The AP (2/16) reports, “Manufacturers have been hiring more consistently than other employers, for jobs with better-than-average pay. They just had their best month of growth in five years.” No one believes “manufacturing will return to its 1950s peak. After all, the factory sector now makes up barely one-tenth of the economy.” However, “since the recession ended more than 2½ years ago, factories have been contributing disproportionately to the recovery in hiring and the overall economy.”

Factory Output Increases 0.7 Percent In January

Bloomberg News (2/16, Willis) reports, “Factories in the US boosted production in January, capping the biggest back-to-back increases in more than two years, showing manufacturing will remain at the forefront of the expansion.”

The AP (2/16) reports, “The Federal Reserve said Wednesday that manufacturing production increased 0.7 percent in January. And output soared 1.5 percent in December, according to an upward revision.” That is the largest one-month gain since December 2006.

IndustryWeek (2/16) reports, “The production of durable goods advanced 1.8% in January with output of motor vehicles and parts increasing 6.8% following an upwardly revised increase of 3.8% in December. In January, gains of more than 1% were recorded for fabricated metal products; machinery; computer and electronic products; electrical equipment, appliances, and components; furniture and related products; and miscellaneous manufacturing. The output of aerospace and miscellaneous transportation equipment edged up 0.1%, while production decreased for wood products, nonmetallic mineral products, and primary metals.”

BBC News (2/16) reports, “Economists say the manufacturing figures are further evidence that the US economy is picking up. ‘Some encouragement can be taken from the sharp upward revision to the performance in December, which underscores the turnaround in US economic fortunes in recent months.’ said Millan Mulraine, from TD Securities in New York.”

Manufacturing In The New York Region Expanded In February

Bloomberg News (2/16, Kowalski) reports, “Manufacturing in the New York region expanded in February at the fastest pace since June 2010, a sign factories are propelling the expansion. The Federal Reserve Bank of New York’s general economic index increased to 19.5 this month from 13.5 in January.”

The Central New York Business Journal (2/16, Seltzer) reports, “Among survey respondents, 31.6 percent said conditions improved in February, while 12.1 percent said they worsened. The remaining 56.3 percent of respondents said conditions remained the same as in January.”

The Albany Business Review (2/16, Subscription Publication) reports, “The survey also showed that the new orders index, at 9.7, was positive but down slightly, and the shipments index was little changed at 22.8. The prices paid index held steady at 25.9, while the prices received index fell eight points to 15.3, suggesting that selling prices rose at a slower pace.”

Updates provided through MTI’s partnership with the National Association of Manufacturers.

Answer: If you can get comfortable with this person becoming an owner¹; you make a condition that he must be employed to exercise the option; you can work out the valuation methodology so it’s clear and fair and will not give rise to disagreement; and the employee has (or should have) the cash that will be needed to exercise the option, it’s a great idea.

Let’s say you grant him a three-year option to purchase 10,000 shares issued from treasury, i.e., from your company, at the price of $3 each. There are currently 200,000 shares outstanding, all held by you, and so he could gain a 4.76% ownership interest. If the $3 per share reflects the current fair market value per share, there’s no tax due when the option is given — neither to your company (grantor) nor your employee (grantee).

Now let’s say in three years you value the stock at $5 per share and he exercises this option for all 10,000. He pays the company $30,000 (which does not trigger any tax; the amount is added to the company’s capital account) and the company gets a $20,000 tax deduction for the $20,000 of “value” it gave to the employee. Unfortunately, this “gift” amount is considered compensation to the employee at the time he exercises the option. Therefore, he must pay tax on this amount at his ordinary income rate. However, if the employee later² sells his shares for a profit, he will enjoy capital gains tax treatment on the gain.

This article provided by MTI’s affiliate publication, The Business Owner.  You can check out the full edition with numerous other business and financial related articles by logging in to the Members Only Area and clicking on Jan/Feb Biz Owner in the Resources Box on the right hand side of page.

This review is to help users of the Heat Treating Self Assessment (HTSA) to better understand the new changes to CQI-9 as a result of a two-year re-write of this quality tool for heat treaters.

Phil Mikula, chairperson of the CQI-9 Committee, explained to me that a CQI-9 update was required to address the addition of three new processes – Low Pressure Carburizing, Sinter Hardening, and Ion (plasma) Nitriding.

As the committee deliberated, members agreed to remove the references to AMS 2750D and replace these requirements with CQI-9 specific requirements.  The project scope expanded and something that might have taken a year took much longer.

This self-assessment update received good worldwide support as Europe and Brazil were represented.

The revision is my original summary of the CQI-9 Third Edition.  The comments you will see in “red” are courtesy of one Heat Treater who is ISO/TS 16949 registered.

To see a copy of the full 10-page review as well as the latest ERRATA document, which spells out key corrections in the CQI-9 standard, log in to the MTI Members Only Area and click on CQI-9 Update in the Resources Box on the right hand side of the page.

MTI’s nine districts reported higher sales in January compared to the previous year. As you can see from the trend graph on the front page of the MTI website  www.heattreat.net, MTI heat treat sales are continuing to show further optimism for 2012.

Here is an interesting look back at the average heat treat sales for MTI members for the last 5 years:

- 2011 – $5,900,000

- 2010 – $5,100,000

- 2009 – $3,900,000

- 2008 – $5,400,000

- 2007 – $5,300,000

If you would like to view the full monthly sales report, log into the Members Only Area and click on the January 2012 Sales Report in the Resources Box.

To view past editions of MTI TV, CLICK HERE.

The committees goal is to empower more MTI members to get involved with each of these groups as they approve the heat treating specifications all members have to live by.

The committee is working on a proposal to present to the Board of Trustees at their Spring Meeting in San Francisco to help provide MTI a better level of representation with each of the three groups.  Through the representation, MTI will be able to keep members abreast of the changes in specifications and processes as they are being addressed.  Members will be able to provide feedback to the various spec writing committees through MTI to ensure they have analyzed all of the various impacts of revisions and new specs.

Currently the Technical Standards Committee meets via conference call within 10 days after each Nadcap and AMEC committee meeting to update on the action items taken and review any concerns that may need to be addressed.  AIAG just completed their 3rd revision of CQI-9 and don’t see any meetings in the near future.

MTI’s aim is to play a proactive role to compliment each of the spec writing groups offering support and further expertise in designing the specifications.

MTI’s regional chapter meetings, hosted in the spring and summer, will put some focus on industry specifications to help bring awareness to members as to the importance of staying informed and tuned in to the changes taking place.

