Precision News May/June 2014

TTHHIISS IISSSSUUEE:: Development and Success / TaxingQuestions / Workplace Leadership / The Fire Triangle

TMTMTMPrecisionNews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas

TM

ARIZONATOOLING.ORG MAY/JUNE 2014

PN HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP

NTMA SW BRINGS YOU:

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UNANTICIPATED PATH OF

DISCOVERYA BUSINESS OWNER SETS OUT

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WE ARE IN DANGER OF LOSING OURCOUNTRY’S

ASSETSIGNORING THE LONG-TERM

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Champion Risk & Insurance Services, L.P. is a proud supporter of the NTMA San Diego and the San Francisco Bay Area Chapters. We provide the NTMA Metalworkers’ Program, a group of competitively priced, specialty coverages that are essential to precision machining operations. This program is not offered by generalist brokers.

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The Future of Manufacturing

Forecasting the Future:Additive Manufacturingby Glenn Van Noy

If you were going to forecast the future of manufacturing, you would be looking at a company like Forecast 3D... A progressive, creative, company that pushes the limits of technology through imaginative and thoughtful problem solving with just the right mix of talented people and a highly disciplined process.

What does Forecast 3D do exactly? Rapid prototyping, 3D printing and short run production services primarily for the aerospace industry, medical devices and consumer products. They are a multi-million dollar company and the oldest privately held facility of its kind in the U.S. Forecast 3D is ITAR registered, often handles sensitive intellectual property and innovative specialty parts. But, the people at Forecast can get just as excited and passionate about this “really cool thing” from a backyard in-ventor — maybe even more so because of Forecast’s humble beginning.

Forecast 3D began in 1994, in Corey and Donovan Weber’s garage casting RTV parts. Within a year, they moved into their first facility and purchased their first 3D Systems SLA machine. Initial-ly, Forecast 3D spent a great deal of time educating its customers

about 3D printing, stereolithography (SLA) technology and its extraordi-nary possibilities. Corey and Donovan Weber teamed with the creators of the SLA technology, 3D Systems, to include RTV castings to their service offerings. 3D Systems supplied Forecast 3D with newly built SLA models that fueled Forecast 3D’s growth into a leader in the RTV prototype and short-run production service industry. Today, Forecast 3D offers latest in Stereolithography (SLA), Selective Laser Sintering (SLS), CNC Machining, Injection Molding, ProCast RTV Tooling, Hybrid RTV Tooling, and Metal Casting in a 38,948 square foot facility in Carlsbad, CA with 82 employees.

SO WHAT MAKES FORECAST SO SPECIAL? Their founders, Corey and Donovan lead with an eye to the future and believe in their people to get the job done right. Their single greatest resource is their employees: a gifted team of engineers, master craftsmen, and every other skill set it takes to run a modern, world-class facility.

Quality and craftsmanship is first and foremost. Forecast 3D uses only the best in Additive Manufacturing technologies and materials. Ongoing research and development, the creation and maintenance of proprietary technologies assure their customers flexibility, efficiency and the best product possible. Forecast 3D’s customer service sets them apart from their competition and often draws customers away from their biggest, nearby competitor.

The Weber brothers have one eye on the shop and one eye on the future, with a singular goal in mind: offer the customer the ideal manufac-turing solution for a specific application.

For more information about Forecast 3D, go to www.forecast3d.com.

may/june2014 arizonatooling.org PrecisionNews 01

Contents12

16

MAY/JUNE 2014 VOLUME 4 • ISSUE 3

PrecisionNews

The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas

EXECUTIVE DIRECTOR & EDITOR Chris Mignella

CONTRIBUTING WRITERSJamie Beauvais, David Lair, Margaret Jacoby, Omar S.Nashashibi, Michele Nash-Hoff, Erik Skie, Ted Szaniawski

ADVISORY BOARDChris Mignella, Lisa Ellard, Glenn VanNoy, Gail Houser

EDITORIAL, ADVERTISING & ADDRESS CHANGESChris Mignella, Executive Director & EditorPhone: 602.388.5752Email: [email protected]

Precision News is published bi-monthly by the ArizonaTooling & Machining Association (ATMA). Opinionsexpressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes noliability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork.Reproduction in whole or part without the expressedwritten consent from ATMA is prohibited. Precision Newsis the registered trade name of this publication.

Copyright ©2014 by ATMA. All rights reserved.

TM

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OOUURR MMIISSSSIIOONN::

“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

Features Departments

How the Decision to Sell Led A Business Owner Down An Unanticipated Path of DiscoveryThis is a story about a successful manufacturing business owner who set out a plan to sell his business. But thestory didn’t play out exactly as he anticipated.

We Are In Danger of Losing Our Country’s AssetsWe Americans blithely ignore the long-term effects of allowing foreign corporations to purchase the assets of our country in the form of companies, land, and resources.

03 President’s Letter

04 Policy Matters

08 People Power

10 Feature Focus

21 NTMA Initiatives

22 Websites that Work

22 Arizona Chapter Info

28 San Diego Chapter Info

29 NTMA Membership

30 North Texas Chapter Info

32 Shop FloorCover photo: Gear milling. (Sandvik Coromant)


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The last couple of months have had some events and gatherings that I wanted to highlight for you.

First our Arizona chapter had a great meeting in February with a change in format to have two roundtable discussions. We gathered to discuss topics of “In Process Metrology” and “Human Resources – Attracting and Retaining Workforce”.The group discussions were informative with industry colleagues sharing experiences and with input from knowledgeableassociates. It was a great evening and the majority in attendance had very positive reviews and requests for more suchmeetings this year. If you missed this meeting please plan to attend the next one we’re planning for June. We’re working on topics and improvements to our format and want your participation and suggestions.

In February the ATMA along with Arizona Commerce Authority took a road trip to visit manufacturing companies in the Flagstaff and Prescott areas. We took the message of the Arizona Manufacturing Partnership to companies in the northern and central regions of our state to talk about the AMP mission of: changing the perception of manufacturing in our state; working with educators to better fill the workforce requirements in manufacturing; and establishing open lines of communication between manufacturing companies across our state. Collectively manufacturers in Arizona can have ahuge voice is shaping workforce efforts and that’s what we know AMP can help to focus.

In March, I attended the “M.F.G. Meeting” Conference which joined the NTMA, PMA, and AMT in one huge event held herein Phoenix. What a wonderful conference. This was another opportunity to meet and talk with your piers from across thecountry and attending informative keynote presentations, roundtable discussions, association meetings, as well as anopportunity to interact with national sponsors of the event which all support our daily business activities. Participating inthese kinds of national event helps broaden your perceptive of our industry and share with others in our manufacturing family.

At this meeting Dynamic Machine received its 35 Year Membership Certificate. What a great honor to be recognized as along time NTMA member. But I must admit although 35 years sounds impressive we have members in Arizona that exceedour number. Our most senior member is Powill Manufacturing at 54 years! They are followed by Precision Die and Stamping,Modern Industries, Osborn Products and Zircon Precision ranging in membership from 44 to 41 years! These fellowmembers are testament to the benefit and value they receive from a national trade association like the NTMA. Whether it is for the government advocacy, affinity programs, business development assistance or networking opportunities, thesecompanies along with many of our other longtime members see the value in sharing benefits and experiences with othermanufacturing companies. May I say a personal Thank You to these five companies for your membership, participation, andcontribution throughout the years.

Also in March, the Arizona Tech Council held its Aerospace & Defense Forum. This was another great event to again havewith the opportunity to interact with manufacturers from across Arizona.

But these were only some of my experiences. I’d like to hear from some of our readers. If you love manufacturing and want toshare an experience drop me a note.

