american

www.amba.org
the

mold builder
Volume 24 No. 3

speak out
a message from our president
Mike Armbrust

IN THIS ISSUE:
Mold Builder of the Year
Chapter of the Year
“T
he American Mold Builders Association is dedicated to promoting
our member services and overall competitiveness in a world market,
through membership participation, for continuous improvement to
strengthen our industry and establish our value in a global economy.”
This is the mission statement of the AMBA. I am very excited and honored to assume
the role of president of this incredible Association. While I know I have some big shoes
to fill, I am excited to represent our one of a kind Association dedicated to U.S. mold
manufacturers. With all of the challenges we have been facing these last 10 years, this
organization, its staff, and its members have, in response, challenged themselves and
risen to the occasion. One of the big reasons for our success these last couple of years
has been the leadership of Steve Rotman (Ameritech Die & Mold, Inc., Mooresville,
NC). We owe Steve a tremendous thank you for his time and dedication to the AMBA.
Thank you Steve!

2010 Convention Summary The AMBA has an impressive board of directors. I am very proud to be associated with
this group. I’d like to take this opportunity to give our sincere thanks to two outgoing
directors; Scott Harris, (Harris Precision Mold, Tempe, AZ) and Donna Pursell
(Prestige Mold Inc., Rancho Cucamonga, CA) for their service and dedication to the
New Board Members/Officers AMBA and its mission. Both Scott and Donna have served our board successfully for a
long period of time and have both brought a degree of professionalism and perspective
that have served our Association proudly. We wish them both the very best!
AMBA News
Additionally, we are excited to announce two new directors. Michael Bohning
(Creative Blow Mold Tooling, Lee’s Summit, MO) and Andy Baker (Byrne Tool &
Die, Inc, Rockford, MI) have joined the AMBA board. We have had great success in
getting new directors involved and we continue to encourage our members (YOU) to get
involved at the local and national levels.
winter 2010

I am also excited to introduce your to the new Vice President of the AMBA, Todd Finley
(Commercial Tool & Die, Inc., Comstock Park, MI). Todd is a seasoned veteran of our
industry and has represented his company and U.S. mold manufactures successfully in
many areas of debate most recently through conversation and negotiations with the U.S.
Automotive Task Force. Todd has been, and will continue to be an excellent representative
of the AMBA.
spring

We have a busy year ahead of us! The board of directors has decided to dedicate its June
2010 board meeting to strategic planning for the Association. We feel that now is a good
time to sit down and evaluate our mission and make the necessary plans for guiding the
AMBA for many years to come.

(continued on Pg 8)
 “Progressive has brought us
innovations that
“No slide should beimprove
held the
performance of ”our tools.”
by anything else.
Steve Rotman—
President, Ameritech Die & Mold, Inc., Mooresville, North Carolina
Etiam dui orci — Venenatis Tortor

just because molds

do the same thing over,
not just clean rooms,
and over, and over,
but dirty rooms, too!
doesn’t mean we have to.

advance tooling standards

Repetition and molds just make sense. It’s what they’re supposed to do.
But that doesn’t mean that approaches in mold design should be repeated
infinitely. Instead, Progressive innovations, along with progressive minded
mold designers, combine to evolve and improve production tooling:

• Improve mold performance with SRT Slide Retainers, Needle Bearing

Locks, Collapsible Cores, Roller Pullers and exclusive mold cooling items

• Reduce mold cost with Keyed Ejectors, UniLifters, CamActions,

Expandable Cavities and a full line of industry standard items

• Achieve total mold control with MoldTrax and ProFile software and
CounterView cycle counters

Join those who are evolving their tooling practices of the past.
Questions? Call Tech Support at 1-800-269-6653 to discuss.

Visit www.procomps.com/demo
to see our components in action

2 AMBA
 We just got back from Orlando where we had
a great convention. Upon our return, we took
the feedback we received from the attendees
The official publication of
and began planning what will no doubt be American Mold Builders Association
our best convention yet. The 2011 AMBA
Annual Convention will be held in Las Vegas!
Leading the Future of U.S.
Not only will the topics be exciting, but we Mold Manufacturing
promise top-notch speakers that guarantee
you will leave with plenty of information to
execute in your own business.

In the meantime, keep your eye out for information regarding the Fall
Conference. We have had a great group out in DC the last two years,
but this an election year and I would really like to see more of you
take a hands-on approach to what is happening in our government that
affects your businesses. Our collective voices can make a difference! 3601 Algonquin Rd, Suite 304 • Rolling Meadows, IL 60008
phone: 847.222.9402 •fax: 847.222.9437
email: info@amba.org • website: www.amba.org
Melissa Millhuff
Executive Director
Officers and Board of Directors

President
Mike Armbrust, Mako Mold Corporation
Vice-President
Todd Finley, Commercial Tool & Die
In this Issue: Secretary
Spring Business Forecast Survey.....................................................................4 Shawn McGrew, Prodigy Mold & Tool
AMBA Website Webinar Provides Members with Valuable Information......6 Treasurer
AMBA Webinar: “Mold Cooling – Reducing Mold Cycle Time by 20-40%”.......7 Kent Hanson, H.S. Die & Engineering, Inc.
Innovating Mold Design with Direct Metal Laser Sintering (DMLS) ..........8 Executive Director
AMBA’s Mold Builder of the Year....................................................................9 Melissa Millhuff
AMBA Chapter of the Year............................................................................10 Association Legal Councel
New AMBA Board Members Announced......................................................11 Richard N. Mueller & Associates
Board Elects Officers......................................................................................12
2010 AMBA Annual Convention Wrap.........................................................13 Board of Directors
Thank You to Our Convention Sponsors & Tabletop Exhibitors.................20 Steve Rotman, Ameritech Die & Mold
AMBA 2010 Annual Convention Photos......................................................24 Shawn McGrew, Prodigy Mold & Tool
AMBA News . .................................................................................................26 Kent Hanson, H.S. Die & Engineering, Inc.
Welcome New Members................................................................................27 Justin McPhee, Mold Craft
Members Exhibit at PLASTEC West 2010 . .................................................28 Robert Earnhardt, Superior Tooling
Member News................................................................................................29 Todd Finley, Commercial Tool & Die
Chapter News ................................................................................................32 Dan Glass, Strohwig Industries
News for Die Casters......................................................................................34 Roger Klouda. M.S.I. Mold Builders
Scott Phipps, United Tool & Mold
Gibson Insurance
Robert Vaughan, Fairway Injection Molding Systems
The Risks And Responsibilities Of Hosting A Party.........................34
Mike Walter, MET Plastics
Teens and Texting..............................................................................35
Andy Baker, Byrne Tool & Die
Prompt Claim Reporting Saves Dollars and Improves Care............36
Michael Bohning, Creative Blow Mold Tooling
Safety Programs.................................................................................36
Human Resources AMBA Staff
Why Employers Need Two Sets of Employee Files...........................37 Melissa Millhuff, Executive Director
Set the Stage for Success from the First Day!...................................37 Sue Daniels, Member Services Coordinator
DOL & IRS Crackdown on Payroll Issues..........................................37 Shannon Merrill, National Chapter Coordinator
New Tax Credits for Employers with Fewer than
25 Full Time Employees.....................................................................37
New Tax Credits for Hiring Unemployed Workers...........................38 The American Mold Builder is published four times annually in spring,
Tax & Business summer, fall and winter by the American Mold Builders Association.
Charting a Course to Increased Business Value...............................38 Editor: Melissa Millhuff; Assistant Editor: Sue Daniels; Contributing
FLPs and How They Work..................................................................40 Author: Clare Goldsberry; Layout & Design: Controlled Color, Inc.
phone 630/295-9210; Publishing:Your Images Group, Inc., phone
Bankruptcy – Advantages & Disadvantages.....................................41
847-437-6688; Copy deadline: 25 days preceeding publication date.
College Costs Keep Skyrocketing......................................................42 Contact AMBA at 847/222-9402 or email info@amba.org for adver-
Business Success Strategies tising information, article submission ideas, or a subscription.
Taking Out Credit Insurance on Business Receivables....................42
Employee vs. Independent Contractor - Brief Review of the Rules.....43 Opinions expressed in this publication may or may not reflect the views
of the Association, and do not necessarily represent official positions or
10 Ways to Reduce Supply Chain Costs............................................43
policies of the Association or its members.
Peek at Your Business’ Rating! - Compare to Local Peers................45

AMBA 3
Spring Business Forecast Survey Reveals
Hint of Recovery
The Spring 2010 Business Forecast of the AMBA reveals a hint of
recovery as business upticks lend an air of hopefulness. The quarterly
survey revealed that current business conditions once again improved
slightly over the previous three months, with 7% of the respondents
saying that business is Excellent – up a full percentage point from 6%
of respondents in the Winter 2010 survey, and putting that category
back to where it was in the Fall 2009 survey. A total of 44% of the
membership responded to this recent survey.
Current business conditions also improved, moving up 2% for those
reporting Good conditions (35%) compared to 33% of the respondents
in the Winter survey. That is up a full 12% from the Fall survey, as
the outlook continues to move in the right direction. Fair business
conditions exist for 43% of the respondents compared to 44% of
the respondents in the Fall survey. Those reporting Poor business
conditions continues to fall, with only 14% noting poor conditions,
down one percentage point from the Winter 2010 survey, and a big
drop from the 27% reporting poor business conditions in the Fall
survey. Bad conditions exist for only 1% of respondents, yet another
percentage point improvement from the 2% reporting Bad conditions
in the Winter survey, and a nice decline from 5% of the respondents in
the Fall survey, and a continued improvement from the 12% reporting
Bad conditions in the Summer survey.
Projections for business over the next three months are a bit more
pessimistic with respect to the outlook of future business among
respondents. Only 4% expect business to Increase Substantially,
compared to 8% in the Winter survey. Those expecting business to
Increase Moderately ticked upward to 44%, compared to 40% of the
respondents in the Winter 2010 survey, once again showing more
optimism.
Forty-five percent of respondents expect business to Remain the
Same. Respondents expecting business to Decrease Moderately again
dropped by two percentage points to 7% compared to 9% in the Winter
2010 survey. None of the respondents expect business to Decrease
Substantially, down 2% and marking the first time that has happened
in recent history.
When asked to compare their company’s current level of business
with that of three months ago, responses indicate some movement in a
positive direction:
Quoting activity is again Up -- 46% of the respondents compared to
40% of the respondents in the previous survey; the Same for 35%,
down from 59% in the Winter 2010 survey; and Down for just 19%,
a drop of 2% from the 21% in the Winter survey. Several respondents
noted that there is an increasing lag time between quoting and getting
the P.O. “We are having a very difficult time getting customers to
release purchase orders,” said one respondent. “They are holding them
until the very last minute in most cases.”
Shipments are Up for 36% of the respondents, compared to 33% last
quarter, a continued upward trend from 29% in the Fall 2009 survey.
Shipments stayed about the Same for 42% of respondents; and Down
for 22% of the respondents. Backlog is Up for 34% of the respondents,
4 AMBA
a slight downturn from the 38% in the Winter survey; the Same for
36% (up 3 percentage points from the Winter survey) and Down for
30% (two percentage point drop from 32% in the Winter survey). This
seems to indicate that work is staying steady and not fluctuating too
much in the wrong direction.
Profits in the Spring survey ticked upward once again, with 20%
reporting that profits are Up, compared to 17% in the Winter survey.
This category has also trended up from a low in the Spring of 2009.
Profits are the Same for 49% of the respondents, identical to the Winter
survey, compared with 47% in the Fall survey. However, profits are
trending Down for 31% of the respondents in the Spring survey,
compared to 34% in the Winter survey, a slight improvement.
Employment levels have dropped off slightly, being Up for only 14%
of the respondents, compared to 16% in the Winter survey. They
remained the Same for 66% of the respondents, down from 74% in the
Winter survey. Employment is Down for only 20% of the respondents,
double the 10% of the respondents in the Winter survey.
The current average number of shop employees held steady at an
average of 22. The current average number of design and engineering
employees dropped by one in the Spring survey, to five. Work-week
hours for shop employees also remained steady at 45 for the Spring
survey, the same as the Winter survey. For design and engineering
employees the hours also remained at 45, the same as the Winter 2010
survey.
The Spring 2010 survey contained two questions. The first had to
do with health benefits provided by AMBA member shops: If your
company offers health benefits, what kind do you offer? Of the
respondents who chose to answer the question, 49 provide PPOs;
26 provide HMOs; 39 provide HSAs (Health Savings Accounts);
2 provide FSAs (flexible spending accounts); 3 provide traditional
insurance; 2 provide no insurance; 3 provide an HRA; 1 self-funded; 1
EPO, and 1 PHP. 18 provide two or more types of insurance.
The second question asked about marketing strategies. Of those
responding:
• 56% are redesigning their websites;
• 23% are advertising in trade publications;
• 15% are advertising in online e-newsletters/
trade publications;
• 15% are creating an in-house e-Newsletter for
customers and potential customers;
• 41% attend market specific trade shows.
21% are doing none of these things, but are doing networking, have
a Thomas Net account, and several are making more efforts with
personal sales calls, adding to direct sales, and making other efforts to
promote business with both current and new customers.
A number of comments this quarter still show great concern about the
government, taxes and regulations, as well as continued concern about
the trade imbalance with China. “We need to fix the tax imbalance
with China,” commented one respondent. o
 AMBA Spring 2010 Business Forecast Survey Results

The AMBA Business Forecast Survey was developed to provide AMBA members with information
on the current business conditions and a projection of the upcoming months. The Spring 2010
Survey resulted a response rate of 44% from AMBA members. Business remains "Good"
for 35% of the respondents, and for 7% of the respondents it is "Excellent."

AMBA Members Current Business Projection of Business Over the Next 3

Conditions Months Increase
35% Substantially
43% Excellent
Increase
Good
44% Moderately

Fair Remain the

Same
Poor
Decrease
4% Moderately
7% Bad
45%
1% 7%
14% 0% Decrease
Substantially

Current Level of Business in Last 3 Months

70%
Quoting
60%

50% Shipments

40%
Backlog
30%
Profits
20%

Employment
10%

0%
Up Same Down

Current Work-Week Hours Current Number Plant Employees

50 50

40 40
Plant Employees
Work Hours

30 30
45 45
20 20
22 5
10 10

0 0

Average Shop Hours Average Design & Engineering Hours Average Shop Employees Average Design & Engineering Employees

Your 2010 marketing strategy includes (Respondants could choose more than one):

Redesigning my website

Attend market specific tradeshows

Advertising in trade publications

None of the above

Advertising in online e-
newsletters/trade pubs

0% 10% 20% 30% 40% 50% 60%

AMBA 5
AMBA Website Webinar Provides
Members with Valuable Information
Creating an effective website is a key part
of sales and marketing, said Todd Schuett,
owner of Creative Technology, a company
that specializes in photos, videos and
website development. “Your website is a
24/7 ad for what your company does,” said
Schuett. “We’ll be working toward a perfect
website but in actuality there’s no such thing
– it’s a constant evolution.”
The first thing that is needed is to
analyze the company and put in place
a marketing strategy or plan. Perform a Todd Schuett
SWOT evaluation (Strengths, Weaknesses,
Opportunities and Threats) first. Key elements to feature are your
strengths. Based on your evaluation of your company, what is your
specialty? Promotional materials including the website should be designed
to your strengths and speak to those markets and customers you have
determined through your evaluation and marketing strategy, from which
you want to capture business.
Perhaps you’ve identified some weaknesses, and one of the most common
one is that mold shops tend to be small businesses – maybe with only five
employees. Yet, in analyzing your sales and marketing, you discovered
that because you’re small you have fast service. Perhaps you have a
unique niche. Identify your special niche such as the ability to make
threaded parts. Then show threaded cores and how they work to show
what you do.
Schuett said that if you’re going to update your website, you should ask
yourself a few questions:
• Where are we right now?
• Do I like my site?
• Is it up to date?
• Does it accurately depict what we do?
• Is it visually appealing?
In order to move forward, think about who your website is for? Internal
customers? External customers? Vendors? Employees? Is your site engaging?
To make your site more engaging, tell your story with photos. Text is
important, but “showing” your capabilities is better than just telling.
Engaging visitors to your site and getting them interested long enough
to stay to learn more about who you are is the first goal. Next, you must
know WHO your website is engaging? A lot of different types of people
look at your website. Bankers and others such as insurance underwriters
watch your site, and they are important as well. Your main target however,
is probably engineers and purchasing people. While engineers generally
understand moldmaking and molds, buyers may not understand what
they’re buying. So your site should be educational for those who may not
know exactly what a mold is or its function.
Priorities to show your audience:
1. Show them what you make: have photos of plastic parts and
mold examples. “You want to emphasize that this is important,”
said Schuett. “Prospects want to know that you can do what they
need done. How you portray that is important. We don’t build
plastic parts but we build molds, and as such we’re a key element
in making good parts. Therefore, what you make is important.
2. Business development: Show that your company is growing and
include things such as news items or articles from industry trade
magazines that feature your company. Show how you make your
tooling, i.e. your capabilities. Show people in action. Also, don’t
6 AMBA
just show a plastic nozzle, but show and describe a very complex,
precision nozzle. If you make a mold for something that people
purchase and use, put a photo of that part on your site so people
can relate to it. Showing parts that everyone can relate to shows
that you are part of their life and have an impact through the molds
that you make.
3. Build your photo portfolio as you go so you have plenty of
promo shots. When you finish a mold take a photo of it. When
you do first article sampling and the parts come out beautiful, take
a photo and build a file. That way you’ll have plenty of photos for
your website.
4. Show detail on the photos of parts – there are ways to use your
photography to leverage your strengths by taking tight shots of
mold cores and cavities and plastic parts. When showing actual
molds, we look at the mold and try to figure out what it makes.
For a mold buyer it’s not particularly meaningful, and for a banker
or insurance person it’s even less meaningful. But it can look
impressive to them, and to your target engineering audience it will
be meaningful.
Site organization is critical to the site’s appeal. How your tabs are
arranged can appeal to different people. Some have their tabs across the
top with drop downs for sub-heads. Some have the menu down the side
and across the top.
Careers is an important tab, said Schuett. “Listing job opportunities not
necessarily just a call for people to come and apply for jobs, but a signal
that you are growing and investing in the future,”
Are you involved in politics and out lobbying for the interests of the
mold building industry? “This is good to include as it shows you’re
actively trying to make a difference in the world. It shows community
involvement,” stated Schuett. “On one site, the company shows employees
helping to build a house for Habitat for Humanity. It shows that you’re
trying to make the world a better place.”
A two sentence bio on employees is interesting. It’s universally appealing,
but difficult to do if you have hundreds of employees, or if you only have
three or four employees. “This helps with relationship building,” Schuett
said.
The point is that there is no ultimate site and you never get to the perfect
site permanently. “We all look at things differently, and things at our
companies are constantly changing,” Schuett noted. Tell what you do
quickly because you have just seconds to lock them in or you’ll lose them.
Make everything count on your site: Text and photos/illustrations. Build
some things in so they have to hunt for it but give others the fast overview
quickly and easily. Appeal to young and old alike – attract the young
into the trade with photos of youth, and make your site photographically
appealing with things like motorcycles. Text is essential not only for
descriptions but for search engines, so make sure you have good text.”
Walking visitors through a quoting process as a video might help people
understand why all the information that you request is actually needed. “I
would not ordinarily have a quoting page on the site,” Schuett responded
to a question on this topic. “While the site is there 24/7, it won’t get
orders on its own, and it won’t do the closing for you. If someone doesn’t
want any interaction with you – just a number – they are probably not
discriminating enough to warrant your time anyway.”
Remember that ongoing updates are critical. “It can be the most important
thing you do to keep it relevant, current, and interesting to visitors to the
site,” concluded Schuett.
For more information contact Todd Schuett, at Creative Technology Corp.,
www.todd.schuett.com or phone at (847) 910-1258. o
AMBA Webinar: “Mold Cooling –
Reducing Mold Cycle Time by 20-40%”
Mold manufacturers need to be concerned about cycle time if they Hot Runner
want to help their customers maintain a competitive edge, improve
efficiencies, productivity and profits in order to compete on a global
basis. That’s Bob Beard’s mantra which he presented at the AMBA
Solutions For
webinar on “Mold Cooling: Reducing Mold Cycle Time by 20-40%” on
February 24th.
All Applications
The buzz in the industry has been on aluminum production molds as a Direct-Flo™ Gold Systems
way to get the heat out of a mold quickly and reduce cycle times. Using For Technical Molding
high-thermal conductivity metals, like beryllium copper and aluminum,
I Designed for Engineered Resins
achieve cycle reductions of 20% or more. With the industry looking for
every penny, there is a paradigm shift on how aluminum is viewed as I Unitized, Integrated, and
a production mold. Aluminum is less expensive than beryllium copper, Hot Half Systems
and with a 20% reduction in cycle time and the potential to machine the
mold 10% - 20% faster, what’s not to like? However, aluminum is not
for every application. It’s softer than steel and the molding people need Quick-Flo™ Systems
to be trained in the care and feeding of production aluminum molds. For Hi-Cavitation Molding
Coatings can provide a hard surface, but the substrate will still be soft. I Designed for
Hard coat anodizing the aluminum will increase the surface hardness Commodity Resins
to about 58 Rc. The growth thickness above the surface will equal the
I Complete Hot Half Systems
substrate penetration. Some mold coatings can reduce the coefficient
of friction, between the resin melt and the mold, which produces longer
flow lengths in the mold. Opti-Flo® Manifold Technology
I Rheologically Balanced
Optimizing the choice of metal to be used for the cores and cavities with