If you are interested in serving on the committee in some capacity, please contact MTI CEO, Tom Morrison at 904-249-0448 or tom@heattreat.net.

SOURCES OF PENT-UP DEMAND 

There are a number of sources for pent-up demand. Wartime production controls can result in some goods not being produced and thus unavailable for purchase (e.g., new automobiles during World War II). Price and rent controls can create pent-up demand because they decrease the supply of goods subject to such controls. Deflationary expectations encourage consumers to hold off making purchases in anticipation of paying lower prices in the future.

The primary source of pent-up demand, though, is recession. Economic downturns temporarily alter demand for consumer durable goods and business equipment because disposable incomes and profits are reduced and increased uncertainty makes consumers and businesses more cautious. The purchases of consumer durables and business equipment can be postponed, but these products eventually wear out and require replacement.

PENT-UP DEMAND AND THE “GREAT RECESSION” 

There is pent-up demand for automobiles, housing, and business equipment and machinery that has been built up over the past four years. Per capita disposable income in the fourth quarter of 2011, adjusted for inflation, was 2.2 percent below its level in the fourth quarter of 2007. Profits in the manufacturing sector, as measured by aggregate net income after taxes, fell from $136 billion in mid-2007 to a loss of $84 billion in the fourth quarter of 2008. Although profits rose after 2008, it wasn’t until 2011 that manufacturing sector profits returned to more normal levels.

To see this full report, log into the MTI Members Only Area, and click on Pent-Up Demand in the featured resources box on the right hand side your profile.

If you have any issues logging in or downloading the document, please contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Vac-Met has been a proud member of MTI since 1981.

- Economy Created 243,000 Jobs In January; Unemployment Drops To 8.3 Percent

- US Auto Sales Unexpectedly Strong In January

- Factory Orders Increase 1.1 Percent In December

READ BELOW FOR FULL ARTICLES:

U.S. Manufacturing Activity Grew in January

The Milwaukee Journal Sentinel (2/2, Barrett) reports, “Boosted by an increase in new orders, the production at US factories grew in January at the fastest pace in seven months.”

Bloomberg News (2/2) reports, “The Institute for Supply Management’s index climbed to 54.1, from 53.1 in December, the Tempe, Arizona-based group’s report showed” Wednesday. “The ISM’s new orders measure climbed to 57.6, the highest since April, from 54.8, and the gauge of export orders rose.” Bloomberg News notes, “Manufacturing accounts for about 12 percent of the economy and was at the forefront of the recovery that began in June 2009.”

The AP (2/2, Rugaber) reports, “Consumers are buying more cars and trucks, while businesses ordered more machinery and other equipment. That has driven manufacturing, which expanded for the 30th straight month.”

The Hill (2/1, Needham) “On The Money” blog reported, “Export orders also rose, a sign that US manufacturers haven’t yet been affected by Europe’s slowing economy. Meanwhile, a separate report from the Commerce Department showed that construction spending increased 1.5 percent in December, the fifth straight monthly gain. That pushed spending to a seasonally adjusted annual rate of $816.4 billion, the highest level in 20 months.”

US Auto Sales Unexpectedly Strong In January.

The New York Times (2/2, Bunkley, Subscription Publication) reports, “New-vehicle sales in the United States were unexpectedly strong in January, an early sign that the auto industry could have its best year since 2007, carmakers and analysts said Wednesday.” Sales rose “11.4 percent from January 2011, according to the research firm Autodata. The industry’s annual selling rate, an important measure of its health, climbed to 14.18 million, the highest in more than two years.”

The Detroit Free Press (2/2, Priddle) reports, “Chrysler got the new year off to a good start, reporting a 44% increase in US auto sales in January with 101,149 vehicles sold for its best January since 2008.” Sedans were strong sellers for the company, “including the Chrysler 200 that received a huge boost a year ago with the airing of the ‘Imported from Detroit’ Super Bowl commercial. Sales jumped 789% in January compared with a year ago when the new model had not yet reached dealerships.”

The AP (2/2, Durbin, Krisher) reports, “Toyota Motor Corp.’s sales rose 7.5 percent on strong demand for the new Camry, which went on sale in October. Camry sales rose 56 percent in January and the sedan remained America’s best-selling car, a distinction it has held for nearly 15 years. Sales of the Prius hybrid rose 9 percent.”

In a separate article, the AP (2/2) reports, “Ford says that sales rose 7 percent in January on strong demand for small cars and SUVs. Sales of the Ford Focus compact car were up 60 percent over last January, while sales of the Ford Escape small SUV were up 24 percent.” Ford “said F-Series truck sales were up 8 percent while sales of the Ford Explorer rose 36 percent.”

In another article, the AP (2/2) reports General Motors “said Wednesday that car sales were up 13 percent, led by the new subcompact Chevrolet Sonic and the Chevrolet Cruze. But the company saw weaker sales of crossovers like the Buick Equinox and GMC Acadia. Pickup truck sales also fell 6 percent.”

AFP (2/2, Oberman) reports Honda “posted a nine percent gain to 83,009 vehicles” last month. “Volkswagen, which is making an aggressive push into the US market as part of a goal to become the world’s largest automaker, posted a 48 percent gain in January to 27,209 vehicles. Korean automaker Hyundai and its sister Kia extended their recent gains, with Hyundai sales up 15 percent at 42,694 vehicles and Kia up 28 percent at 35,517.” Nissan saw sales increase 10 percent to 79,313 in January.

Bloomberg News (2/2) notes, “With the average age of cars and trucks rising to a record 10.8 years, analysts see pent-up demand boosting US sales to a third-straight annual gain in 2012, the longest streak since sales peaked in 2000. An improving job market and available credit may propel an increase of more than 6 percent to 13.6 million vehicle sales, the average of 18 analysts’ estimates.”

Economy Created 243,000 Jobs In January; Unemployment Drops To 8.3 Percent.

The CBS Evening News (2/3, lead story, 3:45, Pelley) reported on “a big improvement in the unemployment picture. The Labor Department reported today that the jobless rate in January fell 0.2% to 8.3%, the lowest in three years. And the economy created 243,000 jobs. That’s a lot more than economists or Wall Street were expecting.”

NBC Nightly News (2/3, story 2, 2:20, Holt) reported, “The jobs report for January out this morning blew past everyone’s expectations. … Wall Street responded with a surge of its own, the Dow up 156 points to its highest close since May 2008 before the economic meltdown, and Nasdaq hit an 11-year high.”

The AP (2/3) reported, “In the most impressive surge for the job market since early last year, the United States added 243,000 jobs in January, far more than economists expected. … Hiring accelerated across the economy and up and down the pay scale. The high-salary professional services industry added 70,000 jobs, the most in 10 months. Manufacturing added 50,000, the most in a year.”

