precision news may/june2012

PrecisionNews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

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

TTHHIISS IISSSSUUEE:: April Showers / Coming Soon: “Taxmageddon” / Small Business Concerns / Got Foam?

TM

ARIZONATOOLING.ORGMAY/JUNE 2012

THECAPABILITYISSUE

IInnssiiddee::LIBERATE YOUR CAPACITY

LIBERATE YOUR UNTAPPED PRODUCTION CAPACITY AND THE ECONOMIC POTENTIAL OF YOUR BUSINESS

ADVANCED AEROSPACEENGINE PRODUCTION

TOTAL COMPONENT EXPERTISE IS KEY IN ACOMPETITIVE MANUFACTURING LANDSCAPE

BE A BETTER MANAGERIF YOU THINK THE ‘SAME OLD, SAME OLD’ STILLWORKS WITH YOUR EMPLOYEES, THINK AGAIN

POWERAMERICAN MANUFACTURING HASTHE

DESIGN,MANUFACTUREAND

IMPLEMENT

NTMA SW BRINGS YOU:

THEEXPERIENCEANDINSIGHTTOGETTHE JOBDONE!

TO ‘MAKE IT HERE’ AND REBUILD OUR ECONOMY

may/june2012 arizonatooling.org PrecisionNews 01

Contents101214

MAY/JUNE 2012 VOLUME 2 • ISSUE 3

PrecisionNews

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

EXECUTIVE DIRECTOR & EDITOR Chris Mignella

CONTRIBUTING WRITERSATMA Safety Team, Dante Fierros, Sean Holt, Margaret Jacoby, Omar Nashashibi, Brent Terhaar, Jeff Thredgold, Ted Szaniawski

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

EDITORIAL, ADVERTISING & ADDRESS CHANGESChris MignellaPhone: 602.388.5752 • Fax: 480.970.8501Email: [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 ©2012 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 DepartmentsSPECIAL ADVERTISING FEATURE

GOT FOAM?You purchase a brand new metal removal fluid for your shop. After filling your machine, expectations are high! But suddenly you have foam allover the shop floor! Great, now what do you do?

WAGING WAR TO LIBERATE CAPACITYManufacturing companies need to embark on their own “Great Crusade.” You need to focus on ways to liberate your untappedproduction capacity and the economic potential of your business.

EXPERTISE AND MANUFACTURINGMETHODS FOR ADVANCED AERO-SPACE ENGINE PRODUCTIONTotal component expertise is the key to success in such a competitive manufacturing landscape. Aligning key factors will help you compete on a global scale.

03 President’s Letter

04 Policy Matters

06 Trend Watch

08 People Power

18 Shop Floor

20 Websites that Work

20 Arizona Chapter Info

26 San Diego Chapter Info

28 North Texas Chapter Info

30 San Francisco Chapter Info

32 The Tea Leaf

APRIL SHOWERS

02 PrecisionNews arizonatooling.org may/june2012

We offer innovative metal finishing for the aerospace,industrial, electronic and commercial markets worldwide.

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CHEMRESEARCH CO., INC.

ChemResearch Co., Inc. is the largest multi-process metal finishing supplier in Arizona. Our processes include:

Steve Blok, Regional Sales Manager602-320-3518 • [email protected]

Frank Lopez, Estimator/Pricing Analyst602-253-4175 • [email protected]

AnodizeChrome Plate

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Dry Film LubeNon-Destructive Testing

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

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

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www.consolidatedresources.com

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ATMA MEMBER

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

.. .. . .


WELL, IN ARIZONA IT’S MORE LIKE APRIL SQUIRTS. While other states are receivinggood amounts of rain usually associated with the advent of spring, we in Arizona average 0.27,0.11 and 0.02 inches for April, May and June respectively. This dichotomy between wet and drystates can be likened to our member’s level of business currently. Some are experiencing adeluge of business while others only a trickle. What’s going on? Peeking through this cloud a bitfurther, it becomes clear that we receive opportunities that flow down to us from our customerand often times from our customer’s customer and so on up the ladder.

If our “up chain” is healthy and busy, opportunities for more production flow down to our membersobviously. On the other hand a loss or decrease in business in our “up chain” can spell disasterfor many of our member companies especially those with smaller and tighter budgets than someof the larger companies. We have all heard the adage, “If Boeing sneezes, we get pneumonia”.

WHAT ARE WE TO DO? WELL IF YOU ARE CURRENTLY SWAMPED, YOU SIMPLYCONTINUE WITH THE BUSINESS OF THE DAY AND LOOK FOR WAYS TO CONTINUALLYIMPROVE AND GROW. IF YOU ARE EXPERIENCING A “DRY SPELL” AND ARE LOOKINGFOR OPPORTUNITIES, A RIGOROUS OPPORTUNITY SEEKING AND COST CUTTINGSTRATEGY IS PROBABLY IN ORDER.

We in the ATMA seek to provide our members with as many tools as possible to help in manybusiness processes. Here are some examples of planned programs and updates:

• Business Opportunities, Positions Openings, and Resume Posts – Think of it as a bulletin board of projects, people seeking work and openings needing to be filled.

• Upcoming Interesting and insightful speakers – Scott Walker, VP of Mitsui Seiki, USA on “Current trends in Aerospace & demand for OEM outsourcing”. Mayors Greg Stanton of Phoenix and Scott Smith of Mesa, plus the “Edge Factor Television Program/Presentation” by producer/star Jeremy Bout (www.edgefactor.com). You won’t want to miss this outstanding manufacturing based presentation.

• OEM business development and buyer executive panel and presentations - Details TBA.

• “Arizona First”-ATMA’s own affinity program with discounts for ATMA members for all those products/services you use in your businesses from local companies-look for details on the website soon.

• Luke AFB tour-only 30 slots and they will fill up fast - Details TBA.

• PLUS all of the NTMA tools and services listed in this issue.

• But wait, there’s more-Our networking segments at our dinner meetings have been extended. Also, a fun and unique approach (“speed networking”) will be introduced at our June meeting to maximize the ability to meet more people during the networking segment of our meetings.

So if your business is experiencing the fruits of spring, use the ATMA resources to help continuethis season of plenty. If your business opportunities are as dry as the Sonora desert, then why notmaximize your use of the ATMA and what it has to offer. Let us help in making this a “water shed”year. We are here for you rain or shine.

APRIL SHOWERS

First WordPRESIDENT’S LETTER

DANTE O. FIERROSPresident

[email protected]


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Policy MattersTAXATION

As we passed another tax day in April,members of Congress in Washington andpoliticians from around the country spent afew days talking about their ideas to reformthe tax code. From flat tax, to a surtax, fromchild tax credits to eliminating the IRSentirely, politicians could not talk enoughabout how their plan would fix all ourcountry’s problems. However, the mainproblem is no one has presented a plausibleplan to solve the $5.4 trillion in tax increasesAmericans and businesses will face onJanuary 1, 2013.

Think April 15th is a bad day every year?Consider, for example, the pending“Taxmageddon” that will occur on January1st if Washington fails to take any action:

• Top individual tax rate increases to 39.6%

• Capital gains rate increases to 20%

THE U.S. HAS LONG LED THE WORLD IN INNOVATION, DEFENSE SPENDING, AND UNIVERSITYGRADUATES AMONG OTHER INDICATORS.NOW, EFFECTIVE APRIL 1, 2012, ADD THE DEVELOPED-WORLD’S HIGHESTCORPORATE TAX TO THE LIST. I SUSPECT MOST U.S. MANUFACTURERS PREFERRED WHEN JAPAN HELD THAT DUBIOUSDISTINCTION JUST A FEW SHORT WEEKS AGO.

• Estate Tax reduces to $1 millionexemption, 55% tax on excess

• Payroll tax cut expires

• Dividends taxed as ordinary income

• Reduced Child Tax Credit

And this does not include the $1.2 trillion,including over $400 billion defensespending, in mandatory budget cuts takingeffect January 1, 2013 as part of thesequestration budget deal last summer.Most believe that comprehensive tax reformwill not occur in 2012 but congressionalstaff and stakeholders are already puttingtogether their priorities amid the loomingdeadlines in preparation for “Taxmageddon.”