and the design of the cooling lines represents 50% of available cycle I Optimized for DF Gold
reduction. The other 50% is analyzing and optimizing how the cooling and Quick-Flo™ Systems Technology

lines are connected to the plant cooling system.

In order to reduce cycle time, there needs to be an understanding

of heat management. This entails thermodynamics, dynamic heat
transfer and how fluid dynamics impacts heat transfer. The First Law
of thermodynamics states that: “Energy can neither be created nor
destroyed but only changed from one form to another.” The Second
Law of thermodynamics states: “Heat is transferred from a hot body to
a cold body.” How does that apply to injection molding and cycle time?
If you’re molding a resin that requires a 350 0F mold temperature and
the mold was hung directly to the press platens, it will be very difficult,
if not impossible to hold that mold temperature at startup. The heat is
going from the hot mold to several thousand pounds of the press platens
that are at room temperature which is acting as a heat sink. Almost as
fast as the heat is being pumped into the mold, it is escaping into the
press platens. An insulation board needs to be installed between the
mold and the press platens. After startup, the hot oil coursing through
the mold becomes a refrigerant because the heat from the resin melt at
600 0F is being transferred to the mold and oil, which are cooler at 350 0F.

The opposite situation can also occur. If the mold temperature is at 40

0
F, the heat from the hot press platens at 70 0F is being transferred into
the mold just prior to startup. After the first shot, the heat from the resin INCOE® Hot Runners Today
melt is being transferred to the mold and the cooling lines, but is also INCOE® Systems are designed for optimal performance and cost effectiveness
being transferred into the press platens at 70 0F which are now acting as in demanding applications. With more than 50 years of in-field experience,
we partner with our customers to help them exceed their expectations.
a heat sink.
That's INCOE® performance ... Right From The Start
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to insure that turbulent flow is truly present in the mold cooling system E: info@incoe.com www.incoe.com
and by also changing the process, significant cycle reductions can be
achieved.

AMBA 7
The molders and moldmakers that present their clients with a financial Innovating Mold Design with Direct Metal
justification for doing mold simulations and “enhanced cooling”
optimization, are giving the OEM purchasing agents the tools to Laser Sintering (DMLS)
convince their management to spend more on the mold and process in By: Matt Vuturo, GPI Prototype
order to save more money over the lifetime of the project. Corporations
financially justify every expenditure, and molds are no different. “As a Listening to presentations at the recent
professional engineer and manager, I’ve had to become half accountant AMBA National Convention, there was
in order to financially justify every project to management that I an overriding theme of embracing and
proposed” Beard said. Molders and moldmakers need to submit quotes stimulating change within the mold
with options that their customers did not ask for, but yet are financially industry……Mold the Future of Your
justified options. How many molders and moldmakers prepare internal Business. Not how are we going to survive,
rate of return analyses or simple pay back on their quotes and options? but how can we thrive moving forward
in today’s increasingly competitive
In his AMBA webinar, Bob cited data from the SPI Financial Ratio global economy? There were some fine,
for 2006 (the last year that data was published) that a 20% reduction stimulating presentations. Notably, I found
in cycle time increased profit incrementally by 5% on existing molds. Ryan Pohl’s presentation on building the
For molders operating at 1% profit, this represents a 500% increase next generation of workers to be right on
in profitability. By combining an “enhanced cooling” analysis with target. Constant change is here to stay; the
high thermal conductivity metals like aluminum and berylium, a 40% ability to adapt as crucial as ever.
reduction in cycle time is achievable which produces increased profit
incrementally by 10%. Since each company is different, each company Working with that innovative theme from the convention, I’d like
needs to model how a 20% or 40% reduction in cycle time would affect to present a short article on an emerging tooling technology here in
their profitability. Molders can use the increase in margin to increase the states called Direct Metal Laser Sintering (DMLS). This additive
their profitability or lower the prices they quote, in order to increase manufacturing technology has been widely embraced by mold
their closure rates and obtain more new business to fill idle presses. professionals throughout Europe over the last 5-10 years, and has
started to penetrate niche molding industries stateside. The unique
applications offered by DMLS make the technology a viable solution
Bob Beard is President of Robert A. Beard Associates, Inc. His webinar for a variety of common problems inherent to molding processes.
is tentatively scheduled to be presented again by the AMBA on Sept.
22, 2010. He will be presenting his seminar on “Virtual Workshop on DMLS produces solid metal parts by
Troubleshooting the Injection Molding Process” at the Pdx/Amerimold locally melting metal powder with
Conference on May 10-11 in Cincinnati, His website is www.Plastic- a focused laser, growing geometries
Solvers.com. o layer-by-layer from 3D CAD data.
The parts have excellent mechanical
properties, high detail resolution, and
Speak Out: A Message From Our President can be finished to meet virtually any
(Continued from front cover) project requirement. The metal powder
is melted entirely to create a fully
Our 2010 Fall Conference will once again be held in Washington D.C. dense, fine, homogenous structure.
Melissa and staff have been preparing for this year’s fall conference since Some available materials include
the day we left Washington last year! Being an election year, it is even tool steel, stainless steel, cobalt
more reason to join us September 28-30. The Fall Conference will give chrome, bronze alloy, and recently
you the opportunity to get at real-time pulse of the issues we face and released, aluminum. DMLS can make
meet with YOUR representatives. You will have the opportunity to express EDM and milling obsolete in many
YOUR concerns and make a difference! Remember, every vote counts. Transparency of Conformal
Cooling Insert cases, especially with complex part
geometries where slides, inserts or
In closing my inaugural Speakout article; I would simply like to remind
other tool components with complex characteristics are required. To
everyone that the AMBA is YOU. This Association is made up of YOU
check out a short, light hearted presentation of DMLS, check out http://
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8 AMBA
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Andy Baker of Byrne Tool & Die Awarded
AMBA’s Mold Builder of the Year
The AMBA, awarded the Mold Builder of the Year to Andrew Baker,
project manager for Byrne Tool & Die in Rockford, Michigan. Andy
 exclusive
received the award at the AMBA Annual Convention, March 24, in
Orlando, Florida.  reliable

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Byrne Tool has been a member of the AMBA since 2003. Andy serves
on the West Michigan chapter board and on the scholarship committee,
and works actively to support the chapter in a variety of ways, including
organizing the first-ever chapter golf outing which was very successful www.hasco.com
in raising money for the chapter’s Scholarship Fund. quotes.america@hasco.com
He promotes moldmaking as a career at the local high school’s “Career
AMBA 9
Day” and is currently doing some beta testing for a new training West Michigan Chapter Named AMBA
company specializing in tool and die training. Andy actively lobbies
to promote industry awareness through efforts such as going to Chapter of the Year
Washington, D.C. and meeting regularly with local representative to
share his view points. As a result of this activity, Andy receives regular The AMBA awarded the West Michigan chapter its 2010 Chapter of
weekly updates from his Congressional officials. the Year Award! The award was presented to the chapter at the AMBA
Annual Convention in Orlando, Florida, on March 24.
Andy also actively promotes employee involvement and social
awareness by taking the entire company to help with Habitat for
Humanity projects.

Andy’s contributions to Byrne Tool & Die’s success include helping

the company increase its sales every year since 2003, and the company
expected a 10% gain in 2009. In 2008, Andy was instrumental in
creating a strategic sales plan to enhance sales and help the company
move into new markets, while targeting new customers. Byrne
Tool embraces “Lean” principles and coined it “Common Sense
Manufacturing” or CSM, creating many metrics that monitor the
company’s effectiveness throughout the entire system.

Byrne Tool continues to invest in new equipment, technology and

employees, and works with machine tool vendors to provide the best
The West Michigan chapter has an extremely active membership base
in new tool technology. The company works with other area mold
that promotes education and apprenticeships, with the help of its many
companies to learn best practices so that every shop can grow through
supportive vendors. One of its member companies, Commercial Tool &
sharing.
Die, began an in-house training and apprenticeship program that led to
the hiring of a full-time instructor. From this, Expert Technical Training
“Receiving this award was a real surprise,” Andy comments. “The
LLC evolved, led by Ryan Pohl, who now works with local high school
AMBA has some great moldmakers and to receive this award was so
instructors, vocational centers and colleges to help develop a curriculum
amazing to me. Even though the award says Andrew Baker on it, it’s
that can be used at those levels, along with training new hires in the
really a reflection of all the people here at Byrne Tool and the great
industry.
work that we do here. It showcases the whole shop.”
When the chapter found out that the Gerald R. Ford Council of Boy
Baker was presented with a check for $5,000 from Progressive
Scouts was having difficulty getting a sponsor for one of their events,
Components to be used for an industry-related education program of his
the West Michigan chapter stepped up and provided a $2500 check
choice. He will work with the chapter to decide how the money will be
to underwrite their Silver Recognition Awards. This awards program
used.
honors volunteers who provide exceptional service to the youth in
the area. “Since today’s youth are our future, our chapter members
Byrne Tool also developed its web site (www.byrne-tool.com) to
responded favorably to take this opportunity give back to our local
provide value-added services such as an online job-tracking system
community,” said Jill Finley, West Michigan chapter coordinator, and
that allows customers to log in and check the progress of their new
who works at Mold Surface Technologies Inc.
tooling, download progress reports, and more. Andy’s contribution
to the company in all of these areas has helped the company achieve
In September 2009, the first-ever chapter golf outing was held, and
sustainable growth and increased profits, while reducing lead time by
in spite of the economic difficulties experienced by many Michigan
30% and provide customers with a quality mold at a competitive price.
companies, 88 golfers attended the event which ultimately raised $6000
for the chapter’s scholarship fund. The Scholarship Fund helps children
Byrne Tool received the Manufacturer of the Year Award from the
of AMBA member company employees. In 2009, the chapter awarded
Rockford Chamber of Commerce, and the small shop Lead Time Leader
three scholarships totaling $4000. One particular youth was awarded
Award from Mold Making Technology Magazine. o
three scholarships over four years based on merit alone. “The ultimate
thank you came when we found out this youth will now be entering the
trade, in order to give back to an industry that helped him,” said Finley.
Do you Want Company Exposure in Industry Magazines?
The West Michigan chapter was presented a check for $5,000 from
Contact AMBA’s Marketing Consultant, Clare Goldsberry, and she Progressive Components to be used for an industry-related program
will write a FREE press release to help promote your company’s of their choice. The chapter is discussing how to best use the $5,000
scholarship fund.
services, products, equipment & special milestones to industry
magazines and local newspapers. Clare has a BA Degree The West Michigan chapter is active in government, and meets regularly
in Journalism, and is the senior editor of Modern Plastics with state and local representatives. The chapter was instrumental is
magazine. She also offers marketing assistance in developing closing some loopholes in the Michigan Mold Lien Law to make it
company marketing plans, brochures & customer lists. Contact more effective. Last February, a rally was held on the Capitol steps
her at (602) 996-6499 or email clarewrite@aol.com. in Lansing, with a number of chapter members in attendance. The
chapter follows the voting records of its representatives and sends this

10 AMBA
information to its members to make each one fully aware of how they and spending time with his family. Andy lives with his wife and three
are being represented on the issues that directly affect the industry. children in the Rockford, MI area.

Kent Hanson (H.S. Die & Engineering, Grand Rapids), chapter

pesident, also sits on the board of directors and serves as treasurer
of the national AMBA. The West Michigan chapter’s Todd Finley of
Commercial Tool & Die, also serves on the Board of Directors of the
national AMBA. o
New AMBA Board Members Announced
Four directors have been elected to a three-year term.
Andy Baker, Byrne Tool
West Michigan Chapter
Andy Baker is the Project Manager at
Byrne Tool & Die in Rockford, Michigan.
Andy currently runs all day to day
operations and has helped Byrne Tool and
Die transition into a sustainable business
culture with annual growth over the past
five years. While working at Byrne Tool,
Andy has gained a vast knowledge of lean
manufacturing principles and how to apply
them to moldmaking. He also serves on
the board for the West Michigan chapter
and the Michigan Tooling Group. Andy is a journeyman moldmaker
and has been in the tool & die industry since 1993. He is currently
attending Cornerstone University, focusing on business administration.
Andy is a Christian and avid outdoorsman. He enjoys hunting, camping
Michael Bohning, Creative Blow Mold
Tooling - Non Chapter
Michael Bohning acquired Creative in
2006 after a career of more than 20 years
in public accounting and management
consulting. Creative Blow Mold
Tooling celebrated its 25th anniversary
in 2009. Michael, a CPA, spent many
years working closely with owner-
managed manufacturing companies on
a variety of strategic issues, including
business planning, financing, business
process improvements, technology,
and performance management. He has
aggressively applied many of these lessons learned to the operations
at Creative through initiatives in lean manufacturing, lean enterprise,
training, performance management, quality, and customer service.
Michael is active in the greater Kansas City business community.
AMBA 2009 Fall Conference Testimonial:
I enjoyed myself thoroughly at Fall Conference. It was a real
eye opening experience, and I plan to be active with the
Carolinas Chapter and AMBA National office as much as
possible moving forward!
David Bowers II, JMMS, Inc.

