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PRECISION PITTSBURGHPRECISION PITTSBURGHPRECISION PITTSBURGH
WINTER 2012 VOLUME 1, ISSUE 1
MANUFACTURING AMERICA’S FUTURE
This article appeared in the December 2, 2011 issue of the Pittsburgh Business Times. Copyright 2011, Pittsburgh Business Times. All rights reserved. Reprinted with permission. If you believe manufacturing is no longer a vibrant
American industry because China will eventually take
away our manufacturing jobs, you need to spend some
time with our Manufacturer of the Year finalists.
According to the finalists and winners profiled in the
2011 Manufacturer of the Year Awards, those percep-
tions about manufacturing are just plain wrong.
According to representatives of manufacturing compa-
nies in our awards program, and to statistics and trends
(Continued on page 4)
CHINA LOSING ITS COMPETITIVE EDGE
By Alan Robertson, Publisher, Pittsburgh Business Times
Combat robotics sounds cool, right? Well 43 area schools
are finding out just how hard having that much fun really
is. And the best part is that even after finding out how dif-
ficult building a robot can be, they want to do it more!
Perhaps most importantly, students see that building
things is challenging, it's fun, and it’s a potential career.
To find out what all the excitement is about attend one of
(Continued on page 3)
GEARING UP… BOTS IQ BEGINS!
Is decreasing the tax burden on business and manufacturing the way
to pull America out of recession? Obviously reducing business tax
rates will encourage more investment in the US. And tax breaks to
spur investment in R&D and advanced technology will lead to in-
creased innovation, productivity, and competitiveness. Therefore
many believe that reducing government spending in order to reduce
business taxes will revitalize the domestic economy.
It is not that simple.
Easing the tax burden on small and medium domestic producers will
have a very real and lasting impact that may initially appear to jump-
start the economy. But unless it is part of a larger national economic
strategy to reverse the US trade deficit, the long-term impact will be
too limited to turn things around.
(Continued on page 10)
BUSINESS TAX CUTS CANNOT GO FAR ENOUGH By Dave Frengel, Governmental Affairs Chair
DATES TO
REMEMBER:
BotsIQ Luncheon
April 13, 2012
Details to be
Announced
Pirates & Politics
PNC Park
April 24, 2012
4:00 PM - 7:00 PM
Apprentice Graduation
Stratigo’s
North Huntingdon, PA
June 13, 2012
6 - 10 PM
NTMF Annual
Golf Tournament
Greensburg Country Club
Greensburg, PA
August 13, 2012
Details TBA
INSIDE THIS
ISSUE:
Pirates & Politics
pg.2
Training Opportunities
pg. 5
Apprenticeship Update
pg.9
National Conference
pg.12
PIRATES
&
POLITICS
APRIL 24, 2012
4:00 PM - 7:00 PM
I hope 2012 has gotten
off to a positive start for
one and all. As we’ve
all seen manufacturing
has been front and
center in the news and
was even mentioned 16
times by President
Obama in his recent
State of the Union. I
guess everyone is finally
realizing what we’ve
known for quite some
time now:
manufacturing is alive
and well and continues
to be the backbone of
our country’s economy.
After all, unlike some
industries, we actually
make things!
I encourage you to read
the emails that are
coming in from NTMA
National regarding
manufacturing news
and how our industry is
influencing our nation’s
economic policies. As
we learned at our
Membership
Appreciation night at
PNC Park we have an
active national
association that is doing
its best to provide us
with the tools and
knowledge we need to
be successful.
With that in mind I
wanted to make our
membership aware that
PNC Bank and the
NTMA are exploring
“partnering” in an
attempt to create a win-
win situation between
our industries. In other
words how can PNC
help individual shops
with equipment needs,
financial needs, lines of
credit, and the like?
PNC is currently
putting together a
customized presentation for
our association that they
plan to present in late
March. We’ll be sending
out notices as soon as the
meeting is scheduled.
With 2012 being a huge
election year, we also have
our political consultants,
Franklin Partnership,
coming in for a Pirates &
Politics presentation. The
meeting will be at PNC Park
in conjunction with a Pirates
game April 24, 2012. SMC
Business Councils and CPA
are co-sponsoring the event.
