nov dec 2010 copy · covered under credit insurance. in the us, although credit insurance is not...

November/December 2010 The Crucible • 3

The CRUCIBLE is published six times each year in February, April, June, August, October and December by the Non-Ferrous Found-ers’ Society 1480 Renaissance Drive, Suite 310, Park Ridge, IL 60068 (847) 299-0950. Copyrighted 2010 by the Non-Ferrous Founders’ Society. All rights reserved. Statements of fact and opinion are made on the responsibility of the authors and do not necessarily imply an opinion on the part of the officers or membership of the Non-Ferrous Founders’ Society.

I previously reported that 2010 marked the 25th Anniversary of my coming on board with the Non-Ferrous Founders’ Society. That fact (more than any purported short-term memory loss) got me to thinking about how different things are for the Society today - as opposed to then.

Back then, there seemed to be a marked “lull” in the association’s activity level from the conclusion of the Annual Meeting until after New Year’s. Yes, we still produced the newsletter and the magazine, but apart from that things were definitely slower – and perhaps easier - than they had been in the weeks leading up to the Annual Meeting. Those days are now gone forever.

Since returning from the meeting in Hilton Head in October, the Society’s staff has been hard at work developing several new programs and changing others – all to benefit our members and to make it easier to answer the question we get asked so often these days – “What do I get for my NFFS dues investment?”. Updates on a few of those activities are contained in this issue of the magazine. Another was reported in the November NFFS Notes newsletter. Let me draw your attention to just a few.

In the newsletter, the Society announced the creation of a new 401K Multiple Employer Plan (MEP) with Transamerica Retirement Services. An MEP is a retirement plan that covers employers that typically have a common interest (like membership in the same trade association) but are not commonly owned. These companies become “Adopting Employers” when they elect to join the MEP. By joining the NFFS MEP, member foundries and their employees are able to gain access to many new and enhanced retirement plan features – including greatly reduced fees and administration expenses for their 401K program. NFFS will be offering a webinar to review the benefits and savings available to Members Only in early January.

In this magazine, you can read all about the Society’s new NFFStar Safety & Health Improvement Program, which has been designed to help member foundries confirm which OSHA standards and “National Emphasis Programs” apply to their foundry and what they should be doing now to avoid potential problems later – like when an OSHA inspector comes knocking at their door. With so many rules and standards to try to meet, it helps to be able to break the elephant down into small bite-sized pieces, and this new program can do just that. Once again, however, the benefits of this program will be limited to Members Only.

This issue also includes a photo recap of the Society’s 2010 Annual Meeting in Hilton Head, South Carolina. The reviews from attendees tell us we had another strong program this year, the hotel was terrific, the menus and foodservice were fabulous, and the weather was perfect.

Lastly – for now – in our 2010 Annual Report issue the Society announced plans for its 2011 European Study Tour ending at GIFA Trade Fair in Dusseldorf next June. Since then, however, we’ve made several changes to the itinerary – largely due to recommendations from both the Swiss and French foundry associations assisting us in arranging tours and visits to their member plants. The actual list of facilities we’ll be visiting is still being finalized, but at this point it seems likely that the Study Tour will visit at least a dozen foundries and two technical centers in three (perhaps four) countries en route to the GIFA show. A registration brochure is enclosed in this issue.

Of course, there’s even more news coming, but I seem to be running out of space. So you’ll just have to stay tuned for more news and announcements after the Holidays. As I said, the staff has been busy, and there’s a lot more to come.

Non-Ferrous Founders’ Society2010/2011 Executive Committee

PRESIDENTStan BassFt. Worth Aluminum Foundry, Inc.

VICE PRESIDENTBryan BeckBeck Aluminum

TREASURER Bill MehlenbeckCast Technologies Inc.

DIRECTOR Bill SurmanI. Schumann & Co.

