voice of the $40 billion contract metalworking ......quote fast and accurate schedule the shop...

ECORDECORD

October 2011 Volume 30, Number 10

VOICE OF THE $40 BILLION CONTRACT METALWORKING INDUSTRY • www.ntma.org

Contents

Chairman’s Corner............................1

5 Key Strategies to Control Shipping Costs ..................................4

Fighting Job-Killing Regulations in Washington, D.C. ........................8

NTMA Guide to Member Services – Did You Know? ..............11

Penske NASCAR Drivers Visit Mazak Plant ............................12

Waukesha® Metal Products on the2011 Inc. Magazine 500|5000........14

Rockford Toolcraft Promotion ........15

ISTMA Statistical Year Book – 2011 ....................................15

The editorial content of the NTMA Recorddoes not necessarily reflect the opinion of the National Tooling & Machining Association or its Chapter affiliates.

I recently attended the imX event in Las Vegas wheremachine tool builders, tooling creators, distributors, andmanufactures got together to learn about emerging technol-ogy, share the trends, and participated in an open exchangeof information and needs. One keynote speaker took a poll via text messaging about our thoughts on the

economy. More than 50% of the responses were very positive. This is quite the oppo-site of what he is seeing at most of his presentations. It could be said that our industryis just lucky, in the right place at the right time, or it’s our turn. However, I wouldargue that we are moving through an inflection point in which our country’s rele-vance as a world leader is dependent on re-embracing science, technology, and manu-facturing; not as a means to provide us with things, but as a fundamental shift in oureducation system and careers. This does not happen overnight. It is up to each of usto show a clear path and to keep a light shining so people will know which path tofollow. By the way, that last word – “follow” – was chosen with great care. In otherwords, we are required to be the leaders of this change. If you look back on our short history as a nation, you will see that our success has

been based on some key events – the industrial revolution, space flight, the Internetrevolution, and now the biotech revolution. There are many more timeframes thatcould be added to the list; however, it is important to note that these all required sci-ence, technology, and manufacturing. We are at the point where we have to get ourschool systems re-focused on science and engineering, while at the same time teach-

ing the crafts and skilled trades for this century! I’m sure overthe last several months, I have said the same thing in manydifferent ways and am approaching the point of being redun-dant, but we are the future of our nation and our children.We have to stop complaining and waiting for someone else tofix things. If change doesn’t start with us, then who?

Chairman’s CornerGrady Cope, NTMA Chairman of the Board

(continued on page 3)

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While things have been going well for

U.S. manufacturing, there is the con-stant noise from the media and ourelected officials that the economy mightfall back into recession. You hear thatcompanies aren’t hiring, business is slowand getting slower, while at the sametime profits are up, most business isexpanding and consumers are stillspending, although at a slower rate.What’s the real story? I am not sure any-one knows the answer, but we can beginto assemble some answers.We all know that there are jobs avail-

able, but the lack of skilled workers pre-vents them from being filled. I don’tthink it is only manufacturing that isshort of skilled workers. Because of sci-ence and technology the required jobskills have changed for most, if not all,industries. It’s time for the U.S. toacknowledge this and begin to focus onre-training efforts to put people back towork. The result of this effort would putpeople in higher paying and lasting jobs.It’s time our elected officials worked

together with small business in theseefforts. Despite the rhetoric you hear, it’ssmall business that creates jobs, paystaxes, and invests in America’s future. I would propose that our government

work together with each other and smallbusiness to help solve the problems.Small business does not want anotherprogram to add to the already under uti-lized training services. What it wants isfor Congress and the President to go to

October 2011 The Record 3

work on the nation’s problems and holdeach other and the numerous agenciesaccountable. In other words, if you arenot part of the solution, then get out ofthe way!

Grady CopeChairman

NTMA Customer Value Proposition

“Your membership in the National Tooling & Machining Association will

position your company amongst the bestin the industry by providing the resources and tools necessary for

world class performance.”

“Your return on investment is immediateas you leverage the vast knowledge that resides within the Association and apply it to your business.”

