Springs 2014 Vol.53 No.2

THE INTERNATIONAL MAGAZINE OF SPRING MANUFACTURE A Publication of the Spring Manufacturers Institute / Vol. 53, No. 2

2001 Midwest Rd., Suite 106Oak Brook, IL 60523-1335Change Service Requested

Family Feud 29

Mexicos Growing Metal Class 42

SMI 81st Annual Meeting Recap 48

Springmakers Connect with the

ElectricalIndustry

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2 / SPRINGS / Spring 2014

Report from ParadiseBy the time you receive this issue, winter should be over. Right now as I

write this it is snowing here in Bostonagain. For the umpteenth time in as many days, its cold and snowy. And there are many sections of the country that have experienced even colder and snowier weather. But there is at least one place where there has been NO snow this winter in Hawaii.

It just so happens that SMIs Annual Convention was in Oahu this past February. What a coincidence!

Besides enjoying some polar-vortex-free conditions, SMI members took time to sit on the beach or by the pool; some members were even spot-ted swimming. There were tours of Pearl Harbor and the Kualoa Ranch, the area used to film Jurassic Park and other Hollywood blockbusters. A whale watch took placeand whales were even sighted! And of course, being in Hawaii, there was a tremendously fun and entertaining luau.

Among all these enjoyable activities, members were busy connecting with each other. Some were seeing old friends, catching up on each others lives and businesses. Others were new to the SMI scene, and had the chance to make fresh acquaintances. Suppliers saw customers. And everyone there had a chance to pay tribute to Jim Wood, SMIs independent regulatory compliance consultant, who recently announced his upcoming retirement.

The Oahu meeting was also a venue full of important educational content. We heard from David Wheatley, an expert on leadership and team building, who spoke about the choices we all make in our jobs and businesses. Nariman Behravesh, a noted economist, updated members on the U.S. and global economies. And Colonel David Hunt gave a synopsis of the current state of the war on terror.

More important than any of this, however, was the work undertaken by the SMI operating committees. These groups consider everything from the educational content of future meetings, to how we best attract new mem-bers, to what surveys are the most useful to our members, to how Springs magazine can maintain its excellence in publishing the news of our industry, and how our associate members can best serve SMI.

This convention marked the debut of our Trade Show committee, charged with developing and producing the first-ever SMI technical symposium and exhibi-tion. Led by Dan Sceli of Peterson Spring, the membership of this group includes eight regular, associate and even honorary members. In addition, it is working closely with our Technical committee (co-chaired by Gene Huber of Winamac Coil and Simon Fleury of Liberty Spring) since a key component of the trade show experience will be the technical symposium to be held during the event.

I would like to extend an invitation to any SMI member who would like to help develop our trade show. There is much to accomplish, and our ultimate success will depend on the involvement of many talented folks.

So as you can see lots happened while SMI was out in paradise. If you were there, thanks for coming. And if you werent, I hope you will consider joining us in April, 2015 when we gather in Orlando.

Hap PorterPresident and COO, SEI MetalTek [email protected]

SMI Executive CommitteePresident: Hap Porter, SEI MetalTekVice President: Mike Betts, Betts CompanySecretary/Treasurer: Steve Kempf, Lee SpringImmediate Past President: Steve Moreland, Automatic Spring ProductsAt Large: Bert Goering, Precision Coil Spring Co.Executive Director: Lynne Carr

SMI Board of DirectorsTim Bianco, Iowa Spring Torsten Buchwald, Kern-Liebers USA Mark DiVenere, Gemco Manufacturing Simon Fleury, Liberty Spring Ed Hall, Spring Team Gene Huber Jr., Winamac Coil Spring Charly Klein, Fox Valley Spring Bill Krauss, Vulcan Spring Don Lowe, Peterson Spring Bill Marcum, MW Industries Melanie Orse, Sound SpringJennifer Porter, SEI MetalTek Dan Sceli, Peterson Spring JR Strok, Mohawk Spring Bill Torres, Gibbs Wire and Steel Jeff Wharin, Bohne Spring Ted White, Hardware ProductsSteve Wunder, Duer/Carolina Coil

Springs Magazine StaffLynne Carr, Advertising Sales, [email protected]

Gary McCoy, Managing Editor, [email protected]

Dina Sanchez, Assistant Editor, [email protected]

Sue Zubek, Graphic Designer, [email protected]

Springs Magazine CommitteeChair, Ted White, Hardware Products Reb Banas, Stanley Spring & Stamping Lynne Carr, SMI Raquel Chole, Dudek & Bock Ritchy Froehlich, Ace Wire Spring & Form Bud Funk, Fourslide Products Bill Marcum, MW Industries Brett Goldberg, International Spring Tim Weber, Forming Systems Europe Liaison: Richard Schuitema, Dutch Spring Association Technical Advisors: Loren Godfrey, Honorary Member Dan Sebastian, Honorary Member

Advertising sales - Japan Ken Myohdai, Sakura International Inc. 22-11 Harimacho1-Chome, Abeno-ku Osaka 545-0022 Japan Phone: +81-6-6624-3601 Fax: +81-6-6624-3602E-mail: [email protected]

Advertising sales - EuropeJennie Franks, Franks & Co.63 St. Andrew's Road Cambridge United Kingdom CB41DHPhone/Fax: +44-1223-360472 E-mail: [email protected]

Advertising sales - TaiwanRobert Yu, Worldwide Services Co. Ltd.11F-B, No 540, Sec. 1, Wen Hsin Rd. Taichung, TaiwanPhone: +886-4-2325-1784 Fax: +886-4-2325-2967 E-mail: [email protected]

Springs (ISSN 0584-9667) is published quarterly by SMI Business Corp., a subsidiary of the Spring Manufacturers Institute: 2001 Midwest Road, Suite 106, Oak Brook, IL 60523; Phone: (630) 495-8588; Fax: (630) 495-8595; Web site www.smihq.org. Address all correspondence and editorial materials to this address.The editors and publishers of Springs disclaim all warranties, express or implied, with respect to advertising and editorial content, and with respect to all manufacturing errors, defects or omissions made in connection with advertising or editorial material submitted for publication.The editors and publishers of Springs disclaim all liability for special or consequential damages resulting from errors, defects or omissions in the manufacturing of this publication, any submission of advertising, editorial or other material for publication in Springs shall constitute an agreement with and acceptance of such limited liability.The editors and publishers of Springs assume no responsibility for the opinions or facts in signed articles, except to the extent of expressing the view, by the fact of publication, that the subject treated is one which merits attention.

Do not reproduce without written permission.

Cover art: echo3005/Shutterstock.com

Presidents MessageFrom Hap Porter

SPRINGS / Spring 2014 / 3WWW.RKTRADINGUSA.COM 847-640-9771

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Contents

FEATURES

19 Springmakers Connect with the Electrical Industry

By Gary McCoy

27 FlashbackPresident's Message

By George C. Underwood

29 Family FeudHow Buy-Sell Agreements Can Save the Family Business

By Phillip M. Perry

35 International Spring Conference Planned for Tokyo in 2015

37 Ulbrich Marks a 90th Year Milestone

42 Mexico's Growing Metal Class

By Peter Buxbaum

48 SMI Celebrates 81st Annual Meeting in Hawaii

19

COLUMNS

15 Be Aware Safety TipsOSHA Record Keeping for Power Presses

By Jim Wood

15 IST Spring TechnologyNickel Alloy Springs in Contact with Molten Metals

By Margaret O'Malley

DEPARTMENTS

2 Presidents MessageReport from Paradise

7 Global Highlights

12 Regional Spring Association Report

55 Springmaker Spotlight Former Rower Helps Steer SMI Into New Waters: A Profile of Hap Porter, SMI's 34th PresidentBy Gary McCoy

61 Book Corner

63 Inside SMI

65 New Products

67 Advertisers Index

68 SnapshotKeith Porter Jr., Newcomb Spring

55

4248

SPRINGS / Spring 2014 / 5

bend

wire

New bending concept 3 concentric bending axis 2 axial movable bending pins All axes are numerically controlled Movable cutting unit optionally available Manually adjustable bend-back clearance Machine program creation from CAD data

Expanded range of parts due to the combination of bending head and coiling unit Production of torsion springs (spring bodies with / without pitch) Production of spring bodies with defined pitch using profiled mandrels

The New BM 90 Coiling and Bending Machine (max. 16 mm )

BM 90 Mandrel Coiling Unit

BM Series Working Ranges:BM 30 max. 6.5 mm BM 40 max. 8.0 mm BM 50 max. 10.0 mm BM 60 max. 13.0 mm BM 90 max. 16.0 mm

approx. 3 parts/min

approx. 5 parts/min

approx. 7.5 parts/min

approx. 7 parts/min

Examples of 10.5 mm spring steel with 189 KSI tensile


North AmericaBetts Company has been named a 2014 Business

Partnership award winner by the Fresno Compact and was formally recognized at the Fresno Compacts 18th Annual Shareholders Luncheon on March 5, 2014.