DIRECTOR R. J. KuhnReliable Castings

HEADQUARTERS 1480 Renaissance Drive, #310Park Ridge IL 60068(847) [email protected]

EXECUTIVE DIRECTOR/EDITORJames L. Mallory, [email protected]

CONTRIBUTING EDITORSJerrod A. Weaver, CAE Quality/[email protected]

Ryan J. Moore, CAE Member [email protected]

LAYOUT & DESIGNMichael Barron Barron Layout & [email protected]

It seemed that by even mid-2008, our economy was still going strong and there was a feeling of continued prosperity ahead of us. Then all of a sudden we were totally shocked by the ultimate collapse of Bear Stearns (and its sale to JP Morgan at pennies on the dollar) and subsequently other major investment houses. Since then we have witnessed the collapse of the US auto industry and have been grappling with an economy that has produced thousands and thousands of business bankruptcies. The number of business bankruptcy filings nationwide in 2008 totaled 43,546, which was almost double that of the 23,889 business bankruptcy filings reported in 2007. Furthermore, according to the American Bankruptcy Institute, the total number of business bankruptcies (either Chapter 11 or Chapter 7) for 2009 came to 60,837. Where this economic black hole will lead us is anybody’s guess but with so many well-known and “built to last” companies declaring bankruptcy, we can longer assume that even our “blue chip” customers are immune from falling prey to financial collapse. I’m not trying to be all “gloom & doom” in this article but at this point you should not only be seriously thinking about the financial stability of your customers but you should also be taking as many credit risk management precautions as possible to protect your company in these very uncertain economic times.

Besides the tools, equipment and machines that many NFFS

members consider to be their prized assets, your accounts receivables are also one of your very valuable assets. However, it is an asset that unfortunately most company owners and managers may not really understand. In its simplest terms, an accounts receivable represents the monies that your customer owes you. However, more completely it represents all of the labor and material resources that you have utilized in order to create, market, manufacture, ship and sell your products and services, all on the promise that you will be paid. And what happens if your accounts receivable never gets paid? Can your company weather this loss? The problem may not lie with your customer, who you know very well and have done business with for many years, but with your customer’s customer about whom you know very little. In normal times this happens occasionally but in this economy, especially in view of all the bankruptcies related to certain industries such as auto, housing, manufacturing, and construction, it will most likely happen much more often and could seriously impact your cash flow, bringing your own company to a complete halt. We may think that we know our customer but often we don’t know our customer’s customer, and herein lies the risk.

With the above in mind, Accounts Receivables Insurance (also known as Credit Insurance), is a before sales credit risk management product that insures your commercial accounts receivables against your customer’s failure to pay

In these unprecedented economic times, Commercial Credit Insurance can be an indispensable tool for minimizing the impact to your company due to a customer bankruptcy.

By: Steven Gan

4 • The Crucible November/December 2010

or bankruptcy. In other words, even if your customer defaults on payment or goes bankrupt, the credit insurance company will step in and insure that you receive your payment. In Europe over 80% of all commercial transactions are covered under credit insurance. In the US, although credit insurance is not very well known, it is a multi-billion dollar industry. The credit insurance industry is comprised of about 10 major insurance companies that include: Atradius, Euler ACI, Coface-USA, FCIA, QBE-USA, Ex-Im Bank, AIG, Lloyds, Chubb Group, and Zurich. Some of the credit insurance companies will cover both domestic and overseas receivables, while others will concentrate only on insuring overseas receivables. Some provide a variety of credit risk services such as credit reports, factoring, and debt collection, while others provide only credit insurance coverage. Regardless, depending upon the insured’s industry, history of losses, and creditworthiness of its customers, credit insurance policies are very flexible and can be tailored to fit the insured’s needs. At the most basic level, credit insurance is designed to protect a company from unexpected large losses due to the insolvency or payment default on the part of the insured’s customers. The above-mentioned underwriters who specialize in this unique coverage, will in most cases, conduct credit evaluations on the accounts that a company wishes to insure and approve them for specific coverage limits. The coverage limits are determined based upon requests by the insured and the results of the credit investigation. Given this active credit investigation on the part of the insurer, credit insurance should be approached as a tool you can use to grant credit to companies in the event of a possible loss for which you are looking to shelter. The first step to understanding if a credit insurance program is a good fit for your company is to identify the potential risk within your customer base and accounts receivable portfolio. If there are significant customers overseas to whom you are selling on credit then this would be considered a risk. Or, if there is a significant pool of customers within your customer base that occupy a large percentage of your total sales, whereby even one default would have an impact on cash flow, then this also would be considered a risk situation. Credit insurance policies can be tailored for specific credit risks, so coverage details vary. Some policies may cover an entire accounts receivable portfolio while others may cover only the top 10 customers. Some policies may contain both deductibles and co-insurance — it all depends upon the needs of the policyholder and the risks within the portfolio. As I had mentioned above, the main events that are covered under a credit insurance policy are Payment