Before we examine how Washington willprevent what amounts to a tax increase of

$18,000 on every American, we mustexamine what politicians can accomplish in this presidential election year. Whileabolishing the IRS makes for goodRepublican primary politics, the currentpolitical makeup of Congress renders thatproposal little more than campaign rhetoric.Taxpayers must also be wary of proposalswhich claim to balance the budget and lowertax rates but do not identify which programsthey will cut, which entitlement programsthey will reform, or which tax credits anddeductions they will eliminate. This is thefundamental challenge we face heading intothe elections; the politicians promise themoon but know they cannot deliver.

Ignore, for a moment as Washington tendsto, that you must fix the budget by looking atboth revenues and spending at the sametime (after all, you should know your incomeand expenses before you start to balance

Projections suggest we will approach our $16.4 trillion debt limit in the fourth quarter of 2012.- Peter Orszag, bloomberg.com

“Taxmageddon”...In Theatres January 1st

+

fyi:For 2011, the CBO

projects that if current lawsremain unchanged, the federalbudget will show a deficit of close to $1.5 trillion, or 9.8

percent of GDP.- Congressional Budget

Office

by OMAR S. NASHASHIBI

ATMAP R E C I S I O N

D I S C O V E R & E X P E R I E N C E

Special Guests include Mayors Greg Stanton & Scott Smithand Jeremy Bout from the “Edge Factor” television show.visit arizonatooling.org and edgefactor.com for more information

S P O N S O R E D B Y :

Edge Factor’s ultimate goal: To revolutionize the stereotype of manufacturing as a “dark and dirty” industry to one that is filled with extreme technology, advanced

innovations and modern, exhilarating careers for the next generation.

PLEASE JOIN US WEDNESDAY, JUNE 27TH, FOR THIS SPECIAL DINNER EVENT!

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Framework does not address Subchapter S Corps, LLCs, Partnerships, and otherpass-throughs, which is how 80% of allmanufacturing businesses are structured –all paying individual income tax rates. ThePresident’s FY2013 Budget recommendsincreasing the top statutory individual taxrate to 39.6% which amounts to a significantincrease for these 80% of pass-throughmanufacturers who currently pay an average30% effective tax rate.

The President uses tax increases on the“wealthy” and many small manufacturingbusiness owners to pay for his tax cuts.However, House Republicans propose to

lower the top statutory rate for bothindividuals and all businesses to 25% but donot outline which tax credits and deductionsthey will eliminate while not increasing taxeselsewhere. Both proposals claim they arerevenue neutral yet neither details howwithout stifling the manufacturing economy.

All individuals and businesses are differentand we cannot take a one-size-fits-allapproach to tax reform. Few doubt we musteliminate tax deductions or credits in orderto achieve lower statutory tax rates. Thequestion is which ones?

“Taxmageddon” continues on page 28

Arizona Tooling & Machining Association


www.sandvik.coromant.com

+

your business’s budget). Today, we reallyonly have two mainstream detailedproposals – President Obama and theHouse Republican alternative presented byChairman Camp and House BudgetCommittee Chair Paul Ryan (R-WI).

President Obama calls for a reduced topeffective corporate tax of 28% and an evenlower 25% for C-Corporation manufacturers.The President is showing his politicalsupport for manufacturers by proposing toreduce the top corporate effective rate formanufacturers to 25% by expanding theSection 199 Domestic Production ActivityDeduction. However, the President’s

IGNORE, FOR A MOMENT ASWASHINGTON TENDS TO, THAT YOUMUST FIX THE BUDGET BY LOOKINGAT BOTH REVENUES AND SPENDINGAT THE SAME TIME.

At the end of this year, all the Bush tax cuts expire - amounting to about $250billion a year. The payroll-tax holiday, at more than $100 billion a year, ends too,as do expanded unemployment-insurance benefits.- Peter Orszag, bloomberg.com


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Trend WatchNEWS FROM THE CUTTING EDGE

Failure to File or Pay Penalties: Eight Facts source: IRS

fyi:If you havedelinquent taxpayments or unfiledtax returns for priortax years, yourefforts to regain taxcompliance beforethe IRS or state taxauthorities takeaction against you to force compliancemay lessenpenalties, interestsor potential criminalprosecution that may be imposed forwillful failure to pay or willful failureto file.

THE NUMBER OF ELECTRONIC FILINGAND PAYMENT OPTIONS INCREASESEVERY YEAR, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return,however, the law provides that the IRS can assess apenalty if you fail to file, fail to pay or both.

Here are eight important points about the two differentpenalties you may face if you file or pay late.

1. If you do not file by the deadline, you might face afailure-to-file penalty. If you do not pay by the due date,you could face a failure-to-pay penalty.

2. The failure-to-file penalty is generally more than thefailure-to-pay penalty. So if you cannot pay all the taxesyou owe, you should still file your tax return on time andpay as much as you can, then explore other paymentoptions. The IRS will work with you.

3. The penalty for filing late is usually 5 percent of theunpaid taxes for each month or part of a month that areturn is late. This penalty will not exceed 25 percent ofyour unpaid taxes.

4. If you file your return more than 60 days after thedue date or extended due date, the minimum penalty isthe smaller of $135 or 100 percent of the unpaid tax.

5. If you do not pay your taxes by the due date, you willgenerally have to pay a failure-to-pay penalty of ½ of 1percent of your unpaid taxes for each month or part ofa month after the due date that the taxes are not paid.This penalty can be as much as 25 percent of yourunpaid taxes.

6. If you request an extension of time tofile by the tax deadline and you paid atleast 90 percent of your actual taxliability by the original due date, you willnot face a failure-to-pay penalty if theremaining balance is paid by theextended due date.

7. If both the failure-to-file penalty andthe failure-to-pay penalty apply in anymonth, the 5 percent failure-to-filepenalty is reduced by the failure-to-paypenalty. However, if you file your returnmore than 60 days after the due date orextended due date, the minimum penaltyis the smaller of $135 or 100 percent ofthe unpaid tax.

8. You will not have to pay a failure-to-fileor failure-to-pay penalty if you can showthat you failed to file or pay on timebecause of reasonable cause and notbecause of willful neglect.

Learn more at: www.irs.gov


PrecisionNews// FOCUS

Almost every business encounters pollutants of some sort, yetmany business owners think, “I don’t need to worry - I don’t haveany pollutants.” This mindset can potentially have catastrophicconsequences, as endless numbers of substances areconsidered pollutants if released in large enough quantities.

Common Pollutants: Overlooked Pollutants:• Petroleum products • Batteries• Fuels • Printing ink• Chemicals • Machine cutting oils

• Oil from burning tires• Paint thinners• Finishes

Commercial and industrial sites have the potential to causesignificant environmental damage if major pollution incidents

occur. In the event of a fire, water and other firefighting productscan quickly make their way into the drainage system or straight tothe nearest body of water. That can amount to a serious pollutionproblem and the building owner is responsible for the cleanup ofthis material. Preventing incidents should be a top priority.

Planning for pollution exposure is an important risk managementstrategy. Standard insurance policies may provide some limitedcoverage; however, specialized coverages and policies can betailored to help your business survive these potential claims.

Contact your local Federated representative to help you identifythese risks and ways to help protect your business.

Learn more at: www.federatedinsurance.com

It’s Our Businessto Protect Yours®

*Federated Service Company is not licensed in the states of NH, NJ, RI, and VT. ©

We Serve Main Street, Not Wall Street

As a mutual company, our number one concern is policyholders, not stockholders. Discover the value of having a �nancially sound insurance company with your best interests in mind.

Visit www.federatedinsurance.com to �nd a representative near you.

all StreetNot WNot Wall Streetve Main Street, e SerWWe Ser

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in the states of NH, NJ, RI, and VTService Company is not licensed

© . in the states of NH, NJ, RI, and VTin the states of NH, NJ, RI, and VT.

A“Should-Be Concern” for Small Business


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People PowerINFORMATION FOR ACTION

The change is not just based on the fact that your workforce maybe made up of younger workers --- that’s just part of it. The bottomline is that workers of all ages are thinking differently about whatthey want out of their work. As a result, as their supervisor ormanager you have to recognize these changes if you want to keep (and keep motivated) your best employees. And, it’s not just about money!

