The Network News March/April 2012 Tri-State Manufacturers’ Association Newsletter Company of the Month For over 50 years, Alexandria Technical & Community College has provided education and training to help manufacturers stay competitive. When ATCC opened its doors in 1961, there were only three programs: carpentry, farm equipment mechanics, and machine shop. Today students have the opportunity to enroll in a variety of manufacturing programs including: mechatron- ics, mechanical design & engineering technology, machine tool technology, and welding technology. Over the years, ATCC has developed a great reputation and companies are eager to hire the students. Beyond the traditional on-campus manufacturing programs, ATCC’s Customized Training Center provides a “one-stop-shop” for manufacturing related training and mentorship needs. The vision of ATCC’s Customized Training Center is to provide cus- tomer centered, industry driven workforce solutions through dedicated people focused on providing services that exceed customer expectations and provide exceptional value. Last year ATCC’s Customized Training Center served 4,378 students, 68 separate business clients, and delivered approximately 54,700 hours of training. All of this was achieved in one year; imagine how many people and companies have received assistance in the past 50 years! There is no end to the training that ATCC’s Customized Train- ing Center can provide. If they cannot fill a training need with internal resources, they will work to find someone who can. The staff at ATCC is passionate about training and education. Having the correct training is important for success. Having employees understand their job will save a company time and valuable re- sources. Consultation by ATCC’s Customized Training staff can help companies save money and time. Ask what ATCC’s Cus- tomized Training Center can do for your company. This Issue 4 TSMA General Meeting 5 Tour of Manufacturing 6 How People Make Things at MN Children’s Museum 9 TSMA Awards Grant Funding to Area High Schools 11 Manufacturing Matters 14 QCI Network Meeting 17 MMA Membership Directory Continued on Page 2 TSMA is affiliated with Midwest Manufacturers' Association.
Transcript
TheNetworkNews March/April 2012
Tri-State Manufacturers’ AssociationNewsletter
Company of the Month
For over 50 years, Alexandria Technical & Community College has provided education and training to help manufacturers stay competitive. When ATCC opened its doors in 1961, there were only three programs: carpentry, farm equipment mechanics, and machine shop. Today students have the opportunity to enroll in a variety of manufacturing programs including: mechatron-ics, mechanical design & engineering technology, machine tool technology, and welding technology. Over the years, ATCC has developed a great reputation and companies are eager to hire the students.
Beyond the traditional on-campus manufacturing programs, ATCC’s Customized Training Center provides a “one-stop-shop” for manufacturing related training and mentorship needs. The vision of ATCC’s Customized Training Center is to provide cus-tomer centered, industry driven workforce solutions through dedicated people focused on providing services that exceed customer expectations and provide exceptional value. Last year ATCC’s Customized Training Center served 4,378 students, 68 separate business clients, and delivered approximately 54,700 hours of training. All of this was achieved in one year; imagine how many people and companies have received assistance in the past 50 years!
There is no end to the training that ATCC’s Customized Train-ing Center can provide. If they cannot fill a training need with internal resources, they will work to find someone who can. The staff at ATCC is passionate about training and education. Having the correct training is important for success. Having employees understand their job will save a company time and valuable re-sources. Consultation by ATCC’s Customized Training staff can help companies save money and time. Ask what ATCC’s Cus-tomized Training Center can do for your company.
This Issue4 TSMA General Meeting
5 Tour of Manufacturing
6 How People Make Things at MN Children’s Museum
9 TSMA Awards Grant Funding to Area High Schools
11 Manufacturing Matters
14 QCI Network Meeting
17 MMA Membership Directory
Continued on Page 2
TSMA is affiliated with Midwest Manufacturers' Association.
In some cultures March was celebrated as the first month of the year since it marked the coming of spring. Through-out this month we are cautioned to be-ware of the ides of March, invited to cel-ebrate St. Patrick’s Day, and inundated with tournament madness. We have 31 days to accomplish this. So I ask – Is it all about the madness, or is there some-thing valuable we can do in March to move ourselves forward?
I think the term “madness” was attached to March because we have a tendency to get sidetracked. All of the things listed in conjunction with March are of value. It may be good to remember how Caesar’s assassination impacted the world but if I also celebrate on St. Pats, and get in-volved in all the tournaments then I may join in a lifestyle that becomes very fren-zied. Now let me add one more thing – There may be winter storms. (not this year?) Wait and see!
I just read – “The Way to do things is to begin”. The author was an American newspaper editor who ran for president in 1872, (Tell me the name and which party and win a prize. Limit 2 winners)
Think about trends. Use this month to observe and learn something that can make a difference in your business.Enterprise Minnesota has just released a 2012 State of Manufacturing. Many things stayed the same or changed slightly – think about how they impact your life and take steps to change those
E Says...Elroy Vesta, TSMA PresidentEJ Enterprises, Fergus Falls
you can. In this time of trend observing, I suggest that each person interact with an-other in and out of the company so that we listen to other viewpoints and learn.
Four things to make March a time of value not a time for madness:
Block out your time and prioritize. Each of us probably spends a lot of time on re-petitive tasks. Time blocking and prioritiza-tion are keys to productivity. Evaluate your to-do list, figure out where you have blocks of time to act and then prioritize. Keep work actions to 15 to 30 minutes each. Use these chunks of time to stay focused, minimize interruptions and work effectively.
Break inertia. Ever watch a freight train start to move? That first forward jolt takes the most energy; keeping the train rolling is much easier. Do small things to get rolling on getting caught up. Then pace yourself. It’s much easier to keep rolling along at a comfortable clip.
Always be prepared for bonus time. Bring small chunks of work with you wher-ever you go. While waiting, you’ll be able to reply to an e-mail or review materials for a meeting or project.
