Springs spring 2014 vol 53 no2

SPRING 2014

THE INTERNATIONAL MAGAZINE OF SPRING MANUFACTURE

A Publication of the Spring Manufacturers Institute / Vol. 53, No. 2

Springmakers Connect with the

Electrical Industry Family Feud 29 Mexico’s Growing Metal Class 42 SMI 81st Annual Meeting Recap 48

page 19

2001 Midwest Rd., Suite 106 Oak Brook, IL 60523-1335 Change Service Requested

Presorted Standard US Postage PAID Michigan City, IN Permit #3

President’s Message From Hap Porter

Report from Paradise By the time you receive this issue, winter should be over. Right now as I write this it is snowing here in Boston…again. For the umpteenth time in as many days, it’s cold and snowy. And there are many sections of the country that have experienced even colder and snowier weather. But there is at least one place where there has been NO snow this winter – in Hawaii.

It just so happens that SMI’s Annual Convention was in Oahu this past February. What a coincidence!

Besides enjoying some “polar-vortex-free” conditions, SMI members took time to sit on the beach or by the pool; some members were even spotted swimming. There were tours of Pearl Harbor and the Kualoa Ranch, the area used to film Jurassic Park and other Hollywood blockbusters. A whale watch took place…and whales were even sighted! And of course, being in Hawaii, there was a tremendously fun and entertaining luau.

Among all these enjoyable activities, members were busy connecting with each other. Some were seeing old friends, catching up on each other’s lives and businesses. Others were new to the SMI scene, and had the chance to make fresh acquaintances. Suppliers saw customers. And everyone there had a chance to pay tribute to Jim Wood, SMI’s independent regulatory compliance consultant, who recently announced his upcoming retirement.

The Oahu meeting was also a venue full of important educational content. We heard from David Wheatley, an expert on leadership and team building, who spoke about the choices we all make in our jobs and businesses. Nariman Behravesh, a noted economist, updated members on the U.S. and global economies. And Colonel David Hunt gave a synopsis of the current state of the war on terror.

More important than any of this, however, was the work undertaken by the SMI operating committees. These groups consider everything from the educational content of future meetings, to how we best attract new members, to what surveys are the most useful to our members, to how Springs magazine can maintain its excellence in publishing the news of our industry, and how our associate members can best serve SMI. This convention marked the debut of our Trade Show committee, charged with developing and producing the first-ever SMI technical symposium and exhibition. Led by Dan Sceli of Peterson Spring, the membership of this group includes eight regular, associate and even honorary members. In addition, it is working closely with our Technical committee (co-chaired by Gene Huber of Winamac Coil and Simon Fleury of Liberty Spring) since a key component of the trade show experience will be the technical symposium to be held during the event.

I would like to extend an invitation to any SMI member who would like to help develop our trade show. There is much to accomplish, and our ultimate success will depend on the involvement of many talented folks.

So as you can see – lots happened while SMI was out in paradise. If you were there, thanks for coming. And if you weren’t, I hope you will consider joining us in April, 2015 when we gather in Orlando.

Hap Porter President and COO, SEI MetalTek hporter@seimetaltek.com

2 / SPRINGS / Spring 2014

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: echo3005/Shutterstock.com

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Contents

19

55

48 FEATURES 19 Springmakers Connect with the Electrical Industry

42

By Gary McCoy

27 Flashback President's Message

By George C. Underwood

29 Family Feud How Buy-Sell Agreements Can Save the Family Business

By Phillip M. Perry

35 International Spring Conference Planned for Tokyo in 2015 37 Ulbrich Marks a 90th Year Milestone 42 Mexico's Growing Metal Class

By Peter Buxbaum

48 SMI Celebrates 81st Annual Meeting in Hawaii

4 / SPRINGS / Spring 2014

COLUMNS 15 Be Aware Safety Tips OSHA Record Keeping for Power Presses

By Jim Wood

15 IST Spring Technology Nickel Alloy Springs in Contact with Molten Metals

By Margaret O'Malley

12 Regional Spring Association Report 55 Springmaker Spotlight Former Rower Helps Steer SMI Into New Waters: A Profile of Hap Porter, SMI's 34th President

By Gary McCoy

61 Book Corner 63 Inside SMI 65 New Products

DEPARTMENTS 2 President’s Message Report from Paradise

7 Global Highlights

67 Advertisers’ Index 68 Snapshot Keith Porter Jr., Newcomb Spring

The New BM 90 Coiling and Bending Machine (max. 16 mm Ø) − New bending concept − 3 concentric bending axis − 2 axial movable bending pins − All axes are numerically controlled − Movable cutting unit optionally available − Manually adjustable bend-back clearance − Machine program creation from CAD data

BM Series Working Ranges: BM 30 max. 6.5 mm Ã&#x2DC; BM 40 max. 8.0 mm Ã&#x2DC; BM 50 max. 10.0 mm Ã&#x2DC; < BM 60 max. 13.0 mm Ã&#x2DC; BM 90 max. 16.0 mm Ã&#x2DC;

BM 90 Mandrel Coiling Unit â&#x2C6;&#x2019; Expanded range of parts due to the combination of bending head and coiling unit â&#x2C6;&#x2019; Production of torsion springs (spring bodies with / without pitch) â&#x2C6;&#x2019; Production of spring bodies with defined pitch using profiled mandrels Examples of 10.5 mm Ã&#x2DC; spring steel with 189 KSI tensile

approx. 3 parts/min

approx. 5 parts/min

bend

approx. 7.5 parts/min

wire

approx. 7 parts/min

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SPRINGS / Spring 2014 / 5

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Global Highlights North America Betts Company has been named a 2014 Business Partnership award winner by the Fresno Compact and was formally recognized at the Fresno Compact’s 18th Annual Shareholder’s Luncheon on March 5, 2014.

Each year the Fresno Compact recognizes 10 local businesses that have built exceptional partnerships with schools, contributing time and resources to help students reach their full potential.

Brett Camacho, the department chair for trades in the applied technology division at Fresno City College, nominated Betts Company for the award. Camacho says for the last two semesters the school has worked collaboratively with Betts Company on the construction of 30 metal racks to hold materials for the company. “Their engineers drew up the plans, the company purchased all of the materials and the fabrication students built them,” explained Camacho. “This worked out great because it provided our students the opportunity to build different projects with no out-of-pocket cost.”

Camacho went on to say, “The partnership positively impacts the students by giving them real world experience they might not otherwise have the opportunity to receive.

Our business partners positively impact the community by allowing students to receive better training, which leads to their being better contributors to the industries in our area.”

Joe Devany, director of operations, represented Betts Company at the March 5 luncheon and says the company is honored by the recognition. “We are thrilled to support educational endeavors in our community through schools like Fresno City College and Cal State University Fresno,” said Devany. “We value these positive partnerships and will continue to support their growth.”

The purpose of the Fresno Compact is to focus community-wide efforts on preparing students for the increasing demands of society and the workplace. In doing so, it provides a mechanism for mobilizing business and community support of local public schools, and it acts as a clearinghouse for the sharing of information among school districts, businesses, and community leaders. The Fresno Compact is the coordinating body of the Fresno Area Strive program. For more information on The Fresno Compact, visit www.fresnocompact.com.

For more information on Betts Company, visit www.

Betts1868.com, phone 559-498-3304, or email info@ Betts1868.com.

John Evans’ Sons has announced that Frank L . D a v e y, e x e c u t iv e chairman, has retired after 37 years with the company. Davey started w it h t he compa ny in planning and development, and was vice president of finance and marketing for many years before becoming chairman in 2005.

Davey graduated from the U.S. Naval Academy, Frank L. Davey and Temple University Law School. After graduation from the U.S. Naval Academy in 1963, he served six years on active duty on the frigate USS Preble, the destroyer USS Sarsfield and an assignment as staff engineer with DESRON 36. His sea duty tours included three Western Pacific deployments with Vietnam service and a Mediterranean deployment.

Davey left active duty and went to law school and transferred his commission to the Naval Reserve as a JAG Corps lawyer. He retired as a Navy Captain and the commanding officer of the Philadelphia Reserve Legal Unit in 1986.

In civilian life, Davey was employed by Proctor and Gamble, then practiced law and finally worked on a federal congressman's staff before joining John Evans’ Sons in 1977. He eventually owned John Evans’ Sons in Lansdale, Pa. as well as Delmaco Manufacturing in Georgetown, Del. During this time, Davey learned to fly and piloted his own A-36 Bonanza.

Davey is married to Elaine; they have three married children and eight grandchildren.

Davey will remain on the Board of Directors as nonexecutive chairman.

National Association of Manufacturers (NAM) president and CEO Jay Timmons delivered the annual State of Manufacturing address on February 25 in Houston, Texas, one of the manufacturing community’s most vibrant economic centers. Speaking at the Greater Houston Partnership’s Thought Leader Series, Timmons discussed the unique opportunities and challenges facing

SPRINGS / Spring 2014 / 7

Global Highlights

™

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the manufacturing economy and the solutions that will bolster the manufacturing industry’s economic strength nationwide and throughout the world.

Timmons attributed manufacturing’s comeback to its dynamic workforce, innovation and game-changing energy resources. He noted, however, the critical need to implement policies supporting manufacturing to eliminate the stifling effect that overregulation, high taxes, rising health care costs and a lack of trade agreements have on manufacturers’ competitiveness. Portions of the address are as follows: “…Today, I’m pleased to report to you that manufacturing in America is making a comeback. That’s a tribute to the hardworking men and women who produce the goods and generate the ideas that power the U.S. economy as well as the global economy.” “…The question we confront is, ‘How do we ensure that manufacturing in the United States is robust, dynamic and ready to meet the needs of our economy and our workers?’ Consider this finding from the Manufacturers Alliance: Manufacturing employment can grow by more than 300,000 jobs every year, and the economy can grow by an additional $1.5 trillion.… So what do we need to do to achieve this goal? It all comes down to a focus on three specific areas: products, people and policy.”

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“…The scope of policies that impact manufacturing— and the people who work in manufacturing—is incredibly broad and incredibly impactful. While there are many reasons to be optimistic about the future of American manufacturing, government overreach poses the single biggest threat.… One entire industry—energy—is at risk of suffocation by regulation. It seems like all we hear from this Administration and its allies in Congress is that they want to put a stop to the use of oil, gas and coal, when the focus should be on developing and maintaining secure and affordable energy.” “…It’s a long list. But let’s be clear—for America to maintain our mantle of economic leadership, we need policies at the federal level that help manufacturers seize the opportunities before us, not policies that hold us back.”

The NAM’s A Growth Agenda: Four Goals for a Manufacturing Resurgence in America sets a roadmap for economic growth and enhanced competitiveness for manufacturers. This plan is a benchmark for policymakers and a proven, achievable list of goals that will get the U.S. economy moving again.

For more information, visit www.nam.org MW Industries, a leading provider of highly engineered springs, specialty fasteners, machined parts, and other precision components, announced on February 19, 2014 the acquisition of Futuristics Components, a manufacturer of precision turned components for the microwave, electronics, defense, aerospace and related industries.

Founded in 1988 and headquartered in Waterbury, Conn., Futuristics’ products include fasteners, washers, timing devices, switches, and fittings. Its expertise is in miniature machined products requiring precision and extremely tight tolerances. The company will be integrated into MW’s RAF Electronic Hardware Division, located in nearby Seymour, Conn.

Bill Marcum, CEO of MW Industries, said, “Futuristics has built a solid reputation over the past 25-plus years as a niche manufacturer of precision machined components serving a number of key industries. The company’s products and work force are highly complementary to our existing facilities, and as part of the MW family of companies, we believe that Futuristics is better positioned to penetrate new markets, including the medical, electronics, communications, aerospace and avionics sectors.”

MW has completed a number of acquisitions to strengthen its product offerings and customer base and is currently evaluating a strong pipeline of transactions.

Diamond Wire Spring Company, a manufacturer of stock and precision custom springs, has announced that its main manufacturing plant located in Pittsburgh, Pa. has achieved the ISO 9001-2008 certification. The Pittsburgh

Global Highlights

plant now joins the company’s Taylors, S.C. plant as ISO 9001-2008 certified facilities.

The company’s management system was assessed and certified by NQA USA Registrars, a full service certification body accredited by ANAB. “Achieving ISO 9001-2008 certification is a testament to the hard work and dedication of all of our employees,” said Donald Fazio, president of Diamond Wire Spring Company.

“Attaining this certification speaks to our continuous efforts to increase internal process disciplines, provide first class customer service and make certain Diamond Wire Spring products remain synonymous with quality.”

Gibbs Wire and Steel Company, Inc. has launched an enhanced website at either www.gibbswire.com or www. gibbsmetals.com.

Gibbs incorporates a network of metal service centers, strategically located throughout the U.S., Mexico and Canada, and is ISO 9001:2008 certified. The new website additions allow metals buyers at spring manufacturing companies to quickly access all that Gibbs has to offer the springmaking industry on one page that is specifically tailored to address their needs.

New website features include: Links to the spring manufacturers’ associations in the U.S. and Europe; One-

click access to stainless steel news and information; A glossary of metal terms; Links to metal industry resources, along with descriptive comments and evaluations of these sites; A general overview of stainless spring wire; and a general overview of carbon spring wire.

All of the above can be accessed by logging onto the “INDUSTRIES SERVED” section of the website and clicking on “SPRING MANUFACTURERS.” Interested individuals may sign up for the "Gibbs Wire" newsletter via the link on the homepage of the website.

The Wire Association International (WAI), Inc. has appointed William (Bill) Avise as the 60th president for a one-year term that began on January 1, 2014. Avise will also serve as chairman of the Board of Directors for the 84-year-old association, which is headquartered in Guilford, Conn.

Avise has been at the forefront of an ongoing associationwide initiative to increase WAI membership, which has resulted in hundreds of new members representing both industry manufacturers and suppliers. “Being a member of the WAI is one of the best ways to support our industry.

With the new website and more webinars having an operations focus, the value of being a WAI member has improved significantly. In addition to WAI members

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Global Highlights

having access to thousands of tech nica l/operat ions papers, t he network ing opportunities with other wire industry peers are invaluable,” said Avise.