Bloomberg News (2/4, Willis, Miller) reported that the “labor market recovery is broadening as industries from construction to retail to manufacturing added workers in January.”

The New York Times (2/4, Rich, Subscription Publication) reported, “Measured by both the unemployment rate and the number of jobless — which fell to 12.8 million — it was the strongest signal yet that an economic recovery was spreading to the jobs market.”

The Washington Post (2/4, Whoriskey) reported the President “seized on the numbers as proof that the nation’s economic recovery ‘is speeding up.’”

The Wall Street Journal (2/4, Dougherty, Subscription Publication) reported job growth was at its fastest rate since April 2011, and unemployment was down for the fifth consecutive month.

The Los Angeles Times (2/4, Lee) reported, “Some economists called the latest employment report a game-changer that signaled better times ahead for American workers,” but “many others were cautious in their assessment, noting that job growth was inflated by the unseasonably warm weather — construction reported sizable gains, for instance — and that the outlook remains constrained by government budget cuts, financially strapped consumers and a slowing global economy.”

McClatchy (2/3, Hall) reported, Chad Moutray, chief economist with the National Association of Manufacturers, wrote in his blog Shopfloor.org, “Overall, these numbers show renewed strength in the domestic economy, with employment growth in almost every major industrial sector except information, financial services and government. It mirrors other recent economic indicators showing an uptick in activity since October.” Moutray also wrote, “Moreover, several sentiment surveys suggest that manufacturers are optimistic about future production and employment in 2012, which should bode well for this year’s numbers.”

USA Today (2/3, Davidson, Mullaney) noted, “Economists attribute the job gains to surging auto sales, falling productivity – or output per worker – and slight easing of worries about Europe.” Also, USA Today noted, “since the recession began, manufacturers have boosted productivity by replacing workers with technology and squeezing more from remaining employees. But factory productivity fell in the fourth quarter and rose just 2.8% last year, down from 6% in 2010. ‘There’s only so much you can get out of your workers,’” Moutray said.

Bloomberg News (2/3, Homan) reported, “American factories added the most jobs in a year as they stayed at the forefront of the expansion, boosting employment opportunities in the rest of the economy. Manufacturing payrolls increased 50,000 last month, exceeding the most optimistic forecast in a Bloomberg News survey and capping the largest two-year gain since 1985,” according to figures released by the Labor Department. “Since reaching a post-World War II low of 11.46 million at the start of 2010, manufacturers have added 404,000 workers to their payrolls.”

CNNMoney (2/3, Censky) added, “The unemployment rate is obviously a highly politicized number. While gradual improvement in the job market may strengthen President Obama’s position, major weakness still remains. ‘I suspect the White House will be happy the unemployment rate is down, but they also have to be mindful that we still have a long way to go here,’” Moutray said.

Auto Sector Adds Jobs In January. The Detroit News (2/4, Shepardson) reported, “Automakers and dealers added more than 15,000 jobs in January as the auto sector continues to gain strength. Auto manufacturers and the parts sector added 7,900 jobs in January.” The News reported, “Over the last the year, the auto vehicle/parts sector added 44,000 jobs over last year to 746,300, up from 702,400, according to seasonally adjusted figures.”

With Job Surge, US economy Races Ahead Of Europe. AFP (2/6, Honore) reports, “The latest surge in US job creation suggests the world’s biggest economy is gathering momentum — in contrast with the recession taking hold in parts of Europe.” Jacob Kirkegaard, economist at the Peterson Institute for International Economics, “said the latest developments in the labor market show the resilience of the US economic model.” AFP reports that the National Association of Manufacturers “said the latest US numbers ‘show renewed strength in the domestic economy, with employment growth in almost every major industrial sector except information, financial services and government.’”

Factory Orders Increase 1.1 Percent In December.

The AP (2/3) reported, “Orders to factories rose in December, supported by a rebound in business investment in capital goods.” Factory orders increased “1.1 percent in December after gaining 2.2 percent in November, the Commerce Department reported Friday. For the year, total orders were up 12.1 percent after a gain of 12.9 percent in 2010.”

Bloomberg News (2/4, Kowalski) reported, “Factories boosted payrolls in January by the most in a year and the number of hours worked per week climbed to the highest in 14 years, according to Labor Department,” data “showing how the need to rebuild inventories and replace outdated equipment will keep American industry humming.”

Canada-U.S. trade flows are and always have been vital to Canada, but lesser known is their growing economic importance to the United States. Figure 1 shows imports from and exports to Canada since 1989, the year the two countries’ free trade agreement came into force. It shows that total trade flows (imports and exports) more than tripled from 1989 to 2008, but have since pulled back because of the deep 2008-09 recession. Direct exports to Canada reached more than $250 billion in 2008, or 20 percent of total exports. While this is only about 2 percent of U.S. GDP, it understates the significance of trade because it omits additional domestic economic activity related to both exporting and importing (such as financial services and wholesaling). A 2010 study estimated that trade with Canada in both directions generates $470 billion in U.S. output (3.3 percent of GDP) and supports more than 8 million jobs (4.4 percent of total employment)

To see the full report, log into the MTI members only area and click on U.S. Canada Trade Flow in the resources box on the right hand side of your profile.

Some of the most aggressive corporate tax cutting has been quietly done by Canada, our neighbor to the north and largest trading partner. Under successive Liberal and Conservative governments, the federal rate has fallen from 28 percent to 15 percent—a decrease of nearly half. If one includes the average corporate tax rate of provinces, the marginal rate on an additional dollar of taxable income is 25 cents, the lowest in the G7 nations and significantly less than the more than 40 cents in the United States.

There is a recognition in U.S. policy circles that corporate taxes dull incentives for capital investment and raise the cost of manufactured goods in export markets; however, in the current fiscal context, the focus of tax policy has shifted toward concern about reducing large federal budget deficits. A simplistic analysis would seem to favor avoiding corporate tax cuts for fear of causing further deterioration of the fiscal outlook.

But do corporate tax cuts reduce tax revenues? The answer is not as obvious as it might appear. If one assumes that businesses do not change their behavior in the wake of tax cuts, as do most of the revenue forecasting models used to (mis)inform Congressional debate, then one would expect revenues to decline. But businesses do change their behavior, because corporate tax cuts make additional investment projects profitable on an after-tax basis. The concomitant increase in economic activity and profits (which is often accompanied by additional hiring) increases the taxable base of corporate income. The net effect on federal revenues of a corporate tax cut is ambiguous and depends on how strongly investment reacts to it.

