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Winter 2017 - Volume 10; Issue 4


g n i t a r eb

In this Issue Family Succession Planning Welcome to the 2017 TDMAW Board of Directors Offsite Backup for Critical Company Data: Hybrid Cloud vs Private Cloud

rs 80 Yea ting C e l e b ra

! s r a e Y 0 8

President's Letter

Happy New Year! sending me an email with a suggestion for a technical meeting, all the way to joining a committee to lend a helping hand. We want the group to be an authoritative resource for the Tool, Die and Machining industry. In order to achieve this, we need your help. No one member will be able to do this. The intent is not to change what the organization stands for. Our intent is to make sure we follow the original formula which was made up back in 1937 and make it work for 2017. 80 years is a long time for a small, independent group like ours to survive. I feel confident with our Board of Directors and members that we


y name is Pete Kambouris and I am the 2017 TDMAW President. First off, thank you for having the confidence in me to put me in as President. A little bit about me. I work for Wisconsin Engraving Company. Our company has been a member since 1937 and was one of the founding members. Many of our company officials have been involved with the organization over the years. For me to be voted in as President is a great honor and a huge responsibility. The TDMAW is made up of proud tool & die and machine shop owners, vendors and suppliers who value what the TDMAW stands for and people who contribute their time to make sure being associated with this group means something. With this is in mind, our focus for 2017, and beyond, is to grow the organization into a purposeful resource yet maintain our core values and integrity. How do we grow our organization? By attracting and retaining strong members, partners and sponsors who share our passion of industry and values. What values define an existing or new TDMAW member? We have highlighted five Core Values that should define our membership: Passion for Industry, Integrity, Pride in Workmanship, Advancement through Education and Collaboration. If you know of someone who fits our values and you think they could benefit from membership, please pass their name along to me. To help achieve our goals, we would like to ask our existing members to get involved. Involvement can be as simple as 2 | TDMAW HQ (262) 532-2440

can continue to strengthen and grow this organization. I ask everyone to reach out to me at any time to give me your thoughts and suggestions. I want to hear your ideas on events, technical ideas, speakers, etc. This is your organization. I look forward to meeting new faces and reconnecting with old throughout 2017. Respectfully, Pete Kambouris President, TDMAW 2017 pckambouris@wi-engraving 414-378-6844

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Editorial Calendar: Interested in submitting an article for the Surgeons of Steel? Email your 500-700 word, Microsoft Word document to TDMAW at ToolMaker@TDMAW.org. Deadlines to submit articles are: Winter Issue: January 1 Spring Issue: April 1 Summer Issue: July 1 Fall Issue: October 1


Table of Contents

2017 Board of Directors

Presidents Letter .................................................................... 2

President – Pete Kambouris Wisconsin Engraving Company 262.786.4521 | pckambouris@wi-engraving.com

Federated Insurance: Family Succession Planning .................................................... 7

Vice President – Kirk Kussman Aztalan Engineering Inc. 920.648.3411 | kkussman@aztalan.com

BotsIQ Wisconsin December Competition ................................ 8

Treasurer – Alan Petelinsek Power Test, Inc. 262.252.4301 | alan@pwrtst.com

Employee Suspensions – When and How? ............................. 9 Committee Corner................................................................. 11 Happy 80th Birthday TDMAW! ............................................... 13 Charter Member Superior Die Set Looks Back at 80 years with the TDMAW ................................................. 14

Secretary – John Thomann W-Steel & Grinding, Inc. 262.252.3630 | john@wsteel.net Chairman of the Board – Brian Nuetzel Matzel Manufacturing, Inc. 414.466.3800 | Briann@mzmatzel.com

Welcome to the 2017 TDMAW Board of Directors ................................................................. 16 TDMAW January 10 Breakfast Meeting with Jeff Vogelsang of Promontory Point Partners ................. 18 Do You “Know Your Numbers”? ............................................. 19 Legislative Update: Time to Double Down on Bold Reforms.............................................. 20 Offsite Backup for Critical Company Data: Hybrid Cloud vs Private Cloud ............................................... 21 TDMAW is Supporting Wisconsin’s Future workforce through Scholarship ............................................. 22 Partners & Sponsors ............................................................. 23

TDMAW Headquarters W175 N11117 Stonewood Drive, Suite 204, Germantown, WI 53022 262.532.2440 Phone | 262.532.2430 Fax | toolmaker@tdmaw.org | www.tdmaw.org

toolmaker@TDMAW.org | 3

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2017 Calendar of Events March 7, 2017