A WAI member since 19 9 3, Av i s e h a s b e e n actively involved in the organization’s leadership through his participation on the executive committee; Bill Avise as a member, a nd later co-chair, of the conference programming committee; and as executive committee liaison to both the paper awards and member relations committees.

He has also contributed to the American Wire Producers Association (AWPA) since 1994, serving as the organization’s operations committee chairman from 1999 to 2004.

Avise currently holds the position of president of the Wire Group and vice president of Leggett & Platt. His career in the wire industry started in August 1970 at Union Wire Rope (Armco) in Kansas City, Mo. From 1970 to 1975, he worked as a wire drawer while attending college at Central Missouri State University. After graduating with a B.S. degree in business in 1975, he became a shift

10 / SPRINGS / Spring 2014

supervisor and progressively worked up to the position of operations manager. In 1988 he accepted the position of plant manager with Leggett & Platt at the Merit Steel facility in Kouts, Ind. Following a promotion to vice president of operations, he relocated to Carthage, Mo., and became president of the Wire Group in 2009.

International Airedale Springs in Hawort h, Engla nd has appointed Steve Hart to the board following his promotion from technical manager to production director.

Hart, from Keighley, joi ned t he compa ny as a n operat ive in D e c e m b e r 19 9 3, a n d qu ic k ly demon st rated his technical abilities, Steve Hart becoming an auto setter i n t he spr i ng ma k i ng department, and moving up rapidly through the ranks during his 20-plus years with the firm.

Hart’s career virtually mirrors that of his late father John, who also worked for Airedale Springs, who started at the bottom and worked his way up to become technical director.

Hart played a key technical role in Airedale Springs’ move in 2012 to its newly built £3.5 million factory and office premises off Bridgehouse Lane, The Spring Works, which replaced the firm’s former Ebor Mills factory in Haworth when it was destroyed by fire in 2010.

Airedale Springs’ chairman Tim Parkinson said: “Steve has been right at the forefront of the new machinery and technology we have introduced into the business. He is held in high regard by colleagues and customers alike for his expertise. He is integral to the success of the business and will continue to be a great asset as we look to develop our manufacturing range even further in the future.”

Hart is married to Claire, who he first met at Airedale Springs when she worked in the production planning department. The couple have a four-year-old daughter, Emmy.

Outside work, Hart enjoys all things relating to electronics.

A i reda le Spr i ngs wa s la st yea r r u n ner-up i n the Environmental Efficiency category of the EEF Future Manufacturing Awards, and picked up the environmentally friendly business of the year award at the Keighley Business Awards. Both awards recognized the firm’s commitment to design and construct an energyefficient building. Q

SPRINGS / Spring 2014 / 11

©iStockphoto.com/Scott Hirko

Regional Spring Association Report NESMA Featured in Newspaper Article The New Engla nd Spring and Metalstamping Association (NESMA) was featured in an article, “It’s time to spring into action a nd t r a i n mor e sk i l led workers,” that appeared in the March 10 edition of the New Britain Herald/The Bristol Press.

Under t he “Focus on Ma nufactu ring” sect ion of the paper, the article t a l k e d a b o ut N E S M A’s work in conjunction with t he Cent ral Connecticut Cha mbers of Com merce to help promote the need to t ra in more sk illed workers for manufacturing jobs, particularly in the spring and metal stamping industry that dominates the landscape in the greater Bristol area.

Th e a r t i c le e x pl a i n e d t h e cooper at ive ef for t b et we en t he groups to work with educational and commercial industrial partners to develop multiple curricula leading to certification and employment in manufacturing and the trades.

Jim Albert, president and CEO of the Central Connecticut Chambers of

WCSMA Schedules Spring Fling for May in San Diego

12 / SPRINGS / Spring 2014

Commerce, was extensively quoted in the article along with Cindy Scoville, the vice president of membership and sales for the group. Scoville also serves as secretary/treasurer for NESMA. Albert expects the efforts between t he groups to develop cu r ricula will culminate in a pilot program beginning later this year.

To read the complete article, visit the NESMA website at www.nesma-usa. com and look under the “Media” tab.

Th e We s t C o a s t Spr i n g Manufacturers Association (WCSMA) will hold its annual “Spring Fling” at the Crowne Plaza San Diego Mission Valley. The event is scheduled for the weekend of May 16-18. A golf outing

will also will be held at the adjacent Riverwalk Golf Course.

For more details on this and other events, visit the WCSMA Facebook page or www.wcsma.us.

Regional Association Report

CASMI Speaker Looks at Marketing Ideas The Chicago Association of Spring Ma nufacturers (CASMI) held its March meeting at Manzo’s Banquets in Des Plaines, Ill., which included a presentation by Jeff Rappaport, CEO of Outlook Marketing Services.

Rappaport shared from his more than 25 years of experience in the development and implementation of successful marketing programs.

Outlook client work includes: GE, Koch Industries, Ryerson, Baxter, C a r d i n a l H e a lt h , C DW, Av e r y Dennison, Fujitsu, Transplace, and Molex.

T h e f o c u s o f R a p p a p o r t ’s presentation to CASMI members was on how their manufacturing companies could deliver targeted messages that will positively impact their business. He specifically focused on ideas for differentiating their message from competitors.

R appapor t sa id t he key to differentiation was having the right message for the right audience. He sa id ma ny t imes compa nies a re m issing t he ma rk because t hei r messaging is not tied to customer value and customer connection.

Rappaport walked through an exercise Outlook Marketing Services uses with clients to create a new message that connects with their customers. He included seven “don’ts” of messaging.

1. Not speaking to customer’s values.

2. Relying too heavily on buzzwords.

3. Failing to make a message portable.

4. Forgetting to excite.

5. Messaging by committee.

6. Failure to test/validate prior to message use.

7. Not looking at the competitive landscape.

“A t a r ge t e d me s s a ge d r ive s companies to differentiate themselves in the market and build stakeholder value,” said Rappaport.

CASMI planned an April plant tour to Tri Star Metals in Freeport, Ill. The association’s next event is its annual golf outing and dinner, which will be held on Wednesday, June 4 at Indian Lakes in Bloomingdale, Ill. For more information, visit www. casmi-springworld.org. Q

SPRINGS / Spring 2014 / 13

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Be Aware Safety Tips

OSHA Record Keeping for Power Presses

By Jim Wood

lthough there have always been OSHA standards cover i ng t he i n spec t ion, m a i nten a nce a nd modification of power presses (punch presses), they have not really been clarified. OSHA has now outlined the inspection and recordkeeping requirements on these machines. Below I have inserted the new changes which took affect on February 18, 2014.

A

of the clutch/brake mechanism, antirepeat feature, and single-stroke mechanism;

EFFECTIVE DATE NOTE: This change becomes effective February 18, 2014.

(e)(1)(ii)(C) Maintain a certification record of each ma i ntena nce ta sk per for med u nder t he d i rected component of the inspection program that includes the date of the maintenance task, the signature of the person who performed the maintenance task, and the serial number, or other identifier, of the power press maintained.

Note to paragraph (e)(1)(ii): Inspections of clutch/ brake mechanism, antirepeat feature, and single stroke mecha nism under t he directed component of t he inspection program are exempt from requirements to maintain certification records specified by paragraph (e) (1)(i)(C) of this section, but inspections of the clutch/brake mechanism, antirepeat, and single stroke mechanism conducted under the general component of the inspection program are not exempt from this requirement.

(e) Inspection, maintenance, and modification of presses--(1) Inspection and maintenance records. The employer shall establish and follow an inspection program having a general component and a directed component. (e)(1)(i) Under the general component of the inspection program, the employer shall: (e)(1)(i)(A) Conduct periodic and regular inspections of each power press to ensure that all of its parts, auxiliary equipment, and safeguards, including the clutch/ brake mechanism, antirepeat feature, and single-stroke mechanism, are in a safe operating condition and adjustment; (e)(1)(i)(B) Perform and complete necessary maintenance or repair, or both, before operating the press; and (e)(1)(i)(C) Maintain a certification record of each inspection, and each maintenance and repair task performed, under the general component of the inspection program that includes the date of the inspection, maintenance, or repair work, the signature of the person who performed the inspection, maintenance, or repair work, and the serial number, or other identifier, of the power press inspected, maintained, and repaired. (e)(1)(ii) Under t he di rected component of t he inspection program, the employer shall: (e)(1)(ii)(A) Inspect and test each press on a regular basis at least once a week to determine the condition

(e)(1)(i i)(B) Pe r for m a nd c omplete ne c e s s a r y maintenance or repair, or both, on the clutch/brake mecha nism, a nt irepeat featu re, a nd single-st roke mechanism before operating the press; and

(e)(1)(iii) Paragraph (e)(1)(ii) of this section does not apply to presses that comply with paragraphs (b)(13) and (14) of this section. (b)(13) Control reliability. When required by paragraph (c)(5) of t his section, t he cont rol system shall be

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.

SPRINGS / Spring 2014 / 15

Stainless Steels, Nickel Bases, Copper Bases, Carbon Steels, and Aluminum

50 McDermott Rd. North Haven, CT 06473 unitedwirecompany.com 800.840.9481 constructed so that a failure within the system does not prevent the normal stopping action from being applied to the press when required, but does prevent initiation of a successive stroke until the failure is corrected. The failure shall be detectable by a simple test, or indicated by the control system. This requirement does not apply to those elements of the control system which have no effect on the protection against point of operation injuries. (b)(14) Brake system monitoring. When required by paragraph (c)(5) of this section, the brake monitor shall meet the following requirements: (b)(14)(i) Be so constructed as to automatically prevent the activation of a successive stroke if the stopping time or braking distance deteriorates to a point where the safety distance being utilized does not meet the requirements set forth in paragraph (c)(3)(iii)(e) or (c)(3)(vii)(c) of this section. The brake monitor used with the Type B gate or movable barrier device shall be installed in a manner to detect slide top-stop overrun beyond the normal limit reasonably established by the employer. (b)(14)(ii) Be installed on a press such that it indicates when t he performa nce of t he bra k ing system has

16 / SPRINGS / Spring 2014

deteriorated to the extent described in paragraph (b)(14) (i) of this section; and (b)(14)(iii) Be constructed and installed in a manner to monitor brake system performance on each stroke.

Jimâ&#x20AC;&#x2122;s Regulatory Tip: As of May 25, 2012, the Hazard Communication standard was replaced by the Globally Harmonized System (GHS) standard. By December 1, 2013, all employees had to be trained in the elements of the new chemical identiďŹ cation labels and the Safety Data Sheet (SDS) format. To obtain training handouts, go to osha.gov, search for Quick Cards, click on Hazard Communication pictogram and safety data sheet quick card. Make hand out copies for all employees, explaining the changes in the Hazard Communication program. To view the new GHS program, click on osha.gov, search for GHS. Q

IST Spring Technology

Nickel Alloy Springs in Contact with Molten Metals

By Margaret O'Malley

I

t is a widely known fact that certain spring materials come into contact with low melting point molten metals during the course of their manufacture. Molten lead is the medium of choice for the patenting operation of the higher carbon music wire grades, and most pre-galvanized wire is produced by passing the wire through a molten zinc bath.

However, there will be instances where contact between a spring material and a low melting point molten metal can have dire consequences. Liquid metal embrittlement is one such widely known phenomenon that results in the loss of ductility in normally ductile metals. The disastrous explosion at the Flixborough chemical plant in the U.K. in 1975 which killed 28 people was attributed to liquid metal embrittlement of a stainless steel pipe in contact with molten zinc.

Molten aluminum will dissolve any iron-chromium, nickelchromium-iron and nickelchromium alloys. It will even dissolve the cobalt base alloys. ©iStockphoto.com/tpnagasima

But liquid metal embrittlement is not the only problem that may occur, as one IST member recently discovered.

What may be more surprising to learn is that the problem occurred with a nickel alloy grade – a material that has a melting point in excess of 2535°F (1390°C), much higher than that for the low melting point metals. The springs in question were being given the standard heat treatment that the springmaker had used many times before, but in this particular instance, some traces of aluminum foil had been left in the steel heat treatment baskets. When the springs were removed from the heat treatment oven, they were found to have areas where the metal appeared to have “melted,” even though the nickel alloy should have been in a solid statement throughout the heat treatment.

This happened because molten aluminum will dissolve any iron-chromium, nickel-chromium-iron and nickel-chromium alloys. It will even dissolve the cobalt base alloys. As one material supplier has stated, who has come across this problem in the past, “molten aluminum goes through these materials like hot water through snow!”

Another low melting point metal that can cause difficulties with the nickel alloys is copper (and copper alloys) – this penetrates the grain boundaries, weakening them and resulting in intergranular failure.

Good process control of the heat treatment process should include a check to ensure that all traces of low melting point metals are removed from assemblies/ fixtures, etc. Q

Margaret O’Malley is the membership services manager at the Institute of Spring Technology (IST) in Sheffield, England. She is the main contact point for the Technical Advisory Helpline provided by IST to members and customers alike, and is the IST representative on a number of Specification Committees.

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

SPRINGS / Spring 2014 / 17

18 / SPRINGS / Spring 2014

Springmakers Connect with the Electrical Industry

By Gary McCoy, Managing Editor

echo3005/Shutterstock

SPRINGS / Spring 2014 / 19

Most of us take electricity for granted. You flip a switch and suddenly a dark room is illuminated. You put a piece of bread in the toaster and, minutes later, you have brown toast.

A

ppreciation for electricity goes up exponentially when a storm hits and power to your home or business is unlikely to be restored for days.

Like products that are made for other niche industries that springmakers serve, electrical components are missioncritical items that must be manufactured precisely to standard so electrical connections work.

Describing his company’s business in the electrical industry, Reb Banas, president of Stanley Spring & Stamping in Chicago sums it up by saying, “We connect whatever you’re connecting.”

Market Size There are many industries closely aligned with the electrical business. For the purpose and scope of this article, we will not look at the electronics business, which includes automotive sensors, printed circuit boards and semiconductors.

20 / SPRINGS / Spring 2014

Defining the electrical business is not as simple as it might seem. Two primary reports from IBSWorld help put the market into perspective and describe the type of companies for which SMI springmakers make products.