Default and Bankruptcy of a customer. Payment Default is defined as the customer having the will and volition to pay but not the ability to pay. Disputes against the products or services sold are not immediately covered by the credit insurer. If they cannot be resolved amicably, then they will need to be settled in court with a judgment in favor of the policyholder before being reimbursed by the credit insurance carrier. Conversely, any time that a bankruptcy is declared, whether it is Chapters 11 or 7, the claim will be immediately recognized by the credit insurance carrier and payment will be forthcoming shortly. Although credit insurance is a safety net that protects a company’s receivables, not every customer can be covered under a policy. Prior to entering into a policy, credit insurers will perform an underwriting process in which the credit worthiness of all the major accounts are reviewed. During this process, any negative information—such as lawsuits, history of non-payments, or other issues against the customer—may come to light, which could affect the possibility of coverage. Depending upon the degree of the negative information, some policyholders may be covered only up to a certain limit or not at all.

How much does credit insurance cost? Generally speaking, the premium is based upon a potential insured’s estimated annual sales. For example, if sales were about $10 million then the premium rate would range between 0.15 – 0.25% and the premium would be about $15,000 - $25,000 per premium period (usually one year).

There are several factors that influence a premium rate such as:

n4 Industry of the Insured

n4 Pool of Customers Being Covered

n4 Creditworthiness of Customers

n4 Customer Location (domestic or international)

n4 Deductible Amount (this is always an annual aggregate amount)

n4 Previous Loss History

n4 Financial Condition of the Insured

n4 Internal Credit Management Control of the Insured



How much is paid out? Depending upon the amount of the deductible and the co-insurance that an insured has with their policy, credit Insurance generally pays out between 80 – 90% of the loss. Payments will be reduced by the return or salvage of any equipment and inventory. Subsequently, the credit insurance carrier takes over the receivable as the creditor and either performs collection activities against the debtor or stands in line as one of the unsecured creditors. In addition, depending upon other secured interests that the creditor may have against the debtor, all these secured interests will need to be perfected prior to any payouts.

Enhancement of Borrowing Power

Although the main goal of Credit Insurance is Accounts Receivable loss protection, it is often used as a way of Enhancing Borrowing Power If the insured is using its receivables as collateral for a line of credit (working capital loan), credit insurance can provide additional comfort and protection to the lender so that they may be able to enhance the borrowing arrangements. They do this by increasing the percentage they will advance against insured accounts, and/or roping more accounts into the borrowing base – such as large concentrations, slow payers, export customers, etc. This allows the insured to maximize the amount of working

capital available from the same pool of receivables. If the insured is in a high growth mode and finds himself in need of more working capital, credit insurance is a great way to resolve this problem.