WEDC CEO Mark Hogan Dinner Meeting

Marriott Milwaukee West, Waukesha

May 2, 2017

Federated Insurance Meeting

Delafield Brewhaus, Delafield

June 13, 2017

June Outing

River Club of Mequon or Lake Michigan Charter Fishing

August 2017

Annual Summer Outing

Watch for Details

September 12, 2017

Member Social

Wisconsin Club, Milwaukee

October 3, 2017

WMTS Dinner Meeting

Wisconsin State Fair Expo Center

December 5, 2017

Annual Meeting


In the Know The Edward L. Simeth Scholarship offers up to $500.00 per semester to students currently enrolled in a machine tool operations program or tool & die program at any accredited Wisconsin technical college. Four students received awards for the spring semester. TDMAW thanks the E. L. Simeth Company for their continued financial support for this scholarship. Applications are currently being accepted for the fall semester. The deadline to apply is June 15, 2017. Applications can be found on the TDMAW.org website at tdmaw.org/education-careers/scholarships/. Looking for qualified applicants or to post your open positions? Use Wisconsin Tech Connect to post your job and/or to look for applicants. www.wisconsintechconnect.com Wisconsin Tech Connect is a statewide online employment information system for recruiting Wisconsin Technical College System (WTCS) students and graduates. TDMAW supports BotsIQ Wisconsin, a robotics program formed to introduce students, teachers and parents to the career opportunities available in high tech manufacturing. Area high school teams come together for a Battle of the Bots competition twice a year. The next competition is planned for Saturday, April 29, 2017, and will be held at Waukesha County Technical College. Plan to come watch, or better yet, volunteer with setup, teardown, or to help during the competition. Becoming involved with BotsIQ is a great way to make connections with your future employees and support our industry! If you are interested in more information, contact TDMAW Headquarters at ToolMaker@TDMAW.org. Welcome TDMAW’s newest Red-Level Sponsor, Tushaus & Associates, LLC, Certified Public Accountants and Consulting. Visit their website to learn more about how Tushaus & Associates can help your business! www.tushauscpa.com | Jared Knoke (414) 774-1031 (ext. 245) TDMAW Blue-Level Sponsor, FirstMerit Bank is now Huntington Bank. Please update your records and know that you will receive the same friendly & knowledgeable service from Kyle Haug, (262) 709-3726.


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Here we go again!

Family Succession Planning

Federated Insurance

Tornado Preparedness Takes Center Stage

Preliminary estimates for 2012 by the National Oceanic Atmospheric Association (NOAA) report more than 900

concernsit should consider putting that Many ofFrom thesedroughts individuals are eligible for ofextremes, tornadoes—22 of Planning which were “killer tornadoes.” to floods to temperature seems that weather Family Succession child’s inheritance into a trust that provides public assistance of some type. If they systems are upside down all over the country. January 2012 was an unusually violent month for severe weather, with more with Trusts than 70 tornadoes Unfortunately, extreme weatherfrom is becoming more commonplace: Over the past years,but the with an income to three the child, outright their parents, they lifetime Parents want to see reported. their children and inherit 1 United States has averaged more than 1,300 tornadoes. ultimate distribution to the grandchildren will likely not be eligible for the assistance grandchildren succeed. But, if the parents (bloodline trust).killed in 2011 by untilarethe inheritance spent. Deaths and property damagesuccession from tornadoes not limited to the is most severeParents storms: 109 people were die, will that goal be met? Family 2 should consider setting up a trust that So what can we do? In a word, PREPARE! storms ratedtrusts EF3 or lower. planning using can effectively help will supplement the child’s needs without Blended families the next generation succeed by properly Things can getofcomplicated when a parent Tornado season lasts from March to August, but tornadoes occur year-round. 80 percent tornados occur disqualifying himcan or her from assistance.More than protecting their assets. between noon and midnight, and one quarter occur from 4:00 p.m. to 6:00 p.m. Tornadoes are mostand likely occur between remarries has to children from a previous have been reported in every state, they are mostmarriage prevalentorinrelationship. the area known as 4:00 p.m. and 9:00 p.m. While tornadoes Children with chemical, gambling, Without proper Minor children “Tornado Alley,” which includes states located between the Rocky Mountains and Appalachians. planning, the parent may inadvertently creditor, motivation problems It is generally not advised to give an Children with issues that a sudden disinherit his/her own children. This inheritance to an 18-year-old, but this is Tornado strength is measured on the Enhanced Fujita (EF) Intensity Scale, which correlates damage with wind speed. The influx of money could exacerbate may would happen if the bulk of the estate what scale couldhas happen with no planning. If shown a six wind-damage levels, as on the accompanying chart. primarily toEF theScale new spouse. Before child is under 18 when the parent dies, the need protection from themselves and from passes Operational EFremarrying, Number 3-Second Gust suggested (mph) it is strongly that their creditors and predators. For these courtHow will impose a guardianship. can you prepare Generally, for a tornado? Plan with a PURPOSE 0 65-85 parents with significant assets consider a children, parents should consider putting the inherited assets must be turned over to 1 86-110 prenuptial agreement and trusts to protect Know   t he   r isk   f or   t ornadoes   i n   t he   a rea.   A lthough tornadoes have been their share of inheritance into a trust. The the child when he or she reaches legal age. 2 111-135 reported the United areascould are clearly at higher risk than for their “bloodline” heirs. trustee have the discretion to make assets To avoid this, throughout a trust is required. TheStates, trust some 3 136-165 others. A qualified, experienced estate planning partial distributions if the child reaches can be designed to do what you would have 4 166-200 attorney can help you work certain milestones (becoming chemical 5 Over 200 through your a “safe” room where done Identify if you were still alive: meet the others child’s can gather during a tornado. In the concerns and put together a plan that free, getting credit under control, etc.), or Missouri, of 2011, people survived by taking shelter in a walk-in needs;Joplin, pay for college, storms a wedding, a house; provides appropriately for your children for accomplishing certain goals, such as cooler. Whatever you designate as your safe room, it should be determined before you need it. Examine your property— help start a business; etc. Additionally, after you’re gone. both your home and business—and create a plan. A basement location away from all windows is preferable. If there is no graduation from college, or legally earning it can be designed to make lump sum © 2014 Advisors Law Group, All Rights basement, an interior hallway or room on the lowest floor is best. A nearby sturdy building is another option. Once you an income, which could be matched dollar distributions at certain ages. Reserved designate a safe room, consider having it for reinforced, dollar. if possible, for additional protection. Special needs children To learn more about the Federated Children’s spouses As long as one parent is living, a special Employment Practices Network®, contact your Sometimes, parents are concerned needs child’s necessities can be met. But about a child’s spouse, marriage stability, local Federated Marketing Representative, or what happens when both parents are gone? or debt issues. Parents with these types visit www.federatedinsurance.com.