If you’ve never heard our
consultants speak, I strongly
encourage you to do so. It
truly is fascinating to see
how politics work in our
nation’s capital and how
much influence we really do
have. Following the
presentation, we’ll cheer the
Pirates on against the
Colorado Rockies.
Another point of interest: I
will be attending the national
meeting, which takes place
from March 6 – 11 at the
Hyatt Grand Cypress in
Orlando. There is an
impressive list of speakers
led by Joe Gibbs, former
three-time Super Bowl head
coach of the Washington
Redskins, who now heads
the Gibbs Racing Team, one
of the preeminent teams in
all of NASCAR. I’ll look
forward to giving you an
update in the spring
newsletter.
A MESSAGE FROM OUR CHAPTER PRESIDENT, Kevin Hartford
Page 2 PRECISION PITTSBURGH
Come join the Pittsburgh
Chapter of the NTMA for
our second annual Pirates
and Politics!
We’ll enjoy a tailgate-style
dinner, and hear from Omar
Nashashibi, a Founding
Partner with The Franklin
Partnership, LLP, the Wash-
ington, D.C.-based bi-
partisan government rela-
tions firm representing
NTMA on Capitol Hill and
at the White House.
Mr. Nashashibi will provide
an insider’s look at the latest
from Washington and dis-
cuss the November elections
including the latest impor-
tant local congressional
races.
He will also address impor-
tant policy priorities making
their way through the legisla-
tive and regulatory processes
that impact all NTMA mem-
bers.
Following the presentation,
we’ll cheer the Pirates as
they take on the Colorado
Rockies.
Don’t miss this terrific event!
TO REGISTER:
e-mail Ed Sikora at:
BOTS (Continued)
Page 3
our competitions which
will be held on March
23 and 24 at California
University of PA and on
April 13 and 14 at
Westmoreland County
Community College.
Please visit our website
at BotsIQpa.org or con-
tact Mike Valoski at
to find out more about
Bots IQ or to volunteer
your time.
THE SPARK IS NOW
FULL COMBUS-
TION! Faced with an
aging manufacturing
workforce, The Pitts-
burgh Chapter of the
National Tooling and
Machining Association
spear-headed efforts to
bring a national student
robotics program to the
Pittsburgh region. Local
manufacturers and edu-
cators joined forces in
(Continued from page 1) 2005, and with just six
schools, launched Bot-
sIQ. Now, in its seventh
year, the program has
exploded to include
more than 40 schools
and its own fan base.
Working with a Robot-
ics Curriculum based
on the National Cur-
riculum Standards and
Massachusetts Institute
of Technology's (MIT)
mechanical engineering
methodology, south-
western Pennsylvania
students are taught to
design, build and battle
robots in a gladiator-
style competition. The
competition draws on
students' knowledge of
math, science, engineer-
ing and even public
speaking.
To find out what all the
excitement is about at-
tend one of our compe-
titions which will be
held on March 23 and
24 at California Univer-
sity of PA and on April
13 and 14 at Westmore-
land County Commu-
nity College. Please
visit our website at Bot-
sIQpa.org or contact
Mike Valoski at
to find out more about
Bots IQ or to volunteer
your time.
observed by a number of groups,
China is starting to lose its competi-
tive edge, especially for small to mid-
size manufacturing projects.
There are a lot of factors at play here
that encompass issues in both the
U.S. and China. For the Chinese, it’s
rapidly rising wages, long delivery
times, and quality and communica-
tions problems. One example is that
wages there increased more than 19
percent annually between 2005 and
2010. U.S. manufacturing workers
experienced 4 percent salary increases
annually during the same period.
In the U.S., manufacturing produc-
tivity has skyrocketed in recent years.
Between 1987 and 2008, U.S. manu-
facturing productivity grew 65 per-
cent more quickly than the overall
American business sector.
But statistics and trends don’t tell the
whole story.
Nearly all of the manufacturers inter-
(Continued from page 1) viewed for the 2011 Manufacturer of the
Year Awards talked about this growing
American advantage. Ty Eggemeyer,
chairman and CEO of AccuSpec, an
Erie-based full-service provider of elec-
tronic manufacturing services from
printed circuit boards and cable assem-
blies to complete integrated electronic
“box build” assemblies, talked about
“the China experience” in describing
how his company is now competing
globally.