I hope the above has given you a solid idea of how you can continue to offer your customers credit terms while at the same time create a safety net that will not only insure your accounts receivables from getting hammered in this economic abyss but to actually support your company’s continued success during these very turbulent times. Steven Gan is the founder and president of Stellar Risk Management Services, Inc., in Northbrook, IL providing credit risk management products and services that increase cash flow and minimize the risk of doing business on credit. Prior to this, Steven Gan operated his own accounts receivable management company in Tokyo for 15 years. He is a native of Chicago, Illinois and graduated from the University of Illinois with a BS in Electrical Engineering and graduated from the Thunderbird – Garvin Graduate School with a Master’s of International Management. Mr. Gan is also a Certified Public Accountant and a Certified Credit Executive. He can be contacted at [email protected] or 847-714-0121.

In November 2010, the U.S. Department of Labor’s Bureau of Labor Statistics announced that the number of reported nonfatal occupational injury and illness cases that required days away from work to recuperate decreased by nine percent to 1,238,490 cases in 2009 for private industry, state government and local government.

In response, Dr. David Michaels, assistant secretary of labor for occupational safety and health, issued this statement: “Injuries and illnesses requiring time away from work to recuperate can be costly to both employers and employees alike, often resulting in lost productivity for employers and lost wages for workers.” Dr. Michaels further noted: “Although it is encouraging to see a reduction in the total number of days away from work for injuries and illnesses suffered by workers in 2009, we know that economic conditions may have weighed heavily on the decline. Specifically, a decrease in employment and total hours worked, especially in construction and manufacturing, has led to fewer workers exposed to safety and health hazards in the workplace. As the economy improves, more Americans back on the job could potentially lead to easily preventable work-related injuries and illnesses.”

Clearly the fact that the number incidents reported in 2009 were trending downward is a good thing. But as Dr. Michaels notes, lower numbers within the labor force due to economic contraction may be at least partially responsible for the reduction. However, it does not account for the entire reported reduction. At least part of the reduction can also be attributed to improvement of safety and health systems within industry.The fact is that industry continues to improve their safety and health programs over time. Many firms continually seek to improve the effectiveness of their safety programs by providing on-going safety training, improving operational controls within work areas and by identifying additional opportunities for improvement thru various methods.

Ongoing conversations with our membership and other foundry managers have reiterated that identifying opportunities to improve their safety programs is an ongoing need within their facilities. They point out that an independent third party review of their safety and health programs would be helpful in identifying such opportunities.

In response, the Non-Ferrous Founders’ Society (NFFS) is pleased to announce the release of yet another important membership benefit program. The NFFStar Safety and Health Improvement Program (NFFSHIP) has been designed to review a foundry’s safety and health programs, and to assist the foundry with evaluating them against the most recent OSHA enforcement efforts and interpretations as well as identifying opportunities for improvement.

The program consists of an in-plant evaluation of the foundry’s written safety and health programs, procedures, and employee training programs.

Based upon the result of the NFFSHIP evaluation, NFFS will assist its member with resolution of any identified opportunities for improvement. This includes providing template documents and training programs for areas such as Hazard Communication, Hearing Conservation, PPE, Bloodborne Pathogens, Respiratory Protection, Lockout/Tagout, Confined Space, and many more. Additionally, NFFS members always have access to our safety/health/environmental experts who can assist them with individual requirements, and usually without cost. The NFFSHIP review should take no more than one day duration for most facilities. This helps keep the costs associated with the program as low as possible.

In order to assist with preparing of the facility visit, NFFSHIP participants will be provided with a “Client Preparation Checklist” prior to the site visit. The checklist will identify each of the record sets, written procedures, sampling procedures, and other documents that must be assembled by the foundry


prior to the review. This greatly improves the efficiency of the process so that no time is wasted while documents and records are located.

The checklist also provides a general overview of the facility walkthrough, including many of the specific items that will be specifically reviewed. For example, are electrical control boxes marked with the following information: The name of the manufacturer? The voltage? The equipment controlled by the box? This will greatly assist the foundry with understanding the NFFSHIP evaluation process, as well OSHA requirements.

Upon request, a written report can be provided to the NFFS member regarding the facility visit.