It’s Our Business to Protect Yours® .... ….. ......................


This publication is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business, or your customers. You should always consult your personal attorney and insurance advisor for advice unique to you and your business. © 2012 Federated Mutual Insurance Company. All rights reserved. Federated Mutual Insurance Company Federated Service Insurance Company* Federated Life Insurance Company Home Office: 121 East Park Square • Owatonna, Minnesota 55060 Phone: (507) 455-5200 • www.federatedinsurance.com *Federated Service Insurance Company is not licensed in the states of NH, NJ, RI, and VT.

toolmaker@TDMAW.org | 7

BotsIQ Wisconsin December Competition


DMAW supports BotsIQ Wisconsin, a robotics program formed to introduce students, teachers and parents to the career opportunities available in high tech manufacturing. Area high school teams come together for a Battle of the Bots competition twice a year. The pictures below are from the December competition and show the winning teams, along with referee & TDMAW Member, Mike Retzer of Strohwig Industries.

The next competition is planned for Saturday, April 29, 2017, and will be held at Waukesha County Technical College. Plan to come watch, or better yet, volunteer with setup, teardown, or to help during the competition. Becoming involved with BotsIQ is a great way to make connections with your future employees and support our industry! If you are interested in more information, contact TDMAW Headquarters at ToolMaker@TDMAW.org.

1st. Place Roulette West Bend H.S.

2nd Place Brick West Bend H.S.

3rd. Place Trainer West Bend H.S.

8 | TDMAW HQ (262) 532-2440

Coolest Bot 10 Push Ups


Employee Suspensions – When and How? Question: When and how can suspensions can be used? What, if any, ramifications come with them? Response: There is no federal or state law in the state where the company operates that prohibits employers from suspending employees as a disciplinary action or while an investigation takes place, as may occur if the employer reasonably determines that it can more fully and fairly investigate a situation in the employee's absence or where the alleged misconduct is so severe that it would warrant immediate suspension or discharge if the allegations are substantiated. That said and as discussed below, in some cases an UNPAID suspension as to an exempt employee can jeopardize the salary basis that is otherwise required to maintain the exemption status, but even in this scenario an unpaid suspension does not expressly violate the law. Nonexempt employees, including any as may be subject to a tip credit, can be subject to unpaid suspensions absent a contract that precludes them. As a general rule relative to disciplinary policies, employers have discretion to establish such policies as they see fit if no employment contract otherwise governs the issue. Disciplinary suspensions, and suspensions pending investigation, are within an employer's right to issue if company policy supports

these courses of action based on the facts and where the approach is consistent with how the employer has responded to prior similar scenarios. If an employee is nonexempt, he or she need not be paid for a disciplinary or investigative suspension unless company policy, practice or a contract entitle the employee otherwise. As to suspensions pending investigation, employer policies should support issuance of back pay if the employer's investigation reveals no wrongdoing (or perhaps did not reveal any action on the part of the suspected employee that warranted discharge or an unpaid disciplinary suspension). In this way a suspended employee is made whole for the time lost, and does not suffer what effectively is an unpaid disciplinary suspension, if one is determined not to have been warranted in the first place. If an employee is exempt, however, then note that an employer generally cannot withhold wages or salary for any exempt employee if he or she performs any work in a workweek. That said, there are some exceptions. The federal Fair Labor Standards Act does permit suspension-related deductions from the salary of such employees when such a penalty is imposed in good faith for infractions of safety rules of major significance, OR for unpaid disciplinary suspensions of one or more FULL days, which also

must be imposed in good faith for workplace conduct rule infractions (see https://www.dol.gov/whd/regs/ compliance/overtime/modelPolicy_ PF.htm). This provision refers to SERIOUS misconduct, though, not basic performance or attendance issues, and arguably not to partialweek suspensions where the employer is merely investigating (i.e., before an unpaid suspension issues as a form of disciplinary action in and of itself). An employer may thus impose in good faith an unpaid suspension upon an exempt employee for infractions of workplace conduct rules, such as rules prohibiting sexual harassment, workplace violence, drug or alcohol use, or for violations of state or federal laws, but not for anything that would meet not this criteria. No suspension can be imposed if there is not a written policy in place that is applicable to all employees and that provides for it. See http://www.dol.gov/elaws/esa/ flsa/overtime/cr5.htm#3 and https://www.dol.gov/whd/regs/ compliance/overtime/modelPolicy_ PF.htm for a sample policy that mentions this). © 2014 Advisors Law Group, All Rights Reserved To learn more about the Federated Employment Practices Network®, contact your local Federated Marketing Representative, or visit www.federatedinsurance.com.

toolmaker@TDMAW.org | 9

rs 80 Yea g n i t C e l e b ra

2016 Board: Pete Kambouris, Brian Nuetzel, Randy Weber and Kirk Kussman. Alan Petelinsek not pictured.

Thank you to the TDMAW 2016 Board of Directors Brian Nuetzel

Matzel Manufacturing – President

Pete Kambouris

Wisconsin Engraving Co. – Vice President

Alan Petelinsek

Power Test, Inc. – Treasurer

Kirk Kussman

Aztalan Engineering Inc. – Secretary

Randy Weber

DACO Precision-Tool – Chairman of the Board 10 | TDMAW HQ (262) 532-2440


Committee Corner

Committee Corner TDMAW thanks its wonderful volunteers who donate their time to chair and serve on committees!