Since taking over what had been a small,
family owned business, Ty has dramati-
cally ramped up production. He’s even
started competing with products that
were once handmade, and has found
that utilizing technology and an entre-
preneurial approach has meant he can
compete with almost any product he
needs, no matter where it’s made.
Then there’s David Richardson, presi-
dent of Richardson Cooling Packages in
New Castle. The company designs, pro-
duces, sells and supports cooling system
parts and assemblies for use in off-
highway applications. His com-
pany was fabricating sheet metal in
Turkey. He purchased the ma-
chines he needed and brought all
the work back to the U.S. His ma-
chines run 24/7, and now he does-
n’t have to deal with 2 a.m. phone
calls or delayed deliveries.
This advantage extends to even
smaller firms like Alle-Kiski, which
does fabricating and welding, heat
treating, assembly and quality as-
surance, and tool and die out of
Leechburg. Principals Kevin Hart-
ford and Ed Newell said the pen-
dulum is starting to swing back in
favor of American manufacturers.
This isn’t to suggest China’s
manufacturing monster is dying
and steel mills will once again line
our rivers. The American competi-
tive advantage is based on techni-
cal skills, on productivity and on
quality. Any company using a huge
labor pool for mass production will
(Continued on page 5)
CHINA (CONTINUED)
Page 4 PRECISION PITTSBURGH
have a difficult time build-
ing things here.
More importantly, the
strength of the manufac-
turing sector in western
Pennsylvania — and for
the nation as a whole —
rises from the resiliency,
the entrepreneurship,
even the stubbornness, of
the men and women who
have chosen to make
things in America.
When everyone else was
saying manufacturing was
dead, they set out to prove
them wrong. Judging by
the finalists and winners
of the 2011 Manufacturer
of the Year Awards,
they’re doing just that.
(Continued from page 4)
CHINA (CONTINUED)
Page 5
COMPETE
The COMPETE grant is an incumbent
worker training incentive program. It
encourages local manufacturing compa-
nies to train and improve the skills of
their employees, so the company can
better COMPETE in this very competi-
tive market.
New Century Careers liaisons with train-
ing providers in the region who provide
classes geared toward manufacturing
(such as CNC Programming, Master-
Cam, Solidworks, Auto CAD, Geomet-
ric Dimensioning &Tolerancing, etc.)
New Century Careers periodically sends
out a digital catalog to hundreds of
manufacturing companies in the area
advertising these classes.
Companies may obtain rebates for quali-
fied classes. The rebate is 50% of the
total cost of the training per employee,
up to a maximum amount of $500.
If anyone wishes more information about
the program or would like to be receive
the Compete Catalog please e-mail your
request to Tim Brandis at
[email protected]. (continued on page 8)
TRAINING OPPORTUNITIES
Re-Engineering Advanced
Manufacturing Careers Program
The program seeks to eliminate the
mismatch between job-seeker skills and
employer needs when filling mid-level,
in-demand manufacturing positions
such as electrical, mechanical and in-
dustrial engineers, logisticians, produc-
tion planners, quality control, and su-
pervisors among others. The program
provides employers with: recruitment
of job seekers along with a comprehen-
sive assessment to identify skill gaps;
employer subsidies for customized on-
the-job training to address new-hire
skill gaps and help them meet job re-
quirements, and an individualized on-
the-job training and career plan for new
hires with a training account to upgrade
skills. The employer may receive a sub-
sidy of up to 50% of the new hire’s base
hourly wage (not to exceed $10,100;
conditions apply). The cost of addi-
tional training or required credentials is
fully covered up to $5,000. For more
information, please contact: Carmen
Grosse at 412-992-6896 or
PITTSBURGH BUSINESS TIMES
MANUFACTURER OF THE YEAR
For the past nine years, the Pittsburgh Business
Times has been recognizing area manufacturers
with their “Manufacturer of the Year” award.
Consistently, NTMA member companies make the
finals, and this year is no exception with Alle-Kiski
Industries winning in the Under 50 Employees
category.
Alle-Kiski is a precision machining and fabrication
shop that helps defense, energy, industrial and
transportation customers solve problems.
Also finalists in this year’s competition: Jennison
Manufacturing Group of Carnegie, PA in the 50-
99 employee category and Accrotool located in
New Kensington, PA in the category for
companies with 100-299 employees.