Let’s look at a couple of statistics that may shock you abouttoday’s workforce:

• 30% are actually engaged in what they are doing, but . . .• 52% are not engaged, and . . .• 18% are so dis-engaged that they work against the organization’s goals • 45% plan to change jobs when the economy really starts to grow• 48% are not satisfied with their boss.

So what can managers and supervisors do to improve employeeengagement and increase productivity, improve performance andretain their best employees? Some simple, cost effective stepsinclude the following:

Listen to your employees’ opinionsToday’s employees want to actively participate and to contribute to the success of their organization. Your role as theirmanager/supervisor is to open the door to effective, two-waydiscussions. And . . . don’t be surprised if they provide solid,valuable input. You don’t have all the best answers!!

Communicate Clear ExpectationsIf your employees don’t have a full understanding of what you wantthem to do, that’s your problem, not theirs. Few employees go towork wanting to do a bad job, most want to “do good”, but in theabsence of clear expectations they will do what they assume youwant them to do and that may not produce the your desiredoutcome.

Give Praise and RecognitionNow how cost effective is this?! A simple “thankyou” or “job well done” can go a long waytoward satisfying the needs of employees whowant to be appreciated. And offering recognitionpositively reinforces the level of performance andquality of work that you want them toconsistently achieve.

Provide Learning and DevelopmentOpportunitiesToday’s workers --- workers of all ages --- want tofeel fulfilled at work. It’s not like it was back in thedays when mass production on the factory floorhad workers turning lug-nuts. Current workenvironments are more complex and workerswant to be allowed and encouraged to learnnew things and to have opportunities to growtheir skill sets.

Here’s something that is critically important tounderstand: Good workers don’t leavecompanies . . . they leave poor managers! Ifyou’re not Listening, Communicating,Recognizing and offering Opportunities, you mayjust fall into the “poor manager” bucket. That’snot good for you and certainly not in the bestinterests of your organization since it may resultin dis-engaged or only partially engagedemployees and higher turnover and less-than-optimal performance and productivity.

TED SZANIAWSKIPrincipal, HRGroup, LLC.

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

If you’re notListening,Communicating,Recognizing andofferingOpportunities,you may just fallinto the “poormanager” bucket.

IF YOU THINK THAT “SAME OLD, SAME OLD” STILL WORKS WHEN DEALING WITH YOUR EMPLOYEES,THINK AGAIN. TODAY’S WORKFORCE ISN’T THE SAME AS THE WORKFORCE YOU DEALT WITH FIFTEEN YEARS AGO ORTEN YEARS AGO OR EVEN FIVE YEARS AGO.

What Got You Here. . . May Not Get You Where You Want to Go!by TED SZANIAWSKI AND MARGARET JACOBY, SPHR

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PHOENIX METAL TRADING, INC.

Industrial Scrap Specialists

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This Is OnlyA TestConsider a test to see how you’re doing as a manager/supervisor

Ask several of your employees to respond to the following six questions (developed by GallupLeadership Institute) and listen closely to theirresponses. You may hear some answers that will giveyou a “call to action” --- an indication of some thingsthat you may wish to implement in order to improvehow you are managing your employees:

• Do I know what is expected of me at work?

• Do I have the materials and equipment I need to do my work right?

• Do I have the opportunity to do what I do best every day?

• In the last seven days, have I received recognition or praisefor good work?

• Does my supervisor, or someone at work, seem to careabout me as a person?

• Is there someone at work who encourages my development?

Bottom Line:Don’t assume that workers need your company morethan the company needs them. Good workers knowthat they can leave --- they have mobility and self-confidence --- and as the economy picks up and jobsare more readily available, they may quit.

Final Thought:

“Workers have to be treated and managed as volunteers . . .”-Peter Drucker, Management Consultant

MARGARET JACOBY, SPHRPresident, MJ Management Solutions, Inc.

Contact by email at: [email protected] more at: www.mjms.net

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Oil Barron BulletinSPECIAL ADVERTISING FEATURE

VOLUME 9:

Got Foam?by BRETT “THE COOLANT GUY” REYNOLDS, CMFS

So you have decided to go out and purchase a brand new metal removal fluid for your shop. After filling your machine, expectations are high! Good cuttingperformance, machine cleanliness and bio-stability are all promised by themetalworking fluid manufacturer. So you go to fire up the machine and decide try outthat new high pressure pump you just paid a bundle for, and presto! Foam all over theshop floor! Great, now what do I do? Well… there are a few things you can do; firstyou can add anti-foam additives to help control the foam, or you can make up yourcoolant with hard water if you are lucky or unlucky enough to have it available. Youcould even reduce the pressure on that nifty new high pressure coolant system; butthat tends to negate the whole purpose of having high pressure doesn’t it? So what iscausing the problem, why do coolants foam? Well… there are numerous reasons thatcan lead to metalworking fluids foaming, let’s talk about a few of them.

• Air entrained into the fluid can cause the coolant pumps to cavitate and create additional foam, which leads to even more foam the longer the coolant pumps continue to run.

• Higher coolant pressures (1000psi plus), pushing fluid through small tool orifices with high RPM spindles can entrain air into the fluid (High pressure/low volume).

• Inadequate sump volume and/or poor sump design can lead to foam build up.

• High cutting fluid turn over, with inadequate dwell/rest time for the fluid to release entrained air.

• High fluid temperature; the more the fluids temperature increase so does its potential to foam.

• Excessive coolant concentration; running the coolant concentration higher that the manufacturer recommends.

So as you can see there are many possibilities for foam. So the big question is… whatcan I do about it? Other than adding anti-foam additions to the sump, which can becostly measure, the best solution is to purchase a metal removal fluid which isdesigned for high pressure coolant systems. So… got foam? Give your coolantrepresentative a call and get the right fluid for the job.

Stay tuned for more useful coolant tips, from The Coolant Guy!

BRETT REYNOLDS, “The Coolant Guy” works for Blaser Swisslube Inc. If youwould like more useful information regarding metalworking fluids, or would like tofind out more information about Blaser metalworking fluid products, please contactBrett at 801.722.4095 or via email at [email protected]. The Oil BaronBulletin is not affiliated with Blaser Swisslube Inc. or its subsidiaries.Learn more at: www.blaser.com and [email protected]

PrecisionNewsTM

PPLLUUSS THE 800-lb GORILLA:Doing business with the customers whohelped you grow pp..1122

SPECIALRESETISSUE!

LEADINGTHERECOVERY

U.S. Manufacturing:

Our industry leads the way forward manufacturing products for

domestic use and export and the jobs it takes to produce them

pp..1144

PrecisionNews

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TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

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

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TTHHIISS IISSSSUUEE:: Your Secret Weapon / Process Driven Anodizing / Primary Rollercoaster / Benefits of the NTMA

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

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ASKABOUTSPECIALRATES

FORNTMAMEMBERS!

We are here to help youboost your productivity.

THE COOLANT.

Blaser Swisslube Inc.Goshen, New York 10924, Phone 845-294-3200, www.blaser.com, [email protected]

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The pushback can be significant when discussing this concept. ‘Mypeople are really busy’, ‘The only way I can win new work is with fasterspindle speed’, ‘I can reduce setups or operations with this equipment’are just a few of the objections you typically hear. How do you knowif these arguments hold water? Take these few simple steps and youmight see some enlightening results:

•Walk the floor – For the next week, walk the floor on the hour andcount how many machines are actually cutting parts. It is notuncommon for a job shop with a high mix of parts to be runningsignificant overtime, yet only 50% to 60% of the machine tools on thefloor are cutting parts at the same time. There are reasons for this andsolutions to this. Don’t waste the valuable human capital and skilledlabor on busy work. Being busy and being productive are two verydifferent things.

• Look at the schedule – It is not uncommon in shops that areexperiencing perceived capacity constraints to be late on jobs orconstantly expediting while at the same time building well ahead ofschedule. The root cause is often batch processing of certain parts toleverage setups and be more ‘efficient’. This common practice willresult in robbing current capacity to meet future demand. Shops thatpractice this habit will spend more on capital equipment and floorspace and be far less profitable over time. The need to leverage setupsis the symptom – the setup itself and scheduling approach is theproblem. The good news? The vast majority of setup time reductionefforts do not require capital investment to yield significant results.

