transformation and coatings. Bekaert was established in 1880 and is a global company headquartered in Belgium, employing more than 25,000 people worldwide.

To download a copy of the company’s whitepaper on these new products, visit www.bekaert.com/ bezinal-xp-xc.

3

Trend Three:

More Overseas Competition One of the biggest trends in the last five years has been the introduction of more overseas sources for wire providing more competitive pressure on domestic wire producers.

Torres says several times a month he’s hearing of new foreign sources offering a very competitive price. He says the quality of overseas wire has improved dramatically, which puts more pressure on his company and others in North America.

Selhorst says that, in the ‘90s, wire producers faced the combination of the expansion of overseas wire opportunities for procurement and the contraction of the amount of parts made in the U.S. “It forced us to be more cognizant of what our customers need,” he said.

“We need to be sure that we understand their needs if we want to be their domestic alternative to imported wire,” he said.

Selhorst said ASW’s advantages are usually in the areas of strength or quality. “It’s been a good niche for us.”

Ress says Rolled Metal Products has not felt the same pressure from overseas mills. “I can’t speak for wire or carbon,

Torres says several times a month he’s hearing of new foreign sources offering a very competitive price.

He says the quality of overseas wire has improved dramatically, which puts more pressure on his company and others in North America.

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but so far this year in our stainless flat roll product line we have had two price increases go through successfully.”

He said the initial thought process was when the initial price increase went through, the company would see a significant increase in import product. Ress says that hasn’t been the case for Rolled Metal Products.

“The types of springs made with our materials are fairly specialized and don’t fall into commodity type products,” Ress related.

Reshoring, or the phenomenon of manufacturing jobs coming back to North America after being produced overseas, continues.

4

“Every once in a while a salesman will come in and say we got a job that was in China or somewhere else that is coming back,” explained Kraft. “It’s coming back, but more of a trickle.”

Trend Four:

Oversupply Could Eventually Lead to a Rebalance in the Market “In commodity products, there probably is oversupply,” said Ress. He says that is not the case with flat rolled product used for spring applications.

“The medium term outlook would be that there is excess capacity,” he explained. “But again that is commodity products.”

Metal-Based Durables Manufacturers are Fueled by Electricity and Natural Gas 1) Manufacturing Sector Energy Consumption by Fuel (2010) percent of total

n electricity metal-based durables

Unlike many manufacturing industries, the energy used for the production of metal-based durables (MBD) is mostly electricity and natural gas, rather than other fossil fuels (residual fuel oil, diesel, liquefied petroleum gases, natural gas liquids, and coal) or renewable sources. MBD producers are therefore well-positioned to benefit from energy efficiency programs and the increased availability and lower cost of natural gas (see graph 1).

MBD industries comprise fabricated metal products, transportation equipment, machinery, computers and electronic products, and electrical equipment appliances and components. Cutlery, aircraft engines, photocopiers, computer hard drives, and electric motors are some examples of the many products produced in the MBD industries.

Many other industries are more energy intensive than MBD industries, including petroleum and coal products, paper, primary metals, and chemicals.

MBD industries used 942 trillion British thermal units (Btu) of energy in 2010,

computer and electronic products

406

electrical equipment, appliances, components

101

transportation equipment

737

machinery

333

fabricated metal products

283

all other manufacturing subsectors (excluding metal-based durables)

0%

100%

50%

2) Electricity Consumption by Process percent of total consumption

metal-based durables

36%

35%

5% 14% 10%

n direct uses – total nonprocess n machine drive n process cooling and refrigeration

other manufacturing (excluding metalbased durables)

14%

52%

8% 12%

14%

n process heating n other

0% Source:

24 / SPRINGS / Fall 2014

value of shipments n natural gas n other fuels (billion 2005 $)

20%

40%

60%

80%

100%

Torres said Gibbs Metals is also seeing the trend of oversupply.

“If you look at some of the places where we have warehouses, every one of our competitors is there also,” said Torres. “I think when business is strong there is enough business in all markets, but when business is slow that’s when everyone probably feels the pinch in the small markets.”

Torres believes consolidation is something that will and should happen.

“The problem is you’re dealing with all closely held businesses,” explained Torres. “So it’s a little tougher for this (consolidation) to take place than it is in public marketplaces where it makes sense to go out and execute a strategy by buying up these companies. It just doesn’t happen as much on our side of the business.”

He believes there will be some changes in the distributor landscape in the next five to 10 year period.

“In several areas of the country, there is simply not enough business to justify having so many distributors.”

From his perspective, Kraft sees supply at a balanced level. “I think everybody has been watching their inventories and being very cautious as to what to bring in and what not to bring in,” he explained. “It’s a crapshoot.

I would just say that we are very cautious.”

according to the EIA Manufacturing Energy Consumption Survey (MECS) 2010. This represents seven percent of total manufacturing energy use.

MBD industries used 466 trillion Btu of electricity in 2010, representing nearly 20 percent of total electricity use in manufacturing. Electricity accounted for nearly 50 percent of total energy used by MBD industries. Some other industries where electricity use accounts for 40 percent or more of their energy use include textile mills, apparel, and aluminum production.

MBD manufacturing is typically housed in a building, and the manufacturing processes are not as energy intensive as many other industries. Direct non-process electricity use, which includes facility heating, ventilation, and air-conditioning (HVAC), facility lighting, and other facility support, represents 36 percent of MBD electricity use as compared to 14 percent of electricity use in other manufacturing (see graph 2). As a result, buildings are a particularly important part of efforts to reduce energy use in the MBD industries.

5

Trend Five:

Reshoring is a Positive Ripple, Not a Tsunami Reshoring, or the phenomenon of manufacturing jobs coming back to North America after being produced overseas, continues.

“Every once in a while a salesman will come in and say we got a job that was in China or somewhere else that is coming back,” explained Kraft. “It’s coming back, but more of a trickle.”

Selhorst says while he hasn’t seen a lot of new business popping up from reshoring, “I don’t see as much closure or contraction, and that’s a good thing.”

He cites a recent part they were working on with a company. “It was an automotive part that needed a shaped wire with some pretty exacting dimensions,” explained Selhorst. The part needed to meet a blueprint and called for heat treatment with consistency and hardness demands.

“We know these people real well and I think their first reaction was to pick up the phone and maybe try a solution from overseas,” said Selhorst.

3) Projected Shipments for MBD Industries (2012 – 2040) billion 2005 dollars 4,500 4,000 3,500

n electric equipment, appliances, components

3,000

n fabricated metal products

2,500

n machinery

2,000

n computers and electronic products

1,500

n transportation equipment

4500 4500 0 2012

2016

2020

2024

2028

The U.S. Energy Information Adminstration (EIA) Annual Energy Outlook 2014 (AEO2014) projects that shipments for MBD industries will increase substantially from 2012 to 2040 (see graph 3). MBD industries will benefit from the increased availability and lower cost of natural gas. These industries are expected to continue to have high levels of innovation that contribute to growth, particularly in the computers

2032

2036

2040

and electronic products and transportation equipment industries.

MBD industries are also expected to continue to improve their international competitiveness. Given the high dependence of MBD industries on electricity, there are significant potential benefits from improved energy efficiency associated with machine drives, buildings, and the reduction of losses associated with on-site electrical distribution systems.

SPRINGS / Fall 2014 / 25

“If scrap prices are going up and supply is getting tight, we tell customers they might want to buy now,” said Kraft.

“We like our salesmen to get as much feedback to the customer as possible, so they know whether they should buy now and warehouse it, or wait until the prices go down.”

26 / SPRINGS / Fall 2014

ASW got qualified on the part and eventually supplied the wire the customer needed for the job.

“While we still need to be reasonable with our costs, it was the opportunity for this company to procure the materials here in the U.S., not carry a long lead time and not carry major inventory,” he said. “That’s all worth something to the springmaker, especially if they have production issues. We’ve got people here in technical services that can get there the very next day to help them.”

6

Trend Six:

Surcharges are Inevitable, But Hard to Predict While no springmaker enjoys surcharges from their wire suppliers, the practice doesn’t appear to be going away any time soon.

Kraft says PSW tries to mitigate the surcharges by providing good communication with their customers.

“If scrap prices are going up and supply is getting tight, we tell customers they might want to buy now,” said Kraft. “We like our salesmen to get as much feedback to the customer as possible, so they know whether they

should buy now and warehouse it, or wait until the prices go down.

“It’s difficult in the stainless market because of the monthly surcharges,” explained Kraft. He said it’s difficult to quote orders too far out due to month-to-month changes and not knowing what surcharges might affect them.

Though not laughing at the difficulties of surcharges on everybody in the supply chain, Torres laughs at his ability to forecast them.

“If you want my prediction on surcharges, ask me what it is if you want to guarantee it will be wrong, because we are wrong so many times,” he explained. “Every time we open our mouths and say one thing, a week later we are usually wrong.”

Thoughts on the Future While supply challenges remain, North American wire suppliers remain relatively positive about the future.

Tor res says Gibbs Meta ls is optimistic. “We see springmakers investing in equipment, getting more productive, and looking worldwide; they’ll move production to Mexico if they think that’s necessary,” he explained. “If you look at all of North America—the U.S., Mexico and Canada—we’re not pessimistic at all about the coming years.”

K r a f t at PSW a l so r em a i n s optimistic and believes the Internet can help level the playing field.

“For us, we are looking globally,” said Kraft. “Through our website we see quotations from all over the world.

Some of the countries we are doing business with, customers wouldn’t have found us without the website.”

He cites the top countries for quotations as India, U.K., Canada, Mexico, Australia, China, Germany and Singapore.

I n lo o k i n g a t a lo n g t e r m perspective, Ress continues to see growth. “Flat springs and wireform products, I see the markets we are in with these products expanding,” he explained. “Housing is big for us with flat springs and I see where that’s going to do nothing but grow.”

Selhorst sees the ferrous steel world as an old, old business with lots of competitive alternatives and compressed margins.

“That’s what I’ve done all my life, and we’re going to continue to be really good at that where we can be,” he explained. “I do see more and more parts that are designed out of more specialty metals, higher strengths with lighter characteristics. That’s great news for me.”

While ASW does not do a lot of business in the nonferrous area, he says it’s an area they are attuned to and beginning to look at more carefully.

“That’s an area where a smaller business, privately owned, can probably invest and provide a service and a product to customers that they actually need.” n

SPRINGS / Fall 2014 / 27

Can Aluminum Replace Steel in the Automotive Market?

By Julia Mihalkina and John Mothersole, IHS

A

s the vehicle market moves seriously towards increasing f u e l e c o n o m y, t h e r e i s ever-greater discussion of material substitution. The theory is that if heavy steel can be replaced with lighter aluminum or plastic, then mileage will rise. We do not dispute that the use of aluminum in vehicles will increase. We do believe steel will continue to dominate. A bigger threat to traditional steel may be lighterweight steel, not alternate materials.

There are several problems in substituting aluminum for steel.

First, advances in steel technology mean experimental steels will rival a lu m i nu m for weig ht. Se cond, automakers are more familiar with steel than aluminum and there is a strong preference to stick with the material they know best. Third, aluminum is about three times more expensive than

28 / SPRINGS / Fall 2014

steel. Finally, there is the question of capacity. The global steel industry today is 35 times the size of the aluminum industry. Aluminum output would have to ramp up massively, with associated equally massive investment, to supply the market.

Steel ma kers recog n ize t he drive for light weighting and have responded strongly and well. New metallurgy and finishing techniques are creating steel with the same strength but only 60 percent of the weight. Essentially, the same strength comes from thinner product. This weight reduction moves steel closer towards even par with aluminum.

Second, steel is simply easier to work with, if for no other reason than there is an overwhelming history of its use by the auto industry. Conversion to an aluminum-intensive vehicle may require a wholesale redesign of

the manufacturing cycle—from the supply chain and factory re-tooling and design to aftermarket training and support throughout dealer networks.

As to cost, steel currently has a large advantage that is likely to persist.

One ton of automotive-grade sheet steel currently sells for about $750 per metric ton in North America and $650 in most other regions. One ton of aluminum in bulk form sells for over $2,000 globally, with sizeable regional premiums now a factor in markets.

Car buyers are sensitive to price. Most aluminum cars have been luxury models, such as the Audi A8. Although

©iStockphoto.com/RicAguiar

aluminum is starting to be used in trucks, it is largely in these heavy and highest-volume vehicles where weight reduction is significant enough to yield large incremental increases in fuel economy and the volumes sufficient to significantly swing the corporate average fuel economy (CAFE).

Even if all of those factors were to favor aluminum, there is the simple fact that annual steel production completely dwarfs aluminum production. Global aluminum output is about 45 million tons per year. Global steel production is about 1,600 million tons per year. A very conservative estimate of steel use

just for automotive would be 90 million tons per year. If all other uses for aluminum were abandoned—no cans, no foil, no aircraft, no construction, etc.—aluminum production would have to double to displace automotive steel.