Kurt J. Lesker Company was named the 2010
Manufacturer of the Year in the large company
category. The company is a long-standing member
of the Pittsburgh Chapter NTMA, as well.
Congratulations to all of our member company
finalists and winners.
SPOTLIGHT ON ASSOCIATE MEMBER: Life Cycle Engineering
Page 6 PRECISION PITTSBURGH
For more than 35 years, Life Cycle
Engineering (LCE) has provided
engineering solutions that deliver
lasting results for private industry,
public entities, government
organizations and the military. Their
mission is to enable people and
organizations to achieve their full
potential. The company website is
www.LCE.com.
LCE is headquartered in Charleston,
South Carolina, with regional and
field offices in: Bremerton,
Washington; Houston, Texas;
Norfolk, Virginia; Philadelphia and
Pittsburgh, Pennsylvania; San Diego,
California, Washington, DC; Dallas;
Texas; Honolulu, Hawaii; and
Mayport, Florida. The company is
organized into three groups: the
Reliability Consulting Group
(RCG), the Engineering Services
Group (ESG), and the Applied
Technology Group (ATG). Total
employment is approximately 500.
ESG personnel, located primarily in
Pittsburgh, Philadelphia, and
Washington, DC, include
approximately 50 highly skilled
engineers with expertise in: Systems
and Software Engineering; Electrical
and Mechanical Engineering; CAD
Modeling and Design; Finite
Element Analysis (FEA); HVAC
Engineering; Materials and
Metallurgical Engineering; Failure
Analysis and Reverse Engineering;
Alternative Energy and
Environmental Issues; Entrepreneur
and Start-Up Technical Support;
and SBIR Teaming and Technical
Support. More information about
ESG’s services can be found here:
www.LCE.com/esg/.
LCE’s Pittsburgh office is primarily
focused on providing support to
Southwestern PA’s growing
manufacturing sector. LCE has
extensive experience with the design of
specialized tooling and with the design
and testing of prototype components.
LCE is also excited about their work
evaluating conversion of gasoline and
diesel powered vehicles to compressed
natural gas (CNG) and liquid natural
gas (LNG) for municipal and
commercial applications, including on
and off-highway trucks, locomotives,
and river vessels. For more
information, please contact Tom Risley
at (412) 253-8380x3001,
[email protected], or toll free at (855)
764-0233.
TRAINING OPPORTUNITIES (Continued)
Page 8 PRECISION PITTSBURGH
Manufacturing 2000 Machining Training Program
New Century Careers’ Machining Training Program
was recently modified to offer three levels of compe-
tency training in machining in order to better meet the
needs of employers and trainees. All levels include
hands-on and theory training:
Level 1 Manual/CNC Operator Trainee -
250 hours.
Level 2 Machine Operator/Machinist
Trainee - 450 hours of training.
Level 3 Manual/CNC Machinist Trainee -
600 hours of training.
To find out more about the program training, to re-
ceive brochures to be distributed to interested parties,
to refer candidates to the program, to sign our agree-
ment to hire candidates or to donate materials or sup-
plies, please contact Ed Henry, basic skills training di-
rector, at 412-258-6617 or [email protected].
On-the-Job Training Grant $$ Available
Attention companies in Beaver, Greene & Washing-ton counties: Are you hiring new employees? Do
your new employees receive on-the-job-training? If
so, we have funds that may subsidize half of your
new employee’s wages up to $8,000 during OJT.
Funding is limited and on a first come, first serve
basis. To learn more about eligibility requirements
of this OJT Grant, please contact Liz Blashock from
New Century Careers at (412) 258-6628 or
PITTSBURGH APPRENTICESHIP: NIMS & Becoming an Instructor
Page 9
NIMS– National
Institute for Metal
working Skills
As a reminder to
companies, the NTMA
strongly recommends
that apprentices
complete NIMS projects
even though they are not
mandatory in the
curriculum.
It is the responsibility of
the employer to provide
the apprentices with
materials, tooling,
guidance and shop time
to complete the NIMS
projects. However, the
NTMA offer NIMS
Labs at each site
throughout the school
year. Your apprentice
was given a NIMS Lab
schedule at the
beginning of the school
year and they are given
the opportunity to sign up
each time a lab is offered.
NIMS Labs are offered as
an open show only. If you
do not require NIMS,
please encourage your
apprentice to pursue these
important personal
credentials.