On June 6, 1944, a date better known as D-Day, the Western Allies launched the largest amphibiousinvasion in the history of the World. This “Great Crusade” was focused on one task – eliminatingthe Nazi tyranny in Europe. Did this focus and effort pay off? Less than a year after D-Day, NaziGermany delivered their unconditional surrender to the Allies, thus liberating Europe from Nazi rule.

Manufacturing companies need to embark on their own “GreatCrusade”. You’re not storming the beaches of Normandy, however,you need to wage war on your own shops. Unlike the young servicemen and women who were so bravely committed in their quest toliberate Europe, your “Great Crusade” needs to focus on ways toliberate your untapped production capacity and the economicpotential of your business. What is the reward for winning this battle?Reduced business risk and economic prosperity the likes of whichvery few jobs shops will realize.

There are two important fronts you should focus on as you developyour battle plan:

• Understanding and managing capacity• Evaluating estimating and cost accounting systems

UND E RSTAN D I N G AN D MANAG I N G CAPAC IT YBusiness owners are quick to invest in new equipment to addressperceived capacity constraints. Increased spindle speed, automatedloading, and enhanced machining capabilities are all attractivereasons to buy new equipment. In some cases, it makes sense toreinvest. However, most manufacturers today are sitting on untappedcapacity on their floor. Before buying more capacity, take a hard lookat ways to maximize every hour available using your current peopleand equipment. This may not make the machine salesmen happy, butit will drop significant dollars to your bottom line and reduce thebusiness risk of increased overhead the next time sales get soft.

WAGING WAR TO LIBERATE CAPACITYBY BRENT TERHAAR

Feature Story//PrecisionNews

• Measure it – As simple as it sounds, very few shops activelymeasure spindle time versus available capacity. You don’t need fancy software or report writers to get at thisinformation. There are very simple visualtools that can be used at each workstation togive you the information you need.Information is power – knowing what isactually happening is the first step toimproving performance.

EVALUAT I N G E ST IMATI N G AN D C O STACCOUNTI N G SYSTEMSPricing is less than half of the profitabilityequation, yet typically the exclusive tool usedby shop owners to drive changes in profitability.If you examine two job shops that competeagainst each other with the same customers andsimilar pricing, their profitability can be worldsapart. Why? The difference usually comesdown to the level of excess capacity in eachshop. Asset utilization, combined with goodpricing decisions, is what drives profitability ina job shop – period.

Most estimating and job costing systems do notmodel this well. Be cautious in your reliance offinancial metrics generated by these systems.Many times, the information generated fromthese systems can be misleading and result inactions that are counter-productive to thehealth of your business.

The bottom line is this - pricing will vary bymarket and by type of work. Estimating usingcost information can lead to poor decisionmaking. The idea of improving profitability byincreasing pricing or focusing only on highmargin work usually results in just the opposite.It takes a good mix of complex, highlyengineered work combined with higher volumeor repetitive work to fill your capacity andachieve the right returns in contractmanufacturing.

continued on page 24

Most manufacturerstoday are sitting onuntapped capacityon their floor.

AEROSPACE IS ONE OF THE MOST TECHNICALLY DEMANDING INDUSTRIES IN THE WORLD. With increasingly difficult-to-machine materials, complexgeometries, exacting specifications and constant time restraints, the manufacture of aerospace parts has many limitations; still, production rates are set to increase.

Total component expertise is the key to success in such a competitive manufacturing landscape. These and other challenges dictate a production environment withcomplicated four- and five-axis machines driven by CAM solutions. Choosing an industry partner that has the experience and resources to support all aspects of individualcomponent development, including both the physical tool and the processing knowledge is crucial in this highly competitive industry.

Total solution support should encompass spindle interface, tool holder selection, programming methods, insert grade and geometry, and surface integrity – all of theparameters that will produce the highest-quality parts. Aligning and optimizing these factors will help you compete on a global scale.

The aerospace industry specifications, the nature of the materials and the component configurations all create some of the most challenging machining operations. Thesecomponents are made up of some of the most difficult-to-cut materials and complex shapes, requiring extensive tool reach and the right tool path.



BY SEAN HOLT, AEROSPACE APPLICATION MANAGER, SANDVIK COROMANT US

EXPERTISE AND MANUFACTURING METHODS FOR ADVANCED AEROSPACE ENGINE PRODUCTION

These high-temperature operations create demands for materials that are harder, stronger, tougher, stiffer and more resistant to corrosion or oxidation, such as nickel alloys, high-strength titanium, high-alloy steels and composites. These materials have much lower machinability than other, more common materials, and require a great deal of processingknowledge. You can optimize machining productivity with the right combination of cutting tools, cutting conditions and machine tools.

Engine components are demanding workpieces due to their complex geometries. They are often extremely large in size, with critical strength and weight restrictions. This is achievedwith thin walls, intricate geometries, and complex shapes – all presenting new challenges in machinability.

HERE WE TAKE A LOOK AT THE MACHINING CHALLENGES OF CERTAIN AERO ENGINE COMPONENTS, AND THEN SHOW HOW COMBINING THE LATESTAPPLICATION AND PROCESS KNOWLEDGE WITH THE BEST POSSIBLE TOOLING SOLUTIONS CAN BE THE KEY TO SUCCESS.


///Component: TURBINE DISCThe turbine disc is a complex turned part machined from difficultalloys such as Inconel 718, Waspalloy and Udimet 720. Thiscomponent usually features profiled pockets with difficult clearancerequirements.

///Tooling Solution: The modular SL70 tooling systemDue to tough material, accessibility and productivity, round insertsoffer the best method for both roughing and finishing. The largeradius of these round inserts means a reduction in the entering anglewithout reducing the depth of cut, therefore increasing productivity.The modular SL70 tooling system is designed with blades to fitrestricted pocket features without the need for special or modifiedtools. The range of adapters and blade alternatives for the tool gives itthe flexibility to build many different tools from a limited toolinventory. These blades include the required radial and axialclearances for blades reaching deep into angled grooves with high-pressure coolant supplied through the tool to the cutting edge. Havingbuilt-in dampening for ensuring performance at extended tool reach,these blades turn features in deep grooves often at higher feed ratescausing less vibration and increased tool life. In addition, theCoromant Capto interface provides excellent stiffness even in longoverhangs and against high cutting forces.

///Application: Trochoidal TurningTrochoidal turning is a productive method for removing material indeep slots and grooves. By breaking the part into manageable pieces,trochoidal turning uses a roll-into-cut approach to reduceengagement on the insert. When producing grooves by turning, chipevacuation is always a critical factor. Because the material is beinghighly sheared, generating narrow chips is often more demanding,and requires a balance between the most suitable insert geometry andfeed rate. It also maximizes straight line movements, which enablesmax feed rates for optimal productivity. This approach involveschanging the cutting direction at the end of every pass. Alternatingthe direction of the cut makes the insert last longer because it neverleaves the material. Trochoidal turning minimizes chip jamming,vibration tendencies and residual stress, and is well suited to remove alarge amount of material efficiently and securely.

///Component: TURBINE CASINGThe turbine casing is typically machined from challenging materialssuch as Inconel or Waspalloy. The structure of these components

poses significant problems during milling due to the large amounts of material that must be removed. These components require asignificant number of mill-turn and 5 axis operations to remove largeamounts of material, resulting in very long cycle times.

///Tooling Solution: Ceramic Grade CC6060Ceramic cutting tools have a much higher resistance to heat thancarbide tools and have low reactivity with workpiece materials.Ceramic grade CC6060 is optimized for large-diameter componentswith long cutting lengths that allow it to cope with higher feed ratesand longer continuous cuts, making it ideal for milling operations onturbine casing components. Excellent resistance to notch wear allowsfor higher depth of cut than other ceramic grades, for optimalproductivity in medium to roughing operations in first- andintermediate-stage machining. The grade is also the first choice forpocketing and profiling operations.