The IBISWorld report, “Wiring Device Manufacturing in the U.S.,” was published in April 2014. The research firm defines this segment as the industry that manufactures “current-carrying wiring devices and non-current-carrying wiring devices for wiring electrical circuits. These include products such as outlet and switch electrical wiring boxes, electrical insulators, transmission pole and line hardware, electrical metallic tubes, switches, conductor connectors, electric sockets, plugs and electrical cords.”

IBSWorld forecasts a small increase in annual growth, from 2.4 percent between 2009 and 2014 to 3.7 percent from 2014 to 2019. As noted in the paper’s executive summary, “Accelerated building activity and increased spending on efficient, secure and safe electrical equipment are projected

Product and Services Segmentation (2014) Electrical Equipment Manufacturing

15.2%

Transformers

29.7%

Motors and generators

27.2%

Relays and industrial controls

27.9%

Switches

Wiring Device Manufacturing

13.9%

Electric conduit and conduit fittings

22.5%

Wire connectors for electrical circuitry

14.0%

Pole line and transmission hardware

18.5%

Switches for electrical circuitry

14.7%

Current-carrying wiring devices and supplies

16.4%

Other non-current carrying wiring device and supplies Source: IBISWorld.com

to stimulate growth in domestic demand for wiring devices over the five years to 2019.”

A similar industry is electrical equipment manufacturing.

The March 2014 IBISWorld study “Electrical Equipment Manufacturing in the U.S.” looked at the size of the market, along with key external drivers, current performance, industry outlook and life cycle stage.

IBISWorld defines electrical equipment manufacturing as the sector that “manufactures power, distribution and specialty transformers; electric motors, generators and motor-generator sets; switchgear and switchboard apparatus; relays; and industrial controls. Electrical equipment manufacturers sell their products to other manufacturing industries, wholesalers and the construction sector.”

IBISWorld forecasts annual growth in the electrical equipment manufacturing sector over the next five years (2014-2019) at 4.4 percent.

Like most sectors of the economy, both wire device manufacturers and electrical equipment manufacturers were impacted by a slowdown in residential and commercial construction during The Great Recession from 2008 to 2010. A recent increase in demand is fueling hope that steady business will continue in this sector.

What Do Springmakers Make?

Some 70 percent of Stanley Spring and Stamping products go into electrical connectors and wall outlets. “We essentially make all the guts behind wall mounted electrical connectors,” said Banas. “This includes commercial, residential and industrial applications.”

One of Stanley Spring’s largest customers is Legrand, a world specialist in products and systems for electrical installations and information networks.

Most of the electrical-related products that Stanley Spring and Stamping makes, some 1,400 different parts, are

SPRINGS / Spring 2014 / 21

Accelerated building activity and increased spending on efficient, secure and safe electrical equipment are projected to stimulate growth in domestic demand for wiring devices over the five years to 2019.

completed using progressive dies utilizing up to eight different types of brass.

Banas says production runs could be “five pieces to 10 million. It’s a wide gamut.”

An example of one of the products they make for Legrand is a hospital-grade USB charger with tamper-resistant 20A duplex receptacles.

All of Stanley Spring & Stamping’s electrical products are made in Chicago, and some are nickel-plated or galvanized.

“Everything has to be free and clear of oil and debris,” explained Banas.

“We have a 53-foot semi that travels to Mexico once a week loaded with 40,000 pounds of widgets,” said Banas. “Everything we make here (Chicago) is assembled in Mexico.”

One of the precision stampings that the company makes for the electrical industry is a strap subassembly. It is formed utilizing a high speed 150 ton punch press. Composed of mild steel and brass, the finished strap features dimensions of 4.5" in length, 1.5" in width, and 1" in height.

Strap subassemblies then have nickel plating applied before shipment to the customer's facility in Mexico.

Richard Rubenstein, president of Plymouth Spring in Bristol, Conn., said the electrical parts they manufacture are primarily made out of copper and are produced using fourslide machines. A smaller percentage of Plymouth Spring products for electrical are wireforms and springs.

“Our parts are used as components in electrical switching equipment for a number of customers, which are large multinational companies,” explained Rubenstein.

Rubenstein says the business they have earned in the electrical industry goes back many years and are all about

22 / SPRINGS / Spring 2014

relationships that have been built. “They keep us on our toes all the time and modifications are required at times,” explained Rubenstein.

“Certainly quality is a key component and we have to be competitive,” said Rubenstein. He said these are the normal things required of any customer.

He said customers have a wide variety of requirements.

Some require assembly, some require machining and “there are all types of finishing requirements on different parts, everything from silver plating to exotic hardening and heat treating.”

Rubenstein describes Plymouth Spring’s electrical customers as “first class” and at the “top of the business.”

He adds, “Although very demanding and very exacting, they are very good to deal with.”

Jim Richards, vice president of sales and marketing for Bristol, Conn.-based Fourslide Spring and Stamping, says a lot of the parts they make are used in electrical and electronic applications.

“We don’t do anything specifically for the electrical industry,” explained Richards. “We make things for virtually all industries.”

He says most segments of the economy are utilizing contacts and connectors for powered devices, whether are they are operated using A/C current or are battery operated.

“The kinds of electrical components we make are used in virtually every sector,” said Richards. “They are used in medical, consumer goods, and power generation; you name it, they’re out there.”

Though they do a lit tle bit of this work on power presses, Richards acknowledges that “fourslide is our core

competency.” Fourslide Spring and Stamping does have one customer for whom they have an assembly operation.

“Electrical components in general are usually made with a lot of red metals; brass, phosphor bronze, beryllium copper, and copper,” said Richards. He said they try to avoid secondary operations as much as possible.

“The best bang for the buck is for the part to be complete when it comes off the machine,” explained Richards. Of the secondary operations they perform, Richards said tapping and minor assembly work are the most popular.

Banas says special building codes and requirements are placed upon the OEM in terms of how they sell and market their products.

“You are always trying to remove material or increase conductivity without sacrificing the quality of the product,” said Banas. “You have a lot of stuff from Asia that’s made with thinner materials for baseline safety requirements or building code requirements, whereas the stuff we are supplying is a little bit more substantial for construction and industrial applications.”

What is Required?

Most manufactured electrical parts made by springmakers go into devices approved by Underwriters Lab (U.L.) Generally speaking, springmakers do not hold the certification by U.L. because that belongs to the OEM customer. Rather the parts they make must conform to U.L. standards for safety.

Richards says Fourslide Spring and Stamping has one part they make that requires assembly, so being U.L. certified for that operation is required and the company is audited on a quarterly basis.

Banas says most of the parts made by Stanley Spring & Stamping are approved by U.L. for safety. He says special zoning requirements present more of a challenge.

“The city of Chicago has special nickel plated hospital grade strap, but it only goes into hospitals in Cook County,” explained Banas. “Yet if you are in Detroit or Dallas you can use something else.”

A Changing Customer Base Electrical industry customers, like other industries that SMI members serve, have become much more demanding.

“Some customers want smaller shipments, more frequently,” explained Rubenstein, “while other customers are consolidating their shipments.”

He said requirements are changing all the time and springmakers must be ready to adjust.

Unless it is a special order item, Banas says retail, industrial and commercial customers are guaranteed in-stock products by the companies he makes parts for.

“We are quick to respond within five to 10 days to meet the requirements they have,” said Banas. “So we build ahead as much as possible. If you have a natural disaster, like a flood that wipes out places, they usually gobble up whatever inventory you’ve built up.”

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Overall Banas says today’s customers have shortened lead times and are always looking for lower prices. “You have to be nimble on your feet, quick to react and quick to move.”

Richards has observed a significant change with most Fourslide Spring & Stamping customers, not just in the electrical market, of a shortened life cycle for their products.

“Whereas many years ago it might not be unusual to make a certain number of parts for 25 to 30 years,” explained Richards, “that would be more the exception than the rule now, because product lifecycles are a good deal shorter.”

As an example, Richards pointed out a customer that use to make Zip drives. “Well, how long did that last? So the more technology based the industry is, the shorter the lifecycles are going to be.”

Richards says 30 years ago when Fourslide Spring & Stamping compiled its list of top 50 customers, it looked like a carbon copy year after year after year.

“Today, not only are customers doing more new parts because of this shortened lifecycle, we also see more new customers for the very same reasons,” said Richards.

He says over the past 10 years Fourslide Spring & Stamping has seen “quite a turnover in that top 50. I don’t necessarily think our experience is unusual in that respect.

“We do an awful lot of new tools; and to a large extent you have to do a lot of that replenishing of new business because of the attrition that is caused by the shortened lifecycles. You’re not having customers leave you, you are having parts die.”

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Rubenstein agrees that new parts are being developed.

“Seven or 8 years ago everything was going to China,” said Rubenstein. “Today parts are coming back.”

Rubenstein says a number of Plymout h Spring customers are “reshoring” parts to North America.

“Although I won’t say it’s a flood, it is certainly more than a trickle,” explained Rubenstein of the trend. “More importantly, parts are no longer automatically going to China.

Five or six years ago they were all automatically going.”

Rubenstein cites two reasons why parts are being reshored.

1) Transportation costs have risen enormously.

2) In copper based parts, copper costs the same no matter where you buy it: in China, the United States or Mexico.

With no commodity price advantage, Rubenstein says “if copper represents a fairly significant part of your purchase cost, and freight is a factor (and copper is heavy) it may well pay to reduce your transportation costs significantly and buy domestically. In other words you can’t buy copper at 20 percent off in China. They pay the exact same price for copper that we pay.”

Banas says a steadier worldwide price for copper over the past year and a half has helped his electrical parts business.

“Prior to that, copper could fluctuate 25 to 30 percent within a year. So you were having to constantly reprice your product and sell it whether the cost was up or down.”

Those in the business of making parts for the electrical industry cite long term relationships to their success in the business.

With the high entry cost of entering the business, mainly due to tooling costs, many say it would be difficult for new springmakers to enter the business.

“It’s expensive for someone to retool,” said Rubenstein.

“In the few cases where people have moved tooling to us, we’ve had to adapt that tooling at some expense—either to us or the customer. So it’s difficult to do.”

While most of us take electricity for granted, springmakers who produce products for this market segment do not.

Rubenstein says, “If you have a good customer, you work very hard to keep them.” Q

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24 / SPRINGS / Spring 2014

Reshoring Continues

Becoming An Electrical Supplier

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Richards believes if companies are not getting new customers and new work, they are ultimately losing ground.

“More new parts and new customers are essential today just to keep your nose above water. I don’t know if that was the case 30 years ago.”

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Flashback

President’s Message

By George C. Underwood

T (Editor's note: In this edition of Flashback, we reprint the President's Message from the late George C. Underwood that appeared in the May 1981 issue of Springs. Underwood served as SMI president from 1979 to 1981 and was president of Hardware Products Company. His tie to SMI's newest president, Hap Porter, is very strong. In 1987 Underwood hired Porter to work at Hardware Products.)

alking with fellow springmakers I have been repeatedly made aware of the fact that while we are united in common goals, we remain a diverse, highly individualized group of competitors. And we like it that way. All of us are concerned with inflation, government regulation, shrinking markets, worldwide competition, unions, productivity, and quality controls. We monitor the automotive and metals industries with keen interest.

Automation has entered our offices. We are working to keep pace with a constantly changing economic scene and to remain viable in the marketplace — efforts shared by all SMI members, and, indeed, by businessmen throughout the nation.

And yet, even with such strong mutual bonds, we remain keen competitors. We each strive to establish a unique identity for our firm—something to set us apart from the rest. We may establish a reputation in any one of a number of ways: through the specialized use of a particular material, through top-notch engineering capability; or perhaps by offering an unusually broad product line.

The success of a spring firm is often based not only on the springs produced, but on a factor unique to that company. Individuality is highly prized in this industry.

By being managers who are close to our people and can bring out their best ideas for our businesses, we can continue to compete effectively against international competition which will continue to increase in the future.

SPRINGS / Spring 2014 / 27

of ou r toughest foreig n Quality circle programs* Springmakers across the country can cite competitors are excellent are not really new to our important manufacturing innovations and imitators, but here in the companies, but t hey a re United States we still have becoming more publicized adaptations made by inventive employees great originators. Q and are something that we who cared about the work and the product. should encourage to get the best possible suggestions and * Editorâ&#x20AC;&#x2122;s note: The quality Let's bring out this attitude in our workers help improve the efďŹ ciency circle concept was popular who are each different, unique and special. of our firms. We will do at the time Underwoodâ&#x20AC;&#x2122;s well to communicate with article was written in 1981. our employees, to seek their According to Wikipedia a input, and to remain accessible in good times and bad. quality circle â&#x20AC;&#x153;is a volunteer group composed of workers For the ďŹ rst time in years our nation seems truly (or even students), who do the same or similar work, receptive to the idea of improved productivity, the creation usually under the leadership of their own supervisor (or of jobs, and investment in plant equipment. If we, as spring an elected team leader), who meet regularly in paid time manufacturing managers, can encourage this attitude who are trained to identify, analyze and solve work-related among our work force, it will help not only us but the problems and present their solutions to management and country as a whole. where possible implement the solutions themselves in Springmakers across the country can cite important order to improve the performance of the organization, manufacturing innovations and adaptations made by and motivate and enrich the work of employees. When inventive employees who cared about the work and matured, true quality circles become self-managing, having the product. Let's bring out this attitude in our workers gained the conďŹ dence of management.â&#x20AC;? Read more at http:// who are each different, unique and special. Some en.wikipedia.org/wiki/Quality_circle

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Family Feud: How Buy-Sell Agreements Can Save the Family Business

By Phillip M. Perry

H

ow many ways can a family business get into trouble?

Maybe an infinite number, if the stories told by family business consultants are any guide.

“In a non-family business you have rational problems and rational solutions,” says Don Schwerzler, an Atlanta-based family business counselor. “But in a family business you have rational problems and emotional solutions. Decisions are made not necessarily on what’s best for the business but what’s best for the family. That makes things difficult.”

The resulting disruptions can be costly. Schwerzler offered three illustrative scenarios that recently crossed his desk: • When one family member got a divorce, half of his stock went to an ex-spouse with no business experience.

