Precision News November/December 2013

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TM TM Precision News TAKE FLIGHT . ........................................................................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... T TE EC CH HN NO OL LO OG GY Y . B BU US SI IN NE ES SS S . E ED DU UC CA A T TI IO ON N . E EV VE EN NT TS S . D DI IR RE EC CT TO OR RY Y The NTMA SW Regional Magazine Featuring Arizona, San Diego and North Texas THIS ISSUE: Time Flies / Government Shutdown / Effective Communication / GHS-Ready or Not TM ARIZONATOOLING.ORG NOVEMBER/DECEMBER 2013 NTMA SW BRINGS YOU: THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE! Inside: COMMERCIAL AIR TRANSPORT OUTLOOK FOR 2014 THE PURCHASE OF NEW, MORE FUEL-EFFICIENT PLANES CONTINUES TO BE A BRIGHT SPOT IN THE AEROSPACE MARKET TECHNOLOGY ADVANCES IN WIRE EDM VERY FEW THINK ABOUT WIRE EDM AND HOW IT HAS EVOLVED OVER THE PAST HALF-CENTURY MAINTAINING ‘CREDIT’ABILITY WITH YOUR BANKER AN IMPORTANT LESSON IS THAT ACCESS TO CREDIT IS NOT A GIVEN starting on p.12 THE RESILIENCE ISSUE / IN YOUR EVOLVING BUSINESS CLIMATE / A SPECIAL P N MARKET PROFILE BOOST RECOVERY AND PROSPERITY BY ENGAGING STABLE MARKETS

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Precision News, the trade magazine from the Arizona Tooling and Machining Association (ATMA). Featuring articles on manufacturing in Arizona, North Texas, San Diego and San Francisco, is moving innovation and technology forward.

Transcript of Precision News November/December 2013

Page 1: Precision News November/December 2013

TMTMPrecisionNews

TAKEFLIGHT

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TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

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

TTHHIISS IISSSSUUEE:: Time Flies / Government Shutdown / Effective Communication / GHS-Ready or Not

TM

ARIZONATOOLING.ORG NOVEMBER/DECEMBER 2013

NTMA SW BRINGS YOU:

THEEXPERIENCEANDINSIGHTTOGETTHE JOBDONE!

IInnssiiddee::COMMERCIAL AIR TRANSPORT OUTLOOK FOR 2014THE PURCHASE OF NEW, MORE FUEL-EFFICIENTPLANES CONTINUES TO BE A BRIGHT SPOTIN THE AEROSPACE MARKET

TECHNOLOGY ADVANCES IN WIRE EDMVERY FEW THINK ABOUT WIRE EDM AND HOW IT HAS EVOLVED OVERTHE PAST HALF-CENTURY

MAINTAINING ‘CREDIT’ABILITYWITH YOUR BANKERAN IMPORTANT LESSON IS THATACCESS TO CREDIT IS NOT A GIVENstarting on p.12

THERESILIENCEISSUE

/ IN YOUR EVOLVING BUSINESS CLIMATE /

A SPECIALPNMARKET PROFILE

BOOST RECOVERY AND PROSPERITY BY ENGAGING STABLE MARKETS

Page 2: Precision News November/December 2013

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.

Contact Glenn VanNoy at 760-419-1393 or [email protected] for a no obligation evaluation and consultation. LIC #0H18156

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In a down economy, all companies — large and small, are exposed to a higher employment practices litigation risk. These lawsuits can have enormous defense costs even if a settlement or verdict is relatively low or in your favor.

In order to best protect yourself from costly verdicts, settlements and defense costs, give us a call for a free risk assessment and quote on Employment Practices Liability Insurance (EPLI).

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Champion Risk& Insurance Services, L.P.

Page 3: Precision News November/December 2013

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Contents121630

NOVEMBER/DECEMBER 2013 VOLUME 3 • ISSUE 6

PrecisionNews

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

EXECUTIVE DIRECTOR & EDITOR Chris Mignella

CONTRIBUTING WRITERSATMA Safety Team, Sergio Cecutta, Dante Fierros, Margaret Jacoby, PN Editors, Omar S. Nashashibi,Ted Szaniawski, Brent Terhaar

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 ©2013 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

MAINTAINING ‘CREDIT’ABILITYWITH YOUR BANKERDuring the great recession of 2008/09, we learned many painful lessons. One of those was that access to credit is not a given.

COMMERCIAL AIR TRANSPORT OUTLOOK FOR 2014The commercial air transport market continues to be the bright spot in the overall aerospace market. Airlines are buying new and fuel-efficient airplanes to replace the gas-guzzlers that they currently have in their fleets.

TECHNOLOGY ADVANCES INWIRE EDMWhen one starts to think about the recent technology advances in manufacturing, very few think about the wire EDM and how it has evolved over the past fifty years or so.

03 President’s Letter

04 Policy Matters

08 People Power

19 NTMA Initiatives

20 Websites that Work

20 Arizona Chapter Info

26 San Diego Chapter Info

27 NTMA Membership

28 North Texas Chapter Info

32 Shop Floor

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• 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

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.. .. . .

Time flies when you’re having fun… as the saying goes and it has been mostrewarding and fun being your President for the past 2 years. This is my last President’sletter to be presented during my term of office and the next one you read will be from ourincoming President, Mr. David Lair. David starts his tenure in January and you will bemost pleased with his vision and professionalism, I am sure.

Attending our upcoming Focus Group meeting in November will provide you anopportunity to hear more details from David regarding his vision and it will also afford youan opportunity to help structure that vision as we come together to formulate newdirections and programs for 2014 and beyond.