Reduce meeting time lengths. If meetings at your organization are normally given a 60-minute time length, start giving them 45-minutes. You’ll find that what you get done in 60 minutes you can also achieve in 45 minutes.
March –a time for Madness??
Are you LINKED to us? www.tsma.org
Date Location Event/Speaker/TopicApril 3 Fergus Falls TSMA General MeetingApril 21 Fergus/Wahp Tour of ManufacturingApril 26 St. Paul Grand View SummitMay 1 Alexandria TSMA General MeetingJune 19 Cloquet AMFA-ET Golf FundraiserJuly 18 Alexandria TSMA Annual Golf Social
Fergus Falls, MNAmerican Legion2010 Pebble Lake Road
Alexandria, MNHoliday Inn5637 State Highway 29 S.
Schedule of Events4:00 - 5:00 PM TOUR: FF High School mfg programs5:00 - 5:45 PM Social Time - Legion5:45 - 7:15 PM Dinner and Guest Speaker
Schedule of Events4:00 - 5:00 PM TOUR: Douglas Finishing5:00 - 5:45 PM Social Time - Holiday Inn5:45 - 7:15 PM Dinner and Guest Speaker
Cost: $15/person Cost: $15/person
Discussion Topic: “Commercial Vehicle Regulations: an Overview”
Discussion Topic:“An Overview of OSHA Consultation”
Discussion Topic:“360˚ Center of Excellence”
Sponsor:
RSVP by Friday, March 30Register by clicking here!
TOUR: Fergus Falls High School
TOUR: Douglas Finishing
Presenter: Dennis Creen, MN DOTDennis Creen, a Transportation Program Specialist 3 with the Office of Frieght and Commercial Vehicle Operations (OFCVO), will provide an overview of the regulations pertinent to commercial trucking in Minnesota. The presentation will touch on: • Applicability of regulations • Driver qualifications • Hours of service • The new CSA Compliance System • ... and more!
OFCVO is the agency within the MN Department of Transportation responsible for the regulation of freight and passenger transportation in the state.
Presenter: Bill Stuart, Safety Consultant Principal, MN OSHA WorkplaceSafety Consultation Bill will describe the consultation side of MNOSHA and how it differs from the compliance side, plus let attendees know about the many free safety and health programs that MN OSHA Woprkplace Safety Consultation offers.
Presenter: Jeremy Leffelman, 360˚ Center of Excellence Located at Bemidji State University, the 360˚ Manufacturing and Applied Engineering Center of Excellence is working vigilantly to educate the public about the importance of today’s advanced manufacturing industry. Jeremy Leffelman, will share information on 360˚’s current projects and successes, as well as provide insight regarding exciting future developments.
This tour will provide an understanding of manufacturing related technical education in the high school setting. Come and see what Fergus Falls High School is doing to impact the future workforce for manufacturers in the region. Members outside the Fergus school disctrict will find it interesting to compare and contrast to your local school district.
Fergus Falls High Schools students are exposed to a welding/machining shop equipped with a CNC lathe, manual lathes, mills, and arc, mig, tig, plasma, oxy/ace, and plastic welding machines. Students will participate in the tour, which will include a walk-through of the automotive shop.
Douglas Alexandria Finishing has been serving the metal finishing needs of customers since 1973. Metal finishing services include: anodizing in four dye colors (clear, black, blue, and pewter), hard coat anodize in three dye colors (clear, pewter, and black), chemical film for aluminum substrates, high and low phos electroless nickel plating on steel, rack and barrel zinc plating with clear and yellow chromate options, and powder coating in 75+ in stock colors.
RSVP by Friday, April 27Register by clicking here!
HAVE YOU EVER DREAMED OF...• Designing an ATV or Snowmobile?• Building and operating robots?• Being part of NASA?• Designing a skyscraper or bridge?
All this and more is possible with a career in manufacturing!
• Green Plains Otter Tail • ShoreMaster, Inc. • StoneL • Vector
EVENT SPONSORS:
TOUR OF MANUFACTURING
Bring a friend! Bring your family! Everyone’s invited to the Tour of Manufacturing on Saturday, April 21. Visit local companies and discover how your career dreams can come true right here in Wahpeton or Fergus Falls!
For more information, call us at 800-654-5773 or go to www.tourofmanufacturing.org Watch for our 20-pg newspaper insert coming in April!
“How People Make Things” is a traveling exhibit developed by the Pittsburg Chil-dren’s Museum and inspired by the tele-vision production, Mister Rogers’ Factory Tours. The exhibit incorporates hands-on activities in four focus areas: cutting, molding, deforming and assembly. Lo-cal readers now have an extraordinary, limited-time opportunity to expose young people (and their teachers and families) to this exhibit!
In partnership with the Minnesota Preci-sion Manufacturers Association, the Min-nesota Children’s Museum will feature “How People Make Things” from Febru-ary 18-June 3, 2012. Tri-State Manufac-turers’ Association signed on as one of several sponsoring organizations, pro-viding “scholarship funds” to help cover the cost of field trips to the museum for elementary students from west central Minnesota.
The award-winning Minnesota Children’s Museum strives to provide children birth through age ten and their families the op-portunity to learn through hands-on ac-tivities. “How People Make Things” tells the story of the people, the manufactur-ing processes and the technology used to make everyday objects. Visitors will view machines like an injection molder, die cutter, vacuum former and 3-axis mill. Raw materials will be on display, with examples of the products they become. The video wall features select tours from Mister Rogers’ show, such as “How People Make Tennis Shoes” and “How People Make Crayons.” The role play-ing area encourages children to dress up like factory workers – safety glasses and all.