The greatest threat to steel may be steel itself. In the United States, domestic mills send about 15 million tons of steel to automakers each year. New high-strength steels are expected to weigh only 60 percent as much. Therefore, shipments would fall to nine million tons. It is an open question as to what this means for the health of steel companies. If the

new steels are twice as expensive, then revenue would actually be 1.2 times higher (0.6 times 2). If the new steels stay the same price, it would be disastrous for mills, as revenue would only be 60 percent of old levels.

In summary, aluminum is likely to thrive in coming years as the auto industry changes to meet tougher fuel economy standards. It is an overstatement to say that aluminum will displace steel. Whether because of natural advantages of steel or limitations of aluminum, steel will continue to be a dominant material in auto making. n

SPRINGS / Fall 2014 / 29

Stainless

Kim Westerskov/Getty Images

U.S. STAINLESS SCRAP PROCESSORS SHOULD BE CELEBRATING RECORD HIGH PRICES, BUT THEIR FIGHT FOR SUPPLY HAS THEM FACING SHRINKING MARGINS AND TAKING UNUSUAL MEASURES TO BRING THE MARKET INTO BALANCE.

30 / SPRINGS / Fall 2014

T

he essential role that nickel plays in the production of stainless steel has meant, historically, that as the nickel price goes, so goes the stainless scrap price.

Unfortunately, this close relationship has meant that those in the stainless scrap industry are used to being at the mercy of a volatile primary metal price. When the London Metal Exchange’s (LME) three month-average nickel price plunged in mid-2013 to a four-year low, stainless consumers reported inventory related losses that affected their profitability, while stainless scrap processors said margins were tightening.

The extent of the challenges facing the industry became clear in September, when stainless steel scrap processor Keywell in Chicago filed for Chapter 11 bankruptcy, citing the drop in nickel prices and sales volume. Private equity firm Prophet Equity, Southlake, Texas acquired the company’s assets late last year.

Surges The nickel price has since had a reversal of fortune, rising from $6.25 a pound for the LME three-month average in July 2013 to an $8.22 average in May 2014. The demand picture for stainless steel applications in the U.S. seems to be improving as well, but some players in the scrap market say challenges persist. A convergence of factors at home and abroad this year mean competition for material is fierce, they say, and in the last few months, the U.S. has moved into the unusual position of having the highest stainless steel scrap prices in the world.

“The U.S. stainless market today is probably the firmest international market for material,” says Barry Hunter, principal of Hunter Alloys in Boonton, N.J. “It has demonstrated the best signs of coming out of what were terrible times and conditions. As our economy

By Helen Burnett-Nichols

moves forward, mill order books continue to look good for stainless steel finished product, and a continued need for scrap remains strong because of it. In view of current U.S. production levels, scrap availability is currently perceived as tight.” As a result, he says, many major players in the industry are facing the most interesting, complex, and intriguing market conditions they have ever seen.

Questions about not only how to create buying margins to secure and meet current domestic mill needs, but also how to meet the potential international demand for nickelcontaining scrap, loom larger and larger.

The Consumers’ Picture Stainless steel scrap consumers have faced difficult market conditions and uncertain demand in the last few years, which have led many of them to cut costs and restructure.

Although the European stainless steel market had been a substantially larger producing market than the U.S. market for many years, Hunter says, European consumers have been

SPRINGS / Fall 2014 / 31

“As our economy moves forward, mill order books continue to look good for stainless steel finished product, and a continued need for scrap remains strong because of it. In view of current U.S. production levels, scrap availability is currently perceived as tight.” focusing on consolidation and capacity-cutting. In 2012, Outokumpu in Espoo, Finland acquired the Inoxum stainless steel division of ThyssenKrupp in Essen, Germany in a move that combined the first- and second-largest suppliers of coldrolled stainless steel products on the continent, according to the European Commission in Brussels. Market watchers expected the acquisition to generate more efficient capacity utilization in Europe through melt shop closures in Germany as well as cost synergies.

Some of that capacity has now shifted to the U.S., however, in a move that some say is a game-changer for the domestic market. Outokumpu is ramping up production at its integrated stainless steel mill in Calvert, Ala., which opened for production in late 2010 under the ThyssenKrupp banner. The melt shop opened in late 2012, and the company

32 / SPRINGS / Fall 2014

plans to increase the frequency and number of melts until it reaches full production capacity—900,000 mt—in 2015, it reports. The mill’s ramp-up has increased the demand for scrap in the U.S., according to industry participants, as it becomes the fourth major U.S. facility producing stainless steel flat product, joining North American Stainless, Ghent, Ky., Allegheny Technologies, Pittsburgh, and AK Steel, West Chester, Ohio.

“The American market has always been able to support U.S. stainless production with available domestic scrap and have a substantial amount left over for offshore markets,” Hunter says, “but we never had to supply the potential increased tonnages represented by the total capacity of [what are] now four mills, with the addition of the new Outokumpu melt facility.”

The ramp-up of the Calvert mill comes at a time of some optimism for consumers after years of challenging market conditions. In its first quarter 2014 results, Outokumpu said it expects continued recovery in underlying demand this year, as well as “a positive impact on market dynamics” from the recent rally in the nickel price. Acerinox in Madrid, the Spanish parent company of North American Stainless, said stainless consumption increased about 8 percent in the North American market in the first quarter. Allegheny Technologies, or ATI, also pointed to improving business conditions in the first quarter, including early signs that demand from the jet engine, oil and gas, and flat-rolled stainless sheet markets is improving for the first time in several years.

Steel consulting firm MEPS (International) in Sheffield, England reports that, globally, last year’s total crude stainless steel output topped 38 million mt—an all-time high—and it expects global production to grow another 3.6 percent in 2014. European Union production in 2013 fell compared with 2012, but U.S. output began to trend upward, the company says.

Amid the improving demand picture, the Calvert mill “could change the dynamics of everything that we have seen in the industry,” Hunter says. Notably, it could create the need to import stainless scrap from Europe and South America, and within the U.S., the flow of stainless scrap could begin to move from the West Coast eastward to U.S. mills rather than to the Asian market.

“The mills that are the foremost in Europe are the same mills that are foremost in the United States,” Hunter says.

“If the European scrap is not required [in Europe], does it flow to the United States through the same channels?”

Markus Moll, managing director and senior market analyst with Steel & Metals Market Research in Reutte, Austria, says that while Calvert’s ramp-up has some in the industry wondering whether the U.S. will turn into a net importer of stainless steel scrap, this has yet to happen.

“We are not there yet, and I think probably [we] will never be. I think the U.S. has sufficient scrap to feed its steel mills,” he says.

The most recent trade figures seem to support that assertion. According to the U.S. Geological Survey, Reston, Va., U.S. exports of stainless steel scrap totaled 644,000 mt in 2013, compared with 624,000 mt exported in 2012. At the same time, the U.S. imported 227,000 mt of stainless steel scrap in 2013, up from 155,000 mt the year before, but still far below the export volumes.

Domestically, USGS reports that in 2013, stainless producers consumed 1.32 million mt of purchased and home stainless steel scrap, up from 1.3 million mt in 2012.

Outokumpu says it will finalize its technical ramp-up at Calvert this year, and it expects its full commercial ramp-up in 2016. Projecting delivery volumes of about 530,000 mt this year from its Stainless Americas division, the company predicts it will garner 25 to 30 percent of the NAFTA market in the next few years.

The current market is a “good news, bad news” scenario for stainless scrap processors, says Alasdair Gledhill, product manager at ELG Metals, McKeesport, Pa.. “The two big mills are North American Stainless and Outokumpu,” he explains, “and their demand for scrap has led to a situation where there’s not enough stainless steel scrap being generated in North America to supply their needs. So

very rapidly, the demand has put pressure on the supply of scrap to the point where the price has risen relative to other global markets, and now Nor t h A merica is t he highest-priced ma rket for stainless steel scrap in the world.” This is a situation that hasn’t existed previously in his tenure at ELG, he notes.

I n e a rly M ay, t he price for stainless steel scrap in t he U.S. was about $100 a ton higher than it was in Europe, Moll says, pointing to the start of the Calvert mill as a contributing factor. During the first 11 months of 2013, the average price for nickel-bearing stainless steel scrap delivered to purchasers in Pittsburgh was about $1,511 a ton, according to data from Scrap Price Bulletin (New York). That was down 14 percent from the 2012 average price. In spring 2014, buyers were paying between 82 and 85 cents a pound for 300-series stainless scrap—in the range of $1,640 to $1,700 a ton, says Jim Lawrence, a stainless steel and alloy consultant based in Wexford, Pa. As Gledhill puts it, “we’re being squeezed because we’re having to pay higher prices to buy scrap, [and] we’re having to sell it at the most competitive prices possible in the market. And so here we are making razor-thin margins, but in an environment where the volume has rapidly increased.” Indeed, Hunter says the biggest challenge on the processor side right now is creating margins. How can processors make money, he asks, when they are under such pressure to supply product?

Driving up the prices processors have to pay, Gledhill says, is a scrap supply base that has been shrinking since 2007 due to consolidation among scrap companies. “Now these larger companies are bringing more tons to market at a given time, and they’re commanding a higher price when they sell it to us,” he says. As prices rise, Hunter says, “suppliers of scrap to the major stainless processors have the option of holding onto their material until they decide to sell, the result being that, in times of good demand, the wholesale market has to entice them with pricing—and overpricing—in order to secure material so they can meet their supply commitments.”

Tom Buechel, owner of Rockaway Recycling in Rockaway, N.J., says that although his company saw more stainless steel scrap in the first quarter of this year than in 2013, sourcing material remains a challenge. “The supply

SPRINGS / Fall 2014 / 33

is out there, as is the demand for the stainless,” he says.

“The problem is that so many scrapyards and traders are clawing at the same work that it makes it difficult to close the deals like we used to.”

Lawrence calls the current market “a little scary” also because of the lack of supply of nickel units in scrap.

“I think that’s probably one of the biggest changes that we’re seeing today,” he says—“the supply side of stainless steel is getting tougher and tougher. Why? Because our manufacturing base has decreased probably a good 50 percent [from] where we were 30 or 40 years ago. We don’t have that same generation of scrap stainless, of scrap alloys that are coming into the marketplace like we used to.”

Frank Santoro, president and CEO of Cronimet Corp., Aliquippa, Pa., says there is no comparison between the current market and what processors were experiencing in 2013 and previous years. “We were able to buy scrap,

34 / SPRINGS / Fall 2014

the discounts at the mill were larger, they were able to buy scrap cheaper, and there was excess being exported to other countries,” he says.

The domestic stainless steel scrap market is in need of balance, Santoro says, and some of the larger processors are taking action in an effort to create it. They’re importing scrap—not because domestic material is unavailable but because it’s expensive.

“The price in the U.S. for buying material—the processor price—has gotten so out of whack with what the processors in Europe are paying that we’re looking to move scrap this way to try to ease the pressure here in the U.S.,” he says. “We’ve got to get the market back into line.”

ELG also is starting to move stainless scrap from Europe to the U.S., Gledhill says. “For the first time since I’ve been doing this, we are beginning to bring vessels in from Europe, 5,500 [gross tons] at a time. The scrap

©iStockphoto.com/kantapat

“Suppliers of scrap to the major stainless processors have the option of holding onto their material until they decide to sell, the result being that, in times of good demand, the wholesale market has to entice them with pricing—and overpricing—in order to secure material so they can meet their supply commitments.”

is always going to flow where the price is the highest, and that’s what we’re seeing right now.”

The competition in the market also can be seen in the discount the mills offer to the LME nickel price.

Consumers base the scrap nickel price on the previous month’s LME cash average, which is then multiplied by a discount, Lawrence explains. “In my career, I’ve seen t hat d iscou nt a ny where f rom 75 percent to 105 percent.” In mid-May, the specialty producers were basing t heir prices on a discount of 80 percent—they’re paying 80 percent of the previous month’s LME nickel cash average for the nickel Value in the scrap, he says. In mid-June, however, “there seems to be a disparity among the producers” in their discounts “in relation to how much scrap they need to buy. As demand increases, that discount becomes more and more critical as a primary mechanism in their pricing.”

That said, demand for stainless scrap still remains sluggish at best, Lawrence says. “While there is a slow increase in demand, it still is not enough to overcome the current supply. However, going forward, as that demand does increase, the supply side of scrap nickel and chrome units is becoming more and more scarce, and that is going to drive the price in a very serious way. Scrap is still the raw material of choice for the melt shops, so competition will continue to drive the prices both on the buy side and the sales side.”

Moll warns that “there could be trouble ahead.” North America is a “very competitive stainless steel market, with the newcomer ramping up, and on the other side … [you have] potentially increasing scrap prices, so that

means that [processors’] margins, again, [are] becoming smaller,” he says.