AMBA 11
Kent Hanson, H.S. Die most successful achievement was to become one of the owners of Mold
West Michigan Chapter Craft in September 2007. Justin filled a vacant seat on the National
Kent started out his 35 year career as a Board of Directors in late 2009 and has attended the 2008 & 2009 fall
mold polisher while attending college, conferences. He is secretary of the Minnesota chapter and is part of the
then working his way up at HS Die Education Committee. Justin also volunteers in the local community to
and Engineering from a moldmaker, promote manufacturing to the students, teachers, and parents. o
to Program Manager before he was
promoted to General Manager where he
works with other managers who follow
Board Elects Officers
the overall build and completion of 400- Following the announcement of the new national board of directors
500 molds and 300 special machining during the 2010 convention, the officers for the 2010/2011 term were
projects annually. Kent feels strongly announced. Mike Armbrust, Vice President of Mako Mold Corporation,
about supporting the moldmaking industry has stepped into the position of AMBA president after serving the
and has published many articles in trade requisite two terms as the organization’s vice president. Armbrust will
periodicals. He has co-written and taught seminars that dealt with Basic serve as the AMBA President for the next two years.
Mold Theory. Kent has worked for nine years on the AMBA National
Board of Directors, been the AMBA local chapter president for six Todd Finley of Commercial Tool & Die Inc. will serve as Vice President
years, and helped lobby and pass for the 2001 State of Michigan’s Bill for the next two years. Shawn McGrew of Prodigy Mold & Tool will
4812 – “Mold Lien Law” continue his role as Secretary. Additionally, Kent Hanson, of H.S. Die
will continue to serve as AMBA Treasurer. o
Justin McPhee, Mold Craft, Inc.
Minnesota Chapter
Justin is VP of Engineering at Mold
Craft in Willernie, MN. Mold Craft just
celebrated its 45th anniversary designing
and building precision injection molds. He
began his career in 1999 as an entry level
mold designer. The skills and values he
learned early in his career as he progressed
up the ladder earned him an opportunity
to become the VP of Engineering. Justin’s

President – Mike Armbrust Vice-President – Todd Finley

Mako Mold Corporation Commercial Tool & Die

Secretary – Shawn McGrew Treasurer – Kent Hanson

Prodigy Mold & Tool H.S. Die & Engineering

Why I Joined the AMBA:

There are many worthwhile reasons to join the AMBA. We
joined back in 1973 as their 14th member! Participating in
both nationally sponsored events and those programs offered
by our local chapter has provided us with solid mold builder
relationships, as well as information and solutions that are
specific to the mold making industry. No other association offers
that!
Francine Petrucci, B A Die Mold, Aurora, IL

12 AMBA
 2010 AMBA Annual Convention Wrap
Orlando Convention Presentations Cover a
Range of Challenges, Opportunities
The AMBA Annual Convention in Orlando, Fla., had 140 attendees
that included a number of children whose parents took the opportunity
to make it a “family affair.” In her opening remarks on the first day of
the convention, Executive Director Melissa Millhuff, said, “We’ve had
a tough year in 2009, but we need to think about the lessons learned
and step outside our companies and see what we need to make our
companies better by learning from each other and from our suppliers.
That is what this annual convention is all about, networking with our
peers and with our suppliers and learning new ideas and technologies,
and finding new opportunities to run our businesses more profitably.”
Manufacturing a Better Future for America:
Richard McCormack & Scott Paul
Richard McCormack, editor of
Manufacturing and Technology News
and of the new book “Manufacturing a
Better Future for America.” Each attendee
received a complimentary copy of this
book written by a number of authors, about
the future of manufacturing in the USA.
“If you don’t have a manufacturing base
you don’t have a housing industry,” stated
McCormack in his presentation, pointing
out that most of our other industries rely on
a strong manufacturing industry to create
the wealth that is needed to support an
economically strong America.
“Without industry to pay taxes it all falls on people who don’t have
good jobs to pay the taxes,” he said. “The Department of Defense is
finally linking the fact that they don’t have U.S. suppliers with the
attitude toward manufacturing in this country. There is a battle being
waged with economic ideologues in the U.S. that outsourcing is best for
the U.S. in the long run – that ideal is still prevalent – that we can have
a service industry alone and create wealth.”
Manufacturing is critical to the American economy, and that is slowly
starting to be recognized – but it’s late in the game, noted McCormack.
Manufacturing is high-tech. “The making of products is high-tech,
even if the products themselves are low-tech,” said McCormack. “Still
the policy makers remain asleep. They have the idea that we’ll just be
great innovators and let someone else do the manufacturing. There’s
starting to be some realization in Washington that you can’t decouple
manufacturing from R&D. You don’t make money with it until you’re
manufacturing millions of products – mass production is necessary.”
As to those companies who have threatened to move their
manufacturing offshore, such as Emerson Electric’s CEO did last fall in
a manufacturing summit, McCormack said, “Why isn’t our government
asking Emerson ‘what can we do to keep you here?’ It’s crazy to invest
in China! You’ve got a six-month inventory supply line and other
problems. There’s no reason to invest in China.”
McCormack pointed out some of the government issues that are driving
U.S. manufacturing offshore: the Environmental Protection Agency and
the “Greenies;” the high social security taxes, unemployment taxes,
health insurance, EEOC, OSHA, huge health insurance tabs.
AMBA
Chinese consumption of machine tools was $19.4 billion in 2009.
U.S. consumption of machine tools was $3.4 billion last year,
McCormack pointed out. And, solar is heading to China. The U.S. solar
manufacturing industry represents only 5% of global output. 84% of the
stimulus dollars that went to “green” energy went to purchase foreign
wind turbines, and wind installation declined 34% in the U.S.
Scott Paul is the Executive Director of the
Alliance for American Manufacturing,
a general voice for manufacturing in the
USA. “We have lost 51,000 manufacturing
facilities in the past decade and one-
third of all manufacturing jobs,” Paul
told the attendees. “Even during the
Great Depression we eked out a positive
industrial production, while in 2001,
we dropped in industrial output. So this
recession started well before 2008.”
The gauge of public opinion shows that
people generally agree with the AAM on manufacturing, but the real
challenge is “image.” Paul noted that “many think manufacturing is our
past, not our future – the Archie Bunker image or the negative image
of the factory. The truth about manufacturing is much different that it’s
portrayed,” he said.
“We’ve built America – the defense-industrial base – we’ve led the
way,” said Paul. “We can persuade people that manufacturing is
important, but we can’t compete with countries that provide subsidies
to their manufacturers. There’s a lot of anger out there, but if we get the
angry mob focused on what we need for the future, we have a chance.”
Paul said there are several things that manufacturing needs to succeed:
A manufacturing policy of reciprocal trade agreements – the Golden
Rule of Trade – “we’ve given up our market access,” he said. exchange
rates need to be addressed – “Either impose tariffs or stop pegging the
Yuan to the dollar,” said Paul. “This would create two million jobs and
cost the government nothing.”
Taxes need to be revised to incent companies to expand businesses
here. “Our tax policy drives production offshore,” said Paul. “A system
that screws people who want to produce here and gives incentives to
companies that go offshore” does nothing to create jobs. “Simple tax
reforms are needed to make it advantageous to manufacturers here to
hire more workers.”
We need to provide financing for manufacturers. Paul proposed that the
government “repurpose” the TARP money to go to small banks that lend
to small manufacturers, or to a manufacturing loan group to give small
manufacturers money they need to run their businesses. Developing
workforce skills and providing training is critical as well. There will be
a lot of turnover during the next decade as many of the older workers
retire, and there will be a problem hiring skilled workers. Many young
people are getting no training because the push is to get everyone into a
4-year college. “That’s not what we need,” said Paul.
A “Buy American” policy for the federal government is badly needed,
stated Paul. “All our trading partners have this – Japan has a Buy Japan
policy, as does Germany and many others.”
13
 2010 AMBA Annual Convention Wrap
Connect R&D to manufacturing. The idea that we’ll do the R&D
here and make everything in China is of no benefit to the American
economy. “Give big tax credits to commercialize products here,” Paul
suggested. “We’ve basically handed the keys to the manufacturing plant
to the Chinese. We’ve busted the myth that we can innovate here and
manufacture it in China and have a strong economy. All good jobs are
with manufacturing.
Climate and Clean Air policies need to be equal around the globe to be
effective. “If it doesn’t include China and India, we’re digging our own
grave for manufacturing in this country,” stated Paul. “China’s carbon
foot print is three times larger than ours. If we export manufacturing
to China and India, we’re contributing to a larger carbon foot print
globally.”
Paul advised AMBA members to keep up the good work with the Fall
Conference in Washington, D.C. every September, and “talk to your
representatives in Congress, he said. “ They work for you. Invite a
member of Congress to your plant and show them what you do and who
you employ. They have no idea what you do, and many are shocked and
surprised at what you do when they see it firsthand. Make your voices
heard.”
Taking a Look at Markets:
At this year’s convention, the AMBA asked three knowledgeable people
to speak about the markets in which they are heavily involved. We
wanted to give the ABMA attendees the opportunity to learn more about
these three major markets, the challenges and opportunities in serving
these markets.
Leverage Your Membership
and Save on Shipping.
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shipments with YRC. This savings program is a free benefit of your AMBA membership.
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Copyright ©2009 YRC Inc.
14
Automotive Market
Laurie Harbour-Felax, President of
Harbour Results Inc. (Berkley, MI),
spoke about the automotive industry. As
a consultant to the automotive industry,
Laurie has a good handle on this market,
and understands the challenges the
suppliers face that serve this market.
“Flexibility is the key to being profitable in
the automotive market,” she stated. “Are
companies going to take advantage of
change or keep the status quo?”
Laurie pointed out that there are a number of issues impacting the
automotive industry, including the continued bankruptcy problems
among the Tier One suppliers, and even the mid-size Tier Two suppliers
due to a lack of available capital. The fuel-economy issues and
government role in dictating that along with the government ownership
of GM will also impact this market.
“There’s also a shifting focus in manufacturing,” she added, “with
more global platforms and components.” For example, Harbour said
that putting the same pedal on every vehicle reduces costs but that
also results in recalling all cars when something goes wrong. While
there are more common platforms and components it will result in
stricter regulations. There will also be fewer tools, not great news for
moldmakers who serve the automotive industry.
AMBA
There continues to be “unprecedented demand” for vehicles, but
OEMs are looking for lower fixed costs. “Flexibility is critical,” Laurie
reiterated, adding that the projected units over one year will be 12
million. But that fluctuates – it could be 16 million units the following
year and down the year after. So flexibility among suppliers to the
automotive industry is critical.
The automotive industry will continue to watch its inventories as it
offers incentives to sell more vehicles. She also noted that the supplier/
OEM model will change. “The model for payment terms is starting to
change,” Laurie said. “If you’re a supplier to GM that company now has
put purchasing under product development” so they’ll have the input
from engineering on mold buying.
Laurie said that those suppliers that will survive will have the
technology advantages in multiple locations to be able to serve the
OEMs and the large Tier One suppliers. Her take on the Detroit Three:
GM has lowered its structural costs, and will have an IPO later this
year. Ford doesn’t have a clean balance sheet and didn’t get the Union
concessions it was seeking. “I wouldn’t be tying up my resources
building tools for Chrysler,” she added. “But Volkswagen is projecting
200,000 units at its new plant in Tennessee. Hyundai is also riding this
wave.”
She projects more consolidation among suppliers, but they will be
selling value, not capacity. They will achieve profitability through
flexibility.
Laurie’s advice to the AMBA attendees:
1) Set the “Vision” – revisit your strategy
2) Define and assess your capabilities – your core capabilities
(designing and building molds) and you’re enabling capabilities
(IT, financing, etc) including your competency (ability to do
something) and your capacity (the maximum that can be done).
3) Build a transformation plan for your core competency and your
enabling capabilities.
4) Leverage flexibility. “As you come out of the recession, grow
out of this,” she advised. “Grow your profits through flexibility,
not just your business. Add back in less that you take out and be
flexible to accommodate the ups and downs in the automotive
market.”
5) Focus on the differences that matter: Weed the garden; focus on
continuous improvement; increase your throughput – do more
with the same capabilities; focus on program management –
“there are a lot of new programs in automotive – it’s all about
new products; standardize and plan your assets for the future.
Inflation will happen.
6) Leadership is a must. “You must lead, set the foundation and
develop a strategy,” Laurie said. “Put the right people in the
right seats. Make decisions – let the team make decisions, and
get out of your own way. Eliminate barriers and set the beat.”
7) Don’t over-engineer the process! It’s about blocking and
tackling. The automotive has made us more complex that we
need to be.
AMBA Member Benefit:
Webinars – FREE AMBA-sponsored webinars on business
operations; Mold Lien Laws, R&D Tax Credits, Protecting your
Company from Bankrupt Customers, Marketing your Mold
Shop, Selling your Molds in Europe and more!
AMBA
Appliance Market
Jack Shedd is vice president of sales and
marketing at Hoffer Plastics in Elgin, IL,
a custom injection molder and contract
manufacturer. The appliance industry is
one of the company’s major markets that it
serves. Jack has had many years working
with the appliance industry in previous
positions with another molding company
and understands this market quite well.
“Why the appliance industry?” he asked
the attendees. “They have high volumes.
Whirlpool in Clyde, Ohio, makes 22,000 top-load washers a day, for
example. They make these in the United States because they can’t make
it in Mexico and ship it back into the U.S. because that’s more costly.”
Whirlpool has 25 North American assembly locations and uses lots of
plastics. “There are a lot of opportunities for moldmakers in the U.S. in
this market,” said Shedd.
Appliance typically has a three-year “refresh” cycle in which they
use the same platform but incorporate new features. Whirlpool is the
dominant player with a 36% share of the market plus their subsidiaries
of Amana and Maytag with 12% market share.
Appliance industry trends include:
1) Pressure for low-cost tooling and hence overseas tool builds. To
be competitive, U.S. moldmakers need to “figure out a better
way to skin a cat,” said Shedd.
2) Appliance manufacturers want partners who can be integrators –
make the mold overseas, then finish the mold here or groom the
mold here. “I have to source some low-cost countries, but we’re
allowed to put 5% onto the cost to cover our participation in the
program,” he said.
3) Appliance makers have a 24/7 build requirement. “They can‘t
get molds fast enough, and with the time differential, they can
do better building molds stateside than in China,” said Shedd.
“But we can count on this industry being here because of the
large items and the shipping costs.”
Medical Market
Jerry Seidelman, sales and marketing
manager for Tech Mold Inc. (Tempe, AZ),
provided some insight into the medical
market. Tech Mold serves the medical and
pharmaceutical markets, among others.
“Medical markets performed well through
the turmoil,” he remarked. “Medical
packaging held its own at 3% growth in
2009.”
In spite of that good news, the down side
is that companies began to cut back on
new mold releases, and put more into the
budget for mold repair and maintenance, which was good work for
Tech Mold during 2009. For 2010, Tech Mold is seeing an increase in
new activity. “Is the medical industry recession proof?” Jerry asked the
attendees. “Well, to a point.”
Jerry pointed out that some of the factors driving the stability in the
medical and pharmaceutical markets include a huge population of aging
baby boomers. Other opportunities include the rising use of single-use
15
 2010 AMBA Annual Convention Wrap
disposable medical products, and more complex devices which drives a
larger number of molds. “More parts means more molds,” Jerry said.
Competitors to serve the medical and pharmaceutical industries are
coming from several parts of the globe – South America, Portugal, India
and China.
Trends in these industries include the demand for better quality molds,
molds that run higher productivity, tighter tolerances. We need to
adopt the metric system in this country to lend standardization to mold
building.
“There’s an intense need for engineering and project management in
serving these industries,” said Jerry. “They need project management
support.”
Other needs include a technical infrastructure to meet the requirements
of OEMs in the medical and pharmaceutical market. All of this can
put a strain on a moldmaker’s cash flow. The green initiative is driving
toward the elimination of waste – runner system waste and a reduction
in material content so there is more demand for thin wall parts.
Medical OEMs are looking for new product development assistance,
developmental prototypes and new production molds. Jerry advised
moldmakers that they:
1) Need to be flexible, nimble and ready to adapt to change. “When
the business model changes, you can be ready to change with it.”
2) Focus on self-preservation – “don’t be your own worst enemy
by trying to be the lowest price on the bid list.”
3) Know your capabilities and build on your strengths. “Become
the best you can be at what you are best at,” Jerry said.
4) Form Alliances and Partnerships. Network with suppliers and
customers. Be more than just a mold supplier.
Jerry also provided some business advice for attendees:
1) Use the “make or buy” option – decide where your equipment is
best utilized, and make what you determine is optimum for you
to make in-house, buy the rest.
2) Focus on securing work that plays to your strengths and will be
profitable.
3) Customers need problem solvers - be prepared to provide
solutions to OEMs in this industry.
4) Support your customers after the sale.
5) Don’t underestimate China. Educate your customers on cost vs.
value; share information with your customer by sending them
articles on the advantages of buying molds in the U.S. from
American mold builders.
6) Have a vision and a plan. “The survival of your business
requires this.
Strategically Planning Your Future
Patrick McNally from Blackman Kallick,
one of the AMBA’s top resources for
business planning seminars, provided
attendees with some great advice on value-
based planning. “There are many reasons
we don’t plan,” said McNally. “But success
doesn’t happen by accident.”
McNally gave us many pointers on
strategic planning:
1) Start with the big picture. Have a
16
large goal such as “I want to retire by 65 and sell my business
for $5 million.” What does your business mean to you? What
retirement income do you want? What legacy do you leave to
your family?
2) Where are you now? You have to find your starting point.
3) What is your business worth? “You need to understand what
your business is worth because people need to know what drives
the value of your business,” said McNally. “Often you can’t
influence outside forces, but you can influence how you react to
those things.”
4) What drives the value of your business? “Show me the money,”
said McNally. “Cash flow is key.”
A) There is the time value of money – “I’d rather have a dollar
today than a dollar next year,” said McNally.
B) The risky-ness of cash flow.
C) The size of the cash flow – the process of discounting or
a rate of interest on which I’ll get cash flows – that’s the
risky-ness. “Anything that impacts any of these determines
value,” said McNally. “Cash flow is something you can
touch.
D) Working capital needs to be in the business and that
involves not inventing in a job until you have it. “You can
damage the value of your business if your working capital
is tied up in jobs that are on hold,” McNally stressed.
“For every dollar of improvement in cash flow, you get a multiple of
that dollar when you sell,” McNally said. “When you improve your cash
flow you reduce your risky-ness.”
5) Diversify your customer base. Companies have an industry
and customer concentration and work closely with certain
individuals at that customer’s facility or in that industry. When
someone buys your business, they probably won’t have the same
relationships with your customers that you do. Then the new
owner is faced with the reality: “Maybe the guys at JCI loved
John, but they don’t love me and if they leave, I’m dead.”
6) Spread the responsibility around. “If you’re too involved in your
business, the new owner faces the risk that the business will go
down when the old owner leaves,” he said.
For more information on Value-based Planning, contact Patrick
McNally at 312-980-2934.
Building A Sales Team for Your Company’s Future
Scott Smith has been selling for most of his
career, and recently started his company,
Sales Pro Inc. to help moldmakers develop
their sales force. His advice to the attendees
was pretty straightforward:
1) “Make the sales calls!” he stated.
“You’ve got to do the activity.”
2) Be excited about what you have to
sell.
To implement a good sales program, you’ve
got to get commitment from the top down.
Management has to buy into the program.
Next, you’ve got to have a plan for what
types of business you’re going after. Then you need to set measurable
goals. Recognize that selling is time sensitive. And finally, be open to
change, Scott advised.
AMBA
 Dates To Remember Dates To Remember
K-Show
AMBA EVENTS October 27 - November 3 - Dusseldorf, Germany
K is the world’s premier trade fair for plastics and rubber. Its
Online Seminar – Rapid Prototyping Options scope and focal points are all-embracing, covering the full
June 2, 2010, Noon CT spectrum of products and innovations from basic standard to
high-tech solutions.
Registration now open at www.amba.org/Event_Calendar
No other event is as impressive as K with regard to volume and
Online Seminar – Calculating Your Shop Rate quality. This is the showcase for what is important today and
June 9, 2010, Noon CT what will shape the markets of tomorrow and beyond. From
Registration now open at www.amba.org/Event_Calendar global market leader to young spin-off, K attracts everyone who
wants to succeed in business now and still be up-to-date down
the line.
AMBA Fall Conference
September 28-30, 2010, Washington, D.C. Pack Expo International 2010
Hyatt Capitol Hill October 31 - November 3 - Chicago, IL
PACK EXPO International 2010 in Chicago, October 31–
AMBA Convention November 3, is the only show you need to attend next year!
March 2-6, 2011 You’ll find everything to improve operations, increase
efficiency, reduce recalls, maintain equipment and protect your
Las Vegas, NV brand. A world-class program with new value-added features is
already shaping up.
INDUSTRY EVENTS
EuroMold
PDx/Amerimold December 1 - 4 - Frankfurt, Germany
May 11 - 13 - Cincinnati, OH The 17th EuroMold, the world-wide leading trade fair for
Moldmaking and Tooling, Design and Application Development
Built upon the foundation of the established MoldMaking will take place Dec. 1 - 4, 2010. As the international meeting
Expo and Time Compression Expo, PDx/amerimold is a point of the industrial sector,3:42
it presents products and services,
19647_EDRO_AD 7/12/07 PM Page 1
new event experience connecting buyers & sellers from all technology and impulses for tomorrow’s markets.
aspects of the product development lifecycle.