Thank you for your time. I’m excited about manufacturing, especially in Arizona, and working with fellowmanufacturers across our great state we can continue to improve our industry development and success.

Hope to see many of you at an upcoming event. As always, continued to success to each of you.

DAVID LAIRVice President, Dynamic Machine & Fabrication Corp.and President, ATMA

Hello, P.N. Readers!

First WordPRESIDENT’S LETTER

04 PrecisionNews arizonatooling.org may/june 2014

This phrase, the origin of which dates tothe 1930’s, still holds true today.Another great line used in Washington is,“one man’s pork is another man’s prize.” TheU.S. tax code reflects both these truisms –everyone wants tax reform and a balancedbudget but no one wants to pay for it or giveup their prized provisions.

This is the great dilemma facing those fewlawmakers in Washington who are seriousabout reforming the tax code. Whichprovisions should they eliminate in the namea simpler code and lower income tax rates?The R&D Tax Credit, which is among themost politically popular provisions but will“cost” the federal government $2.2 billion inlost tax receipts in 2014? The IRS will forgo$74 billion in tax collections in 2015because of Bonus Depreciation, which 81%of NTMA members reported using last year.Over 91% of companies report they benefitfrom Section 179 Equipment Expensing, the

Congressional Joint Committee on Taxationsays this is a revenue loser to the tune of$20 billion over the next two years.

Of course, none of this factors in theamount of tax revenue generated by thepurchase of equipment, the investment inresearch, and the hiring of people in anexpanding business. Under Congressionalrules, policymakers traditionally cannot takethose numbers into account so all theseprovisions, on paper and using “Washingtonmath,” cause the government to take in lessrevenue. Bring in the politics and thisbecomes even more complicated. One sidesays eliminating any credit or deduction is atax increase while the other says these arespecial interest giveaways and loopholes.

In many ways, all sides are correct, part ofthe reason Congress has made more than15,000 changes to the tax code since 1986but never once simplified it, let alone passedmeaningful reform.

Tax policy affects small businesses,especially manufacturers in many ways. Theobvious is the amount of money left over to reinvest in the business. However, thereare more, less visible aspects. Specific taxprovisions affect the ability to borrow;particularly for a pass-through, which mustuse a personal guarantee to secure a loan.An Ohio metalworking business reportedtheir lender told them that without BonusDepreciation, they would not have receivedthe lower borrowing rate they secured. A tool and die shop in the Northeast hadconsistently spent over $700,000 per yearsince the Great Recession on newequipment; but because of an expiring taxprovision, only set aside $100,000 this yearfor maintenance instead of investment.

continued on page 06

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Policy MattersBECOME A VOICE FOR CHANGE

Photo: NTMA

+

fyi:Congress has made

more than 15,000 changes to the tax code since 1986 but never once simplified

it, let alone passed meaningful reform.

A Taxing Questionby OMAR S. NASHASHIBI

“Don’t tax you, Don’t tax me, Tax that fellow behind the tree.”

– Senate Finance Committee Chairman Russell B. Long (Louisiana), 1973

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

Call Kerry [email protected]

• Glass• Wood• Plastic• Paper• Cardboard• Certified Material Destruction• All Ferrous Grades

Consolidated Resources Inc.4849 West MissouriGlendale, AZ 85301Office: 623.931.5009Fax: 623.931.5852

www.consolidatedresources.com

20thAnniversary

Consolidated Resources, Inc.Industrial Recycling Specialists

ATMA MEMBER


ULBRICH STAINLESS STEELS & SPECIAL METALS, INC.WWW.ULBRICH.COM

A Strong ConnectionStainless steel and special alloys designed for the Aerospace Fastener market are in stock at Ulbrich of California

Forms: >Strip, annealed and tempered (.001 to .125 in gauges) >Round wire (.040 to .375 in diameters)>Flat and shaped wire

Alloys: >A2861 Iron Nickel >302, 321, 17-7 PH >Waspaloy 2, Inconel3 625 and 718, Monel3

>Titanium and Titanium alloys

559 456-2310 C [email protected]

1 Trademark of Allegheny Companies2 Trademark of United Technologies Corporation3 Trademark of Special Metals Corporation group of companies


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The most common theme among manu-facturers is we need simplicity and stability inthe tax code. One person recently said, “justtell me how much I have to pay for the next10 years and then I can plan a businessstrategy.” Manufacturers are frustrated, and rightfully so. Congress extends taxprovisions at 11:59PM on December 31st,congratulates themselves, and expect theeconomy to grow. In my job as a lobbyist forNTMA, I have to educate these lawmakersthat our equipment takes months to placeinto service and certainly cannot be“switched on” by the midnight deadline.

The first week of April, the Senate FinanceCommittee passed yet another bill extendingroughly sixty expired tax provisions. At the urging of groups such as NTMA, theCommittee Chairman, Sen. Ron Wyden (D-OR) extended most of the provisionsretroactively to January 1, 2014 and for all of2015, providing at least some certainty forthe next year. The package included severalprovisions important to manufacturers such

as the R&D Tax Credit, Section 179 Equip-ment Expensing, and Bonus Depreciation formachines placed into service by December31, 2015. Most significantly, ChairmanWyden said this is the last tax extension billhe will move and will focus his efforts oncomprehensive tax reform.

In the U.S. House of Representatives,retiring Ways and Means CommitteeChairman Dave Camp (R-MI) released hisdraft bill to overhaul the revenue code. Metwith some skepticism by Wall Street andothers, the bill goes a long way to help smalland medium sized domestic manufacturersachieve their goal of simplicity and stability.While the draft proposal eliminates someprovisions such as Bonus Depreciation and is not as generous on other credits and deductions, it removes much of the redtape and lowers the top income tax rate to25% for all domestic manufacturing income.This is an important victory for NTMAmembers in the first round of the tax reformbattles ahead.

While it is difficult to move any majorlegislation in an election year, tax reform iscertainly gaining traction in Washington. The few serious lawmakers left in thenation’s capital are working behind thescenes on what could be a major economicstimulus bill – comprehensive tax reform. We are optimistic that in 2015 we could seean earnest effort to overhaul the code afterall the legwork done in 2014.

There is no question there will be winnersand losers in tax reform. This is why, amongall other sayings in Washington, the follow-ing holds true above all else – “if you don’thave a seat at the table, you’re on the menu.”

OMAR NASHASHIBI is a foundingpartner at The Franklin Partnership, LLP, a bi-partisan government relations firmretained by the National Tooling andMachining Association inWashington,D.C.

Learn more at: www.franklinpartnership.com

Policy Matters

A Taxing Questioncontinued from page 04

NTMA SOUTHWEST REGIONAL CONFERENCE

D A L L A S, AU G U S T 1 - 3 , 2 0 1 4!$1Save the date and join us for our 2nd

annual regional conference!We’ll be heading to Dallas for some Texas-sized networking and breakout sessions to assist you in growing your business.

Conference will be held at the Dallas Fort Worth Airport Marriot8440 Freeport Parkway Irving, Texas 75063

Conference presented by the North Texas, Arizona, San Diego,Rocky Mountain, and Northern Utah Chapters of the NTMA.

Registration Information will be coming soon!!$1


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A new Career Builders survey of over 3,000 full-time employees revealed that one in fiveemployees plan a career change in 2014. The survey examined employees from the private sectorspanning several different industries and company sizes. According to the results, job satisfaction is the primaryreason, with nearly 20 percent of employees being dissatisfied in their current job. Salary concerns and notfeeling valued were cited as the most common causes of job dissatisfaction.