What about China?

Another key question for the U.S. market is the extent of China’s need for stainless scrap later this year, as it faces a changing supply situation. China’s growing dominance in the production of stainless steel has been unquestionable over the last few years. Global stainless steel production

SPRINGS / Fall 2014 / 35

Global stainless steel production hit record levels in 2012 entirely due to growth in China’s production, according to the International Stainless Steel Forum (Brussels), while the rest of the world’s production fell as a result of destocking. In 2013, China’s stainless steel production grew another 18 percent over 2012, to 19 million mt. hit record levels in 2012 entirely due to growth in China’s production, according to the International Stainless Steel Forum (Brussels), while the rest of the world’s production fell as a result of destocking. In 2013, China’s stainless steel production grew another 18 percent over 2012, to 19 million mt.

To produce more than half of the world’s stainless steel, China imports little scrap, however, instead sourcing its nickel units from lower-cost nickel pig iron, according to a report Hunter presented at the fall 2013 conference of the Bureau of International Recycling in Brussels. This feedstock was put in jeopardy earlier this year, however,

when Indonesia—a main exporter of nickel ore to China for the production of NPI—announced a ban on ore exports that took effect mid-January. The LME nickel market, recognizing the reality and potential consequence of the ban on Chinese stainless production, felt the impact of the ban, Hunter said. At the time the ban took effect, the LME three month nickel buying contract was hovering around $14,000 a mt, Hunter says.

Five months later, the May three-month average closing price was $19,450. Gledhill notes that the nickel price also has been buoyed by geopolitical uncertainty in Russia, the source of 20 percent of the world’s primary nickel.

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“The market is a bit in turmoil because nobody knows the impact of the ore export ban from Indonesia,” Moll says.

“So in anticipation of a problem in the Chinese nickel market in the second half of this year, nickel prices have already significantly gone up.” The key question going forward, he adds, is what alternatives China has to nickel pig iron because he expects supply of NPI to fall short of demand this year. “Speculations are that we have probably between 150,000 [and] 250,000 tons less than last year [of] NPI production,” he says, and those nickel units “have to come from somewhere.” China’s first strategy might be to import more class-two nickel, which is mainly ferronickel, Moll says. After that, “the next step could be to start importing scrap, after five years being absent [from] the scrap market.”

What will this mean for the U.S.? “Scrap consumption in the U.S. this year will be higher than it has been in the last 15 years,” Moll predicts. “The U.S. will use all its scrap, and all its scrap at the end of the day is always sold out.” The remaining question, he says, is: “How much is then available for export to Asia?” The answer to that might depend on what Asia is willing to pay. Given the limited supply of scrap, Lawrence says, when a country like China suddenly needs material and is perhaps offering a higher price than domestic mills, it’s going to make the market even more competitive. “There’s not enough scrap to go around, so … I wouldn’t be a bit surprised to see the market take a real uptick, just on the basis of supply and demand,” he says.

As of late April, the ban had yet to result in an increase in U.S. stainless steel scrap exports to China, with the country rumored to have inventories of Indonesian ore that would last them into the summer, Santoro says.

Still, Moll expects the Chinese to try to import stainless scrap sometime this year. “If this is the case, then we have a completely changed situation in the scrap market, especially in the U.S., where we already have a very tight market,” he adds.

Ultimately, Moll says, when the mills’ discounts in scrap normalize again at about 10 percent below the LME, various sources will begin to release material, resulting in higher scrap recycling ratios and an easing off of the current situation. Gledhill also expects the market to achieve greater balance once the arbitrage opportunity evaporates, as his firm and its competitors bring in more scrap from Europe, but he says issues around sourcing material will likely persist. “Then the question becomes, how do you continue to find enough scrap to supply the demand? And that’s the big challenge.” n Helen Burnett-Nichols is a writer based in Hamilton, Ontario. Article reprinted with permission from the July/August 2014 issue of Scrap magazine, Institute of Scrap Recycling Industries, Washington, D.C. All rights reserved.

SPRINGS / Fall 2014 / 37

©iStockphoto.com/bikerboy82

38 / SPRINGS / Fall 2014

©iStockphoto.com/bikerboy82

Flashback

Customizing Stainless Strip for Specialty Spring Needs (Editor’s note: This article was originally published in the October 1971 issue of Springs.)

By Seth R. Thomas

I

ncreased use of stainless steel strip for exacting spring applications has brought new sophistication into customized mill processing.

"Critical balance" demands that the strip provide: formability (primarily duct ilit y, but a lso weldabilit y); precise dimensional uniformity; correct temper for the part to function properly; and environmental stability to w it h st a nd t he i n f luences of corrosion, oxidation, and fatigue.

Basic categories of spring material now in customized strip production include: 1. Non heat-treatable grades "as cold-rolled" tempers, 2. Non heat-treatable grades in "cold-rolled” and pre-stressrelieved condition, 3. Heat treatable grades in the heat treated and tempered condition.

way from “Full Hard” (185,000 psi minimum tensile strength) to "Rodflex High Yield" with a minimum tensile strength of 290,000 psi.

Category 2 affords an increase in measured tensile and yield strengths of 15-20,000 PSI over category 1 for Extra Full Hard tempers, since this is how much residual tensile stress is normally present in the highly cold rolled state.

Additional dimensional stability is also provided within this category.

However, the pre-stress relieved strip is only produced under customer specifications or by special request.

Process flexibility, due to Teledyne Rodney Metals' capabilities in cold rolling, stress-relieving, heat treating

and tempering, allows customized production of widely differing functional properties, even for a given alloy type. Once these functional properties are assured, requirements of surface, edge and flatness must also be met.

Figure 1 presents a group of precision parts for which the strip requirements demand a "critical balance," as follows: A. Z-shaped spring for automatic transmissions B. Constant force coil spring C. Flipper spring for electrical switch D. Camera shutter part E. Welded diaphragm bellows

Figure 1

Category 1 includes most standard a nd spe c i a lt y g r ade s nor m a l ly produced for spring applications.

All ranges of intermediate and full hard tempers are available, where the critical balance with formability must be achieved. One grade, A.I.S.I. T301 stainless, is additionally produced to “Extra Full Hard” tempers all the

SPRINGS / Fall 2014 / 39

Figure 2 Final inspection of .003" precision foil held to ±.0001" takes place at slow speed through air gage. Result is both observed visually and recorded graphically.

In many of these applications, the strip temper is closely controlled to provide highest possible mechanical properties consistent with sufficient ductility to permit the shape to be fabricated.

Thick ness unifor mity is a necessa r y c o mple m e nt t o c lo s e t e mp e r c ont r ol .

Since most springs’ function is based on mechanical properties and mass, it follows that the thickness must also be controlled with precision. Standard thickness tolerances at Teledyne Rodney Metals are ±5 percent over a gauge range of .001" to .031", while levels as close as ±2 percent can be achieved.

Computerized gauge controls on Sendzimir rolling mills provide the tighter control of thickness tolerances.

I n addit ion, cr it ica l st r ip receives a completely separate thickness and surface inspection as shown in Figure 2. On this equipment the finished strip moves at a much slower speed than on the rolling mills, at a rate dictated by the gauge design to yield a precise chart recording of thickness. This chart is then compared with the prior rolling mill chart for accurate correlation.

Separate calibration standards are provided to the mills and the inspection areas. All standards have previously been calibrated in the quality control laboratory to an accuracy of ±0.00005 inches.

Two other categories of stainless steels are also produced as precision products for spring applications.

These are (1) heat-treatable and precipitation-hardenable grades produced in the annealed condition, where forming requirements are severe, and (2) grades produced with maximum spring qualities in the strip where the "critical balance" with ductility is not required since little or no subsequent forming is done. n At the time the article was written, Seth R. Thomas was the manager of metallurgy and quality control, Teledyne Rodney Metals, New Bedford, Mass.

40 / SPRINGS / Fall 2014

SPRINGS / Fall 2014 / 41

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15 Tips from Ronald Reagan for Communicating with Impact

By Dan Quiggle

I

n studying the highest levels of leadership, impact, and influence, s eve r a l c om mon a s p e c t s of effective communication become clear. The 10th anniversary of Ronald Reagan’s passing was June 5, 2014, but even 10 years later and 25 years after his presidency, he is still known as the “Great Communicator.” He masterfully demonstrated effective com mu n icat ion t h roug hout h is presidency, a perfect and historical example being his speech at the

Brandenburg Gate, when he implored G orb ac hev to “te a r dow n t h i s wall!” You can become a “Great Communicator” by carefully planning and creating your own messaging.

Powerful communication skills are critical to positively affect the overall direction and impact of your vision and its fulfillment. Time and time again, Ronald Reagan not only spoke words with resonant meaning and impact but prompted action from the American people and the world.

Whether it’s a keynote speech or a casual conversation with a family member, t he t r ue mea n i ng a nd

value of effective communication can be realized through focusing on the listener and tailoring your message accordingly, rather than prioritizing the words you want to say or the points you want to make. If you want to really improve t he way you com mu n icate a nd the impact your messages have on others, regularly evaluate what you say, how you say it, and how your words are being heard by others. If you truly want to communicate like the ‘Great Communicator,’ you need to challenge yourself to embrace communication excellence.

Here are 15 essential ways you can increase your communication success:

SPRINGS / Fall 2014 / 43 Images in this article: ©iStockphoto.com/BernardaSv

Realize the significance, power, and the importance of clear, concise communication and the effect it can have on others and on the fulfillment—or the failure—of your vision.

1. Significance.

4. Sell it.

2. Substance.

5. Say it.

3. Sincerity.

6. Say it again and again.

Realize the significance, power, and the importance of clear, concise communication and the effect it can have on others and on the fulfillment—or the failure—of your vision.

Have substance—something meaningful and important to say.

There are many leaders today who talk more and more and yet say less and less. Know what you want to say before you start talking. Plan your communication with great intention.

Communicate with honesty and authenticity—with sincerity. The more sincere your message is, the more impact it will have on others. As such, you need to choose your vision carefully and make sure it is one that you wholeheartedly embrace and can communicate genuinely.

Even though you may be articulating your vision over and over again, it will be more meaningful and memorable if the message is customized for those hearing it— specialize. You should talk to people, not over their heads or beneath them. Talk to them, specifically.

44 / SPRINGS / Fall 2014

Believe in your vision and in your message. You need to have more enthusiasm for your vision than you expect others to have. Your passion and energy, or lack thereof, will be evident to your listeners.

Tell your listeners what you are going to tell them, then tell it to them, then tell them what you told them. Make sure they leave knowing exactly what you want them to know and remember.

Constantly refer to your vision. Have a consistency in your message every time you communicate. Make it clear to others what you stand for, what you believe in, and what your vision is. Repeat it. Retell it. Restate it. Repeat it.

7. Symbolize it.

Personify your vision and symbolize it. When you think of Ronald Reagan, you think of freedom. Make sure those around you know exactly what your vision is—and then personify it with consistency.

8. Stance.

Be aware of your stance: 55 percent of face-to-face communication comes from body language, 38 percent comes from tone of voice, and only seven percent of communication actually comes from the words used. Your nonverbal cues speak much more loudly than your words, so learn to control and manage your body language and facial expressions, making sure they match your spoken message.

9. Specialize.

Even though you may be articulating your vision over and over again, it will be more meaningful and memorable if the message is customized for those hearing it—specialize.

You should talk to people, not over their heads or beneath them. Talk to them, specifically.

10. Study.

Be prepared, study, be informed and well read, and have compelling arguments supporting your vision with conviction. You should know more about your subject matter, your industry, your plan, and your vision than anyone else. Research related topics and fields so that you have an expansive base of knowledge. Gather relevant facts and information and develop creative ways to share them.

11. Style.

There are many effective methods of speaking, so find your unique style. Infuse your personality, your background, and your vocabulary into a personal cadence and rhythm of speaking that uniquely suits you. Practice articulating your vision. Ask for candid feedback and continue to hone your most effective style.

12. Simplify.

Use small, short words that everyone can understand and remember. A simple message clearly articulated is much more effective than one that seeks to impress others with your knowledge but is not able to transfer any of that knowledge to others.

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Combine your content with original stories and personal examples that are meaningful to you and relevant to your vision. Stories can create far greater impact than just a conveyance of facts, ideas, or opinions. Chosen carefully, stories can affect others in powerful ways.

13. Solicit.

Invite commitment and support. When you communicate, it should be clear what is being asked. Articulate your vision and outline the role you want others to play in fulfilling it. Do not assume they know what you are asking of them. You have to tell them—and then persuasively invite their support and their best efforts.

14. Stories.

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vision. Stories can create far greater impact than just a conveyance of facts, ideas, or opinions. Chosen carefully, stories can affect others in powerful ways.

15. Smile.

Nothing is more effective in engaging others than a genuine smile when appropriate. It brings a transparency to your message and conveys a warmth and kindness that has the potential to disarm even the harshest critic. Open the lines of communication by smiling—it is contagious!