What has struck me the most in the last two years is the breadth and depth of thecapabilities our members bring to our association. I cannot think of a capability that isn’tprovided by our member companies to our industry.

I have learned a lot from you and your good council. We have also shared work betweenus, helping our respective companies when one was “over-loaded” or “under-utilized” atthe moment.

Those that know me understand that I like “bullet points” so here are some key points Iwould leave with you to ponder.

Those that have been involved in the ATMA association already know what we have accomplished in the past 2 years so there is no need for me to reiterate them here.

These accomplishments would not matter much to those that are not involved in any case.

The more you are involved in the ATMA, the more you receive in some positive way.

Please add your voice to our future…our association needs it, our State needs it and certainly, ourcountry needs it more than ever.

Manufacturing is not only the back bone of our economy, it is the one way in which wewill get out of the economic doldrums we are in today. If you have been noticing, manyState organizations have been doing great things to help manufacturing. I urge you totake notice, make your inputs and get involved for all our good.

I leave you as the current President but will become your Trustee and member of yourBoard of Directors. I wish you, your companies and your families all the very best of good fortune.

Respectfully,Dante O. FierrosPresident

TimeFlies

First WordPRESIDENT’S LETTER

DANTE O. FIERROSPresident

480.804.0593 office602.980.1907 [email protected]

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National parks closed; brides delayedweddings; and so much uncollected trash accumulated on the National Mall inWashington, D.C. that tourists took note of the vermin infestation – often referring tothe politicians in Congress. These are just a few of the publicly visible consequencesof Republicans and Democrats inWashington not being able to do their jobs.However, less public disruptions had amuch greater impact on the economy thantourists locked out of a Smithsonianmuseum. Manufacturers of all sizes, smalland big alike sure felt the impact, even iftheir stories did not grab headlines duringthe October government shutdown.

The Small Business Administration (SBA)furloughed more than 2,100 employees orroughly nearly two-thirds of its workforce,the Treasury Department suspended 88% of its workers including 90% of IRS employees, and the Department of Commerce told 87% of its 16,304employees to stay home. Betweenshutdowns at Commerce and the Office of the U.S. Trade Representatives,

American negotiators were not able to maketrips overseas to continue work on key tradeagreements pending between the U.S. and its allies.

Several members of the National Toolingand Machining Association (NTMA)reported SBA loans put on hold, suppliersto the defense industry saw contractsdelayed, and manufacturers experienceddisruptions up and down the supply chain.A military ammunitions contractor reportedtheir customer’s SBA loan was delayedmeaning they couldn’t ship parts to thebusiness. Another NTMA member isexperiencing a forty percent growth inbusiness this year, allowing the company to expand its market share, increaseproduction, and hire employees. However,with their SBA loan on hold the businessnearly stopped in its tracks and risked losing the customers they just gained.

The shutdown affected more than justfinancing for manufacturing operations. Asusual, downstream suppliers feel the painmore than their larger customers. For

example, Lockheed Martin had expected tofurlough roughly 3,000 employees acrosstwenty-seven states. United Technologieshad planned to furlough nearly 2,000workers prior to a Pentagon announcementto no longer furlough as many of their ownworkers and contracting officers.

It is too soon to tell the extent the shutdownled to a slowdown, but early estimates aretroublesome. Manufacturing in Americacontinues to expand at a healthy pace with factory activity increasing to 56.2 inSeptember up from 55.7 in Augustaccording to the Industry for SupplyManagement (anything over 50 isconsidered manufacturing expansion).However, a noted economist said thenation’s economic growth could contract by .3% due to the shutdown, in large partbecause 800,000 government employeesdid not receive paychecks on time reducingtheir ability to spend on consumer products,make timely mortgage payments, and travelfor business or leisure.

continued on page 06

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Policy MattersBECOME A VOICE FOR CHANGE

Photo: NTMA

+

fyi:It is too soon to tell

the extent the shutdown led to a slowdown, but earlyestimates are troublesome.Manufacturing in Americacontinues to expand at

a healthy pace...

Government Shuts Down,But Manufacturing Goes On

by OMAR S. NASHASHIBI

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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

arizonatooling.org

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A CUTABOVE.We have the capabilities and the skills to get any job done.

CNC Machining5-Axis MachiningMulti-Spindle MachiningLights Out MachiningBlade and Blisk MachiningElectro-Discharge MachiningLaser MachiningWaterjet MachiningSheet Metal FabricationGun DrillingJig Bore/Jig GrindHydroformingCylindrical GrindingSurface GrindingCurvic GrindingTool GrindingThread GrindingCreep Feed GrindingChemical Milling

Swiss TurningMicro-MachiningHoneycomb SealsTube BendingHigh Speed StampingSand CastingInvestment CastingMolded RubberPlastic Injection MoldingRapid PrototypingBalancingElectromechanical AssemblyClean Room AssemblyWire Harness ProductionMIG/TIG WeldingResistance WeldingHydrogen BrazingVacuum BrazingLaser Welding

Electron Beam WeldingHeat TreatingVacuum Heat TreatNitridingShot PeeningCryogenic ProcessingPlasma Spray CoatingHVOF CoatingDiffused Aluminide CoatingElectroless Nickel PlatingHard Chrome PlatingCadmium PlatingSilver PlatingCopper PlatingAnodizingPhosphatingBlack OxideDri-LubePainting

YOUR NEWTOOL OFTHE TRADE.PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISERWANT TO REACH. OUR READERSWANT AN EDGE IN A CONSTANTLYEVOLVING INDUSTRY AND THEYFIND IT IN PRECISION NEWS!