While the survey revealed the two most common causes of employee dissatisfaction, causes can be hard toquantify and narrow down to leading causes that company leadership can work to address. The Career Buildersurvey also showed that limited advancement opportunities, workplace stress, limited or no salary increases,struggles with work/life balance, and poor relationships between supervisors and workers as other commoncauses and all have long-term damaging effects on a company. What’s worse is the more employees that facethese challenges, the more likely this will become the underlying “company culture.”

The damage companies experience from dissatisfied workers can be long-term, especially if the employeedoesn't leave the company. A recent Gallup survey which revealed an alarming statistic that 70 percent ofemployees are disengaged in the workplace, and was often also caused by employee dissatisfaction. TheGallup research has linked employee engagement to specific business outcomes that directly affect the bottomline, such as higher productivity, profitability, and customer ratings.

I shared in a recent blog post five warning signs an employee is getting ready to leave. If supervisors notice newbad habits such as excessive use of personal time, poor performance or a change in attitude, these are signs theemployee may be planning to leave. The important factor with an employee leaving is ‘Why’. By looking for theabove warning signs, managers can address the issues or cause, and have a greater chance of retaining theemployee. There are high costs associated with employee turnover, which makes effective HR solutions evenmore critical.

If as the Career Builder survey suggests and 20 percent of your employees are leaving, it’s time to evaluate thebusiness and make improvements. Opening lines of communication, and educating employees on their purposein the company is a start. But, for greater results, more extensive organizational change may be needed. Formore help with employee retention, download a copy of Practical tools to manage costly employee turnover.

To learn more about how our human resources support services can benefit your business give us a callor send an e-mail.

MARGARET JACOBY is the president of MJ Management Solutions, Inc. She can be reached at [email protected] more at: www.mjms.net

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Employee Engagement: One in five of your employees is leaving in 2014by MARGARET JACOBY, SPHR

People PowerYOUR MOST VALUABLE RESOURCE


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6 QuestionsEveryEmployee Should Be Able To AnswerOne of a company’s highest performing employees seemed to have lost his enthusiasm for work. He went from super dedicated to detached.Something just wasn’t right. So his boss, Justin Rosenstein, whosephilosophy was addressed in a recent Inc. article, took the employee for awalk and asked him one simple question: “What’s wrong?”

At first the employee couldn’t pinpoint the source of his malaise. He said,“I’m not sure what I’m doing here and I wonder if I should even be doing thiswork.” Rosenstein started asking questions. “When you go back to yourdesk, what’s the next project you’ll accomplish?” and “Why are you going todo that?” The employee struggled to come up with meaningful responses.

The missing ingredient --- the reason that the employee was struggling --- isthat organizational and role clarity didn’t exist. Without role clarity employeesdon’t understand what they’re expected to do and how their work fits intotheir organization’s master plan. This lack of focus is bound to lead toduplicated efforts, deflated morale and hours spent on unimportant tasks.

Rosenstein believes that there are three essential elements that supportsuccessful organizational and work performance --- Clarity of Purpose,Clarity of Plan and Clarity of Responsibility.

Only with a clearly defined purpose in mind can employees be trusted tomake good decisions. Once purpose is understood, a plan --- a master listof what needs to get done must be established. However, without clarity ofresponsibility the chances of dropping the ball at critical moments areexponential. All three components are essential.

To establish whether or not you have Clarity of Purpose, Clarity of Planand Clarity of Responsibility in your organization we recommend that youask your employees the following questions:

• What are you working on right now?• Are you confident that it’s the most important thing you could be doing?• Do you know who is waiting on you?• Do you know to whom you should go for support?• Do you know how your work fits into the overarching product/service we provide?• Do you know why our product/service matters?

Listen carefully to what your employees have to say. If their responsessound like our example employee --- “I’m not sure what I’m doing here.” or “I wonder if I should even be doing this work.” You should ask yourself areally critical question. Should my organization consider a process to gainorganizational and role clarity?

To learn more about building a benchmark and assessing the talents ofyour workers so you can ensure effective job fit and achieve high levelsof performance give us a call or send us and email.

TED SZANIAWSKIPrincipal, HRGroup, LLC

Contact by email at: [email protected] more at: www.hrgrouponline.com


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If we were to think of the gloves thatour father wore while working in theyard it might have been a pair of niceleather gloves or even leather andcotton combination. These glovesstill exist today but they are the past.The past is great but now there issomething better.

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ATMA_0202_FINAL_Layout 1 6/18/11 7:00 AM Page 9

How the Decision to Sell Led a Business Owner Down an

Unanticipated Path of DiscoveryThis is a story about a successful manufacturing business owner who set out a plan to sell his business. But the story didn’t play out exactly as he anticipated.


Feature Story//PrecisionNews

Our story begins more than 20 years ago, in a 6 foot by 9 foot working space. From these humblebeginnings he built a full service business that designs and manufacturers solutions for some of the most complexand rigorous shipping environments in the world. The company weathered the most recent recession, and waswell-positioned for continuing growth.

BY ERIK SKIE

How the Decision to Sell Led a Business Owner Down an

Unanticipated Path of Discovery


But family, faith, and personal adventures have always played a big part in the owner’s life.So in 2013, after more than two decades in business, he decided that selling might be the best way to secure hisfinancial future and create the personal flexibility to pursue his next adventure. With the recession fresh in his mindand a business that was performing well, he also felt this was the best way to reduce the personal risk and stress thathad become so familiar.

However, going through the selling process transformed his original goal. Instead of selling the business, the owner is now working with his leadership team to ensure that the company continues the legacy he set out to create morethan 20 years ago.

Crystallizing goals and dreamsThe decision in 2013 to explore the sale of the company was one step in a planning process that started back in 2009.At that time, the owner wasn’t sure exactly what transition plan was best for the business, but his goal was absolutelyclear: maximize business value and create lasting opportunities for those who had worked beside him to build thecompany. He also sought to preserve the culture and values that had been so critical to the company’s success. To dothis, he approached the business like a homeowner views improvements: do those things that have the broadest appeal to the widest range of potential buyers and the value will follow. Because he was creating real value, he knewthere would be multiple suitors from which he could choose the best for the company.

Creating lasting valueThe owner began to put a critical eye to each of the four engines of a business that create lasting value (financial,growth, leadership, and execution). He engaged his leadership team members in the discussion so they could betterunderstand how their day-to-day efforts improve the value and stability of the business. Line managers began to take a broader and more holistic view of their role. In essence, more of the management team began to think and operatelike owners. Business performance continued to improve, and the value in the business that was once so dependent on its founder suddenly translated into sustainable enterprise value that went beyond one person’s capabilities.

Personalizing the planIn tandem with his business‐building efforts, the owner began to address another area of inflexibility that was limitinghis transition options and creating stress: his concentration of personal wealth within the business. As is the case withmany privately held business owners, the company was his only source of income. The owner realized that anylong‐term adverse impacts on the company would also have significant personal consequences.

The owner created a plan to diversify his stake in the business and increase his personal liquidity. The idea was simple: use financial resources created within the business to reduce personal obligations and increase personalliquidity. That way, if business conditions eroded the owner would not be dependent on the business income to meetnon-business obligations. This was accomplished by creating a capitalization plan that slowly shifted excess capital topersonal liquidity.

The implementation of this plan created some surprising business benefits. Now that the business had a line of credit,managers became much more aware of the need to actively manage the collection of accounts receivable and monitorinventory levels. Over a five-year period where sales increased, the working capital requirements of the businessactually decreased. The owner not only created his own liquidity and financial security, he reduced business risk andmanagers became more effective at managing working capital.