To avoid a destructive addition to the management team the business had to buy out the ex-spouse—at a significantly higher price than the stock’s value.

• Shareholder siblings had such major disagreements that the business could not move forward. As a result the business needed to be liquidated.

• Three of four shareholder siblings wanted to borrow $500,000 to make business improvements. One shareholder balked at signing for the loan, so his stock had to be purchased by the other three—resulting in an expensive restructure of the strategic plan.

Save or Spend?

Conflicts often arise over financial strategies that impact individual pocketbooks. “Very often there is a tension between ‘savers’ and ‘spenders’ in a family,” says Schwerzler.

SPRINGS / Spring 2014 / 29

â&#x20AC;&#x153;Statistics show that about 30 percent of family businesses make it to the second generation,â&#x20AC;? says Schwerzler. â&#x20AC;&#x153;Twelve percent make it to the third generation, and only three to four percent to the fourth.â&#x20AC;?

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â&#x20AC;&#x153;That tension often forms the basis for disagreements on how the business should be run.â&#x20AC;?

All such conďŹ&#x201A;icts get bigger and scarier as the family gets larger. â&#x20AC;&#x153;Once you have a sibling partnership, things start getting complex,â&#x20AC;? says Schwerzler. â&#x20AC;&#x153;And a consortium of cousins gets very complex.â&#x20AC;?

Domestic battles often escalate and end up destroying the enterprise. Little wonder the family business survival rate could bear some improvement. â&#x20AC;&#x153;Statistics show that about 30 percent of family businesses make it to the second generation,â&#x20AC;? says Schwerzler. â&#x20AC;&#x153;Twelve percent make it to the third generation, and only three to four percent to the fourth.â&#x20AC;?

Be Prepared How can your own family business stay out of troubleâ&#x20AC;&#x201D;or at least minimize the damage when a disruptive event occurs? Consultants recommend drawing up what is called a â&#x20AC;&#x153;buy-sell agreement.â&#x20AC;? Also referred to as a â&#x20AC;&#x153;buyout agreement,â&#x20AC;? this document governs any situation that results from the death or departure of one of the organizationâ&#x20AC;&#x2122;s stockholders.

Among the questions answered by the buy-sell agreement are these: â&#x20AC;˘ What events will trigger a stock buyout? â&#x20AC;˘ Who has the right to purchase the stock of a departing owner? â&#x20AC;˘ How will the stock be valued? â&#x20AC;˘ What mechanism will be used to resolve disputes between family members?

Trying to answer such questions when a disruptive event hits is a recipe for disaster. The fraught emotions characteristic of such times can play a destructive role. â&#x20AC;&#x153;If you are trying to hammer out a buy-sell agreement while there is turmoil in relationships, you are working in a context which is not ideal,â&#x20AC;? says Kimberly M. Hanlon, a Minneapolis-based attorney active in business and estate planning matters.

The challenge is especially acute for a business undergoing diminished proďŹ tabilityâ&#x20AC;&#x201D;the very condition that can often catalyze family members to cash out. â&#x20AC;&#x153;When a business starts to go downhill family relationships often go downhill too,â&#x20AC;? says Hanlon. â&#x20AC;&#x153;People start blaming each other and it all goes south.â&#x20AC;?

The moral is clear: Smart family businesses plan ahead. â&#x20AC;&#x153;Think about the terms of a buy-sell agreement while relationships are still good among family members,â&#x20AC;? says Hanlon. â&#x20AC;&#x153;People who are level headed and thinking clearly tend to come up with fair and reasonable terms.â&#x20AC;?

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Maybe you already have a buy-sell agreement in place that you want to improve, or maybe you are ready to create one for the ďŹ rst time. In either case hereâ&#x20AC;&#x2122;s some help in the form of the most common questions such a document should answer:

©iStockphoto.com/DrAfter123

1

Who has the right of first refusal on a departing owner’s stock? In other words, what entity has the right to purchase the shares of a family member who dies, or who just wants to cash out? The answer, depending on the advice of your accountant and attorney, might be the other family business owners or the business itself. The idea here is to keep those shares from falling into the hands of outsiders who might lack operating expertise or who might not have the best interests of your business at heart.

Your document should also address the disposition of a family member’s stock when that individual gets divorced. Commonly the business will have a “call right” on those shares. A “call right” is a provision that empowers remaining family members to buy out the shares. Again, the idea is to keep the stock out of the hands of an individual who might not help the business grow.

2

How will the value of stock be determined?

When it comes time to buy out shares of a departing owner, some mutually agreeable method must be used to set a price on the shares. “Will the valuation be done by a single CPA experienced in valuations?” poses Hanlon. “Or will each person hire a different CPA for independent valuations, with the final value somewhere between the high and low extremes?”

Another approach is to specify a set share valuation formula—such as a given multiple of earnings—ahead of time. This can be less than ideal, though, since business and market conditions at the time of an owner’s departure may be different from those at the time a buy-sell agreement is written.

3

How will the stock purchase be funded? You must also plan for the funding of a buyout—perhaps a line of credit that can be tapped for the money.

Absent such a plan, the payments required to purchase the stock of a departing owner can be crippling. Your business may need to sell off some of its assets to raise cash, or borrow money which can have a negative impact on your line of credit.

This is a good spot to mention the value of life insurance as a source of funds to purchase the stock of a family member who dies. Valuable as it is, though, life insurance is not the final answer. The fact is that an owner can be incapacitated while still living. “With today’s modern medicine a person can have a stroke or a heart attack and continue to live,” notes Schwerzler.

An owner who is incapacitated in that way can no longer function in the business. Yet there is no life insurance money to buy out the individual’s stock at a time when large medical bills must be paid. “How will the business deal with that?” poses Schwerzler. “How will that exit from the business be exercised?” The wise family business will plan for alternative funding sources.

Get Some Help “Buy-sell agreements” can help resolve disruptive family business events that might otherwise erode the bottom line or even scuttle the enterprise. Because they deal with the uncomfortable nexus of personal and business goals, buy-sell agreements are difficult to write well. You may want to obtain the assistance of a skilled consultant specializing in the field.

“The very best way to find a consultant is through referrals,” says Kimberly M. Hanlon, a Minneapolis-based attorney active in business and estate planning matters. “Ask other business owners who they use, and if their consultants have been doing a good job.”

Select a consultant who has a lot of real-world experience creating buy-sell agreements for family businesses. “You want someone who has experiential learning,” says Hanlon. “Reading about the topic is not the same as experiencing the outcomes of different scenarios.”

Bear in mind, too, that you will be sharing a lot of personal, intimate family information with your advisor.

“When creating a buy-sell agreement, the journey is often more important than the destination,” says Don Schwerzler, an Atlanta-based family business counselor. That “journey” involves heartto-heart chats with family members. “When you start talking with family members you start uncovering potential problems. It’s important that all of the family relationships are understood before you write the buy-sell agreement so you don’t kill the goose that lays the golden egg.”

Successful counselors, then, are multi-talented, with an understanding of human as well as financial dynamics. The alternative is disjointed advice.

“A family business may have a CPA who is good at tax work but not so understanding of family relationships,” says Schwerzler. “So the owners end up going to a family therapist who may be good at the warm fuzzy stuff of human enterprise but may not understand the profit motive of a business. As a result the family gets conflicting advice.”

SPRINGS / Spring 2014 / 31

“I tell my clients not to have siblings or family members outside the business co-own the business with family members who run it.

It never works. You have tied them together financially, but they and their families have different goals, which inevitably breeds conflicts.”

Resolve Disputes Try as you might to avoid them, domestic squabbles are bound to occur. As an adjunct to your buy-sell agreement, write up a procedure that will be used to resolve disputes between family business owners. For some situations, arbitration or mediation may be the best course of action.

Alternatively, you may designate a board of nonfamily trustees who are empowered to cast the deciding votes on issues over which family members disagree.

Disputes often arise from the conflicting interests of siblings or other family members inside and outside the business. “I tell my clients not to have siblings or family members outside the business co-own the business with

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family members who run it,” says John J. Scroggin, partner in Atlanta-based Scroggin & Company, a law firm active in business and estate planning. “It never works. You have tied them together financially, but they and their families have different goals, which inevitably breeds conflicts.”

In a typical situation, says Scroggin, a family member inside the business is working 24/7 and resents the fact that a substantial part of the equity value he or she is building is going to other family members. Meanwhile, the outside siblings are upset because the family member operating the business is getting a "significant" salary and doesn't value the opinions of the non-working family owners.

Solution? “I suggest giving the non-business family members other assets,” says Scroggin. “Or set up a mechanism that gives them an income stream that is not connected to the family business.”

As the above comments suggest, varied skills are required to iron out family business wrinkles. Don’t try to write a buy-sell agreement without the assistance of experts, including your attorney and accountant. You may also want to utilize the services of a consultant who specializes in family business (See sidebar, “Get Some Help,” on page 31).

Revisit the Document With the passage of years personal and business goals change. Your buy-sell agreement needs to change with the times. “Don’t just create your buy-sell agreement and stick it in a drawer,” says Schwerzler. “Have a CPA or tax attorney review the document every two or three years.”

Modifications will need to reflect changes in family relationships and in tax laws.

Above all, avoid a temptation to procrastinate. “At small- and medium-sized businesses, creating a structure for transition is often shunted aside for lack of time,” says Schwerzler. That can be fatal for the future of the enterprise.

“Any family business should have a transition plan in place—and a buy-sell agreement is an important part of that plan.” Q

SPRINGS / Spring 2014 / 33

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International Spring Conference Planned for Tokyo in 2015

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SMI President Steve Moreland addressed the 7th annual European Spring Federation (ESF) Congress in Berlin on September 20, 2013.

committee of international springmakers met in Berlin last year for the purpose of planning the first International Conference on Spring Technologies (ICST).

The committee met on September 19, the day prior to the start of 7th annual European Spring Federation (ESF) Congress.

SMI was represented at the meeting by its president Steve Moreland, who is president and CEO of Automatic Spring Products Corporation in Grand Haven, Mich. Moreland also participated in the ESF Congress as a guest speaker.

The committee has announced that the inaugural ICST will be held in Tokyo on November 17, 2015.

Under a proposal put forth by the Japan Society of Spring Engineers (JSSE), the first International Committee for the International Conference on Spring Technologies was convened in Berlin. The meeting was held in conjunction with the Seventh ESF International Spring Congress.

In addition to Moreland, who represented the United States, committee members included: Takashi Goto (Japan), director of Chuo Spring; Dr. Chul-Rok Lim (Korea), director of Daewon Kang Up; and Wolfgang Hermann (Germany), managing Director of VDFI. Observers who attended the meeting were: Kanji Inoue, executive director of JSMA; Dr. Yoshihiro Watanabe, president of Toyoseiko; and Kim KiJeon, president of Daewon Europe.

Professor Wang Decheng, vice president of China Academy of Machinery Science and Technology and Adrian May, president of IST, are also the members of the committee but were unable to attend.

©iStockphoto.com/philpell

SPRINGS / Spring 2014 / 35

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In addition to coming up with the name, date and location for the ďŹ rst event, the committee decided that ICST should be held every four years. The second conference is scheduled for Europe in 2019, the third in Asia (probably China) in 2023, and the fourth in the U.S. in 2027.

The ICST will be accepting papers to be presented at the event. Abstracts for ICST will be due on May 16, 2015 and a ďŹ rst draft will be due on June 30, 2015. The ďŹ nal draft of all papers will be due on September 30, 2015.

Organizers say that engineers, researchers or anyone who is involved in spring or spring-related technologies from across the world would be expected to participate in the inaugural 2015 event. â&#x20AC;&#x153;As a member of this international committee I encourage our SMI members to save the date on their calendar," said Moreland. Q

36 / SPRINGS / Spring 2014

Those gathered for the ESF Congress included (l-to-r): Prof. Dr. Haverkamp, Steve Moreland (SMI President), Dr. Rudolf Muhr (Mubea and ESF/VDFI, President), Wolfgang Hermann (VDFI), Prof. Dr. Vladimir Kobelev (Mubea), Horst-Dieter Dannert (ESF, Secretary), Dr. Peter JanĂ&#x;en (Mittal), and Prof. Dr. Georgios Savaidis (Aristotle University of Thessaloniki).

©iStockphoto.com/Vonkara1

Ulbrich Marks a 90th Year Milestone

F

ounded in 1924 by Frederick Christian Ulbrich (Fred Sr.), Ulbrich Stainless Steels & Special Metals, Inc. was a small metal scrap processing center in Wallingford, Conn. In 2014, Ulbrich is marking its 90th anniversary with 700 employees, and 11 locations around the world, including its headquarters in North Haven, Conn. Today, the company remains family-owned, led by its chairman of the board, Fred Ulbrich Jr., the son of its founder, Fred Sr., and grandson, Chris Ulbrich, chief executive officer (CEO).

Ulbrich serves stainless steel and special metal markets with strip, flat wire, shaped wire, foil and ultralite foil, and sheet product forms. It has evolved into a worldwide, high quality precision metals manufacturing and distribution network.

“We have achieved this milestone as a result of the commitment, loyalty, knowledge and hard work of each

employee through the years,” said CEO Chris Ulbrich.

“We also extend sincere appreciation to all customers who have supported Ulbrich with orders and feedback.

Our dedicated customer base has always been key to the company’s success.”

When Fred Ulbrich Sr. founded Ulbrich in 1924, he could not have known that the company would endure through the Great Depression, diversify during two world wars, thrive during lunar exploration, and develop into an international business. Ulbrich supplies precision products at the international level for numerous critical applications in the medical, power generation, energy, automotive, aircraft, aerospace, petro chemical, oil and gas, industrial and consumer markets.

To celebrate its 90th year anniversary, Ulbrich is planning a series of commemorative events at all of its locations.

Ulbrich Timeline and Facts

1920s

increase inventories to generate new customers. During the same period because of his keen interest in metals, he attended evening classes in metallurgy at Yale University.

Early 1920s

1924 Fred Sr. founded the “Fred Ulbrich” company that would eventually become Ulbrich Stainless Steels & Special Metals, Inc.