Each year the Fresno Compact recognizes 10 local businesses that have built exceptional partnerships with schools, contributing time and resources to help students reach their full potential.

Brett Camacho, the department chair for trades in the applied technology division at Fresno City College, nominated Betts Company for the award. Camacho says for the last two semesters the school has worked collaboratively with Betts Company on the construction of 30 metal racks to hold materials for the company. Their engineers drew up the plans, the company purchased all of the materials and the fabrication students built them, explained Camacho. This worked out great because it provided our students the opportunity to build different projects with no out-of-pocket cost.

Camacho went on to say, The partnership positively impacts the students by giving them real world experience they might not otherwise have the opportunity to receive. Our business partners positively impact the community by allowing students to receive better training, which leads to their being better contributors to the industries in our area.

Joe Devany, director of operations, represented Betts Company at the March 5 luncheon and says the company is honored by the recognition. We are thrilled to support educational endeavors in our community through schools like Fresno City College and Cal State University Fresno, said Devany. We value these positive partnerships and will continue to support their growth.

The purpose of the Fresno Compact is to focus community-wide efforts on preparing students for the increasing demands of society and the workplace. In doing so, it provides a mechanism for mobilizing business and community support of local public schools, and it acts as a clearinghouse for the sharing of information among school districts, businesses, and community leaders. The Fresno Compact is the coordinating body of the Fresno Area Strive program. For more information on The Fresno Compact, visit www.fresnocompact.com.

For more information on Betts Company, visit www.Betts1868.com, phone 559-498-3304, or email [email protected].

Law School. After graduation from the U.S. Naval Academy in 1963, he served six years on active duty on the frigate USS Preble, the destroyer USS Sarsfield and an assignment as staff engineer with DESRON 36. His sea duty tours included three Western Pacific deployments with Vietnam service and a Mediterranean deployment.

Davey left active duty and went to law school and transferred his commission to the Naval Reserve as a JAG Corps lawyer. He retired as a Navy Captain and the commanding officer of the Philadelphia Reserve Legal Unit in 1986.

In civilian life, Davey was employed by Proctor and Gamble, then practiced law and finally worked on a federal congressman's staff before joining John Evans Sons in 1977. He eventually owned John Evans Sons in Lansdale, Pa. as well as Delmaco Manufacturing in Georgetown, Del. During this time, Davey learned to fly and piloted his own A-36 Bonanza.

Davey is married to Elaine; they have three married children and eight grandchildren.

Davey will remain on the Board of Directors as non-executive chairman.

National Association of Manufacturers (NAM) president and CEO Jay Timmons delivered the annual State of Manufacturing address on February 25 in Houston, Texas, one of the manufacturing communitys most vibrant economic centers. Speaking at the Greater Houston Partnerships Thought Leader Series, Timmons discussed the unique opportunities and challenges facing

Global Highlights

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/DNY59

John Evans Sons has announced that Frank L . Davey, execut ive chairman, has retired after 37 years with the company. Davey started w i t h t h e c o m p a n y i n p l a n n i n g a n d development, and was vice president of finance and marketing for many years before becoming chairman in 2005.

Davey graduated from the U.S. Naval Academy, and Temple University

Frank L. Davey


the manufacturing economy and the solutions that will bolster the manufacturing industrys economic strength nationwide and throughout the world.

Timmons attributed manufacturings comeback to its dynamic workforce, innovation and game-changing energy resources. He noted, however, the critical need to implement policies supporting manufacturing to eliminate the stifling effect that overregulation, high taxes, rising health care costs and a lack of trade agreements have on manufacturers competitiveness. Portions of the address are as follows:

Today, Im pleased to report to you that manufacturing in America is making a comeback. Thats a tribute to the hardworking men and women who produce the goods and generate the ideas that power the U.S. economy as well as the global economy.

The question we confront is, How do we ensure that manufacturing in the United States is robust, dynamic and ready to meet the needs of our economy and our workers? Consider this finding from the Manufacturers Alliance: Manufacturing employment can grow by more than 300,000 jobs every year, and the economy can grow by an additional $1.5 trillion. So what do we need to do to achieve this goal? It all comes down to a focus on three specific areas: products, people and policy.

The scope of policies that impact manufacturingand the people who work in manufacturingis incredibly broad and incredibly impactful. While there are many reasons to be optimistic about the future of American manufacturing, government overreach poses the single biggest threat. One entire industryenergyis at risk of suffocation by regulation. It seems like all we hear from this Administration and its allies in Congress is that they want to put a stop to the use of oil, gas and coal, when the focus should be on developing and maintaining secure and affordable energy.

Its a long list. But lets be clearfor America to maintain our mantle of economic leadership, we need policies at the federal level that help manufacturers seize the opportunities before us, not policies that hold us back.

The NAMs A Growth Agenda: Four Goals for a Manufacturing Resurgence in America sets a roadmap for economic growth and enhanced competitiveness for manufacturers. This plan is a benchmark for policymakers and a proven, achievable list of goals that will get the U.S. economy moving again.

For more information, visit www.nam.org

MW Industries, a leading provider of highly engineered springs, specialty fasteners, machined parts, and other precision components, announced on February 19, 2014 the acquisition of Futuristics Components, a manufacturer of precision turned components for the microwave, electronics, defense, aerospace and related industries.

Founded in 1988 and headquartered in Waterbury, Conn., Futuristics products include fasteners, washers, timing devices, switches, and fittings. Its expertise is in miniature machined products requiring precision and extremely tight tolerances. The company will be integrated into MWs RAF Electronic Hardware Division, located in nearby Seymour, Conn.

Bill Marcum, CEO of MW Industries, said, Futuristics has built a solid reputation over the past 25-plus years as a niche manufacturer of precision machined components serving a number of key industries. The companys products and work force are highly complementary to our existing facilities, and as part of the MW family of companies, we believe that Futuristics is better positioned to penetrate new markets, including the medical, electronics, communications, aerospace and avionics sectors.

MW has completed a number of acquisitions to strengthen its product offerings and customer base and is currently evaluating a strong pipeline of transactions.

Diamond Wire Spring Company, a manufacturer of stock and precision custom springs, has announced that its main manufacturing plant located in Pittsburgh, Pa. has achieved the ISO 9001-2008 certification. The Pittsburgh

Global Highlights

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click access to stainless steel news and information; A glossary of metal terms; Links to metal industry resources, along with descriptive comments and evaluations of these sites; A general overview of stainless spring wire; and a general overview of carbon spring wire.

All of the above can be accessed by logging onto the INDUSTRIES SERVED section of the website and clicking on SPRING MANUFACTURERS.

Interested individuals may sign up for the "Gibbs Wire" newsletter via the link on the homepage of the website.

The Wire Association International (WAI), Inc. has appointed William (Bill) Avise as the 60th president for a one-year term that began on January 1, 2014. Avise will also serve as chairman of the Board of Directors for the 84-year-old association, which is headquartered in Guilford, Conn.

Avise has been at the forefront of an ongoing association-wide initiative to increase WAI membership, which has resulted in hundreds of new members representing both industry manufacturers and suppliers. Being a member of the WAI is one of the best ways to support our industry. With the new website and more webinars having an operations focus, the value of being a WAI member has improved significantly. In addition to WAI members

plant now joins the companys Taylors, S.C. plant as ISO 9001-2008 certified facilities.

The companys management system was assessed and certified by NQA USA Registrars, a full service certification body accredited by ANAB.