“Factories in Your Neighborhood” is a dis-play board designed to help people un-derstand that many everyday items are made right here in Minnesota. Are you interested in showcasing your product or part in this display? The exhibit can accommodate up to 12 different products/manufacturers throughout the exhibit’s stay in St. Paul. For a $250 fee, partici-pating companies are invited to show-case a product/part and provide text for an 8.5” x 11” narrative – talk about your firm, about the product/part – whatever you want to highlight. Please note the display shelves are 9” deep and the view-ing window is 20”w x 15”h. “Factories in Your Neighborhood” space will be allotted on a first-come, first-serve basis, so call the office today if you are interested!
In order to maximize the exhibit’s time in Minnesota, organizers have scheduled additional activities that will expose key audiences to the exhibit. Members were invited to network with state and federal officials at a legislative reception at the museum on March 6. Educators will get a chance to view the exhibit and network with manufacturers at the Grand View Summit on April 26 - see page 10 of this newsletter for more information on that event; you are encouraged to attend!
Last but not least - we encourage you to communicate with your employees and spread the word at local meetings and events: a $5/person discount is available to all attendees who mention the “MPMA rate” at the ticket office! This discount brings the price of admission down to only $3.95/person - a great value, so please help us spread the word.
“How People Make Things”at theMN Children’s MuseumTSMA Members Invitedto participate in“Factories in YourNeighborhood”
The event listed on the side is of more than 40 focus groups scheduled across Minnesota bin April and May. These lis-tening sessions are sponsored by Min-nesota State Colleges and Universities (MnSCU), the Minnesota Chamber of Commerce, the Department of Em-ployment and Economic Development (DEED), local chambers of commerce and a number of other organizations. TSMA is sponsoring the manufacturing-focused meetings in northeast Minne-sota.
It is important that manufacturers make their voice heard! This workforce assess-ment initiative will engage business lead-ers in developing precise projections of how many workers are needed and what skills are needed in each sector through-out the state. The employment sectors covered in the first series of meetings include health care, information technol-ogy, manufacturing, engineering, energy, and transportation. Agriculture and finan-
cial services/insurance sessions will be scheduled later this summer. To identify the meeting that best fits your business and to register, go to www.mnworkforc-eneeds.eventbrite.com. There is no cost to attend.
Input from Minnesota employers will be carefully documented at these meetings. The meetings will not exceed 90 minutes, although the agenda may allow for op-tional introductions, follow-up conversa-tions, and plant tours. MnSCU Chancellor Steven Rosenstone, along with the lead-ership from other partnering organiza-tions, has made a commitment to listen and respond. Information collected at the meetings will be used to ensure that Mn-SCU is delivering the right academic pro-grams and preparing graduates with the skills necessary for the success of Minne-sota businesses, MnSCU graduates and our state economy.
Please join us at a meeting near you!
MeetingMinnesota’sWorkforceNeedsManufacturing inputcritical to ensuringa skilled workforce for your company
Tuesday, April 17Fergus Falls – West Central InitiativeTour: Innova Industries8:30 AM – 10:30 AMTo register: http://www.eventbrite.com/event/3134536483/eorg
Fisher Leasing Corporation is a 23-year old equipment leasing and sales company based in Fargo, North Dakota. We have been pro-viding tailored leasing and financial solutions to our customers in the region with a dedicated team that averages over 25 years of experi-ence in the financial services industry. Let us help you:
Conserve Capital: Free up your working capital for more productive uses.
Preserve Credit: Keep your bank lines of credit open.
100% Financing: No down payments typically required.
Fixed Interest Rates: Protects you from rising interest rates.
Tax Advantages: Defer some costs over the lease term (discuss these benefits with your tax advisor).
Purchase or Renewal Options: Off-balance sheet financing may work for you.
If you need to close an important piece of business and need a quick financial solution, call us. We’ll find the right solution!
Fisher Leasing Corporation is a 23-year old equipment leasing and sales company based in Fargo, North Dakota. We have been pro-viding tailored leasing and financial solutions to our customers in the region with a dedicated team that averages over 25 years of experi-ence in the financial services industry. Let us help you:
Conserve Capital: Free up your working capital for more productive uses.
Preserve Credit: Keep your bank lines of credit open.
100% Financing: No down payments typically required.
Fixed Interest Rates: Protects you from rising interest rates.
Tax Advantages: Defer some costs over the lease term (discuss these benefits with your tax advisor).
Purchase or Renewal Options: Off-balance sheet financing may work for you.
If you need to close an important piece of business and need a quick financial solution, call us. We’ll find the right solution!
500 40th Street SW, PO Box 9279, Fargo, ND 58106
Telephone: 701-282-2324 Fax: 701-282-2970
www.fffisher.com Technical Die-Casting, Inc.
Stockton, MN 800-525-3168www.tech-die-casting.com
From concept to finished product, Technical Die-Casting is committed to Total Customer Satisfaction. A de-voted workforce and proven Qual-ity Management System allows us to continually meet the needs of our Customers. TD offers service, tech-nology, quality, competitive pricing, and on-time delivery.
Back in college I remember a specific lecture provided by an Economics Professor. The topic was reactions of business owners to the economic cycle. Primary to the topic was how owners managed the liquidity of their business based on the economic outlook that they perceived. Essentially if hard times were expected, the owners would increase their cautionary deposit balances, conversely if good times are on the way, they may be satisfied with a smaller cautionary balance. The best run companies maintain a cautionary balance that will meet their needs without leaving too much of a valuable asset in an unproductive form.
Today, the level of your cautionary balance is critical. Interest on deposits is nil so carrying too large a balance leaves you with a non-performing asset, like a machine that just sits in the corner. Not enough of a balance and you have difficult decisions to make on who gets paid, possibly damaging your valued supplier relationships. Admittedly, many firms have access to a line of credit, using a daily sweep to keep their cash balance at $0 at all times. If you have a line of credit and banking relationship is strong with no surprises expected this works out great. If you do not have a line of credit or your banking relationship is somewhat shaky, you need to consider figuring a dollar amount of cash that you always want on hand.