2016 Committee Chairs: UÊÊKathy Pfannerstill Legislative Committee UÊÊBrian Nuetzel Business Support (Group Buying Partners/Sponsorship) UÊÊAustin Weber Communications Committee UÊÊLynn Mahuta Promotions Committee

UÊÊScholarship Committee: thanks to the support of TDMAW Partners MSC and E. L. Simeth we were able to give away $2,500 with the Edward L. Simeth scholarship and 11 toolboxes through the Tools to Succeed Tool Box scholarship, a partnership between TDMAW and TDMAW Partner, MSC Industrial Supply. UÊÊPromotions Committee: (SkillsUSA) TDMAW donated $2,000 to secondary and post-secondary SkillsUSA competition winners, to offset travel expenses to SkillsUSA nationals. UÊPromotions Committee: TDMAW continues to support the BotsIQ Wisconsin robotics program through volunteerism. BotsIQ was formed to introduce students, teachers and parents to the career opportunities available in high tech manufacturing. Consider volunteering and meeting your future employees! Their most recent completion was held on December 3rd. Watch for pictures in the Surgeons of Steel magazine. UÊMembership Committee: We are always looking to add high caliber members to the TDMAW Roster.

UÊÊMary Wehrheim & Allen Weiss Apprenticeship Committee co-chairs

UÊInsurance Committee: TDMAW was awarded $4,500 safety plus award, by TDMAW Partner Federated Insurance, in addition to their normal contribution of approximately $60,000. The safety plus award was due to a low number of claims filed by manufacturing companies who fall under a specific SIC code.

UÊÊSteve Latus Scholarship Committee

UÊÊCommunications Committee: reminder to update your company profile on TDMAW.org. This is the best way for people to find members.

UÊÊMary Wehrheim & Jim Persik Advisory Co-Chairs UÊÊKirk Kussman Insurance Committee Chair UÊÊPete Kambouris Membership Committee UÊÊRandy Weber Programs/Events Committee UÊÊMike Mallwitz Workforce Development Committee Here’s a look at what was accomplished together in 2016. Workforce Development Committee: Sponsored MATC bus trip to IMTS and promoted TDMAW and member career options at MCE career expo and the MADE expo at WCTC.

wisconsin engraving, Proven

craftsmen. www.wi-engraving.com | 262.786.4521

Programs Committee: Programs Committee added more technical programming for 2017, in additional to the social opportunities.

CNC Machining • Steel Marking Stamps • Steel Embossing Dies • Graphite/Copper Electrodes • Laser Digitizing • Polishing

toolmaker@TDMAW.org | 11

Here are some of our retiree’s contributions to the TDMAW: Let the Relaxation Begin! We wish a happy retirement to TDMAW members who have had lasting impact on the TDMAW. TDMAW will be forever grateful for your leadership and commitment to our association! Ken Mahuta of Mahuta Tool

Ken Mahuta

Chair and member of TDMAW Business Support Committee \ Past Board President \ Managed Tools to Succeed Tool Box Scholarship Program \ Involved with BotsIQ Wisconsin robotics program \ Honorary Member

Lynn Mahuta

Legislative Committee member \ Chair of Promotions Committee \ Involved with BotsIQ Wisconsin robotics program \ Past Board President \ Helped write a $3 million Federal H1B Training Grant \ Honorary Member

Lynn Mahuta of Mahuta Tool Chris Pfannerstill of Toolcraft Co. Mary Wehrheim of Stanek Tool

Chris Pfannerstill

Chair and member of Legislative Committee \ Responsible for the creation of Wisconsin’s Lien Law \ Past Board President \ Honorary Member

Mary Wehrheim

Advisory Committee Co-Chair \ Wage & Benefits Chair \ Past Board President \ Helped write a $3 million Federal H1B Training Grant \ Honorary Member

Welcome TDMAW’s Newest Members!

2017 membership renewals are coming in at a good clip!

Hearing Protection LLC 128 Elm Street, Suite D Dousman WI 53118 www.griffinarmament.com Owners: Austin & Evan Green (262) 899-0844

Pine Cellar Manufactuing W224 S8465 Industrial Drive Big Bend WI 53013 www.pinecellarmfg.com Owners: Glenn & Heidi Shudy (262) 662-4802


he TDMAW wishes you a Happy New Year and a 2017 abundant with personal and professional growth. We hope that you will continue to support the TDMAW through Membership and enjoy the benefits of:



If you know of a Wisconsin based tool, die and machining company that you think should be a part of TDMAW, let us know! Our Membership Committee would love to talk with them! 12 | TDMAW HQ (262) 532-2440


! rthday th bi 0 8 y happ



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lot has changed since the charter was signed in 1937, but much has stayed the same. TDMAW has stayed true to its commitment to grow and strengthen Wisconsin Manufacturing, but along the way it has changed from a social organization offering owners of Tool & Die companies opportunites to develop strong business & personal relationships, which it still offers, to an organization that strives to offer educational opportunities and resources to its members, helping members to make their businesses as strong as they can be.

We thank those of you have donated above and beyond your dues, in order to help support TDMAW’s Mission: Gold Barb Grove, in honor or her parents George & Audrey Grove, former owners of Busch Precision, Inc. PowerTest

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14 | TDMAW HQ (262) 532-2440