“An advocate for our industry, NTMAleads the charge for precision

manufacturing through networking, lobbying, education, procurement,

advice and assistance, and focused cost savings programs.”

P R E C I S I O N

NTMA Executive Team

Grady CopeChairman

Reata Engineering & Machine WorksEnglewood, Colo.

Roger AtkinsVice ChairmanMIC GroupBrenham, Texas

Robert MoseyTreasurer

Moseys’ Production Machinists Inc.Anaheim, Calif.

Theodore O. Toth, Jr.Secretary

Toth TechnologiesPennsauken, NJ

Ron OvertonPast Chairman of the BoardOverton IndustriesMooresville, Ind.

Operations & EditorialDave TilstonePresident

Emily LipovanManaging Editor

National Tooling & Machining Association6363 Oak Tree Blvd.

Independence, OH 441311-800-248-6862www.ntma.org

Advertising InquiriesFor advertising information on the Record, orfor information on publishing your corporatenewsletter or sales literature, contact MSI at216-901-8800, ext. 2108 or [email protected]

© Copyright 2011 NTMA

5 Key Strategies to Control Shipping Costs

4 The Record October 2011

Many companies feel a constant strainon their businesses in the form of ever-increasing expenses. Day-to-day businessexpenses such as rent, utilities, andinsurance all continue to climb, whilecompetitive pressures deter companiesfrom raising prices to cover any short-fall. Businesses must find a way to cutoperating expenses. Reducing shipping costs is an often

overlooked way to combat rising expens-es. With annual carrier rate increases,skyrocketing fuel costs, and accessorialcharges that may increase 20% or moreyear over year, finding a way to reduceyour shipping expenses can make a seri-ous impact on your overall balancesheet.But how do you know if you’re spend-

ing too much on shipping? One easy wayis to determine your shipping expensesas a percentage of total sales. On aver-age a business spends 1.5% to 4% oftotal sales on shipping. This can vary bythe size of the company, total companysales volume, or the type of products thecompany is shipping and receiving. Howmuch is your business spending on ship-ping? Conduct an analysis.Here are five key strategies to help

you get your shipping costs in line.Implement one or all five of them andwatch your shipping costs go down—increasing profits.

Key Strategy #1 ObtainDiscounts with CarriersIf you think you have to be the size of

Wal-Mart or Home Depot to obtain dis-counts with carriers, think again. Manylarger businesses have the volume andfavorable shipping characteristics tonegotiate directly with carriers. If you,

too, have been able to successfully navi-gate this process, you are on the righttrack. If you have not been successful, orsimply don’t have enough volume tonegotiate such discounts, there are stillopportunities available to obtain them.You can work with a 3rd party logisticsprovider, who can leverage their buyingpower to obtain discounts for you. Thereare also many institutional, government,and association programs that can helpmembers receive discounts.

Key Strategy #2 Develop anInbound Shipping ProgramReducing inbound shipping costs is

one of the easiest, yet most overlookedways to reduce overall transportationexpenses. Vendors typically receive vol-ume discounts from carriers—but areyour vendors passing those discountsalong to you? When you control androute your inbound shipments, you havean excellent opportunity to significantlylower your costs. If you allow suppliersto route your shipment and invoice youfor shipping charges, your transportationcosts are probably higher than theyshould be. Being the buyer allows you tonot only determine what you purchasefrom a particular vendor, but also how itis shipped to you.As the buyer and receiver of the

goods, you can—and should—designatethe carrier. If you continue to allow ven-dors to prepay for shipping and add it toyour merchandise invoice, in mostinstances you will continue to pay morethan you should for incoming product.The first step in reducing inbound

shipping costs is to notify your vendorsvia a Customized Routing Instruction


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Letter. This letter specifically states toyour vendors how you want your mer-chandise shipped to your store. In yourRouting Instructions Letter, indicate tothe vendor that if they do not followyour shipping instructions, you will notpay for shipping charges on merchandiseinvoices, and allow no exceptions tothese instructions. Send the RoutingInstructions Letter to your sales repre-sentative, customer service manager, orto the accounts payable department. Donot send your instructions directly tothe shipping department.