Achieving ISO 9001-2008 certification is a testament to the hard work and dedication of all of our employees, said Donald Fazio, president of Diamond Wire Spring Company. Attaining this certification speaks to our continuous efforts to increase internal process disciplines, provide first class customer service and make certain Diamond Wire Spring products remain synonymous with quality.

Gibbs Wire and Steel Company, Inc. has launched an enhanced website at either www.gibbswire.com or www.gibbsmetals.com.

Gibbs incorporates a network of metal service centers, strategically located throughout the U.S., Mexico and Canada, and is ISO 9001:2008 certified. The new website additions allow metals buyers at spring manufacturing companies to quickly access all that Gibbs has to offer the springmaking industry on one page that is specifically tailored to address their needs.

New website features include: Links to the spring manufacturers associations in the U.S. and Europe; One-

Global Highlights

STRETCHYOUROPTIONS

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having access to thousands of technical/operations papers, the networking opportunities with other wire industry peers are invaluable, said Avise.

A WAI member since 1993, Av ise ha s been actively involved in the organizations leadership through his participation on the executive committee; as a member, and later

supervisor and progressively worked up to the position of operations manager. In 1988 he accepted the position of plant manager with Leggett & Platt at the Merit Steel facility in Kouts, Ind. Following a promotion to vice president of operations, he relocated to Carthage, Mo., and became president of the Wire Group in 2009.

International

co-chair, of the conference programming committee; and as executive committee liaison to both the paper awards and member relations committees.

He has also contributed to the American Wire Producers Association (AWPA) since 1994, serving as the organizations operations committee chairman from 1999 to 2004.

Avise currently holds the position of president of the Wire Group and vice president of Leggett & Platt. His career in the wire industry started in August 1970 at Union Wire Rope (Armco) in Kansas City, Mo. From 1970 to 1975, he worked as a wire drawer while attending college at Central Missouri State University. After graduating with a B.S. degree in business in 1975, he became a shift

Airedale Springs in Haworth, England has appointed Steve Hart to the board following his promotion from technical manager to production director.

Hart, from Keighley, jo i ned t he compa ny a s a n o p e r a t i v e i n December 1993, a nd quickly demonst rated his technical abilities, becoming an auto setter in t he spr ingma k ing

department, and moving up rapidly through the ranks during his 20-plus years with the firm.

Harts career virtually mirrors that of his late father John, who also worked for Airedale Springs, who started at the bottom and worked his way up to become technical director.

Hart played a key technical role in Airedale Springs move in 2012 to its newly built 3.5 million factory and office premises off Bridgehouse Lane, The Spring Works, which replaced the firms former Ebor Mills factory in Haworth when it was destroyed by fire in 2010.

Airedale Springs chairman Tim Parkinson said: Steve has been right at the forefront of the new machinery and technology we have introduced into the business. He is held in high regard by colleagues and customers alike for his expertise. He is integral to the success of the business and will continue to be a great asset as we look to develop our manufacturing range even further in the future.

Hart is married to Claire, who he first met at Airedale Springs when she worked in the production planning department. The couple have a four-year-old daughter, Emmy. Outside work, Hart enjoys all things relating to electronics.

Airedale Springs was last year runner-up in the Environmental Efficiency category of the EEF Future Manufacturing Awards, and picked up the environmentally friendly business of the year award at the Keighley Business Awards. Both awards recognized the firms commitment to design and construct an energy-efficient building.

Bill Avise

Steve Hart

Global Highlights


WCSMA Schedules Spring Fling for May in San Diego

NESMA Featured in Newspaper Article

T h e W e s t C o a s t S p r i n g Manufacturers Association (WCSMA) will hold its annual Spring Fling at the Crowne Plaza San Diego Mission Valley. The event is scheduled for the weekend of May 16-18. A golf outing

T h e N e w E n g l a n d Spring and Metalstamping Association (NESMA) was featured in an article, Its time to spring into action and t ra in more sk il led workers, that appeared in the March 10 edition of the New Britain Herald/The Bristol Press.

Under the Focus on Manufacturing section of the paper, the article ta lked about N ESMAs work in conjunction with the Central Connecticut Chambers of Commerce to help promote the need to t r a i n mor e sk i l led workers for manufacturing jobs, particularly in the spring and metal stamping industry that dominates the landscape in the greater Bristol area.

The a r t ic le expla ined t he cooperat ive ef for t between the groups to work with educational and commercial industrial partners to develop multiple curricula leading to certification and employment in manufacturing and the trades.

Jim Albert, president and CEO of the Central Connecticut Chambers of

Commerce, was extensively quoted in the article along with Cindy Scoville, the vice president of membership and sales for the group. Scoville also serves as secretary/treasurer for NESMA.

Albert expects the efforts between the groups to develop curricula will culminate in a pilot program beginning later this year.

To read the complete article, visit the NESMA website at www.nesma-usa.com and look under the Media tab.

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/Scott Hirko

Regional Spring Association Report

will also will be held at the adjacent Riverwalk Golf Course.

For more details on this and other events, visit the WCSMA Facebook page or www.wcsma.us.


CASMI Speaker Looks at Marketing IdeasThe Chicago Association of Spring

Manufacturers (CASMI) held its March meeting at Manzos Banquets in Des Plaines, Ill., which included a presentation by Jeff Rappaport, CEO of Outlook Marketing Services.

Rappaport shared from his more than 25 years of experience in the development and implementation of successful marketing programs. Outlook client work includes: GE, Koch Industries, Ryerson, Baxter, Ca rd i na l Hea lt h, CDW, Aver y Dennison, Fujitsu, Transplace, and Molex.

Th e f o c u s o f R app a p o r t s presentation to CASMI members was on how their manufacturing companies could deliver targeted messages that will positively impact their business. He specifically focused on ideas for differentiating their message from competitors.

R appapor t sa id t he key to differentiation was having the right message for the right audience. He said many times companies are missing the mark because their messaging is not tied to customer value and customer connection.

Rappaport walked through an exercise Outlook Marketing Services uses with clients to create a new message that connects with their customers. He included seven donts of messaging.1. Not speaking to customers

values.2. Relying too heavily on buzzwords.3. Failing to make a message

portable.4. Forgetting to excite.5. Messaging by committee.6. Failure to test/validate prior to

message use.7. Not looking at the competitive

landscape.

A ta rgeted message d r ives companies to differentiate themselves in the market and build stakeholder value, said Rappaport.

CASMI planned an April plant tour to Tri Star Metals in Freeport, Ill.

The associations next event is its annual golf outing and dinner, which will be held on Wednesday, June 4 at Indian Lakes in Bloomingdale, Ill.

For more information, visit www.casmi-springworld.org.

Regional Association Report


Jim Wood is an independent regulations compliance consultant to the Spring Manufac-turers Institute (SMI). A certified instructor of the OSHA Out-Reach Program, Wood conducts seminars, plant Safety Audits and In-House Safety Trainings. These programs help com-panies create safer work environments, limit OSHA/Canadian Ministry of Labor violations and insurance costs, and prepare for VPP or SHARP certification. He is also available for safety advice and information by phone at 630-495-8588 or via e-mail at [email protected].

OSHA Record Keeping for Power PressesBy Jim Wood

Be Aware Safety Tips

Although there have always been OSHA standards covering the inspect ion, maintenance and modification of power presses (punch presses), they have not really been clarified. OSHA has now outlined the inspection and recordkeeping requirements on these machines. Below I have inserted the new changes which took affect on February 18, 2014.

EFFECTIVE DATE NOTE: This change becomes effective February 18, 2014.

(e) Inspection, maintenance, and modification of presses--(1) Inspection and maintenance records. The employer shall establish and follow an inspection program having a general component and a directed component.

(e)(1)(i) Under the general component of the inspection program, the employer shall:

(e)(1)(i)(A) Conduct periodic and regular inspections of each power press to ensure that all of its parts, auxiliary equipment, and safeguards, including the clutch/brake mechanism, antirepeat feature, and single-stroke mechanism, are in a safe operating condition and adjustment;

(e)(1)(i)(B) Perform and complete necessary maintenance or repair, or both, before operating the press; and

(e)(1)(i)(C) Maintain a certification record of each inspection, and each maintenance and repair task performed, under the general component of the inspection program that includes the date of the inspection, maintenance, or repair work, the signature of the person who performed the inspection, maintenance, or repair work, and the serial number, or other identifier, of the power press inspected, maintained, and repaired.