Developed in conjunction with Joseph A Guimond & Associates, NFFSHIP is the direct result of our members’ requests and feedback. Martha Guimond, already well known among the NFFS membership, will conduct the foundry review process. Those of you who know Martha Guimond know just how exceptional she is in understanding foundries and in providing no-nonsense compliance assistance.

This program is limited to members of the Non-Ferrous Founders’ Society only, and is not without cost. However, the cost of this program is minimal in comparison to the costs incurred by a single OSHA citation, or the cost of an employee injury.

As an example, the NFFSHIP program will include a review of the following items:

: Recordkeeping of annual training programs, including Hearing Conservation, HazardCommunication, Lockout/ Tagout, Confined Space, Electrical Safety and Personal Protective Equipment;

: Medial Surveillance requirements for Hearing Conservation and Respiratory Protection Programs;

: Fit testing and selection criteria for Respirators and Hearing Protection;

: Evaluation of written programs to meet the increased emphasis of the OSHA area offices on meeting the detailed requirements for these plans;

Also included is a general walkthrough of the facility to verify enforcement of the programs within the workplace. This includes a general review of the facility against the current requirements and enforcement programs of the regional OSHA offices.

Supplier PartnersThe Non-Ferrous Founders’ Society

is pleased to acknowledge the following companies in its 2010

Supplier Partner program:


Continued on page 13

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Continued from page 9 A review of the callout within this article demonstrates the most common citations issued by OSHA to firms within the 3300 SIC codes over the past year, and the associated dollar amounts of fines issued. Clearly, the dollars amounts are significant for any OSHA citation, and are significantly more than the cost of the NFFSHIP program.

Beyond that, however, is the fact that by participating in a voluntary evaluation of your safety and health programs, and taking actions to improve them, you are proactively managing safety/health within the foundry rather than reacting to possible citations by various inspection agencies.

While it is not guaranteed that EVERY potential violation will be discovered during the NFFSHIP visit, it will help your staff to understand the requirements of your safety and health programs and will help them to identify potential problems in the future. The internal skills development and knowledge building is a very important part of this program’s results.

The NFFSHIP program is exactly the program you need to identify potential improvements to your systems, to safeguard your employees’ safety and to ensure your foundry’s safety and health program, procedures and record sets are as complete as possible. For further information about the NFFSHIP program, or any other NFFS membership programming, contact the Non-Ferrous Founders’ Society office (847-299-0950) or visit the NFFS website (www.nffs.org).

TOP OSHACitations in the 3300 SIC Codes between

October 2009 and September 2010

Citations #of Total($)Topic

Issued Inspections Fines

132 70 201,779 The control of hazardous energy (lockout/tagout) 124 26 616,278 Lead 114 50 82,238 Respiratory Protection 114 64 85,085 Wiring methods, components, and equipment for general use 107 86 261,724 General requirements for all machines 89 57 25,970 Hazard Communications 77 53 123,126 Guarding floor and wall openings and holes 75 42 58,578 Powered industrial trucks 75 46 89,132 Electrical Safety 66 30 93,220 Occupational noise exposure 54 44 104,505 Personal Protective Equipment 47 36 58,625 Walking/Work Surfaces 41 25 14,815 Forms 37 24 34,892 Abrasive Wheel machinery


INDUSTRY BRIEFS

PREMIERE STAGING OF 2011 VALVE WORLD AMERICAS EXPO ANNOUNCED The first staging of Valve World Expo Americas will be held from June 21 - 22, 2011 in the Woodlands Waterways Marriott Hotel & Convention Center near Houston, Texas. This conference with an exhibition component will be a collaboration between Messe Düsseldorf and KCI Publishing, both already cooperating for the Valve World Expo held in Düsseldorf, Germany every two years. Both partners will use their expertise from Valve World Expo in Europe to develop the new Valve World Expo Americas 2011 into a leading event for the industry on the North and South American continents.