Let your ad be a call to action!Contact Precision News today for more details at:[email protected]

PrecisionNewsTM

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

arizonatooling.org

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MAKE YOUR VOICE HEARD ON CAPITOL HILL!For additional information, please visitwww.metalworkingadvocate.orgor contact the NTMA at 800.248.6862

While Republicans and Democratscontinued to point fingers at one another,manufacturers spent their time creatingjobs, growing the economy, and continuingto bring attention to manufacturing inAmerica. NTMA worked with its membercompanies to support the Second Annual Manufacturing Day on October 4.Manufacturers around the country openedtheir doors to students, elected officials, and community leaders to help promote the industry.

Throughout the country, manufacturersshowcased the career opportunitiesavailable and the role businesses play inthe local economy. In one region, NTMAmembers were among twenty-sixcompanies participating in ManufacturingDay, with six hosting tours. Among the 600people attending were 460 high schoolstudents, which allowed employers topromote manufacturing careers to the nextgeneration.

Meanwhile, back in Washington, politicianson Capitol Hill and in the White Housecontinued their posturing and bickering.The shutdown grabbed the headlines but to their credit, behind the scenes,Congressional staff did their best tocontinue working on issues important tomanufacturers. In our meetings on CapitolHill during the shutdown, we saw mostoffices operating at 30-50% of capacity,with some offices filled with only a Chief ofStaff and two volunteer interns.

While government spending andObamacare will continue to dominate themedia spotlight in the next few months,there remains some hope Congress canmove forward on some of the priorities for manufacturers. This is why we had nochoice but to continue our lobbying efforts on tax reform with Senate FinanceCommittee and other staff deemed“essential” and reporting to work – evenwhile the government was “closed”.

In my previous article, I discussed this “Do Nothing Congress” possibly doingsomething. In a way the prediction provedcorrect, in doing nothing, they certainly didsomething – shut the government down and disrupted operations for thousands ofmanufacturing businesses.

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

Government Shuts Down, But Manufacturing Goes Oncontinued from page 04

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Page 10: Precision News November/December 2013

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Effective communication is a must for all leaders.

Good communication builds a sense of community among employees by letting them in on the business of the business andmore importantly, it addresses issues of poor or non-performance.

It is important for employees to understand why the business was established. The Mission Statement can answer thequestions - What do we do? How do we do it? And for whom do we do it? The Mission Statement serves as a reminder of thepurpose of the business, and gives employees a sense of where they fit and how their job moves the company forward towardthose objectives.

Employees are not mind readers. They need clear, precise directions, instructions, and expectations from supervisors andmanagement. Several printed communication channels are useful here in addition to how supervisors and managers verballycommunicate with employees.

Handbooks are the primary channel for describing expectations. A well-written handbook tells employees how to behave in theworkplace and sets forth consequences for failure to meet those expectations. Handbooks also inform employees of what theycan expect from the company in exchange for their work—benefits, holidays, vacation, overtime, etc. Communicate clearly toreduce liabilities through misunderstandings of mutual expectations.

While not as obvious a tool as the handbook, Performance Reviews communicate how well or how poorly each employee isperforming and meeting company expectations. A timely, well-written review says, “We value you and your contributions andhere are some areas we can work on together to improve your performance and the company’s success.”

Postings, those required by state and federal laws, and company-specific postings addressing successes, celebrations, newproducts, expansion efforts and other notices of the company’s level of performance go a long way toward reducing anxietiesmany employees face in a volatile economy.

Finally, Job Descriptions communicate the expectations in terms of tasks and responsibilities for each position. Employees arenot forced to guess what they are to do to meet individual and company objectives. By doing the right tasks, the goals of theindividual, department and division can be met.

Aside from one-on-one personal communication, company-wide communication is necessary to keep the workforce engagedand informed, thereby increasing productivity and improving performance.

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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EFFECTIVE EMPLOYEECOMMUNICATIONS CRITICAL TO PERFORMANCE

by MARGARET JACOBY, SPHR

People PowerYOUR MOST VALUABLE RESOURCE

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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The Hidden Reason ofEmployee NonperformanceThe hidden reason for employee nonperformance is notcomplicated --- it’s most often the lack of effective communicationson the part of supervisors/managers. This can be revealed in threeways. “How” you communicate with your employees, “Why” youcommunicate with them and “What” you are communicating about.

When communicating “How” we expect things to be done, we tend to communicate in our own preferred communications style ---but that can be at odds with the favored style of our workforcemembers nearly 50% of the time. As a result, employees oftendon’t really “hear” what you’re saying. They may not grasp yourmessage and therefore may not perform as you expect them to.

The “Why” of communications is straightforward. Today’sworkforce wants to understand the logic behind what they areexpected to do. The old axiom of “Don’t ask!! . . . Just work harderand faster!!” doesn’t cut it. Today’s workers want to be a part of the overall team; they want to understand why their role is importantto successful performance. Supervisors/managers must explainthe “Why”.

The “What” pertains to each specific task that is required in orderfor superior performance to be attained --- the technical processesand procedures that must be adhered to. But there is anotherperspective linked to “What” that supervisors/managers should becommunicating about.

A recently updated poll of employees and supervisors/managersrevealed that they continue to look at employee “needs” quitedifferently. Employee’s stated needs are not ranked at all the same as the ranking supervisors and managers identified as mostimportant to employees.

It’s clear “What” employee’s desire!! They want communicationaddressing their top three needs. And supervisors and managersshould understand that their view of employee needs is up-side-down. If they don’t recognize and deal with this reality they willfeed, not fix, employee nonperformance.