The first step in developing the cautionary balance is to calculate the average amount of hard cash expenses that your firm has every month. This includes all overhead
expenses, labor, insurance, term loan payments and the like that have to be paid, not just put on a payable. Then figure your average monthly payment on your payables. In a worse case scenario where you received not one dollar from sales or your receivables, this is the amount that you would want on hand as your cautionary balance. Now depending on how concentrated your sales are to one or more clients, your outlook on the future, you may want to double this amount or more to keep your doors open in the event of the worst case. Otherwise, figure in your average collection of accounts receivable, subtract that from the cash expenses and payable figure. This will give you the amount that you can start with for a cautionary balance.
A way to confirm your balance figure might be to gather information from your industry peers. Search out your trade organization to see if they have industry figures from surveys that could be helpful. RMA, Robert Morris Associates publishes a book with balance sheet ratios and income statement ratios for virtually every industry. Your banker should have access to this information as they will use it to determine how your company performance matches up with the industry.
Having the right cautionary deposit balance provides a liquidity cushion to meet your companies needs while not leaving one of your most important assets unproductive.
Tri-State Manufacturers’ Association is pleased to announce a recent decision to award grant funding to two area high schools that are involved with projects and programs designed to increase student awareness of the manufacturing industry.
Fergus Falls High School, represented by Mike Donaghue, is the recipient of a $1,500 award to be used in support of student involvement in the “2012 SuperMileage Competition.” TSMA funds will be used to purchase tires, sprockets, starter, clutch and various other components that the team will use to build a vehicle. Spearheaded by the Minnesota Technology and Engineering Educators Association (MTEEA), the objective of the Supermileage Competition is to provide a challenge of classroom learning experiences together with ingenuity and teamwork to produce the most fuel efficient vehicle. The Fergus Falls team is registered to compete at the 24th annual event on May 14-15, 2012 at Brainerd International Raceway. Long-time TSMA member West Tool & Design is providing materials and mentoring for the Fergus Falls team.
New York Mills High School, represented by Luke Becker, is the recipient of a $500 award to be used to purchase tooling and training materials for a CMS lathe that was donated to the school via Tri-
TSMA Awards Grant Funding to Area High Schools
Building relationships between industry and education
State members UMC, Inc. and Alexandria Technical & Community College. The high school covered the cost to install necessary electrical and air lines; the purchase of tooling will enable students in Becker’s Machine Tool Technology class to use the lathe in projects like SuperMileage, baseball benches for the town fields, and pedal cars for Lund Boats.
TSMA’s Youth Involvement Committee anticipates the above named awards to be the first of many projects in the region to receive funding. Nearly thirty high schools have been invited to take advantage of free membership in the association, along with free attendance (for teachers, students, administrators) at general meetings and plant tours. High schools that join TSMA and are actively involved with the association and/or its manufacturing members are eligible to apply for funding in support of approved activities that are considered relevant to manufacturing. Manufacturers in the TSMA service region – make sure your school is aware of this opportunity!
For more information, click on the “high schools” tab at www.tsma.org or contact Sandy Kashmark at the TSMA office. Youth Involvement Committee members Bob Grove (Cosmos Enterprises) and Evan Westra (West Tool & Design) are also available to answer questions.
HOSTED By:Alexandria Packaging Machine Manufacturing ConsortiumAlexandria Technical CollegeAmerican Mold Builders Association Twin Cities ChapterArrowhead Manufacturing & Fabricators AssociationCentral Minnesota Manufacturer’s AssociationMinnesota Manufacturers CoalitionMinnesota Center of Excellence for Manufacturing and Engineering(MNCEME) Minnesota Chamber of CommerceMinnesota Precision Manufacturing Association(MPMA)Tri-State Manufacturers Association (TSMA)360° Manufacturing and Applied Engineering Center of Excellence
AGENDA:4:00 – 4:30 p.m. Registration
4:30 – 5:30 p.m. Presentation
5:30 – 7:30 p.m. Cash Bar / Appetizers, Tour the Exhibit, Resource Tables and Networking
Join us to hear keynote speaker Anne Fullenkamp, co-designer of the original “How People Make Things” exhibit at the Children’s Museum of Pittsburgh. Fullenkamp has been with the Children’s Museum since 2006, developing and designing in-house and traveling exhibits, as well as other special projects.
Following the speaker, take a tour of the exhibit. After your tour, network and collaborate with other industry leaders and educators about how to promote and utilize the exhibit for filling the workforce pipeline.
COST: $50/PERSONRegistration deadline: April 20, 2012
Seventh and Wabasha • Downtown St. Paul
651-225-6000 • www.mcm.org
Register online at: www.mpma.com
QUESTIONS:Call the MPMA office at 952.564.3041
Imagine a partnership that is win-win” scenario – one that offers high potential to show a long term return on your investment, a future talent pool for your industry, and relationships that pave the way to give back to the community. Too good to be true? Think again. The concept of adopting a school is just that!
The West Central Minnesota Dream It. Do It. campaign is pleased to announce the release of the all-new “Adopt a School Guide: A Toolkit for Employers.” Available in hard copy from the TSMA office or as an electronic link (PDF) at www.tsma.org, the 16-page guide provides a wealth of information about developing a relationship with your local school.
The Guide was developed as a tool for you, the employer, to help structure your involvement and to share with you lessons learned by other Adopt-A-School programs. Many industries, companies and employees are actively engaged with educational institutions across Minnesota. These partnerships range from providing mentors for students to outfitting a classroom with better technology. There are, of course, countless benefits to partnerships such as these – for industry and for schools.
Please keep in mind that you can implement as much or as little as you and your local school can manage – every little bit can help. These partnerships typically grow one small step at a time.