Key Strategy #3 Use TheCorrect Mode & Service LevelExamine where you spend your trans-

portation dollars. Is your spending con-centrated in less-than-truckload (LTL)freight rather than small package, or airinstead of ground? These distinctions are



called modes of transportation. Groundshipping and air shipping are the twomost common transportation modesthat businesses use on a day-to-day basis.An example here helps illustrate theimpact of using the correct mode. Fortwo-day guaranteed service, you cansend a 35 lb. package from Cleveland toBoston and pay a ground rate of $16.50.Sending the same package second dayair would cost approximately $60.75.

That’s a difference of 73% to ship airversus ground for the same two-day levelof service.Service level refers to the timeframe

in which the carrier will ship the pack-age from origin to destination, such assame day service, next day, two-day,three day, etc. Why pay for next dayservice if you don’t need next day serv-ice? Another example helps illustratethe impact on your bottom line by usingthe wrong level of service. Let’s use thesame example above. To get a 35 lb.package from Cleveland to Boston thenext day, you would need to use theservices of an air express carrier and yourcost would be around $168. If time per-mitted, you can send the same packagesecond day air at a cost of approximately$60.75 (a 64% savings). The same pack-age via two-day ground costs about

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$16.50. Clearly, using the correct servicelevel to meet your needs is critical inkeeping your transportation costs down.

Key Strategy #4 Audit All InvoicesIt is estimated that between 5% and

10% of freight invoices contain somesort of error. Auditing your freightinvoices can help you catch and receivecredit for costly mistakes. You shouldaudit several line items on a carrierinvoice, most notably: checking for thecorrect discount, making sure you arebilled for the service you requested, veri-fying product classification (freight ship-

ments only) and monitoring extra serv-ice charges. Also, if you have aninbound shipping program in place, beaware of double billing for shipments. Ifyou’re routing inbound shipments fromvendors, shipping charges should neverbe on the merchandise invoice from thevendor.

Key Strategy #5 Consolidation of ShipmentsWhy send three separate shipments if

you can consolidate and send just one?Consolidation will save you time andmoney, as an example here helps illus-trate. For two-day guaranteed service,

you can send a 45 lb. package fromCleveland to Boston and pay a groundrate of $73.50. Sending three separate15 lb. packages would cost approximate-ly $99. That’s a difference of 26% toship one versus three separate ship-ments!Utilizing some or all of the 5 key

strategies to control shipping costs caneliminate the strain shipping expensesput on your business. NTMA

For more information or additional help onimplementing these key strategies call Part-nerShip at 800-599-2902 or [email protected].


Fighting Job-Killing Regulationsin Washington, D.C.

The One Voice team is working inWashington, D.C. to oppose theNational Labor Relations Board’s(NLRB) continued assault againstemployers. One Voice, its members andother business groups have fought backagainst the job-crushing agenda of regu-lators and many battles are coming to ahead. While much of the regulators’direct actions are beyond our control,One Voice is working with its supportersand lawmakers on Capitol Hill to passlegislation putting a stop to these regula-tions that do not benefit employees andhurt employers. As expected, the NLRB issued its final

rule on August 26, effective on Novem-ber 14, to require most private-sectoremployers to post a notice informingemployees of their right to unionizeunder the National Labor RelationsAct. The notice is identical to the one

the Department of Labor (DOL)requires government contractors to postpursuant to President Obama’s 2009Executive Order.

The poster rule is the latest in a stringof NLRB actions that will harm theemployer-employee relationships thatform the foundation of a successful busi-ness. Other pending NLRB actionsinclude “ambush elections,” in whichthe union-election process would be dra-matically shortened from the mediantimeframe of 38 days to as little as 10 to21 days after a union-election petitionhas been filed; a rule that would “clarify”what type of employer activity is to beconsidered “persuader activity” thatwould need to be reported to theDepartment of Labor; and the NLRBcomplaint against Boeing, demandingthat the company transfer work from itsfacility in the largely nonunion state ofSouth Carolina to Washington state.With Congress returning from its sum-

mer recess, the House of Representativesis expected to proceed with a regulatoryrelief agenda focused on the repeal ofthese unnecessary and harmful regula-tions put in place by the NLRB and