/

Contact the Arizona Tooling and Machining Association and discover howyou can put your unique skill-set to work in Arizona and give your companythe Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

[email protected]

ATMAP R E C I S I O N

Arizona Tooling & Machining Association

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Planning for transition and preserving the legacyFast forward five years to 2013. The owner was now prepared totransition the business. He was in a great place personally, and thebusiness was performing at peak levels. So why did he changedirection? Suffice it to say that the journey of prepping the business forsale created a strong desire in the owner for his team members to enjoythe fruits of their labor. Selling the business, while potentially apositive, could put that goal at risk. For the owner, continuing to ownthe business was the surest way to accomplish his personal andbusiness goals, and preserve the legacy he has worked so hard to create.

Five years of work did not go to waste. The owner has an even higherlevel of flexibility today than he did five years ago along with theconfidence that whatever the market brings, his business has the

sustainability to work through the challenge. He continues topersonalize the plan, build value, and evaluate his dreams to makesure they become a reality.

What is your dream?Whatever your goals and dreams for your business, one thing isclear: planning ahead creates more options and flexibility for theinevitable changes in direction, challenges, and opportunities thatcome with business ownership.

ERIK SKIE is Managing Principal, Manufacturing and Distribution, CliftonLarsonAllen. Erik can be reached [email protected] or 630.368.3645.

How the Decision to Sell Led a Business Owner Down an Unanticipated Path of Discoverycontinued from page 13

/PrecisionNews

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APrecisionNews SPECIAL REPORT

We Americans blithely ignore the long-term effects of allowing foreign corporations to purchase the assets of our country inthe form of companies, land, and resources. We are selling off our ability to produce wealth by allowing so many Americancorporations to be purchased by foreign corporations.

We are in danger ofLosing Our Country’s Assets

BY MICHELE NASH-HOFF

Chinese companies are even acquiring healthcare companies:WuXiu Pharma Tech bought AppTec Laboratory Services, andMindray Medical International bought Datascope Corporationin 2008; BGI-Shenzhen bought Complete Genomics in 2012, and Mindray Medical International bought Zonare MedicalSystems in 2013.

Wall Street and the finance industry are not immune fromacquisitions by Chinese corporations: Shenzhen New WorldGroup bought Sheraton Universal Hotel in 2011; China AviationIndustrial Fund bought International Lease Finance Corporationin 2012; and Fosun bought One Chase Manhattan Plaza in 2013.

One of the earliest acquisitions by a Chinese corporation waswhen the Hoover brand was sold to Hong Kong, China-basedfirm Techtronic Industries after Maytag that owned Hoover wasacquired by Whirlpool in 2006.


It is not just foreign companies buying our assets that is theproblem - it is the state-owned and massively subsidizedcompanies of China that are dangerous because China uses its state-owned enterprises as a strategic tool of the state. By pretending they are private companies abiding by free-market rules to our detriment makes us the biggest chumps on the planet. German economist Fredrich List, wrote, “Thepower of producing wealth is...infinitely more important thanwealth itself.”

How many Americans paid attention to the news last year that Smithfield Foods was acquired by a Chinese corporation?Last September, shareholders approved the sale of the companyto Shuanghui International Holdings Limited, the biggest meat processor in China. Smithfield bought 100% of FriedeGoldman United, and in 2012, A-Tech Wind Power (Jiangxi)bought 100% of Cirrus Wind Energy.



The 2013 Annual Report to Congress by the U.S.-China Economic andSecurity Review Commission states, “China presents new challenges forCFIUS, because investment by SOEs can blur the line between nationalsecurity and economic security. The possibility of government intent or coordinated strategy behind Chinese investments raises nationalsecurity concerns. For example, Chinese companies’ attempts to acquiretechnology track closely the government’s plan to move up the value-added chain. There is also an inherent tension among state and federalagencies in the United States regarding FDI from China. The federalgovernment tends to be concerned with maintaining national securityand protecting a rules-based, nondiscriminatory investment regime. The state governments are more concerned with local economicbenefits, such as an expanded tax base and increased local employment,rather than a national strategic issue, especially as job growth hasstagnated.”

The report, continues, “China has amassed the world's largest trove ofdollar-denominated assets. Although the true composition of China'sforeign exchange reserves, valued at $3.66 trillion, is a state secret,outside observers estimate that about 70 percent is in dollars. In recentyears, China has become less risk averse and more willing to investdirectly in U.S. land, factories, and businesses.”

Did we let the USSR buy our companies during the Cold War? No, wedidn’t! We realized that we would be helping our enemy. This was prettysimple, common sense, but we don’t seem to have this same commonsense when dealing with China.

China has a written plan to become the Super Power of the 21stCentury. With regard to China’s military buildup, the report states,“PLA modernization is altering the security balance in the Asia Pacific,challenging decades of U.S. military preeminence in the region...ThePLA is rapidly expanding and diversifying its ability to strike U.S. bases,ships, and aircraft throughout the Asia Pacific region, including thosethat it previously could not reach, such as U.S. military facilities onGuam.”

It is time to wake up to the real dangers of our dangerously high tradedeficits with China. The Communist Chinese government is not ourfriend. They are a geopolitical rival that is striving to replace the UnitedStates as the global hegemony. We should not let Chinese corporationsacquire any more of our energy companies or technology-basedcompanies if we want to maintain our national sovereignty.

MICHELE NASH-HOFF is the President ElectroFab Sales and theauthor of Can American Manufacturing be Saved? Why We Shouldand How We Can, available at www.savingusmanufacturing.com or www.amazon.com

The acquisition of American companies by foreign corporations isn’tsomething new. Many prominent companies founded in America have been bought by corporations from the United Kingdom, France,Germany, Italy, and other European countries in the latter half of the20th Century. Most American don’t realize that such iconic Americancompanies as BF Goodrich and RCA are now owned by Frenchcorporations, and that Carnation and Gerber are now owned by Swisscorporations.

Most foreign countries don’t allow 100% foreign ownership of theirbusinesses, but sadly, the United States does not exercise the sameprudence. We sell our companies to them, and they almost never selltheirs to us. This tilted playing field has gutted America’s economicpower.

What is enabling Chinese companies to go on a buying spree ofAmerican assets? Trade deficits - our ever-increasing trade deficit withChina over the past 20 years is transferring America’s wealth to Chinaand making millionaires out of many Chinese. In 1994, our trade deficitwith China was $29.5 billion, and it grew to $83.8 by 2001 when Chinawas granted “Most Favored Nation” status and admitted to the WorldTrade Organization. By 2004, it had doubled to $162.3 billion. After aslight dip in 2009 during the depths of the Great Recession, the tradedeficit grew to $318.4 billion in 2013. If you add the annual trade deficitsfor the past 20 years, it totals $3.15 trillion. China now has over onebillion serious savers and more than a million millionaires whose assetswhen combined provide billions to spend to buy our assets.

In addition, it is our trade deficit with Japan that has enabled Japanesecorporations to go a buying spree of American assets since the 1980swhen such companies as Columbia Pictures Entertainment wasacquired by the Sony Corporation of Japan in 1989, and BridgestoneCorporation of Japan bought Firestone in 1988. However, our highesttrade deficit with Japan of $84.3 billion in 2007 was nearly one third ofour current trade deficit with China. While we are still transferringwealth to Japan, it is a democracy and doesn't have armed missilespointed in our direction.

In theory, we have the means to protect ourselves from this. CFIUS, theCommittee on Foreign Investment in the United States, has the power to regulate, approve and deny these purchases. However, it is rare for the CFIUS to block deals. “During 2011, the most recent year with dataavailable, the CFIUS was notified 111 times of deals that fell under its purview. Of those 111 covered deals, 40 were investigated and just five were withdrawn during that investigation...This year, Chinesecompanies have bought 10 companies worth $10.5 billion, saysThomson Reuters. That’s more than 20% of the 484 U.S. companies thathave been bought by foreign companies this year worth $43.6 billion,Thomson Reuters says.”