The Adopt-A-School Guide provides more than a dozen creative ideas to get you started, ranging from Robotics Competitions to providing technical expertise to donating materials or equipment. It also contains suggestions on: who you should talk to at the school; how to plan for success; developing a mission, vision, goals and metrics; managing transition; safety first; and child labor laws.
Manufacturers - take the first step today: get your hands on a copy of the all new Adopt-A-School Guide!
Midwest Manufacturers’ Association, the “shared office” serving AMFA, CMMA, MDMA and TSMA, is excited to announce a recent decision to contract with Matrix Group Publishing Inc. to produce a maga-zine specific to our organization entitled, “Manufacturing Matters. Where the true wealth of a nation is generated.”
“Manufacturing Matters” will be produced as a full color professional periodical with a distribution of 5,000 copies throughout the region. The MMA board decided to launch the magazine with a conservative annual publication cycle (versus semi-annual or quarterly) to allow time to gauge reaction from the membership and the market-place.
The board envisions the magazine as a vehicle for promoting both the individual associations affiliated with MMA and the members of these associations. The con-
tent of “Manufacturing Matters” will be fifty percent editorial and 50 percent advertising, with the MMA Publication Committee authorized to have full con-trol of the editorial content.
Matrix Group will handle advertising sales for the magazine. If you are mem-ber of AMFA, CMMA, MDMA or TSMA – you can expect a call from Matrix Group within the next few weeks inviting your company to purchase advertising space. The MMA board fully understands that the opportunity to advertise in “Manu-facturing Matters” will appeal to some and not others. The magazine is not a revenue source for the associations, but rather an initiative
Manufacturing Matters
Annual magazineanticipated for allMMA affiliates!
888.777.9552 | www.eidebai l ly.com
Your success is our number one priority. We work with you and your business team to help transform your challenges into possibilities—and goals into reality.
Call today to learn more.
Experience the Difference.
We work with companies that are ready to grow & looking for the added expertise to facilitate the development of the overall business strategy, marketing strategy, leadership development & employee training. 70% of our current clients are in the manufacturing industry.
Discover your “competitive edge” by contacting us today!
www.thecompedge.comThe Competitive Edge324 Broadway, Suite 202Alexandria, MN 56308 320-762-2515
The Tri-State Manufacturers’ Association Board of Directors met on March 16, 2012, at Big Chief Restaurant, Fergus Falls.
The consent agenda was approved, including February meeting minutes, February financial reports, and updates on Dream It. Do It., Focus Group, MN Business Day at the Capitol, TSMA website, and MnSCU Meetings.
Speakers and tours for the upcoming general meetings in April and May were confirmed.
Upon recommendation from the Youth Involvement Committee, the board approved a procedure for reviewing grant applications received from member high schools. In addition, financial awards were approved as follows: $1,500 awarded to Fergus Falls High School and $500 awarded to New York Mills High School.
Discussion was heard regarding the Roundtable Discussions held at TSMA’s general meeting in March. The well-attended meeting served as an important resource for the board; further discussion and action items anticipated at the next board meeting.
Highlightsfrom theMarch Board Meeting
It was agreed the QCI Network will stage a “stand alone” meeting this spring.
July 18, 2012, was approved as the date for the annual TSMA Golf Social, to be held at Geneva Golf Course in Alexandria at a cost of $75/person and $200/corporate sponsor.
TSMA will be listed as a co-sponsor of the Grand View Summit, scheduled on April 26, 2012, at the Minnesota Children’s Museum. TSMA will promote the “MPMA Rate” – a $5/person discount – available to anyone wishing to visit “How People Make Things” at the museum.
It was agreed that TSMA will host a legislative forum in August 2012.
A status update regarding the TSMA 2012 Goals was reviewed.
The next board meeting is scheduled at 3:00 PM at Fergus Falls High School, in conjunction with the general meeting on April 3, 2012. Board meetings are open to the membership.
Moving all types of •industrial equipmentOne piece or Entire Plant•Fully Insured •Air Ride Tractors, Trailers•Presses ~ Brakes ~Shears•CNC Machining Centers•
SATURDAY, APRIL 21, 2012 9 A.M. - 1 P.M.
HAVE YOU EVER DREAMED OF...• Designing an ATV or Snowmobile?• Building and operating robots?• Being part of NASA?• Designing a skyscraper or bridge?
All this and more is possible with a career in manufacturing!
• Green Plains Otter Tail • ShoreMaster, Inc. • StoneL • Vector
EVENT SPONSORS:
TOUR OF MANUFACTURING
Bring a friend! Bring your family! Everyone’s invited to the Tour of Manufacturing on Saturday, April 21. Visit local companies and discover how your career dreams can come true right here in Wahpeton or Fergus Falls!
For more information, call us at 800-654-5773 or go to www.tourofmanufacturing.org Watch for our 20-pg newspaper insert coming in April!
HAVE YOU EVER DREAMED OF...• Designing an ATV or Snowmobile?• Building and operating robots?• Being part of NASA?• Designing a skyscraper or bridge?
All this and more is possible with a career in manufacturing!
• Green Plains Otter Tail • ShoreMaster, Inc. • StoneL • Vector
EVENT SPONSORS:
TOUR OF MANUFACTURING
Bring a friend! Bring your family! Everyone’s invited to the Tour of Manufacturing on Saturday, April 21. Visit local companies and discover how your career dreams can come true right here in Wahpeton or Fergus Falls!
For more information, call us at 800-654-5773 or go to www.tourofmanufacturing.org Watch for our 20-pg newspaper insert coming in April!
Help us change the image of manufacturing! Please forward information/spread the word about Tour of Manufacturing to your personal network: friends, family, educators, employees, customers, suppliers, etc. The industry as a whole benefits when young people and their “influencers” are exposed to the high tech world of modern manufacturing.
We sincerely appreciate the support and involvement of the 8 manufacturers opening their facilities to the public on April 21, 2012!