1927 The first of many expansions by Ulbrich occurred when Fred Sr. doubled the square footage of his building from 600 to 1,200 sq. ft. To match his rapid building growth, Fred Sr. decided to

1929 During the Great Depression lasting 10 years, the demand for scrap declined, but the young Ulbrich made the best of it. Fred Sr. built another addition to the plant with the help of transients hopping off freight trains near the plant. He offered them hot meals and modest wages. Fred Sr. was devoted to getting his scrap yard in good shape. The little money he received was from an occasional scrap sale to the Ludlum Corporation and the unusual rental of his chicken coop to a local Wallingford business.

SPRINGS / Spring 2014 / 37

©iStockphoto.com/HultonArchive

The founder, a young Frederick Christian Ulbrich (Fred Sr.) worked as a salesman for U.S. Steel in Donora, Pa. and became aware of the steel industry’s need for good quality scrap. With just a few dollars in his pocket, he returned to his hometown of Wallingford, Conn. and opened a scrap yard. For several years he dismantled old cars and farm machinery, selling the scrap to steel mills and auto parts to auto repair shops.

1930s

1940s 1941

Ludlum Corporation merged with the Allegheny Corporation and Fred Sr. could no longer sell scrap directly to the merged company.

It became obvious that he had to pursue a new venture.

Ulbrich receives a contract to supply stainless steel knives for the U.S. Army mess kit.

1937

1942

The Wallingford and Meriden, Conn. area was the center of cutlery and ďŹ&#x201A;atware manufacturing. With his knowledge of stainless steel, Fred Sr., decided to manufacture a quality line of knives, forks and spoons. The items were inexpensive but the quality was excellent.

The Ulbrich Company fulďŹ lled contracts with on-time delivery and rapidly earned a place ahead of its competition. In addition, Fred Sr. was able to convert metal to the proper speciďŹ cations. Consequently, the company received additional contracts becoming a major supplier of knives during the war.

zimand/Shutterstock

1936

1939 Germany invaded Poland signaling the start of World War II.

1944 Fred Sr. became Warden of Wallingford, and one of his major accomplishments was paving the town roads with real asphalt.

1945

ŠiStockphoto.com/Ivan Cholakov

Ulbrich sponsored 50 male concentration camp victims that were displaced in Europe, offering employment while the U.S. government worked to have their families join them a year later.

Today Ulbrich still has workers who are related to these families employed at the company.

1946

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1949 Ulbrich had grown to four times its original size with a 2,500 square foot building.

ŠiStockphoto.com/Bart Sadowski

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After the war, the company expanded its tableware business offering two different products. One was the continuation of the lowcost, diner-grade tableware and the other a high-end line of stainless steel carving knives with Elkhorn handles that were sold in the ďŹ nest New York City department stores. Fred Sr. decided with his experience in military knives and cutlery, he would form a company that he called Victory Cutlery Company.

1950s 1950 While the business thrived, Fred Sr. saw an even better opportunity to supply stainless steel for a growing market of stainless steel applications. He had both the knowledge and the rolling mill to fill an important niche. The big melt shops were supplying 10,000 minimum coils, far too much for many small manufacturers. Fred Sr. bought the big coils and slit them into smaller lots and supplied the needed smaller quantities, as little as 10 pounds, to these small manufacturers.

business from Boeing, North American Aviation, Rohr and other subcontractors. Ulbrich was selected as a supplier to the Air Force’s B70 Bomber Project. This required the company to roll to as light as .001”in thickness.

1964 Fred Sr.’s third son, Daniel Ulbrich, entered the business and Ulbrich decided to hire its own sales force instead of depending on independent sales representatives.

1965

1955 Rerolling and slitting was the main focus of the Ulbrich Company’s enterprise. The cutlery business was sold and a powerful new Sendzimer rolling mill was purchased. The unique design of this mill enabled Ulbrich to roll to thicknesses unheard of at the time, down to .005” and at the same time they retained the desired flatness across the width of the strip.

1957 The response from customers was so favorable that Ulbrich soon invested in two-high rolling mills to handle the demand and the first non-family employees were hired.

Ulbrich became an important metal supplier to the U.S. troops in Vietnam. ©iStockphoto.com/Johncairns

1968 As customers began to respond to Ulbrich’s quality and versatility in the 1960s, it became obvious that the “Biggest Little Mill” needed a national distribution network. Ulbrich of Illinois became Ulbrich’s first stainless steel strip service center located in Alsip, Ill. and served the Midwest market.

1959 A new Sendzimer rolling mill was added and 12 new employees were hired. At this time Fred Sr.’s oldest son, Frederick C. Ulbrich, Jr., joins the company and sets up a sales department, alleviating the firm’s dependence on the service centers that had been selling their products. In addition Fred Sr.’s second son, Richard J. Ulbrich joined his father and brother in the business to focus on manufacturing and mill operations.

1960s 1960 Nickel-based alloys were added to the product mix as Ulbrich made a bid for new applications in the aircraft and aerospace industry. Inventories included 20 stainless alloys and over 40 different special metals which combined into a constant inventory of more than 5 million pounds.

1963 The company invested all of its profit into new laboratories and testing facilities in order to qualify as a supplier to Pratt & Whitney, located in Hartford. The approval opened up

SPRINGS / Spring 2014 / 39

1970s

1980s

1970

1980

Significant new equipment additions were made to improve quality and capability to roll to even thinner thicknesses. The company was renamed as Ulbrich Stainless Steels and Special Metals, Inc. with 60 employees working three shifts around the clock and over 50 alloys in the product line.

With Fred Jr. as CEO and his brother Dick as COO, the company set a target of expanding sales tenfold by 1990 and begin plans to reach that goal. They decided to reinvest all corporate profits into their capital expansion programs.

Neil Armstrong stepped out of the Apollo spacecraft, which was built using Ulbrich metal. The metal produced by Ulbrich helped make it possible to lift the 6,262,500 pound vehicle off the launch pad.

©iStockphoto.com/Michael Sick

1971

1982 A 100,000 sq. ft. building was erected at the main plant in Wallingford. A regional service center, Ulbrich of New England, was created. After a series of strategic meetings, “The Ulbrich Revolution” was underway, and the company embarked on an employee-wide effort emphasizing quality and customer commitment.

1974

1986

Ulbrich celebrated its 50th Anniversary.

Ulbrich opened Ulbrich of California, its fourth service center in Fresno, Calif., which would cover the Western and Southwestern markets.

1977 Chris Ulbrich, Fred Jr.’s son, joined the company full time after working part time, operating most of the machines in the plant.

1989 Ulbrich now serves a broad market that includes makers of cars, trucks, aircraft, aerospace vehicles, medical instrumentation, implantable parts, petrochemical and power generation equipment and many others.

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1990s 1990

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Ulbrich announced a company-wide quality improvement initiative. All employees began attending regular quality control meetings with equipment operators, staff, and managers where they were trained on the following four tenets: Total Customer Responsiveness, Total Company Involvement, Total Quality Commitment, and Continuous Professional Development.

capabilities from prototypes to production quantities.

An ISO Certified company with over 50 years of consistent quality and service providing precision fine wire with tight tolerance for a variety of industries.

1994 The quality improvement effort paid off as Ulbrich attained its ISO Quality Certification at the mill with all divisions following soon after.

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Titanium became an important part of the Ulbrich product offering. Also, Ulbrich expanded its distribution network with a

2007

facility called Ulbrinox in Queretaro, Mexico, and it purchased The Diversified Stainless Company with two locations in Toronto and Montreal, Canada.

Ulbrich Asia Metals (a service center and trading company) opens in Hong Kong to provide Ulbrich products to Asia.

1998

©iStockphoto.com/leungchopan

A third generation Ulbrich takes the helm with the appointment of Fred Jr.’s son, Chris Ulbrich, as president. The company reaches record sales.

2011 Ulbrich Solar Technologies prepares to open another manufacturing location for producing PV Ribbon in Hillsboro, Ore.

1999 Ulbrich marks its 75th anniversary with over 600 employees and facilities in four countries. The company was now buying over 140 different alloys from various melting sources all over the world to maintain its commitment for wide product choice and quick deliveries.

2012 Ulbrich continues into the fourth family generation with 700 employees, and 11 locations. The company moves into a new corporate headquarters at 153 Washington Ave, North Haven, Conn.

2000 to present

2014 Ulbrich celebrates its 90th anniversary with a series of commemorative events planned at all locations during the year. Q

2001 Ulbrich acquires a flat wire division in South Carolina that they name Ulbrich Precision Flat Wire.

2002 ©iStockphoto.com/zorazhuang

Ulbrich opens a sales office in Shanghai, China and also opens Ulbrich Precision Metals, Ltd. in Galway, Ireland to produce and distribute fine wire to the medical market in the EU.

2005 Ulbrich increases capacity to produce wire called PV Ribbon that is used in the production of solar panels. The Ulbrich Special Wire Group opens a PV Ribbon facility in Austria.

2006 Ulbrich expands it Wallingford, Conn. rolling mill facility by 12,000 sq. ft. and enters into the Ultra Lite Foil business improving it thickness capability to less than .0004”.

SPRINGS / Spring 2014 / 41

Mexico’s Growing Metal Class How Keats Manufacturing Capitalized on Increased Auto Production South of the Border and Used NAFTA to its Advantage

By Peter Buxbaum Photos by Fernie Castillo

(Editor’s note: The following article on SMI member firm, Keats Manufacturing, originally appeared in the February 2014 edition of Global Trade Magazine and is used by permission. Visit http://globaltrademag.com.)

42 / SPRINGS / Spring 2014

“We already had $1 million worth of work in Mexico in the early 1990s,” says Matt Keats, president of Keats Southwest. “My brother and I were making sales south of the border and we saw a boom of assembly plants and we said, ‘Wow, there is a lot of potential down here.’”

Matt Keats (left) and his nephew, Brad Keats, inside the plant at Keats Southwest in El Paso, Texas.

F

or Keats Manufacturing Inc., opening a facility in El Paso, Texas, paid off in a big way. Founded in 1958 near Chicago to supply precision metal stampings, wire forms and assemblies to the electronics, medical, consumer goods and automotive industries, the company moved near the Mexican border in 1994 to take advantage of growing manufacturing activity south of the border and increased United States-Mexico trade under the North American Free Trade Agreement (NAFTA).

Starting in a 5,000-square-foot rented warehouse, Keats Southwest—the designation of the company’s expansion— has since moved into a custom-built 30,000-square-foot facility and has seen its business grow from $1 million to $10 million per year. Just about everything Keats produces in El Paso is sold to assembly plants in Mexico.

“We already had $1 million worth of work in Mexico in the early 1990s,” says Matt Keats, president of Keats Southwest. “My brother and I were making sales south of the border and we saw a boom of assembly plants and we said, ‘Wow, there is a lot of potential down here.’” Matt’s

brother, Wade Keats, heads Keats Manufacturing Inc., the original Keats plant in Wheeling, Ill. Keats Southwest operates a set of sophisticated equipment used for metal stamping, wire forming and punch pressing that enables the company to supply a diverse array of parts for manufactured products custom designed for specific applications. “Not a lot of companies have all of these capabilities,” says Matt Keats. “When we first came to El Paso, no one else was doing what we were doing.”

Keats’ machines produce parts that are incorporated into manufactured products by companies like Honeywell, Siemens, Delphi, Molex, AO Smith, Cooper Bussmann, White Rogers, Scientific Atlanta and Emerson. “We make 25 to 30 parts for Chamberlain garage door openers alone,” says Brad Keats, an account executive at the company and Matt’s nephew.

Keats Southwest has benefited from the large-scale growth in the manufacturing sector in Mexico, some of which has come at China’s expense. “It has become more cost effective to move assembly operations from Asia to Mexico,” says Brad

SPRINGS / Spring 2014 / 43

“With fuel costs rising and with the sheer distance between the U.S. and Asia, it is making a lot more sense to manufacture on this continent.

We’ve seen a lot of our customers move entire assembly lines from China to Mexico.”

Keats. “With fuel costs rising and with the sheer distance between the U.S. and Asia, it is making a lot more sense to manufacture on this continent. We’ve seen a lot of our customers move entire assembly lines from China to Mexico.”

In recent years, Mexico has become a manufacturing hub for many automotive and aerospace manufacturers.

Keats Southwest has benefited from NAFTA, thanks to the agreement’s provisions that U.S.- and Mexico-origin products can move back and forth between the two countries duty free. At the same time, because of the way Mexican assembly plants operate, the company avoids the hassles of shipping its products across the border.

“Our customers pick up orders at our plant or we deliver them to their docks in El Paso,” says Brad Keats.

“The customers handle the logistics of the border crossing.”

“We aren’t involved with any export paperwork or duties, which is kind of nice,” Matt Keats adds. “We would need a bigger staff if we had to handle all of that.”

There are a few reasons why logistics are handled on the Texas side of the border and why Keats Southwest finds it beneficial to remain in El Paso, rather than relocating to Mexico.

“Logistics is huge in El Paso,” says Robert Queen, director of the U.S. Export Assistance Center, a unit of the U.S. Department of Commerce’s Commercial Service in El Paso. “There are a tremendous number of logistics companies and customs brokers located here, and these

44 / SPRINGS / Spring 2014

logistics companies support a large percentage of U.S. exports to Mexico. We are talking about 3,000 truckloads passing between El Paso and Juarez every day across the border.”

There is also a great deal of warehousing space available in El Paso. “There are large spaces available for sale or lease,” says Queen. “There are small spaces and sharing opportunities and plenty of real estate brokers lined up to help in this area. Warehousing in El Paso is much cheaper than on the Mexican side. That’s why a lot of inventory is kept in El Paso while in Mexico they concentrate on assembly.”

At the same time it is advantageous for Keats to manufacture in El Paso. “There is a reason why we are on the border,” says Matt Keats. “It makes for a huge reduction in freight costs for our customers. We are shipping metal

and that gets heavy. The freight costs would add up if our customers were buying from Connecticut or Chicago.”

Matt Keats says the U.S. side of the border is also better for recruiting the highly skilled workers required to operate Keats’ more technical machinery. “It would be difficult to locate people with the right level of skill on the Mexican side of the border,” he says.