We are in danger ofLosing Our Country’s Assetscontinued from page 17


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PrecisionNews// NTMA INITIATIVES

Though most of our members are small- to medium-sizedcompanies, the power of the association can help you dobusiness like a large corporation.

REVENUE GROWTH• We organize regular business-to-business purchasing fairs,designed to operate like speed dating for suppliers. We invite100 or more buyers from large companies and then give youopportunities to briefly pitch your products and services. As aresult attendees leave with good contacts and solid leads,leading to increased business. Companies have been awardedmillions of dollars in contracts as a direct result of these events.

• We offer a program called Members First, designed to helpmembers turn to each other to meet needs. Perhaps your nextcustomer is an NTMA peer? Or perhaps an NTMA memberwould make an excellent vendor for you? Members First helpsmake the connections.

• By interacting with fellow members in your local chapter, youmay discover new business opportunities, or ways to worktogether with peers to increase business or market yourselvescooperatively.

COST CONTROL• We offer discount programs with several large suppliers(including Grainger, UPS and Yellow Freight), allowing you toleverage NTMA’s combined buying power for your own benefit.

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Our decision resources allow you to be smarter about howyou use your resources, resulting in greater efficiencies andlower costs. Learn more at: www.ntma.org/initiatives

How Can NTMA Help You Grow Your Business?Profitability grows when revenue increases and costs are controlled. NTMA can help you with both.

Get Turned-Onto the ATMA!Contact Chris Mignella at:[email protected]



2014 ATMA BOARD OF DIRECTORS

PresidentDAVID LAIR

Dynamic Machine & Fabricating

Vice PresidentJOSEPH KOENIGExactitude, LLC

SecretaryMIKE RAKOWSKY LandMark Precision

Executive DirectorCHRIS MIGNELLA

TrusteeDANTE FIERROSNichols Precision

TreasurerZACH WILSTERMAN Profile Tool & Engineering

BOARD MEMBERS

Gary WatkinsMarZee

Greg ChambersNoranco/Jet Division

John O’LearyArizona Industries for the Blind

Mark WeathersExcaliber Precision

Bruce TreicherZircon Precision

Associate Member LiaisonDavid SenkforTopGun Consulting

ATMA AmbassadorMaxine Jones

[email protected]

Arizona Tooling & Machining AssociationA Chapter of the National Tooling & Machining Association

P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752

[email protected]


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City of Phoenix – Community & Economic Development Programphoenix.gov/ECONDEV/index.html

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National Association of ManufacturersNAM.org