The significant corporate tax cuts in Canada during the 2000s offer a natural economic experiment on the relationship between corporate tax rates and revenues. Canada and the United States have highly integrated economies that have more similarities than differences, and have been subject to similar economic shocks over the past decade. Thus, a comparison of trends in corporate tax rates, output, and corporate tax revenues in Canada and the United States since 2000 can shed light on this important fiscal question.

Provided through MTI’s partnership with the Manufacturers Alliance (MAPI).  If you would like to read the full report, log into the MTI members only area and click on Corporate Tax Lessons from Canada.

The Host Committee for the Spring Meeting put together 6-hours of sessions over 2-days where you will learn:

- How to maximize the overall energy efficiency of your operation
- The latest technologies and usage strategies on furnace equipment to minimize your energy costs
- What an effective energy strategy is
- New strategies you need to consider in purchasing your energy
- What the big idea is about social media
- How social media can help you leverage your marketing dollars
- How social media can connect your company to customers
- How is ITAR impacting heat treating companies
- Could your company be at risk for the $1,000,000 fines and 10-year jail sentences for ITAR non-compliance
- How to ensure you are in compliance with ITAR
- The latest technology in water treatment strategies
- To use water or not to use water
- Things you need to know on disposing your water
- How to create a motivated, productive and satisfied workforce
- How to manage stress in the workplace

During the meeting, you will have the opportunity to take part in two evening receptions and dinner events with the middle night free for you and your guests to enjoy all that San Francisco has to offer.  MTI will also be hosting a Team Scramble Golf Tournament with new rules that make the event fun for anyone who can swing a club.

Come learn in this exciting and refreshing environment. We look forward to seeing you in San Francisco.

CLICK HERE for full meeting details and printed brochure.

If you have any questions on the Spring Meeting, contact MTI’s offices at 904-249-0448 or info@heattreat.net.

If you would like to view the full report, log into the Members Only Area and click on DeWolf Economic Report in the Featured Resources box on right hand side of website.

MTI’s reception at the October meeting in Pittsburgh received great reviews, attracted over 40 attendees and provided them time away from the meetings to really dig deep into some of the relevant issues being discussed.

If you are attending the Nadcap meeting in San Diego, we would appreciate your attendance at the reception so our members on the Technical Standards Committee can hear your thoughts.  It’s very important for members to be able to discuss and provide feedback to the MTI Standards Committee so they can have an opportunity to determine what issues are most pressing to heat treaters.

Details for the meeting are as follows:

When: February 21

Time: 6:00 pm to 9:30 pm

Where: Sheraton San Diego Hotel and Marina (1380 Harbor Island Drive)
RSVP: CLICK HERE

Questions: 904-249-0448 or info@heattreat.net

The growth moderation in 2012 is expected to be more pronounced than our previous
forecast anticipated, with sales revenue up 16 percent instead of 20 percent. In 2013,
growth is forecast to accelerate to 19 percent.

To see the full 12-page report, log into the Members Only Area and click on China Economic Outlook in the Featured Resources Box on the side of webpage.

Past Y.E.S. program students have included owners, general managers, plant managers and managers in production, safety, maintenance, operations and quality.

Developing key leaders and building high performance teams is crucial for any business.  You cannot beat the competition without them.

The 2012 Class includes executives and managers from:

- Akron Steel Treating

- Bluewater Thermal Solutions

- Braddock Metallurgical

- Byington Steel Treating

- Century Sun Metal Treating

- Cornerstone Systems

- Ipsen

- Paulo Products

- Penna Flame Industries

- Pinson Valley Heat Treating

- Solar Atmospheres

- Surface Combustion

- Wirco

- Metal Treaters, Inc.

CLICK HERE to see full meeting details, video highlights of past Y.E.S. programs and a video introduction to our team who will be running the program, The Corps Group.

If you have any questions on the Y.E.S. program, contact our offices at 904-249-0448 or info@heattreat.net.

The March 2012 edition will be packed with information on the business
side of heat treating, and will be included with the annual Commercial Heat
Treat Capabilities Directory issue of Industrial Heating. The Metal Treating
Institute will also distribute this edition of MTI Heat Treating magazine as a stand-alone
publication at all of their upcoming events. It is a creative and cost effective
marketing tool and a great way to support The Metal Treating Institute.

CLICK HERE to see more information on placing an ad in the March edition of Heat Treating magazine.

CLICK HERE to watch a short 7-minute presentation on manufacturing production.

AFP (1/25, Handley) reports, “Obama has proposed radically shifting the US economy back to a manufacturing base after decades of ceding jobs in goods production to factory-heavy countries such as China” Obama “proposed new policies aimed at helping US manufacturing and dissuading companies from shifting jobs overseas. They included tax breaks for more investment and job creation inside the country, support for education and research that feeds the manufacturing sector, and stepped-up protection against subsidized imports and pirated goods — with China named as the main target.” The National Association of Manufacturers delivered a sharp response to Obama’s speech in which it appeared to adopt his Republican rivals’ argument that the sector is mainly hindered by regulations and high corporate taxes. “The Obama administration must take action to put an end to the rampant overregulation and overreach’ by federal labor and environmental regulators, the group’s president Jay Timmons said in a statement.”
In the press release, the National Association of Manufacturers (1/25) President and CEO also said, “We need action on comprehensive tax reform that will lower the corporate tax rate so that we can compete for investment across the globe. Tax reform must also lower the rates of the 65 percent of manufacturers that file as individuals for the good of the economy and jobs. An aggressive trade policy that opens new markets is essential so America does not stand idle while other nations move into those markets. As consumers of one-third of our nation’s energy supply, manufacturers embrace a true ‘all-of-the-above’ energy policy – not one subject to the political winds.”

Obama’s Energy Production Proposals Described As A Step Closer To The GOP’s Agenda. Politico (1/25, Samuelsohn), in an article titled, “Obama Steals GOP’s Energy Slogan,” says the President “stepped onto a touchy patch of Republican turf” by “calling for sharp increases in oil and natural gas production, even stealing the GOP’s ‘all of the above’ energy slogan. Under a daily barrage of criticism from GOP White House rivals who say his energy policies have strangled the nation’s economic recovery, Obama turned the tables by touting record levels in fossil fuel production and called for the opening of 75 percent of potential offshore resources. … The president made no mention…of the Keystone XL pipeline or Solyndra, the two energy issues that have become regular punching bags for his GOP critics.”