In fact, when Keats Southwest first opened shop, the plant was manned by technicians who had relocated from the Illinois facility. “We didn’t move to El Paso for cheaper labor,” Matt Keats says. “When we first opened in 1994, I brought six guys from Chicago because they knew the equipment and the business, which is so rare down here.

We had to convince people to come down with us and the

SPRINGS / Spring 2014 / 45

way we did that was to give them incentives. If we had put an ad in the newspaper we wouldn’t have gotten anyone.”

One of the keys to successfully supplying assembly plants in Mexico is to adhere to and become certified under international quality standards. “Mexican manufacturing pla nt s a re now dema nd i ng much h ig her qua lit y standards,” says Queen. “All Mexican manufacturers need to trace back where their materials came from and who has handled them. ISO 9000 is the general quality standard for manufacturing and there are other, more specific standards for the aviation and automotive industries.”

Keats Southwest follows and is accredited through two sets of quality standards: ISO 9001:2009 and TS16149. The ISO standard requires a detailed system of documentation so that parts can be traced in the case of failure. TS16149 is a more rigorous standard, according to Brad Keats, which is applicable specifically to automotive manufacturing.

The company is also working toward certification under ISO 14001, an environmental standard.

“That is all about setting goals for reducing our environmental impact,” says Brad Keats. “In our case, it means reducing the amount of lubricant-oil waste we produce.”

Certification means undergoing annual audits under both sets of standards, a process that takes five days for each. “There hasn’t been an audit where we haven’t been

asked to make corrective actions,” Brad Keats says. “But it’s all about becoming a better company, making better products, delivering on time all the time, and making sure that there is no chance of any defective products going out the door.”

The company also has to ensure that its suppliers are ISO certified. “We can’t even look at them unless they are certified under ISO 9001 at a minimum,” says Brad Keats.

Although Keats Southwest is not subject to the documentation requirements of NAFTA—since it delivers on the U.S. side of the border—Brad Keats believes the trade agreement has made a positive difference in how the company operates. The company’s Mexican customers demand frequent, small, just-in-time delivery of product, not only for the sake of efficiency but also because Mexican law taxes inventory if it is stored too long.

“Instead of releasing parts monthly,” Brad Keats says, “we are doing it weekly or even daily. This is making us a leaner company by ordering smaller quantities of materials from our suppliers. We used to make bulk purchases of supplies to get the price down. Now we are asking for just-in-time deliveries, but we can negotiate a good price by issuing a blanket purchase order.”

One way Keats Southwest develops new customers is by attending B2B get-togethers sponsored by the local U.S.

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Although Keats Southwest is not subject to the documentation requirements of NAFTA — since it delivers on the U.S. side of the border — Brad Keats believes the trade agreement has made a positive difference in how the company operates.

Export Assistance Center. The center also offers a Gold Key program which sets up individual U.S. companies with several potential Mexican customers, for a fee.

“We have found the B2Bs to be extremely successful,” says Matt Keats. “We used to do two or three trade shows a year but they are going by the wayside in our industry.

They don’t seem to draw decision makers anymore. We are putting more money into our website and that is where most of our inquiries are being generated.”

But Matt Keats believes that getting face time with potential customers is still the best way to present the unique capabilities of his company, and that’s where the B2B luncheons come in. “We landed Honeywell as brand new account after meeting them at a B2B,” says Matt Keats. “It took close to a year to get an order from them. They did their own quality assessment of our plant even though we are ISO certified.”

Honeywell is just the latest achievement in an ongoing success saga for Keats Southwest. “We went from six employees and six production machines to 50 employees and 50 machines running on three shifts,” says Matt Keats. “We went from one million to 10 million dollars in sales. I’d say coming to El Paso was a great move. It was the best move we ever made.” Q

SPRINGS / Spring 2014 / 47

SMI Celebrates 81st Annual Meeting in Hawaii

48 / SPRINGS / Spring 2014

T

he Hawa iia n isla nd of Oa hu ser ved a s t he panoramic backdrop for SMI’s 81st annual meeting at the JW Marriott Ihilani Ko Olina Resort & Spa from February 8-11, 2014. While the business of running the association took place, abundant optional activities were available for SMI members to enjoy, such as whale watching and a trip to historic Pearl Harbor.

The meeting marked a beginning for Hap Porter of SEI MetalTek, as he was installed as SMI’s 34th president at a black tie optional closing dinner on Tuesday, February 11.

“It is with a great sense of humility and honor that I accepted the board of directors vote earlier today to be the president of your Institute for the next two years,” said Porter in his opening remarks.

The closing dinner also served as a transition for Steve Moreland of Automatic Spring Products, as his two-year term as president ended. He will now serve as immediate past president.

The rest of SMI’s new executive committee are Mike Betts, Betts Company, vice president, Steve Kempf, Lee Spring, secretary/treasurer and Bert Goering, Precision Coil Spring Co., at large.

SMI’s annual meeting kicked off on Saturday, February 8 as the SMI board and committees met in regular session.

Much of the work focused on SMI’s new strategic plan which calls for expanded technical training and a North American trade show.

Dan Sceli of Peterson Spring is overseeing the newly formed Trade Show committee. Sceli reported that SMI has hired a professional management firm to oversee the trade show which is scheduled to take place in the fall of 2015.

Details on the location, date and subject of the technical symposium are currently being formulated.

Jim Wood, who has served as SMI’s regulatory compliance consultant, was recognized for his 22 years of service to SMI. Wood has announced his retirement and will continue to work for SMI until a plan is in place to replace his services.

SPRINGS / Spring 2014 / 49

Leadership, Economics and Terrorism Education is always an important component to an SMI annual meeting and the Hawaii meeting was no exception.

A broad range of topics were covered from leadership to the state of the economy to a glimpse inside the world of terrorism.

David Wheatley, principal of Humanergy, addressed the topic of leadership. Wheatley said, “Leadership is about the choices you make that have an impact on or influence other people.”

Wheatley talked about the four choices of leadership.

He said destructive leaders are all about getting what they want, even if it hurts others. Compliant leadership involves doing what is easiest for you. He explained that productive leaders help the team succeed, while transformative leaders ensure that the team is successful. Wheatley

50 / SPRINGS / Spring 2014

provided plenty of concrete examples of how current and historical leaders fit into the various categories.

Providing SMI attendees with a chart called the “50 Dos for Everyday Leadership,” Wheatley challenged the group to return to their workplace with a focus on implementing one of the “Dos” for the next 90 days.

Next up was Dr. Nariman Behravesh, chief economist of IHS and author of “Spin-Free Economics: A No-Nonsense, Nonpartisan Guide to Today's Global Economic Debates.”

Dr. Behravesh focused his thoughts on the state of the world economy, declaring that “overall global growth in 2014 would be better than 2013.”

He told SMI attendees that the competitive landscape is changing, in favor of North America pointing to the U.S. energy boom as a bright spot.

Dr. Behravesh said low energy prices are a competitive “st imulus” for Nor t h A merica. He believes ot her commodity prices, including steel, are not a serious threat.

“Inflation and interest rates will remain low for at least another year,” he explained. “Despite recent increases relative to emerging market currencies, the U.S. dollar continues to provide a competitive advantage.”

The final educational session was a presentation by Colonel David Hunt, who has over 29 years of military experience, including extensive operational experience in special operations, counter terrorism and intelligence operations. Colonel Hunt is best known as a FOX News war and terrorism expert.

Colonel Hunt shared many stories from his military career and presented the challenges of terrorism in a post-9/11 world.

SPRINGS / Spring 2014 / 51

Giving Back SMI wishes to thank the many sponsors who made the 80th annual meeting a success.

Platinum Sponsors – Amstek Metal, Gibbs Wire and Steel, Industrial Steel and Wire, JN Machinery, SWPC, Suzuki Garphyttan, The InterWire Group, WAFIOS and Zapp Precision Strip.

Gold Sponsor – United Wire Company Bronze Sponsors – NIMSCO, and OMCG North America The 2015 SMI annual meeting will be held in Orlando, April 11-15 at the Four Seasons Resort at Walt Disney World. Q

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Springmaker Spotlight

By Gary McCoy

Hap with his wife Jen, daughter Laurent, and son Gordon.

Former Rower Helps Steer SMI Into New Waters A Profile of Hap Porter, SMI's 34th President

A

s the newest leader of SMI, Henry K. “Hap” Porter, III cites several life experiences that helped shape who he is as a person and as a leader. One of those formative events was spending nine years involved in the sport of rowing at the high school, college and international level.

SPRINGS / Spring 2014 / 55

“I am not a big believer that success in sports means anything about success later in life,” said Porter in his February 11 acceptance speech at SMI’s 81st Annual Meeting in Hawaii. “But for me, the lesson of crew was more general,” explained Porter, “it is an endeavor where the success of the group, in my case an eight-man boat, requires near total-synchronization of effort, exerted at an unspoken level, learned through intense practice, and implemented under the most stressful competitive conditions where there is scant room for error.”

Porter had the good fortune of being a member of the Harvard University heavyweight crew that was led by the school’s legendary coach Harry Parker. Parker, who passed away last year, coached the team for 53 years, putting together 22 undefeated regular seasons, claiming 16 national championships and going 44-7 in the HarvardYale Regatta.

Porter said the people he rowed with in college are still among his best friends.

“Working together under those circumstances, and realizing what it takes to succeed, defines the concept of teamwork in a profound way,” said Porter.

Whether leading SMI as its 34th president or as the president and chief operating officer (COO) of SEI MetalTek, Porter is all about teamwork.

Hap rowing with the Harvard heavyweight crew in 1979.

Hap is fifth from the right.

Listening and Learning Porter said the other experience that heavily influenced him was earning his graduate business degree at Harvard Business School. For two years and four semesters, he was immersed in nearly 800 case studies.

“What did I learn from evaluating all those screwed up companies?” asked Porter during his acceptance speech.

He said with a laugh, “I have no idea, it was a long time ago.”

Porter said what he remembered was more about what he learned about himself and the process of management.

“I came to understand that I could spend several hours reading a case, dissecting the business problem at hand, and developing a killer solution,” explained Porter. “But then I’d go to class the next day and hear 89 other ways of looking at the problem and charting a way through it that I never considered.”

He said that after a while the concept began to sink in.

“When you are in a situation with a bunch of smart and experienced people, who are willing to share their expertise, it’s a great opportunity to listen and learn.”

The Strategic Path Forward As Porter sets out to lead SMI, he has the opportunity to “listen and learn” from the members of the association who have spoken loud and clear regarding the organization’s strategic plan that was adopted last fall by the SMI board.

The plan lays out two primary objectives: 1) Improve the collection and dissemination of technical information and 2) Develop a new trade show.

“The next 18 months are all about the trade show,” explained Porter, “and frankly that’s absolutely the way it should be. I think it’s pretty clear from the strategic planning process we went through in Tucson in the spring of 2013 and finalized and ratified at the Las Vegas business meeting in the fall that this is what the membership wants us do.”

In his acceptance speech in Hawaii, Porter challenged members to get involved so the new trade show and technical symposium are a success.

For Porter, getting involved in helping lead SMI started more than 25 years ago. He started by attending SMI conventions and later volunteering to serve on several committees, including Finance and as chair of the Benchmarking committee. In fact, he was known as the “king of benchmarking.” He’s also served on the SMI board and executive committee.

56 / SPRINGS / Spring 2014

“I am not a big believer that success in sports means anything about success later in life,” said Porter. “But for me, the lesson of crew was more general,” explained Porter, “it is an endeavor where the success of the group, in my case an eight-man boat, requires near total-synchronization of effort, exerted at an unspoken level, learned through intense practice, and implemented under the most stressful competitive conditions where there is scant room for error.”

Porter was also SMI’s representative to the now defunct Metalworking Manufacturers Coalition (MMC) that was formed in 2007 by five trade associations to offer health insurance to their combined membership of 1,600 member firms representing 125,000 employees.

While the idea sounded good at the time, the program failed miserably, covering less than 300 employees. Porter said the plan was fatally flawed. “It had high deductibles, very high premiums, and had limited physician and hospital networks,” explained Porter. It was a preview, he says, of what would become the Affordable Care Act. Porter told the story during his acceptance speech not to bash the federal plan, but to promote a 401k plan through ING and Morningstar that is being marketed to SMI members through CPS Financial.

“This product is not fatally flawed, and I am going to be relentless in promoting it to you all for one simple reason,” explained Porter, “our company switched to the program, and over the first two years, we are saving our plan participants 60 percent annually on the fees they are paying.”

In his typical dry sense of humor, Porter points out that SEI MetalTek’s prior plan was “not some sweetheart deal with high fees that padded the pocket of a brother-in-law or country club golfing buddy.”

He went on to say, “Why would you not consider switching to a program that would save your employees

60 percent on the fees they are paying to invest and grow their retirement savings?”

From Hand Tools to Springs Porter comes to leadership naturally out of what he calls a “family of manufacturers.”

With the invention of the compound leverage bolt cutter in 1880, Porter’s great-grandfather started H.K. Porter, Incorporated that same year. Porter’s grandfather and father went on to run H.K. Porter until it was sold to Cooper Industries in 1986.

Association and industry service were destined for Porter given the fact that both his grandfather and father served a term as president of the Hand Tools Institute.

Porter thought his career path would end at the family business, but fate had a different plan that eventually brought him to the spring and metal working industry.

Most of Porter’s life has been spent in New England, except for a short stint in the Midwest. After graduating from Harvard in 1979 with a degree in government and political science, he went to work for Inland Steel at their headquarters in downtown Chicago.

“I had an inkling that I would eventually come to work for the family business, but I decided I would get out into the ‘real world’ first and work for a little while outside the confines of the family operation,” said Porter.

It was a year after graduation in the summer of 1980 that he married Jennifer Newkirk in Chicago. Porter had met Jen during a college mixer in 1976. She was a student at Boston University and Porter jokes with her to this day that “she came up to Harvard Square looking for a Harvard man.

“We have loved and stood by each other for 33 years of marriage,” Porter said.

After two years of working for Inland Steel, Porter went to work at H.K. Porter in 1981 as a salesman based out of Chicago.

He called on customers in northern Illinois and Wisconsin.