Executives indicate solid industryprojections for the second consecutive year, but concern about finding qualified workers has doubled since 2011
Minnesota’s manufacturers remain con-fident in their firms’ futures, as solid rev-enue, profitability and capital expenditure projections hold steady for the second year in a row, according to The State of Manufacturing®, a major survey re-search project sponsored by Enterprise Minnesota and partners.
From a financial perspective, 82 per-cent of executives say they are confident about the future of their firms. This high confidence level is remarkably consistent with data from 2011’s survey and spreads across companies of all sizes, locations and revenues.
However, there are signs that last year’s optimism has subsided a bit. When asked whether they anticipate an economic ex-pansion, a flat economy or a recession, 32 percent of executives say they expect an economic expansion, down from 40 percent in 2011. Meanwhile, the percent-age of executives who anticipate a flat economy has increased from 49 percent in 2011 to 55 percent in 2012.
On key projections for their own firms, executives continue to exhibit much more confidence than they did three years ago, when 32 percent of executives expected their gross revenues to decline, 34 per-cent expected their profitability to decline, and more than one in three (37 percent) expected their capital expenditures to decrease. This year, only 8 percent of executives anticipate a decline in gross revenues, and only 13 percent expect a decline in profitability. Less than one in four (24 percent) executives expect their capital expenditures to decrease.
However, projections on these three in-dices are less rosy now than they were a year ago. Where 51 percent of execu-tives anticipated an uptick in gross rev-enues and 32 anticipated an increase in capital expenditures in 2011, 47 percent anticipate increased gross revenues and 27 percent expect an increase in capital expenditures in 2012. The starkest con-trast is seen in profitability projections. While 39 percent of executives expected their firm’s profitability to increase in 2011, only 31 percent expect it to increase in 2012.
Health care dominates concerns: For the fourth year in a row, health care remains by far the top concern among a list of 11 differ-ent factors. Almost seven out of 10 (68 per-cent) manufacturing executives now say the cost of health care coverage is a concern for their firm. Health care also rises to the top of the list when it comes to important factors for recruitment. Fully 50 percent of executives report that affordable health care is an impor-tant factor in attracting workers to their firm, up 11 percentage points from our first survey four years ago. Interestingly, the importance of salary and wage expectations as a recruit-ment factor has decreased over time.
Qualified worker shortage: Though it ranked fourth on the collective list of con-cerns, worry over finding qualified workers has doubled over the past year. Thirty-one percent of executives say this issue is a concern for their firm, up from 14 percent in 2011. Firms of larger size and revenue are most likely to rate this as a concern.
Shipping more internationally: The state’s manufacturing industry has hit a new high in the percentage of companies who say they ship internationally. Fully 47 percent of manufacturing executives now say their firm ships outside the U.S. Of those who do ex-port, nearly one-quarter (22 percent) report they are exporting more than they did one year ago.
Pollster Rob Autry from Alexandria, Va.-based Public Opinion Strategies (POS) conducted phone interviews with 400 manufacturing ex-ecutives, representing a geographically pro-portional cross-section of Minnesota, over two weeks in January. The poll has an er-ror rate of +/- 4 percent. The research was complemented by 20 focus groups of manu-facturing executives conducted throughout Minnesota, including the one in Fergus Falls sponsored by Tri-State Manufacturers’ Asso-ciation.
Full top-line results and cross tabulations are available at www.stateofmanufacturing.com.
Limited copies of the 335-page book, “The State of Manufacturing 2012,” are available from the TSMA office at no charge.
AMFA - ET14th AnnualGolf FundraiserTuesday, June 19Cloquet Country ClubCloquet, MN
12:30 PM Shot Gun Start
Before May 30: $115/personAfter May 30: $125/personDinner Only: $25/person
Includes 18 holes, shared cart, dinner and prizes.Proceeds support workforce development efforts.
TSMA and CMMA membersare invited to attend.
Call the office for registration information.
Wednesday, July 18Geneva Golf Course (www.genevagolfclub.com)
Alexandria, MN
1:00 PM Shot Gun Start
$70/personincludes green fees, shared cart, and dinner18 hole 4-person scramble
TSMA Golf Committee Volunteers needed! Please call or email Sandy Kashmark to learn more.
Call the office for registration information.
Tuesday, May 8
Alexandria, MNHoliday Inn5637 State Highway 29 S.
3:00 - 5:00 PMThis event is FREE!
“ISO 9001: Let’s Dig In”Presenter: Ben Bomstad, ATCC
A Quality Management System built on the ISO 9001 platform is a key ingredient for many successful manufacturers. The principles of ISO will improve your QMS whether you are a large production manufacturer or a small prototype machine shop.
This QCI Network meeting will:Dig into the ISO 9001:2008 standard• Review changes that took place from the 2000 to • 2008 revisionExamine the benefits and roadblocks of ISO • implementation and Look at examples of how the standard can be • implemented in a manufacturing companyAllow time for interatcion among participants along • with Q&A with the presenter
QCI Network meetings are free and open to any com-pany interested in discussions related to quality and con-tinuous improvement in a manufacturing setting.
Ickler Company has been rooted in the Central Minnesota community for over 60 years, providing high quality machine shop services, including custom fabrication to prototyping manufacturing delivered to your back yard and throughout North America and overseas. As a traditional machine shop, we are the perfect fit for people needing modifications or repairs of their equipment and equipment parts. We also provide custom machining services ranging from modifications of surgical tools to farm equipment.
Property and casualty coverages and safety services are underwritten, issued and/or administered by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits and discounts are not available in all states. See policy for complete coverage details.
40-3072 729898 1/18/11® Captain John Parker photo
Metalworking is Your Business.
Insuring Metalworkers is Sentry’s Business.