To address employee nonperformance, consider the “How”, “What”and “Why” of your communications. These three steps can result ina remarkable positive impact on employee performance!

TED SZANIAWSKIPrincipal, HRGroup, LLC

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

Page 12: Precision News November/December 2013

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SEMESTER 2 (100 HOURS) INTERMEDIATE MACHINING / INTERMEDIATE APPLIED SHOP MATH / INTERMEDIATE BLUEPRINT Provides skills in layout techniques and operations, including calculating bolt hole circles, location of surfaces relat ed by non-right angle triangles, and points of tangency and other related applied shop mathematics. Included is all learning outcomes that are necessary to suc-cessfully layout drawing by understanding the proper views from an actual part. Continues with a foundation for study of manufacturing methods, processes, related machining equipment, and tools of industry, requiring the student to understand shop safety practices, job planning, feeds and speeds, precision measuring and layout tools and procedures, hand tools and bench work, metal cutting saws, drilling machines, lathes, milling machines, jig bore and jig grinder, surface grinder, E.D.M, and abrasives.

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Page 14: Precision News November/December 2013

Maintaining CREDITability with Your BankerSTORY BY BRENT TERHAAR

As human beings, we have short attention spans and even shorter memories. Take a minute and think about all the things running through your head as you read this article: your to-do list, the emails popping up on your computer, the phone ringing, people talking outside your office, and a myriad of other issues in your business and personal life. All of those distractions can keep us from learning from the past so we can apply it to the future.

12 PrecisionNews arizonatooling.org november/december2013

Feature Story//PrecisionNews

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During the great recession of 2008/09, we learned manypainful lessons. One of those lessons was that access tocredit is not a given.

In a recent survey of over 350 manufacturers that CliftonLarsonAllen conducted, over 77% of respondents indicated that the availability of capital over the past twoyears has not impaired growth. That is certainly a shift compared to the industrysentiment a few years ago. As business improves and credit markets start to open up,we cannot lose sight of the situations that created those painful memories of the past.How can you change your actions to not only enhance credibility but also maintainCREDITability with your banker? The following are a few ideas on what you can do.

Don’t Overlook the Balance SheetMost business owners don’t spend a lot of time fretting over their financial statementsor understanding all the nuances displayed on your financial reports. However, in abanking situation, the financial results, and a banker’s confidence in your knowledgeof your current and future state, are critical. Management teams often dedicate mostof their attention on the income statement, but when working with banks, the balancesheet is equally important.

Understanding how a banker reads your balance sheet to determine your creditworthiness should not be overlooked. Bankers are trying to answer a few basicquestions when they look at your balance sheet:

• Do you have enough strength in your balance sheet to weather some less-than-perfect times and still pay them back?

• Do you have enough collateral to support the size of the loan and is that collateral accessible?

• Do you have enough skin in the game?

To answer these questions, they look at several ratios like debt to equity, current ratio,aging of work-in-process and accounts receivable.

Putting a renewed focus on the health of your balance sheet and actively managing itcan pay significant dividends when dealing with the bank.

Be Active in Shaping Your Financial CovenantsToo many business owners are somewhat passive in shaping the financial covenantsoutlined in their credit facilities. As a banker evaluates the credit worthiness of alender, they prepare a risk profile to understand their ultimate risk in lending youmoney. Covenants are merely a safeguard that banks use to set limits to ensure theircustomers don’t operate outside of the bank’s risk threshhold.

continued on page 14

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14 PrecisionNews arizonatooling.org november/december2013

CliftonLarsonAllen is one of the nation’s top 10 certified public accounting and consulting firms. Structured to provide clients with highly specialized industry insight, the firm deliversassurance, tax and advisory capabilities. CliftonLarsonAllen offers unprecedented emphasis on serving privately held businesses and their owners, as well as nonprofits andgovernmental entities. The firm has a staff of more than 3,600 professionals, operating from more than 90 offices across the country. For more information about CliftonLarsonAllen,visit their website at: www.CLAconnect.com

Feature Story//PrecisionNews

Influencing your covenants begins with an understanding of how yourbanker views your risks. Having a healthy conversation with yourbanker about their interpretation of risk and ultimately their scorecardrelated to that risk (i.e. covenants) can be an eye opening experience forboth parties. A business owner will learn more about what the bankerknows (or doesn’t know) about his or her company and can use thatdiscussion to better educate the banker on the business. In addition, the banker may learn more about the company that could mitigate theirrisk on lending to your company. In addition, there may be planned oranticipated events (i.e. capital improvements, recapitalization, potentialacquisitions, etc….) that could be hindered by the covenants you have in place. Understanding how your financial results could change withthese events is an important exercise as you’re negotiating and agreeingto the banker’s covenants.

Acceptance of Personal GuaranteesPersonal guarantees are frustrating for owners. Bank debt was meant to be a means of mitigating personal investment and risk, but having a personal guarantee makes it feel like just the opposite. The owner isstill on the hook for most if not all of the debt. Unfortunately, personalguarantees are going to be required in most cases.

There can be a silver lining in this otherwise disappointing situation.Just like the covenant conversation, be active in your discussionsregarding personal guarantees. If you have an open conversation withyour banker regarding the level of security they need to underwrite your loan(s), there may be an opportunity to reduce your exposure topersonal guarantees. It is easy for a banker to ask for an all-encompassing personal guarantee from a business owner. There may be an opportunity to limit your exposure by negotiating to a maximumamount (a ceiling) or to specify which personal assets are subject to aguarantee (perhaps a specific stock portfolio or other category of assets).