Michigan Papers Highlight Obama’s Praise For Auto Industry. The Detroit News (1/25, Shepardson) reports that the President “hailed the turnaround of the auto industry, calling it a model for boosting manufacturing. … He called for new taxes on companies that outsource jobs and tax cuts for companies bringing jobs home and vowed new incentives to increase manufacturing.”

The Detroit Free Press (1/25, A1, Spangler), in a front-page article reports the President “cit[ed] a resurgent auto industry in Detroit as proof government can do good,” and “unveiled…an updated plan to attract manufacturing jobs, retrain workers and punish companies that try to park cash overseas.” The Free Press also notes that “two Michiganders – one a retrained lab technician from Holland, the other a plant manager at General Motors’ Orion Assembly – were invited to sit with first lady Michelle Obama. … On Wednesday, Obama will set out on a…five-state tour that concludes Friday morning at the University of Michigan, where he will discuss retraining for workers and the need for colleges to hold down tuition costs.”

USA Today (1/25, Woodyard) also reports that “a resurgent auto industry is helping lead the way out with a hiring surge of an estimated 60,000 jobs this year. President Obama underscored the point Tuesday night…pointing to the auto industry as an example of a US factory-floor rebound. ‘Tonight, the American auto industry is back,’ Obama declared, noting that General Motors is again the world’s largest automaker.”

Update provided in partnership with the National Association of Manufacturers

Industry continues to the bright spot in the recovery, although the industrial production
index has not yet returned to pre-recession levels. MTI billings, however, have easily exceeded earlier highs.

The growth rate for MTI billings has slowed over the last year following the rapid rise
from the 2009 low. After gaining 19.0% in 2011, billings are expected to grow only 3.6% in
2012 and then improve more rapidly in 2013 with gains of around 5%.

To view the entire Heat Treat Outlook report, log into the Members Only Area and click on the Heat Treat Outlook report in the Resources Box on the right hand side of the website.

2012 will be another strong year for Chapter Meetings.  This year the meetings kickoff with the Midwest Chapter Meeting taking place on March 6 at the Keylime Cove Resort in Gurnee, Illinois.   The Midwest Chapter Meeting is going to put a lot of emphasis on dealing with Industry Specifications.  This is a thorn for many members and sometmes seems like a never ending challenge.  MTI will host a key leader with SAE and Nadcap to facilitate an interactive discussion on industry specifications, how they are developed, their impact on heat treaters and how heat treaters can be more involved in helping provide feedback on how they are designed.  This meeting will be very informative for owners, quality managers and production managers.

The Canadian Chapter Meeting will take place on March 8th at the Woodbine Entertainment Complex in Toronto. This meeting will provide an exciting night of networking, learning, dinner and horse racing.  MTI is pleased to have partnered with the Canadian Manufacturers and Exporters Association to host Ian Howcroft, CME Vice President.  Ian is going to facilitate a discussion with Canadian members on the various policies being considered by the Canadian government that are having an impact on manufacturing and your ability to compete as a heat treater.  Your attendance is very important because we will be doing a series of round tables on the various key Canadian Manufacturing issues to provide feedback to CME from MTI members on their thoughts and solutions to the issues.

We invite all member companies to bring 2 or 3 of their key managers to these chapter meetings.  Their insight on a variety of issues help us to understand what is happening at the shop floor level as well as to provide the opportunity to network with other key management in their chapter.

Registration will open February 1 for both meetings.  If you have any questions, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Over two days, associations heard from the National Association of Manufacturers key policy makers on issues related to tax reform, regulations, National Labor Relations Board, healthcare and energy.

The entire group also had an open discussion on the 2012 election relating to NAM’s four goals for economic growth:

Goal 1 – The United States will be the best place in the world to manufactur and attract foreign investment.

Goal 2 – The United States will expand access to global markets to enable manufacturers to reach 95% of consumers who live outside our borders.

Goal 3 – Manufacturers in the United States will have the workforce that the 21st century requires.

Goal 4 – Manufacturers in the United States will be the world’s leading manufacturers.

To see NAM’s entire report on these four goals, CLICK HERE.

Throughout the meeting, one overriding tone was certain:  the 2012 election is a key in determining the direction of the country and its relationship with manufacturing.

NAM leadership shared that it is crucial every owner of a manufacturing company, whether small, medium or large, educate their employees on the issues and encourage them to get out and vote in November.  Studies show that employees look to their employers for sound wisdom on election matters.

MTI is working with NAM on their new Online Election Center to tap into their resources  and provide members and their employees the information they need to make informed voting decisions come November.

MTI encourages all members to talk to your employees and share with them the issues impacting your company and stress the need for them to get informed and vote in the 2012 election.

Numerous MTI members continue to send one or more managers each year to this very valuable program designed to get their key management’s mindset all thinking in the same direction about the future growth of their companies.

We encourage you to not miss this program.  There are only 30 slots in the program with only a few remaining.  Deadline is February 1st with the first of four programs taking place in Austin, Texas on February 23.

CLICK HERE for Full Registration and Program Schedule

CLICK HERE to Hear From Our Chief Program Facilitator Kyle Howlin

CLICK HERE to Learn More About Our Facilitator Team, The Corps Group

CLICK HERE for Video Highlights of the 2011 Class

If you have any questions about the Y.E.S. program, feel free to contact our offices at 904-249-0448 or info@heattreat.net.

This quarter’s survey results paint an overall picture of continued growth but at a moderate rate as we move in 2012. The Composite Business Outlook Index was 66 in December, down from 67 in September.1 At 66, the composite index points to continued expansion over the next three to six months. The index has declined steadily since reaching a record high of 81 in June 2010; since June 2011, however, the rate of decline has slowed.

The current business condition indexes that are based on year-over-year comparisons fell in December, but all remain solidly above 50, the dividing line between expansion and contraction. The Capacity Utilization Index fell from 43.3 percent to 38.1 percent, but remains above its long-term average of 32 percent. The Inventory Index fell slightly, but this can be interpreted as a positive sign; it may indicate that the inventory build over the past year is beginning to abate.

To read this full 11 page report, log into MyMTI and click on MAPI Economic Report in the Featured Resources box on the right hand side of page.

The concept of sustainable manufacturing is not new. Many manufacturers have been diligently phasing sustainability into their business models for several years—largely because they already embrace an altruistic view or they are responding to negative shareholder activism. But two very recent global developments, in conjunction with mounting social and financial pressures, could catapult sustainability into the forefront of manufacturing efforts in 2012. This is particularly true for small and medium enterprises (SMEs), as well as B2B and industrial manufacturers, who have until recently only been tiptoeing in the sustainability tulips.