PLASTEC East
June 8-10 - New York, NY
The largest advances in primary processing machinery,
computer-aided design and manufacturing, production
machinery, contract services, materials, molds and mold ™
components, automation technology, materials handling/
logistics, enterprise IT...and much more.
Holder Steel for improved plastics mold tooling
International Machine Tool Show 2010 Today, RoyAlloy™ Stainless steel is the preferred mold base steel
September 13 - 18 - Chicago, IL of choice throughout North America. RoyAlloy™ demonstrates
significant improvements, including enhanced machinability,
The International Manufacturing Technology Show is improved stability, greater toughness, better weldability, and
one of the largest industrial trade shows in the world, more consistent uniformity and hardness when
with thousands of exhibitors and over ninety-one compared with 420F/1.2085.
thousand visitors. The event is held every two years in
September at McCormick Place, Chicago.

PLASTEC Midwest
September 28-30 - Rosemont, IL
SOURCE the latest technologies and ideas in primary
processing machinery, computer-aided design and
manufacturing, production machinery, contract services,
materials, molds and mold components, automation
technology, materials handling/logistics, enterprise IT…and
much more.
Edro Specialty Steels, Inc.
California - Pennsylvania, U.S.A.
West: 800.368.3376
East & Midwest: 888.368.3376
Appenweier, Germany
Tel +49 (0) 7805 91579-0
email: royalloy@edro.com
www.edro.com

AMBA 17
 2010 AMBA Annual Convention Wrap
His “SMART” program is geared to help guide sales people through this
process.
S = specific
M = measu rable
A= attainable goals
R= realistic
T= timely
“You need to provide guidance for your sales people,” said Scott.
“Determine a budget for the sales person. It takes at least six months to
make a sale.”
Pick the players and their positions. Put people in sales functions where
they can be the most effective. Don’t set them up for failure.
Scott said that he’s in favor of a large base salary and small
commissions as incentives. However, he acknowledges that
commissions can create problems so give your sales people some
“wiggle room,” he advised.
Next, provide the Technology and the Tools needed to get the job done.
A good Customer Relationship Management (CRM) software program
can really help the sales people keep track of calls, follow-up, RFQs and
other sales activity. Scott recommended SalesForce.com. “Once you set
up the system, how can the sales people not do what they need to do?”
he said. “You have to know what your sales person is doing and this is a
good tracking system.”
While every company needs a good brochure, Scott recommended that
the brochure be used to say “good-bye” at the end of the sales call.
Scott also recommended that companies concentrate on the most
profitable areas for new business, and that is generally “farming” old
customers. “The goal of every sales call is to get to the next step:
1) Find decision makers within the customer
2) Make your presentation
3) Set the next step strategies – pin them down for the next step
• Do a needs assessment
• Get a request for quote
• Do the follow up
• Book some business!
Preparing Your Employees for the
Future
Ryan Pohl of eXpert Technical Training, a
company that promotes itself as “Masters
in Industrial Training and Development,
really hit a hot-button with the attendees,
as most are faced with the aging of their
workforce.
“People will make the difference in the
future of your business,” said Ryan. “They
can be the determining factor in your
success or failure. “
Ryan cited some figures: 40% of our skilled workers will retire
in the next 5-10 years. Many shops report that the average age of
their skilled workers is 53. When those skilled workers retire, mold
company owners will lose the knowledge base and the skills that those
employees have. As high schools shift away from career and technical
educational programs, and push everyone toward a four-year college
18
education, it will more difficult to find young workers who want to
enter manufacturing training or apprenticeship programs. “Their
priorities aren’t geared to trade schools or training, and much of that
is a poor image of manufacturing,” said Ryan. “There’s also a lack
of government support. That means there are fewer people in the
pipeline.”
Ryan expressed how much he loves manufacturing. “We need to restore
pride in manufacturing workers,” he said. “Finding skilled people is a
real challenge. For most industries to survive, we have to pass the trade
along to the next generation.”
Ryan pointed out that the young people coming into the trade are “very
complex” but extremely tech savvy. “They’re born with a laptop as
their first toy, so that’s a huge asset,” he said. “They’re also extremely
creative, highly flexible, and environmentally conscious. They also
expect instant rewards, but demand development over the long term.
They’re entrepreneurial, impatient, and information obsessed.”
While most mold shops are aware of the challenges facing them in
the future, Ryan said that “it’s not too late, but we have to start today
to prepare our workforce by capitalizing on their strengths, get more
youth into our shops and lower that average age.
It might be noted here that one AMBA member company, Ameritech
Tool & Mold in Mooresville, NC and Ormond Beach, FL, has a very
active relationship with the local high schools and a top-notch training
program. Steve Rotman noted that the average age at his company is 33
– 20 years less than the overall average age of 53.
Ryan said that every company needs a good employee development
plan that includes:
1) Implementing a proactive worker recruiting and hiring
program. “Don’t wait for them to come to you,” he advised.
2) Implement a structured employee training program, along
with an existing employee improvement program.
3) Identify non-skill (soft) success characteristics. List the skill-
related ideal employee for your shop. “Be creative in where
you look,” advised Ryan. “Do you like the way the young
person at Best Buy explains high-tech equipment to you?
(Demonstrates technical know-how) Always keep your eyes
open for the type of person you’ve identified that would be an
asset to your company.”
4) Then present them with solid reasons for working in the
industry. Ask them if they have a friend that might be
interested. “It all starts with you,” said Ryan.
5) Provide structured employee training. “Don’t just say ‘go
work with Charlie and he’ll show you the ropes,’” said Ryan.
“You need planned days of orientation.”
6) Provide efficient skills development that include:
• Expectations and outcomes
• Mentorship – pass down the knowledge and skills
• Apprenticeship program – “We need to take another
look at this,” said Ryan.
With respect to existing employee training or ongoing training,
there’s much that can be done in this arena. “With new technology
coming along, there’s a skills gap,” said Ryan. “Identify and fill this
knowledge and skills gap. Tie the new knowledge to the existing
knowledge whenever you buy new software or machinery.”
Provide “Lean” training. And train the long-time employees in how to
mentor the younger employees.
AMBA
Roger Klouda, president of MSI Mold Builders in Cedar Rapids, Iowa,
said that one very valuable tool that he uses is teaching the younger
employees how to mentor the journeymen employees. The younger
people have a lot of tech-savvy that they can pass along to the older
employees for who the new technology is a bit off-putting.
Ryan also suggested a “Best Practices Team” so that all employees can
learn from each other. “Current employees are your greatest asset for
your company to be successful in the next five to 10 years.”
Ryan suggested that every shop needs continuing education plans.
“The so-called professionals are always going to school,” he said.
“Continuing education helps them see new perspectives. Technology is
always changing and they need new ways of looking at it.”
Continuing education is “people maintenance,” Ryan said. “It helps
keep them sharp.”
In conclusion, Ryan said, “We have to establish our own future by
training our future. We must strategically pass on the trade.”
Tooling Technologies for the Future
Andy Bondhus, tooling engineering
manager at i2Technologies, a custom
injection molder and contract
manufacturer in West DesMoines, Iowa,
told attendees about the advances in in-
mold decorating and in-mold labeling,
that impacts the tooling and what it takes
to build molds for this process.
“Labels have finally caught on with the
in-mold labeling industry,” said Andy.
“And everyone is getting better at this
process.”
The various processes include: Compression back-molding; Film
insert molding (FIM); In-mold Decorating (IMD) and In-mold paint
film. Molds built for these processes have to be carefully designed
specifically for the process. I2Tech uses mold-fill analysis to ensure
that the design meets the requirements. The mold not only has to be
designed and built to accommodate the label but must accommodate
the automation equipment such as the robotic arm that must place the
label in the mold.
I2Tech uses static electricity to hold the pre-cut labels, which are
stacked in a magazine, in place while the mold closes. Typically, the
end-of-arm tooling (EOAT) is purchased with the mold and designed
to work together. “Getting into in-mold labeling and decorating means
quoting the whole system – it’s all driven by cost,” said Andy.
The advantages to in-mold labels is that they are permanent – they
actually become a part of the part, and are typically the same material
as the part. Arctic Cat, one of i2Tech’s customers, needed a permanent
safety label on its snowmobiles to reduce the liability that would occur
should a warning or safety label fell off and someone would get hurt
on one of Arctic Cat’s snowmobiles.
Today, labels have higher quality graphics and can be printed on
almost any substrate material. There’s also less handling with the in-
mold process, vs. the pressure sensitive labels that must be applied
by hand after the part is molded. So, obviously, in-mold labeling
eliminates secondary operations association with pressure sensitive
labels.
AMBA
It takes a lot of collaboration between all the suppliers to design and
build an in-mold labeling system. “There’s not a single project that we
do alone,” Andy stated. “It’s all a collaborative effort with the label
printers, the label makers, the robotic company, the injection molding
machine company, and the moldmaker.”
Labels have been the problem as there are not many label
manufacturers in the United States. “We’ve been in the IML business
for 10 years, and we’re on our fourth supplier,” said Andy. “We’re
always looking for new technology such as 3D graphics, which can
be tough because the pressure of the molding process distorts the 3D
image.”
Another key to designing a mold for IML is keeping the gate away from
the label. “Labels can present a problem with gating because you need a
uniform fill front,” said Andy. “Also, you need good venting in the right
area. Those are the two critical areas when building a mold for IML.”
Building Strategic Relationships With Suppliers
This panel consisted of Scott Fernandez (Vega Tool), Glenn Starkey
(Progressive Components) and Todd Schuett (Creative Evolution).
Scott Fernandez noted that it’s a “changing landscape” out there and
all moldmakers need a supply chain they can depend upon. “Seventeen
years ago we had a very focused distribution base, and a focused
product and customer base,” said Fernandez. “That has changed and
in the last 18 months, there’s been a global meltdown in our business
world. Instead of companies that have been around for decades that
had built relationships with us, those companies are gone now. Your
distributor that you depended upon may not be there.”
Fernandez said that we need to look at the landscape and rethink our
strategy. Many companies are downsizing or shutting down altogether,
which means that moldmakers are losing their technical support from
many of their suppliers, and this is impacting mold shops. “The small
distributors can’t afford to supply technical support,” he said.
Moldmakers need to look at how deep their supply chain is, and what
they provide in terms of support.
Glenn Starkey said that “it’s all about increasing sales – the top line.”
To that end, Progressive has taken on a number of application partners,
such as Roehr Tools, with it expertise in packaging tools and targeting
conversion of existing unscrewing molds.
A partner means that they provide training for engineering and sales;
provide presentation materials, make co-calls and do co-presenting,
provide newsletters, and tooling press releases, as well as provide pre-
sale engineering support and startup assistance, and more importantly
post-sale support.
19
 2010 AMBA Annual Convention Wrap
Tooling Docs, another Progressive application partner, provides mold
maintenance systems and training, and is a mold warranty resource.
“People want a mold warranty to ensure they get what they paid for,”
said Starkey.
Todd Schuett said that throughout the organization he provides “New
Manufacturing Approaches” to machine tool systems. “The real
problem we have is a culture of putting out fires,” he said. “Sales people
are less visible, but you can lean on them to learn about new things.
Through our experiences in other shops we know every-day technology
is changing. Professional sales people can keep you abreast of new
technology and how it can benefit your shop.”
Creative Technology Corporation
provides photo, video, and web
services for manufacturers. Our
mold-related legacy of more
than 30 years helps us hone in on key focus areas to tell your story with
engaging, quality images, compelling video, and concise writing. Our
depth of understanding in manufacturing techniques, coupled with a
wealth of experience in multi-media production assures you of a quality
job you’ll be proud of. Whether for advertising, articles, or documenting
your jobs, for the web, presentations, or trade shows, Creative Technology
Corporation can provide the media to help you stand out.

Schuett urged AMBA members to “take a close look at your vendors” Crystallume, a division of RobbJack,
and what they can do for you. “They’re not just being sales people but is a manufacturer of diamond coated
are partners in helping your business,” he said. “That partnership can end mills for the machining of graphite
be beneficial to us all.” o electrodes used in the manufacture of
molds. Crystallume offers the largest in-
stock selection of diamond coated tools
in the industry. RobbJack also offers
Thank You to Our Convention Sponsors & application specific carbide cutting tools
Tabletop Exhibitors for other needs in the machining of molds.

Agie Charmilles LLC

is the world’s leading DME Company is an essential
provider of machines mold technologies resource to
and system solutions customers worldwide. Through
to the mold making industry. Our products range from EDM and high- innovative new product
speed (HSM) and high-performance (HPM) milling centers to process development, global product
consulting and automation solutions. Agie Charmilles produced the first standardization and a powerful combination of in-house manufacturing
commercial EDMs around 1955 and today have the clear leading U.S. centers of excellence and strategic global partnerships, DME is helping
EDM market share due to product performance, customer support and customers succeed in changing times. The company’s standard-setting,
price. Our U.S. customer support is unmatched: 80 service engineers comprehensive product line — including hot runner systems; control
in 30+ locations, 95% live phone response and about 98% spare parts systems; mold bases and components; mold making and molding
availability. Let us help you develop and implement your strategic plan! equipment and supplies; and cold runner systems for elastomers — is
backed by expert technical service every step of the way. DME also
manufactures and sells standard tooling for the die-casting industry. Visit
Brush Wellman (NYSE:BW), a www.dme.net for more information.
subsidiary of Brush Engineered
Materials Inc., is the world’s
leading supplier of high DMS is a leading supplier and
performance alloys, providing manufacturer of mold components,
high reliability copper, copper beryllium and spinodal alloy products mold bases and related
with unparalleled global service. High Strength mold alloys include moldmaking supplies including
MoldMAX, MoldMAX XL, MoldMAX SC, and MoldMAX V® our new HD mold plaques and
for full core and cavity, core pins and hot runner components. The part identification magnets. Rep.
proven leader in developing and growing the use of high strength – high Boride, Almo, I-Mold, Exaflow, ITC, Cumsa, NSK, Dumore, Foredom,
conductivity copper alloys for molds used in the plastics industry, Brush ICS etc.
Wellman’s mold alloys are supported worldwide through a network of
Ph.D. metallurgists and experienced application engineers.
EOS, the worldwide market leader
in laser-sintering systems and
Craftsman Tool & Mold was established in
materials, offers you application-
1965 and specializes in manufacturing large, high
oriented solutions adapted to satisfy
volume, close tolerance custom mold bases. We do
your requirements in tooling for
not manufacture cavity and cores, only bases. We
rapid additive manufacturing and
work with you as a partner, rather than a competitor.
large-pot production. Direct Metal Laser Sintering (DMLS) solutions
Other services Craftsman Tool & Mold can provide
from EOS create seamless built-in, conformal cooling channels that can
include large capacity gun drilling, grinding, punch
be optimized to draw off heat more rapidly and more evenly; therefore:
holders, die shoes, manifold assemblies, bolster
reducing cycle time dramatically, reducing or eliminating scrap, avoiding
plates and other specialty machining. Our customers include, but are
not limited to, plastic injection mold builders for the medical, electrical, hitting injector holes due to conventional deep drilling, eliminating
nuclear, cosmetic, appliance and automotive industries. uneven temperature levels on the cavity surface and preventing internal