Having a banker justify their rationale for the level of personalguarantees is a healthy topic for discussion. Just like the covenant issuenoted above, banks are looking to mitigate their risk and ensure theyhave enough protection if your loan is not repaid. Gaining thisknowledge will help you better understand your position with the bank.This understanding may help you build a logical case to adjust therequirements the bank has to lending you money.

Nobody Likes SurprisesJust like any good marriage counselor will tell you, communication isthe key to a healthy relationship. This is especially true with a banker. A great way to lose credibility with your banker is to surprise them withunexpected financial results. These surprises put the banker in adifficult position when they’re trying to be your advocate in front oftheir credit committee. It will also likely make them double clutch ontrusting you or the information you provide in the future.

Most good bankers understand and can appreciate the normal businesscycles manufacturers go through. Keeping your banker up to date onthe status of the business (both good news and bad news) is a criticalcomponent of earning their trust. The ability for a business owner toanticipate, communicate and properly react to a downturn can build alot of goodwill with a banking partner. The key is to be honest aboutyour current situation and provide a well thought out game plan on howyou’re going to react. It does not do you any good to put a plan togetherthat is unattainable – again you will lose credibility with a lender becausetheir impression is that you don’t have a realistic view of the situation.Be methodical in your approach and seek their advice on how best toweather the storm. More often than not, these discussions can buildyour banking relationship and provide you ideas or insight you mightnot be thinking of.

The past is a funny thing. You cannot change it, but you can learn fromit and change how you do things in the future. As the philosopherGeorge Santayana once said, “Those who do not remember the past arecondemned to repeat it.” As human beings, we are typically wired toforget past events unless they’re really happy memories or very painfulmemories. Taking what you’ve learned from the credit crisis a few yearsago and changing your approach to dealing with your banker willhopefully create memories that you want to remember.

BRENT TERHAAR is a Principal in the Manufacturing andDistribution group of CliftonLarsonAllen. Brent can be reached at 888.529.2648 or [email protected]. To learn more about CliftonLarsonAllen, visit www.CLAconnect.com.

Maintaining CREDITability with Your Bankercontinued from page 14

Having a healthy conversation with your banker about their interpretation of risk and ultimately their scorecard related to that risk can be an eye opening experience for both parties.

Page 17: Precision News November/December 2013

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Page 18: Precision News November/December 2013

16 PrecisionNews arizonatooling.org november/december2013

Feature Story//PrecisionNews

BY SERGIO CECUTTA

The commercial air transport market continues to be the bright spot in the overall aerospacemarket. The airlines, driven by the continuous increase in the cost of fuel, are buying new andfuel-efficient airplanes to replace the gas-guzzlers that they currently have in their fleets. The20% average fuel burn savings on the new airplanes is pushing airlines to continue to takedelivery of new airplanes even when their revenues have been suffering.

Airbus and Boeing continue to represent the lion share in deliveries and orders for this marketand 2014 will continue this trend. The regional aircraft market remains stable but theseaircrafts are not showing the same strength of the larger commercial airliners. Airlinesclamoring for more efficient aircrafts are fueling the demand for Boeing 787, 737 MAX and for Airbus A350 and A320 NEO.

Commercial Air Transport Outlook for 2014The good times keep on rolling

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APrecisionNews MARKET PROFILE

Widebody Airliners MarketAt the top of the market, the large four-engined Boeing 747-8 andAirbus A380 are feeling the impact of fuel prices. Their production isvery low, with Airbus producing 25 aircrafts per year after a recent cutfrom 30. There are talks of additional reductions in output, in line withBoeing forecasts, due to the limited amount of orders – both Boeingand Airbus received no orders on their top of the line airliners in thefirst half of 2013 – and limited backlog – Airbus with 148 A380 andBoeing with 55 747-8.

The middle of the market looks instead completely different. TheBoeing 787 and 777 families and the Airbus A350 are a resoundingcommercial success. Boeing is currently producing 10 787 per monthwith 3 of them coming from the Charleston facility by the end of 2013or the first quarter of 2014. On the development side, Boeingcelebrated the first flight of the 787-9, the second member in the 787family, that is expected to enter into service in the middle of 2014 withAir New Zealand. During 2014 Boeing will also dedicate itsdevelopment resources to the definition of the last born in the 787family, the 787-10. On the 777 side, Boeing continues to enjoy successin orders and deliveries. With a production of 8.3 aircrafts per monthcontinuing in 2014, the 777 will see the arrival of the next generationwith the expected launch of the 777-9X and 777-8X. Lufthansa signedthis year to become the launch customer of the 777-9X with an orderfor 34 aircrafts valued at over $11B. The 20% fuel burn improvementwill see the airline retire all the remaining 747-400 they still operate.

Airbus responded to the Boeing 787 and 777X with the first flight ofthe A350-900 that will start deliveries to the launch customer QatarAirways during the first half of 2014. Airbus forecasts a productionrate of 10 A350 per month as soon as the ramp up is completed with apossible production increase up to 13 per month. Next year will alsosee Airbus continue the development work on the next versions of theA350 on their plate, the A350-800 and the A350-1000, slated to enterservice respectively in 2016 and 2017. In the meantime the productionof the A330 continues at a strong 10 airplanes per month in 2014 froma backlog of 260 airplanes.

Narrowbody Airliners MarketOn the narrowbody side, both Airbus and Boeing continue to deliverjets at unprecedented rates, working from significant backlogs of 1,912Boeing 737 NG and 1,879 Airbus A320 (as of April 2013). Boeingplans to increase the 737NG production rate from 38 to 42 per monthby the second quarter of 2014 and could go even higher. The newBoeing production rate will match the A320 current production thatwill remain at a stable 42 airplanes per month throughout 2014. Airbushas declared that they will look at a further increase in the productionrate only around 2018, once the A320 NEO has been phased in.