According to a July 2011 analysis by the UK Department for Business Innovation & Skills (BIS), the green marketplace is estimated to be worth $5 trillion and growing. Knowing good business when they see it, manufacturers will clamor for their fair share of this growing multitrillion dollar trend.

Corporate peer pressure is also mounting. An analysis by KPMG released in November 2011 showed that 95 percent of the world’s 250 biggest companies now report their sustainability performance— that’s up from 80 percent in 2008. As big companies go, so go the others. This is particularly true if the bigger companies demand it of their suppliers.

Which leads to the next major sustainability driver: big box retailers and large manufacturers such as Walmart and Procter & Gamble are requiring suppliers to report on their sustainability efforts as a whole and for individual products. Full implementation of the Walmart sustainability index alone will impact more than 100,000 companies and nudge them into the sustainability fold.

The financial implications for NOT being green can be huge, if not devastating. A 2010 study by Harvard and London Business Schools found that financial analysts rate companies with visible sustainability efforts higher than others. Moreover, those companies with significant environmental problems pay up to 0.64 percent more to service their debts and secure credit. In a time of global recession, when resources are tight, implementing sustainability projects to save money and access cheaper credit is a sound business decision.

The aging of the manufacturing workforce also has an impact because younger employees want to work for environmentally conscious companies. A 2010 study by Johnson Controls Global WorkPlace Solutions showed that more than 96 percent of people ages 18 to 25 want their employer to be environmentally friendly. As younger employees replace older ones, the internal pressure on companies to become more sustainable will grow.

While all of these trends bode well for an increase in sustainable manufacturing, two new drivers could ultimately catapult sustainability from trendy tree-hugger trance to strategic CEO certainty starting in 2012.

First, in November 2011, the OECD released a free, five-years-in-the-making Sustainable Manufacturing Toolkit. This toolkit contains not only descriptions of sustainable manufacturing Social and financial pressures alone are not enough to generate a seismic shift toward sustainable manufacturing efforts, but also recommended metrics, case studies, and tools for designing, implementing, and measuring sustainable manufacturing programs. Such a “how-to” guide could become the missing link for manufacturers who intend to embrace sustainable manufacturing but do not know where to begin.

The second major development is that 2012 will be the first year that several industrialized nations begin implementing lower emissions regulations and carbon tax schemes. Under the Copenhagen Accord reached in December 2009, more than 90 countries (including the U.S. and China) have pledged to reduce emissions by 2020. On January 5, 2012, China’s Economic Information Daily reported that the Chinese carbon tax is expected to be in place before 2015. This new environmental taxation system has already been submitted to China’s Ministry of Finance for approval and is expected to be employed soon, possibly as early as sometime in 2012. The plan calls for a graduated tax on carbon emissions that increases based on a company’s emission levels. This tax follows on the heels of a recently implemented nationwide sales tax on oil and natural gas.

Social and financial pressures alone are not enough to generate a seismic shift toward sustainable manufacturing. Combining these pressures, however, with a free Sustainable Manufacturing Toolkit and the imposition of new emissions regulations such as the Chinese carbon tax could be enough to propel manufacturers into the next phase of sustainable development starting in 2012.

Provided through MTI’s Associate Membership through the Manufacturer’s Alliance (MAPI)

The Host Committee has put alot of effort in designing sessions that meet today’s challenges in the heat treating industry.

The networking events will have some added excitement with the opening night focused on everyone connecting through wearing team gear of the sports team they are most passionate about.  Night two will provide an open night for everyone to enjoy all that San Francisco has to offer and night three will provide the opportunity to relax, network and enjoy incredible drinks, food, music and dancing.

For those who love outdoor activities, MTI has scheduled the annual MTI Scramble Golf Outing at famed San Francisco course, The Presidio Golf Club.  The Presidio is nestled near the Golden Gate Bridge and provides an amazing scenic round of golf.  For you runners and walkers, MTI will again host the 5k run as we did at the Fall Meeting last year giving members the opportunity for a little early morning exercise, fun and competition.

San Francisco has so much to offer members with historic downtown, shopping districts and Napa Valley.  We expect the MTI hotel block to sell out early, so register early.

Don’t miss out on this amazing historic location and a fun learning environment.

Full meeting details are being sent via mail in the next week.  You can view full meeting details online, register for the meeting and reserve your hotel room by CLICKING HERE.

If you have any questions, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

The New York branch (SR 514) compares the period of the housing boom in the “bubble states” (California, Florida, Arizona, and Nevada) with the rest of the country. “In states that experienced the largest housing booms and busts, at the peak of the market almost half of purchase mortgage originations were associated with investors.”

These studies suggest that a very large percentage of mortgage delinquencies have been by
speculators without any principal (and principles?) to lose in a default. This has significant
implications for designing programs to assist homeowners with their mortgages. “If . . .a large share of defaulters are not living in the collateral home, then programs such as HAMP may not be effective in stemming foreclosures. On the other hand, less sensitive policies, like blanket modifications offered regardless of occupancy status might be more efficient, but would provide assistance to a large class of multiple property owners – no one’s first priority for receiving taxpayer dollars.”

Since speculators with IO loans have little to lose by defaulting when prices go into freefall, it is reasonable to assume that a majority of those houses have already been foreclosed. As this gut of houses is gradually absorbed prices will finally have a chance to rise and, as important, liquidity will improve. People are hesitant to buy a new house when they are not sure they can sell their current one.

We still have a few years to go, but we are starting in the right direction.

To see the full report with supporting economic numbers and graphs, log into MyMTI and click on December Economic Report in the Resources Box on the right hand menu.

To view past editions of MTI TV, CLICK HERE.

As NAM anticipated, the final rule, which will go into effect April 30, 2012, is similar to what the Board discussed in a public meeting on November 30.  While scaled down from the original rule, the final rule still remains harmful to employers.  Specifically, the rule would alter what types of pre-election hearings can be held (such as who is even eligible to vote in the election) and what types of appeals can be filed prior to an election.  If certain matters can be discussed only after an election is held, these matters will often become moot, leaving the employer with no voice to be heard prior to the election.  The rule also appears to shorten the time between a petition for certification being filed and the election being held.  If most pre-election matters will be deferred until after the election, the election itself could take place on a very quick time frame.

NAM and MTI continue to explore all options the NAM has available to stop this attack on workplace election procedures and will notify you of any new information.   We will keep you advised on any developments.
Update provided by Joe Trauger, VP of Human Resource Policy – NAM

The Host Committee spent considerable time discussing results of surveys completed by members and have designed an amazing array of sessions that hit on the hot issues impacting heat treating companies including effective energy strategies, how to capitalize on social media as a small business, how to avoid being fined $1,000,000 on ITAR compliance, keys to water treatment and disposal and how to motivate and keep a highly satisfied workforce.