Although there is no magic formula for becoming the Great Communicator, in your own way you can formulate, articulate, and communicate your vision with greater success, effectiveness, and confidence. As we see from Reagan, making memorable remarks is one thing, but those who are able to spur others to action, invite active participation, or cause a positive change in thinking or behavior truly understand the value and importance of communication. Words without action are without impact.

Whether you are communicating a vision to your company or speaking to your family, my challenge to you is to incorporate the example of Ronald Reagan to achieve greater impact. Choose your words carefully to not only inspire action, but to create a positive environment in which you can change your world and the world of those around you. n Dan Quiggle, author of “Lead Like Reagan: Strategies to Motivate, Communicate, and Inspire,” is the founder of The Quiggle Group, president and CEO of America’s Choice Title Company, and dean of faculty for the Leadership Institute in Washington, D.C. He began his professional career in the office of Ronald Reagan and learned leadership directly from the “Great Communicator” himself. Quiggle has been recognized as a top speaker nationally for Vistage and YPO and is a highly sought-after keynote speaker on leadership for America’s top associations and corporations. His new book on Reagan was published by Wiley in June 2014 and is available at bookstores nationwide, from major online booksellers, and direct from the publisher by calling 800-225-5945. In Canada, call 800-567-4797. For more information, visit www.wiley.com.

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New Rules to Impact the Lease/Buy Decision

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W

hether to buy or lease is a question facing many within the spring industry even as credit becomes more readily available.

While there is no one correct answer that fits every situation, nor every spring manufacturer or supplier, compared to the simplicity of buying, leasing is far more complicated and may be getting more complex.

The lease accounting rules as we currently know them may be changing as a result of ongoing negotiations between the International Accounting Standards Board (IASB) which sets rules for many countries around the globe, and by the U.S. Financial Accounting Standards Board (FASB) which writes the rules in the United States.

The proposals would require many businesses to add all but the shortest leases to their balance sheets as liabilities, much like debt.

ŠiStockphoto.com/kchungtw

SPRINGS / Fall 2014 / 49

Why Lease?

Equipment leasing is similar to a loan in which the lender buys and owns equipment and then “rents” it to a spring manufacturer or business at a flat monthly rate for a specified number of months. Although lease financing is generally more expensive than bank financing, in most instances it is more easily obtained.

Among the reasons given by small business owners for leasing are the ability to have the latest equipment, consistent expenses for budgeting purposes, help in managing company growth and no down payment.

Leasing offers real advantages, including reduced cash outflows and greater control. But that’s not all. A short list of leasing advantages includes: • Conventional bank loans usually require more money upfront than leasing.

• Leasing generally requires only one or two payments upfront in lieu of the substantial down payments often required to purchase equipment.

• Unlike some financing options, leasing offers 100 percent financing. That means a spring manufacturer can acquire essential equipment and

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j n m a c h i n e r y. c o m 50 / SPRINGS / Fall 2014

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begin using it immediately to generate revenues with no money down.

Best of all, the full amount of the equipment as well as service or maintenance can be included in the lease. This spreads the cost over the term of the lease, freeing up cash flow for the spring manufacturer now, when needed.

Leasing provides a hedge against technology obsolescence by allowing a manufacturer to upgrade its equipment at the end of the leasing term.

At least for the time being, an operating lease is not considered long-term debt or liability and does not have to show up on the business’s financial statements. This makes the business more appealing to traditional lenders down the road or when needed.

Operating lease payments are generally treated as fully deductible business expenses. A tax professional should be consulted to determine what percentage of other types of leases can be deducted.

Buying Equipment Ownership and tax breaks make buying business equipment appealing, but high initial costs mean this option isn't for everyone. Among the advantages of buying equipment is, of course, “ownership.” The most obvious advantage of buying business equipment is that the spring’s operation “owns” it. This is especially true with property that has a long useful life and is not likely to become technologically outdated in the near future, such as office furniture or plant machinery.

Disadvantages of Buying Equipment • Higher initial expense: For some spring manufacturers, purchasing needed equipment may not be an option because the initial cash outlay is too high. Even if the business plans to borrow the money and make monthly payments, most banks require a down payment of around 20 percent.

Borrowing money may also tie up lines of credit, and lenders may place restrictions on the operation’s future financial operations to ensure the loan will be repaid.

• Obsolete Equipment: While ownership is perhaps the biggest advantage to buying equipment, it can also be a tremendous disadvantage. Purchasers of high-tech equipment run the risk the equipment may become technologically obsolete and they may be forced to reinvest in new equipment long before planned. Certain types of equipment have very little resale value. A computer system that costs $5,000 today, for instance, may be worth only $1,000 or less three years from now.

Tax Strategies In the eyes of the IRS, whether a leasing transaction is treated as a “lease” or treated as a “purchase,” determines who will be entitled to deductions for expenses, such as depreciation, rent and interest expenses.

Generally, when it comes to determining who owns the property for tax purposes and thus, who is entitled to the depreciation deductions, the IRS looks to the “economic substance” of the transaction -– how it is structured and works — not how the parties involved characterize it.

Lease or rental payments are, of course, usually fully deductible. With a purchase, Section 179 of the Internal Revenue Code allows the spring manufacturer to fully deduct the cost of some newly purchased assets in the first year. In 2014 the operation can deduct up to $25,000 of equipment (subject to a phase-out if more than $2,000,000 of equipment is placed in service in any one year). Although not all equipment purchases are eligible for Section 179 treatment, the operation can still receive tax savings for almost any business equipment through depreciation deductions.

Fortunately, there are no time limits on leasing. That means leasing can be effective where a springs operation has already purchased equipment. These transactions, known as sale-leasebacks, are usually available for equipment purchased within the past 90 days. Sale-leasebacks may also be used to legitimately shift the tax benefits from the spring’s operation to its new owner or owners.

Equipment or property that is already on the operation’s books can be sold to the owner/shareholder — or to key employees — and leased back to the business. Because these self-rental transactions involve shifting tax benefits from the business to its owners/shareholders, they should be “arm’s length” transactions and the parties aware of possible IRS scrutiny.

a se T h e le u les r nt i n g a c co u t ly c u r r e n be e w s a y em m a h t w o kn ing. ch a ng

As proposed, the new rules would represent a major change in how most businesses account for the cost of leases by requiring vastly larger amounts of assets and liabilities to be reported on an operation’s books.

This so-called “off-balancesheet financing” can make a business look less indebted than it really is.

Changes in the Wind As proposed, the new rules would represent a major change in how most businesses account for the cost of leases by requiring vastly larger amounts of assets and liabilities to be reported on an operation’s books. Under current rules, manufacturers are generally able to classify many leases as “operating leases” and keep them off their balance sheets.

This so-called “off-balance-sheet financing” can make a business look less indebted than it really is. The proposed lease accounting rules would, however, require many businesses to add to their balance sheets all but the shortest leases, as liabilities akin to debt.

The proposal would also set up a two-track system for how lease costs should be reflected in the operations' earnings. Costs of real estate leases would be recognized

SPRINGS / Fall 2014 / 51

evenly over the term of the lease, while costs of other leases would be more front-loaded and would decline over the lease term.

Should these accounting standards be adopted as proposed, it is the banks and other lending institutions that would be impacted first and hardest. With lenders forced to increase their capital and new restrictions on the sources of funds those institutions rely on, leasing might face a tighter market and become far more expensive.

In all likelihood, there will be a considerable delay in making the new rules effective, probably until 2017.

This would give spring manufacturers and suppliers time to comply and, in some cases, to renegotiate loan agreements. The many businesses that currently have borrowing limits and/or restrictions placed on them by lenders and investors could, once leases must be included on the spring manufacturing operation’s balance sheet, be in violation of those agreements.

Analyze This Every spring manufacturer and supplier can analyze the costs of leasing versus purchase with a so-called discounted cash flow analysis, comparing the cost of each alternative by considering: the timing of the payments, tax benefits, interest rates on a loan, the lease rate, and other financial arrangements. Unfortunately, while this sort of

Ready, to Roll,

analysis is useful, the lease/buy decision can’t be made solely on cost analysis figures.

Generally, spring manufacturers with a strong cash position and good financing options can often buy needed equipment outright, or they can borrow to acquire equipment with a long operating life. If obsolescence is a concern, a short-term operating lease often provides the biggest advantage and the most flexibility.

If cash flow is an issue and the equipment must remain operable for longer periods, a long-term capital lease with a final residual payment will result in lower monthly payments plus a purchase option. However, short-term savings may result in higher costs over the entire leasing period. This is especially true with a finance lease where the user can purchase the equipment at the end of the lease. The spring manufacturer may end up paying more over the long term. Obviously, it pays to determine any end of lease costs beforehand.

Furthermore, although taxes play a role in whether to lease or to purchase, they should not be the deciding factor either. Since a startling eight out of 10 businesses lease some equipment, would your precision spring operation or business reap the long-term benefits of a lease? n

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52 / SPRINGS / Fall 2014

Thank You and Goodbye

SMI Salutes Jim Wood on his Retirement

By Gary McCoy

It has been an incredible run by Jim Wood

, SMI’s regulatory compliance consultant. After conducting nearly 650 safety audits of spring manufacturing plants over a 21-year period, he announced his retirement earlier this year.

“The memories that stand out to me are just meeting a whole lot of fine people,” said Wood as he reflected back on his time working for SMI. “Springmakers are the greatest group of manufacturers in North America. I have belonged to other associations, but nothing compares to the camaraderie and the pure pleasure of being with people that treat each other with respect. And they treat the staff with respect.”

He paused and completed his thought by saying, “It’s just a pleasure to be around SMI people.”

SPRINGS / Fall 2014 / 53

™

ISO 9001 REGISTERED

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Changes In his travels across the country to conduct safety audits and training classes, Wood has observed a lot of changes in the spring industry--all of it for good.

Of t he cha nges, Wood said he would first tell springmakers, “a job well done.” He said the industry is a lot safer now than was when he first started with SMI. Because he has visited so many SMI manufacturing plants, Wood cites the introduction of CNC machines and automation as some of the monumental accomplishments he’s observed over the past two decades.

“Many people in this industry build their own equipment and their own automation,” explained Wood of the resourcefulness he’s seen among SMI members.

“American ingenuity is unbelievable.”

At the same time, Wood says, “I just wish the government would leave us alone and turn the American people loose. If they did, I don’t think you would have to worry about the viability of this country.”

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Wh ile Wood made t hose com ment s about t he government, he admitted the irony of being the one who was tasked with helping SMI members comply with burdensome regulations.

“I’ve been there to help SMI members with compliance,” he explained, “but also to protect them from the overreach of government, which I think OSHA and EPA have done.”

To be fair, Wood is not down on OSHA. He points out that OSHA has helped lower the rate of accidents since it came into being in 1970.

Wood just feels that OSHA is organized the wrong way.

He believes they should be more consultative than punitive.

“I think they should come to your plant, do an audit and then help you get into compliance,” he said. “Don’t come out like a policeman, and throw all these things at people.”

Wood says m a ny m a nu f ac t u r er s a r e ju st not knowledgeable about the OSHA standards. “Many don’t even realize they are breaking standards.”

Providing a Wake-Up Call During those hundreds of plant audits, before he got started Wood always sat down with the management team for an opening conference to get their assessment of the plant’s safety. Frequently he was told: “I think we have a very clean, nice well-run plant.”

Wood says that by most standards, SMI members do run those types of operations.

“However, I would go out into the plant and come back with a list of 60 to 80 violations that I had found.”

Wood says he never enjoyed the job of “shocking” people.

Jim Wood Tributes Upon Wood’s retirement, we asked SMI members to share their memories and thoughts.

Here are some of those we received.

“I first met Jim in Pittsburgh right around 1994. I was sent there of course for the Compliance Training class for J&J Spring. I sat in the meetings with many other people from our industry and let’s just say I was very well prepared for my return to my company with great instructions from Jim. I had the pleasure of meeting Jim in other locations over the years as I have worked for other spring companies.

Most of all, Jim is a very nice man who had the time to make sure we got what we needed. Thanks again, Jim, and have a great retirement.”

“We were feeling pretty smug when we asked Jim to conduct a safety audit. ‘Look at our safety record! Our clean floors!’ He arrived, donned his lab coat and safety glasses, and eight hours later he had compiled a multipage list of issues, large and small.

It was eye-opening, and we had a clear roadmap of what we needed to change. Jim’s thoroughness and professionalism made us a better and safer company.”

Jack Sims General Manager/VP Operations, J&J Spring Enterprises, LLC

“Jim has such an aura of goodwill and joy of life that every single time I ever talked to him — whether we were at a PAC plant for a safety inspection follow-up or at an SMI convention cocktail hour — he made me happy.