(e)(1)(ii) Under the directed component of the inspection program, the employer shall:

(e)(1)(ii)(A) Inspect and test each press on a regular basis at least once a week to determine the condition

of the clutch/brake mechanism, antirepeat feature, and single-stroke mechanism;

(e)(1)(i i)(B) Per form and complete necessa ry maintenance or repair, or both, on the clutch/brake mechanism, antirepeat feature, and single-stroke mechanism before operating the press; and

(e)(1)(ii)(C) Maintain a certification record of each maintenance task performed under the directed component of the inspection program that includes the date of the maintenance task, the signature of the person who performed the maintenance task, and the serial number, or other identifier, of the power press maintained.

Note to paragraph (e)(1)(ii): Inspections of clutch/brake mechanism, antirepeat feature, and single stroke mechanism under the directed component of the inspection program are exempt from requirements to maintain certification records specified by paragraph (e)(1)(i)(C) of this section, but inspections of the clutch/brake mechanism, antirepeat, and single stroke mechanism conducted under the general component of the inspection program are not exempt from this requirement.

(e)(1)(iii) Paragraph (e)(1)(ii) of this section does not apply to presses that comply with paragraphs (b)(13) and (14) of this section.

(b)(13) Control reliability. When required by paragraph (c)(5) of this section, the control system shall be


constructed so that a failure within the system does not prevent the normal stopping action from being applied to the press when required, but does prevent initiation of a successive stroke until the failure is corrected. The failure shall be detectable by a simple test, or indicated by the control system. This requirement does not apply to those elements of the control system which have no effect on the protection against point of operation injuries.

(b)(14) Brake system monitoring. When required by paragraph (c)(5) of this section, the brake monitor shall meet the following requirements:

(b)(14)(i) Be so constructed as to automatically prevent the activation of a successive stroke if the stopping time or braking distance deteriorates to a point where the safety distance being utilized does not meet the requirements set forth in paragraph (c)(3)(iii)(e) or (c)(3)(vii)(c) of this section. The brake monitor used with the Type B gate or movable barrier device shall be installed in a manner to detect slide top-stop overrun beyond the normal limit reasonably established by the employer.

(b)(14)(ii) Be installed on a press such that it indicates when the performance of the braking system has

deteriorated to the extent described in paragraph (b)(14)(i) of this section; and

(b)(14)(iii) Be constructed and installed in a manner to monitor brake system performance on each stroke.

Jims Regulatory Tip: As of May 25, 2012, the Hazard Communication

standard was replaced by the Globally Harmonized System (GHS) standard. By December 1, 2013, all employees had to be trained in the elements of the new chemical identification labels and the Safety Data Sheet (SDS) format. To obtain training handouts, go to osha.gov, search for Quick Cards, click on Hazard Communication pictogram and safety data sheet quick card. Make hand out copies for all employees, explaining the changes in the Hazard Communication program. To view the new GHS program, click on osha.gov, search for GHS.

50 McDermott Rd. North Haven, CT 06473unitedwirecompany.com 800.840.9481

Stainless Steels, Nickel Bases,Copper Bases, Carbon Steels,and Aluminum


IST Spring Technology

Margaret OMalley is the membership services manager at the Institute of Spring Technology (IST) in Sheffield, England. She is the main contact point for the Technical Advi-sory Helpline provided by IST to members and customers alike, and is the IST representative on a number of Specification Committees. Readers are encouraged to contact IST with comments about this cautionary tale, and with subjects that they would like to be addressed in future tales at [email protected]

Nickel Alloy Springs in Contact with Molten MetalsBy Margaret O'Malley

It is a widely known fact that certain spring materials come into contact with low melting point molten metals during the course of their manufacture. Molten lead is the medium of choice for the patenting operation of the higher carbon music wire grades, and most pre-galvanized wire is produced by passing the wire through a molten zinc bath.

However, there will be instances where contact between a spring material and a low melting point molten metal can have dire consequences. Liquid metal embrittlement is one such widely known phenomenon that results in the loss of ductility in normally ductile metals. The disastrous explosion at the Flixborough chemical plant in the U.K. in 1975 which killed 28 people was attributed to liquid metal embrittlement of a stainless steel pipe in contact with molten zinc.

This happened because molten aluminum will dissolve any iron-chromium, nickel-chromium-iron and nickel-chromium alloys. It will even dissolve the cobalt base alloys. As one material supplier has stated, who has come across this problem in the past, molten aluminum goes through these materials like hot water through snow!

Another low melting point metal that can cause difficulties with the nickel alloys is copper (and copper alloys) this penetrates the grain boundaries, weakening them and resulting in intergranular failure.

Good process control of the heat treatment process should include a check to ensure that all traces of low melting point metals are removed from assemblies/fixtures, etc.

Molten aluminum will dissolve any iron-chromium, nickel-chromium-iron and nickel-chromium alloys. It will even dissolve the cobalt base alloys.

But liquid metal embrittlement is not the only problem that may occur, as one IST member recently discovered. What may be more surprising to learn is that the problem occurred with a nickel alloy grade a material that has a melting point in excess of 2535F (1390C), much higher than that for the low melting point metals. The springs in question were being given the standard heat treatment that the springmaker had used many times before, but in this particular instance, some traces of aluminum foil had been left in the steel heat treatment baskets. When the springs were removed from the heat treatment oven, they were found to have areas where the metal appeared to have melted, even though the nickel alloy should have been in a solid statement throughout the heat treatment.

iStockphoto.com/tpnagasima

Springmakers Connect with the Electrical IndustryBy Gary McCoy, Managing Editor


echo3005/Shutterstock


ppreciation for electricity goes up exponentially when a storm hits and power to your home or business is unlikely to be restored for days.

Like products that are made for other niche industries that springmakers serve, electrical components are mission-critical items that must be manufactured precisely to standard so electrical connections work.

Describing his companys business in the electrical industry, Reb Banas, president of Stanley Spring & Stamping in Chicago sums it up by saying, We connect whatever youre connecting.

Market SizeThere are many industries closely aligned with the

electrical business. For the purpose and scope of this article, we will not look at the electronics business, which includes automotive sensors, printed circuit boards and semiconductors.

Most of us take electricity for granted. You flip a switch and suddenly a dark room is illuminated. You put a piece of bread in the toaster and, minutes later, you have brown toast.

Defining the electrical business is not as simple as it might seem. Two primary reports from IBSWorld help put the market into perspective and describe the type of companies for which SMI springmakers make products.

The IBISWorld report, Wiring Device Manufacturing in the U.S., was published in April 2014. The research firm defines this segment as the industry that manufactures current-carrying wiring devices and non-current-carrying wiring devices for wiring electrical circuits. These include products such as outlet and switch electrical wiring boxes, electrical insulators, transmission pole and line hardware, electrical metallic tubes, switches, conductor connectors, electric sockets, plugs and electrical cords.

IBSWorld forecasts a small increase in annual growth, from 2.4 percent between 2009 and 2014 to 3.7 percent from 2014 to 2019. As noted in the papers executive summary, Accelerated building activity and increased spending on efficient, secure and safe electrical equipment are projected

A


to stimulate growth in domestic demand for wiring devices over the five years to 2019.

A similar industry is electrical equipment manufacturing. The March 2014 IBISWorld study Electrical Equipment Manufacturing in the U.S. looked at the size of the market, along with key external drivers, current performance, industry outlook and life cycle stage.

IBISWorld defines electrical equipment manufacturing as the sector that manufactures power, distribution and specialty transformers; electric motors, generators and motor-generator sets; switchgear and switchboard apparatus; relays; and industrial controls. Electrical equipment manufacturers sell their products to other manufacturing industries, wholesalers and the construction sector.

IBISWorld forecasts annual growth in the electrical equipment manufacturing sector over the next five years (2014-2019) at 4.4 percent.

Like most sectors of the economy, both wire device manufacturers and electrical equipment manufacturers were impacted by a slowdown in residential and commercial construction during The Great Recession from 2008 to 2010. A recent increase in demand is fueling hope that steady business will continue in this sector.