The A320 NEO and the Boeing 737 MAX are the next generation ofnarrowbodies that the airframers will develop during 2014 inpreparation for their respective entry into service in 2015 and 2017.They promise increased efficiency and reduced fuel burn and haveamassed large backlogs of 1,495 Boeing 737 MAX and 2,348 AirbusA320 NEO (as of July 2013).

In this market space we do not have to forget a new important entrant,the Chinese COMAC C919. With 380 orders in its backlog, theairplane development will not yet reach the production phase in 2014.The first flight is currently scheduled for 2015 with an entry intoservice in 2016.

Regional Jets MarketThe regional market has been the segment in the commercial air trans-port market impacted the most by the effects of the economic downturn.

Embraer cut the production rate of its ERJ regional jets by 40% at thebeginning of the global economic crisis in 2008 to about 8 per month.In 2014 Embraer is taking a cautious approach and has no plans toraise production any time soon past the 90/95 airplanes they plan toproduce out of their backlog of 131 ERJs. On the development side, thecompany is working on its next generation of regional jets, the E2,slated to enter service with SkyWest Airlines in 2018. The newairplanes have a 16%-23% better fuel burn and have accumulated abacklog of 150 orders (as of September 2013).

Bombardier will continue the production of the CRJ regional jets at arate of 1.6 per month in 2014 from a backlog of 102 airplanes (as ofMarch 2013). The resources of the company are concentrated on thedevelopment of the CS100 airplane that, after a successful flight inSeptember 2013, will enter service with Swiss Airlines in the secondhalf of 2014. The company has 63 CS100s on order and 114 of thelarger CS300.

To conclude our look at the regional jets market, Mitsubishi hasannounced further delays of the first flight of the MRJ family ofregional jets, pushing the date back to 2015 with an entry into serviceexpected in 2017 with ANA.

SERGIO CECUTTA is a former Honeywell and Danaherexecutive and the founding partner at SMG Consulting LLC, a business consulting firm specializing in serving the strategy,business development, marketing and finance needs ofcompanies in Aerospace, Defense, Medical Devices, Clean Tech, Energy and SW Services.

Learn more at: www.smg-consulting.com

Airbus A318

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november/december 2013 arizonatooling.org PrecisionNews 19

...AND ACHIEVE YOURBUSINESS SUCCESSTHROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.

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

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• 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.

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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]

Page 22: Precision News November/December 2013

20 PrecisionNews arizonatooling.org november/december2013

ATMAP R E C I S I O N

2013 ATMA BOARD OF DIRECTORS

PresidentDANTE FIERROSNichols Precision

Vice PresidentDAVID LAIR

Dynamic Machine & Fabricating

Executive DirectorCHRIS MIGNELLA

TrusteeMARK WEATHERS

Excaliber Precision Machining

SecretaryJOHN O’LEARY

Arizona Industries for the Blind

TreasurerGREG CHAMBERS Noranco Jet Processing

BOARD MEMBERS

Mark Travis Micro-Tronics, Inc.

Zach WilstermanProfiles, Tools & Engineering

Gary WatkinsMarZee

Joseph KoenigExactitude, LLC

Mike RakowskiLandmark Precision

Bruce TreicherZircon Precision

Associate Member LiaisonKerry Vance

Consolidated Resources, Inc.

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]

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

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Page 23: Precision News November/December 2013

november/december 2013 arizonatooling.org PrecisionNews 21

David Wright Accuwright Industries 480-892-9595

Rob Markson Action Machine 692-233-0883

Michael Holmes AeroDesign & Manufacturing 602-437-8080

Sal Kielbus Aerospace Contacts, LLC 480-967-1025

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

Eric Stroot Bolt’s Metallizing 602-244-2432

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

Jay Berens C.G. Tech, Inc. 623-492-9400

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

Mark Pendergrass Filconn, Inc. 480-225-3656

Jeff Hull Foresight Technologies 480-967-0080

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

Jeremy Schaulk 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

Paul Clark Metal Spinning Solutions, Inc. 480-899-0939

Jeff Meade Metalcraft 480-967-4889

Joe Tripi Micropulse West 602-438-9770

Mark Travis Micro-Tronics, Inc. 602-437-8995

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

John Maris NorthStar/D-Velco 602-275-4406

REGULAR MEMBERS

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

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

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

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

Paul Shelton Shelton Industries 520-408-8026

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

Bruce Treichler Zircon Precision Products 480-967-8688

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

PrecisionNewsTM

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

visit: arizonatooling.org

Page 24: Precision News November/December 2013

22 PrecisionNews arizonatooling.org november/december2013

ASSOCIATE MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

Richard Short Adams Machinery 480.968.3711

Greg Whelan Arizona CNC Equipment 480.615.6353

John Anderson ATS Industrial 602.276.7707

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

David Hopkins CliftonLarsonAllen, LLP 480.615.2300

Bob Von Fleckinger Leavitt Group 602.264.0566

Jeff Trimble Magnum Precision Machines 602.431.8300

David Gundersen 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

Scott Sherman 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

John Drain Tornquist Machinery Co. 602.470.0334

Greg Burke TW Metals 602.864.0014

Doug Pratt Ulbrich Stainless Steel & Spec. 203.234.3464

ARIZONA SPONSOR MEMBERSAustin Miller Aerotek 607.725.9418

Jeff Anderson National Bank of Arizona 623.872.2546

Bennet Cromer Federated Insurance 501.952.9391

Kevin Draper Comerica Bank 602.417.1188

Joe Galvez Arizona Bank & Trust 480.884.4504

Jerry Howell Titanium Metal Supply, Inc. 602.910.0808

Allen McDougall Wells Fargo 480.348.5114

Austen Miller Aerotek 607.725.9418

David Pettycrew Republic Indemnity 602.242.4602

Steve Piotter MSC Industrial Tool 480.755.0415

MANYTHANKSTO OUR 2013 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

arizonatooling.org / 23

ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

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

arizonatooling.org / 23

ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

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

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Page 25: Precision News November/December 2013