At the conference and expo, attendees will get an extensive overview of technical innovations concerning valves, valve-related products and valve–related piping products, seals and sealing materials as well as engineering, LDAR (Leak Detection and Repair) software, S.I.S and services. The latest technical trends to be presented at Valve World Expo Americas 2011 will be of particular interest to visitors from sectors such as shipbuilding, on/offshore oil and gas industries, the chemical and power industries, the marine and offshore industries as well as machine and plant engineering and the food industry.

In 2009, Messe Düsseldorf acquired Valve World Expo, the leading global event for valves and valve accessories, from KCI Publishing. The company launched the trade fair in 1998 and has been responsible for organizing and running the event in the Dutch city of Maastricht every two years since then. From November 30 – December 2, 2010, the Valve World Expo together with the Valve World Conference will take place at the fairgrounds in Düsseldorf.

For information on exhibiting at Valve World Expo Americas 2011, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312) 781-5180; Fax: (312) 781-5188; E-mail: [email protected]. For information about attending the conference, contact KCI Publishing, Mr. Christian Borrmann, Tel. +31 575 585-276; e-mail: [email protected].

NEW SOCIETY DIRECTORS SELECTED

NFFS members attending the Annual Business Luncheon held during the Society’s 2010 Annual Meeting in Hilton Head, SC ratified the election of several new Directors and Executive Committee members.

Bill Mehlenbeck of Cast Technologies (Peoria, IL) was re-elected to serve a second one-year term as Treasurer and Chairman of the Finance Committee. Bill Surman from I. Schumann & Co. (Bedford, OH) and R.J. Kuhn of Reliable Castings (Cincinnati, OH) were once again named to service on the Executive Committee. Current NFFS President Stan Bass (Fort Worth Aluminum Foundry) and Vice-President Bryan Beck (Beck Aluminum) retain their offices until the 2011 Annual Meeting.

Two new Directors - Steve Horvath of Brost Foundry (Cleveland, OH) and George Mugford of Bunting Bearings (Holland, OH) - were elected to serve initial three year terms ending in 2013. Three other individuals were elected to serve their second three-year Board terms: Ivan Betcherman of Ingot Metals Ltd. (Weston, ON); Gary Ferguson of C&L Aluminum (Fort Worth, TX); and Chip Shamburg of Erie Bronze & Aluminum (Erie, PA).

The Society expressed its appreciation to two individuals whose service as members of the Board ended at the 2010 Annual Meeting – Michael Mann of Colonial Metals (Columbia, PA), and Rob Zimmerman of Le Claire Mfg (Bettendorf, IA).

B&L HOSTS USER CONFERENCE

B&L Information Systems, Inc. recently held its annual user conference at the historic Brown Hotel in Louisville, KY. Over 100 people attended, including customers, business partners and B&L employees.

The conference featured general sessions discussing the future of B&L products and services and over 25 mini-classes, business partner sessions and roundtable discussions all focused on increasing the payback factor for B&L software. The company also announced a new module for the Odyssey product called Supplier Portal that will enable B&L customers to empower their supplier chain with more accurate and timely information and improved communication between metal caster and supplier. Attendees also enjoyed an evening at the Muhammad Ali center in downtown Louisville.


On October 19th, the Occupational Safety and Health Administration (OSHA) issued a notice announcing its intention to change its official interpretation of workplace noise exposure standards and enforcement. Currently, OSHA regulates the acceptable levels of noise to which employees are exposed in the workplace.

To protect employees against hearing loss, the Agency allows employers to provide personal protective equipment such as earplugs and ear muffs as well as engineering controls like noise dampening equipment and muffling systems to supplement their operating practices. OSHA’s common-sense approach held that it was permissible for employers to adopt these practices when they were effective.

However, OSHA now plans to abandon this practice. In its notice, the Agency announces a goal of requiring employers to implement all “feasible” controls – with “feasible” meaning “capable of being done”– regardless of the costs or effectiveness of currently-used personal protective equipment. Consequently, employers must make sweeping changes to their workplaces, introduce new workplace practices and install new equipment even if effective mechanisms are already in place to protect employees from loud noises.