“It was a good experience to work as a salesman, because I got to experience the realities of the marketplace, in a sense that the company struggled to meet deliveries and fill demand.”

Porter moved back to Boston to work at H.K. Porter’s headquarters in Somerville, Mass., before he was accepted at Harvard Business School for the school’s two year MBA program. After receiving his MBA in 1985, he went back to the family business for a short time before the sale in 1986.

SPRINGS / Spring 2014 / 57

Not one to be found on the golf course, Porter describes himself as a “homebody.” He says one of his primary hobbies is serving as the “muscle for Jen’s beloved hobby of gardening and yard work. Oftentimes you will see me in the yard sweating profusely. She has me moving rocks and piles of dirt and gravel and things like that.”

A couple of side notes on his Harvard education: Just one week into his graduate school experience, he wanted to quit. “Fortunately for me, Jen steadfastly refused to hear me when I told her I was going to quit business school after one week, that it was not for me,” said Porter.

As he said in his SMI acceptance speech regarding Jen, “Thank you, honey, for at least that one time, ignoring what I was saying.”

The other part about Harvard for Porter is downplaying it.

“I don’t talk about the Harvard thing because some people react to it in a funny way,” related Porter. After the family business was sold, Porter found his way to the spring industry via Hardware Products. The late George Underwood, the owner of Hardware Products at the time, was president of SMI from 1979 to 1981. Porter’s father knew Underwood, and Underwood was a member of the board of directors of H.K. Porter, a publicly traded company. “So he was intimately aware that H.K. Porter was being sold,” explained Porter.

So in the spring of 1987 Porter left the hand tool industry and came to work in the spring industry as the general manager of Hardware Products.

“Over the next couple of years, George and I had discussions to see if there was some way we could structure a transaction, so I could buy Hardware Products,” said Porter.

No deal could be struck and Porter admitted that the “biggest problem was that I had no money.”

First SMI Meeting “Jen and I went to our first SMI meeting in the spring of 1988 in San Francisco and that’s where we met Kevin and Beth Grace and got introduced to the industry,” related Porter. “I guess from my standpoint that was a real milestone for us. We have enjoyed their friendship ever since.”

58 / SPRINGS / Spring 2014

Due to his involvement with the a sso c i at ion, Under wood wa s ver y supportive of Porter’s participation in SMI meetings. “I will forever be grateful to George for introducing me to this industry.”

In December of 1990 it looked like Underwood had lined up a buyer for Ha rdwa re Products. “The projected closing was in a few months and I was soon to be out of work.”

Meanwhile, Jen was pregnant with the couple’s second child, Gordon.

“I realized then that, when she was pregnant with our daughter, Laurent, in the winter of 1986, H.K. Porter was sold and I was about to lose my job.”

With Jen seven months pregnant and the sale of Hardware Products imminent, Porter remembers telling Jen, “No more kids, because every time we’re about to have a kid I lose my job.”

Ultimately the 1990 sale fell through and it wasn’t until the next year when Kevin and John Grace bought Hardware Products with an investment group out of Houston called The Catalyst Group. The sale made it possible for Porter to continue as president of the company.

In 1994 The Catalyst Group sold its stake in Hardware Products so it was one hundred percent owned by the Graces; Porter retained a small ownership interest.

Kevin Grace asked Porter in 1998 to become president and COO of their holding company, SEI MetalTek. “So I stepped out of the role as president of Hardware Products and Ted White took over.

“Ted and I have always had a great work relationship, starting in 1987 when I came to work at Hardware Products,” explained Porter. “Ted came to Hardware in 1974, so he was an old-timer by the time I showed up. I think everyone at SMI who knows Ted knows he’s a really hardworking, knowledgeable guy about springs and fun to work with.”

Buy, Build and Hold Though SEI MetalTek is based out of Dallas, Porter maintains his office within the confines of Hardware Products, something that Porter is grateful for. “I’ve been very fortunate to be able to have such a nice relationship with someone that I’m with almost every day,” said Porter of his relationship with White.

Porter has also enjoyed a great relationship with the Grace family. “Kevin, his sister, Cindy, and his brother, Bob, have been outstanding business partners for me. Their

Many of the members of the SEI MetalTek "family" traveled to Hawaii to help Hap Porter celebrate his installation as SMI's 34th president.

parents, John and Diane, were two of the most gracious and welcoming people we have ever known.”

Kevin Grace says that Porter has always been an inclusive leader. “He is confident in his own decision making, but seeks out the input and advice of others when formulating his responses.”

Porter has responsibility for overseeing the operations of SEI MetalTek that are scattered between the Northeast and Texas. In addition to Hardware Products, SEI MetalTek operates SEI MetalForms, Spring Engineers of Houston, Colonial Spring, Hopwood Globe and John M. Dean. SEI MetalTek has more than 160 employees and the company has what Porter describes as a “buy, build and hold” strategy when it comes to the companies they have acquired.

The core of SEI MetalTek’s capabilities are stock and custom springs, wireforms, metal stampings and assemblies, production machinery, laser-cut metal products, pins and pointed wire products and custom screw machine production. They serve many different industries, including: electrical, industrial, energy, aerospace, automotive, textile, munitions, medical, and sporting and hobbyist.

Though Porter did not end up being part of his own family’s business, he’s enjoyed being part of the SEI

MetalTek “family” for over 20 years. Grace says Porter is well respected by everyone at SEI MetalTek. “All of our employees know and admire Hap,” related Grace, “they trust that he will make decisions that are in their best interests and that of the company.”

Grateful to be associated with the Grace family, Porter says he has a lot of respect for family businesses and “for their ability to juggle all that goes into running a successful enterprise.”

Parallel Lives Working with Porter has gone beyond just being in business together, says Grace. “Hap and I live a parallel life. We are the same age and have children of the same age and gender. It has been a real pleasure to see our families grow up in the business,” said Grace. “It would be great to see them work together at some point.”

Porter says Grace gives him much grief about being a “Yankee.” So in his acceptance speech he poked fun and expressed thanks to the “Texan” for putting up with his New England ways.

In addition to Kevin and Beth Grace, and Bob Grace, Porter was grateful to have in Hawaii five individuals he works closely with at SEI MetalTek to help celebrate his

SPRINGS / Spring 2014 / 59

“SMI has put itself on a path of some real exciting challenges and opportunities,” said Porter. “I'm honored to have the chance to be president for the next two years as we pursue them.”

inauguration as SMI president. Each one of the division presidents who were present for the event dressed up in tuxedoes, including Bill Lathrop of Colonial Spring, Brian Duemling of John M. Dean, Patrick Barr of Spring Engineers of Houston, Mike Drinkwater of SEI MetalForms and Hopwood Globe, and Ted White of Hardware Products.

“These fellas are a joy to work with, and our common goal—of making our companies successful—has helped us manage through the ups and downs of recent years,” said Porter, “and I tip my hat to each of them.”

Porter was also grateful to have his entire family with him in Hawaii, including his wife, Jen, along with their daughter, Laurent, and son, Gordon.

Laurent works for White at Hardware Products as the company’s accountant and bookkeeper, after previously working in purchasing and customer service. She had worked at Hardware Products during high school and college.

Meanwhile, Gordon works as associate account executive for Bliss Integrated Communications, a business

to business marketing communication agency, working out of the company’s New York City office.

Porter is the youngest of five children; he has three sisters and a brother. Porter says he’s the only one who “got the manufacturing bug.”

Not one to be found on the golf course, Porter describes himself as a “homebody.” He says one of his primary hobbies is serving as the “muscle for Jen’s beloved hobby of gardening and yard work. Oftentimes you will see me in the yard sweating profusely. She has me moving rocks and piles of dirt and gravel and things like that.”

The Porters' house is not on the coast in Massachusetts, but the community they live in is. As a result, Porter can often be found on weekends down at the beach around sunrise walking his dog and joining a group of similar people who walk their dogs there.

With his days of rowing behind him, Porter works out on a regular basis to stay in shape.

“I certainly don’t row anymore,” said Porter. “The wear and tear and the time requirement is something that is long in my past, but I do try and stay healthy and as active as I can.”

Into the Future Porter is excited to take the reins of SMI. “SMI has put itself on a path of some real exciting challenges and opportunities,” said Porter. “I’m honored to have the chance to be president for the next two years as we pursue them.”

And hailing back to his days on the rowing team, Porter is quite clear that the success of SMI is going to take everyone’s efforts.

“The success of SMI in achieving its goals is going to be entirely dependent upon the membership’s degree of involvement and their interest in seeing SMI succeed.”

With all the challenges and excitement at this juncture of the organization’s history, Porter has a very high expectation that SMI’s strategic plan is going to succeed. Q Gary McCoy is the managing editor of Springs magazine and the president of Fairway Communications. Readers may contact him by phone at 847-622-7228 or email gmccoy@fairwaycommunications.com.

60 / SPRINGS / Spring 2014

Book Corner ©iStockphoto.com/kertlis

Stop Talking, Start Communicating: Counterintuitive Secrets to Success in Business and in Life “I wrote ‘Stop Talking, Start Communicating’ because I’m worried that meaningf ul communication—the lifeblood of civilization and the backbone of successful work relationships—is at risk, threatened by the avalanche of quick, cheap, and easy communication made possible by the digital revolution. We are communicating more, but not better.”

Those ominous words were written by Geoffrey Tumlin, the author of “Stop Talking, Start Communicating.”

Tumlin, a communications consultant by trade, makes a strong argument that our society’s increasing reliance on, and preference for, communicating via email, text and social media, is eroding our ability to engage in more meaningful communications. He describes some of these more meaningful communication tasks as “arguing sensibly, resolving conflict, persuading others, bargaining, and providing emotional support.”

Tu m l i n r ig ht ly obser ves some of ou r c u r rent communications flaws. “The steady erosion of our higherorder communication abilities results in more error-prone interactions and chronic misunderstandings that multiply our communication problems, degrade our productivity, and diminish our quality of life.”

The book is full of advice with the goal of improving conversations. The chapter titles are meant to entertain and draw you into the counterintuitive advice Tumlin offers. Here’s a few examples: • Play Dumb • Be Boring • Don't Solve Problems • Don't Be Yourself • Stop Talking The book is a great thought stimulator, especially for those who work in communications. The author makes a great point about not trying to solve every problem immediately.

“Our quick, cheap and easy digital devices allow us to have far too many unnecessary collaboration, and get our hands (and thumbs) on too many irrelevant issues.

That’s why smart communicators, like smart doctors, have a good triage system—its categories are Now, Delay and Avoid—to focus on the most pressing issues, while delaying or ignoring less important matters.”

If communications could improve in your business this is a useful tool to help you get started.

The book was published by McGraw-Hill in August 2013 and sells at a suggested retail price of $20. It is available at the author’s website, www.tumlin.com or through Amazon, IndieBound or Barnes & Noble. Q 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 / Spring 2014 / 61

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Inside SMI ©iStockphoto.com/seraficus

SMI Launches Metal Engineering eXpo In response to a strategic planning process that SMI undertook and adopted in 2013, the association has announced the launch of the SMI Metal Engineering eXpo™ at the Charlotte Convention Center in Charlotte, N.C. The inaugural event will take place October 20-22, 2015.

The SMI Metal Engineering eXpo is open to all members of the North American spring and wire forming industry. It will include a technical sy mposiu m for i nd iv idua ls a nd companies to share their knowledge and expertise on a variety of topics

surrounding the design, engineering and production of springs, wire forms and stampings. The show will also include vendors displaying a vast array of machinery to produce these items along with exhibitors representing all facets of manufacturing from i nsu ra nce to mach i ner y to ER P systems and more.

T h e n e x t i s s u e o f Sp r i n g s will include more details on SMI Met a l E n g i ne e r i n g eXpo. Vi sit t he new show website at w w w. metalengineeringexpo.org.

SMI Sponsors Reception in Conjunction with wire 2014

Hosted by SMI president Hap Porter, SMI sponsored a cocktail r e cept ion du r i ng w i r e 2014 i n Düsseldorf, Germany at the Radisson Blu Scandinavia. The hotel served as the headquarters hotel for SMI members who participated in wire

2014 which was held in conjunction with Tube 2014 from April 7-11 at the Düsseldorf Exhibition Centre.

Porter also represented SMI at a dinner hosted by the European Spring Federation (ESF).

Right: SMI president Hap Porter addresses the ESF meeting during wire 2014.

Far Right: Michel Fauconnier, new ESF president (with microphone), is pictured with the new ESF general secretary, Wolfgang Hermann.

SPRINGS / Spring 2014 / 63

Inside SMI

SMI Mourns Loss of Member It is with regret that Springs reports the death of Douglas J. Stearns, 57, of Fostoria, Ohio on January 12, 2014. He was born April 2, 1956, in Fostoria, to Paul Gwilym “Bill” and Judith Ann (Hill) Stearns.

Stearns married Beverly Jayne Freischlag on July 10, 1981, in Bowling Green, Ohio.

In addition to his wife, Stearns is survived by his mother, Judith Stearns, of Fostoria; a son, Major Charles “Chuck” E. Stearns, of Ft. Bragg, N.C.; brothers, Jeff Stearns, Gary (Bev) Stearns and Thomas (Jennie) Stearns, all of Fostoria; and several loving nieces and nephews. He was preceded in death by his father.

Stearns was a 1974 graduate of Fostoria High School and received a B.S. degree from SUNY at Cortland.

He was the vice president of sales and marketing for The Seneca Wire Group, Inc. for the past 30 years. He was also a member of Valley Creek Lodge, University Club, NRA and Rocky Mountain Elk Foundation.

As a lifetime farmer with his brothers, Stearns always had a connection with the outdoors. He carried those core values into his personal life, as his yard was a work of art and he took great pride in its appearance.

The Cleveland Indians were always on the radio in his garage, as he was the eternal optimist concern-

Ready, to Roll,

ing the Tribe, often saying “wait until next year.” He was an avid deer and elk hunter in Pennsylvania and the west. Stearns had a wealth of knowledge (“wealth of worthless information,” in his words) in a wide variety of subjects, with special expertise in military history. Q

For over 25 years, Rolled Metal Products has been providing JIT delivery service, quality metal and processes, expert technical support and high value to its respected customers. With locations in the Midwest and Northeast, we have all the advantages you expect from a leader in the metal processing industry.