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other agencies. One Voice is workingwith Republican leadership in theHouse and coalition partners to repealthese regulatory burdens that harm theemployer-employee relationship. Con-gress is expected to vote in the Fall onlegislation such as H.R. 1976, whichwould reverse the Boeing decision; H.R.2810/S. 1507, preventing implementa-tion of the proposed ambush electionsrule; and H.R. 2833, repealing NLRB’sposter rule. One Voice has sent an alertout to NTMA and PMA to call yourMembers of Congress to support therights of American employers by sup-porting legislation to reverse theseharmful agency actions. We will contin-ue to update you on these legislativeefforts.In a victory for manufacturers, Presi-

dent Obama asked EPA AdministratorLisa Jackson on September 2 to with-draw draft standards that would haveplaced new restrictions on ground-levelozone—known as smog. This is animportant step by the President whosided with manufacturing groups such asOne Voice over the objections of theEPA. One Voice is working with mem-bers of Congress and other industrygroups to educate the Administration onthe impact these types of regulationshave on manufacturers, especially smallbusinesses. This victory follows thewithdrawal earlier this year of anotherregulation opposed by One Voice—theOSHA Noise Rule, which stood to costmanufacturers millions. One Voice andits members will build on the President’sozone decision and work on the other

pending regulations that impact manu-facturing in America.Manufacturers can make a difference

in Washington, but only if they partici-pate in the process. A reminder thatNTMA members can give unlimitedcorporate or individual contributions tothe NTMA Government AffairsAdministrative Fund which supports thework done on behalf of NTMA by TheFranklin Partnership and Bracewell &Giuliani LLP. Additionally, NTMAmembers can make limited personaldonations to the Committee for aStrong Economy (CFASE) PAC whichsupports pro-manufacturing Congres-sional candidates. Also, please considerparticipating in the 2012 LegislativeConference and other GovernmentAffairs activities. NTMA

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The NTMA Business ConditionsReports are just one of the many “Mem-ber-Only” services available to you as anNTMA member; accessible online atthe NTMA website (www.ntma.org), foryour convenience (passwordrequired).

Announcing the LatestNTMA BusinessConditions ReportThis NTMA Report covers the

first half of 2011 and is a geo-graphical “snapshot” of businesstrends and conditions in the spe-cial tooling and machining

NTMA Guide to Member Services –Did You Know?...As an NTMA member, you have access to the latest Business Conditionstwice a year?

industry. Business conditions for NTMA mem-

ber companies showed improvementthrough the first half of 2011, and opti-

mism is evident as manufacturers pacethemselves for a continuing level of pro-ductivity for the remainder of the year. In nearly every region and industry

segment, our manufacturers are seeingimproved business conditions and grow-ing confidence for the year. Quoting,Shipping, Order Backlog, Profits, andEmployment have all increased over theprior reporting period and are expectedto stay the same or increase through thenext quarter.A special thanks to the NTMA mem-

ber companies that participated in theJune 2011 NTMA Business ConditionsReport. NTMA

Member Testimonial“The NTMA makes us aware of future trends intechnology, economics, politics and business. Itis a strong and effective organization. Bench-marking with fellow members is invaluable tous. The benefits my company has received, faroutweigh the cost of being a member.”

Steve Hasty, A & E Custom Manufacturing Technologies,

Kansas City, KS


2011 Fall Conference

October 13-16, 2011The Broadmoor, Colorado Springs, CO

“Marketing Manufacturing to America”

NTMA Chairman Grady Copeexpands his theme of“Marketing Manufacturing toAmerica” with a programfocused on building a sustainable U.S.manufacturing economy.

Industry roundtable sessions are back onthe program – always a highlight of ourNTMA conferences. Join fellow members in discussing businessconditions, challenges and opportunities in your industry sector.

Please join us for an unforgettable conference at one of America’s most historic

resort locations!

Save the Date

Pikes Peak or Bust!Situated at the footof the Rockies, theBroadmoor hasserved as thedestination ofchoice forpresidents,diplomats andcelebrities since itsopening nearly acentury ago. NTMAjoins the list ofesteemedcustomers for our 2011 Fall Conference.