///Application: Ceramic turn milling between bossesOn average 75% of the total turbine casing machining is spent onremoving material using mill-turn operations between the bosses.Mill-turning involves cutting with a rotating milling tool while theworkpiece is also rotating. This operation is ideal for turned parts thatrequire high metal removal and have obstructions such as ignitionbosses. Turbine casing bosses are located around its cylindricalperimeter. Turn-milling with ceramic inserts reduces notch wear,increases feed rates and achieves higher metal-removal rates – it is the most productive way to remove material between bosses.

///Component: FAN CASINGThese large titanium components have low machinability, and featurecomplex shapes and thin walls. But unlike the nickel alloys, ceramic cannot be applied. This makes productive metal removal challenging. Keepingthe cutting temperature low is essential when machining this component.

///Tooling Solution: Vertical Turning Lathes (VTL)To achieve the unique combination of temperature control andsuperior component accuracy, machining should be done on a verticalturning lathe. VTLs by design need to have either manual quick-change or automatic tool-change. Particularly with automated toolchanging, long chips present a high risk to component damage.However, with the coolant piped through the ram directly to thespindle, there are no coolant pressure restrictions, improving cuttingconditions and process security.


///Application:High-pressure coolant (HPC)One key to success in the machining of fan casings is the use of high-pressure coolant. HPC improves chip control and reduces thetemperature in the cutting zone. Chip control is more secure, ensuringevacuation from tight pockets and grooves. This guarantees that thechips won’t wrap around tools or drag across the component. Effectivelycooling the machining zone will help minimize tool wear, prolong toollife by up to 50%, and provide a potential for 20% higher cutting speed.

While the machine’s pump can provide the pressure, getting the coolantto the right place is the responsibility of the tool. Making use of high-precision nozzles, coolant is directed to the main cutting edge. Thiseffective application can help evenly distribute and reduce heat duringmachining.

///Components: SPOOL AND FAN DISCThe engine spool and fan disc present two of the same challengingfeatures: deep internal chambers and tulip grooves.

///Tooling Solution:Dampened BladesUsing dampened blades on these components will help control thecommon challenges of vibration and chip removal. Dampened bladesare designed with a patented dampening device, for a more productiveand secure process. This allows depth of cut to be 4 times greater thanwithout dampening. These slender tools can access and effectivelyremove chips from the deep internal chambers for an extremely securemachining process.

///Application: Vibration-free turning in deep grooves Deep grooves present one of the most challenging features of thesecomponents. Deep grooving on spool applications can result in chipbuildup in the pocket and lead to insert failure. For a more secureprocess, use vibration-free turning. Oval serration blades provide thebest stability and accessibility, while 3 to 10 inch high blades allow forthe best coolant delivery to assist in chip removal.

///Component: SHAFTThe engine shaft is made from high-alloy steel or inconel; its primarymachining challenge is the length and internal features of thecomponent. The biggest development in shaft manufacturing has comefrom the evolution of the multitask machine.

///Tooling Solution: Silent Tool dampened boring barBecause of this component’s length, vibration can be a common problemduring boring applications. Vibrations may cause problems such as badsurface texture, insufficient accuracy, loss of productivity, increasedinsert and machine tool wear, and noise. Silent Tool boring bars have abuilt-in dampening mechanism, making it possible to machine withoutvibration and still maintain good productivity and close tolerances.

///Application: Boring in deep cavities and holesBoring in deep holes can lead to poor surface finish and vibration due to

instability. The only cutting force component that does not need to becounteracted with support is the axial force. However, the radial forcebends the tool out and away from the cutting zone in such a way that thetolerance and diameter of the hole is negatively affected. By applyingincreased axial load and radial load, the present frequency or a silenttool dampened bar absorbs any vibration in cut, improves chip control,and can run at increased cutting data.

///Component:BLISK/IMPELLORBlisks are becoming more common in engines’ high-pressurecompressors due to the advantages of weight, efficiency and servicing.This component has narrow pockets, slots, and deep complexgeometries, more so than other components, that often requires 5-axismachining movements.

Key factors to machining success include five-axis machinery with goodsimultaneous dynamics, optimized software and a proper tooling selection.

///Tooling Solution: Plura 50-degree relieved shankWhen roughing a slot in inconel, the Plura 50-degree relieved shank,with a bull-nose design, is optimized for axial depth of cut twice thediameter and low radial cuts, for a high-speed process.

///Application: Trochoidal MillingTrochoidal milling is a high-speed machining technique for removingmaterial in scallops and pockets. This application uses a roll-in entryand exit from the cut to control the arc of engagement, for higherproductivity and improved tool life. Trochoidal milling enables hightable feeds in combination with low cutting forces; generating lowcutting edge and workpiece temperatures. This method utilizes thetechnique of chip thinning, resulting in less heat build-up in the chipsand allowing the tool to run in at full depth. In addition, this can alsocut down the number of passes. Trochoidal milling is not always thefastest method for roughing in slots, but does result in better tool life,better predictability, and a better quality part.

In today’s global manufacturing environment, the demands of workingwith critical parts on high value machine tools can be exceptionallytricky without the right process knowledge and best-practice machiningstrategies. Having the right resources to support you on all levels willkeep you competitive globally with process improvements, increasedproductivity, quality consistency, cost reduction and process security.

SEAN HOLT is the Aerospace Application Manager at SandvikCoromant U.S.

Visit www.aero-knowledge.com for these and other aerospace component solutions

from Sandvik Coromant. Learn more about trochoidal turning, trochoidal milling, and

other CAM programming tips at www.MyYellowCoat.com/cam-tips

*Previously published in the SME Aerospace Manufacturing Yearbook, Sept. 2011.

EXPERTISE AND MANUFACTURING METHODSFOR ADVANCED AEROSPACE ENGINE PRODUCTIONcontinued from page 15

IN TODAY’S GLOBAL MANUFACTURING ENVIRONMENT, THE DEMANDS OFWORKING WITH CRITICAL PARTS ON HIGH VALUE MACHINE TOOLS CAN BEEXCEPTIONALLY TRICKY WITHOUT THE RIGHT PROCESS KNOWLEDGE ANDBEST-PRACTICE MACHINING STRATEGIES.


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





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


STARCHAPTERAWARD2010

NTMAP R E C I S I O N

Proven Experience. Certified Quality. Dependable Service.

Specialty Metals Leadership. Supply Chain Innovation.

1140 E. Washington St., Suite 205, Phoenix, AZ 85034

602-864-0014 • 800-203-8000twmetals.com



A fatalgram from the Mine Safetyand Health Administration remindedthe mining industry on March 30, 2012about proper lock out/tag out procedure. A 37 year old electrician was fatallyelectrocuted while making the final electricalconnections for a replacement cable reel.The disconnect device was not properly

locked out and it is suspected that the995 volt leads were live when hetouched them.

Lock out/tag out (aka LOTO) is theprocedure and practice of

preventing equipment from becomingenergized accidentally—particularly during

repairs or maintenance. A simple LOTO planwill go a long way toward protecting yourselfand your employees from accidental injury.

Proper Lockout/Tagout proceduresinclude the following:

Check all power sources. Have a workplan citing all power sources of equipment.Shut down the equipment. Make sure allswitches are in the OFF position.

Disconnect the power. Shut off at thecircuit breaker or the line valve—never justthe on/off switch.

Use your own lock. Tag the lock theemployee’s name and the date. Don’t lend

your lock or your key to anyone. Lock outthe equipment yourself; don’t rely onsomeone else to do it.

Start the equipment to release storedenergy and make sure all power is off. Inform co-workers in the area that theequipment is down for repairs.

Do not remove a lock or tag unless youare the person who originally attached it.

When equipment is ready to go back intoservice:

Make sure all tools have been removedfrom the area.

Locks and tags are removed.

Employees are clear before theequipment is re-started.

If you would like to put together a Lockout/Tagout plan and have some questions,please contact the ATMA safety committee.Or come to a meeting. We can help.

Learn more at: www.osha.govand www.arizonatooling.org

LockOut/TagOut

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

Shop FloorNEWS FROM THE FRONT LINES

from THE ATMA SAFETY COMMITTEE

Small steps can make a big impact in your safety program

fyi:Workers injured on

the job from exposure tohazardous energy lose anaverage of 24 workdays for recuperation.