What Do Springmakers Make?Some 70 percent of Stanley Spring and Stamping products

go into electrical connectors and wall outlets. We essentially make all the guts behind wall mounted electrical connectors, said Banas. This includes commercial, residential and industrial applications.

One of Stanley Springs largest customers is Legrand, a world specialist in products and systems for electrical installations and information networks.

Most of the electrical-related products that Stanley Spring and Stamping makes, some 1,400 different parts, are

Product and Services Segmentation (2014)

Electrical Equipment Manufacturing

Wiring Device Manufacturing

15.2% Transformers

29.7% Motors and generators

27.2% Relays and industrial controls

27.9% Switches

13.9% Electric conduit and conduit fittings22.5% Wire connectors for electrical circuitry14.0% Pole line and transmission hardware18.5% Switches for electrical circuitry14.7% Current-carrying wiring devices and supplies16.4% Other non-current carrying wiring device and supplies

Source: IBISWorld.com


completed using progressive dies utilizing up to eight different types of brass.

Banas says production runs could be five pieces to 10 million. Its a wide gamut.

An example of one of the products they make for Legrand is a hospital-grade USB charger with tamper-resistant 20A duplex receptacles.

All of Stanley Spring & Stampings electrical products are made in Chicago, and some are nickel-plated or galvanized. Everything has to be free and clear of oil and debris, explained Banas.

We have a 53-foot semi that travels to Mexico once a week loaded with 40,000 pounds of widgets, said Banas. Everything we make here (Chicago) is assembled in Mexico.

One of the precision stampings that the company makes for the electrical industry is a strap subassembly. It is formed utilizing a high speed 150 ton punch press. Composed of mild steel and brass, the finished strap features dimensions of 4.5" in length, 1.5" in width, and 1" in height.

Strap subassemblies then have nickel plating applied before shipment to the customer's facility in Mexico.

Richard Rubenstein, president of Plymouth Spring in Bristol, Conn., said the electrical parts they manufacture are primarily made out of copper and are produced using fourslide machines. A smaller percentage of Plymouth Spring products for electrical are wireforms and springs.

Our parts are used as components in electrical switching equipment for a number of customers, which are large multinational companies, explained Rubenstein.

Rubenstein says the business they have earned in the electrical industry goes back many years and are all about

Accelerated building activity and increased spending on efficient, secure and safe electrical equipment are projected to stimulate growth in domestic demand for wiring devices over the five years to 2019.

relationships that have been built. They keep us on our toes all the time and modifications are required at times, explained Rubenstein.

Certainly quality is a key component and we have to be competitive, said Rubenstein. He said these are the normal things required of any customer.

He said customers have a wide variety of requirements. Some require assembly, some require machining and there are all types of finishing requirements on different parts, everything from silver plating to exotic hardening and heat treating.

Rubenstein describes Plymouth Springs electrical customers as first class and at the top of the business. He adds, Although very demanding and very exacting, they are very good to deal with.

Jim Richards, vice president of sales and marketing for Bristol, Conn.-based Fourslide Spring and Stamping, says a lot of the parts they make are used in electrical and electronic applications.

We dont do anything specifically for the electrical industry, explained Richards. We make things for virtually all industries.

He says most segments of the economy are utilizing contacts and connectors for powered devices, whether are they are operated using A/C current or are battery operated.

The kinds of electrical components we make are used in virtually every sector, said Richards. They are used in medical, consumer goods, and power generation; you name it, theyre out there.

Though they do a li t t le bit of this work on power presses, Richards acknowledges that fourslide is our core


competency. Fourslide Spring and Stamping does have one customer for whom they have an assembly operation.

Electrical components in general are usually made with a lot of red metals; brass, phosphor bronze, beryllium copper, and copper, said Richards. He said they try to avoid secondary operations as much as possible.

The best bang for the buck is for the part to be complete when it comes off the machine, explained Richards. Of the secondary operations they perform, Richards said tapping and minor assembly work are the most popular.

What is Required?Most manufactured electrical parts made by springmakers

go into devices approved by Underwriters Lab (U.L.) Generally speaking, springmakers do not hold the certification by U.L. because that belongs to the OEM customer. Rather the parts they make must conform to U.L. standards for safety.

Richards says Fourslide Spring and Stamping has one part they make that requires assembly, so being U.L. certified for that operation is required and the company is audited on a quarterly basis.

Banas says most of the parts made by Stanley Spring & Stamping are approved by U.L. for safety. He says special zoning requirements present more of a challenge.

The city of Chicago has special nickel plated hospital grade strap, but it only goes into hospitals in Cook County, explained Banas. Yet if you are in Detroit or Dallas you can use something else.

Banas says special building codes and requirements are placed upon the OEM in terms of how they sell and market their products.

You are always trying to remove material or increase conductivity without sacrificing the quality of the product, said Banas. You have a lot of stuff from Asia thats made with thinner materials for baseline safety requirements or building code requirements, whereas the stuff we are supplying is a little bit more substantial for construction and industrial applications.

A Changing Customer BaseElectrical industry customers, like other industries that SMI

members serve, have become much more demanding. Some customers want smaller shipments, more

frequently, explained Rubenstein, while other customers are consolidating their shipments.

He said requirements are changing all the time and springmakers must be ready to adjust.

Unless it is a special order item, Banas says retail, industrial and commercial customers are guaranteed in-stock products by the companies he makes parts for.

We are quick to respond within five to 10 days to meet the requirements they have, said Banas. So we build ahead as much as possible. If you have a natural disaster, like a flood that wipes out places, they usually gobble up whatever inventory youve built up.

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Overall Banas says todays customers have shortened lead times and are always looking for lower prices. You have to be nimble on your feet, quick to react and quick to move.

Richards has observed a significant change with most Fourslide Spring & Stamping customers, not just in the electrical market, of a shortened life cycle for their products.

Whereas many years ago it might not be unusual to make a certain number of parts for 25 to 30 years, explained Richards, that would be more the exception than the rule now, because product lifecycles are a good deal shorter.

As an example, Richards pointed out a customer that use to make Zip drives. Well, how long did that last? So the more technology based the industry is, the shorter the lifecycles are going to be.

Richards says 30 years ago when Fourslide Spring & Stamping compiled its list of top 50 customers, it looked like a carbon copy year after year after year.

Today, not only are customers doing more new parts because of this shortened lifecycle, we also see more new customers for the very same reasons, said Richards.

He says over the past 10 years Fourslide Spring & Stamping has seen quite a turnover in that top 50. I dont necessarily think our experience is unusual in that respect.

We do an awful lot of new tools; and to a large extent you have to do a lot of that replenishing of new business because of the attrition that is caused by the shortened lifecycles. Youre not having customers leave you, you are having parts die.

Richards believes if companies are not getting new customers and new work, they are ultimately losing ground.

More new parts and new customers are essential today just to keep your nose above water. I dont know if that was the case 30 years ago.

Reshoring ContinuesRubenstein agrees that new parts are being developed.Seven or 8 years ago everything was going to China,

said Rubenstein. Today parts are coming back.Rubenstein says a number of Plymouth Spring

customers are reshoring parts to North America.Although I wont say its a flood, it is certainly more

than a trickle, explained Rubenstein of the trend. More importantly, parts are no longer automatically going to China. Five or six years ago they were all automatically going.

Rubenstein cites two reasons why parts are being reshored. 1) Transportation costs have risen enormously. 2) In copper based parts, copper costs the same no matter

where you buy it: in China, the United States or Mexico. With no commodity price advantage, Rubenstein

says if copper represents a fairly significant part of your purchase cost, and freight is a factor (and copper is heavy) it may well pay to reduce your transportation costs significantly and buy domestically. In other words you cant buy copper at 20 percent off in China. They pay the exact same price for copper that we pay.

Banas says a steadier worldwide price for copper over the past year and a half has helped his electrical parts business.

Prior to that, copper could fluctuate 25 to 30 percent within a year. So you were having to constantly reprice your product and sell it whether the cost was up or down.

Becoming An Electrical SupplierThose in the business of making parts for the electrical

industry cite long term relationships to their success in the business.

With the high entry cost of entering the business, mainly due to tooling costs, many say it would be difficult for new springmakers to enter the business.