Charter Member Superior Die Set Looks Back at 80 years with the TDMAW


Large Plate Machining

he story of Superior Die Set begins with the story of Kasimir Janiszewski. Kasimir was born in 1888 as an ethnic Pole in the AustroHungarian Empire. He was a blacksmith by trade but wanted more opportunities than the empire allowed. By 1910 he immigrated to the United States. When he signed the book at Ellis Island he put his occupation as “smith”. When asked what his specialty was, Kasimir responded with a question of his own “what specialty makes the most money?” The agent replied with tool and die maker and so entered young Kasimir into the tool and die field. Kasimir found work where he could in tool and die, learning the trade and applying his metalworking knowledge. He worked his way across the country living in Chicago for a few years and eventually moved to the Milwaukee area. In 1923 with his two partners (Mr. Szymanski and Mr. Kosmetka) he started Superior Tool and Die Company. Kasimir’s initial contribution was using his hammer and anvil to help make draw die sections. Through coincidence one of Kasimir’s neighbors worked at Maynard Foundry, which was making cast iron die sets for the largest die set maker at the time. Kasimir saw an opportunity and started buying the overrun and scrap die sets for use by Superior and to sell to other tool shops. The competition caught wind of this and www.TDMAW.org

put an end to it, but not before Kasimir saw the potential in die sets. He starting buying steel and using the then-new technology of flame-cutting to start producing his own all-steel die sets, an industry first. That was hardly Kasimir’s only contribution to tool and die. Throughout his career he was awarded over 20 patents related to the industry. In the 1920’s the Great Depression hit. Times were tough, but with a lot of hard work, dedicated employees, and luck the company survived receivership and the Depression. World War Two came and Kasimir’s two oldest sons went off to fight in it. Fearing they wouldn’t come back and if they did they would be too old to become tool and die makers, Kasimir sold the tool and die side of his business to his partners (the tool and die company is still in business today as Service Tool and Die in West Allis WI) to focus solely on producing die sets and components for the metal stamping industry. Business was good during the war and luckily both of Kasimir’s sons who left to fight made it back and entered the business in earnest. During the post-war times Superior saw tremendous growth, led by the new generation of Janiszewskis in the business. Casimir, the middle son in particular became the sales manager and oversaw the creation of a nation-wide sales network that contributed greatly to the company’s growth. 1964-65 was a banner year as Superior moved from Milwaukee to Oak Creek where construction was finished on a brand new factory. Machining, grinding, and fabricating capabilities were greatly enhanced which enabled Superior to pursue new markets outside of die sets. In 1969, Casimir became president of Superior. Throughout the 70’s and into the 80’s Superior greatly expanded its product offering. Establishing a presence serving the forging, die casting, plastic injection molding, heavy plate fabrication, and the punch and die (through a new company which today is called Greendale Precision Services) industries. Also during this time the third generation started at Superior, Casimir’s two sons Casimir Jr. (Casey) and Frank began working their way through various roles, especially on the manufacturing side. In 1985 the factory was expanded another time to specifically expand the mold base manufacturing capabilities. In 1988 Casimir Jr. became

President and Frank became Vice President of Manufacturing at Superior. In the early 90’s Casey started to visit Poland which had just achieved freedom from Communism. Due to industry changes, Superior needed new suppliers for certain standard parts and looked to the first Kasimir’s homeland for opportunities. Opportunities were found and Superior actually helped establish Polish law when it created a company there (FCPK Bytów) by writing up and signing what was likely the first lease with an option to buy in post-communist Poland. FCPK has grown tremendously through the last 20+ years, adding a second factory in Kielce for plate products and becoming a major supplier to the European die and mold building industries. As the 90’s gave way to the 2000’s Frank and Casey’s children, the 4th generation, started to work at Superior and continue to serve in various roles throughout the company today. In 2013 Frank became the President of Superior to continue carrying the torch forward. Superior in 2017 is entering its 94th year of business, and has continued to innovate and expand its capabilities to better serve its customers. These include over 25 precision machining centers boasting up to 90” x 180” of travel; over 20 grinding

Old Superior


machines featuring a 164” swing Blanchard grinder and a 64” x 80” surface grinder; several millions of tons of steel in stock including 4 grades of alloy plate with the recent addition of full 4140 plates; welding and fabricating capabilities; a companywide ERP system; a high precision squaring mill capable of quickly squaring pieces up to 16” x 47.25” x 47.25”, and much more. All of this impressive equipment is backed up by hundreds of years of collective experience by Superior’s dedicated employees that are all part of the Superior family. Thank you for reading this short history of Superior, and should you find yourself near Oak Creek, please give us a call and stop by for a tour.

patent toolmaker@TDMAW.org | 15

Welcome to the 2017 TDMAW Board of Directors Welcome to the 2017 TDMAW Board of Directors, voted in at the TDMAW Annual Meeting, held at Alioto’s on December 6, 2016. TDMAW members are fortunate to have five strong leaders, dedicated to guiding the TDMAW into its 80th year of supporting the Tool, Die and Machining industries. President – Pete Kambouris Wisconsin Engraving Company 262.786.4521 | pckambouris@wi-engraving.com Vice President – Kirk Kussman Aztalan Engineering Inc. 920.648.3411 | kkussman@aztalan.com Treasurer – Alan Petelinsek Power Test, Inc. 262.252.4301 | alan@pwrtst.com Secretary – John Thomann W-Steel & Grinding, Inc. 262.252.3630 | john@wsteel.net Chairman of the Board – Brian Nuetzel Matzel Manufacturing, Inc. 414.466.3800 | Briann@mzmatzel.com 2017 Board of Directors L-R, John Thomann, Pete Kambouris, Kirk Kussman, Alan Petelinsek, Brian Nuetzel

Passing of the Gavel, 2017 TDMAW President Pete Kambouris and 2016 TDMAW President Brian Nuetzel

December 6 Meeting at Alioto's

Meeting attendees were treated to Wayne Breitbarth’s presentation about the Power Formula for LinkedIn Success, and were each given a complimentary copy of his book.

16 | TDMAW HQ (262) 532-2440



OCTOBER 3-5, 2017 Exposition Center at Wisconsin State Fair Park | Milwaukee, WI www.WIMTS.com

Growing production is your top priority. And it’s ours, too. At U.S. Bank, we offer customized solutions that can help your business with acquiring new equipment, expanding production and help manage cash flow. Contact a dedicated business banker today, and let’s discuss how our business solutions can save you time and money while offering convenience to streamline your operations. A local business banker is ready to meet with you. Contact us today. Call Charles Starck at 608.252.4436 or charles.starck@usbank.com.