It didn't matter what we were talking about, I just felt good being around him. I hope Jim has many happy, healthy years ahead of him, enjoying life and helping people around him feel good, too.”

“Jim’s visits to our plants were always friendly and warm, because that’s his fundamental nature, but they were always incredibly helpful and informative, assisting our division presidents in running safe and compliant operations. Most importantly, Jim was a trusted resource, given free reign when he was in each of our plants — we never had to worry if our ‘secrets’ were at risk, because we knew he would never speak to others about what he saw.

We will miss Jim, and the valuable service he provided to SMI and its members. But everyone at SEI MetalTek wishes him the very best in his retirement!”

R. Hale Foote President, Scandic Springs, Inc.

Pete Petersen Chairman, Petersen Spring Former SMI President

Hap Porter President and COO, SEI MetalTek President, Spring Manufacturers Institute SPRINGS / Fall 2014 / 55

Because he has visited so many SMI manufacturing plants, Wood cites the introduction of CNC machines and automation as some of the monumental accomplishments he’s observed over the past two decades.

“Many people in this industry build their own equipment and their own automation,” explained Wood of the resourcefulness he’s seen among SMI members.

“American ingenuity is unbelievable.”

56 / SPRINGS / Fall 2014

“I don’t like breaking people’s bubbles, but the fact is most people don’t know what the OSHA standards are,” he explained. “They can go months and months without a lost time accident, so they think they’ve got a very safe, compliant plant. But I walk in and show them my list of violations.”

While he didn’t enjoy that part, Wood says most SMI members realized he was doing his job and was only there to help.

Going to Bat for SMI Members Wood has always made himself available to SMI members by phone, especially to those who were nervous because an OSHA inspector had just come to their plant and slapped them with a list of fines.

He particularly remembers one call he got from a frantic member that ended up being one of his greatest success stories.

“I won’t name the company, but I had a gentleman call me and he was upset,” Wood recollected. “OSHA had come out and cited his company for a willful violation and few other little violations that came to a penalty of $92,000.”

Wood says this was a small springmaker who did not have the means to pay the hefty fine.

“I went to the OSHA area director and pleaded his case,” said Wood, “and I got it taken from a willful violation down to a serious one, and from $92,000 to $18,000.”

In another incident, an OSHA inspector walked into a fourslide company and stated that “it was the most dangerous machine they had ever seen.” The inspector promised to come back the next week with the area director and an engineer to decide how they were going to guard a fourslide machine.

The owner of the company called Wood and asked if he would be there when OSHA came back.

“I took the OSHA inspector, the area director and the engineer out into the plant and showed them the fourslide machine and explained how it works.”

Everyone returned to the company conference room, and the OSHA officials started trying to figure out ways to guard it.

Tributes ‘He was always professional and always a gentleman. He will be missed but never forgotten.

Hugs and love Jim!” Linda Froehlich Owner, Ace Wire Spring & Form Co., Inc.

“I have so many fond memories of working with Jim Wood over the past number of years that it would not be possible to capture them all. Anyone who worked with Jim will know that he has been one of the most warmhearted, kind men I have ever had a chance to work with. Jim always has a smile on his face and is always genuinely concerned about others; it is that genuine care for others that has helped define the great legacy that Jim has left with all of us in the SMI. I believe it is that same genuine care for others that led him to excellence in all that he did in the safety arena, his interest in helping all of our member companies really boiled down to his genuine care for others at the core and an amazing passion for helping people to work safely in their work environments.

The SMI and our entire North American spring industry, owe a huge debt of gratitude to Jim Wood for all that he has done for us corporately as well as personally.

Jim, you are an amazing person who has made a lasting positive impression on my life personally and the SMI as a whole, forever. Thank you for the memories!”

Steve Moreland President, Automatic Spring Products Former SMI President

“Over the years Jim and I have become occasional friends. Among the things we have come to learn from each other are the items below: • Brandy Manhattan - He loves enjoying one or two with friends, at any occasion.

• His Wife – He always adores her.

• His Children – He is so proud of them.

• Floramo's Restaurant in Chelsea, Mass. - He always orders the same thing every time, Steak Diane with a brandy Manhattan.

• The Golf Course - He loved the golf course he once owned and still loves to golf. He schedules onsite inspections around it sometimes. For example, when the NESMA golf outing takes place he tries to do all the Connecticut companies at that time.

• Hunting – He frequently talks about his hunting days.

“Jim was a lifesaver at Stanley Spring & Stamping on multiple occasions.

Over the past 20 years he helped train our workforce, and conducted five or six complete safety audits and OSHA inspections for us. But the true highlight for me was winning the SMI golf tournament with Jim on our team almost 10 years ago now.

Best wishes in retirement, Jim, and hit ‘em straight.”

Reb Banas President, Stanley Spring & Stamping Corporation Former SMI President

Ted White President, Hardware Products

SPRINGS / Fall 2014 / 57

Wood is looking forward to spending time with his wife, Colleen. They have been married for 60 years, and Wood says Colleen has been very patient these past 20-plus years.

"I kept telling them that you don't have to guard a fourslide because there is a court precedent from the state of Michigan where the judge ruled in favor of the springmaking company, " he explained. "The judge said you don't have to guard fourslides because the point of operation is remote and the machine is automatic."

Wood said that after hours of arguing back and forth, the OSHA officials left the plant and said they would get back to them.

“By golly, a couple months later we got a letter from the area director dropping all of the citations for guarding fourslides,” said Wood.

Wood recalls one more story that occurred when he received a call from the president of a very large spring company asking him to audit his facility. When he arrived, Wood couldn't believe the size of the plant.

“It took me two long days to complete the audit. I submitted a written report to the president listing well over 150 OSHA violations,” explained Wood. “To his credit he immediately hired two maintenance men and charged them with the task of correcting every violation in the report, which took them the best part of a year. A couple of months after they completed, OSHA paid the company a visit for a routine safety and health inspection.”

The two inspectors spent two days in the facility, said Wood. After completing the inspection they complimented the president for a “violation-free facility.”

58 / SPRINGS / Fall 2014

Wood explained what happened next. “The local OSHA area director contacted the president and asked if OSHA could use the facility as an example for other manufacturers.

The president declined the request, as he did not want to set a guarding precedent for other springmakers.”

The Future Ahead While Wood will miss working with SMI members, he’s looking forward to spending time with his wife, Colleen. They have been married for 60 years, and Wood says Colleen has been very patient these past 20-plus years.

“I’ve done a lot of traveling away from home, so we’re going to spend time together and with the rest of the family,” said Wood.

While he has no plans of owning a golf course again, Wood is looking forward to spend more time at the golf course now.

“There is no way to adequately thank Jim for his dedicated service to SMI, because he has meant so much to our members,” said Lynne Carr, SMI’s executive director.

“We sincerely wish Jim and Colleen many happy and healthy years ahead.”

Goodbye and farewell to Jim Wood. Thanks for enriching all of our lives. n

Tributes “Twenty two years of service. That really makes me feel old! I was on the Safety committee when we decided to hire Jim Wood to help us with all issues regarding OSHA. Soon after his arrival I was voted in as chairman of the committee and we changed it to the Regulatory Compliance committee. This was to help the various spring companies learn and deal with the areas of OSHA, as well as other areas to stay in compliance with the ever changing needs of government regulations.

We had some interesting meetings and came up with ideas like the Pyramid of Safety.

This was not a popular committee.

Many meeting involved me and Jim. People would come and then go fast.

It was not the most fun because we challenged each member company to work toward a safer environment. And that was a tough idea to promote.

Jim became a friend and a confidant as we discussed various ways to make this seem easy for any company. Jim would show up at your place and do the training for you. He would do an audit and then you could decide what to do next. He would work with your team to make changes. He would give advice on the phone and travel to your business to make it easy. But the bottom line was it was a fight for every meeting.

The companies that used Jim were way ahead of the others because Jim was so easy to work with and he always left you with a bunch of information to use. So it was up to you. Jim helped companies move toward SHARP certification and some actually got it. This was not an easy task for either Jim or the company.

So now Jim is going to try to retire, again! He still has the heart for the group as well as the passion for OSHA regulations and I hope he can enjoy some time just for himself. This information will never leave Jim and I want to say I have enjoyed every minute working with him. Every minute! He is a man of unparalleled integrity and he even keeps a sense of humor when he talks about everything OHSA. Thanks Jim for keeping us on track for 22 years. Just have some fun, but always ‘Be Aware.’”

Scott Rankin President, Vulcan Spring & Mfg. Co. Former SMI President

When Jim and his wife decided to move to Littleton, Colo. near Denver to be near their daughter, we formed another bond, since a family friend was also living in Littleton. We traded stories on the art scene in his new town, the food and wine at Delizio’s on Main Street, and the incredible state parks just a short drive away.

It was obvious that Jim loved the move to the mountains and beautiful city, and I must admit that I envied him. I’m glad that he’ll now spend more time there, and I can promise that I will look him up every time I’m nearby.

Best Wishes, Jim!” Jim Tomei and ALL your friends at Suzuki Garphyttan Vice President, Operations

“I first met Jim through our association with SMI. Attending his talks and listening to him during evening discussions, I came to realize how much knowledge he had on OSHA, safety, and the springmaking industry. When Jim started his on-site safety training programs, we immediately signed up. Everyone enjoyed his training programs, which were fast paced but thorough.

SPRINGS / Fall 2014 / 59

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2014 SpringWorld Show Preview October 8-10, 2014

©iStockphoto.com/matdesign24

SPRINGS / Fall 2014 / 61

SpringWorld Show Preview

A&D Trading Booth #1521

Admiral Steel Booth# 1124 Since 1949, Admiral Steel has been committed to providing quality strip and alloy spring steel products, dependable service and superior value. We stock over 1,300 different products and have the equipment to customize any order. Whether it's 10 lbs or 10,000, we look forward to serving your needs. Admiral Steel is committed to total customer satisfaction.

Bond for carbon wire, Anchor Advantage is formulated with heat sensitive bonds for your toughest stainless job and plated CBN is available for your small diameter wires.

Bennett Mahler/NIMSCO Booth 905 Bennett Mahler will exhibit the AG-800 water cooled single end spring grinding machine, the new standard in single end wet grinding. The AG-800 has many new innovations, including a dry spindle chamber, quick tool change over and highly intuitive software. Also on display will be an MC-8 servo driven spring coiling lathe and 8" SG1-200 crush/crash grinder.

Elgiloy Specialty Metals Booth #1132

Alloy Wire International Booth #1021 Manufacturing spring wire and shaped wire from .001" to .827", Alloy Wire is the springmakers’ manufacturer. From over 50 alloys: Inconel, Hastelloy, Monel, Phynox, we manufacture to your specification, provide technical support and deliver in just 2 weeks. With approvals including AS 9100, ISO 9001 and DFARS compliance, quality is a guarantee.

Anchor Abrasives Booth #1027 At Anchor Abrasives Company we design and manufacture resin, epoxy and oxychloride bond nut inserted discs for your springs. Anchor’s 8A Oxycloride

62 / SPRINGS / Fall 2014

Elgiloy Specialty Metals stocks over 50 different exotic alloys available in precision drawn wire, center less ground bar, cold rolled strip and foil. Utilizing two manufacturing sites Elgiloy draws wire and rolls strip in alloys such as Elgiloy®, Alloy 600, HastelloyTM, InconelTM, MonelTM, MP-35NTM, Nimonic, NiSpan, Nitronic, Rene 41, Waspalloy and numerous grades of titanium.

forming machines, SAS spring testers and vision systems, TBE automated wire forming machines, OMAS 3D wire forming and ring machines, Whitelegg 2D ring and wire forming machines, OMD spring grinders, and Jaykase programmable tabletop benders.

Fortuna Federn/Alex Industries Booth #1513 Our COM CNC servo controlled spring coilers have received some major updates in the software and in the mechanical design. Our custom developed IPC control system with our newest SpringDesigner software gives a lot of professional possibilities in the spring production. Visit us on our booth #1513 during the SPRINGWORLD show and explore our possibilities.

Gibbs Metals Booth #1114 Gibbs is a worldwide leader in the supply and processing of wire and strip.

Our network of service centers, strategically located throughout the U.S., Canada and Mexico, and our commitment to technology and innovation, enable us to provide our customers with a level of quality and service well beyond traditional expectations.

Forming Systems, Inc. Booth #512 Forming Systems, Inc. will have key personnel available in booth #512 to answer questions about HSI springmaking accessory equipment, HTC spring and wire

Gibraltar Corp.

Booth #505 Gibraltar Corp. specializes in sales and support for manufacturing equipment for the spring and wire forming

SpringWorld Show Preview

industries. We represent Simco Spring Machinery, Morita and Company, Daewon, and Pyromaitre for cost-effective spring coiling and forming machinery, as well as grinding and other special purpose spring, wire and metal forming machinery. We also offer high-quality carbide spring tooling.