The host location, the iconic Palace Hotel has remained the landmark hotel in San Francisco with such timeless creations as The Garden Court’s stained glass dome and the 1909 Maxfield Parrish mural of “The Pied Piper of Hamlin” located in the Pied Piper Bar.  Located on New Montgomery Street in the heart of the San Francisco, just blocks away from Union Square, Chinatown, the Financial District and the Moscone Convention Center, the Palace Hotel is poised for convenience for the many things to do in San Francisco. A short drive or cable car ride away are Fisherman’s Wharf, the Golden Gate Bridge, AT&T Park and Golden Gate Park museums and attractions.

To kick off the meeting excitement, night one will feature the theme of “Sports Game Day” where attendees are encouraged to wear the college gear of their favorite sports team whether football, soccer, hockey, baseball, basketball, college, high school or youth athletic program.  People are passionate about their teams and we want to bring that passion and common bond to the Spring Meeting.

Get ready to experience an exciting learning environment in an extraordinary location.

Watch your email and mail box for registration information and forms.  If you have any questions regarding the spring meeting, contact our offices at 904-249-0448 or info@heattreat.net.

US Factories Expanded At Fastest Pace In Six Months In December.

Data Shows US Unemployment Down In November

Home Construction Data Signals Housing Turnaround

December Retail Sales Rose 4.7% From 2010

US Factories Expanded At Fastest Pace In Six Months In December.
Bloomberg News (1/4, Willis) reports, “US factories expanded in December at the fastest pace in six months, adding to evidence manufacturing is improving from India to the UK entering 2012. The Institute for Supply Management’s factory index climbed to 53.9 last month from 52.7 in November,” ISM’s data showed.

BBC News (1/4) reports, “It was the 29th month in a row that the sector has grown and the latest in a run of positive indicators from the US.”

The AP (1/4, Rugaber) reports, “In the US, factories hired more workers in December, saw the most growth in new orders since April and ramped up production.”

On its website, CNBC (1/4, Domm) reports, “The employment component rose to 55.1 from 51.8 in November, the highest since June. ‘Manufacturing might be a kind of small part of the employment picture, but it’s consistent with some of the other indicators which should show it (December employment) to be a good report,’” J.P. Morgan economist Michael Feroli.

The Minneapolis Star Tribune (1/4, Buchta) reports Bradley Holcomb, chairman of the ISM’s survey committee, “said that with new orders up and prices of raw materials down, ‘manufacturing is finishing out the year on a positive note.’”

CNNMoney (1/4, Isidore) reports, “The ISM survey also found new orders and the backlog of orders growing from November levels. Both are relatively recent turnarounds compared to the longer-term growth in the overall reading.” However, some “economists said it’s important not to read to much into the end of the year strength. Some of it may have been from businesses scrambling to make big ticket purchases before losing a tax break at the end of the year to write off the cost of that investment more quickly.”

Data Shows US Unemployment Down In November.
ABC World News (12/20, story 2, 2:40, Stephanopoulos) reported that there was “good news today on the economy,” as employment is increasing. Cecilia Vega reported that “it hasn’t looked this good in a really long time,” but in November almost “every state in the country saw unemployment drop,” and the US continues to see about 100,000 new jobs each month since July, which “hasn’t happened since before” the recession began. North Dakota is leading the US with an unemployment rate of 3.5 percent, well “below the national average of 8.6 percent,” due to “an oil boom.” According to Brookings Institute economist Howard Wial, “I think we’re going to see continued job growth and reductions in unemployment in the country as a whole.”

Home Construction Data Signals Housing Turnaround.
The AP (12/21, Kravitz) reports that “builders in November broke ground on homes – houses and apartments alike – at an annual rate of 685,000″ according to the US Department of Commerce. This represents “a 9.3 percent jump from October” and is “the fastest pace since April 2010.” The AP characterizes this as a “gradual comeback” for home constructions that “should add to the nation’s economic growth in 2011.”

The Washington Post (12/21, Irwin) reports that it seems as if “the deeply depressed housing sector finally seems to have found its bottom – and may even be starting to bounce back.” The Post also notes that “the number of building permits issued for new houses and apartments also rose, to 5.7 percent in November.” Brian Bethune of Alpha Macroeconomic Foresights is quoted saying, “The good news is that housing has switched from being a drag on overall growth, to modest positive contributions.”

Realtors To Revise Home Sales Numbers Down. NBC Nightly News (12/20, story 2, 1:30, Williams) reported that the National Association of Realtors is about to revise its home sales numbers down. “It appears housing sales starting back in 2007 may be even worse than we realized as in the numbers may have been off by 20%.” Diana Olick says, “It means the housing crash was worse than we thought. Even though we knew it was unprecedented. That headline will have a direct effect on already weak consumer confidence, which is just what the housing market does not need today. Remember, this is a backward looking revision. We have to think of in a, so it doesn’t change the market today.”

December Retail Sales Rose 4.7% From 2010.
The AP (12/29, D’Innocenzio) reports, “The holiday shopping season turned out to be two seasons: the Black Friday binge and a last-minute surge. Together, they added up to decent sales gains for retailers,” and “the doldrums in between showed how shoppers have learned to wait for the discounts they know will come. … In November, spending rose 4.1 percent. And from Dec. 1 to Dec. 24, it rose 4.7 percent compared with the same period last year, according to research firm ShopperTrak.”

Auto Sales Expected To Reach Highest Level Since 2008.
The USA Today (12/29, Snavely) “Drive On” blog/Detroit Free Press reports, “Auto industry sales in 2011 are expected to top 12.8 million cars and trucks, the highest level since 2008, price-tracking website TrueCar.com says.” The expectation is that “manufacturers will sell 1.2 million more vehicles than in 2010 when the industry sold about 11.6 million new cars and trucks.” J.D. Power and Associates forecast sales of 12.7 million, while Edmunds.com expects 12.8 million in sales. “This year was absent of a blockbuster sales month, but we see this pace of growth as healthy and sustainable in the coming year where the industry is going to sell nearly 14 million units based on the merits of its products and improved economy,” said Jesse Toprak, vice president of industry trends for TrueCar.com.December Retail Sales Rose 4.7% From 2010.

The AP (12/29, D’Innocenzio) reports, “The holiday shopping season turned out to be two seasons: the Black Friday binge and a last-minute surge. Together, they added up to decent sales gains for retailers,” and “the doldrums in between showed how shoppers have learned to wait for the discounts they know will come. … In November, spending rose 4.1 percent. And from Dec. 1 to Dec. 24, it rose 4.7 percent compared with the same period last year, according to research firm ShopperTrak.”