According to the notice, these changes must be adopted regardless of the costs unless an employer can prove that making such changes will “put them out of business” or threaten the company’s “viability.” Should this policy advance, OSHA will begin enforcing it with citations. Unless employers can prove to OSHA inspection officers that the changes will be economically devastating or are impossible to make, businesses will be forced to implement them, which will be particularly costly and burdensome for small manufacturers. Obviously, these new OSHA regulations would force manufacturers to divert additional resources away from job creation, investment and expansion.

WELCOME NEW MEMBER

FRANKLIN BRONZE & ALLOY CO., INC.655 Grant StreetFranklin, PA 16323Phone: 814-432-2230Fax: 814-437-3309Contact: Ron Tarr, GM - SandcastEmail: [email protected]: www.franklinbronze.com

OSHA TO REVISE NOISE HAZARD RULES

www.gifa.com

Welcome to the 12th International Foundry Trade Fair with WFO Technical Forum! Technologies, machinery, processes and innovations create a business forum of worldwide importance.

The focus will be on innovations for energy and resource effi -ciency as well as sustainability, especially highlighted by the exhibitors in the ecoMetals segment.

Düsseldorf,Germany June 28 – July 2, 2011

gif1102_AZ-GIF_89x254_US.indd 1 26.08.2010 14:32:40 Uhr


INDUSTRY BRIEFS

NFFS ANNouNceS New 401K ProgrAm For memberS The Non-Ferrous Founders’ Society (NFFS) recently announced the creation of an exciting new Multiple Employer 401(k) Retirement Plan for its members. As of January 1, 2011, the Society will create a 401(k) Multiple Employer Plan (MEP) with Transamerica Retirement Services. Transamerica manages more than $16.5 billion in plan assets for over 15,500 plans, including more than 200 Multiple Employer Plans (MEP), with over 6,000 Adopting Employers. An MEP is a retirement plan that covers employers that typically have a common interest, but that are not commonly owned. These employers become “Adopting Employers” when they elect to join the MEP. These plans can be either defined contribution (DC) or defined benefit (DB) plans. By joining the NFFS MEP, a smaller company can achieve the economies of scale that have generally been reserved for large businesses. In addition, services and features of an MEP are generally less expensive

than what a small business typically may receive on their own from a retirement plan provider.

“NFFS remains dedicated to continually enhancing our products and services to meet the ever changing needs of our members,” said Executive Director Jim Mallory. “One of our top goals is to offer member foundries access to the most competitive programs, products and services available in the marketplace today. By sponsoring our MEP with Transamerica, NFFS members and their employees gain access to many new and enhanced retirement plan features – including greatly reduced fees and administration expenses for their 401K program.” NFFS will offer a webinar to review the benefits and savings available to Members Only sometime in early January. Additonal information will also be posted on the Society’s website at www.nffs.org.

The Non-Ferrous Founders’ Society (NFFS) has developed an alliance with Transamerica Retirement Services (“Transamerica”) to offer member foundries a unique retirement savings plan solution. It not only offers tax advantages for your company, but it also helps give your employees a foundation for solid retirement planning, a major consideration for employee retention and recruitment.

NFFS has selected Transamerica so that you will have unparalleled support to help you implement the right plan for your needs. Some key advantages:

• Allows you to customize the plan’s design to meet your company’s retirement plan goals

• Access to easy-to-use enrollment, educational, and employee communications materials to help increase the level of plan participation

• Save time and money by reducing your administrative duties

• The Non-Ferrous Founders’ Society will support the administrative and fiduciary role as the primary sponsor

Would you like to offer your employees a 401(k) retirement plan?Do you understand the tax benefits of offering a 401(k) retirement plan?

Would you like to boost employee participation in your 401(k) retirement plan?