Credit products are subject to normal credit approval and program guidelines. Some restrictions and fees may apply. Deposit products offered by U.S. Bank National Association. Member FDIC. 160094 6/16

toolmaker@TDMAW.org | 17

TDMAW January 10 Breakfast Meeting with Jeff Vogelsang of Promontory Point Partners

Jeff Vogelsang


ttendees were treated to a no holds barred discussion about business health, excuses made for failing or floundering businesses and real answers about how to turn a business around. TDMAW thanks Jeff Vogelsang for presenting. Jeff mentioned, in his presentation that business owners should be planning their exit strategy from the day they form their business, or at a minimum, three years out.

Breakfast Meeting with Jeff Vogelsang

Don’t miss the TDMAW February 21 breakfast meeting, where Marc Loden, attorney with TDMAW Sponsor von Briesen & Roper, will discuss business valuation, structuring and documenting a business sale, buy/sell agreements, succession planning, estate taxes and estate planning. Marc’s presentation is at the business owner’s level and is very practical and informative. Register today at TDMAW.org.




SINCE 1976

Rockford, IL | P 815-226-8800 | 800-435-0717


CNC OD/ID Grinding and Surface Grinding Select fitting Part recovery U Valves U Flanges U Servo valves

Driveshafts Plungers U Pistons U Hydraulic components U Pinions





414.588.4271 | jk2dk@aol.com | airportgrindingllc.com Plate Bay

18 | TDMAW HQ (262) 532-2440


Do You “Know Your Numbers”?

Article submitted by TDMAW Blue-Level Sponsor, Huntington Bank formerly FirstMerit Bank


utside of your annual sales revenues (top line) which many owners keep a very close eye on, there are some key ratios/figures that banks look to in the analysis of determining working capital needs. Ultimately this data is also used to “stack rank” your shop vs. the industry. Below are averages for Machine Shops through the end of 2015 according to BizMiner, a leading supplier of industry analytical statistics to the financial sector, accounting, and business valuation communities. As tax season is now upon us I would highly encourage you to work with your CPA/Banker/Bookkeeper on how your shop currently stacks up vs. your competition (sample size of 15,902).

Machine Shops Income Statement: Item


Revenue ................................100.00% Cost of Sales ...........................66.63% Gross Margin ...........................33.37% Officers Compensation..............4.67%

Machine Shops Financial Ratios: Measure


Current Ratio .........................................................................................2.10 Quick Ratio ............................................................................................1.31 Days Inventory.....................................................................................41.81 Days Receivables ................................................................................30.60 Days Payables .....................................................................................27.32 Pre-tax Return on Revenue ............................................................... 4.09% Pre-tax Return on Assets ................................................................ 10.98% Pre-tax Return on Net Worth .......................................................... 20.98% Interest Coverage ................................................................................12.86 Current Liabilities to Net Worth .............................................................0.54 Long Term Liabilities to Net Worth ........................................................0.37 Total Liabilities to Net Worth..................................................................0.91

Salaries-Wages .........................6.23% Rent ...........................................3.24% Taxes Paid .................................2.48% Advertising.................................0.48% Benefits-Pensions .....................2.59% Repairs ......................................0.72% Bad Debt ...................................0.06% Other SG&A Expenses ..............6.38% EBITDA ......................................6.52% Amortization-Depreciation.........2.78% Operating Expenses ................29.63% Operating Income ......................3.74% Interest Income..........................0.03% Interest Expense ........................0.51% Other Income.............................0.84% Pre-tax Net Profit.......................4.10% Income Tax ................................0.89% After Tax Net Profit ....................3.21%

toolmaker@TDMAW.org | 19

Legislative Update

Time to Double Down on Bold Reforms Article Courtesy of Wisconsin Manufacturers and Commerce, Scott Manley, WMC Senior Vice President of Government Relations


he results from the election this year were as historic as they were stunning. Very few people expected Donald Trump to win the presidency, or the State of Wisconsin for that matter. Voters from across the country sent a clear message that the status quo of big government intervention and job – killing regulations are unacceptable. Yet in Wisconsin, voters sent a different message — one of affirmation. Voters here gave legislative Republicans even deeper majorities, and a clear directive to continue doing what they have been doing for the past six years: enacting bold, pro-growth reforms. To put these expanded majorities into perspective, consider the fact that Republicans now have more members in the Senate than they’ve had in the past 46 years. In the Assembly, you need to go back 60 years to find a Republican majority this big. Most members of the Assembly weren’t even born when GOP ranks in that chamber were this large. The lesson here is that if you do big and bold things, voters will reward you. Two years ago, we asked the Legislature to enact Right-to-Work to give workers freedom of choice in the workplace and make Wisconsin a more attractive place to invest. Many believed that Wisconsin passing Right-to-Work was politically unthinkable, yet not a single Republican who voted for the new law lost his/her election. Not one. Republican lawmakers must put their strong majorities to good use and quickly enact bold reforms that help businesses and families prosper. Following are a few priorities that WMC will ask them to consider this year.