november/december 2013 arizonatooling.org PrecisionNews 23

ATMAEVENTS in NOV/DEC2013

November2013Safety Meeting > 11/12 @ 11:30-1:00pm @ (MicroTronics)

FOCUS ON THE FUTURE, Annual Planning Meeting >11/14 @ Native New Yorker

Board of Directors Mtng > 11/19 @ 4:00pm @ (MicroTronics)

December2013ATMA Holiday Dinner at RAWHIDE > 12/6Precision News Articles/Ads due for Jan/Feb ’14 Issue >12/9

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

ATMAP R E C I S I O N

Arizona Tooling & Machining Association

Welcome!NEW MEMBERS

West Pharmaceutical Services, Inc. The Tech GroupMr. Todd Kuhn

14677 N. 74th Street • Scottsdale, AZ 85260phone: 480.281.4500 (New Regular Member)

Landmark Precision ManufacturingMr. Brian Walski, President-CEO

4148 West Venus Way • Chandler, AZ 85226phone: 480.940.4002

[email protected](New Regular Member)

NTMAUPCOMINGEVENTS2014 The MFG MeetingArizona Biltmore, Phoenix, AZ March 5-8, 2014

VISIT:NTMA.ORG800-248-6862

MAKE YOUR VOICE HEARD ON CAPITOL HILL!For additional information, please visitwww.metalworkingadvocate.orgor contact the NTMA at 800.248.6862

Page 26: Precision News November/December 2013

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arizonatooling.org / 19

• 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

ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

arizonatooling.org / 19

• 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

ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

24 PrecisionNews arizonatooling.org november/december2013

Page 27: Precision News November/December 2013

november/december 2013 arizonatooling.org PrecisionNews 2532 /

L.A. SPECIALTIES, INC.4223 North 40th Avenue, Phoenix, Arizona 85019

[email protected] • www.laspecialties.com

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

ONE STOP SHOP

Are you looking for?ELECTROLESS NICKEL

BRIGHT NICKELPASSIVATION

CHEM FILM - CLEAR OR YELLOWCOPPER or CHROME PLATING

POWDERCOATINGPOLISHING

GLASSBEADINGVIBRATORY DEBURRING or FINISHING

ULTRASONIC CLEANINGPRE & POST BAKESTRESS RELIEVE

PAINT/NICKEL/CHROME STRIPPING

Pick up and delivery upon request.

ATMA_0202_FINAL_Layout 1 6/18/11 7:07 AM Page 32

arizonatooling.org / 19

• 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

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.

www.SunGrindingUSA.com

For All Your Grinding Needs!

[email protected] / 522 E. Buckeye Rd. Phoenix, AZ. 85004

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.

ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

Page 28: Precision News November/December 2013

26 PrecisionNews arizonatooling.org november/december2013

PrecisionNews//NTMA-SAN DIEGO CHAPTER

MEMBERLISTINGS

Terry Deane Advanced Machining and Tooling 858.486.9050

Sean Tillett Alphatec Spine 760.494.6774

Peter Neville B&H Tool Company Inc. 800.272.8878

Alejandra Rogue BMW Precision 760.439.6813

Lyle Anderson C&H Machine and EDM Services 760.746.6459

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

Erich Wilms Diversified Tool & Die 760.598.9100

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

Antonio Dominquez Johnson Matthey, Inc. 888.904.6727

Heather Russell K-Tech Machine, Inc. 760.471.9262

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

Mark Rottele Roettele Industries 909.606.8252

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

Steve Doda Associate Member Aerotek

Karen Morris Green IMS Metal Supply Associate Member

2013 BOARD OF DIRECTORS

PresidentSEAN TILLETTAlphatec Spine

Vice PresidentCLIFF MANZKE

Corporate Secretary and TreasurerHEATHER RUSSELL

K-Tech Machine

MembershipMIKE BROWN

Computer Integrated Machining

Past PresidentTONY MARTINDALEMartindale Manufacturing

BOARD MEMBERS

Education Board MemberJohn Riego de Dios

Construction Tech Academy

Member at LargeLyle Anderson

Member at LargeMichael Brown

Chapter ExecutiveTammy Tillett

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: 760.419.1393

www.ntmasandiego.org

SAN DIEGOCHAPTER

San Diego - NTMA Chapter EVENTSNovember Board meeting • 11/07/2013Kearny Construction Tec AcademyMembers meeting • 11/21/2013Shop TourDecemberBoard meeting • 12/05/2013San Pasquel High Machine TecNo MeetingHave a Safe and Merry ChristmasJanuary Board meeting Kearny • 01/02/2014Kearny Construction Tec AcademyMembers meeting • 11/21/2013To Be Annouced

Visit www.ntmasandiego.org for details as they become available.

Page 29: Precision News November/December 2013

november/december 2013 arizonatooling.org PrecisionNews 27

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.