20 AMBA
stresses; consequently, increasing part quality by eliminating warpage
and other defects.
Ellwood offers mold steel, mold
aluminum and value-added machining
and heat treat services from extensive
ISO 9002 facilities in New Castle, PA.
Ellwood is capable of providing Vacuum
Arc Remelted (VAR) and Electroslag
Remelted (ESR) products and is uniquely
positioned to provide these mold materials cut from stock, fast. Most tool
and moldmakers throughout the Midwest and East Coast can be reached
within one day’s shipping. Ellwood also specializes in producing custom
shaped mold steel forgings made quickly. www.ess.elwd.com
Erowa Technology, Inc. is a full service
supplier of palletization and automation
systems for the North American market.
Our productivity solutions begin
with the unique design of standard or
custom work holding products for any
combination of machining operations.
Once preset, the chucks, pallets and
WEDM tooling allow work pieces to move from operation to operation
without time consuming re-setting. Our products are manufactured to
deliver high accuracy and repeatability. Our extensive know-how in
manufacturing will guarantee the best products, on-time delivery and
competitive pricing.
AMBA
Expert Technical provides training
and education solutions for mold
building companies. We offer online
CNC and mold-making training, on-
site seminars, consultation in workforce
development, custom training program
development, and custom high-quality training and advertisement video
development.
GPI Prototype & Manufacturing
Services, Inc. is a premiere
service provider of Direct Metal
Laser Sintering (DMLS), the latest
technology in rapid prototyping and manufacturing from EOS. One of the
first DMLS service providers in the country, GPI produces metal parts for
applications ranging from prototypes to series products and production
tools. The technology is ideal for creating complex geometries that
are difficult to attain through traditional machining, such as conformal
cooling channels within tools and tooling inserts. GPI & DMLS deliver
unlimited potential for engineers to create previously impossible
solutions, embracing a new era of design-driven manufacturing.
Founded in 1958, INCOE® Corporation
designs and manufactures hot runner
systems with exceptional performance
for processing of all injection moldable
plastic materials. As a pioneer in the
plastics industry, our original patented
21
 2010 AMBA Annual Convention Wrap
design was the first commercial hot runner nozzle available. The
development and use of hot runner systems has led to the advancement
of injection molding in productivity and cost savings on a global basis.
INCOE® systems deliver the best price/performance ratio for any
molding application. Our proven DIRECT-FLO™ (DF) Gold systems are
ideal for technical part molding. QUICK-FLO™ systems are designed
with complete hot halves for hi-cavitation molding of commodity grade
resins.
Industeel is a subsidiary of
ArcelorMittal, the largest steel producer
in the world today. Specializing in
advanced technology carbon steels,
alloy, and stainless steels, Industeel
produces a line of premium mold and
tool steels: Superplast® SP300, SP350, and SP400. SP300, SP350,
and SP400 offer significant production advantages and benefits over
traditional mold and tool steels in the areas of: machinability, thermal
conductivity, welding, graining, and guaranteed hardness throughout
the block. In today’s market, this translates into improved productivity
and competitiveness for toolmakers. Superplast® products are sold and
available through an exclusive global network of distributors.
Michigan Mold & Maximum Mold,
both well respected companies in
the Southwestern Michigan area
and members of the American Mold
Builders Association (AMBA) &
The Berrien Tooling Coaltion (BTC)
merged in 2008 to establish M & M
Polishing. Together the companies have over 26 years of mold polishing
experience, giving our customers the best possible quality for all of their
innovative mold requirements. Merging together was the best thing that
happened for our customer’s high demand on fast turn-around time and
quality 2nd to none. Our master bench hands have years of qualified
experience in the fields of benching and polishing to serve all of your
needs.
Makino is a global provider of
advanced machining technology and
application support, where new thinking
takes shape for the metalcutting
industries. Makino manufactures a
full line of high performance CNC horizontal and vertical machining
centers in 3, 4 or 5 axis, as well as Ram and Wire EDM machines, for
die and mold applications. Makino manufacturing and service centers
are located in the United States, Japan, Germany, Singapore, Italy,
France, Korea, Taiwan, Turkey, China, Mexico, Brazil, and India, and
are supported by a worldwide distributor network. For more information
call 1.800.552.3288, or visit Makino on the web at www.makino.com.
MILLSTAR is a global manufacturer
and supplier of high performance
cutting tools with special focus on
manufacturing in the die and mold,
automotive, aerospace and medical
industries. MILLSTAR products are manufactured in the USA under ISO
9001 and are designed for conventional as well as high speed and hard
22
milling of die/mold steels, aerospace materials, non-ferrous metals and
carbon graphite. MILLSTAR’s very extensive range of tools offer the
latest in profile and contour milling technology, providing to the user a
competitive edge of shorter machining and through-put lead time, and
the advantages of higher milling accuracy and true, smooth contouring
results. MADE IN MICHIGAN!
Since 1972, Mold Base Industries, Inc.
manufactures quality standard and custom
mold bases; rough or finish ground plates,
also available we have a full line of Self-lube
components. Each base is built to your specs
and completed in the shortest possible lead
time. We do not precut plates enabling our
customer to have the size base that fits their
mold. Or do we stock standard bases allowing
our customers to relocate components without extra costs. Mold bases
are finish-machined so you simply install cavities, cores, and auxiliary
items, making your mold ready for testing. Nothing is too complicated
for MBI! Send your files to estimating@moldbase.com.
MoldMaking Technology magazine
is the only trade publication dedicated
exclusively to the engineering,
building and repairing of molds
as well as the management and
business issues, challenges and strategies associated with today’s mold
manufacturing facilities through technical articles and application
reviews. The magazine also presents an annual technical conference on
mold manufacturing technologies and strategies at the PDx/amerimold
event (MoldMaking Expo Expanded); its monthly e-newsletter, MMT
Insider and its Web site, www.moldmakingtechnology.com.
Osco Inc. has been providing hot
runner services to the injection
molding industry since in 1982.
Headquartered in Rochester Hills,
MI, Osco has primarily been focused
on the North American Market. The value that Osco can add to your
program is a proven hot runner system that is robust, reliable, and is
reasonably priced. All engineering and manufacturing is in the USA so
in addition to the attractive pricing, we offer responsive applications &
technical help along with a quick delivery. In addition to a wide selection
of standard systems, Osco offers innovations for special and custom
applications as well.
PCS Company is a leading full line
supplier of high quality molding
components, standard and special mold
bases, hot runner systems, custom
made products and Nano Technology
products. The industry standard PCS
Hardened Throughout Pin (made in the U.S.A.) is known for consistent
quality and strict adherence to tight specifications. Volastic Hot Runner
Systems include technology that reduces both cycle times and operating
costs, while increasing profitability. PCS Integrated Hot Runner-Mold
Base Systems simplify the tool manufacturing process and reduces
tooling cost. NanoMoldCoating and NanoCeramicMoldGrease lasts10x
longer than conventional products, solves sticking problems, increases
part quality and reduces scrap. Learn more at www.pcs-company.com.
AMBA
 Progressive Components will
present an array of recently
released products at AMBA’s
Annual Convention, including its new Plate Lock Systems and expanded
sizes of Expandable Cavities. Other featured products will include
the Friction Puller, Needle Bearing Locks, SRT Slide Retainers and
Roller Pullers from the exclusive FrictionFree™ line, the VersaLifter,
Alignment products, Date Stamps, Collapsible Cores, UniLifters® and
more. Based in Wauconda, Illinois, Progressive continues to design and
develop industry-leading standards that speed mold building and reduce
costs and downtime. Our complete catalog, including product demos,
may be viewed at www.procomps.com, or email us at sales@procomps.
UltraPolishing AMBA Ad 2009.pdf 10/6/09 3:02:05 PM

com for a copy.

Roehr Tool Corporation is a

manufacturer and supplier of
patented Collapsible Core, Minicore
and Expandable Cavity technology
for molding threaded parts or parts with undercuts, protrusions or cut-
outs. Through distribution with DME Corp. and Progressive Components,
Roehr Tool’s products are available worldwide. March 2-6, 2011
Sescoi creates software solutions
suitable for the moldmaking market.
WorkNC is the most advanced
Las Vegas, NV
CAM package for moldmaking
with 2D through simultaneous
5-Axis machining functions, including the innovative and unique
Auto-5 automatic 5-axis module for cutting deep parts with short
tools. MyWorkPLAN is the shop management program designed
around the individual job instead of the accounting system. This makes
MyWorkPLAN ideal for custom manufacturers such as moldmakers.
WorkXPlore is a 3D CAD viewer for viewing, analyzing, marking and
collaborating on 3D models. Sescoi is Manufacturing Software Solutions.

Vega Tool Corporation has been

actively selling cutting tools to the
metal cutting industry since 1967
and with the introduction of Hitachi
C
Tool Engineering to the US market
in 2001 we continue to the tradition of supplying the die mold industry
M
with innovative substrates, cutting geometries and coatings that allow our
tools to expand the limits of your machine’s potential.
Y

CM

MY

Lower costs and increase

margins when you ship with
CY

CMY
YRC! Yellow and Roadway
K have integrated to give you
YRC - the genuine heavyweight expert with the most comprehensive
network available. As a benefit of your AMBA membership, you receive
a 70% discount on qualifying less-than-truckload (LTL) shipments.
YRC offers flexible, efficient solutions, including comprehensive
regional and national coverage with a full suite of guaranteed, expedited
and specialized services. More customers rely on YRC than any other
provider. Take advantage of your YRC discount today by contacting
your association benefits coordinator at 800.647.3061 or associations@
yrcw.com. o

AMBA 23
 American Mold Builders Associ
Orlando,

24 AMBA
 AMBA
, Florida
iation 2010 Annual Convention

25
Photos ©2010 Todd Schuett, Creative Technology Corp.
 AMBA News
AMBA Receives $500 Donation to
Scholarship Fund
Adam Simons (left) of
MGS Mfg Group in
Germantown, WI, is
presented with a $500
scholarship award by
Todd R. Steinhoff of
Progressive Components.
Adam designated
the AMBA as the
Save the Dates! organization he wished
1. AMBA Fall Conference – September 28-30 to receive the funds for
For the third year in a row AMBA will be going to Washington, D.C. use in AMBAs own
for it’s Fall Conference. AMBA members will go in teams to visits their scholarship program. Progressive awarded two such scholarships at
senators and Representatives to discuss issues important to our industry the recent Plastec West trade show as part of its Tooling for Tomorrow
and their businesses. More registration information and details will be program, which promotes the education of young people entering the trade.
coming soon. Mark September 28-30 on your calendar and join the
AMBA in Washington.
More Online Seminars from AMBA
2. 2011 Annual Convention – March 2-6, 2011 1. “How Will the Federal Healthcare Changes Impact Your
The AMBA Annual convention will be held from March 2-6, 2010 in Company?”- May 19, 2010, Noon CT 
Las Vegas, NV. Expect a phenomenal lineup of topics and speakers! Set (Webinar fee:  $25 for AMBA members, and $45 for non-members.)
aside these dates for an event that you won’t want to miss! Brian Whitlock, CPA, JD, LLM, a Tax Partner at Blackman Kallick will
explain how the current Federal healthcare changes will impact your
company over the next few years as the full impact of the law phases in. 
AMBA Exhibits at PLASTEC West 2010 Brian will discuss not only 2010 and 2011 tax law changes, but he
AMBA exhibited at this will focus on the new Obama Health Care Law, including: the Small
years PLASTEC West Business Tax Credit for Health Insurance; higher Medicare Taxes;
trade show in Anaheim, Employer requirements to provide “Free Choice Vouchers”; employer
CA on February penalties for failure to provide “affordable” coverage; new information
9-11. The main goals reporting requirements and 1099 reporting for payments to corporations.
when exhibiting at
the trade shows is 2. “Rapid Prototyping Options” - June 2, 2010, Noon CT
to promote AMBA Prototyping has been around since the development of the first product.
members and the U.S. In reality, all products are just prototypes as they continue their
mold manufacturing evolution from the product that exists today to the product it becomes
industry. We also speak tomorrow.
with attendees about
membership and the AMBA Partner program. The great news is that in today’s world, the tools available to make
product development faster and better are very accessible. With
The attendee traffic at powerful and inexpensive CAD software for design combined with the
the show was some of ability to output the digital representation of the product, we’re able to
the busiest we’ve seen feed this information into rapid prototyping machines that will make
in years, and a lead list your product a reality. 
of potential mold buyers
Patrick Hunter of Quickparts will tell you how the power of rapid
was made available to all
prototyping is just a click away and will allow a designer to transform
members after the show.
the virtual, digital product into a real, physical product that can be
It’s available to download
touched, used, tested, and modified. This power has a significant impact
on the Members Only
on the overall life of the product. There are three very important points
page at www.amba.org.
that every manager and executive should keep in mind when it comes to
leveraging rapid prototyping for their product development process. 
A special THANK YOU
is deserved by the members listed below who volunteered their time to
3. “Calculating Your Shop Rate”- June 9, 2010, Noon CT
help staff the booth and assist with answering technical questions from
More details available soon. o
show attendees.

* Alan Petrucci, B A Die Mold AMBA Member Benefit:

* Matt Vuturo, GPI Prototype
* Steve Muhonen, Mold-Tech Annual Membership Directory – Listing of AMBA members
* Shawn Pecore, Prestige Mold and their specialties/markets, with circulation to OEMs through
* John Demakis, Duro-chrome direct mail and AMBA participation in trade shows.

26 AMBA
Welcome New Members
The American Mold Builders Association welcomes the following new
and returning members:
Class Tool and Die Inc.
2920 W. Main St.
East Troy, WI
Contact: Josh Rogosienski, Operations Manager
Web site: www.classtd.com
Class Tool and Die is an ISO 9001:2000 certified company specializing
in the building of investment casting tools and plastic injection molds.
The company, founded in 1992, is based in a 5,600-square-foot facility
and has nine employees. Josh said that the reason the company joined
AMBA is that they are looking to network with other mold shops and
keep up with current trends in the industry. Also, they are looking
forward to taking advantage of conferences and seminars that AMBA
provides.
Le Bac Plastic Mold Inc.
403 W. Kay Ave.
Addison, IL
Contact: Ronald Backman, President
Le Bac Plastic Mold is a family-owned moldmaking business,
specializing in working with its customers as if it were their own,
in-house mold builder. “We work to stay aware of our customers’
schedules and deadlines so they can meet their production needs on
time,” said Ron. “We combine traditional mold making with the newest
technology in an effort to be cost effective and have timely deliveries.”
Le Bac Plastic Mold’s customer base include the appliance industry,
construction, sporting goods, hand-held tools and garden tools, medical
AMBA
products. The company also worked with the U.S. Navy on a project
to develop new technology products in the energy storage and sensor
measurement fields.
Le Bac Plastic Mold was founded in 1978, and operates in a
7,600-square-foot facility, with six employees. Le Bac is a returning
member, and wanted to rejoin the AMBA to once again be part of the
moldmaking community.
R S Design
6351 46th St. N
Pinellas Park, FL
Contact: Richard Smith, President
www.RSDesigninc.com
R S Design Inc. is a manufacturer of custom injection molds, and
also does injection molding (7 presses) for a variety of markets. The
company was founded in 1990 and is ISO 9000-2008 certified. R
S Design operates in a 6,300-square-foot facility and employs 10.
President Richard Smith says that his primary reason for joining AMBA
is for networking and keeping up to date on current affairs that impact
his business.
South Coast Design & Manufacturing
160 Calle de Industrias
San Clemente, CA
Contact: Daniel Gomez
South Coast manufactures tooling for many diverse industries. They
manufacture injection molds, compression molds, thermoform and
RIM molds. They also manufacture forming dies, stamping dies and
hydroform tools. South Coast was founded in 1997, and is also a
returning AMBA member and wants to continue to support the industry. o
27
AMBA Members and Partners Exhibit at