Bensalem, PA 19020 800.638.3544 215.244.7789 Fax RolledMetalProducts.com

Your Edge Is Our Roll

Reel Time.

64 / SPRINGS / Spring 2014

New Products ©iStockphoto.com/hüseyin harmandaglı, morkeman, PeskyMonkey

PIG® Introduces Rapid Response Drainblocker® Drain Cover New Pig has introduced the PIG® Rapid Response Drainblocker® Drain Cover specifically designed to provide facilities with affordable emergency spill response protection in spill-prone areas near drains.

Packaged in an easy-open, high-visibility storage tube so workers can find it quickly and respond to the spill, the drain cover’s super-sealing urethane bottom layer creates a tight seal to quickly seal both floor and storm drains during spill emergencies, indoors or outdoors.

Affordable enough to place near all of a facility’s spill-prone drains, the drain covers are perfect for fixed facilities, fleets, hazmat and other response teams who need to meet stringent EPA spill preparation and cleanup regulations.

In addition, the drain cover features a UV-resistant polypropylene top layer

that will not stretch or tear when picked up. It is offered in four sizes, for square or round drains from 9" up to 36.” Wall brackets and signage are also available.

To learn more about this product and how it can help your facility comply with federal containment and spill response regulations, call 1-800-HOT-HOGS or visit www.newpig.com.

Brady Offers Full Suite of Lockout/Tagout Solutions Brady, a global leader in industrial and safety printing systems and solutions, offers complete lockout/tagout solutions as part of its Client Services offerings. Brady Client Services’ full suite of lockout/tagout services and software offerings includes procedure writing services, cloud-based procedure creation and maintenance software, lockout/tagout training and more.

“Having up-to-date and accurate lockout/tagout procedures is essential in creating a safe workplace. Lockout/ tagout is continually on OSHA’s top 10 most frequent violations, making it an important area of improvement for many companies, but a large undertaking.

That’s where we come in,” says Tim Bandt, global director of Client Services for Brady. “Brady helps our clients by providing the tools and training needed to both establish a lockout/tagout program that goes above and beyond compliance, and enable that program to be sustained in-house.”

Brady’s lockout/tagout procedure writing services start with determining the scope and focus of each customer’s program. Then a team of highly-experienced field engineers arrive onsite to create visually-instructive procedures within the company's LINK360® software and identify the equipment energy source locations with color-coded tags. To en-

sure the program remains compliant, field engineers collaborate with internal staff throughout the process to help them understand how to maintain their program.

In addition, Brady’s premier Link 360® software is the first of its kind, allowing companies to create, maintain, store and access lockout/tagout documents inhouse through its cloud-based platform.

To learn more about Brady Client Services, visit www.BradyID.com/ ClientServices.

SPRINGS / Spring 2014 / 65

New Products

New PLC + HMI Oven Control System Offered by HSI Huei Shang Industrial (HSI) introduces the newest PLC + HMI control system available for the world class HCF and HSF conveyor oven series.

The PLC+HMI based control system may be used in place of conventional instrumentation such as temperature controller, digital speed meter, etc. Most major functions of the oven are integrated into the PLC+HMI control system.

The “all in one” PLC+HMI based control system includes key functions such as precise temperature control with SSR (solid state relays), intelligent setting of belt speed, 2-step automatic shutdown, one week scheduling clock, motor monitoring, memory card recorder with on-screen charting, heating element failure detection, error message display and diagnosis for complete and simpli-

fied operation. Optional features such as OTP (over temperature protection) and CQI9 or AMS2750E enhancements will insure safe and quality performance conforming to automotive or aerospace specifications.

All control parameters and related information is entered and read through the touchscreen interface.

Optional functions such as the SMS messaging module are also available to send alarm messages to mobile phones for instant production management.

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

OMD Special Cooling Systems for Spring Grinding Beginning in 1993, OMD Officina Meccanica Domaso SPA introduced the forced air ventilation system in grinding machines with the goal of cooling the abrasive, while improving the cutting capacity and the service life, and to avoid overheating of springs during machining. Over the years, utilizing fluid-dynamic analysis, OMD has studied air motions inside the grinding chamber and has combined it with practical experiences gained in the field to implement a “theoretical model” of the air flow inside the grinding chamber.

In the newest series of grinding machines from OMD, two fundamental aspects of air flow are addressed: the machine geometry and the surrounding conditions.

The company’s new machine geometry has been designed to drastically reduce both the zones with low air speed that causes flow stagnation. Flow stagnation can result in possible dust accumulation and vortex motions, which is a main cause of solid particles escaping.

Once the machine geometry has been established, the surrounding condi-

66 / SPRINGS / Spring 2014

tions are examined: 1) the incoming air (forced) and 2) the outgoing air (intake).

Incoming air is used by the OMD Special Cooling System among the wheels to optimize the abrasive efficiency; cooling the spindles to exploit the highest nominal power used in heavy-duty situations. It helps provide sufficient air delivery inside the grinding chamber (through opposite pipe inlets) to reduce the overheating of springs during grinding. In addition it keeps the loading table clean of grinding dust, by means of special nozzles to help reduce

the wear of the spring sliding area. The OMD Cooling System also creates a barrier, through opposite slots in the machine bed, to hinder and reduce the escape of dust and sparks which helps minimize material accumulation inside the machine.

The optimization of the air nozzles, the oriented deflectors and the regulation of the flow (depending on the actual springs to be ground and the focal points to be cooled), helps achieve the greatest efficiency and drastically reduces useless dispersions.

The company says air flow optimization provides further production advantages, most notably reducing costs due to reduced consumption of abrasive wheels and a reduced number of dressings. Regarding the outgoing air, OMD has optimized the nozzle sizing depending on grinding requirements to drastically reducing dust dispersion and improve working conditions for machine operators.

For additional information regarding OMD grinders, contact FORMING SYSTEMS Inc. at info@formingsystemsinc. com or 269-679-3557.

New Products

Lift Door Box Ovens The lift door box ovens are the latest addition to the complete line of HSI high performance ovens including HCF mesh belt conveyor ovens (over 30 sizes), HSF link belt conveyor ovens, HB box ovens, PCF part collector-oven combination, and HC high temperature box ovens.

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

HSI and FSI introduce the newest oven design from HSI, the HB-LD Series of Lift Door Box Ovens.

These new ovens are design for batch stress relieving and heating for a variety of components at a maximum temperature of 500°C (930°F). The doors are pneumatically operated for ease of operation. Features include: • Stainless interior • Digital error analysis and display • Digital timer • Alarm systems for work complete • Recirculation motor monitor • Over temperature protection (OTP) Available options include: CQI9 capable; AMS2750E capable; TUS3 capable; Trolley and SS tray systems; Safety guard with light curtain; CF Card performance storage; and Electrostatic air filters.

Advertiser's Index A & D Trading (440) 563-5227 . . . . . . . . . . . . . .26 Admiral Steel (800) 323-7055 . . . . . . . . . . . . . . 8 Alex Industries (847) 298-1860 . . . . . . . . . . . . . .25 Alloy Wire International (866) 482-5569 . . . . . . . . . . . . . .23 CASMI (630) 369-3466 . . . . . . . . . . . . . .28 Century Spring, Division of MW Industries (800) 237-5225 . . . . . . . . . . . . . 46 Diamond Wire Spring Co. (800) 424-0500 . . . . . . . . . . . . . 32 Elgiloy Specialty Metals (847) 695-1900 . . . . . . . . . . . . . . 9 Forming Systems Inc. (877) 594-4300 . . inside front cover, back cov er Gibbs Wire & Steel Co. Inc. (800) 800-4422 . . inside back cover Gibraltar Corporation (847) 769-2099 . . . . . . . . . . . . . 18 Grainger www.grainger.com . . . . . . . . . . . 34

Industrial Steel & Wire (800) 767-0408 . . . . . . . . . . . . . 14 InterWire Products Inc. (914) 273-6633 . . . . . . . . . . . . . . 1 JN Machinery (224) 699-9161 . . . . . . . . . . . . . .56 John Evans' Sons (215) 368-7700 . . . . . . . . . . . . . 60 Kiswire (201) 461-8895 . . . . . . . . . . . . . 33 Larson Systems (763) 780-2131 . . . . . . . . . . 39, 41 Link Engineering (734) 453-0800 . . . . . . . . . . . . . 24 Mapes Piano String Co. (423) 543-3195 . . . . . . . . . . . . . 30 NIMSCO (563) 391-0400 . . . . . . . . . . . . 10 North American Spring Tool (860) 583-1693 . . . . . . . . . . . . 44 Proto Manufacturing (800) 965-8378 . . . . . . . . . . . . . .36 Radcliff Wire (860) 583-1305 . . . . . . . . . . . . . 40

RK Trading (847) 640-9371 . . . . . . . . . . . . . . 3 Rolled Metal Products 800) 638-3544 . . . . . . . . . . . . . 64 Simplex Rapid (563) 391-0400 . . . . . . . . . . . . . 11 Suzuki Garphyttan (574) 232-8800 . . . . . . . . . . . . . . .6 TCT Stainless Steel (800) 334-7509 . . . . . . . . . . . . . 54 Tool King (800) 338-1318 . . . . . . . . . . . . . 38 Ulbrich Stainless Steels (203) 239-4481 . . . . . . . . . . . . . .62 United Wire Co. (800) 840-9481 . . . . . . . . . . . . . 16 Vinston (847) 972-1098 . . . . . . . . . . . . . 13 Vulcan Spring & Manufacturing Co. (215) 721-1721 . . . . . . . . . . . . . 47 WAFIOS (203) 481-5555 . . . . . . . . . . . . . . .5 Zapp Precision Strip (203) 386-0038 . . . . . . . . . . . . . 53

SPRINGS / Spring 2014 / 67

Snapshot

Keith Porter, Jr. with his wife, Katie, their daughter, Caroline, and son, Keith.

Name: Keith Porter Jr. Company: Newcomb Spring of Carolina, Charlotte, N.C. Brief history of your company: Our

predecessor company began operations in Brooklyn, N.Y. in the 1890s. In 1921 the company was reorganized by E.L. Newcomb as Newcomb Spring. In 1924 George L. C. Jacobson became president and owner of Newcomb Spring and in 1933 he was one of the founders of the Spring Manufacturers Association (now known as SMI) and Newcomb Spring was a charter member. A branch plant was opened in Southington, Conn. in 1953 and Donald Jacobson, Sr. helped found the New England Spring Manufacturers Association (NESMA) and was elected as its first president. He became president of SMI in 1960. Newcomb Spring of Canada opened in Ontario in 1964 and in 1978 the company opened a California branch. In 1982 Donald Jacobson, Jr. was elected president of NESMA and as SMI president in 1995. In 2000 the company moved its headquarters to Atlanta, Ga. and expanded to nine locations with Resortes Newcomb, a Spanishspeaking facility to serve customers in Mexico, Central and South America.

Job title: General manager.

What I like most about being in the industry: I thoroughly enjoy working

My most outstanding personal quality is:

Dedication.

with design teams from all types of industries to create dependable mechanical solutions that improve the lives of people all over the world.

People who knew me in school thought I was: Funny and light hearted.

Favorite food: Chateaubriand.

was born.

Favorite books/author: The Bible.

If I weren’t working at Newcomb Spring I would like to: Teach life skills in

Favorite musician: The Allman Brothers.

southern Africa.

Hobbies: Church, golf, tennis, inventing,

and coaching.

The most difficult business decision I ever had to make was: “Divorcing” a large

Favorite places: Ngorongoro Crater,

customer because our businesses were headed in different directions.

Tanzania; Playa Del Carmen, Mexico; Topsail Island, N.C. Best times of my life: My days at

I knew I was an “adult” when: Our son

Role models: Jesus Christ, my dad, and

Dr. David A. Cook.

Birthplace: Atlanta, Ga.

Presbyterian College and the night Katie and I got married.

I would like to be remembered in the spring industry as: An advocate. I

Current home: Cramerton, N.C.

A really great evening to me is: Dinner

love to share the opportunities of our industry with young people.

Family: Wife, Katie, son, KAP (Keith

Allen Porter III), 4, daughter, Caroline Grace, eight months , yellow lab, Tucker.

and a movie with my wife and kids.

The one thing I can’t stand is: Dishonesty.

But people will probably remember me for: Running around throwing

My most outstanding work quality is: Organizational process flow and

plates over the sprinkler heads at the convention in Dove Mountain Ariz.

efficiency.

68 / SPRINGS / Spring 2014 68 / SPRINGS / Spring 2014

©iStockphoto.com/Tryfonov Ievgenii, nicholas belton

Keith Porter Jr. Newcomb Spring

:K\ 3DUWQHU :LWK *LEEV" +HUH¡V :K\ Just a small sampling of the actual emails and calls we receive from our customers every single day â&#x20AC;&#x153;You are awesome! There is not another supplier that even comes close to beating your response time!â&#x20AC;?

â&#x20AC;&#x153;Thank you so much for such quick response on all 3 orders. This is world class service.â&#x20AC;?

â&#x20AC;&#x153;You guys are total rock stars!!! Couldnâ&#x20AC;&#x2122;t be better! MUCHO MUCHO thanks!â&#x20AC;?

â&#x20AC;&#x153;You guys are AWESOME! Tell everyone THANK YOU!â&#x20AC;?

â&#x20AC;&#x153;You take such good care of me. Thank you so much!

â&#x20AC;&#x153;You have so made my weekend! TGIF!â&#x20AC;?

We recognize that a key component of your buying decision is based on customer service. Our goal is to be the best at customer service and support in our industry. Based on our customer comments it is clear we are providing the service levels you need. We will not rest until every customer feels the above statements could be written by them!

and knowledgeable employees you can count on. From our newest hire in the warehouse to our most senior employee in management. Men and women who truly care about the work they do and the customers they serve. Thatâ&#x20AC;&#x2122;s why so many leading comanies have chosen to partner with us.

Since 1956 Gibbs Wire and Steel has represented a combination of responsiveness, innovation and leading edge technology, the lowest total cost and a team of dedicated The People You Can Rely On For Wire And Strip

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