MemberInputReceived at Roundtable Discussions
Some 40 people were in attendance at the TSMA general meeting on March 6th in Alexandria, which featured Roundtable Discussions led by current board mem-bers. The discussion topics for each table were tied to the activities of TSMA’s Standing Committees: Programs/Special Events, Government Relations, Youth Involvement, and Membership/Member Benefits.
Comments and suggestions were captured by the designated recorder at each table. The board briefly reviewed these notes at their March board meeting, with the agree-ment that additional time for review and re-flection was needed. Discussion will contin-ue at the April board meeting, at which time action items will be developed as appropri-ate. Watch your email and this newsletter for additional information as the discussion continues.
Remember to turn in your business card at each Tri-State meeting for a chance to win $100 at a future meeting! One busi-ness card will be drawn from “the hat” each month; the person named on the card must be present to win. At the TSMA March meeting the name of G.L. Tucker, MN State Community & Technical College, was drawn. G.L. was not present and $100 was donated to the TSMA Scholarship Fund.
Thank You Thank you to Aagard for hosting a tour at the TSMA March meeting and to ev-eryone who attended the meeting and participated in the round table discus-sions.Meeting
Have you ever wondered why portions of your organization perform better than others? Are some employees energized and eager to come to work where others reluctantly drag themselves through the door? Researchers from Capella University are studying factors in the workplace that have been shown to impact employee satisfaction and performance. Specifically, they are examining the impact of emotional intelligence on workplace climate and culture.
Your company is invited to participate in this research opportunity. Data collection involves the administration of an online consent form and survey completed by employees and leadership. The time to complete the survey is estimated at 20-30 minutes. All data is aggregated so no individual responses are ever shared; data remains completely confidential and cannot
VoluntaryResearchOpportunity for Manufacturers
be tied back to any employee or department. Organizations that choose to participate will be given a report –free of charge – of compiled statistics and an analysis of the data for their company.
The free report will include feedback regarding the impact emotional intelligence has on your organization’s culture and climate variables. By participating in this study, you are helping researchers understand the relationship between emotional intelligence and organizational climate and culture variables and also receiving free feedback about your organization.
If your organization is interested in participating or would like additional information, please contact Dr. Liz Koman, Capella University; [email protected] or (757) 577-2153.
All current TSMA members will be receiving a complimentary copy of the 2012 MMA Membership Directory via regular bulk mail in May. If your company can make use of additional free copies, call or email the office with your request. The directory is also available electronically as a pdf file. Thank you to the following members for their advertising support of the directory:
2012MMAMembershipDirectory
401(k) Plan ProfessionalsAlexandrai Area EDC
AmeriprideApollo Insurance Co.
Arthur ChapmanAtlas Staffing
Bauer Design BuildBrenny Transportation
Central McGowanCliftonLarsonAllen
The Competitive EdgeCosmos EnterprisesCottington Company
Custom Welding & Metal FabDon Farleo Advertising
Dycast SpecialtiesECI Networks
Eide Bailly LLCEJ Enterprises
Falcon National BankFF Fischer Leasing Corp
Hibbing FabricatorsInsight Insurance
Iron Range Resource
J&M PrintingKanga Machinery
Larkin Hoffman DalyMidCountry BankMN Tool Group
Northern EngineeringNorthland Foundation
Ottertail PowerParadigm Tool
Plastics InternationalPrecision Machine LLC
Pro StaffProductive Alternatives
Ridgewater CollegeRinke Noonan
riteSOFTTechnical Die-CastingUMD Center for Econ
URSA MajorWACOSA
Wells FargoWest Central Initiative
1
Central MinnesotaManufacturers Association
AMFAEducational Trust
AMFAEducational Trust
AMFAEducational Trust
AMFAEducational Trust
AMFAMEMBER
AMFAMEMBER
AMFAMEMBER
AMFAMEMBER
AMFAArrowhead Manufacturers &Fabricators Association
AMFAArrowhead Manufacturers &Fabricators Association
AMFAArrowhead Manufacturers &Fabricators Association
AMFAArrowhead Manufacturers &Fabricators Association
2011 is over, for most it was a pretty good year with strong growth in sales as well as a return to a consistent profitability month to month. Most manufacturing firms saw a growth in sales anywhere from 20% to 50% above 2010 levels. This was sustain-able for most surviving firms as they be-gan the year in a strong liquidity position after two years of balance sheet shrink-age. 2012 might not produce the same dynamics. Forecasts suggest that growth will be uneven this year depending on the amount of manufacturing returning from overseas, what becomes of Europe as well as the impact of government either on the spending front or the regulation front. Re-gardless of where you are at, your liquidity level is something you will want to forecast to assure you are not caught short or miss out on opportunities not realizing that you are over liquid.
Even though your income statement re-flects performance over a period of time and your balance sheet is a snap shot on a certain day, they are very intertwined. Unlike Vegas, what happens on the in-come statement does not stay on the in-come statement. Sales growth and mar-gin changes indirectly impact the balance sheet, which if unheeded, can cause sig-nificant headaches. You need a quick and dirty way to calculate what the impact will be on the balance sheet and more impor-tantly your liquidity from changes in your income statement.
I have used and shared with my clients an excel spreadsheet that will provide a rough estimate of liquidity based on changes on
Contributed By:Brad Stevens, Relationship Manager
Estimating yourLiquidity
Brad Stevens is a Relationship Manager with Alerus Financial, a full service commercial bank serving in your best interest. With over twenty years experience, Brad works closely with business owners to provide advice and financial solutions amongst the ever-changing market cycles. Contact Brad at 651.746.6153 to discuss fresh, innovative financial strategies for your business.
the income statement. The spreadsheet is simple and can be revamped easily to meet your needs. Essentially it takes your growth rate in sales over a specific period, or change in GPM, moving the impact to the balance sheet. The spreadsheet will keep specific accounts constant on your balance sheet, items like accruals, fixed as-sets, slightly adjusting long term debt, while making accounts receivables, inventory, payables and possibly your line of credit as variables. The cash balance is adjusted to maintain the integrity of the balance sheet.