YOUR NEWTOOL OFTHE TRADE.PRECISION NEWS READERS ARE KEY DECISION MAKERS THAT YOU AS AN ADVERTISERWANT TO REACH. OUR READERSWANT AN EDGE IN A CONSTANTLYEVOLVING INDUSTRY AND THEYFIND IT IN PRECISION NEWS!

Let your ad be a call to action!Contact Precision News today for more details at:[email protected]

PrecisionNewsTM

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

arizonatooling.org

VISIT:NTMA.ORG800-248-6862

Page 30: Precision News November/December 2013

2013 BOARD OF DIRECTORS

PresidentTODD ELLARD

Manda Machine Company

Vice PresidentJEFF SPENCERClay Precision

TreasurerBARRON SMITH

R.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 & EVENTSAugust, 2013 Meeting Sponsor: Applegate EDM

September, 2013 Meeting Sponsor: Golf Tournament

November 21, 2013 – General MeetingNo December Meeting – Merry Christmas!

January 23, 2014 – Manda Machine Company

NORTH TEXASCHAPTER

28 PrecisionNews arizonatooling.org november/december2013

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november/december 2013 arizonatooling.org PrecisionNews 29

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

Randy Joyce Joyce Engraving Company, Inc. 214.638.1262

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

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

Guy Allen All Special, Inc. 972.641.0110

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

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

arizonatooling.org / 19

• 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

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30 PrecisionNews arizonatooling.org november/december2013

Feature Focus//PrecisionNews

Technology Advances inWire EDM

The wire EDMwas developed in the 1960’s, but didn’t really burst onto the manufacturing scene in the late 70’s and early 80’s. It was really a gamechanger for the industry at the time. It was the breakthrough technologythat removed the labor intensive grinding process of the dies.

Over the years, many different machine tool processes have tried to replacethe wire EDM process, but have all failed to fully capture all the true benefitsthat the wire EDM has in the scope of manufacturing. The wire EDMincorporated extreme high accuracy, superior surface finish, a low machineoperating cost, and the ability to run unattended machining. All thesebenefits wrapped into one machine far outweigh the one major complaintabout the process, “it is too slow”. This is true; the speed of the wire EDMprocess has not improved vastly over the past fifty years, but that is not to saythe wire EDM has not made significant technology advances in recent years.

Mitsubishi EDM debuted the MV Series Wire EDM in early 2012. It wasimmediately marked as the Game Changer in the field of Wire EDM. It produced much better overall surface finishes, improved the machiningaccuracy, and also greatly reduced the machine operating costs by upward to 60% compared to previous models. The Mitsubishi MV-Series even

went one step further and also improved the speeds by up to 25%than previous models. The Mitsubishi MV Series wire EDM

machine took the wire EDM process to the next level, andwill continue to push the envelope on EDM technologyadvances for the next fifty plus years.

For more information, contact GLENN ZACHMANat North/South Machinery, Inc. He can be reached at

602.391.4696.Learn more at: www.northsouthmachinery.com

When one starts to think about the recent technology advancesin manufacturing, very few think about the wire EDMand howit has evolved over the past fifty years or so.

+

fyi:The new cylindrical drive

technology uses a linear shaft motor. Mitsubishi’s round magnetic shaft creates a non-contact design using full 360-degrees of magnetic

flux. This design delivers no wear, no cogging and

no backlash.

Page 33: Precision News November/December 2013
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32 PrecisionNews arizonatooling.org november/december2013

There have been a number of major changes to theHazard Communication Standard (HCS) recently—many relating to the new United Nations Globally Harmonized System ofClassification and Labeling of Chemicals. (GHS).

The changes are sweeping, and the ramifications far-reaching forall companies that must comply with HCS. This is the year you’llneed to train employees on how to read and understand GHSformatted safety data sheets (SDSs) and labels—so now is thetime to lay the groundwork for compliance.

CHECKLIST • Train employees to recognize substances that are hazardous,understand the hazards, understand GHS-compliant labels andSDSs, take proper precautions to prevent exposures and otherincidents, and report spills and other problems related tohazardous materials in the workplace. You have only untilDecember 1 to train employees on GHS labels and SDSs.

• Make sure all containers are properly labeled.

• Ensure availability of SDSs. Employees should have access at all times to the SDSs they need at all times.

• Review your plan periodically and keep it up to date with changes in the workplace and changes in hazards.

• Develop a written hazard communication plan, including a list of the hazardous chemicals you’ve identified, procedures forcommunicating hazards, the names of the individuals in theorganization responsible for managing the program, and so on.

• Update your SDS files as necessary. Make sure employees are using the most current SDS.

• Make sure that employees for whom English is a second language fully understand hazards and required precautions.Translate written materials and/or use translators to ensurecomprehension if necessary.

References: https://www.osha.gov/dsg/hazcom/index.html

OSHA.gov, Arizona Division of Occupational Safety and Health (ADOSH).

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

11 O’Clock is Upon UsGHS Ready or Not

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shop FloorNEWS FROM THE FRONT LINES

from THE ATMA SAFETY TEAM

Effective Completion Date Requirement(s) Who

December 1, 2013 Train employees on the new label elements andsafety data sheet (SDS) format.

Employers

June 1, 2015 -December 1, 2015

Compliance with all modified provisions of this finalrule, except: The Distributor shall not ship containerslabeled by the chemical manufacturer or importerunless it is a GHS label

Chemical manufacturers,importers, distributors andemployers

June 1, 2016 Update alternative workplace labeling and hazardcommunication program as necessary, and provideadditional employee training for newly identifiedphysical or health hazards.

Employers

Page 35: Precision News November/December 2013

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Page 36: Precision News November/December 2013