For more information goto www.ntma.org or call800-248-6862

Grady Cope, NTMA Chairman

Mazak Corporation welcomed Penske NASCAR Sprint CupRacing Team drivers Kurt Busch and Brad Keselowski to its Flo-rence, Kentucky, production plant on July 6, 2011. The PenskeTeam drivers gathered in the Technology Center of the manufac-turing campus where they shook hands with Mazak employees andsigned autographs. The drivers also toured Mazak’s expansive Pro-duction-On-Demand machine tool manufacturing areas, wheremany of the Mazak machine tool models used by Penske�s racingmachine shops are built from the ground up.Local media was also on hand covering the event. Reporters

from the Cincinnati Enquirer and Cincinnati television sta-tions WXIX Fox 19, WKRC 17 CBS and WLWT 5 NBC con-ducted interviews with the drivers, discussing Penske’s techni-cal partnership with Mazak and other racing-related topics.The machine shop at Penske Racing uses Mazak’s Vertical Turn-

ing Center 800/30 SR, Vertical Center Nexus 510 C, Quick TurnNexus 250 MSY, and Vertical Center Nexus 410 B. Thesemachine tools give Team Penske a competitive advantage in man-ufacturing both its simple components in the Team’s race shop andits extremely complex ones machined in the Team’s engine shop,where they have an Integrex e-410, Integrex 300, Vertical CenterNexus 510 C, Vertical Center Nexus 410 B, Quick Turn Nexus250 M and a Vertical Turning Center 200 B.“We were proud to be able to welcome the Penske Racing

Team drivers to our facility and to display the Kurt BuschSprint Cup No. 22 Pennzoil car and Brad Keselowski’s No. 22Nationwide Series Discount Tire car. Mazak has long been astrong Penske Racing technology sponsor since 1994, and the

Penske NASCAR DriversVisit Mazak Plant


NTMA Joins LinkedIn Generation!The NTMA has formally joined the LinkedIn Generation so members can network 24/7

without leaving their companies.

• Do you want to network with other NTMA members? • Are you thinking about buying new software or machines?• What to see what peers have to think about a business idea?

If you can control your mouse, you can join too! It’s very easy.

Go to the NTMA website (www.ntma.org). Click on the LinkedInicon and follow the instructions. This program is open to anystaff from any NTMA member company. This is an NTMA mem-bers’ – only program, so you won’t get selling or unwanted pressure from outside groups.

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NASCAR Penske Racing Team drivers Brad Keselowski and Kurt Busch(second and third from left) sign autographs and pose for photos withMazak employees at a recent visit to the Mazak manufacturing campus inFlorence, Kentucky.

Mazak logo can be seen on these Penske racing cars,” saidBrian Papke, president of Mazak. “Penske Racing uses Mazakmachines to manufacture various critical car components, andmany of those components were showcased for Mazak employ-ees to see exactly how the innovative machine tools that theybuild are helping to keep Penske in the winner’s circle.”During the factory tour, both Busch and Keselowski showed

marked interest in the Mazak technology that plays a key rolein the manufacturing of components for their racecars. Thedrivers also acknowledged how critical technical sponsorships,such as the one with Mazak, are to Penske Racing’s success.Mazak is considered the largest metalworking machine tool

builder in the world and a technological leader of the industry. Thecompany is well established internationally with technology cen-ters in 30 different locations including all the major countries ofthe world, and factories in the United States, Japan, United King-dom, Singapore and China. The Florence, Kentucky, facility isMazak’s North American headquarters and employs 455 people.Busch and Keselowski were in the Kentucky area for the July