Industrial Steel & Wire

HSI Booth #512 HSI will be exhibiting at this year’s SpringWorld 2014 in booth 512. HSI will have many of their products on display used for the production of springs and wire forms, which include box ovens, conveyor ovens, parts collectors, parts washers, payoff reels, spring length gages, part conveyors, vision gage systems, and electrostatic air cleaners.

Booth #926 Proud of 80 years of service to you.

With six locations throughout the United States, we inventory a wide-ranging selection of competitively priced ferrous wire, non-ferrous wire and specialty strip. We back our quality products with supply chain solutions, value-added fabrication services and unmatched dedication for your total satisfaction.

InterWire Booth #1321 InterWire is truly a One Stop Shop. Strategically located throughout the United States and Mexico, InterWire is able to maximize your ability to receive your material “Justin-Time”, while minimizing your freight cost. All InterWire’s seven locations are ISO 9001:2008 compliant, to ensure customer satisfaction through our quality management system.

Booth #929 JN Machinery will exhibit its new touchscreen panel at SpringWorld 2014.

All panel controls - except the E-Stop - have been incorporated into the new touchscreen. By default, it includes functions such as CQI-9 compatibility.

Initially provided on larger HD ovens, this panel will soon be available on all JN Ovens.

Kiswire Trading Inc. Booth #733 Kiswire Group Ltd. will assist springmakers with their spring wire needs, including piano wire, music wire, shaped wire, highcarbon spring wire and oil tempered wire. Kiswire focuses on product development through joint ventures with automobile, machinery and construction companies. Kiswire also manufactures bead wire, steel cord and hose wire, galvanized steel wire and strand and more.

Lapham-Hickey Steel

HTC Booth #512 HTC will be exhibiting at SpringWorld 2014 in booth 512. HTC manufactures spring coilers and spring formers with wire ranges up to 16mm. They are exhibiting several sizes of new spring coilers and spring formers that include the completely new 12 axes HTC-30PX spring coiler and the 3 axes SS-3410 spiral spring machine.

JN Machinery

Jaykase Booth #512 Jaykase will be represented at SpringWorld 2014 in booth 512. The Jaykase line of programmable tabletop bending machines are available in two sizes, the JK-250 has a maximum mild steel wire size of .250” and the JK-625 has a maximum mild steel wire size of .625” inches.

Booth #1032 Lapham-Hickey Steel stocks the largest selection of spring and strip steel in the country. This includes polished, tempered, and annealed spring steel. With slitters, skiving, edge conditioning, cutto-length and oscillating lines in house, we can meet your requirements. Visit our booth at SpringWorld 2014 (#1032) or call (800) 323-8443.

SPRINGS / Fall 2014 / 63

SpringWorld Show Preview

This improved coating also makes the wire more resistant to material degradation, extending shelf-life and increasing overall product quality.

North American Spring Tool

Larson Systems Inc. Booth #1121 Larson Systems Inc. manufactures a full line of spring force testing, length measurement, torsion testing, sorting and gauging equipment to meet the needs of spring manufacturers and spring end users alike. Stop by booth 1121 to see how we can help you make sure your springs are always in spec.

Link Engineering Company Booth #921 LINK ENGINEERING COMPANY has 79 years of experience in providing testing solutions to its customers, and has manufactured testers for springs of all types, as well as spring forms and resilient materials. Link continues to expand the features and functions of their line of electronic spring testers, displays and software.

MEC Booth #1105 MEC will be in booth number 1105. Please be sure to stop by and see our brand new CLS-16II extension spring machine. We will also showcase our ultra-fine wire machines along with our VM-26 forming/torsion machine. We can’t wait to see you there!

Mount Joy Wire Booth #1131 We are excited to announce AmericoatTM music wire, a new product that greatly improves roundness, consistency, and the surface of the wire itself.

64 / SPRINGS / Fall 2014

Booth #1214 North American Spring Tool Company maintains a complete carbide and tooling service to meet the needs of all spring and wire product manufacturers throughout the country and abroad. We support new springmaking technologies and look forward to developing and supplying tooling for the array of CNC machines that are becoming prevalent in the market today.

OMAS Booth #512 OMAS will be represented at SpringWorld 2014 in booth 512. OMAS manufactures ring forming and welding machines with a combined wire range of 1mm-12mm (.039”-.427”) and OD range of 15mm-2200mm. (0.590”86”). OMAS also produces a complete line of single head (feed/form) 3D wire forming machine up to 18mm (.700”).

OMD Booth #512 OMD will be represented at Spring World 2014 in booth 512.

OMD spring grinders have all the features that springmakers require, such as continuous pass grinding, down feed grinding, single and double loading plates, special ventilation systems, automatic grinding wheel compensation, automatic grinding wheel dressing and automated grinding systems.

Proto Manufacturing Booth #1421 Proto Manufacturing specializes in high precision, quality rapid-prototyping of machined parts in aluminum, steel, copper, brass, stainless steel, kovar, titanium, and most plastics. We machine precision parts for the following industries: motorsports, medical, musical Instruments, military, and industrial.

Radcliff Wire Booth #1100 Radcliff Wire is a world leader in the manufacturing of quality flat, square, round and precision custom-shaped wire, specializing in beryllium copper, brass, phosphor bronze, nickel-silver, copper, stainless steel, carbon steel, and high nickel alloy wire. Please visit our Booth 1100 at the entrance to SpringWorld 2014.

RK Trading Booth #707 RK Trading is a distributor of Herdon CNC wire formers, multi axis coilers and grinders to the spring industry for almost 20 years. RK also offers local training and service support for all of the Herdon machines they sell and stock a full range of tooling and parts. We are in booth 707.

Rolled Metal Products Booth #1231 Rolled Metal Products is a respected metal service center, with two facilities servicing North America. We stock stainless steel, nickel alloys, titanium, aluminum and other specialty metals in coil form. We also offer toll processing of various metals, including stainless steel, nickel alloys, titanium and other specialty metals.

SpringWorld Show Preview

products in stainless steels, carbon steels, nickel bases, copper bases, and aluminum. We look forward to hearing from you.

Victory Machinery Exchange TBE

SAS Testers Booth #512 SAS TESTERS will be exhibiting at SpringWorld 2014 in booth 512. SAS spring testing equipment includes compression, tension, torsion, life cycle, fatigue testers and the latest line of vision inspection equipment for both axi-symmetrical parts and for 2 and 3 D wire forms.

Booth #512 TBE (T. Butler Engineering, Ltd.) will be represented at SpringWorld 2014 in booth 512. TBE is a leader in the production of high volume, high precision wire forming and springmaking equipment. TBE has solutions for complex 3D shapes, fast change-over times, and integrating secondary operations for complete automated production of complex wire forms and assemblies.

Booth # 1020 At Victory Machinery Exchange, we treat our customers with integrity and honesty. We apply our more than 50 years experience and expertise to providing you with high quality solutions for all your machine and parts requirements. We pay attention to detail to ensure that you receive the best and most economical solution possible.

Tool King Inc. Simplex Rapid Booth #1005 Simplex Rapid will debut the much anticipated FX-15, the next in the highly innovative FX line of spring coiling machines. Simplex Rapid, with a long history of high quality construction, advanced technology and revolutionary solutions, makes the most productive and user-friendly machines on the market. Also on display will be the FX-10, MC-30 and MT-15R torsion coiling machines.

Suzuki Garphyttan Booth #1217 Suzuki Garphyttan develops and manufactures advanced spring wire from various alloys for applications where quality and performance requirements are extremely strict. Main applications are valve springs, transmission springs, piston rings, wave springs, die springs, and springs for injection systems. Site locations include Sweden, USA, China, Japan, and England.

Booth #1129 Tool King Inc. metal service center provides coil strips and profile edges in carbon steel, stainless steel and nonferrous alloys to the domestic and export markets. We are committed to quality, delivery and service. Our quality certifications cover ISO 9001:2008, JABCM025, ANAB Accredited and UKAS Management Systems.

Ulbrich Stainless Steels and Special Metals, Inc. Booth #925 Ulbrich Stainless Steels and Special Metals, Inc., is a global precision re-roller and distributor of stainless steel strip, special metals strip, foil, shaped wire, fine wire, sheet, plate, bar and PV ribbon products. We offer twelve locations in five countries including Asia, Europe, and North America, with additional sales representation worldwide.

United Wire Co., Inc. Booth #1031 United Wire Co., Inc. is a specialist in manufacturing flat, square, & shaped wire. A third generation family business located in North Haven, Conn., we offer

Vinston US Corp.

Booth #717 VINSTON US CORP. is scheduling the official U.S. rollout of its 8.0 mm spring former at Spring World 2014. This 12 axis servo driven system will help fill the void for the 8.0 mm range and will support two spinners and an X-Y slide (perpendicular to mounted slide movement).

WAFIOS Booth #1205 This year at SpringWorld, WAFIOS will be exhibiting the powerful FMU 25, the next generation of winding, coiling and bending machines. The new G6235 will represent the next generation of precision spring end-grinding machines, and the fast and efficient B3 single-head wire bender will be complimented by the PPE 2.1 pick and place robot. n

SPRINGS / Fall 2014 / 65

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©iStockphoto.com/Björn Meyer

Springmaker Spotlight

No Problems, Only Solutions: A Profile of Kerry Cannon and Cannon Spring Company

By Gary McCoy

B

eing a springmaker for over 40 years now, Kerry Cannon enjoys the constant challenge of solving new problems, whether it is designing machines or making springs. He is truly one who lives by the motto “No problems, only solutions.”

This year Cannon Spring Company, located in Oklahoma City, is celebrating 10 years in business. The company’s origins actually stretch back 40 years to 1974, when Don Nyswonger started Nyswonger Spring.

Nyswonger sold the business to Cannon in 2004, with the agreement that the name of the business would change.

“I would have left it Nyswonger forever,” said Cannon, “because of the respect I have for that man.”

Cannon was the second person hired by Nyswonger in 1974 and he never left. Cannon faithfully served as Nyswonger’s “right hand” man, running the business when Nyswonger was gone on vacation.

SPRINGS / Fall 2014 / 67

Nyswonger is retired and still lives in Oklahoma City, not far from Cannon Spring. He still owns the property where Cannon Spring is located, leasing it back to Cannon.

Traces of the old company are still there. In fact, when you walk in the doors at Cannon Spring you can still see the SMI membership plaque for Nyswonger Spring.

The Path to Making Springs Before coming to work at Nyswonger Spring, Cannon had worked a number of jobs. Essentially he would work for a while, get bored with the latest assignment and move on to the next.

Cannon was born in Clarendon, located on the Texas Panhandle sixty miles east of Amarillo. The son of schoolteachers, the Cannon family eventually moved to Tulia, Texas where his father started a dairy with his uncle.

“So I started working the dairy when I was nine,” explained Cannon of his agricultural roots.

During high school he would attend football practice and hurry home to feed the cows.

Out of his days on the farm grew a disdain for one thing.

“I hated milking cows,” said Cannon with a look of disgust. “I absolutely hated it. Even to this day.”

The family eventually moved south to operate a larger dairy in Navasota, Texas and Cannon graduated from the Navasota High School in 1969.

68 / SPRINGS / Fall 2014

His interest in and aptitude for machines started two days later when Cannon moved to Houston to take a job with Cleco Pneumatic Tools (eventually becoming part of Dresser Industries). There he learned to operate manual and automated machines and all about the tooling process.

Cannon got married at 19 and his new wife wanted to be closer to family in Joplin, Mo., so the young couple moved north. The marriage ended in divorce, and Cannon moved back to Navasota to work for Ram Forge.

At Ram Forge, a company that made weld necks and other items for the gas and oil industry, Cannon learned how to run a lathe. “I even got to machine some Inconel back then,” he explained.

It was also during this time that Cannon developed a love for racing that would eventually lead him to start a business that he still owns, Cannon RaceCraft (but more on that later).

During that time he started racing light model stock cars, and actually ran the first lap at the Texas World Speedway located between Navasota and College Station, Texas in a Plymouth Road Runner. Cannon explained that the speedway was not open yet, was only a dirt track at the time and it was around midnight when he took to the track.

“In racing the Road Runner on dirt, if you started spinning out you need to close the air vents,” chuckled Cannon. “If you didn’t, a lot of dust would fill up inside the car, which was irritating.”

The working relationship between Cannon and Nyswonger developed quickly. “Don would show me a drawing and I would make the part,” said Cannon. “Eventually I would just make the parts because I’d have to wait on him to make the drawings and I already knew what the final product was supposed to be.”

with exotic materials and promising short delivery times of two weeks or less. They specialize in short runs; and Cannon says they will even manufacture parts for someone who walks through the door.

Back in June, he had a customer walk in looking for a spring for his John Deere mower. Within 30 minutes, the customer was out the door with the spring he needed.

“It’s not a money maker for us,” explained Cannon. “We just like to help out people who come here broken down.”