Its expensive for someone to retool, said Rubenstein. In the few cases where people have moved tooling to

us, weve had to adapt that tooling at some expenseeither to us or the customer. So its difficult to do.

While most of us take electricity for granted, springmakers who produce products for this market segment do not.

Rubenstein says, If you have a good customer, you work very hard to keep them.

By George C. Underwood

T


(Editor's note: In this edition of Flashback, we reprint the President's Message from the late George C. Underwood that appeared in the May 1981 issue of Springs. Underwood served as SMI president from 1979 to 1981 and was president of Hardware Products Company. His tie to SMI's newest president, Hap Porter, is very strong. In 1987 Underwood hired Porter to work at Hardware Products.)

Talking with fellow springmakers I have been repeatedly made aware of the fact that while we are united in common goals, we remain a diverse, highly individualized group of competitors. And we like it that way. All of us are concerned with inflation, government regulation, shrinking markets, worldwide competition, unions, productivity, and quality controls. We monitor the automotive and metals industries with keen interest.

Automation has entered our offices. We are working to keep pace with a constantly changing economic scene and to remain viable in the marketplace efforts shared by all SMI members, and, indeed, by businessmen throughout the nation.

And yet, even with such strong mutual bonds, we remain keen competitors. We each strive to establish a unique identity for our firmsomething to set us apart from the rest. We may establish a reputation in any one of a number of ways: through the specialized use of a particular material, through top-notch engineering capability; or perhaps by offering an unusually broad product line.

The success of a spring firm is often based not only on the springs produced, but on a factor unique to that company. Individuality is highly prized in this industry.

By being managers who are close to our people and can bring out their best ideas for our businesses, we can continue to compete effectively against international competition which will continue to increase in the future.

Flashback

Presidents Message


Quality circle programs* are not really new to our companies, but they are becoming more publicized and are something that we should encourage to get the best possible suggestions and help improve the efficiency of our firms. We will do well to communicate with our employees, to seek their input, and to remain accessible in good times and bad.

For the first time in years our nation seems truly receptive to the idea of improved productivity, the creation of jobs, and investment in plant equipment. If we, as spring manufacturing managers, can encourage this attitude among our work force, it will help not only us but the country as a whole.

Springmakers across the country can cite important manufacturing innovations and adaptations made by inventive employees who cared about the work and the product. Let's bring out this attitude in our workers who are each different, unique and special. Some

of our toughest foreign competitors are excellent imitators, but here in the United States we still have great originators.

* Editors note: The quality circle concept was popular at the time Underwoods article was written in 1981. According to Wikipedia a

quality circle is a volunteer group composed of workers (or even students), who do the same or similar work, usually under the leadership of their own supervisor (or an elected team leader), who meet regularly in paid time who are trained to identify, analyze and solve work-related problems and present their solutions to management and where possible implement the solutions themselves in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management. Read more at http://en.wikipedia.org/wiki/Quality_circle

Springmakers across the country can cite important manufacturing innovations and adaptations made by inventive employees

who cared about the work and the product. Let's bring out this attitude in our workers

who are each different, unique and special.


Family Feud: How Buy-Sell Agreements Can Save the Family BusinessBy Phillip M. Perry

How many ways can a family business get into trouble? Maybe an infinite number, if the stories told by family business consultants are any guide.In a non-family business you have rational problems and

rational solutions, says Don Schwerzler, an Atlanta-based family business counselor. But in a family business you have rational problems and emotional solutions. Decisions are made not necessarily on whats best for the business but whats best for the family. That makes things difficult.

The resulting disruptions can be costly. Schwerzler offered three illustrative scenarios that recently crossed his desk: When one family member got a divorce, half of his stock

went to an ex-spouse with no business experience. To avoid a destructive addition to the management team the business had to buy out the ex-spouseat a significantly higher price than the stocks value.

Shareholder siblings had such major disagreements that the business could not move forward. As a result the business needed to be liquidated.

Three of four shareholder siblings wanted to borrow $500,000 to make business improvements. One shareholder balked at signing for the loan, so his stock had to be purchased by the other threeresulting in an expensive restructure of the strategic plan.

Save or Spend?Conflicts often arise over financial strategies that impact

individual pocketbooks. Very often there is a tension between savers and spenders in a family, says Schwerzler.

iStockphoto.com

/DrAfter123


That tension often forms the basis for disagreements on how the business should be run.

All such conflicts get bigger and scarier as the family gets larger. Once you have a sibling partnership, things start getting complex, says Schwerzler. And a consortium of cousins gets very complex.

Domestic battles often escalate and end up destroying the enterprise. Little wonder the family business survival rate could bear some improvement. Statistics show that about 30 percent of family businesses make it to the second generation, says Schwerzler. Twelve percent make it to the third generation, and only three to four percent to the fourth.

Be PreparedHow can your own family business stay out of

troubleor at least minimize the damage when a disruptive event occurs? Consultants recommend drawing up what is called a buy-sell agreement. Also referred to as a buyout agreement, this document governs any situation that results from the death or departure of one of the organizations stockholders.

Among the questions answered by the buy-sell agreement are these: What events will trigger a stock buyout? Who has the right to purchase the stock of a

departing owner? How will the stock be valued? What mechanism will be used to resolve disputes

between family members? Trying to answer such questions when a disruptive

event hits is a recipe for disaster. The fraught emotions characteristic of such times can play a destructive role. If you are trying to hammer out a buy-sell agreement while there is turmoil in relationships, you are working in a context which is not ideal, says Kimberly M. Hanlon, a Minneapolis-based attorney active in business and estate planning matters.

The challenge is especially acute for a business undergoing diminished profitabilitythe very condition that can often catalyze family members to cash out. When a business starts to go downhill family relationships often go downhill too, says Hanlon. People start blaming each other and it all goes south.

The moral is clear: Smart family businesses plan ahead. Think about the terms of a buy-sell agreement while relationships are still good among family members, says Hanlon. People who are level headed and thinking clearly tend to come up with fair and reasonable terms.

Terms of EndearmentMaybe you already have a buy-sell agreement in place

that you want to improve, or maybe you are ready to create one for the first time. In either case heres some help in the form of the most common questions such a document should answer:

Statistics show that about 30 percent of family businesses make it to the second generation, says Schwerzler. Twelve percent make it to the third generation, and only three to four percent to the fourth.

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1 Who has the right of first refusal on a departing owners stock? In other words, what entity has the right to purchase the shares of a family member who dies, or who just wants to cash out? The answer, depending on the advice of your accountant and attorney, might be the other family business owners or the business itself. The idea here is to keep those shares from falling into the hands of outsiders who might lack operating expertise or who might not have the best interests of your business at heart.

Your document should also address the disposition of a family members stock when that individual gets divorced. Commonly the business will have a call right on those shares. A call right is a provision that empowers remaining family members to buy out the shares. Again, the idea is to keep the stock out of the hands of an individual who might not help the business grow.

2 How will the value of stock be determined? When it comes time to buy out shares of a departing owner, some mutually agreeable method must be used to set a price on the shares. Will the valuation be done by a single CPA experienced in valuations? poses Hanlon. Or will each person hire a different CPA for independent valuations, with the final value somewhere between the high and low extremes?

Another approach is to specify a set share valuation formulasuch as a given multiple of earningsahead of time. This can be less than ideal, though, since business and market conditions at the time of an owners departure may be different from those at the time a buy-sell agreement is written.

3 How will the stock purchase be funded? You must also plan for the funding of a buyoutperhaps a line of credit that can be tapped for the money. Absent such a plan, the payments required to purchase the stock of a departing owner can be crippling. Your business may need to sell off some of its assets to raise cash, or borrow money which can have a negative impact on your line of credit.

This is a good spot to mention the value of life insurance as a source of funds to purchase the stock of a family member who dies. Valuable as it is, though, life insurance is not the final answer. The fact is that an owner can be incapacitated while still living. With todays modern medicine a person can have a stroke or a heart attack and continue to live, notes Schwerzler.

An owner who is incapacitated in that way can no longer function in the business. Yet there is no life insurance money to buy out the individuals stock at a time when large medical bills must be paid. How will the business deal with that? poses Schwerzler. How will that exit from the business be exercised? The wise family business will plan for alternative funding sources.