9 NASCAR Sprint Cup Quaker State 400 race at the Ken-tucky Speedway in Sparta. The speedway is a short distancefrom the Mazak facility, and the Quaker State 400 is the speed-

way’s first hosted NASCAR Sprint Cup Series race.Busch drives the No. 22 Shell-Pennzoil Dodge for Penske Rac-

ing Team and recently won his first-ever NASCAR Cup Seriesroad course victory, the Toyota/Save Mart 350 at the InfineonRaceway in Sonoma, California, on June 26. His racing careerincludes 22 victories, 80 top-five and 153 top-10 finishes, alongwith 12 career Cup Series poles and a Cup Series title.As a second-year Penske Team Racing driver, Keselowski has

had the opportunity to get behind the wheel of the well-knownNo. 2 Miller Lite Dodge during the 2011 season. Fresh off his first




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(continued from page 13) Waukesha® Metal Products on the2011 Inc.Magazine 500|5000Exclusive List of America’s Fastest-Growing PrivateCompanies

Inc. magazine today ranked Wauke-sha® Metal Products No. 3197 overall,and No. 110 in the manufacturingindustry on its fifth annual Inc.

500|5000, an exclusive ranking of thenation’s fastest-growing private compa-nies. The list represents the most com-prehensive look at the most importantsegment of the economy—America’sindependent entrepreneurs. Onlineretailer ideeli tops this year’s list.Waukesha® Metal Products joins SpiritAirlines, television maker Vizio, HonestTea, Dunkin Donuts and Metrokane,makers of the Rabbit corkscrew, amongother prominent brands featured on thisyear’s list.In a stagnant economic environment,

median growth rate of 2011 Inc. 500|5000companies remains an impressive 94 per-cent. The companies on this year’s listreport having created 350,000 jobs in thepast three years, and aggregate revenueamong the honorees reached $366 billion,up 14 percent from last year. Complete results of the Inc.

500|5000, including Waukesha® MetalProduct’s profile, can be found at:http://www.inc.com/inc5000/profile/waukesha-metal-products.“Now, more than ever, we depend on

Inc. 500/5000 companies to spur inno-vation, provide jobs, and drive the econ-omy forward. Growth companies, notlarge corporations, are where the actionis,” says Inc. magazine Editor JaneBerentson. From humble beginnings as a two man

tool and die shop, Waukesha® MetalProducts has developed into an interna-tional full-service metalforming manu-facturer, delivering the best-cost partsand assemblies in the industry since1971. For more information visit:www.WaukeshaMetal.com. NTMA


“That’s why we went with Global Shop Solutions. They were in, they were out, and we were seeing major new efficiencies—right from the start. What a tremendous difference their ERP system, and their people, made in accelerating our workflow, lowering overall costs, and setting the stage for unconstrained growth. Very powerful. Only regret is that we didn’t go with them years ago.”

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Helping manufacturers produce results.A Right-From-The-Start™ ERP success story.

Designed to Streamline™

“The busier we got, the more we needed a powerful ERP system up and

running. Out here, there’s no time for down time.”

Andy Bubulka, Manufacturing Plant Manager H-J Enterprises, St. Louis, MO

©2011, Global Shop Solutions, Inc.

Jerry Busse has announced the promo-tion of Thomas A. Busse to president ofRockford Toolcraft, Inc., Rockford, IL.Tom will be overseeing the day-to-dayoperations and assist on planning thefuture needs of the company. He previouslyserved as vice president of the company, asupplier of heavy-gauge stampings and dies.Jerry plans on remaining active in thecompany as his role as CEO. NTMA

RockfordToolcraftPromotion

ISTMA StatisticalYear Book – 2011ISTMA has just released a new edition

with updated information about interna-tional trade in Tooling Industry. This bookpresents statistical information about inter-national trade and manufacturing on Tools,Dies and Moulds. The purpose of the work is to collect,

treat, compute and release data concerningproduction, exports, imports and valueunit indices (value/quantity) for the mostimportant classes of products in the indus-try under analysis.This “ISTMA Statistical Year Book –

edition 2011” aims to provide useful infor-mation for a more comprehensive under-standing of the global and present frame-work picture, delivering an additional toolnot only to understand the consequencesof the present crises but also recognize thedynamics of the structural changes.All the full reports are available free for all

the members of ISTMA national associa-tions. ISTMA statistics are only released forpublic use two years after their publicationdate. For additional information please contact

ISTMA Secretariat at [email protected]

* Standard product configuration, peak performance.© 2011 Makino

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