Cannon Spring’s mission is to, “provide our customers with the highest quality precision springs, on-time delivery, and personalized customer service through our commitment to quality and attention to detail.”

Your source for the best in close tolerance strip and edged products.

8

He bounced around several other jobs before working on a construction crew that eventually brought him to Oklahoma City. After leaving the construction business, Cannon did millwork for Engineering for Industry in Oklahoma City before joining Nyswonger Spring.

“When I came to work at Nyswonger, I quit changing jobs,” said Cannon.

The working relationship between Cannon and Nyswonger developed quickly. “Don would show me a drawing and I would make the part,” said Cannon.

“Eventually I would just make the parts because I’d have to wait on him to make the drawings and I already knew what the final product was supposed to be.”

Of Nyswonger, Cannon said, “We collaborated, and Don always called me a quasi-partner.”

Regarding the various jobs he held during his first five years out of high school, Cannon explained, “Every time I changed jobs I learned something that has contributed toward what I do today.”

While Cannon fled far from the farm after high school, ironically he now owns a 10-acre horse ranch near Oklahoma City and owns another 40 acres south near Elmore City, Okla. that his son Michael oversees. Part of the property is used to bale hay. Cannon would eventually like to build a disc golf course and trails for his dirt bikes.

Cannon’s oldest son, Michael, was born to him and his wife Randee, along with a son named Roby. Cannon also has a daughter, Valerie, from his first marriage, and a daughter, Kimberly, from his second marriage.

Only his son Michael has worked at Cannon Spring, making springs by the time he was 12. “He eventually didn’t want to work here,” explained Cannon. “He kind of felt like I did about the dairy.”

Cannon’s wife suffers from COPD, and was told in 2001 that she only had 18 months to live. “She’s going downhill slowly,” said Cannon, “but not nearly as fast as they thought she would.”

8

strip: cold rolled high carbon/pre-tempered spring steels, coated, low carbon stainless, copper based alloys and aluminum ultra-narrow width, close-tolerance slitting edging: round, square, semi-round, deburred, custom, etc. oscillate (traverse) and ribbon wound coils ISO 9001:2008 Certified 35 years experience for product and service excellence tel. 847.537.2881 toolkinginc.com Wheeling (Chicago), Illinois 60090 USA

Specializing in Custom Springs With a current staff of 17 employees, Cannon Spring bills itself as specialists in custom springs, able to work

SPRINGS / Fall 2014 / 69

Back in June, he had a customer walk in looking for a spring for his John Deere mower. Within 30 minutes, the customer was out the door with the spring he needed.

“It’s not a money maker for us,” explained Cannon. “We just like to help out people who come here broken down.”

Cannon Spring does a majority of its work in the oil and gas industries, providing valve springs along with snap rings and retainer springs. The company also does work in the firearms, industrial equipment, aerospace, automotive and motorsports industries.

In the firearms arena, Cannon Spring has developed recoil and main springs for full-size 1911 .45 Automatic Colt Pistols.

They are currently in the process of developing replacement springs for the Tokarev and Glock handguns.

“Our goal is and has been to provide the average shooter with replacement springs that surpass the stock springs in durability and functionality,” explained Cannon. “We accomplish this by using high quality stainless steel wire and our proprietary manufacturing process to insure that spring set and distortion from normal use is minimized.”

They have also done some special projects for higher education. This includes support springs for the exterior curtain wall at the University of Texas at Dallas, coiled radioactive lead for the University of Oklahoma’s Nuclear Science Lab, and a suspension spring for an electric car built by students at the Colorado School of Mines.

Cool Employees Among the interesting employees Cannon has on staff is Bill Ridley. Ridley is helping Cannon with ISO certification (see related article on page 73), and is the inventor of the One Cool Backpack (www.onecoolbackpack.com).

Ridley originally came to Cannon Spring through the Oklahoma Manufacturers Association because he needed help coiling plastic for his invention. Cannon and his team were able to modify one of their coilers to help make a coiler tube for the backpack.

The ISO certification project has been a six year long process; Cannon hopes the company can achieve certification later this year. His niece, Mandie, works at Cannon Spring and is currently taking a course to become an ISO auditor.

“We’ve got a niche, and when we get the ISO certification then the world will know that we’re excellent,” quipped Cannon. “We know that ISO certification does not guarantee quality, it guarantees consistency.”

Cannon says quality all started with Nyswonger Spring. In fact, he says Don Nyswonger was “always a quality control guy. He was very fastidious and nothing left here unless it passed his muster.”

Other Business Interests Located less than two miles south of Cannon Spring, in a separate location, is the building that houses Cannon’s other businesses, most of which are related to his love of motorcycles and racing.

Cannon RaceCraft Inc., is a manufacturer of custom, OEM and aftermarket suspension springs. Cannon had started Cannon RaceCraft over 20 years ago in the backroom of Nyswonger. After a couple of years the business grew, and Cannon needed to hire employees, so he established the business at another building away from Nyswonger.

The business has been at its current location for 15 years.

70 / SPRINGS / Fall 2014

SPRINGS / Fall 2014 / 71

In the lobby of Cannon Spring is a restored replica of Kerry Cannon’s first motorcycle, a 1959 AllState 125cc street bike, sold by Sears.

Cannon recalls attending PRI, a trade show for the performance racing industry, about four years ago. He said the best part of the show was having the owner of Eibach Springs come by to meet him.

“He shook my hand and said ‘I know who you are,’” explained Cannon. “He knew me, a little guy from Oklahoma. I thought that was pretty cool.”

72 / SPRINGS / Fall 2014

Though he runs it as a separate business, Cannon said jobs will go back and forth between the two companies.

Cannon RaceCraft, what Cannon describes as his “hobby,” manufactures springs for most current dirt bikes and street bikes. They can also custom manufacture springs for older bikes, four-wheelers, pilochute springs, and throttle return springs to double torsion ramp springs and some automotive applications.

“Generally if we can see the spring or have the dimensions, we can make the spring,” said Cannon.

His motorcycle springs are very popular with racers, earning praise and kudos. They even receive high praise from more well-established companies.

Cannon recalls attending PRI, a trade show for the performance racing industry, about four years ago. He said the best part of the show was having the owner of Eibach Springs come by to meet him.

“He shook my hand and said ‘I know who you are,’” explained Cannon. “He knew me, a little guy from Oklahoma. I thought that was pretty cool.”

Cannon says Eibach Springs will often refer jobs to Cannon RaceCraft that they are unable to do.

Richard Wilson, formerly of House of Horsepower, joined the Cannon RaceCraft team in 2007. As part of the agreement, House of Horsepower is now a subsidiary of Cannon RaceCraft Inc.

I S

Adventures in ISO

By William Lindley Ridley, Ph.D. Candidate

O

ver the past few months, Cannon Spring Company has been undergoing a careful and strategic process to become fully ISO 9001-2008 compliant.

From the outset, Cannon Spring Company has sought full ISO-compliance to showcase (and enhance) their in-house Quality Control (QC) management procedures.

Cannon Spring Company is a small, locally-owned manufacturing firm in Oklahoma City, Oklahoma, that produces all types of hand-made wire springs.

Because of the sizes and volumes of springs typically produced at Cannon Spring Company, they routinely conduct Zero-Based Acceptance Sampling of all their parts before shipping. Plus, by maintaining strict QC procedures during each stage of production, Cannon Spring Company has virtually eliminated all incidences of internal Non-Conformance Reports (NCRs).

To accomplish such consistency, Cannon Spring Company observes a strict regimen of in-house QC procedures perfected over 40 years of trial and error. Indeed, the organic procedures developed by Cannon Spring Company provide a literal “how-to” manual in the art and science of making hand-made wire springs. Even in the 21st Century.

By definition, a spring is a mechanical device that utilizes the tensile properties of steel (or some other tensile material) to resist a force and to return to its original shape. As a simple machine, the spring is a nearly-perfect piece of

O

engineering. Likewise, the process for manufacturing springs must also be nearly-perfect (within acceptable tolerances of course). That is why the QC procedures in springmaking must be so rigorously consistent, and therefore, why the main benefit in reaching full ISOcompliance is to improve the perfection of your overall manufacturing process.

From an historical perspective, ISO is the brainchild of W. Edwards Deming, who famously said, “If you can’t describe what you are doing as a process, you don’t know what you are doing.”

Thus, the more clearly you understand your in-house QC processes ahead of time, the easier it is to reach full ISO-compliance. In fact, if you find your “ISO adventure” becoming overly burdensome, it means you did not fully understand all of your in-house QC procedures beforehand.

Case Study: An ISO-Compliant 5-Bend Flat Spring From a QC standpoint, manufacturing a multi-bend flat spring is more complex than a typical coil spring, making it a more interesting case study

for explaining how to reach full ISOcompliance. Indeed, because errors can quickly accumulate and amplify with each successive bend, the inhouse QC procedures for producing a within-tolerance 5-bend flat spring must be verifiably, and repeatedly precise.

Therefore, if you can fully demonstrate “how” you are able to consistently produce this within-tolerance part, you are basically ISO-compliant already. The rest, as they say, is just dotting the “i’s” and crossing the “t’s.”

To start an ISO-readiness project, you must first be ready to critically examine “all” of your in-house QC procedures, i.e., from the initial order to final shipping.

It’s just like Deming said: “If you can’t describe what you are doing as a process, you don’t know what you are doing. “A word of caution, this type of self-examination is like describing the step-by-step procedure for tying your own shoelaces; you will be asked to fully describe something you do almost unconsciously. The good news is, if you routinely produce high quality products following strict in-house QC standards, you are ready to become ISO-compliant.

SPRINGS / Fall 2014 / 73 ©iStockphoto.com/kchungtw

Cannon treats all his employees like family, paying the entire cost for health and dental insurance. He’s also got a soft spot for people who are down on their luck. He’s hired several ex-felons, giving them a chance to prove themselves.

“Richard brought with him 25 years of riding, racing and wrenching experience,” said Cannon. “He is an active motocrosser, woods rider and cross country competitor, and truly understands the suspension needs of various types of riders. Richard is a tremendous asset to our company.”

By combining the two companies, Wilson now has expanded the capabilities and product services he can offer to House of Horsepower customers.

“High-quality products and customer service remain high priorities at both companies,” said Cannon.

The third company, Performance Coatings, is a powder coating business that Cannon bought from one of his suppliers in 2006. Performance Coating was established in 1998 to provide quality exhaust system coatings, dry film lubrication processes and custom powder coatings.

Naturally for Cannon, Performance Coatings caters to the motor sports industry, which allows the company

Since 1935 Compression Tension Squareness Under Load Digital Squareness Lateral Load Torsion

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74 / SPRINGS / Fall 2014

Accuracy

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Reliability

to exclusively define its process to enhance horsepower, reduce friction and to help racers look and perform at their best. The company has batch ovens large enough to coat anything from brackets to frames. All the cleaning and blasting processes are completed in-house.

Toward the Future Cannon does not foresee a day anytime soon when he will retire. He still enjoys working and solving problems.

Roaming through the shop at Cannon Spring chatting with employees and checking on the status of projects, is a highlight of his day. And Cannon is just as comfortable taking the short trip down the street to see what’s happening at Cannon RaceCraft, House of Horsepower and Performance Coatings.

Cannon treats all his employees like family, paying the entire cost for health and dental insurance. He’s also got a soft spot for people who are down on their luck. He’s hired several ex-felons, giving them a chance to prove themselves.

One of his longest tenured employees is Debbie Creed.

She’s worked for Nyswonger Spring/Cannon Spring for over 30 years. As office manager, she’s in charge of ordering supplies, processing orders and generally running all the administrative aspects of Cannon Spring. Her husband, Bill, works for Cannon RaceCraft and also makes top hats on the side. There are several other “family” connections between the companies that Cannon owns.

He’s had to let people go at various times, which Cannon says makes it hard on the “family” side of things.

With a laugh, he laments the fact that he’s gone from a designer and builder of machines to an HR manager.

Cannon said that, like all companies, employees make mistakes from time to time and sometimes the mistakes cost the company money.

“I discuss the mistake with the employee to determine what went wrong,” explained Cannon. He constantly tells his employees to “bother” him before problems arise.

He says employees will often tell him, “I didn’t want to bother you.”

Cannon will often tell them, “I would rather you bother me when it’s not a problem, than when it’s a big problem.”

After 40 years of making springs, Cannon still likes coming to work each day.

Of Cannon Spring, he says, “We’re doing all right and we’re enjoying ourselves.” n

Book Corner ©iStockphoto.com/kertlis

Selling with Noble Purpose: How to Drive Revenue and Do Work That Makes You Proud

M

ost of us have probably read a number of books on how to be a better salesperson. There are many different sales methods and programs being pushed.

Type in the word “sales books” to Amazon.com and you’ll find nearly 400,000 books titles on the subject to choose from. So you may be asking: “Why review another sales book?”