For information on your new retirement plan offering or for a free plan design consultation please contact the Non-Ferrous Founders’ Society today.

Transamerica Retirement Services and its representatives cannot give ERISA, tax or legal advice. This material is provided for informational purposes only based on our understanding of material provided and should not be construed as ERISA, tax or legal advice. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. Although care has been taken in preparing this material and presenting it accurately, Transamerica Retirement Services disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it.

Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road, Purchase, New York 10577, and other of its affiliates, specializes in the promotion of retirement plan products and services. This product is available from Transamerica Retirement Services under contract form number TA-AP-2001-CONT, a group variable annuity contract underwritten by TFLIC. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. Fees and charges may apply. For complete information, contact your Transamerica representative.


INDUSTRY BRIEFS

Bardane Manufacturing Company, Jermyn, PA (ANSI/ISO/ASQ Q9001:2000)Contact: George GarrickPhone: 570-876-4844Fax: 571-876-1938

Excal, Inc., Mills, WY (ANSI/ISO/ASQ Q9001:2000)Contact: Russ ForneyPhone: 307-237-0920Fax: 307-237-0929

Precision Enterprises, Inc. Warrenville, IL (ANSI/ISO/ASQ Q9001:2000)Contact: Jeff SchraderPhone: 630/393-3050Fax: 630/393-3847

Sandwich Casting and Machine, Sandwich, IL (ANSI/ISO/ASQ Q9001:2000)Contact: Keith KochPhone: 815-786-6616Fax: 815-786-7263

Trialco, Inc., Chicago Heights, IL (ANSI/ISO/ASQ Q9001:2000)Contact: Mike MorrowPhone: 708-757-2100Fax: 708-757-3933

Quality CertificationsThe following companies have successfully passed quality certification and/or surveillance audits to the indicated standard. Unless otherwise noted, these certifications have been registered by the NFFS Quality Systems Registrar (NQSR).

WWW.BLINFO.COM (269) 465-6207

Americans seem destined to keep on working into what would have been their retirement years. A new MetLife study shows Americans will continue working out of financial necessity, beginning with the “Early Boomers”.

Though MetLife reports their findings as “startling news”, most of us will not be surprised by these results. Years ago, we forecasted the end of retirement as we had known it, but not out of necessity---rather out of the desire to keep contributing to society. The challenging economic times have changed that landscape---significantly---for retirees all over the world.

The study, called “The MetLife Report on Early Boomers” defines these Early Boomers as those born between 1946 and 1955. Due to economic circumstances, they will forego the traditional leisurely retirement and stay in the workforce---some indefinitely.

A mountain of college debt, second mortgages, and sometimes, second home ownership, have piled up. Dealing with these financial obligations, greatly diminished nest eggs, and fearing outliving their savings Early Boomers are in the position of having to work---whether they want to or not. On top of that, 25 percent have “Boomerang Kids”, mature children living with them.

Over the next 10 years aging Early Boomers will result in a 50 percent rise in the number of people 65 to 74 years old, a growth rate not seen in 50 years. By 2020, women will be head at least one-third of households, ages 65 to 74. Many of these women will have the additional responsibility of raising their grandchildren.

The labor force participation rate of Boomer men and women is at a 15-year high (65.2 percent); trends suggest that it will rise further in the future. High percentages of working Boomers have had white-collar jobs that were less physically demanding. Their high educational attainment and continuing fitness will facilitate more of them staying in the workforce over the next decade.

This continued labor force participation by these Boomers will create considerable challenges for Human Resources professionals both in accommodating their increasing needs and the larger issue of dealing with the younger generations who want to move ahead.

Trend Alerts are written by Joyce Gioia-Herman, strategic business futurist, Certified Management Consultant, author, and professional speaker. Archived editions are posted at http://www.hermangroup.com/archive.html

Trend Alert: Retirees Must Continue Working

nov dec 2010 copy · covered under credit insurance. in the us, although credit insurance is not...

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