- OSHA

A typical LOTO kit

32 /

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.


32 /

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.




ATMAP R E C I S I O N

2012 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

BOARD MEMBERS

Bob MarusiakMicro-Tronics, Inc.

John RaycraftArizona Precision Industrial

Jeremy LutringerUnique Machine & Tool

Gary WatkinsMarZee

Joseph KoenigExactitude, LLC

Bruce TreicherZircon Precision

Greg Chambers Noranco Jet Processing

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 Fax: 480.970.8501

[email protected]

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

arizonatooling.org

PrecisionNewsTM

PrecisionNews Presents

WEBSITES THATWORKFOR YOUArizona Chapter Websitearizonatooling.org

Arizona Commerce Authority -Job Training Grant Applicationazcommerce.com/workforce

Arizona Department of Educationazed.gov

Arizona Manufacturers Councilazchamber.com/amc

Arizona Manufacturing Apprentice ProgramAzMap.org or [email protected]

Arizona State UniversityMechanical & Manufacturing Engineering Technologypoly.asu.edu/technology/mmet/

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

EVIT (East Valley Institute of Technology)evit.com

GateWay Community Collegegatewaycc.edu

Greater Phoenix Chamber of Commercephoenixchamber.com

Maricopa Community Collegesmaricopa.edu

Maricopa Workforce Connectionmaricopaworkforceconnection.com

Mesa Community Collegemc.maricopa.edu

National Institute for Metalworking Standardsnims-skills.org

NTMA - National Tooling & Machining Associationntma.org

NTMA - San Diego Chapterntmasandiegochapter.org

NTMA - San Francisco Chaptersfbantma.org

NTMA - North Texas Chapterntmanorthtexas.org

National Robotics Leaguegonrl.org

One Voice Advocacymetalworkingadvocate.org

U.S. Department of Labordol.gov


Hein Tran 3D Machine & Tools 480-329-8254

Dave Wright Accuwright 480-892-4595

Sal Kielbus Aerospace Contacts, LLC 480-967-1025

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

John Raycraft Arizona Precision Industrial, LLC 480-785-7474

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

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

Misty Curry C & W Manufacturing 602-437-2929

Keith Adams C.G. Tech, Inc. 623-492-9400

Greg Gaudet CAD Tools Company, LLC 480-753-4290

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

Steve Schwartzkopf Chips, Inc. 602-233-1335

Kim Rice Cling’s Manufacturing 480.968.1778

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

Allen Kiesel Creative Precision West 623-587-9400

Daniel Krings Deck Machine & Tool, Inc. 602-253-1080

David Lair Dynamic Machine & Fabricating 602-437-0339

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

Grant Evans Evans Precision Machining, Inc. 623-581-6200

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

Mark Weathers Excaliber Precision Machining 623-878-6800

Jeff Hull Foresight Technologies 480-967-0080

Alex Curtis Hamilton Industries 480-967-9339

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

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

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

Joseph Sirochman JPS Manufacturing 480-367-9540

Jeff Barth JWB Manufacturing 480-967-4600

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

Ernest Apodaca Layke, Inc. 602-272-2654

John Lewis Lewis Aerospace 623-581-0764

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

Robert Marusiak Micro-Tronics, Inc. 602-437-8995

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

Phillip LoCascio National Aviation 480-966-1097

John Anglin Nelson Engineering 602-273-7114

Dante Fierros Nichols Precision 480-804-0593

Greg Chambers Noranco Jet Processing 623-869-6749

REGULAR MEMBERS

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

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

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

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

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

Paul Shelton Shelton Industries 520-408-8026

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

Ruben Cadena State Industrial Products, Inc. 602-275-0990

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

Scott Higginbotham Sun Grinding LLC 602-238-9595

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

Karl Szanto Tech Mold 480-968-8691

Todd Aaronson TMA Precsion Tube 623-221-4922

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

Walt Ahland TriPlex, LLC 480-930-3493

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

Denise & Bob Wright Wright Prototype 623-825-8671

Bruce Treichler Zircon Precision Products 480-967-8688

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

ATMAEVENTS INMAY/JUNE2012

Safety Team Meeting > 5/15 @ 11:30am (MicroTronics)

Membership/Mktng & Program Mtng > 5/17@ 4:00pmFiesta Inn/Raintree Room 4:00pm - 5:30pm

Board of Directors Mtng > 5/22 @ 4:00pm (MicroTronics)

Dinner Meeting > 5/30Keynote Scott Walker, President Mitsui Seiki

Precision News Articles/Ads Due > 6/11

Membership/Mktng & Program Mtng > 6/14@ 4:00pmFiesta Inn/Raintree Room 4:00pm - 5:30pm

Board of Directors Mtng > 6/19 @ 4:00pm (MicroTronics)

Dinner Meeting > 6/27; Guests: Mayors Greg Stanton & Scott Smith; Jeremy Bout from “The Edge Factor” TV Show

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


ASSOCIATE MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

Linda Daly A 2 Z Metalworker 602.412.7696

Richard Short Adams Machinery 480.968.3711

Greg Whelan Arizona CNC Equipment 480.615.6353

John Anderson ATS Industrial 602.276.7707

Isaac Bunney Bank of America 602.523.2044

Howie Basuk Barry Metals 602.484.7186

Marc Bissell CadCam/Geometric 480.222.2242

Steve Blok ChemResearch Co., Inc. 602.253.4175

Kerry Vance Consolidated Resources 623.931.5009

Cindy Stewart Creative Promotions 480.839.9511

Lou Gallo D D i - 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

Michael Biesk Marshall Tool 602.269.6295

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

Ron Swartzbaugh S&S Machinery 602.714.0116

Jane Rousculp Samuel Aerospace Metals 602.721.0176

Frank Encinas Semiray 602.275.1917

Russ Kurzawski Star Metal Fluids LLC 602.256.2092

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

Joseph Velez Law Office of Velez 480.710.5079

Daniel Franks Wells Fargo Bank 602.522.7805

Greg Kolton Bank of Arizona 480.459.2826

Jeff Anderson National Bank of Arizona 623.872.2546

Jackie Bergman HUB International 602.749.4190

Bennet Cromer Federated Insurance 501.952.9391

Jon Gale CliftonLarsonAllen, LLP 480.615.2300

Ward Hickey Heritage Bank 602.852.3462

David Pettycrew Republic Indemnity 602.242.4602

Steve Piotter MSC Industrial Tool 480.755.0415

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


































MANYTHANKSTO OUR 2012 ATMA VALUED SPONSORS:

ARIZONA SPONSOR MEMBERS

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

Welcome!NEW REGULAR AND ASSOCIATE MEMBERS

Providing precision machining and fabricating of diverse parts and assemblies

Serving the Aerospace/Aircraft, Military, Oil Tool and Commercial Industries

Our Quality System is AS9100 B Compliant

Dynamic Machine and Fabrication Corp. andDynamic Centerless Grinding

3845 E. Winslow Ave., Phoenix, AZ 85040

(602) 437-0339(602) 437-8947 fax

www.dynamic-machine.com

Equipment Capacities range up to HS-4R HAAS 4-Axis Horizontal Milling Center @ 150” x 66” x 48” and Ikegai VTL CNC Lathe @ Ø 55” Diameter

Centerless Grinding Capacities ranges from Ø1/8” up to Ø1-1/2” in Lengths up to 14’ long and Ø1-1/2” to Ø 3” RD With Weight Maximum of 50#
















Aerospace Contacts, LLC Sal Kielbus560 W. Southern Ave.Tempe, AZ 85282ph: [email protected]

Eclipse Carbide, Inc. Diana Buchanon-Lovett526 E. Juanita Ave. Suite #8Mesa, AZ 85204ph: [email protected]

Noranco Jet ProcessingGreg Chambers2660 W. Quail Ave.Phoenix, AZ 85027ph: 623.869.6749 [email protected]

C & W ManufacturingMisty Curry4334 E. Winslow Ave.Phoenix, AZ 85040ph: [email protected]

TMA Precision TubeTodd Aaronson8951 W. Tuckey LaneGlendale, AZ 85305ph: [email protected]

CadCam/GeometricMarc Bissell15974 N. 77th St. #103Scottsdale, AZ 85260ph: 480.222.2242Marc.bissell@geometricglobal.comwww.geometricglobal.com(Associate Member)

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I N S UMMARYCompanies need to get creative in finding ways to liberate capacityin their shops. Taking full advantage of using excess capacity beforeextending dollars to invest in new equipment should be a toppriority in your business. Thinking beyond your normal course of business may open your eyes to new opportunities. Companiesthat do this see dramatic improvements in profitability. Takingadvantage of the fixed infrastructure in your shop will lead to amore profitable business.