One Voice Advocacymetalworkingadvocate.org

U.S. Department of Labordol.gov


David Wright Accuwright Industries 480-892-9595

Rob Markson Action Machine 692-233-0883

Michael Holmes AeroDesign & Manufacturing 602-437-8080

Chuck Eriksen Allied Tool & Die Company, LLC 602-276-2439

Charles A. Van Horssen Axian Technology, Inc. 623-580-0800

John O’Leary AZ Industries for the Blind 602-269-5131

Paul Bowman B3 Precision, LLC 480-250-3366

Bill Boat B&B Fabrication & Machine 602-684-0393

Kevin Burbas B&B Tool, Inc. 520-397-0436

Jeff Buntin Barnes Aerospace - Apex Mfg. Div. 602-305-8080

Norela Harrington Bent River Machine, Inc. 928-634-7568

Mark Clawson C & C Precision Machining 480-632-8545

Joe Cassavant, Jr. Cassavant Machining 602-437-4005

David Bardin Chips, Inc. 602-233-1335

Mark Musgrove CJ Manufacturing 480-517-0233

Ron Gilmore Continental Precision, Inc. 602-278-4725

Allen Kiesel Creative Precision West 623-587-9400

David Lair Dynamic Machine & Fabricating 602-437-0339

Diana Buchanon-Lovett Eclipse Carbide, Inc. 480-214-3719

Joseph J. Koenig Exactitude, LLC 602-316-6957

Mark Weathers Excaliber Precision Machining 623-878-6800

Jeff Hull Foresight Technologies 480-967-0080

Tim Malin Helm Precision, Ltd. 602-275-2122

Jeremy Schalk Hi-Tech Machning & Engineering 520-889-8325

Robert Howell Howell Precision Sheet Metal 623-582-4776

Don Theriault Industrial Tool Die & Engineering 520-745-8771

Jim Carpenter Kimberly Gear & Spline, Inc. 602-437-3085

Don Kammerzell K-zell Metals, Iinc. 602-232-5882

Matt Kalina LAI International, Inc 480-348-5942

Brian Walski Landmark Precision 480-940-4002

Ernest Apodaca Layke, Inc. 602-272-2654

Michael C. Majercak, Jr. Majer Precision 480-777-8222

Edward Wenz MarZee, Inc. 602-269-5801

Arle Rawlings Mastercraft Mold, Inc. 602-484-4520

Jeff Meade Metalcraft 480-967-4889

Joe Tripi Micropulse West 602-438-9770

Lyle Rusanowski MMI Precision Technology 480-897-7100

Mark Lashinske Modern Industries, Inc. 602-267-7248

John Anglin Nelson Engineering 602-273-7114

Dante Fierros Nichols Precision 480-804-0593

Greg Chambers Noranco Jet Processing 623-869-6749

Rory Robinson NorthStar Aerospace dba Heligear 602-275-4406

Tom Osborn Osborn Products, Inc. 623-587-0335

Jennifer Ayres Phoenix Analysis & Design Tech. 480-813-4884

Michael & Laura Cree Phoenix Custom Lasering 602-996-1402

Steve Macias Pivot Manufacturing 602-306-2923

James Buchanan Powill Manufacturing & Eng, Inc. 623-780-4100

Ilene Price Precise Metal Products Co. 602-272-2625

Roy Stenger Precision Aerospace 602-352-8658

REGULAR MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

PrecisionNewsTM


visit: arizonatooling.org

Tony Costabile Precision Die & Stamping, Inc. 480-967-2038

Michael Dailey Prescott Aerospace, Inc. 928-772-7605

Tyler Crouse Pro Precision 602-353-0022

Zach Wilsterman Profile Tool & Engineering 480-894-1008

Michael Hughes Pure Logic Industries, Inc. 480-892-9395

John Bloom R & D Specialty/Manco 602-278-7700

Dustin Whaley Resonant Solutions 602-288-6740

James Costello Sanair Products 480-218-0918

Erik Niemira Sierra Precision Products, LLC 602-481-9582

Mark Willmering Sonic Aerospace, Inc. 480-777-1789

Jeff Gaffney Southwest Swiss Precision 602-438-4670

Steven Yeary Southwest Turbine, Inc. 602-278-7442

Mike Gudin Southwest Water Jet 480-306-7748

Dennis Miller Summit Precision, Inc. 602-268-3550

Scott Higginbotham Sun Grinding LLC 602-238-9595

Craig Berland Systems 3, Inc. 480-894-2581

Jacque Cowin Tram-Tek, Inc. 602-305-8100

Rick Lorenzen Tri Star Design & Mfg. 480-345-1699

Jeremy Lutringer Unique Machine & Tool Co. 602-470-1911

Bill Ankrom Vitron Manufacturing, Inc. 602-548-9661

Robert L.Wagner Wagner Engineering, Inc. 480-926-1761

Todd Kuhn West Pharmaceutical Services 480-281-4500

Denise & Bob Wright Wright Prototype 623-825-8671

MANUFACTURING ADVOCATESArizona Precision Industrial John Raycraft 480-785-7474

JWB Manufacturing Jeff Barth 480-967-4600

MicroTronics Mark Travis 602-437-8995

Performance Grind & Manufacturing Joe Hajda 480-967-5354


ASSOCIATE MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

Richard Short Adams Machinery 480.968.3711

Greg Whelan Arizona CNC Equipment 480.615.6353

Linda Daly A 2 Z Metalworker 602.412.7696

Vincent Thelander Bank of America Merrill Lynch 602.523.2044

Howie Basuk Barry Metals 602.484.7186

Joe Ciancio Bralco 602.252.1918

Marc Bissell CadCam/Geometric 480.222.2242

James Burriss ChemResearch Co., Inc. 602.288.0394

Kerry Vance Consolidated Resources 623.931.5009

Cindy Stewart Creative Promotions 480.839.9511

Lou Gallo DDi - Solidworks 602.241.0900

Randy Flores D&R Machinery 480.775.6462

Steve Warner EMJ Metals 602.272.0461

Mickey Gartman Gartman Technical Services, Inc. 602.788.8121

Jackie Bergman HUB International 602.749.4190

David Cohen Industrial Metal Supply 602.454.1500

Tim Kloenne Klontech Industrial Sales 480.948.1871

Barry Armstrong L.A. Specialties 602.269.7612

Bob Von Fleckinger Leavitt Group 602.264.0566

Jeff Trimble Magnum Precision Machines 602.431.8300

Jim Algers Makino, Inc. 602.228.0347

Chris Porter Methods West Machines/Tools 480.437.2220

Thomas Moore Moore Tool & Equipment 602.455.8904

Glen Zachman North-South Machinery 602.466.2556

Pete Hushek Phoenix Heat Treating 602.258.7751

Bob Nichols Phoenix Metal Trading 602.257.4660

Arlene Helt Ryerson-Phoenix 602.455.3386

Dave Bolt SBG Capital 480.897.4988

Jane Rousculp Samuel Aerospace Metals 602.721.0176

Frank Encinas Semiray 602.275.1917

Chris Tanner Solid Products 480.206.0330

Russ Kurzawski Star Metal Fluids LLC 602.256.2092

Megan Lenhart SVS Group 623.687.8386

David Senkfor Top Gun Consulting 602.510.5998

Donna Kordas Tornquist Machinery Co. 602.470.0334

Greg Burke TW Metals 602.864.0014

Doug Pratt Ulbrich Stainless Steel & Spec. 203.234.3464

ARIZONA SPONSOR MEMBERSJames Winterton Arizona Bank & Trust 480.346.4604

Austin Miller Aerotek 607.725.9418

Doug Lara AGS Safety & Supply 602.535.2000

Ty Miller Clifton Larson Allen 480.615.2320

Kevin Draper Comerica Bank 602.417.1188

Bennet Cromer Federated Insurance 501.952.9391

Steve Piotter MSC Industrial Tool 480.755.0415

Mike Hasenkamp National Bank of Arizona 623.872.2540

Noel Trias PensionMark/401K Matrix 760.432.9614

David Pettycrew Republic Indemnity 602.242.4602

Allen McDougall Wells Fargo 480.348.5114

MANYTHANKSTO OUR 2014 ATMA VALUED SPONSORS:

Get Turned-Onto the ATMA!Contact Chris Mignella at:[email protected]

MANY THANKSTO OUR 2011 ATMA VALUED SPONSORS!

MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!MAY5/11 Safety Meeting (General Safety Standards) 11:30

at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

5/12 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

5/17 Board of Directors Meeting 11:30-1:00 atMicro-Tronics, 2905 S. Potter, Tempe, 85282

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

JUNE6/08 Safety Meeting (General Safety Standards) 11:30

at Leavitt Group, 919 N. 1st St., Phoenix

6/09 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

6/21 Board of Directors Meeting 11:30-1:00 atMicro-Tronics, 2905 S. Potter, Tempe, 85282

6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix



Materials expire 11/1/13.© 2013 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. (894067_08195)

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ATMAEVENTS IN MAY/JUNE2014

MayNTMA Conference > 3/5-8Safety Meeting > 5/6 @ 11:30 - 1:00pm (Phoenix Heat Treat)Membership/Mktng & Program Mtng > 5/15 @ 4:00pm(Doubletree Hilton/Raintree Room) @ 4:00pm - 5:30pm

Board of Directors Mtng > 5/20 @ 4:00pm (MicroTronics)Dinner MEETING > 5/28 @ 5:00 - 7:30pm (Airport Hilton)

JunePrecision News Articles/Ads Due > 6/9Membership/Mktng & Program Mtng > 6/12 @ 4:00pm(Doubletree Hilton/Raintree Room) @ 4:00 - 5:30pm

Board of Directors Mtng > 6/17 @ 4:00pm (MicroTronics)Roundtable Meeting > 6/25@Airport Hilton 5:00 - 8:00pm

For more information contact Chris Mignella at:[email protected]


Arizona Tooling & Machining Association

NTMAUPCOMINGEVENTSNTMA/PMA 2014 Legislative Conference Washington, DC • May 5-7, 2014

National Robotics League Competition Lou Higgins Center at Baldwin Wallace College, Cleveland, OH • May 16-17, 2014

NTMA Northern Illinois Purchasing Fair Hoffman Estates, IL • June 3-4, 2014

Event Registration2014 NTMA Fall Conference The Roosevelt, New Orleans, LA • October 22-25, 2014


• Machining Excellence since 1997• ISO 9001 + AS9100B Certified• Experienced senior machinists• Experts in stainless, aluminum, plastics and exotics

• 8A Certified, Viet Nam Vet, Minority Owned Small Business• Eager to provide you with quality performance and quick responses

Contact Nichols at 480-804-0593www.nicholsprecision.com








may/june2014 arizonatooling.org PrecisionNews 2732 /

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[email protected] • www.laspecialties.com

Please feel free to contact us. We will be happy to assist.

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Sun Grinding, formerly known as BK Grinding, has been in the Phoenix fabrication industry for over 14 years. We are the leading surface grinding shop in Arizona. Family owned and operated.

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For All Your Grinding Needs!

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Mattison - 32” wide and 168” long capacity. If it is one part or 100 parts at a time, we can do the job!

We have the largest centerless grinder in the state!

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



PrecisionNews//NTMA-SAN DIEGO CHAPTER

MEMBERLISTINGS

Sean Tillett Alphatec Spine 760.494.6774

Darryl Chudomelka Asigma Corp. 760.966.3103

Peter Neville B&H Tool Company Inc. 800.272.8878

Alejandra Rogue BMW Precision 760.966.3103

Lyle Anderson C&H Machine and EDM Services 760.746.6459

Maurice Brear Compucraft Industries 619.448.0787

Michael J. Brown Computer Integrated Mach., Inc. 619.596.9246

Erich Wilms Diversified Tool & Die 760.598.9100

Michael Duffy Duffy Machine 760.598.7963

Donovan Weber Forecast 3D 760.929.9380

Andrew Allen Henry Machine, Inc. 760.744.8482

Jim Piel J I Machine Company, Inc. 858.695.1787

Heather Russell K-Tech Machine, Inc. 760.471.9262

John Riego de Dios*** Construction Tec Acad. Kearny HS 858.496.8370

Frank Harton L.F. Industries, Inc. 760.438.5711

Cliff Manzke Manzke Machine, Inc. 760.504.6875

Russell Wells Sr. MarLee Manufacturing, Inc. 909.390.3222

Mike Meziere Meziere Enterprises, Inc. 760.746.3273

Linda Kurokawa*** Mira Costa College 760.795.6824

Mark Rottele Roettele Industries 909.606.8252

Beau Haubruge*** San Pasqual High School 760.291.6000

Robert Kemery Solar Turbine 619.544.2808

Scott Cormony Waterjet West, Inc. 760.471.2600

*National Associate Members **Associate Member ***Educational Partner

REGULAR MEMBERS

ASSOCIATE MEMBERSGlenn Van Noy Champion Risk and Founder

Insurance Services 800.829.0807x716

Steve Doda Aerotek 760.916.1741

Greg Seaholm IMS Metal Supply 858.602.9297

Greg Mercurio Shop Floor Automation 619.461.4000x1001

2014 BOARD OF DIRECTORS

PresidentSEAN TILLETT

Alphatec Spine, Inc.