Embedded in the spreadsheet would be your assumptions on the collection days of your accounts receivable, inventory days on hand as well as the average days that you stretch the payables. Lastly a calcula-tion is run on the average days outstanding on your line of credit if you have one. All this is filtered through to determine where your cash balance will end up on the sales growth, margin change and net income you expect for the specific period.
Using a tool like this spreadsheet provides a quick estimate of where your cash balance will be. From there you can determine, is the cash balance below or above your cau-tionary balance? Will you need to borrow or can you adjust some of the variables to boost your cash balance? If you have excess balances, how long will they last? What options do you have for investing the excess balance or using them for other pur-poses like paying off debt? Work with your banker or accountant on a spreadsheet like this or drop me an email, I should be able to help you out.
Have you checked into the benefits of
Trifac Workers Compensation
Self-Insurance? Call the office today for details!
In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax extension will provide a 2% tax reduction for individuals earning up to $106,800, so the tax exten-sion will be very helpful for many Ameri-cans who are struggling during these tough economic times. But like so many things in our tangled economy, there’s a flip side. In this case, the tax cut deal has a rippling effect that will impact the mort-gage world.
Here’s what’s happening and what it means to home loan rates:
What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation’s largest providers of mortgage money) to increase their guarantee fees or “g-fee’s” by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably know...home loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax exten-sion.
What exactly is this “g-fee”? The guar-antee fee or “g-fee” is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall risk...which means home loans can be offered at terrific inter-est rates to borrowers that have good – but not perfect – credit.
Contributed By:Vaughn C. KavliePresident, CMPSAdvisorNet Mortgage
What exactly is the impact of the rate increase? For example, for a $200,000 home loan, the increased g-fee (assuming a .125% increase in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front – but most folks will not do this.
Who will this impact? The change will im-pact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impactFederal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth ofa percent.
When will it start? Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until April...and therefore will need the increased g-fee priced in earlier.
How long will this be in effect? The in-crease will be effective through October 1, 2021. The bottom line is that the g-fees will be going up...and this will impact homebuy-ers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.
The good news is that home loan rates are still at historic lows right now, and it’s a great time to purchase a new home or refinance. If you or anyone you know has any ques-tions, please call or email!
Vaughn C. KavliePresident, CMPSAdvisorNet Mortgage, LLCPhone: (612) 436-3779 or (877) 436-8600Fax: (612) 313-7570License: #[email protected]
Housing News11 Trends from 2011
The National Association of Realtors® surveys homebuyers and sellers each year to uncover housing trends and monitor changestaking place in the industry. This year's report highlights a number of trends that haven't been seen in years. Here are just 11 highlightsfrom the 2011 report.
1. In 2011, 37% of homebuyers were first-time buyers – which was down from 50% in 2010.
2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009.
3. The typical homebuyer searched for 12 weeks and viewed 12 homes.
4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% – a share that has steadilyincreased from 69% in 2001.
5. Nearly 1 out of 4 buyers said the application and approval process was "somewhat more difficult" than expected...and 16% reportedit was "much more difficult" than expected.
6. About half of home sellers traded up to a larger and more expensive home...and 60% traded up to a new home.
7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overallaffordability of homes.
8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007.
9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price.
10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior tothe sale.
11. The typical "for sale by owner" home sold for $150,000 compared to $215,000 for the average agent-assisted home sale.
If I can answer any questions for you about the housing market in our area, call or email me anytime.
The Network News is edited and published at the Midwest Manufacturers' Association office located at 117 Central Avenue North, PO Box 150, Elbow Lake, MN 56531. MMA/TSMA phone 218-685-5356. Fax 218-685-5397. Toll-free 800-654-5773. Email: [email protected]. Office hours are 8:30 AM to 5:00 PM Monday through Friday. However, messages can be left on the answering machine at any time.
Membership Committee, chair: Dick Young, Innova Industries
Program Committee, chair:Elroy Vesta, EJ Enterprises
Special Events Committee, co-chairs:Tom Mastellar, KendecoKevin Schutz, OECS
youth Involvement Committee, co-chairs:Bob Grove, Cosmos EnterprisesEvan Westra, West Tool & Design
Government Relations Committee, co-chairs:Don Leapaldt, State Bank & TrustTyler Wirth, The Work Connection
Tri-State members are invited to join a committee at any point throughout the year. Contact the TSMA office or the committee chair directly.
Tri-State Manufacturers’ Association assists manufacturing related companies by providing advocacy, education, network-ing, and programs to enhance the success of members and their communities.
Tri-State Manufacturers' Association is committed to de-1. veloping people and companies by providing opportuni-ties for members to acquire industry relevant knowledge or skills.Integrity and trust are guiding principals for Tri-State 2. Manufacturers' Association.Tri-State Manufacturers' Association believes that open, 3. accurate and timely communication is important to ac-complishing its mission.
Membership Plaques are presented to current members at TSMA networking events. Several TSMA members collaborated with the Machine Technology students at North Dakota State College of Science to produce the plaques.
TSMA Board of Directors
TSMA Core Values
TSMA Standing Committees
TSMA Mission Statement
TSMA Membership DuesThe TSMA Membership Dues Structure is identical for manufacturing and associate members. Dues are based on number of employees. No. of Employees Annual Dues 1 person shop ............. $ 75 2 to 5 ......................... $ 125 6 to 15 ....................... $ 175 16 to 30 ....................... $ 200 31 to 50 ....................... $ 250 51 to 99 ....................... $ 275 100 to 199 ..................... $ 325 200 or more ................... $ 350