Workforce Development

A survey of WMC CEOs last year found that 70% are having trouble hiring, and the labor shortage was the top business concern facing employers. Although there is a shortage of skilled labor that is particularly acute in the STEM fields, the problem is much broader because of demographic challenges facing our state. Wisconsin is one of only about a dozen states that have more Baby Boomers than Millennials. So we find ourselves with fewer people in the pipeline to replace retirees who leave the workforce. 20 | TDMAW HQ (262) 532-2440

Wisconsin remains a highly-taxed state, and our top income tax rate is the ninthhighest in the country. There is no silver bullet legislative solution to this problem, but there are ways the Legislature can be helpful nonetheless. For example, the state could offer school districts financial incentives to bring industrial arts programming back into our middle and high schools so more kids graduate with marketable job skills. High school graduates also need greater exposure to the types of well-paying jobs available in today’s labor market and handson experience that will help land them. The Legislature should also incentivize schools to offer dual enrollment, internships, apprenticeships and job shadowing opportunities at local businesses for high school students as part of their coursework.

Regulatory Reform

Reducing Wisconsin’s regulatory burden was the number one reform the Legislature could enact to improve Wisconsin’s business climate according to a survey of WMC CEOs last month. In addition to addressing the cost of regulation, we must take steps to prevent unelected bureaucrats from imposing their will on Wisconsin families and businesses by regulatory fiat. It’s time to put lawmakers back in charge of policymaking for regulations that profoundly impact Wisconsinites. To do so, the Legislature should pass a law similar to Assembly Bill 251 from last session that would require legislators to approve any rule costing $10 million or more before it can become law. There is no better way to make the bureaucracy accountable to voters – a goal everyone should support. Other important regulatory reforms include placing an expiration date on regulations to force agencies to reassess whether they are still needed (or need

updating) and requiring agencies to repeal two regulations for every new rule they promulgate.

Tax Reform

Although we have made recent progress, Wisconsin remains a highlytaxed state, and our top income tax rate is the ninth-highest in the country. There are a number of reforms that would put us on a much more level playing field with competitors in other states if they were implemented. For example, the Legislature should repeal Governor Doyle’s 2009 income tax hike that created a new top bracket. This punitive tax hits small businesses especially hard. Other tax reforms that would better align Wisconsin with other states are repealing the Personal Property Tax businesses pay each year on things like furniture and equipment, and a full repeal of the state Alternative Minimum Tax.

Reducing Health Care Costs

Reducing the cost of health care was tied for the second-most important thing the Legislature could do to improve Wisconsin’s business climate in the WMC CEO survey conducted last month. Specifically, our members ranked enacting meaningful medical cost containment in the Workers Compensation program as one of the highest priorities for the 201718 session. Wisconsin continues to have medical costs in Workers Compensation that are well above the national average, and something must be done to contain them. Wisconsin can also make meaningful progress to reduce health care costs by increasing reimbursements for Medicaid services, thereby reducing the amount of unfunded care that is shifted to patients with insurance. Minimizing this “hidden tax” on health care will improve affordability for all consumers. The election on Nov. 8th was historic, and the Republican Legislature’s policy agenda should be historic as well. It’s time to double down on bold reforms to position our state for even greater economic prosperity in the future. toolmaker@TDMAW.org www.TDMAW.org | 20

Offsite Backup for Critical Company Data: Hybrid Cloud vs Private Cloud Submitted by TDMAW Partner, SWICKtech


n today’s increasingly digital world, businesses generate, and rely, on data more than ever. Unfortunately, most businesses’ backup strategies haven’t kept up with the times, putting key files at risk. If you’re developing your businesses’ data backup strategy, it’s important to focus on a solution which includes more than just hardware. Instead, your strategy should include working with a partner dedicated to both on-site and off-site solutions as well as keeping up with the latest security trends, threats and more. What your business truly needs is a Technology Business Partner, like SWICKtech.

Considering Your Options

As you develop your backup and disaster recovery strategy, consider your budget as well as your data volume. If you’re a small company with just an employee or two, backing up your data using a free (or relatively free) service like DropBox or Google Drive might be sufficient. Most businesses, however, need a more robust solution, such as a hybrid or private cloud.

Hybrid vs. Private Cloud Backup for Business Data

Hybrid Clouds, like Microsoft’s Azure Backup, are often cost effective and require minimal maintenance from your local Managed Service Provider. Most packages are easily scalable and offer automated software updates. Additionally, they are often better than traditional tape backups featuring shorter recovery time in the event of a failure, cost-savings and many years of data retention. Private Clouds, on the other hand, are just that --- completely private. This means your data is not stored in the same place as anyone else’s. Unlike the hybrid cloud configuration, where most updates and monitoring are automated, IT specialists actively monitor and update private cloud configurations to protect your data. This can be especially helpful if your business needs a customized environment to support line of business or ERP applications.

Other Valuable Business Considerations

t3VMFT  (PWFSOBODF BOE $PNQMJBODF Certain industries, regions and countries have rules regulating data storage. Be sure to follow these guidelines as you develop your backup plans. t5FTU  UFTU  UFTU Be sure to fully test your system before implementation. Simulate a total loss. Can you easily recover your files? How long will it take for you to get your business up and running again? If you can’t adequately answer these questions (or, if the answer to each question isn’t “quickly,�) consider another solution. t&ODSZQUJPO It’s no secret hacking and cybercrime is on the rise. Encrypting your data before backing it up ensures total security. t0O1SFNJTF 4PMVUJPOT Yes, off-site computer backup solutions are a must to keep your data secure. They will keep your business afloat in the case of a total loss. Don’t forget to develop an on-site solution as well for quick data recovery to ensure no loss of critical business data. Ultimately, a strong data backup solution should include a well-tested design for onsite and off-site recovery, giving you 100% confident your critical digital assets are fully protected.