Vice PresidentCLIFF MANZKEManzke Machine, Inc.

Corporate Secretary and TreasurerHEATHER RUSSELLK-Tech Machine, Inc.

MembershipMIKE BROWN

Computer Integrated Machining

Past PresidentTONY MARTINDALEMartindale Manufacturing

BOARD MEMBERS

Education Board MemberJohn Riego de Dios

Construction Tec Academy, Kearny HS

Member at LargeLyle Anderson

Member at LargeMichael Brown

Chapter ExecutiveTammy Tillett

Advertising/MarketingCathy Teal

OUR MISSION“To form an alliance within the San Diego region of the local machining and tool industry and to foster mutual success

through education, technology, opportunity sharing and act as one voice with the government and the community.”

San Diego - NTMA Chapter197 Woodland Pkwy., #104, PMB #148

San Marcos, CA 92069-3020Phone: 805.558.5830

Email: [email protected]

www.ntmaSanDiegoChapter.org

SAN DIEGOCHAPTER

San Diego - NTMA Chapter EVENTSMayMember Meeting • 5/22/2014San Pasqual - NIMSManufacturing - San Pasqual HSJuneMember Meeting • 6/19/2014Restaurant (TBD)Strategies - Exit PlanningJulyMember Meeting • 7/17/2014Outdoors (TBD)SD Chapter PicnicAugustAugust 1-3, 2014Dallas, TXSWR ConferenceVisit www.ntmasandiegochapter.org for details as they become available.


PrecisionNews// NTMA MEMBERSHIP

We understand your challenges in today’s economy. We recognize that many of youface a talent gap, with necessary skills in short supply. And we know that there’s agap between the reality of our industry and the public’s perception of it.

But even more importantly, NTMA has the resources to do something about theseissues. Our educational programs stimulate the talent pipeline. Our resources androundtables help members share best practices and solve common businessproblems. And by speaking with one voice, we cut through media-generatedperception to communicate reality to policy makers and the public.

American ingenuity isn’t dead. It isn’t in decline. It’s alive and well in the customprecision manufacturing industry.

NTMA stands for the future. We also stand with your peers. Will you stand with us–and your industry–today? JOIN US TODAY!

BENEFITS OF JOININGNetworkingYou don’t have to go it alone. Membership immediately connects you with peers atthe local, regional and national levels—opening up conversations that can lead to newopportunities while helping you discover better ways to operate.

TrainingWe offer an arsenal of training programs designed to pick up where Americanvocational and technical education leaves off, preparing your workers to meet thedemands of today’s precision manufacturing environment. These range from informalprograms to college-level courses.

Discount ProgramsYou don’t have to be a big company to get big-company treatment from suppliersand vendors. Through association membership, you qualify for volume discounts oneverything from office supplies to payroll service to shop components—no matter howsmall your volume may be.

Online ResourcesFrom job postings to a members-only marketplace, from industry news to archivedwebinars, NTMA members can take advantage of a number of benefits without everleaving their keyboards.

Market ResearchGood business begins with good planning. But it’s hard to plan without reliablemarket intelligence. That’s where our reports come in. We survey the marketplace aswell as our members to put useful data in your hands.

InitiativesNTMA is constantly moving forward, seeking new ways to help you grow profitably.Our programs include everything from the National Robotics League to a constantlyevolving set of benchmarks and best practices.

Why join NTMA?To say it simply, the NTMA gets it.

VISIT:NTMA.ORG800-248-6862

HOTEL INFORMATION:Hampton Inn & Suites2825 Greenspoint Parkway

Hoffman Estates, Illinois, USA, 60169Tel: 847.882 43010Room Rate: $84

Cut off Date 5/19/2014

2014 NTMA PURCHASING FAIR

June 3-4, 2014H O F F M A N E S T A T E S , I L

WHERE BUYERS MET SUPPLIERS FOR 30 YEARS

For more information please visit: www.purchasingfair.com

or call1.800.248.6862

JUNE 3RD12:00pm - 1:00pm Welcome and Lunch at DMG Mori1:00pm - 5:00pm Business Development and Marketing Seminars5:00pm - 7:00pm Welcome Reception at Big KaiserJUNE 4TH9:00am - 3:00pm Purchasing Fair at Big Kaiser

ITINERARY

Hosted By:

H O F F M A N EJune 3-4, 2014

NG IASHPURCNTMA2014

, I LE STATSH O F F M A N EJune 3-4, 2014

RIAF

f Date 5/19/2014

.com chasingfair.purplease visit: For more information

SUPPLIERS TT SUPPLIERS EMWHERE BUYERS

Cut ofCut off Date 5/19/2014Room Rate: $84el: 847.882 43010TTel: 847.882 43010

fman Estates, Illinois, USA, 60169HofHoffman Estates, Illinois, USA, 601692825 Greenspoint Parkway

Hampton Inn & SuitesON:ITHOTEL INFORMA

fman Estates, Illinois, USA, 60169

.com please visit:

RSAYER 30 FO SUPPLIERS

Hosted By:

1.800.248.6862or call

.com chasingfair.purwww

Purchasing F9:00am - 3:00pmHJUNE 4T

elcome Reception aWWelcome Reception a5:00pm - 7:00pmsSeminar

Business Dev1:00pm - 5:00pmelcome and Lunch aWWelcome and Lunch a12:00pm - 1:00pm

JUNE 3RD NERARIIT

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YNERAR

2014 BOARD OF DIRECTORS

PresidentTODD ELLARD

Manda Machine Company

Vice PresidentJEFF SPENCERClay Precision

TreasurerBARRON SMITHR.W. Smith Company

Chapter ExecutiveLISA ELLARD

TrusteeJOE O’DELL

Plano Machine & Instrument, Inc.

BOARD MEMBERS

Mike BerdanBE Technologies

Frank BurchSouthern Machine Works

Bill WalterEllison Technologies

Micah EmbreyCNC Precision/Shamrock-Bolt

Don HalseyHalsey Manufacturing

Ray JonesMWI, Inc.