While it’s nowhere near the event that D-Day was, liberatingcapacity in your shop is no small battle. Although it took less than12 months to liberate Europe during World War II, the planning,effort, and execution of this campaign was daunting. Don’tunderestimate the effort and change necessary to tackle yourcapacity opportunities. Focus on doing more with what you have.Get creative on figuring out ways to free up capacity. Exhaust yourcurrent capabilities before investing in new equipment.

While your results may not be as significant as freeing a continentfrom tyrannical rule, your efforts will help you win the battle ofimproving profitability and reducing risk in your business.

BRENT TERHAAR is a Partner in the Manufacturing andDistribution group of CliftonLarsonAllen. Brent can be reachedat 888.529.2648 or [email protected].

Learn more at: www.cliftonlarsonallen.com

WAGING WAR TO LIBERATE CAPACITYcontinued from page 13


Estimating using costinformation can lead to poor decision making.



ATMA_0202_FINAL_Layout 1 6/18/11 7:05 AM


2012 BOARD OF DIRECTORS

PresidentTONY MARTINDALEMartindale Manufacturing

Vice President and TreasurerHEATHER RUSSELL

K-Tech Machine

SecretarySEAN TILLETAlphatec Spine

MembershipMIKE BROWN

Computer Integrated Machining

Past PresidentMELINDA COLDWELLCornerstone Machining, Inc.

BOARD MEMBERS

Education Board MemberJohn Riego de Dios

Construction Tech Academy

Member at LargeCliff Manzke

Manzke Machine, Inc.

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.”

NTMA - San Diego Chapter348 Saratoga GlenEscondido, CA 92025Phone: 760.419.1393

ntmasandiegochapter.org

PrecisionNews//NTMA-SAN DIEGO CHAPTER

MEMBERLISTINGS

Todd C. Lawson Academy Machine Products 760.439.0109

Jodi Deane Advanced Maching and Tooling 858.486.9050

Steve Doda* Aerotek Commercial Staffing 619.278.3014

David Stella* Aerotek Commercial Staffing 619.278.3014

Abhay Vijayan Alphatec Spine 760.494.6774

Peter Neville B&H Tool Company Inc. 800.272.8878

Lyle Anderson C&H Machine and EDM Services 760.746.6459

Margarita Brear Compucraft Industries, Inc. 619.448.0787

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

Melinda Coldwell Cornerstone Machining, Inc. 760.727.5228

Erich Wilms Diversified Tool & Die 760.598.9100

Alex Fima Directed Mfg. 512.355.1360

Donovan Weber Forecast 3D 760.929.9380

Andrew Allen Henry Machine, Inc. 760.744.8482

Dora E. Tuza I-Source Technical Services, Inc. 949.453.1500

Jim Piel J I Machine Company, Inc. 858.695.1787

Joel Schuman JS Manufacturing 760.940.1322

Heather Russell K-Tech Machine, Inc. 760.471.9262

Cliff Manzke Manzke Machine, Inc. 760.504.6875

Russell Wells Sr. MarLee Manufacturing, Inc. 909.390.3222

Tony Martindale Martindale Manufacturing Co. 760.744.3078

Mark Rottele Roettele Industries 909.606.8252

Scott Cormony Waterjet West, Inc. 760.471.2600

Hernan Luis y Prado Workshops for Warriors 619.550.1620

Steve Grangetto 5th Axis 858.505.0432

*National Associate Members

REGULAR MEMBERS

FOUNDING PARTNERSGlenn Van Noy Champion Risk and 760.419.1393

Insurance Services

Dave Stanton Digital Dimensions, Inc. 858.279.2557

Jeff Schwen East County Internet Marketing 619.315.5604

Gail Houser National Tooling & 602.758.6912Machining Assoc.

Mark Selway Selway Machine Tool Company 888.735.9290

NTMA San Diego ChapterUPCOMING EVENTSSpeaker: Greg Koehler - Human Resource LawMay 24, 2012The Joe Martin Foundation Museum and Machine Shop FacilityJune 21, 2012

SAN DIEGOCHAPTER


A2Z METALWORKER • 47 •

1-888-726-6385 [email protected] www.samuel.com

WATER-JET CUTTINGProviding...Tighter Tolerances / Minimal Machining

Table Capacity of 120” Wide x 360” LongUp to 6” Thick Cutting Capacity

HIGH DEFINITION PLASMA BURNINGUp to 5/8” thk Stainless & 1 1/4” thk CarbonTable Capacity of 120” Wide x 390” Long

CONVENTIONAL PLASMA BURNINGUp to 6” Thickness Table Capacity of 132” Wide x 564” Long

Available Products...STAINLESS: 304H, 304L, 316L, 317L, 321, 347, 904L, 2205, 2507, 254-SMO, LDX 2101CARBON: A35, W44, 514, 516-70, 572-50, 588, API-2H-G50ALUMINUM: 5086, 5454, 6061, 7075, 7050, 2024

THK: 3/16” to 6” WIDTH: 48” to 120”

LENGTHS: 96” to 528”

Range of Sizes...

Value Added Services...LASER CUTTING, POLISHING, GRINDING, HEAT TREATING,SAW CUTTING, FORMING, ROLLING, SHEARING, BEVELING

PrecisionNews// NTMA INITIATIVES

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

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

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

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

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

• Our business insurance program keeps more money in yourpocket by offering a necessary product in a low-overhead, not-for-profit manner.

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.

NTMAUPCOMINGEVENTS NTMA-PMA Legislative Conference > May 8-9, 2012Location: Washington, DCVisit: www.ntma.org and www.metalworkingadvocate.org

NTMA Purchasing Fair > June 13-14, 2012Location: Suburban Collection Showplace, Novi, MIVisit: www.ntma.org and www.PurchasingFair.com

NTMA - Manufacturing America’s Future



PresidentTODD ELLARD

Manda Machine Company

Vice PresidentJEFF SPENCERClay Precision

TreasurerBARRON SMITHR.W. Smith Company

Chapter ExecutiveLISA ELLARD

TrusteeWAYNE APPLEGATE

Applegate EDM

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

“The Power of Connections”NTMA - North Texas Chapter

[email protected]: 214.536.4970 P.O. Box 541236

Dallas, TX 75354-1236

ntmanorthtexas.org

NORTH TEXASCHAPTER

Policy MattersTAXATION

“Taxmageddon”continued from page 05

A recent survey that includedmembers of the National Toolingand Machining Association showedthat 78% of Association members used Bonus Depreciationfor equipment purchases, 53% claimed the R&D Tax Credit,and 40% used the Section 199 Domestic ProductionActivities Deduction. Each of these means somethingdifferent to each manufacturer but they mean billions in lostannual revenue to the federal government. Which one of yourchildren would you give up? At which point does yourcompany say, yes, for XX rate I will give up YY credit? R&D,LIFO, the Section 199 that reduces your federal effective taxrate by 3.17%?

These are the questions manufacturers must ask themselves,but more importantly, these are the issues politicians need tounderstand better if they’re going to “fix Washington.”

The clock is ticking. We have now spent over 30 days as thedeveloped world’s highest taxed corporate economy. Wecannot afford to spend the next 30 years at a disadvantagebecause politicians are using taxes for their own electioncampaigns. “Taxmageddon” is coming to every theatre nearyou, opening January 1st, unless Washington acts now.

OMAR NASHASHIBI is a founding partner at The FranklinPartnership, LLP, a bi-partisan government relations firmretained by the National Tooling and Machining Association in Washington, D.C.