How Can SWICKtech Help

As you can see there are many options available and important areas of focus when considering how vital digital data assets are to the success of any business in Southeastern Wisconsin. Allow SWICKtech data backup experts to take care of creating the best solution to fit your business needs. SWICKtech offers: on premise backup solutions, offsite data back up in the cloud through Azure and Offsite data backup in our own Managed Private Cloud environment. We actively monitor and take on the responsibility of maintaining a secure host for company data for hundreds of clients on a regular basis. SWICKtech also provides Disaster Recovery Services to have a backup for your backup in the event of natural disaster or total loss. Don’t fret, our SWICKtech data backup experts will make this decision turnkey for your Southeastern Wisconsin business. Contact us today to get an evaluation of your current data backup solution and recommendations for improvements. Call 262-333-0222 or check out www.TheSWICKtechWay.com.

toolmaker@TDMAW.org | 21

TDMAW is Supporting Wisconsin’s Future workforce through Scholarship


ach year MSC Industrial Supply donates 11 Kennedy toolboxes to be given to deserving Tool & Die students, as chosen by their instructors. As you can imagine, students are overjoyed to be awarded with these toolboxes! Thank you MSC Industrial!



DMAW offers the Edward L. Simeth Scholarship, sponsored by TDMAW Partner, E. L. Simeth Company, twice a year. The scholarship awards up to $500.00 per semester for students enrolled in a Machine Tool Operations Program or Tool & Die Program at any accredited Wisconsin technical college. To qualify, applicants must meet the following requirements:

Innovative tool dispensing solutions giving YOU control, not your supplier. Companies that utilize an AUTOCRIB system typically experience... ◆ Reduce Item Usage 20% or more ◆ Reduce Inventory Levels ◆ Control 2nd & 3rd Shift Tool Usage ◆ Reduce Walk-Around / Trip Time ◆ Reduce Receiving Costs ◆ Eliminate Obsolete Parts ◆ Reduced Shipping & Expediting Costs

t"QQMJDBOU NVTU CF B SFTJEFOU PG Wisconsin t.VTUDPNQMFUFBOBQQMJDBUJPO t.VTU DPNQMFUF BO FTTBZ BT EJSFDUFE PO the application form Thank you Steve Simeth of E. L. Simeth Company for making this award possible!

22 | TDMAW HQ (262) 532-2440

Contact your ApTex Salesperson or our VMI Specialists for more info!

Mark Meier

414.915.1073 markm@aptexinc.com

Sandi Melville

414.350.5803 melville@aptexinc.com

Roxanne Mueller

920.366.1362 mueller@aptexinc.com

262.548.8960 aptexinc.com

W227 N878 Westmound Dr. Waukesha, WI 53187



For more information visit tdmaw.org rs 80 Yea ting C e l e b ra


Bank—Equipment Loans US Bank

Charles Starck | (920) 791-9089 www.usbank.com

Computer Services for Business Swick Technologies

Gary Swick | (414) 257-9266 www.swicktech.com

Insurance—P&C, Health & Workers Comp Federated Insurance


Supplies/Full Line E.L Simeth - Milwaukee Steve Simeth | (414)771-9270 www.elsimeth.com

MSC Industrial Supply

Heat Treating

Sales | (262) 703-4000 www.metalworking.mscdirect.com

ThermTech of Waukesha, Inc. Kirk Springer | (262) 549-1878 www.thermtech.net

Sussex Tool & Supply - Sussex Sales | (262) 251-4020 www.sussextool.com

Sponsors Red Level Sponsors ApTex Waukesha Industrial Peter Delany | (262) 970-4833 www.aptex.biz

Weller Machinery Mike Weller | (262) 251-1500 www.wellerusa.com

The Kinetic Co., Inc. Jared or Cash Masters | (414) 425-8221 www.KnifeMaker.com

Tushaus & Associates LLC Jared Knoke | (414) 774-1031 Ex 245 www.tushauscpa.com

White Level Sponsors United Milwaukee Scrap | Schulz's Recycling Midwest Forman Recycling Nick Schrubbe | Jolene Draxler | Sue Czarniak (414) 698-0765 | (715) 536-7141 | (414) 351-5990 www.umswi.com | www.schulzs.com www.midwestformanrecycling.com Morris Midwest Eric Grob | (414) 586-0450 www.morrismidwest.com

Blue Level Sponsors Alro Specialty Metals Inside Sales | (800) 365-4140 www.alro.com

Haas Factory Outlet Bill Dymond | (262) 373-5050 www.haasfactoryoutlet.com

Bell-Well Sales Co. Tom Schoenecker | (262) 781-3670 www.bellwellsales.com

Industrial Fluid Solutions Sales | (920) 783-6600 www.industrialfluidsolutions.com

Cincinnati Tool Steel Co. Ronald Cincinnati | (800) 435-0717 www.cintool.com

Schroeder Group, S. C., Attorneys at Law Michael Kruse | (262)754-1338 www.tsglaw.com

Citizens Bank John Schmitz I (262) 548-0208 www.citizenbank.com Huntington Bank Kyle Haug | (262) 703-3726 www.huntingtonbank.com

von Briesen & Roper, S. C. Marcus Loden | (608) 661-3962 www.vonbriesen.com

Fox Valley Metrology Kit Krabel | (920) 426-5894 www.foxvalleymetrology.com

toolmaker@TDMAW.org | 23

rs 80 Yea ting C e l e b ra

W175 N11117 Stonewood Drive Suite 204 Germantown, WI 53022

Join us for dinner and information about the InWisconsin program.

Tuesday, March 7, 2017 Mark Hogan, Secretary & CEO of the Wisconsin Economic Development Corporation.

Marriott Milwaukee West 10499 Innovation Drive Waukesha

Visit TDMAW.org/events/ for details and registration.

Profile for Tool Die, Machining Association of Wisconsin

Winter 2017 TDMAW Surgeons of Steel  

Winter 2017 TDMAW Surgeons of Steel  

Profile for tdmaw