PLASTEC West 2010

28 AMBA
Member News
B A Die Mold (Aurora, IL)
B A Die Mold was recently awarded a patent for its exclusive PERC
System, a green alternative to conventional hydraulics for molders of
threaded parts. The PERC System revolutionizes the way manufacturers
mold plastic threaded parts. It is a compact, high speed, high torque and
high precision system utilizing programmable servo motors in place of
hydraulics for unscrewing applications.
Advantages include:
· Accurate, fast and efficient core positioning with unlimited turns &
programmable speed profiles
· Virtually maintenance free
· Scheduling is not dictated by the availability of auxiliary hydraulic
equipment
· PERC’s compact size makes for fast, easy set-ups
· Eliminates messy hydraulic oils
· Complements the efficiencies of electric molding machines; allows use
of smaller presses
“Our medical OEM customers specify the PERC system for every
unscrewing mold, even when hydraulic systems can accomplish the
same ends,” states Francine Petrucci, B A Die Mold’s president.
“PERC delivers not only cutting edge molding technology, but it fits
into today’s pursuit of energy management and green manufacturing
initiatives. Just the elimination of the messy hydraulic cylinders used in
conventional unscrewing is a plus. Maintenance techs love the PERC
System and their molding facilities simply look better because they are
cleaner!”
LaserSales
AMBA
For more information on how PERC can revolutionarily improve
production times for your threaded part application, call (630) 978-4747
or visit B A Die Mold online at www.badiemold.com.
Cavaform International LLC, (St. Petersburg, FL)
Cavaform International LLC recently opened a new 22,000-ft2 facility
next to its current mold manufacturing plant in St. Petersburg, FL.
The new company, Modern Technical Molding & Development LLC,
will provide molding sampling capabilities using the company’s five
injection molding presses that range from 75-375 tonne capacity. “We
can also install a customer’s molding press up to 500 tonnes in pre-
prepared sites,” says Robert (Chuck) Massie, VP of Cavaform. “This
allows us to test and provide process documentation in any and all
aspects of an OEM’s startup needs.”
Modern Technical Molding & Development also offers training in
setup and processing the molds, inspection services, assembly and mold
maintenance, robotics integration, and part handling. “Some customers
also have us run extended parts molding to provide product for their
startup or development needs,” says David Outlaw, molding operations
manager.
Commenting on the company’s decision to open a business that reaches
further upstream with services, Massie says, “We have to provide more
services and technical support to retain our clientele. It’s not even just
a mold test anymore, but more so providing scientific analysis on the
molds we build, including process parameters, first article, and CPK
documentation.”
Cavaform, which serves primarily the medical industry, has been
providing these services for quite some time, Massie explains, but
decided to create a business unit around them. Modern Technical
29
Molding & Development is bringing in OEMs’ molding machines from
Husky, Toshiba, Engel, and Sumitomo, and is working with Arburg as
well as other injection press manufacturers. “We perform all the startup,
processing, and mold qualification on the customer’s machines so that it
becomes plug-and-play at their end,” Massie says.
Short-term plans call for the company to add two dual-purpose LSR and
injection thermoplastic machines this year. Modern Technical Molding
& Development can accommodate up to 16 presses, depending on
tonnage size.
Industrial Molds (Rockford, IL)
U.S. Representative Don Manzullo (R-IL, 16th District) paid a personal
visit to Industrial Molds’ facility on Monday, February 8, following an
invitation from Tim Peterson, Vice President of Industrial Molds Group.
The Industrial Molds Group has been active in the American Mold
Builders Association for a number of years and during the AMBA’s Fall
Conference last year in Washington D.C., Peterson was able to visit
Manzullo’s office and issue the initial invitation. “While I extended the
invitation to him as a courtesy, I never expected him to take time from
his busy schedule to actually come and tour our plant,” said Peterson.
“But six months later, after I sent a follow up email, his office called
and arranged a visit, he’s very pro-manufacturing.”
Manzullo has an office in Rockford, IL and another one in Crystal Lake,
IL, which are in the District he represents. Manzullo has always shown
an interest in manufacturing and has been acquainted with the AMBA,
since the organization began its activities in Washington, D.C. to bring
the plight of U.S. manufacturing to the attention of Congress.
“I believe Rep. Manzullo is genuinely interested in manufacturing -
coming out of Rockford you would have to be,” stated Peterson. “I think it
is important to get our members of Congress involved on a personal level,
so they can see that we do offer good paying jobs. With all the focus on
improving the employment outlook, understanding what we do and how
we do it is critical, especially among small companies that are the major
source of jobs in this country. It is well documented that the payback of a
manufacturing job vs. a service job is greater, as manufacturing jobs have
a trickle-down effect to create many more jobs.” Peterson noted that Rep.
Manzullo’s office has been very helpful to Industrial Molds, informing
the company about his plans for this local community program where
companies like Industrial Molds can hire trained people to help fill job
openings the company has available. “It opened my eyes as an employer
to the value that a program like this could provide us,” said Peterson.
Peterson noted that Congressional members from the Chicago area know
about the extensive amount of manufacturing that goes on in the area, but
seeing it up close and personal can help influence their decisions in the
House or Senate. “If everyone who has a manufacturing facility would
take their Representative or Senator through their company’s plant, when
it comes time to vote in Washington, D.C., they’ll truly understand the
impact of that vote,” Peterson concluded.
M.R. Mold & Engineering, (Brea, CA)
In February, M.R. Mold & Engineering announced the launch of its new
website, with the assistance of DezTech Consulting LLC of Huntington
Beach, CA, featuring a number of improvements to coincide with its
25th Anniversary year and to showcase its proprietary line of molding
accessories. The project was completed in only three week’s time so
that the new website would be up in time for the MD&M West show in
Anaheim, CA.
Rick Finnie, founder and president of M.R. Mold & Engineering,
opened his company’s doors in 1985 with the goal of providing
30
customers with a distinct competitive advantage over others in the
industry. The company, located in Brea, CA, first occupied a 1,500
square foot building. Today, the plant has grown to occupy 15,000
square feet including a 4,000 square foot Technology Center.
The Technology Center houses two Engel presses and one Negrabossi
press, allowing M.R. Mold to sample molds, assist in R&D, make
immediate customer revisions in material and processes, sample various
materials, and develop automation for customers’ tools.
Currently, about 50% of the molds built by M.R. Mold are for liquid
silicone molding, while 25% are for manufacturing rubber products and
25% are built for molding plastic products for various industries. Most
LSR molds are for the medical industry.
“What we offer is the depth of knowledge required to assist our
customers in the achievement of their goals,” said Finnie. “We offer
advice, make suggestions and make sure that the tools they are
purchasing are going to meet their needs in the most effective ways.”
For more information, visit www.mrmold.com
Pyramid Mold & Tool, (Rancho Cucamonga, CA)
Pyramid Mold & Tool has invested about $200,000 for a second
injection molding press, a water temperature controller and a material
dryer for its year-old technical center.
The Rancho Cucamonga-based firm now anticipates investing about
$350,000 during 2010, primarily for moldmaking equipment.
Pyramid installed and began operating the electric 220-ton Arburg
570A press, Frigel Microgel RCD60/12 dual zone high precision water
temperature controller and Maguire LPD 100 low pressure vacuum
material dryer with dry air conveyor prior to the end of 2009, to take
advantage of tax incentives, said Tony May, director of business
development and technical sales.
The Arburg has a Selogica direct controller and is equipped with
dual core pulls and RJG interface, similar to Pyramid’s first injection
molding press, a 110-ton Arburg 470A electric. The new press also has
an eDart conx process stabilization system from RJG.
The company’s tech center occupies 1,200 square feet within
Pyramid’s 31,000-square-foot building with adequate space for internal
expansion. “Our next addition will require moving a wall to expand
the [tech center] room,” May said. “The projection at that time will
be approximately 3,500 square feet.” With tech center capabilities,
Pyramid can provide in-house sampling and first articles to customers.
“Tools are scheduled for sampling seamlessly and immediately upon
being completed,” May noted. The center can sample tools as small as
single cavity unit die prototypes on the 110-ton machine and as large
as those able to fit within the 22.4-inch tie bar spacing of the 220-ton
machine.
Since mid-2009, Pyramid added three employees bringing its total to
35. “The employees were added in the shop,” May said, and included
a computer-numerical-control-machine operator, a moldmaker and an
apprentice.
South Coast Mold (Irvine, CA)
South Coast Mold, Inc. is not your typical mold shop, but a small
sub-set (niche) of the broad injection mold business since its specialty
is castings. Not only is it committed to providing the highest quality,
most reliability and best performance for the moldmaking industry in
AMBA
AMBA 31
precision castings—a worthy option for moldmakers to explore—the offered details on energy usage, available rebates and incentives, and
company also received the 2009 Energy Start Small Business Award by success stories. The energy usage history goes as far back as the start
the U.S. EPA for reducing greenhouse gas emissions through effective of the account—which makes analysis easy. The rebates and incentives
energy management practices and innovative efficiency solutions. can be a real bonus for equipment upgrades. o
Serving the aerospace, electronic, medical, marine and commercial
markets, the company has been able to boost efficiency on the shop
floor by carefully analyzing and implementing energy-saving measures. Chapter News
According to South Coast Mold President Paul Novak, three major California
events propelled him to develop an energy-saving strategy back in late The chapter has a tentative mid-June timeframe for the next general
chapter meeting. More details will be announced as soon as they
2000 and early 2001. “California had a severe electricity crisis with
are available. For more information go to www.amba.org/Chapter_
erratic supply, regional rolling blackouts and price spikes,” he recalls. Affiliations.
“In 2005, we moved and doubled our manufacturing size—which also
doubled our electric bill. Then when the global oil and energy crisis The chapter also welcomes returning member: South Coast Design and
came along in 2007 and 2008, costs increased dramatically and we Mfg. of San Clemente, CA.
realized we could no longer take electricity for granted.”
Chicago
Novak sought assistance from ENERGY STAR—a joint program of The Chicago chapter
the U.S. Environmental Protection Agency and the U.S. Department of is proud to announce
its first annual Mold
Energy that helps companies save money and protect the environment
Your Career Apprentice
through energy-efficient products and practices. The company’s website Award!  One award in
provides tools and resources that are free. Novak registered as an the form of $1,000 gift
ENERGY STAR small business participant and used programs from the card will be presented to
company’s website like “Putting Energy into Profits: ENERGY STAR an employee with one
Guide for Small Business” and “Energy Management Basics for Small or more years of on-
and Medium-sized Manufacturers.” the-job experience who
shows excellent promise
Novak also counted on Southern California Edison (SCE) for a number as a mold builder,
of tools and resources to streamline energy-efficient practices. “The mold designer, CNC machinist, or die maker. Chicago
chapter members will receive further details, including
monthly billings itemize energy usage and compare current usage with
nomination forms, deadline information, etc., at the end
the previous month and previous year,” Novak explains. “SCE’s website of May.

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Unit
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5 Sizes Up to 5000 Ton Machines Slide Elements, Latch Systems, Etc.

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10260 Indiana Court., Rancho Cucamonga, CA 91730 • Tel: 909.941.0600 • 800.432.6653 • Fax: 909.941.0190
Email: albaplas@albaent.com • Website: www.albaent.com

32alba-ad-oct2008.indd 1 AMBA
10/7/08 9:27:27 AM
The chapter also held a meeting on March 3, Scott Smith, managing
Partner of SalesPro, Inc. Presented a discussion on effective sales
Anatomy of a Better
techniques. A cocktail hour was sponsored by Cimatron. Multi-Gate Nozzle

POM

PPS
N
★ Balance RYTO
Gating “D” DIA. B
CAR
POLY
From 1.0" to 8.0"
Number of Probes
From 1 through 12
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“XT” Options ACE
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Control at ULTE
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The chapter participated in the annual Illinois Manufacturing NYLO
A Must Have When
Association’s Business Day in Springfield, IL.  The event gave business Processing High- IN
leaders the opportunity to discuss issues relevant to this industry with Heat Resins DELR
state senators and representatives.  TPR
Heater

Thermocouple
The chapter has a tentative June2 date for the next general chapter
meeting. More details will be announced as soon as they are available. Optional Carbide
Tipped Probe for
For more information go to www.amba.org/Chapter_Affiliations Wear Resistance

The chapter also welcomes returning member: Le Bac Plastic Mold of Call Us Direct
Addison, IL. (800) 499-OSCO
CRY-2883 Prelim1-1.fh11 1/15/07 3:33 PM Page 1 ★ www.oscosystems.com ★
C M Y CM MY CY CMY K
Minnesota
The chapter is hosting their annual golf outing on July 22nd at Oak Glen
Golf Course.

Southwest Michigan
In cooperation with
the BTC and the
NTMA, the chapter
hosted a Technology
Fair on February
18 at the MTech
Center in Benton
Harbor. It included
a breakfast meeting
and presentations on
advances in the industry by Dynamic International, and Kiser Tool.

AMBA
Composite
33
West Michigan
The chapter recently won the 2010 AMBA Chapter of the Year award.
They received a $5000 scholarship grant from Progressive Components
that will be given to the industry related school or program of their
choice. (See the article titled, “West Michigan Chapter Named AMBA
Chapter of the Year”, for more details)
WMI will be having their annual scholarship meeting on May 18th in
Belmont. Also, they are hosting a golf outing on August 27th in Ada, MI.
Wisconsin
The chapter held a
co-sponsored event
with SPE on February
16. Mary Perry from
the WI Department of
Commerce Business
Development Programs.
And Tim Nolan and
Bob Beard spoke on the
technical and industry
issues of “Managing
Bankruptcy through the Eyes of the OEM/Molder/Moldmaker.”
On May 18th the chapter will host a general membership meeting with
speaker Ryan Pohl. o
Why I Joined the AMBA:
I believe our AMBA membership is the most beneficial
organization we belong to. This is due to the pinpoint focus
on issues which affect the moldmaking industry and constant
stream of information from events, webinars, weekly newsletter,
legislative notifications and activities as well as the monthly
magazine. Being a non-chapter member in Oregon a long way
from most of the action, we still are engaged and kept up to date
via the AMBA media. Thanks for doing a great job for
our industry!
Jonathan Buss, Buss Precision Mold Inc., Clackamas, OR
“I joined because AMBA is the largest and best lobby group
fighting for us!”
Doug Northup, CEO, A&O Mold and Eng., Vicksburg, MI
34
News for Die Casters
NADCA Industry Awards
On Tuesday, March 23, the North American Die Casting Association
(NADCA) recognized individuals and companies for their significant
contributions to the die casting industry. A broad range of these
prestigious awards were presented at the Die Casting Industry Awards
Banquet during CastExpo‘10 in Orlando, FL.
The winners of these prominent industry awards are as follows:
Douglas R. Taylor will receive the Austin T. Lillengren Award in
recognition of his extraordinary service and loyalty. This award was
established in 1960 in memory of Austin T. Lillegren, whose devotion
and leadership exemplified unselfish service in the die casting industry.
Richard H. Bauer will receive the Herman H. Doehler Award in
recognition of his outstanding contributions to the advancement of the
die casting industry and to the art of die casting.
Allied Metal Co. will receive the Edward A. Kruszynski Supplier
Excellence Award in recognition of being a supplier to the die casting
industry that has demonstrated a long-standing record of participation
in NADCA and support of its activities. Diran Apelian will receive the
Nyselius Award in recognition of his exceptional technical contributions
to the industry.
Interzinc will receive the Gullo & Treiber Award in recognition for their
successful marketing activity, resulting in the expansion of knowledge
of die casting. In addition to these awards, the recipients of the annual
safety awards and the congress awards will be announced at the event. o
The Risks And Responsibilities Of
Hosting A Party
With wedding and graduation season in full swing, many of us are
hosting or attending parties, open houses, and receptions with little
thought as to who is liable if guests drive under the influence, get food
poisoning, damage property, or are injured on the host’s property.
A recent survey asked homeowners if they believed they were legally
liable if a guest caused an alcohol-related traffic accident after
leaving a party they hosted. Additionally, they were asked about their
responsibility if a guest was injured on the sidewalk in front of their
property or suffered food poisoning from food served at their party.
Alarming percentages of homeowners either thought they could not be
held liable or did not know the answer.
In most states, hosts can be held responsible for the actions and
negligence of their guests while attending and following such a social
AMBA
event. Many courts have found hosts liable for the damages their party
guests cause as a result of consuming alcohol at a social gathering and
then operating a motor vehicle. Most homeowner’s policies include
liability coverage for these types of events, including host liquor
liability. With many companies, however, the maximum amount of
liability that can be included on a homeowners or tenants insurance
policy is $500,000. Purchasing a personal umbrella policy for excess
liability limits may be prudent for the frequent host, especially if
alcohol is served.

A homeowner can be liable for anything that happens on their property.

Homeowners should understand that having a pool, trampoline,
recreational vehicle, or even certain breeds of dogs or exotic animals
can significantly raise their potential for liability; and may even make
them ineligible for coverage with certain insurance companies. In
some cases, an insurer may choose to restrict or exclude coverage for
undesirable risks. Any unusual or unique liability exposures should be
disclosed to the insurance company so that appropriate coverage can be
obtained.

Taken from the Spring 2009 issue of the Insurance Advisor newsletter.
o

Teens and Texting

Text messaging is cited as one of the biggest distractions for teens while
driving. We tell our teens to buckle-up and obey the speed limit, but do
we tell them to turn off their cell phones? Recent studies show that text
messaging has become just as dangerous as drinking and driving for
teens in regards to inhibiting their ability to concentrate on the road.

A recent study has shown that almost 80% of crashes and 65% of near-
crashes can be attributed to some form of driver inattention within three
seconds before the event. Add the fact that 46% of teens text message
while driving and you have a deadly combination.

Many states are taking legal action to prohibit texting while driving,
since it has been cited as the likely factor in fatal accidents across
America. Police officers state that it is difficult to enforce a texting ban
because it is often done with the phone held where it’s difficult to see.

In addition to setting a good example for your teens, here are some
guidelines you may want to consider when dealing with a teenage
driver:
• No cell phone usage while operating a vehicle.
From start to finish, Hitachi
• Consider whether or not your teen is ready at age 16 to obtain their Tool has the right cutting tools for
license. moldmakers. Designed to replace
solid carbide cutting tools, our IASM/
• Not all teens are mature enough to take on the responsibility of
driving.
ASM Indexable End Mills offer:

• Parents should set driving and car usage rules and consequences › Small Diameter sizes from Ø3/8” to 3/4”
and stick to them. (10mm to 20mm)
› One insert size for all shank sizes
• Create ownership in the vehicle by having the child share in the
› JDMT inserts ideal for shoulder cutting
cost of maintenance, gas, and insurance.
› EDMT-type ideal for low-depth, high feed rate machining
As parents, it’s important to enforce safety rules when your teen is first
learning how to drive, so that it becomes a habit. Always pull over
before using your cell phone while driving. By simply setting a good Need more convincing? Contact us for a test!!
example for your teen, you may save their life.

Taken from the Spring 2009 issue of the Insurance Advisor newsletter
o TEL: (800) 228-2969
www.vega-tool.com

AMBA 35
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36
Prompt Claim Reporting Saves Dollars
and Improves Care
Q: I’ve heard that employers should report a workplace injury within 48
hours, no matter how serious the injury. Why is it so important to report
claims within that time frame?
A: To ensure the best care for your injured worker and the highest
cost savings for you, early reporting makes good sense. Prompt claim
reporting triggers medical-management processes that can save money
and minimize the amount of time your employee is off work.
Early reporting can dramatically reduce the severity of an injury and
will result in the employee’s earlier return to work. The quicker case
managers get the injured employee to the right doctors or specialists, the
more likely the injury will be treated correctly and efficiently.
A recent study of nearly 40,000 Accident Fund lost-time claims has
shown that waiting to report a claim after 10 days costs 27.1% more
than reporting it within two days. Bottom line? By reporting an injury in
48 hours or less, you can reduce the cost to your business and increase
the quality of care for your employee.
Taken from the first quarter 2010 issue of The Workforce Forum, from
Accident Fund. o
MADE Safety Programs
IN USA
Safety programs are designed to keep employees safe in all their job
tasks and responsibilities. They are also designed to keep people safe
while performing work in accordance with the General Duty Clause
in the Occupational Safety & Health Act (OSH Act) of 1970. The act
states that it is the employer’s responsibility to provide a workplace that
is free from recognized hazards that are or are likely to cause death or
serious physical harm.
OSHA sponsors national programs every year, why not create this
for your company? Look back to 2009 to see what caused the most
problems and questions to better understand where to focus in 2010.
What were the primary nature and causes of injuries or illnesses in
2009? What body parts were most frequently injured? What department
or work area was most besieged by injuries or illnesses? As you focus
on 2010, categorize your 2009 data into major blocks of information to
find the common causes and links.
 
For example, if repetitive motion injuries topped the list of accident
causes, look to see where people are performing repetitive tasks and
take time to fully evaluate work station design and body motions. If
frontline workers do a lot of lifting, is there an opportunity for lift
assists? If there is a lot of repetitive motion involved in a given task,
is there a chance that job rotation may alter the muscle groups used
and reduce fatigue? Or if contusions are the primary cause of injuries,
are people working in tight areas with little opportunity to safely
move about? If one particular work area or department has the highest
number of incidents, consider what is making the work or the area more
hazardous than any other area. How well are safety programs integrated
into the daily operation? Are proactive safety activities performed such
as safety audits and inspections? And how well prepared are leaders to
manage the safety responsibility?
 