NIMS has recently
endorsed a textbook
titled, “Precision
Machining Technology,”
as well as a Project
Manual Workbook.
These books can be useful
tools in supporting the
achievement of NIMS
credentials. If any
company or apprentice is
interested in purchasing
either of these books you
can contact Cengage
Learning at:
www.cengage.com/us/ or 1-
800-354-9706. The list
price for the text book is
$90.95, $20.95 for the
workbook.
If your company is
interested in getting
involved in NIMS, please
visit the NIMS website at
www.nims-skills.org.
INSTRUCTORS
We encourage companies
to take part in assisting the
NTMA in providing quality
training in the region. We
are lucky enough to have
some of the best instructors
around! If you or someone
from your company is
interested in becoming a
future NTMA instructor,
please call Liz Blashock at
(412) 258-6628 or e-mail:
www.allekiskiind.com
531 Hyde Park Road, Leechburg, PA 15656
( A llegheny Twp. - Congressional District #12 )
Phone: 724-845-2799 fax: 724-845-2797
Kevin Hartford, President
Ed Newell, Vice President
MACHINING, FABRICATION AND ASSEMBLY or contact Rick at:
Direct Dial: (412) 338-1309 Fax: (412) 338-1295 Mobile: (814) 397-5773 [email protected]
Rick Scott, Account Executive
PMA Direct: Pittsburgh
THE PMA Insurance Group
Two Chatham Center, Suite 600
Pittsburgh, PA 15219
A SPECIAL
THANK YOU
To
A special thanks goes out to
MSC Industrial Supply Co.
for sponsoring the 2012
Pittsburgh Chapter NTMA
Regional Apprentice
Competition.
This year’s event was held
March 2, 2012 at New
Century Careers Training
Innovation Center.
Watch your e-mail inbox or
check the spring issue of
Precision Pittsburgh for
competition results.
BUDGET CUTS (CONTINUED)
Page 10 PRECISION PITTSBURGH
TRADE-RELATED POLICY COMPETITIVE ADVANTAGE
Illegal Currency Manipulation 25% - 40%
Border Adjusted Tax (Multinationals oppose the US using this legal
tool to spur net exports – as all other nations do.) 17%
Weak Environmental, Safety, Labor, and Human Rights Standards 20% (Cost of Compliance in US)
Illegal Subsidies in Strategic Industries Sometimes more than 200%
Plus: Tariffs, Non-Tariff Barriers, Forced Technology Transfers,
Etc… Not quantified
The trade deficit is real money. It
represents real claims against the US
economy. It must be repaid. The
bad ways to repay it are: 1) print
more money, 2) borrow more from
foreigners, 3) sell more American
assets to international interests, and
4) lower our standard of living.
Unfortunately, we are doing all of the
above.
Good ways to redeem the trade defi-
cit and the toxic foreign debt that it
causes are: 1) export more than we
import and 2) attract foreign invest-
ment in new (not existing) produc-
tion capacity in America.
To accomplish this requires an effec-
tive national economic strategy that
rectifies the structural problems that
undermine the competitiveness of
domestic production. Given the dis-
torted nature of current global trade
dynamics, if national leaders fail to
address these structural problems, the
toxic US trade deficit will continue to
forestall genuine long-term economic
recovery. Tax cuts will have little
more lasting impact than stimulus
spending had.
Why?
There is a right way and a wrong way
to do globalization. The global part-
nership among multinational corpora-
tions, international bankers, and ma-
jor East Asian economies has forced
us into a bad globalization model.
They have a well-engineered strategy
to rig global markets to insure that the
wealth of America continually funnels
to them. If we let them continue to
expand this model – next through the
Trans-Pacific Partnership – America’s
wealth and good jobs will continue to
decline relative to the growth of our
population.
A significant piece of the globalists’
strategy includes a trade strategy to
insure that Americans continue to buy
more from the East Asians
(particularly China) than they buy
from us. Their plan is built around
manufacturing unfairly low-priced
goods in protectionist countries like
China and maintaining a unilaterally
open US market through lax trade
law enforcement so they can sell
their products in the US market at
tremendous profit.
This is the cause or our toxic trade
deficit and ever-growing foreign
debt.