Buy-sell agreements can help resolve disrup-tive family business events that might otherwise erode the bottom line or even scuttle the enter-prise. Because they deal with the uncomfortable nexus of personal and business goals, buy-sell agreements are difficult to write well. You may want to obtain the assistance of a skilled consul-tant specializing in the field.

The very best way to find a consultant is through referrals, says Kimberly M. Hanlon, a Minneapolis-based attorney active in business and estate planning matters. Ask other business own-ers who they use, and if their consultants have been doing a good job.

Select a consultant who has a lot of real-world experience creating buy-sell agreements for family businesses. You want someone who has expe-riential learning, says Hanlon. Reading about the topic is not the same as experiencing the out-comes of different scenarios.

Bear in mind, too, that you will be sharing a lot of personal, intimate family information with your advisor.

When creating a buy-sell agreement, the jour-ney is often more important than the destination, says Don Schwerzler, an Atlanta-based family business counselor. That journey involves heart-to-heart chats with family members. When you start talking with family members you start uncov-ering potential problems. Its important that all of the family relationships are understood before you write the buy-sell agreement so you dont kill the goose that lays the golden egg.

Successful counselors, then, are multi-talented, with an understanding of human as well as finan-cial dynamics. The alternative is disjointed advice.

A family business may have a CPA who is good at tax work but not so understanding of family re-lationships, says Schwerzler. So the owners end up going to a family therapist who may be good at the warm fuzzy stuff of human enterprise but may not understand the profit motive of a business. As a result the family gets conflicting advice.

Get Some Help

iStockphoto.com

/DrAfter123


Resolve DisputesTry as you might to avoid them, domestic squabbles are

bound to occur. As an adjunct to your buy-sell agreement, write up a procedure that will be used to resolve disputes between family business owners. For some situations, arbitration or mediation may be the best course of action. Alternatively, you may designate a board of nonfamily trustees who are empowered to cast the deciding votes on issues over which family members disagree.

Disputes often arise from the conflicting interests of siblings or other family members inside and outside the business. I tell my clients not to have siblings or family members outside the business co-own the business with

I tell my clients not to have siblings or family members outside the business co-own the business with family members who run it. It never works. You have tied them together financially, but they and their families have different goals, which inevitably breeds conflicts.

family members who run it, says John J. Scroggin, partner in Atlanta-based Scroggin & Company, a law firm active in business and estate planning. It never works. You have tied them together financially, but they and their families have different goals, which inevitably breeds conflicts.

In a typical situation, says Scroggin, a family member inside the business is working 24/7 and resents the fact that a substantial part of the equity value he or she is building is going to other family members. Meanwhile, the outside siblings are upset because the family member operating the business is getting a "significant" salary and doesn't value the opinions of the non-working family owners.

Solution? I suggest giving the non-business family members other assets, says Scroggin. Or set up a mechanism that gives them an income stream that is not connected to the family business.

As the above comments suggest, varied skills are required to iron out family business wrinkles. Dont try to write a buy-sell agreement without the assistance of experts, including your attorney and accountant. You may also want to utilize the services of a consultant who specializes in family business (See sidebar, Get Some Help, on page 31).

Revisit the DocumentWith the passage of years personal and business goals

change. Your buy-sell agreement needs to change with the times. Dont just create your buy-sell agreement and stick it in a drawer, says Schwerzler. Have a CPA or tax attorney review the document every two or three years. Modifications will need to reflect changes in family relationships and in tax laws.

Above all, avoid a temptation to procrastinate. At small- and medium-sized businesses, creating a structure for transition is often shunted aside for lack of time, says Schwerzler. That can be fatal for the future of the enterprise.

Any family business should have a transition plan in placeand a buy-sell agreement is an important part of that plan.

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A committee of international springmakers met in Berlin last year for the purpose of planning the first International Conference on Spring Technologies (ICST). The committee met on September 19, the day prior to the start of 7th annual European Spring Federation (ESF) Congress.

SMI was represented at the meeting by its president Steve Moreland, who is president and CEO of Automatic Spring Products Corporation in Grand Haven, Mich. Moreland also participated in the ESF Congress as a guest speaker.

The committee has announced that the inaugural ICST will be held in Tokyo on November 17, 2015.

Under a proposal put forth by the Japan Society of Spring Engineers (JSSE), the first International Committee for the International Conference on Spring Technologies was convened in Berlin. The meeting was held in conjunction with the Seventh ESF International Spring Congress.

In addition to Moreland, who represented the United States, committee members included: Takashi Goto (Japan), director of Chuo Spring; Dr. Chul-Rok Lim (Korea), director of Daewon Kang Up; and Wolfgang Hermann (Germany), managing Director of VDFI. Observers who attended the meeting were: Kanji Inoue, executive director of JSMA; Dr. Yoshihiro Watanabe, president of Toyoseiko; and Kim KiJeon, president of Daewon Europe.

Professor Wang Decheng, vice president of China Academy of Machinery Science and Technology and Adrian May, president of IST, are also the members of the committee but were unable to attend.

International Spring Conference Planned for Tokyo in 2015

SMI President Steve Moreland addressed the 7th annual European Spring Federation (ESF) Congress in Berlin on September 20, 2013.

iStockphoto.com

/philpell


In addition to coming up with the name, date and location for the first event, the committee decided that ICST should be held every four years. The second conference is scheduled for Europe in 2019, the third in Asia (probably China) in 2023, and the fourth in the U.S. in 2027.

The ICST will be accepting papers to be presented at the event. Abstracts for ICST will be due on May 16, 2015 and a first draft will be due on June 30, 2015. The final draft of all papers will be due on September 30, 2015.

Organizers say that engineers, researchers or anyone who is involved in spring or spring-related technologies from across the world would be expected to participate in the inaugural 2015 event.

As a member of this international committee I encourage our SMI members to save the date on their calendar," said Moreland.

Those gathered for the ESF Congress included (l-to-r): Prof. Dr. Haverkamp, Steve Moreland (SMI President), Dr. Rudolf Muhr (Mubea and ESF/VDFI, President), Wolfgang Hermann (VDFI), Prof. Dr. Vladimir Kobelev (Mubea), Horst-Dieter Dannert (ESF, Secretary), Dr. Peter Janen (Mittal), and Prof. Dr. Georgios Savaidis (Aristotle University of Thessaloniki).


Founded in 1924 by Frederick Christian Ulbrich (Fred Sr.), Ulbrich Stainless Steels & Special Metals, Inc. was a small metal scrap processing center in Wallingford, Conn. In 2014, Ulbrich is marking its 90th anniversary with 700 employees, and 11 locations around the world, including its headquarters in North Haven, Conn. Today, the company remains family-owned, led by its chairman of the board, Fred Ulbrich Jr., the son of its founder, Fred Sr., and grandson, Chris Ulbrich, chief executive officer (CEO).

Ulbrich serves stainless steel and special metal markets with strip, flat wire, shaped wire, foil and ultra-lite foil, and sheet product forms. It has evolved into a worldwide, high quality precision metals manufacturing and distribution network.

We have achieved this milestone as a result of the commitment, loyalty, knowledge and hard work of each

1920sEarly 1920sThe founder, a young Frederick Christian Ulbrich (Fred Sr.) worked as a salesman for U.S. Steel in Donora, Pa. and became aware of the steel industrys need for good quality scrap. With just a few dollars in his pocket, he returned to his hometown of Wallingford, Conn. and opened a scrap yard. For several years he dismantled old cars and farm machinery, selling the scrap to steel mills and auto parts to auto repair shops.

1924Fred Sr. founded the Fred Ulbrich company that would eventually become Ulbrich Stainless Steels & Special Metals, Inc.

1927 The first of many expansions by Ulbrich occurred when Fred Sr. doubled the square footage of his building from 600 to 1,200 sq. ft. To match his rapid building growth, Fred Sr. decided to

employee through the years, said CEO Chris Ulbrich. We also extend sincere appreciation to all customers who have supported Ulbrich with orders and feedback. Our dedicated customer base has always been key to the companys success.

When Fred Ulbrich Sr. founded Ulbrich in 1924, he could not have known that the company would endure through the Great Depression, diversify during two world wars, thrive during lunar exploration, and develop into an international business. Ulbrich supplies precision products at the international level for numerous critical applications in the medical, power generation, energy, automotive, aircraft, aerospace, petro chemical, oil and gas, industrial and consumer markets.