Learn more at: www.franklinpartnership.com

fyi:

By CBO’s estimates, federal revenues in 2011 will be $123billion (or 6 percent) more thanthe total revenues recorded two

years ago, in 2009.- Congressional Budget

Office


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

Chris Simms Champion Cutting Tool 516.536.8200

Frank Vance Frank J Vance 972.255.3925

Norm Williamson H & O Die Supply, Inc. 214.630.6660

Mike Johns Haas Factory Outlet 972.231.2802

Stephen Draper Hartwig, Inc. -- Texas 972.790.8200

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

Pat McCurley Midlothian Insurance Agency 972.723.5171

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

NTMA-NORTH TEXASMEETINGS & EVENTSThanks to Our 2012 General Meeting Hosts:January 2012 – Manda Machine CompanyFebruary 2012 – Ellison Technologies

Upcoming Events:May 17, 2012 – General MeetingJune, 2012 – Summer Fun Event

BILLOR MACHINETOOL 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

Wayne Applegate Applegate EDM, Inc. 972.488.8997

Tony Woodall AST Waterjet 972.554.0383

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

Gary Embrey CNC Precision Manufacturing, Inc. 972.241.3931

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

Dena Kupiec Elijah Tooling, Inc, 940.591.1340

David Ellis Ellis Tool & Machine, Inc. 903.546.6540

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

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 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

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



PresidentDAVE BUTTNERThermoFusion

Vice PresidentGABOR PAULOVITS, JR.

G & S Tool

Secretary/TreasurerMICHELLE MYHRER.M. Machining, Inc.

Education DirectorDON CASTILLOFM Industries

OUR MISSION“Our mission is the advancement of

machining and manufacturing businesses in the Bay Area, through collective effort

and membership alliances.”

NTMA - San Francisco Bay Area950 Terminal Way

San Carlos , CA 94070Phone: 510.782.7755

sfbantma.org

UPCOMING EVENTSNTMA - San Francisco Bay Area

NTMA Signature Event: Lean ManufacturingMay 17, 2012 @ 4:30PMSelway Union City, CA

Speaker: Dan SuniaCalifornia Tooling and Machining Apprenticeship Assoc.

June 26, 2012 @ 4:30PMChabot College Hayward, CA

A’s Tailgate and Baseball GameJuly, 2012 Date TBD

PrecisionNews//NTMA-SAN FRANCISCO CHAPTER

MEMBERLISTINGS

Jimmy Kim 3D Access Industries 510.668.1248

Boris Kesil ADEM, LLC 408.727.8955

Ron Wegstein Advanced Grinding, Inc. 510.536.3465

Tim Green All Weld Machine & Fabrication Co. 408.946.5890

Fred Matter Alloy Metal Products 925.371.1234

Robert P. Dathe Benda Tool & Model Works, Inc. 510.741.3170

Tony Castruccio Custom Gear & Machine 925.455.9985

Angelo Grestoni D & H Manufacturing Company 510.770.5100

Dan McEachern Dan McEachern Company 510.532.8228

Frank Dommen Die & Tool Products Inc. 415.822.2888

Felix Q. Oramas, Jr. E R C Concepts Company, Inc. 408.734.5345

Don Castillo FM Industries, Inc. 510.668.1900

Gabor Paulovits, Jr. G & S Tool Incorporated 510.633.9632

Alan Kalman Kalman Manufacturing 408.776.7664

DeAnna Godfrey McNeal Enterprises, Inc. 408.922.7290

Karen Myhre R.M. Machining, Inc. 650.591.4178

Mark Serpa Silicon Valley Manufacturing 510.791.9450

David J. Buttner Thermo-Fusion, Inc. 510.782.7755

Bruce Tschida Tschida Engineering, Inc. 707.224.4482

Dane Madsen West Valley Precision, Inc. 408.519.5959

Alan Taikeff Zap O Marks, Inc. 408.264.8610

Ken Fusselman Perry Tool & Research Inc. 510.782.9226

REGULAR MEMBERS

SAN FRANCISCOCHAPTER

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March employment gains were less than expected, less thanexciting, less than worth writing home about and will again pose thequestion of whether U.S. job creation is about to slow as summermonths approach. Such a pattern occurred during the past two years.

The American economy added 120,000 net new jobs during March,sharply below the consensus view of 205,000 net new jobs. Thegain was the smallest in five months and was less than half theaverage gain of the three prior months. In addition, previouslyreported job gains during January and February were revisedhigher by only 4,000 jobs, breaking a pattern of sizable upwardrevisions to prior data that had largely been in place for some time.

Better news saw the nation’s unemployment rate decline from8.3% in February to 8.2% in March…but NOT for the right reason.The rate declined only because an estimated 164,000 people,presumably discouraged at the prospect of finding a job, droppedout of the labor force in March.

The household survey, from which the unemployment rate is derived,also reported a decline of 31,000 employed people in March. Onelumps various numbers together to arrive at the 8.2% rate.

Much weaker-than-expected employment data in March validatedrecent views of Federal Reserve Chairman Ben Bernanke that theprior pace of more solid job gains could not be sustained unlessand until U.S. economic growth picked up. In a presentation onMarch 26 (to a room full of economists no less!), Bernanke statedthat recent employment gains had been a “welcome development.”

“Still,” he continued, “conditions remain far from normal, as shown,for example, by the high level of long-term unemployment and thefact that jobs and hours worked remain well below pre-crisis peaks.We cannot yet be sure that the recent pace of improvement in thelabor market will be sustained.”

JOB DETAILThe 120,000 net rise in employment, for a change, did not includea major hit to estimated state and local government employment.The private sector added 121,000 net new jobs in March, led bythe addition of 31,000 new jobs in goods production.

Manufacturing continued its promising stretch of new job creation.The addition of an estimated 37,000 net new jobs in March seestotal manufacturing employment up by 470,000 jobs since January2010, according to the U.S. Department of Labor’s Bureau of

Labor Statistics (BLS). The construction sector (down 7,000 jobs)and logging & mining (up 1,000 jobs) were less newsworthy.

The nation’s private service providing sector added 90,000 jobs inMarch, led by the addition of 39,000 net new jobs in leisure &hospitality; 37,000 net new jobs in education & health services;and 31,000 jobs in professional & business services. Accordingto BLS, employment in professional & business services hasclimbed by 1.4 million jobs since reaching a low point inSeptember 2009. In contrast, the retail trade sector lost anestimated 34,000 jobs in March, the largest monthly decline sinceOctober 2009.

8.2%…or 11.3%?The substantial decline in the nation’s labor participation ratecontinues to “understate” the painful level of unemployment, whencompared to just four years ago. An estimated 66.0% of potentialworkers were either employed or seeking employment in 2008.

That share in March 2012 was down to 63.8%. Simply applying a66.0% rate to the March data would suggest an unemploymentrate of not 8.2% (as reported)…but a much different 11.3% rate!!

We have noted before that if we could somehow get three millionmore people to leave the estimated labor force, national politicianscould brag of a 6.4% unemployment rate…but does that meananything? I leave this to your interpretation…

CHALLENGES AHEADThe desire for strong job gains over the balance of the year will bemet with significant challenges. Five consecutive sessions of theDow Jones Industrial Average losing ground validates this view.

The European fiscal situation promises to get worse before it getsbetter, with the focus now shifting to Spain. In addition, greaterscrutiny is now entering new locales such as the Netherlands. French financial challenges are again raising more eyebrows.

U.S. economic growth has now been positive for 11 straightquarters. That being said, the current economic recovery is theweakest since the 1940s. Growth forecasts for this year stillcenter near 2.4% after inflation…simply pathetic giving theunprecedented and massive amount of fiscal and monetarystimulus at play in the economy.

JEFF THREDGOLD, CSP and Economic Futurist, is author ofthe Tea Leaf, a free weekly economic and financial newsletter,now in its 37th year. He can be reached at 888-THREDGOLD.Learn more at: www.thredgold.com/tea-leaf

TheTea LeafINSIGHT AND UNDERSTANDING

//OPINION//

8.2%…or 11.3%?by JEFF THREDGOLD, CSP

Growth forecasts for thisyear still center near2.4% after inflation.

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