The key to accomplishing this is to identify the needs of the worker.
This likely involves leadership: the supervisor and/or union steward for
a specific work group or area. A successful safety program will focus
on making sure all employees have the information they need to be safe
and successful.  
Taken from the Spring 2010 issue of the Safety Network Newsletter from
Gibson Insurance. o
AMBA
 Human Resources
By: Karla Dobbeck, PHR, Human Resource Techniques, Inc.
Why Employers
Need Two Sets of
Employee Files
Retaining certain information about
your employees is required by law. Also
required is maintaining your employee’s
privacy.
For this reason, it is best to maintain two
sets of employee files. Supervisors and
management personnel should have access
to one of the files; the other should be locked up without access to
anyone who has the ability to make an ‘employment related decision’.
The first file should contain any information that is job related.
Application form and resume, training records, attendance records,
quality records, warnings, commendations, performance reviews and
anything else directly related to work are all items a supervisor or
manager might need to see and use to make decisions about promotions,
terminations or layoffs, etc.
The second file should contain medical. Items such as wage
assignments, lawsuits, requests by the department of Health and Human
Services, unemployment claims, etc. should be kept separately as
well. By keeping these records separate, you ensure that privacy laws
are followed and employment decisions are not based on protected
information.
Employee files need to be maintained for six years after termination.
At the conclusion of the six year period, employers should take care
to destroy the files so as not to release personal information about the
former employee.
Workers’ Comp. claims should be stored separately. A file should be
created and maintained anytime an employee is injured or reports a
work-related illness. These files need to be maintained for 30 years! o
Set the Stage for Success from the
First Day!
Your newly hired employees deserve the best chance for success at your
company. You can help each become a valued member of your team by
planning a well thought out New Employee Orientation.
The EEOC and OSHA require that employees receive specific training
before entering the workplace and if you are ISO, QS or TS certified,
additional competency work is also required.
Start your employees out right by ensuring they have the tools they need
to be successful. Before sending an unsuspecting new hire into your
facility, make certain he or she knows about the following:
• Administrative procedures for calling in, payroll, timekeeping
and requesting time off, etc.
• Benefits, eligibility requirements and how to access, etc.
• Safety and emergency evacuation procedures
AMBA
• Job expectations as stated on the job description.
• How to get additional information and who to see with questions,
concerns or issues.
If you want to reduce the turnover in your facility take some proactive
steps to get employees started on the right foot. o
DOL & IRS Crackdown on Payroll Issues
Over the past several months, I have received calls from companies
faced with a DOL or IRS audit. Several other consultants and benefit
providers with whom I work have seen an increase as well. And it
makes sense - as budget issues continue to plague the government, it
is only natural that agencies are looking for ways to increase revenues.
One method is to conduct more audits.
Although these audits cover several areas, there are three in particular
employers should carefully review.
Independent contractor status – If you use independent contractors,
several rules apply. For instance, the ‘contractor’ cannot do work that
your regular employees do. Examples would include machine operators
in a machine shop or bank tellers in a bank. Also, the contractor must
be free to set his/her own hour and make a profit. Tests for independent
contractors are available.
ERISA – Your group benefits such as your health and retirement
savings plans are governed by regulations. Make certain you have
procedures in place for coordinating benefits for new hires and
terminated employees, communicating benefits, making timely deposits
and holding down costs for administration.
Exempt vs. non-exempt status - Which employees are paid ‘hourly’ or
‘salary’ is not the company’s decision; instead the Fair Labor Standards
Act regulates which employees are entitled to overtime. Then, if
someone is considered ‘exempt’ additional rules apply to docking pay
and sick leave. Tests, rules and worksheets are available. Beyond these
three, don’t forget all required posters and recordkeeping requirements.
Taking a proactive step now to review your practices and get your
business house in order will help to avoid penalties and fines later. o
New Tax Credits for Employers with Fewer
than 25 Full Time Employees
The following three questions and answers are copied directly from the
IRS website. For more detailed information, please visit http://www.
irs.gov/newsroom/article/0,,id=220809,00.html?portlet=6 there are 22
questions and answers there.
Q. Which employers are eligible for the small employer health care tax
credit?
A.  Small employers that provide health care coverage to their
employees and that meet certain requirements (“qualified employers”)
generally are eligible for a Federal income tax credit for health
insurance premiums they pay for certain employees. In order to be a
qualified employer,
(1) the employer must have fewer than 25 full-time equivalent
employees (“FTEs”) for the tax year,
(2) the average annual wages of its employees for the year must be less
than $50,000 per FTE, and
(3) the employer must pay the premiums under a “qualifying
arrangement” described in Q/A-3. See Q/A-9 through 15 for further
37

information on calculating FTEs and average annual wages and see
Q/A-22 for information on anticipated transition relief for tax years
beginning in 2010 with respect to the requirements for a qualifying
arrangement.
Q. What is the average premium for the small group market in a State
(or an area within the State)?
A.  The average premium for the small group market in a State (or an
area within the State) will be determined by the Department of Health
and Human Services (HHS) and published by the IRS. Publication of
the average premium for the small group market on a State-by-State
basis is expected to be posted on the IRS website by the end of April.
Q. What is the maximum credit for a qualified employer (other than a
tax-exempt employer)?
A.  For tax years beginning in 2010 through 2013, the maximum credit
is 35% of the employer’s premium expenses that count towards the
credit, as described in Q/A-3. (03/31/10)
Because this legislation is so new, forms and detailed directions are not
yet available. HRT will continue to monitor and keep you informed.
Always contact your accountant for tax advice! o
New Tax Credits for Hiring
Unemployed Workers
Below is more information copied directly from www.irs.gov. Again, no
forms or procedures are available yet – when available, HRT will add
them to the Posters & Links section of www.hrtechniques.biz
Two new tax benefits are now available to employers hiring workers
who were previously unemployed or only working part time. These
provisions are part of the Hiring Incentives to Restore Employment
(HIRE) Act enacted into law today.
Employers who hire unemployed workers this year (after Feb. 3, 2010
and before Jan. 1, 2011) may qualify for a 6.2% payroll tax incentive,
in effect exempting them from their share of Social Security taxes on
wages paid to these workers after March 18, 2010. This reduced tax
withholding will have no effect on the employee’s future Social Security
benefits, and employers would still need to withhold the employee’s
6.2% share of Social Security taxes, as well as income taxes. The
employer and employee’s shares of Medicare taxes would also still
apply to these wages.
In addition, for each worker retained for at least a year, businesses may
claim an additional general business tax credit, up to $1,000 per worker,
when they file their 2011 income tax returns.
The two tax benefits are especially helpful to employers who are adding
positions to their payrolls. New hires filling existing positions also
qualify but only if the workers they are replacing left voluntarily or for
cause. Family members and other relatives do not qualify.
In addition, the new law requires that the employer get a statement from
each eligible new hire certifying that he or she was unemployed during
the 60 days before beginning work or, alternatively, worked less than a
total of 40 hours for someone else during the 60-day period. The IRS
is currently developing a form employees can use to make the required
statement.
Employers claim the payroll tax benefit on the federal employment tax
return they file, usually quarterly, with the IRS. Eligible employers will
be able to claim the new tax incentive on their revised employment tax
form for the second quarter of 2010. Revised forms and further details
on these two new tax provisions will be posted on IRS.gov during the
next few weeks. o
38
Tax & Business
Charting a Course to Increased
Business Value
By: Michael Bohning,
Trajectory Consulting
Most small business owners recognize
the fact that a majority of their net worth
is tied up in the company. The business
represents their most significant asset and
the best opportunity to create the wealth
required to meet their long-term personal
objectives. A Cornell University study
states that the majority of baby boomer
wealth is held in 12 million privately
-owned businesses, of which more than
70% are expected to change hands in the
next 10-15 years.
However, many small business owners spend a majority of their time
working in the day-to-day operation of the business instead of on the
challenges of growing the value of the business. These owners do not
have an exit strategy or a timeline for leaving the business and they may
not know what they need to take out of the business when they leave to
achieve their future objectives. They are content with letting business
happen instead of developing and working a plan that grows the value
of their business through its lifecycle. Then they wake up one day and
decide it’s time to sell the company or perhaps transition it to a family-
member; without ever achieving the full potential of the business they own.
So, how do we avoid such a fate?
It begins with an honest assessment of the company’s current value.
One method used to value small businesses is a multiple of EBITDA
(earnings before interest, taxes, depreciation and amortization). These
multiples will vary by industry and the type of prospective buyer. The
multiple is also dependent on other factors in your business such as the
strength of your management team, the diversity of your customer base,
or the presence of a unique technology or innovation. Your business
advisors can assist you in determining a reasonable multiple for a
simple, but materially accurate valuation.
Once you have determined a current value, you must then determine
what you want to get out of the company when you leave (target
value) and how long you have until that day arrives. The gap between
the current value of the company and your target value will set the
trajectory required to grow the value of your company over that
planning horizon. For example, an owner knows they need to sell the
company for at least $2 million in three years to meet their financial
objectives in retirement. When they calculate the current value it’s
worth $1.25 million. So, they need to grow the value at more than 15%
annually in order to reach their goal in 36 months. If the current value is
only $1 million, the annual growth rate must be more than 25%. After
completing this exercise, the business owner may decide to modify their
target value or their timeline in order to chart a rate of annual growth
that is more realistic.
Once the business owner has determined the annual growth rate
required to meet their objectives it’s time to get to work building a plan
that will help achieve their goals. The good news is that EBITDA is a
financial metric and is fairly easy to track and the financial variables
AMBA
that impact EBITDA are easily identified. They include sales, direct
manufacturing costs, manufacturing overhead, and your general and
administrative costs. These components are “levers” that must be
moved over time to make improvements to EBITDA and increase the
value of your company.
But, numbers on paper do not deliver actual results. It takes a well
formulated plan and consistent execution to successfully move these
levers and create the desired results that positively impact profitability
and the value of the company. As Laurie Benson, the SBA’s 2009
National Woman in Business Champion stated, “Growth should be
approached in a business-like manner. So why wouldn’t you want to
have a crystal clear plan about how you are going to grow, when you are
going to grow, and in what way?.”
A good place to start the planning is to understand the current situation.
This includes benchmarking the company financially and operationally.
Financial benchmarks are easy to find and use, including ratios
measuring profitability, liquidity, leverage, and other key management
elements such as inventory and receivable turns. In most cases good
data is available specific to company’s industry and size.
Operational benchmarks are a bit more subjective and are usually based
on best practices rather than metrics. Most companies have made and
continue to make efforts to realize operational improvements through
initiatives such as ISO certification, lean enterprise, and six sigma
initiatives. However, companies must also assess other key areas within
their organization including sales, marketing, supply chain, accounting,
workforce development, and technology. Improvements in these areas
will boost financial performance and increase company value.
Benchmarking current financial and operational performance provides
a starting point in prioritizing the opportunities for improvement
NO STRINGS ATTACHED.
AMBA
available to the company. Those areas that show the largest gap
between current performance and the benchmarks represent the
greatest potential to positively impact a company’s future profitability
and value. For example, a $5 million company may find that its gross
margin percentage is 2% lower than the industry average. If that
company increases gross margin up to the industry average they will
add $100,000 to the bottom line and increase the company value by a
multiple of that amount. A company may find its employee turnover rate
is much higher than its peers. By reducing its turnover the company can
improve its bottom line through decreased personnel administrative costs.
Once the priorities are identified, the company’s management team
works together to develop future goals in each of these areas. These
goals must be measurable and include a meaningful timeline for
completion. The team completes more detailed planning to develop
several action items to be executed over time in pursuit of each
separately stated goal. These action items are assigned to members of
your management team and include timelines for completion.
In order to ensure that the company is executing against its plans, the
management team should meet at least monthly to analyze financial
and operational performance. Members of the team will report
progress against specific activities included in the plan and discuss any
modifications or changes that should be considered. Remember that
business planning and business plans should be a dynamic process.
Business conditions change from month to month and the planning
process and its execution should be flexible enough to accommodate
these changes. Company benchmark analysis should be updated with
actual financial data, operational performance statistics, and new
industry and other comparative data as it becomes available.
A savvy owner understands the value of their business will not grow
on its own. It takes a well-managed process for business planning and
The specialty steel industry is not as big as some
may think. In reality, buyers only have 2 choices
when it comes to specialty steel suppliers in
North America.
One supplier is posing as three separate compa-
nies, but operates as a joined enterprise. And the
other is a bit more nimble.
Ellwood Specialty Steel is the number-one choice
for fast service and faster delivery, on the day
promised or earlier. Whether you need a quote or
have a question, ESS stands ready to meet and
exceed expectations, every time.
For more information on how to avoid the 3-headed
enterprise or to get a fair and independent quote,
please visit http://nostrings.elwd.com
Ellwood Specialty Steel - Ready and Reliable.
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39
execution to drive growth in company value and navigate the course
toward future goals and objectives. So, instead of waking up one day
and deciding it’s time to sell, smart business owners sleep well knowing
what they need to accomplish and how they plan to achieve it.
For more information contact Mike Bohning at HSMC Consulting, LLC.  1. There is NO income tax recognized when the contribution is cash
Website is hsmcpa.com.  Phone is 816.525.9699. o
FLPs and How They Work
The Family Limited Partnership (FLP) is a partnership consisting of general
(control) partners and limited (nonvoting) partners, which is flexible and
thus can be amended to meet the changing needs of family. The FLP fits
most situations as the centerpiece for tax avoidance planning, and an entity
to place such assets as real estate, equipment, marketable securities and
closely-held businesses.
The FLP has become extremely popular as a planning tool due to our
progressive income and estate tax systems, to facilitate ease of asset
management and the flexibility of partnership laws that can be changed as
families and situations change. Additionally, the FLP allows its members to
leverage the assets by using reasonable discounts.
How to begin and how it works
John and Carol have accumulated various types of real estate (worth
$6 million) during their lifetime in Illinois, Iowa, and Missouri. Their
holdings include farm land, commercial rental property, resort property and
residential rental property. John and Carol collect the rents, keep their own
books, and contract with third parties for the maintenance and repairs on the
residential properties. The tenants of the other properties are responsible for
all such items under “triple net leases.” John and Carol have five children
and eighteen grandchildren spread throughout the country. John and Carol
have a number of concerns. They would like to:
1. Preserve the real estate values through proper coordinated
management, after their lifetimes;
2. Allow the children to be able to diversify the real estate holdings
over time in an orderly manner;
3. Minimize potential conflicts among the children;
4. Help their children and grandchildren financially; and
5. Lower their potential income and estate taxes.
To begin:
1. A written LP agreement is prepared. General partnership interests
have less than 10% ownership, and limited partnership interests
have 90% ownership.
2. John and Carol transfer the $6 million of real estate or closely-
held securities to the partnership in exchange for both the general
and limited partnership interests.
3. General partnership interests are retained by John and Carol for
their lifetime, while the limited partnership interests are gifted
over time to the children, grandchildren, or trusts for the benefit
of….
4. The limited partnership interests have no control value, so they
become eligible for valuation discounts of between 30-35%.
5. John and Carol, co-general partners, control investments and
management of partnership assets, and must receive adequate
compensation for their services.
6. John and Carol intend to make 23 gifts per child and grandchild
each year they are alive. Results: In the years that both John
and Carol are alive, they can gift upwards of $460,000 (23 x
$20,000) of limited partnership interests. With appropriate
discounts, 7% of the partnership can be gifted each year. If they
use their lifetime exclusion ($1 million each going up to $3.5
million in 2009) nearly 40% can be transferred TAX-FREE in the
first year.
40
If we consider a 4% growth on assets within the partnership in 10 years, it
would take John and Carol 12 years to transfer $8,875,000 tax-free.
How is the partnership taxed?
or appreciated assets to the partnership. (Exception: If more than
80% of the assets consist of stocks, bonds, treasury securities,
then capital gains are taxable.)
2. Each item of income or loss flows through to the individual
partner, regardless of the distribution of cash or property in
accordance with the terms of the partnership agreement.
3. Partnership allocation of income or loss must have a substantial
economic impact upon the capital accounts of the partners.
4. What is this capital account? Partnerships must maintain books,
which trace the relative investment of capital of each partner.
This is the capital account. Thus, your capital account is
increased or decreased by the tax cost of what you contributed to
the partnership and your percentage of income or loss.
The Passive Loss rules known as the “passive loss limitation” rules
basically state that losses from any investment in which you do not actively,
continually, and materially participate cannot be used to offset any type of
income except income from other similar investments. The General Rule
for all real estate rental income is treated as a passive activity, even if you
participate in managing the property. Exception: If your adjusted gross
income is less than $100,000, you can deduct up to $25,000 of losses as
long as you actively participate in the rental activity and have at least a 10%
ownership in it.
How the passive loss rules impact partnerships
Losses and credits not deducted in the current year are carried forward and
treated as deductions and credits from passive trade or business activities in
the following year. Losses from a particular passive activity are allowed in
full when you dispose of your entire interest in that activity.
One example of FLP
C Corporation Asset “Roll Out”. Regular tax-paying corporation (C
Corporations) are also permitted to create freeze interests (i.e., cumulative
preferred stock). However, very few C Corporations use this strategy. In
order to pay the preferred stock dividend required under Chapter 14, the
corporation must earn income, pay tax on the income, and distribute the
dividend to the preferred stock shareholder. The preferred stock shareholder
must then pay a second level of income tax. The partnership freeze has a
significant advantage over the preferred stock recapitalization, or double
taxation, since it avoids one level of income tax. A C Corporation roll
out involves the transfer of the corporation’s assets into a partnership in
exchange for a preferred interest in the partnership. The preferred interest
acts to freeze the value of the older family members’ interests. Younger
family members holding common limited partnership interests benefit from
the growth of the partnership.
If you want control, flexibility, keep more income, liability protection,
estate and gift tax advantages, you must seriously consider the use of the
FLP.
This article appeared in Mike Henning’s Family Firm Advisor
newsletter, for more information our company, visit us at our
website: www.mikehenning.com, email: hfbc@mikehenning.com, or
call (217)342-3728. Mike Henning is a nationally and internationally
respected consultant and speaker on family business issues. o
AMBA
Bankruptcy – Advantages & Disadvantages
If bankruptcy is the only viable business solution, a business generally
can use two types of bankruptcy proceedings. Under one, the business
is liquidated, so that at the conclusion of the process the business
no longer exists. Under the other, the business is reorganized and,
hopefully, comes out of the bankruptcy as a viable business structure.
Each type of bankruptcy has its unique set of advantages and
disadvantages.

Chapter 7—liquidating bankruptcy. The biggest advantage to

filing bankruptcy to liquidate is that the debtor gets a fresh start. All
dischargeable debts are eliminated, and the creditors are absolutely
prohibited from going back to the debtor to try and collect the debt.
In addition, the liquidation is orderly when under the supervision of
a single, independent third party. The debtor’s assets are marshaled,
the creditor’s claims verified and accepted, the property sold, and the
proceeds distributed based on the priority of the claims. Creditors
cannot increase their take by taking preemptive collection action. In
fact, under the preference rules, payments made to a creditor within 90
days of filing the petition can be recovered from the creditor.

The court will also ensure that a reasonable price is obtained for the
assets, thus maximizing the value received. This can be particularly
important when there are co debtors or other guarantors that have an
obligation to pay the debt if the debtor cannot. The debtor is spared the
costs of responding to multiple collection actions, including lawsuits,
since the bankruptcy court has jurisdiction over the entire case.