To celebrate its 90th year anniversary, Ulbrich is planning a series of commemorative events at all of its locations.

increase inventories to generate new customers. During the same period because of his keen interest in metals, he attended evening classes in metallurgy at Yale University.

1929During the Great Depression lasting 10 years, the demand for scrap declined, but the young Ulbrich made the best of it. Fred Sr. built another addition to the plant with the help of transients hopping off freight trains near the plant. He offered them hot meals and modest wages. Fred Sr. was devoted to getting his scrap yard in good shape. The little money he received was from an occasional scrap sale to the Ludlum Corporation and the unusual rental of his chicken coop to a local Wallingford business.

Ulbrich Marks a 90th Year Milestone

Ulbrich Timeline and Facts

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1930s1936 Ludlum Corporation merged with the Allegheny Corporation and Fred Sr. could no longer sell scrap directly to the merged company. It became obvious that he had to pursue a new venture.

1937The Wallingford and Meriden, Conn. area was the center of cutlery and flatware manufacturing. With his knowledge of stainless steel, Fred Sr., decided to manufacture a quality line of knives, forks and spoons. The items were inexpensive but the quality was excellent.

1939Germany invaded Poland signaling the start of World War II.

1940s1941Ulbrich receives a contract to supply stainless steel knives for the U.S. Army mess kit.

1942The Ulbrich Company fulfilled contracts with on-time delivery and rapidly earned a place ahead of its competition. In addition, Fred Sr. was able to convert metal to the proper specifications. Consequently, the company received additional contracts becoming a major supplier of knives during the war.

1944Fred Sr. became Warden of Wallingford, and one of his major accomplishments was paving the town roads with real asphalt.

1945Ulbrich sponsored 50 male concentration camp victims that were displaced in Europe, offering employment while the U.S. government worked to have their families join them a year later. Today Ulbrich still has workers who are related to these families employed at the company.

1946After the war, the company expanded its tableware business offering two different products. One was the continuation of the low-cost, diner-grade tableware and the other a high-end line of stainless steel carving knives with Elkhorn handles that were sold in the finest New York City department stores. Fred Sr. decided with his experience in military knives and cutlery, he would form a company that he called Victory Cutlery Company.

1949Ulbrich had grown to four times its original size with a 2,500 square foot building.

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1960s1960Nickel-based alloys were added to the product mix as Ulbrich made a bid for new applications in the aircraft and aerospace industry. Inventories included 20 stainless alloys and over 40 different special metals which combined into a constant inventory of more than 5 million pounds.

1963The company invested all of its profit into new laboratories and testing facilities in order to qualify as a supplier to Pratt & Whitney, located in Hartford. The approval opened up

1950s1950While the business thrived, Fred Sr. saw an even better opportunity to supply stainless steel for a growing market of stainless steel applications. He had both the knowledge and the rolling mill to fill an important niche. The big melt shops were supplying 10,000 minimum coils, far too much for many small manufacturers. Fred Sr. bought the big coils and slit them into smaller lots and supplied the needed smaller quantities, as little as 10 pounds, to these small manufacturers.

1955Rerolling and slitting was the main focus of the Ulbrich Companys enterprise. The cutlery business was sold and a powerful new Sendzimer rolling mill was purchased. The unique design of this mill enabled Ulbrich to roll to thicknesses unheard of at the time, down to .005 and at the same time they retained the desired flatness across the width of the strip.

1957The response from customers was so favorable that Ulbrich soon invested in two-high rolling mills to handle the demand and the first non-family employees were hired.

1959A new Sendzimer rolling mill was added and 12 new employees were hired. At this time Fred Sr.s oldest son, Frederick C. Ulbrich, Jr., joins the company and sets up a sales department, alleviating the firms dependence on the service centers that had been selling their products. In addition Fred Sr.s second son, Richard J. Ulbrich joined his father and brother in the business to focus on manufacturing and mill operations.

business from Boeing, North American Aviation, Rohr and other subcontractors. Ulbrich was selected as a supplier to the Air Forces B70 Bomber Project. This required the company to roll to as light as .001in thickness.

1964Fred Sr.s third son, Daniel Ulbrich, entered the business and Ulbrich decided to hire its own sales force instead of depending on independent sales representatives.

1965Ulbrich became an important metal supplier to the U.S. troops in Vietnam.

1968As customers began to respond to Ulbrichs quality and versatility in the 1960s, it became obvious that the Biggest Little Mill needed a national distribution network. Ulbrich of Illinois became Ulbrichs first stainless steel strip service center located in Alsip, Ill. and served the Midwest market.

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1970s1970Significant new equipment additions were made to improve quality and capability to roll to even thinner thicknesses. The company was renamed as Ulbrich Stainless Steels and Special Metals, Inc. with 60 employees working three shifts around the clock and over 50 alloys in the product line.

1971Neil Armstrong stepped out of the Apollo spacecraft, which was built using Ulbrich metal. The metal produced by Ulbrich helped make it possible to lift the 6,262,500 pound vehicle off the launch pad.

1974Ulbrich celebrated its 50th Anniversary.

1977Chris Ulbrich, Fred Jr.s son, joined the company full time after working part time, operating most of the machines in the plant.

1980s1980With Fred Jr. as CEO and his brother Dick as COO, the company set a target of expanding sales tenfold by 1990 and begin plans to reach that goal. They decided to reinvest all corporate profits into their capital expansion programs.

1982A 100,000 sq. ft. building was erected at the main plant in Wallingford. A regional service center, Ulbrich of New England, was created. After a series of strategic meetings, The Ulbrich Revolution was underway, and the company embarked on an employee-wide effort emphasizing quality and customer commitment.

1986Ulbrich opened Ulbrich of California, its fourth service center in Fresno, Calif., which would cover the Western and Southwestern markets.

1989Ulbrich now serves a broad market that includes makers of cars, trucks, aircraft, aerospace vehicles, medical instrumentation, implantable parts, petrochemical and power generation equipment and many others.

1990s1990Ulbrich announced a company-wide quality improvement initiative. All employees began attending regular quality control meetings with equipment operators, staff, and managers where they were trained on the following four tenets: Total Customer Responsiveness, Total Company Involvement, Total Quality Commitment, and Continuous Professional Development.

1994The quality improvement effort paid off as Ulbrich attained its ISO Quality Certification at the mill with all divisions following soon after.

1997Titanium became an important part of the Ulbrich product offering. Also, Ulbrich expanded its distribution network with a www.RadcliffWire.com860-583-1305

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facility called Ulbrinox in Queretaro, Mexico, and it purchased The Diversified Stainless Company with two locations in Toronto and Montreal, Canada.

1998A third generation Ulbrich takes the helm with the appointment of Fred Jr.s son, Chris Ulbrich, as president. The company reaches record sales.

1999Ulbrich marks its 75th anniversary with over 600 employees and facilities in four countries. The company was now buying over 140 different alloys from various melting sources all over the world to maintain its commitment for wide product choice and quick deliveries.

2000 to present2001Ulbrich acquires a flat wire division in South Carolina that they name Ulbrich Precision Flat Wire.

2002 Ulbrich opens a sales office in Shanghai, China and also opens Ulbrich Precision Metals, Ltd. in Galway, Ireland to produce and distribute fine wire to the medical market in the EU.

2005Ulbrich increases capacity to produce wire called PV Ribbon that is used in the production of solar panels. The Ulbrich Special Wire Group opens a PV Ribbon facility in Austria.

2006Ulbrich expands it Wallingford, Conn. rolling mill facility by 12,000 sq. ft. and enters into the Ultra Lite Foil business improving it thickness capability to less than .0004.

2007Ulbrich Asia Metals (a service center and trading company) opens in Hong Kong to provide Ulbrich products to Asia.

2011Ulbrich Solar Technologies prepares to open another manufacturing location for producing PV Ribbon in Hillsboro, Ore.

2012Ulbrich continues into the fourth family generation with 700 employees, and 11 locations. The company moves into a new corporate headquarters at 153 Washington Ave, North Haven, Conn.

2014Ulbrich celebrates its 90th anniversary with a series of commemorative events planned at all locations during th

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Springs 2014 Vol.53 No.2