“Selling with Noble Purpose” takes a different approach to sales. As the author, Lisa Earle McLeod, points out in the opening sentence of the book: “The words selling and noble are rarely seen together.”

Throughout the book she goes about the task of disproving people’s belief that money is the primary motivator for top salespeople, and that doing good by the world runs a distant second.

McLeod explains the results of a six-month long double-blind study involving the sales force for a major biotech firm. What she discovered is that the top performers all had a more pronounced “sense of purpose” than their average counterparts.

“The salespeople who sold with noble purpose— who truly wanted to make a difference to customers— consistently outsold the salespeople who were focused on sales goals and money.”

McLeod believes every company needs an NSP or Noble Sales Purpose. “I want to make this extremely clear: This is not a book about marketing,” explains McLeod in a section about how to use the book. “An NSP is not a tagline. It’s a tool that sales leaders can use at every level of their operation to grow revenue and do work that makes everyone in the organization proud.”

In Chapter 21 she provides sales managers with coaching advice for dealing with their sales reps both before and after a sales call based on your NSP.

She also tells a great story about the sign manufacturing company that she and her husba nd once owned. Though the business ultimately shut down due to a mou nta in of debt, she talks about what she and her husband learned in the process and the regret of not bringing purpose into the company from the start.

McLeod describes an “aha” moment while speaking to a local entrepreneur group. It occurred when two women stood up and shared about all the problems they had faced in opening their day spa business.

They described the moment their dream came true—it was when the men from McLeod’s company came to hang the sign for their business. “As we watched the crane lift the sign into place, we started hugging each other. It wasn’t a dream anymore. It was real!”

Although they were not able to keep the sign business open, McLeod says after she told the day spa story to the company’s workers they all began to rally around the theme of being the “guys who validate dreams.”

If you want to stimulate your thinking about your company’s approach to sales, this is a good book to help you down that path. n Book reviewed by Gary McCoy, Managing Editor

Have a favorite business book you would like to tell us about? Send your suggestions to Springs editor Gary McCoy at gmccoy@fairwaycommunications.com.

SPRINGS / Fall 2014 / 75

OUR HCA SERIES CNC COILERS CAN HANDLE IT 6-axis CNC coilers with a choice of 4 different type cutoffs that delivers what the model number says. The HCA-80 coils springs up to 8mm in OT or Chrome Silicon wire. The HCA-160 runs springs up to 16mm in OT or Chrome Silicon wire. With the quality and value you’ve come to expect from Herdon, now’s the time to do something big!

76 / SPRINGS / Fall 2014

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Inside SMI ©iStockphoto.com/seraficus

SMI Names Laura Helmrich-Rhodes New Regulatory Compliance Consultant SMI president Hap Porter has announced the appointment of Laura Hel m r ich-R hodes a s SM I’s new regulatory compliance consultant.

She will begin working with SMI on October 1, 2014. She replaces Jim Wood, who announced his retirement earlier this year (see story on page 53).

“We are excited to welcome Laura to the spring industry and SMI,” said Porter. “From her broad experience with regulatory issues and academic training in safety science, we know that she will be a great resource for our members to solidify their compliance with workplace safety regulations.”

Steve Wunder, chairman of SMI’s Regulatory Compliance committee, added, “The committee looks forward to working closely with Laura. The breadth of her knowledge as a professor and her practical experience as a consultant and inspector in the regulatory affairs arena will provide SMI members with many resources going forward.”

Helmrich-Rhodes is an associate professor in the Safety Sciences department at Indiana University of Pennsylvania (IUP) in Indiana, Pa. She has been at IUP since 1992.

IUP was the first accredited safety

undergraduate degree program in the nation and now offers masters and Ph.D. degrees. She teaches at the undergraduate and graduate levels.

Helmrich-Rhodes has taught general industry and construction OSHA standards, including the development of laboratory exercises for students, fire protection and safety program administration. She also oversees senior level interns and arranges partnerships for the internship program.

In addition to teaching, HelmrichRhodes has been active in private consulting through Rhodes & Associates, and now Safety Geeks, LLC. Training programs for all levels and abilities, OSHA 10 and 30 Hour Authorization and on-site loss control guidance have been the focus of those businesses.

P r ior to f u l l t i me teac h i ng, Helmrich-Rhodes was an engineering representative for Royal Insurance and senior loss control representative for Kemper Insurance in Philadelphia, Pa. Her OSHA experience includes three years as an inspector/consultant for the Pennsylvania OSHA Consultation Program.

She holds a B.S. in safety sciences, M.A. in industrial and labor relations from IUP, and earned a Doctor of Education degree from the University of Pittsburgh in 2000.

Helmrich-Rhodes volunteers her time with the Indiana County Chapter of the American Red Cross. She has served on the board of directors of the organization since 2012 and as a Disaster Action Team member. She was elected vice-chair of the chapter in July 2014.

In her free time, Helmrich-Rhodes enjoys travel, fly fishing, backpacking, tent camping and any outdoor fun.

She will attend SpringWorld 2014 in Rosemont, Ill. and looks forward to meeting members of the spring industry.

SpringWorld 2014 Reception Sponsored by SMI SMI reminds members of the s pr i n g i ndu s t r y t o a t t e nd t h e association’s cocktail reception at SpringWorld 2014 at the Donald E. Stephens Convention Center in Rosemont, Ill. The complimentary

reception will be held Wednesday, October 8 from 5 p.m. to 6 p.m. a nd follows t he opening day of SpringWorld. Everyone attending the trade show is invited to attend.

During your time at SpringWorld 2014 be sure to visit the SMI booth #521. Staff members will be available to answer your questions about SMI’s Metal Engineering eXpo, along with SMI programs and member benefits. n

SPRINGS / Fall 2014 / 77

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HSI Rolls Out New Integrated Control Panel for Large Ovens HSI announces the newest design for their range of large ovens. Previously, HSI’s large ovens were supplied with separate floor mounted control panels. The new optional design incorporates a fully integrated control panel on top of the oven, saving space and simplifying installation.

The following optional features are still available with the new compact control panel design: . Dual timer System Controller (DSC) . Over Temperature Protection (OTP) . Digital Error Meter (DEM) . Motor Monitor system (MM) . Wireless temperature recorder (485WL) . CQI9 configuration (CQI9M) . AMS2750E configuration (AMSE)

For additional information, contact Forming Systems, Inc. at info@formingsystemsinc.com or 269-679-3557. n

HCF800 Oven Shown above is the HCF conveyor oven, with the following dimensions: Overall: L : 8000 x W: 1710 x H: 2000 mm

(L : 315" x W: 67" x H: 79") Heat Zone: W: 1000 mm (39.3") x L: 5800 mm (228")

Advertiser's Index A & D Trading (440) 563-5227. . . . . . . . . . . . . . 66 Admiral Steel (800) 323-7055. . . . . . . . . . . . . . 54 Alex Industries (847) 298-1860. . . . . . . . . . . . . . 16 Alloy Wire International (866) 482-5569. . . . . . . . . . . . . . 23 Anchor Abrasives (708) 444-4300. . . . . . . . . . . . . . . 9 CASMI (630) 369-3466. . . . . . . . . . . . . . 20 Century Spring, Division of MW Industries (800) 237-5225. . . . . . . . . . . . . . 10 Diamond Wire Spring Co. (800) 424-0500. . . . . . . . . . . . . . 46 Elgiloy Specialty Metals (847) 695-1900. . . . . . . . . . . . . . . 8 Forming Systems Inc. (877) 594-4300. . inside front cover, back cover Gibbs Wire & Steel Co. Inc. (800) 800-4422. . . inside back cover Gibraltar Corporation (847) 769-2099. . . . . . . . . . . . . . 41 Industrial Steel & Wire (800) 767-0408. . . . . . . . . . . . . . 14

InterWire Products Inc. (914) 273-6633. . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161. . . . . . . . . . . . . . 50 John Evans' Sons (215) 368-7700. . . . . . . . . . . . . . 26 Kiswire (201) 461-8895. . . . . . . . . . . . . . . 6 Larson Systems (763) 780-2131. . . . . . . . . . . 26, 35 Link Engineering (734) 453-0800. . . . . . . . . . . . . . 74 Mapes Piano String Co. (423) 543-3195. . . . . . . . . . . . . . 45 Mount Joy Wire (800) 321-2305. . . . . . . . . . . . . . 36 NIMSCO (563) 391-0400 . . . . . . . . . . . . . 40 North American Spring Tool (860) 583-1693 . . . . . . . . . . . . . 70 Orimec (869) 746-3318. . . . . . . . . . . . . . 42 Proto Manufacturing (800) 965-8378. . . . . . . . . . . . . . 32 Radcliff Wire (860) 583-1305. . . . . . . . . . . . . . . 7

RK Trading (847) 640-9371. . . . . . . . . . . . 5, 76 Rolled Metal Products 800) 638-3544 . . . . . . . . . . . . . . 52 Simplex Rapid (563) 391-0400. . . . . . . . . . . . . . 11 Spring Manufacturers Institute (630) 495-8588 . . . . . . . . . . . 48, 78 Suzuki Garphyttan (574) 232-8800. . . . . . . . . . . . . . 19 Tool King (800) 338-1318. . . . . . . . . . . . . . 69 Ulbrich Stainless Steels (203) 239-4481. . . . . . . . . . . . . . 60 United Wire Co. (800) 840-9481. . . . . . . . . . . . . . 38 Victory Machinery Exchange (847) 918-9797. . . . . . . . . . . . . . 18 Vinston (847) 972-1098. . . . . . . . . . . . . . 27 Vulcan Spring & Manufacturing Co. (215) 721-1721 . . . . . . . . . . . . . 45 WAFIOS (203) 481-5555. . . . . . . . . . . . . . . 3 Zapp Precision Strip (203) 386-0038. . . . . . . . . . . . . . 47

SPRINGS / Fall 2014 / 79

Snapshot ©iStockphoto.com/Tryfonov Ievgenii, nicholas belton

Kelley Christy Diamond Wire Spring Name: Kelley Christy.

Company: Diamond Wire Spring, Pittsburgh, Pa. Job title: Director of Sales/Marketing & IT. Birthplace: Metairie, La. Current home: Valencia, Pa. Family: Wife, Nadine, daughter, Cecilia, sons, Chase and Cade, and fish, Silvey.

What I like most about being in the industry: The people. It always amazes me how friendly everyone is to each other. I always thought “friendly competitors” was an oxymoron, but the spring industry proves that wrong!

Favorite food: My wife’s meatloaf (to die for!!!).

Favorite books/author: Dean Koontz (back before kids and I had time and energy to read for pleasure).

Kelley and Nadine Christy

and their children (l-r) Cha

The one thing I can’t stand is: People that complain and don’t do anything about it.

My most outstanding quality is: My loyalty.

Favorite song/musician: Jimmy Buffett and Zac Brown Band.

People who knew me in school thought I was: Quiet – the “nice guy.”

Hobbies: Dance parties with the kids (sometimes a nightly event) and golf when I can.

I knew I was an “adult” when: We bought our first house.

Favorite places: Hawaii; any beach really.

Best times of my life: Local church fairs with the family. Sundays during football season (Geaux Saints!).

A really great evening to me is: Sitting on a lawn chair in my driveway with Nadine watching the kids run around.

80 / SPRINGS / Fall 2014 80 / SPRINGS / Summer 2014

If I weren’t working at Diamond Wire Spring I would like to: Travel the U.S. There are so many places I haven’t seen.

The most difficult business decision I ever had to make was: Deciding to leave Turner Broadcasting to begin my IT management career. Then, shortly after, deciding to leave my IT management career and Atlanta for Pittsburgh and the spring industry.

se, Cecilia and Cade.

Role models: My mother for her work ethic. My stepdad for his sense of humor.

I would like to be remembered in the spring industry for: Being reliable and honest.

But people will probably remember me for: The guy who helped me with that computer problem.

12 Axes Spring Coiling Machine FEATURES INCLUDE

▪ Wire Range: .031” - .118” (0.08mm - 3.0mm) ▪ Programmable Central Slide Position (pitch, cut, mandrel) ▪ 3 Sets of Feed Rollers for Precision High Speed Production ▪ 12 servo axes cam-less operation ▪ Programmable Pretension Control ▪ Optional Integrated Optical Spring Gage ▪ Optional Wireless Production Monitoring ▪ Optional Torsion Attachment w/ 3D Capability ▪ Simple RH to LH Setup Conversion ▪ Feed Roller and Straightener Pressure Gages ▪ Programmable Mandrel in/out Movement ▪ Rotating & Straight Cutoff Capability ▪ Automatic Lubrication ▪ Onscreen Diagnostics ▪ O.D. Control

Pretension Adjustment

HTC equals precision, speed, and performance for spring making or wire forming.

www.formingsystemsinc.com