The chart below illustrates how the
globalists’ economic strategy gives
Chinese products more than a
100% unfair competitive advantage
over US products before one cent of
labor cost is added!
From this we can see that even if we eliminate all
business taxes, domestic producers cannot compete
sufficiently with nations like China to pay down our
crippling trade deficit and foreign debt.
Without structural reforms, tax cuts and stimulus
spending are ultimately the head and tail of the same
coin. If we attempt to use tax cuts to stimulate the
US economy in the current global economic
framework, the long-term effect will be basically the
same.
Without a national economic strategy that includes
trade, tax, and energy policy reforms to make
domestic producers more globally competitive and
rebalance trade, attempts to revitalize the American
economy by cutting business taxes is like taking a
knife to a gun fight.
The current globalization structure guarantees that we
(Continued on page 11)
BUDGET CUTS (CONTINUED)
Page 11
“Without reforms to
move globalization in
a different direction,
the positive effects of
the proposed tax cuts
will dissipate almost
as quickly as
stimulus spending
did.”
buy more from the
Chinese than they buy
from us. So it took little
time for stimulus money
to make its way back to
China – where we
borrowed it from in the
first place. Without
reforms to move
globalization in a different
direction, the positive
effects of the proposed tax
cuts will dissipate almost
as quickly as stimulus
spending did. There will
be no end to the cuts we
will have to make.
The stimulus bubble did
not last long, but its long-
term negative effects did.
Stimulus spending
ultimately increased the
toxic trade deficit and
foreign debt that threaten
even greater economic
disaster for America.
Relative to population,
the American tax base is
declining at the local,
state, and federal levels.
This has already lead to
the loss of vital services
throughout the country.
Essential spending for
critical welfare
programs, government
services, and defense
will have to be cut more
and more, further
reducing our standard of
living and national
security, if we try to the
restore the US economy
this way.
Closing special-interest
loopholes that serve no
public good would help
to reduce or at least
avoid increasing business
taxes. Implementing an
effective US border
adjustable tax would
greatly expand the
federal tax base to include
foreign payers, reducing
the tax burden on domestic
producers. The latter
would directly promote the
global competitiveness of
domestic producers.
Opposing these tax reforms
is foolish at best.
Without a better approach
to globalization, one that
effectively addresses tax
reform and the other
structural problems that
disadvantage domestic
producers, American
wealth will continue to
bleed to China and the
wealth that remains will
concentrate in the hands of
fewer and fewer.
briefing from One Voice lobbyists on the
latest developments related to key
legislation. We’ll then head to Capitol Hill
for a few hours of meetings before enjoying
a networking reception that evening.
The entire day on Wednesday, May 9 will
be spent on Capitol Hill.
Finally, as an added benefit, a pre-
conference webinar is being planned for
first-time attendees plus any others who
would like a refresher on what to expect
during the congressional visits.
More than 100 PMA and NTMA members
convened in Washington, D.C., for last
year’s conference, where we spread our
message to 100 congressional offices. We
want to build on that momentum and have
an even more successful event this year, so
please plan to join us May 8-9 in
Washington!
Additional Information:
Complete details about the conference and
registration information will be sent to you
in the next couple of weeks. In the
Please mark your calendar and make
plans to attend the fourth-annual
NTMA/PMA One Voice Legislative
Conference in Washington, D.C., May
8-9, 2012.
Tax issues will be front and center. It
is incredibly important for us to weigh
in on tax reform as the action Congress
takes could last a decade or more and
impact our ability to compete globally.
Congress also will address health care,
workforce development and labor
issues in 2012—all important issues to
manufacturers. Because of the
significance of these issues, extra
emphasis is being placed on Capitol
Hill visits this year, allowing more time
to discuss the issues that matter most
to your business with those who hold
power in Washington.
The program kicks off on Tuesday,
May 8 with lunch and a political
insider’s analysis of what to expect in
the 2012 elections, followed by a
meantime, please contact Christie
Carmigiano at
with any questions.
ANNUAL LEGISLATIVE CONFERENCE MAY 8-9, 2012
By: Jim Grosmann, National Tooling & Machining Association
107 Freedom Court
Moon Township, PA 15108
Phone: (724) 601-6008
e-mail: [email protected]
PRST STD U.S. POSTAGE
PAID PERMIT NO. 130
GREENSBURG, PA