But Chapter 7 has disadvantages as well. Perhaps the biggest

disadvantage is the cost. Bankruptcy is an expensive process, and the
monies paid in professional fees, filing fees, and other costs could
arguably have been better spent in reducing the debtor’s liabilities.
This may be particularly true when there are few creditors or when
related parties have agreed to guarantee the debtor’s liabilities. Another
disadvantage is the time and effort of the bankruptcy process. Since the
court will direct the liquidation, it is the court, not the debtor that sets
the schedule. If the creditors are also arguing over various issues, the
time it takes to liquidate can be increased. This can prove to be
inconvenient and frustrating, particularly if the debtor is trying to
operate a new business.

Chapter 11—reorganization. The biggest advantage to using Chapter

11 to reorganize a business is the ability of the court to control the
process. The debtor is given breathing room and is normally left in
charge of the business. The debtor is also given the opportunity to
develop the reorganization plan free of creditor pressure, although
the creditors must ultimately approve it. Furthermore, the automatic
stay provisions prevent creditors from taking legal action outside the
bankruptcy reorganization that could harm the debtor or jeopardize a
successful reorganization. Unfortunately, many reorganizations simply
do not work and end up converting to liquidating bankruptcies. The
main disadvantage of Chapter 11 is the cost of the proceedings and the
oversight that will be provided by the court and creditors. The debtor is
under a duty to the court and the creditors to operate the business and
must seek approval for any action outside the course of business. The
debtor effectively operates in a fishbowl, which can be an unpleasant
experience since most business owners are not used to having every JEM
decision scrutinized and second-guessed. Obviously, tax and legal
advice should be sought when contemplating bankruptcy. Please your
ENTERPRISE, Inc.
A Cut Above the Rest
tax professional for further guidance on this topic.

Taken from the February 2010 issue of the Tax & Business Alert. o

AMBA 41

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42
College Costs Keep Skyrocketing
The cost of attending college continues to climb at an accelerated rate.
The College Board (www.collegeboard.com) reports that 2009–2010
tuition and fees have risen significantly: private four-year colleges are
up 4.4% (to an average of $26,273) from 2008–2009, public four-year
colleges are up 6.5% (to an average of $7,020) from last year, and even
public two-year schools are up 7.3% (to an average of $2,544) over the
prior year.
The average surcharge for full-time out-of-state students at public four-
year institutions is $11,528. However, the report indicates that $168
billion in financial aid is available, and about two-thirds of all full-time
students receive grant aid (not counting loans or work-study programs).
The College Board estimates that, on an annual basis when tax benefits
are included, students at private four-year schools received an average
of $14,400 in aid, students at public four-year schools received $5,400,
and students at two-year schools received about $3,000.
If you have children or grandchildren who are planning to attend
college, let your tax professional help you develop a savings plan
to cover those costs and show you how to take advantage of the
appropriate federal income tax incentives.
Taken from the February 2010 issue of the Tax & Business Alert. o
Business Success Strategies
Taking Out Credit Insurance on
Business Receivables
By: Susan Brown
Taking out a credit insurance policy on customer receivables is an
important risk management tool for businesses that reduces exposure
to bad debt and helps to stabilize cash flow. Generally, credit insurance
is targeted to big businesses with an extensive, often multi-national
customer base. But under difficult economic conditions, even smaller
businesses should consider using this insurance product as part of their
risk management strategies.
What is credit insurance?
Credit insurance (also known as trade credit insurance) is an insurance
policy that protects the insured business from clients who fail to pay
their invoices due to insolvency or bankruptcy. Credit insurance usually
covers a portfolio of the business’ customers. But it is also possible to
cover single transactions or trade with only one customer. Moreover, a
business can insure against the chances that a customer will refuse to
accept the goods that have been produced.
Though coverage varies from company to company, credit insurance
policies generally cover about 90% of the insured debts as long as the
insured business maintains a credit limit on each of its customers.
The premium charges for this product generally reflect the average
credit risk of the insured group of customers. It should be noted,
however, that credit insurance premiums vary greatly depending on
the size of a business and its industry as well as on the credit terms
that the business extends to its customers. Payments are made on a
monthly basis and are calculated as a percentage of monthly sales or as
AMBA
a percentage of all outstanding receivables. Many companies choose to
pass these costs on to their customers.
How credit insurance on receivables can help a business
Credit insurance provides an all important safety net that protects
businesses from the financial strain of a customer’s protracted default,
insolvency or bankruptcy. Though this can be a great benefit on its own,
this “safety net” becomes all the more important when a company must
do business within a weakened domestic or global economy.
Moreover, to protect their own interests, credit insurance companies
have access to an enormous amount of financial and economic data. It
is common for a credit insurer to advise a company on whether or not it
should do business with a particular customer or region.
Finally, when used properly, credit insurance can be an important
element in a company’s debt management strategy, ensuring safe
and steady growth. In short, credit insurance is an important risk
management tool that should be considered among businesses big and
small.
Taken from the March 2010 issue of The Stellar Journal. o
Employee vs. Independent Contractor -
Brief Review of the Rules
Classifying a worker as an employee versus an independent contractors
is not always clear. This classification will impact the amount of tax
that you pay as well as affect the additional costs a business may incur
(most of these costs could be employee benefits rather than payroll
taxes). The first step in determining how to treat payments that you
make for services provided is to determine which category an individual
falls into: statutory nonemployee, statutory employee, independent
contractor or employee.  The key to making this decision is to consider
all factors in the relationship between the service provider and the
business, to consider the extent of the right to direct and control the
worker, and lastly, to document the factors that are used in making the
determination.
1.  The first step in determining the classification of a worker is to test
for statutory nonemployee occupations. There are two categories of
statutory nonemployees: direct sellers and licensed real estate agents.
These individuals are treated as self-employed for all federal tax
purposes if:
• Substantially all payments for their services as direct sellers or real
estate agents are directly related to sales or other output, rather
than to the number of hours worked    request for a lower price on shipping, but as we talk with shippers, we
• Their services are performed under a written contract providing
that they will not be treated as employees for federal tax purposes  use transportation and work with service providers, most companies
If your worker fits into the above categories then he or she is considered
an independent contractor.  However, this is intended to be a rather
narrow class of employees.
2.   The statutory employee classification is only relevant to a few
classifications of employees. Even if workers are classified as
independent contractors under the common law rules, they still may be
treated as employees by statute for certain employment tax purposes. 
• Compensated corporate officers are considered statutory
employees for Federal Income Tax Withholding statutes.
• Compensated corporate officers, agent drivers, full-time traveling
AMBA
sales persons, full-time life insurance sales persons and home
workers are considered statutory employees for FICA tax statute
purposes.
• For FUTA statute purposes all workers mentioned above for the
FICA statute except full-time life insurance salespersons and home
workers are statutory employees for FUTA purposes.
3.  Workers are usually considered employees when the employer
controls what services they provide and how they provide them under
common law rules. If the worker is indeed an employee, then the
employer has the right to control the manner in which services are
performed.  Common law rules, or factors to consider when classifying
an employee are detailed in the following link. See the Common Law
rules at http://www.blackmankallick.com/articles/2010/02/20-factor-
common-law-test-for-employee-classification/index.php. Note the IRS
has combined these into three broad classifications.
4.  A worker may be classified as an employee under the tests noted
above but still be properly classified as an independent contractor for
payroll tax purposes because of a provision in law known as Section
530 relief.  
To qualify for relief under Section 530 the employer must satisfy
three conditions: Reasonable Basis, Substantive Consistency and
Reporting Consistency. First you have to be able to confirm that you
had a reasonable basis for treating your workers as contractors and not
employees. To confirm this you can provide the IRS with a court case
about Federal Taxes, a ruling issued by the IRS that you followed, or
other “evidence” that the IRS had previously audited your business with
respect to this issue and made no changes. You may also show that you
relied upon reasoned advice of a business lawyer or accountant (just
their statement on its own won’t work).   After a reasonable basis is
proved, you must show that your business treated both the workers in
question and any similar workers as independent contractors and have
been consistent in such treatment over the years.  The last requirement
that must be met is the reporting consistency; you must have filed all
required federal tax returns consistent with your treatment of each
worker as an independent contractor.
Taken from the February 2010 issue of the Blackman Kallick 2010 Tax
Highlights. o
10 Ways to Reduce Supply Chain Costs
Companies are under pressure to design and execute an efficient,
productive, predictable supply chain, working in a business
environment that is creating unprecedented challenges. Shippers often
ask us how they can save money. Most frequently this comes as a
often find that simply lowering the transportation price is not always
the best way to lower overall costs. In fact, by understanding how they
can lower their costs beyond what they could by simply finding a lower
price. What follows are the ten ways we have seen companies reduce
their supply chain costs beyond a lower price for shipping:
1. Check with your association. AMBA has partnered with YRC
to bring you shipping benefits that leverage the full scale of the
association, passing savings along to you. It comes as a benefit of
your paid enrollment, and usually saves thousands of dollars per
year on shipping. Enroll in the YRC shipping program at www.
enrollhere.net to take advantage of your discount.
2. Properly complete the bill of lading. The bill of lading (BOL)
states exactly what is being shipped, where it’s coming from, and
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44
where it’s going. It is important to accurately complete the BOL
to insure your shipment is not delayed or acquire extra charges.
One of the important fields on a BOL is freight class. Freight
classes are rough estimates of a product’s density and value.
In general terms, the more dense a product, the more favorable
the transportation rate. Likewise, the lower a product’s liability,
the less a provider will charge you to move it. Accurately
noting the shipment’s class and release value on the bill of
lading ensure that you are paying the lowest rate possible for
your transportation. Class a shipment too high and you’ll pay
unnecessarily for product density less than what yours actually is.
Class it too low, and the shipment may be subject to an inspection
charge to correct the mistake. If you have any questions, contact
YRC customer service to verify that you are classing your
shipments correctly.
3. Time is money…so pay the attention to your shipping that
will eliminate delays. Label your shipments properly, so that
the consignee (destination and recipient) is unmistakable
and impossible to miss, regardless of the angle from which
a dockworker is looking at your shipment. On international
or cross-border shipments, make sure that the appropriate
paperwork has been completed and is moving with the shipment.
If you have questions on how to prepare a shipment, YRC is
more than willing to help.
4. …And money is time. If a shipment doesn’t need to arrive the
next day, don’t ship it overnight. In other words, communicate
with the receiver of the shipment to understand exactly when
it needs to be there, and ship based on that schedule. While
you may hear, “I’ve got to have it”, your customer may mean,
“I’ve got to have it, no later than Monday after next.” Knowing
the urgency will help you save costs from unnecessarily over-
delivering on a promise.
5. Make the carrier your customer service agent. Using my.yrc.
com, you can establish automatic email notifications for both you
and your customers when shipments pass major status events,
keeping everyone associated with a transaction up to date on
its fulfillment. Some services also have a proactive notification
capability. The carrier will monitor your shipment’s status and
inform you when a possibility arises that it might not arrive on
time. Finally, most carriers have an arrival notification service.
It’s not likely free, but it will be less expensive than a redelivery
charge for a consignee that wasn’t present to receive their
shipment on the first delivery attempt. Use YRC’s free my.yrc.
com and 800-610-6500 services. Available 24 hours a day, these
services save you time and give you complete visibility of your
shipments.
6. Package products properly to avoid damage. While damage
happens from time-to-time, you dramatically reduce the
likelihood that it will happen when you ensure the shipment is
packaged, stacked and seated on the pallet properly. Damage
from poorly packaged or stacked product is preventable, and
eliminating it reduces delays in fulfillment, claims costs and
administrative costs, and improves customer satisfaction.
7. Carpooling for shipments. Often, your shipment will not
need the space of a full trailer. Shipping less-than-truckload lets
you share space with other merchandise moving to the same
destination in order to reduce the cost for each shipment that
rides. Even if you need your shipment to be separated from other
products, innovative solutions such as YRC Sealed Divider™
allow your shipment to travel behind a secured bulkhead within a
trailer, so that you still only pay for the space you use.
AMBA
 8. Understand your true supply costs.
If your supplier adds freight costs to your orders, you can request
that they bill you collect so that your discount applies to the
shipments. It’s not uncommon for suppliers to up-charge their
shipping costs to increase their margins on customer orders. Have
the supplier run a quote without shipping costs and comparison
shop using your available discount to see if you’ll benefit from
this method.

9. Don’t forget about accessorials.

Accessorials are services provided to you in addition to the
linehaul transportation. These include lift gate trailers, residential
delivery, limited access delivery, shipment notification,
HAZMAT, and COD. You can save time and money by choosing
the needed accessorials for your shipments. For example, if
you’re shipping to a location without a dock, make sure that a lift
gate trailer is requested. If the request is not made, redelivery fees
will apply and the delivery of the shipment will be delayed.

10. Consider consolidation. If you ship many parcel-sized

shipments to the same destination, consider whether you could
combine them into a single less-than-truckload shipment to save
on multiple parcel shipping charges. If your service requirements
to your customers allow for it, overall cost will generally go
down.

These ten ways have helped many companies reduce their supply chain
costs beyond just a lower price for shipping. Now that you’ve seen how
to use transportation efficiently and work with service providers, you
can start lowering your costs with YRC. For more information, please info@wi-engraving.com
call 800.647.3061. o

Peek at Your Business’ Rating! - Compare

to Local Peers Looking to build a better mousetrap?
Here is a very interesting website:  www.yelp.com, INC Magazine Let
Wisc_Engraving.indd 1 DMS provide the innovative bait. 10/23/08 1:33:02
just featured an article about this start-up founded in 2004 by two
20-year old guys. According to INC, Yelp is “the rambunctious and Proudly North American owned & operated
burgeoning customer-review website, (which) can make or break a
Experienced personal service matters…
business...” Over 35 years and continually expanding to serve you better.
 
We recently used this site to get a pulse on the airline, Air India, as
our family is planning to travel to Germany this summer. Air India is
offering round-trip rates of $860 compared to $1300 for other airlines.
When reading the reviews, you get a sense of truthfulness . . . (even I
though there are always some that seem too extreme...) N
C
S
  U
U
S
Although Yelp is used most popularly in the metropolitan areas, it T
L
A
is slowly moving to rural areas as well... Check it out to see if your O
T
M
business has been “yelped!” O
R
  C
U
Customer reviews can be a “scary” thing, but they can be managed with T
B
O
the tools that Yelp provides along with some good customer service. A
Yelp.com owners want to be sensitive to business owners’ concerns R
D
and provide the ability for owners to respond privately (or publicly) to
reviews. The article told of one business owner who through making a
private apology yielded a customer rating from a 2-star to a 4-star.
 
It is now easy for our customers/clients to “rave” or “complain” on the
web. Just being aware of “Yelping” is important in business today! o
Thank you and welcome to our AMBA member customers.
We greatly appreciate your ongoing support.

For Breaking News and the Latest AMBA Activities DMS (Windsor, ON) • DMS (Schaumburg, IL) • DMS (Fountain Valley, CA) • DMS (Taunton, MA)

1-800-265-4885
Be sure to read the Weekly Beat email News Bulletin & Market Report! www.dmscomponents.com

AMBA 45
 M & M Tooling Inc.
CNC Machining Specialist Your Source!
Specializing in Mold Shop Overflow Work
Custom Mold Bases
With a personal touch
M&M Tooling Inc., is a complete Custom
Mold Base manufacturing facility with
capacity up to 35” x 80”. We employ top
journeymen mold-makers, utilizing Mazak
CNC machining centers maintaining tight
tolerances, to achieve high quality results.
M&M Tooling Inc’s mission is and always
will be, to provide follow-through on commit-
ments to our customers, with personal
attention that exceeds expectations.
“Where Your Success is Our Business”
395 E. Potter St.
Wood Dale, Illinois 60191
Phone: 630-595-8834
Fax: 630-595-6806
Web: www.MMTOOLING.com
Email: MMTOOLING@aol.com
Member
www.pcs-company.com | P: 800-521-0546 | www.buyatpcs.com | F: 800-505-3299 | sales@pcs-company.com
46
Advertiser’s Index
Alba Enterprises, Inc ....................................... 32
Alliance Laser Sales.......................................... 29
Alliance Specialties............................................27
Bico Steel Service Centers.................................47
Crystallume Engineered Diamond.................. 33
CVD Diamond Corporation .............................41
DME Company................................................. 42
DMS...................................................................45
Duro-Chrome Industries .................................21
Edro Specialty Steels, Inc. ............................... 17
Ellwood Specialty Steel.....................................39
A. Finkl & Sons Co........................................... 11
Graphic Products North America.................... 12
The Gund Company . ........................................36
Hasco America.................................................... 9
Incoe Corporation.............................................. 7
JEM Enterprise, Inc. ........................................41
M & M Tooling................................................. 46
Makino.............................................................. 31
Millstar, LLC..................................................... 44
OMNI Mold Systems, LLC............................... 48
Osco ..................................................................33
PCS.....................................................................46
Proceq USA, Inc. . .............................................. 9
Progressive Components................................... 2
Rocklin Manufacturing Co. . ........................... 36
Ultra Polishing.................................................. 23
Vega Tool Corporation..................................... 35
Wisconsin Engraving Co., Inc. / Unitex.......... 45
Yellow Transportation, Inc. .............................14
AMBA
 SINCE 1896

BICO STEEL SERVICE CENTERS

BICO AKRON, INC. BICO MICHIGAN, INC. BICO SOUTH, INC.

Mogadore, Ohio Grand Rapids, Michigan Spartanburg, S. Carolina
330-794-1716 616-453-2400 864-595-1025
800-321-0983 800-962-4140 800-998-1025
AMBA
Fax: 330-733-7189
plate@bicoakron.com
Fax: 616-453-2929
plate@bicomichigan.com
Fax: 864-574-4140
plate@bicosouth.com 47
American Mold Builders Association PRSRT
U.S. Postage
P.O. Box 404
PAID
Medinah, IL 60157-0404 Medinah, IL
(Change Service Requested) Permit No. 20

• (2) New series of slides

• A total of (18) new sizes
• In stock ready to ship
• CAD files are available on our website
• Call for more information

OMNI Mold Systems customers have been asking for more size options for our Versa-Slides®.
We have listened and are now stocking two new series (45 series) and (55 series).
• The (45 Series) will fill the gap between the 40 and 50 series slides with a 4.375”
slide face width.
• The (55 Series) will fill the gap between the 50 and 60 series slides with a 7.125”
slide face width.
That’s 18 new sizes in all! No more need to custom build those in between sizes.
Proudly made
in the USA
OMNI MOLD SYSTEMS ™

Toll Free Ph 888-666-4755 www.omnimold.com

48 Toll Free Fax 888-816-2850 sales@omnimold.com AMBA