Pat McCurleyMidlothian Insurance

Karla ChandlerEducation Liason

NTMA - North Texas [email protected]: 214.536.4970 PO Box 541236

Dallas, TX 75354-1236ntmanorthtexas.org

NTMA-NORTH TEXASMEETINGS & EVENTSMay 15, 2014 – Sponsor and Associate Night

Shamrock Precision

August 1-3, 2014 – NTMA Southwest Regional Conference in DALLAS

NORTH TEXASCHAPTER



REGULAR MEMBERS ASSOCIATE MEMBERS

Larry Ellison AJR Metalworks, Inc. 214.352.3766

Tommy Thompson Bodic Industries 972.840.1015

Lewis Lance Bodycote Heat Treat 817.265.5878

Rick Blair Brook Anco Corporation 585.475.9570

Craig van Hamersveld Campat Machine Tool, Inc. 972.424.4095

Claudia Pautz Castle Metals 972.339.5000

Norm Williamson H & O Die Supply, Inc. 214.630.6660

Mike Johns Haas Factory Outlet 972.231.2802

Matt Curtis Hillary Machinery, Inc. 972.578.1515

Rod Zimmerman Iscar Metals, Inc. 817.258.3200

Curtis Dahmen Kaeser Compressors, Inc. 972.245.9611

Mark S. Holly Machinists Tools & Supplies 214.631.9390

Leland McDowell McDowell Machinery & Supply Co. 214.353.0410

Nicki Smith MSC Industrial Supply 817.590.2637

Ray Jones MWI Inc. / Southwest Division 972.247.3083

Mike Chadick North Texas Precision Instrument 817.589.0011

Reed Hunt Reed Hunt Services, Inc. 817.261.4432

Scott Devanna SB Specialty metals 800.365.1168

Bob Severance Severance Brothers 972.660.7000

Alan VanHoozer Top Tooling of Dallas, Inc. 972.278.8300

Glenn Wise Wise Machinery, LLC 817.905.9473

PrecisionNews//NTMA-NORTH TEXAS CHAPTER

MEMBERLISTINGS

“The Power of Connections”

BILLOR MACHINE TOOL SERVICE

MANYTHANKSTO OUR NTMA-NORTH TEXAS SPONSORS:

Vincente Chan Aeroweld Technologies, Inc. 972.247.1189

Mark Hestly Air & Earth Instrument Company 972.438.2277

Wade Whistler A.C.T. Precision Sheet Metal, Inc. 214.678.9114

Wayne Applegate Applegate EDM, Inc. 972.488.8997

Tony Woodall AST Waterjet 972.554.0383

Dan Wiktorski Axis Machine Works, Inc. 214.390.5710

Steve Ingersoll Bailey Tool & Manufacturing 972.974.8892

Michael Berdan BE-Technologies, Ltd. 972.242.1853

Christi Cameron Cameron Machine Shop, Inc. 972.235.8876

Jeff R. Spencer Clay Precision, Ltd. 903.891.9022

Joseph Lodor Commerce Grinding Company, Inc. 214.651.1977

Robert McNamara Davis Machine & Manufacturing 817.261.7362

Charles Gilbert DNS Tool Cutter Grinding, LLC 972.241.5271

David Ellis Ellis Tool & Machine, Inc. 903.546.6540

Jim Harris E.W. Johnson Company 972.436.7528

Rudy D. Kobus Expert Tool & Machine, Inc. 972.241.5353

Monte Titus F& R Machine & Repair, Inc. 214.631.4946

Gary Fore Fore Machine Company, Inc. 817.834.6251

Mike Lee Fort Worth Centerless Grinding, Inc. 817.293.6787

Shevin Goodwin Goodwin Machineworks 972.242.485

Larry Borowski Greenslade and Company, Inc. 817.870.8888

Oscar Guzman Guzman Manufacturing 972.475.3003

David L. Hodgdon H. H. Mercer, Inc. 972.289.1911

Don Halsey, Jr. Halsey Engineering & Mfg., Inc. 940.566.3306

Mike Kenney Kenney Industries 214.421.4175

Denver Knox Knox Machine Company 817.551.1600

Cory Trosper K & D Tool & Die, Inc. 972.463.4534

Keith Hutchinson Lancaster Machine Shop 972.227.2868

Scott Cody LSC Precision, Inc. 940.482.9700

Sammy Maddox Maddox Metal Works, Inc. 214.333.2311

Todd Ellard Manda Machine Company, Inc. 214.352.5946

David Evans Manek Equipment, Inc. 903.439.6414

Rodie Woodard Maximum Industries, Inc. 972.501.9990

Woodrow W. Thompson Metal Detail, Inc. 214.330.7757

Allen Meyer Meyer Enterprises 972.353.9791

Eddie Mills Mills Machine Shop 940.479.2194

Eddie Steiner, Jr. O E M Industries, Inc. 214.330.7271

Morris Padgett Padgett Machine Tools, Inc. 254.865.9772

Troy Paulus Paulus Precision Machine, Inc. 940.566.5600

Joe O’Dell Plano Machine & Instrument, Inc. 940.665.2814

Matt Harrell Quickturn Technology, Inc. 469.643.5010

Barron Smith R. W. Smith Company, Inc. 214.748.1699

Mike Embrey Red Rock Industries 940.665.0281

Gary Embrey Shamrock Precision 972.241.3931

Frank Burch Southern Machine Works 580.255.6525

John Anselmi Sunbelt Plastics Inc. 972.335.4100

Marshall B. Taylor T & K Machine, Inc. 903.785.5574

Jake Bailey Tower Extrusions Fabrication 940.564.5681

Tom Buerkle Traxis Manufacturing 512.383.0089

David Greer Tribal Solutions, Inc. 972.436.0422

William Winberg Winberg & Company 817.640.7930







Shop FloorNEWS FROM THE FRONT LINES

Fire is a chemical reaction that requires three elements tobe present for the reaction to take place and continue. Thethree elements are:

HEAT, FUEL AND OXYGEN

These three elements typically are referred to as the “firetriangle.” Fire is the result of the reaction between the fueland oxygen in the air. Scientists developed the concept ofa fire triangle to aid in understanding of the cause of firesand how they can be prevented and extinguished. Heat,fuel, and oxygen must combine in a precise way for a fire

to start and continue to burn. If one element of thefire triangle is not present or removed, fire will not start or, if already burning, will extinguish.

Ignition sources can include any material,equipment, or operation that emits a spark or flame—including obvious items, such astorches, as well as less obvious items, such

as static electricity and grinding operations.Equipment or components that radiate heat, such

as kettles, catalytic converters and mufflers, also can beignition sources.

Fuel sources include combustible materials, such as wood, paper, trash and clothing; flammable liquids, such as gasoline or solvents; and flammable gases, such aspropane or natural gas.

Oxygen in the fire triangle comes from the air in theatmosphere. Air contains approximately 79 percentnitrogen and 21 percent oxygen.

OSHA describes a hazardous atmosphere as one which is oxygen-deficient because it has less than 19.5 percentoxygen, or oxygen enriched because it has greater than

23.5 percent oxygen. Either instance is regarded by OSHA as an atmosphere immediately dangerous to life and health (IDLH) for reasons unrelated to the presence of fire.Depending on the type of fuel involved, fires can occur withmuch lower volume of oxygen present than needed tosupport human respiration.

Every roofing project has all three of the fire triangle elementspresent in abundance. The key to preventing fires is to keepheat and ignition sources away from materials, equipment,and structures that could act as fuel to complete the firetriangle.

Fire ClassificationsFires are classified as A, B, C, or D based on the type ofsubstance that is the fuel for the fire, as follows:

Class A - fires involving ordinary combustibles, such aspaper, trash, some plastics, wood, and cloth. A rule of thumbis if it leaves an ash behind, it is a Class A fire.

Class B - fires involving flammable gases or liquids, such as propane, oil, and gasoline.

Class C - fires involving energized electrical components.

Class C - fires involving metal. A rule of thumb is if the nameof the metal ends with the letters “um,” it is a Class D fire.Examples of this are aluminum, magnesium, beryllium, andsodium. Class D fires rarely occur in the roofing industry.

Resources:

Fire Protection and Prevention. n.d. https://www.osha.gov/dte/grant_materials/fy09/sh-18796-09/fireprotection.pdf.

Learn more at: www.ica.state.az.us or www.atma.org

fyi:

Heat, fuel, and oxygen must combine in a precise way for a fire to start and continue

to burn.

by JAMIE BEAUVAIS, Arizona Safety & Emergency Consultants LLC

Fire Protection & Prevention

Documents

Precision News May/June 2014