Update provided in cooperation with the National Association of Manufacturers

(to view the full 10 page report, login to MyMTI and click on MAPI Canadian Report under Featured Resources)

As the only G7 member that has fully recouped its GDP and employment losses sustained during the downturn, Canada has led the economic recovery among industrialized nations. However, with commodity prices topping out and dimming prospects for global growth, Canada will be hard-pressed to maintain its superior economic performance. Annualized GDP growth was a faster than- expected 3.5 percent in the third quarter of 2011, but weakening labor markets and export demand will reduce quarterly annualized growth to the 2 percent range in 2012, well below last year’s forecast.

Canada’s manufacturing sector faces severe cyclical and structural problems.  Manufacturing output has expanded by only 9 percent since the end of the recession in the second quarter of 2009, recouping just half of the output lost during the downturn. The forecast for Canadian manufacturing is downbeat for 2012, with output growth likely to be not much more than 2 percent.

The MAPI industry forecasting model suggests that the manufacturing recovery will continue to be uneven, with stronger growth in four key durable goods industries that feed into capital equipment. Anticipated 2012 growth leaders include chemicals, fabricated metals, and machinery.

The relatively sluggish economic recovery has moved worries about inflation well out of the spotlight. Despite highly accommodative monetary policy, the core consumer price index has remained solidly within the Bank of Canada’s 1 percent to 3 percent target zone before, during, and after the financial crisis and global recession.

Most commodity prices declined by more than 10 percent in the past several months in the face of a darkening global outlook (including a growth slowdown in China). Commodity prices are likely to continue to ease somewhat into 2012, adversely affecting terms of trade and sapping domestic purchasing power. Despite this, the Canadian dollar is expected to remain close to parity with its U.S. counterpart.

The labor market appears to be weakening. Total employment declined in both October and November of 2011, the first back-to-back monthly decline since the end of the  recession, driving the national unemployment rate up from 7.1 percent to 7.4 percent. Ontario, home to the large majority of Canada’s trade-dependent manufacturing production, has an unemployment rate of 7.9 percent, whereas Saskatchewan and Alberta, which are much more dependent on natural resources exports, have unemployment rates of 5.1 percent and 5.0 percent, respectively.

The overall outlook shows a projected annual GDP growth for 2012 of just 1.9 percent. Slowing growth in domestic demand is the primary culprit. If the prospect of a significant European double-dip recession materializes because of an inability to contain the sovereign debt crisis, the ripple effects on both the United States and Canada will be considerable.

Provided as a member benefit to MTI members through our partnership with the Manufacturing Alliance (MAPI).

In a press release, the National Association of Manufacturers (12/20) President and CEO Jay Timmons issued a statement after NAM presented oral arguments in its lawsuit against the NLRB. “This posting requirement rule is a perfect snapshot of the way the NLRB has conducted itself in the past year. The overreaching and activist policies inject the Board into the everyday operations of businesses, creating the potential for hostile work environments where there is no existing conflict.” Timmons also said, “The Board has overstepped its authority and ignored well documented congressional intent to implement an agenda that will place even greater burdens on job creators. Manufacturers have taken this battle to the courtroom because we need immediate action to rein in this rogue agency before it does even more damage to the American workplace.”

Roll Call (12/20, Ackley, Subscription Publication) reports that manufacturers have not limited their “fight to the courtroom. NAM, which is suing the board for issuing a rule that would require employers to post a notice of employee rights at workplaces, has taken its message to Capitol Hill and to the public.” Trauger said in a Friday conference call with reporters, “We believe that it is solely within the purview of Congress to determine the expansion of or redefinition of an unlawful labor practice or an unfair labor practice.” He “added that the poster rule is just one example of the NLRB’s ‘activist agenda,’ which could have dire consequences on employers and jobs.”

International Traffic in Arms Regulations (ITAR) is a set of United States government regulations that control the export and import of defense-related articles and services on the United States Munitions List (USML).  These regulations implement the provisions of the Arms Export Control Act (AECA), and are described in Title 22 (Foreign Relations), Chapter I (Department of State), Subchapter M of the Code of Federal Regulations. The Department of State Directorate of Defense Trade Controls (DDTC) interprets and enforces ITAR.  Its goal is to safeguard U.S. national security and further U.S. foreign policy objectives.

For practical purposes, ITAR regulations dictate that information and material pertaining to defense and military related technologies (for items listed on the U.S. Munitions List) may only be shared with U.S. Persons unless authorization from the Department of State is received or a special exemption is used.^[3] U.S. Persons (including organizations) can face heavy fines if they have, without authorization or the use of an exemption, provided foreign (non-US) persons with access to ITAR-protected defense articles, services or technical data.

The list of ITAR-controlled defense articles, services and technology (collectively “USML items”) changes. Until 1996–1997, ITAR classified strong cryptography as arms and prohibited their export from the U.S.  Another change occurred as a result of Space Systems/Loral’sconduct after the February 1996 failed launch of the Intelsat 708 satellite. The Department of State charged Space Systems/Loral with violating the Arms Export Control Act and the ITAR.  As a result, technology pertaining to satellites and launch vehicles became more carefully protected.

ITAR does not apply to information related to general scientific, mathematical or engineering principles that is commonly taught in schools and colleges or information that is (legitimately) in the public domain. Nor does it apply to general marketing information or basic system descriptions.   These exceptions must, however, be treated with extreme caution: college professors have been prosecuted for breaches of the AECA as a result of access to USML items by foreign graduate students and companies have been penalized for alleged breaches of the AECA where they allegedly failed to properly remove USML items from material used to market defense articles.  The U.S. Government has also taken action (albeit unsuccessfully) for the export of technical data that was (allegedly) already publicly available on the internet.

CLICK HERE to Read the Full Wiki Section on ITAR.

If you have not enrolled a key manager in the Y.E.S. Program, CLICK HERE for meeting details and enrollment information.

The overall economy is fully recovered from the 2008-2009 recession. Inflation-adjusted GDP fell 5 percent from its peak in the fourth quarter of 2007 to the trough in the second quarter of 2009. The economy spent six quarters in recession and it took nine quarters to return to the previous level of production. Data for the third quarter of 2011 show that GDP grew at a 2 percent annual rate and the level of inflation-adjusted output slightly exceeded the fourth quarter of 2007’s previous cyclical peak. Officially, the U.S. economy is in the expansion phase of the economic cycle. 

Manufacturing, in contrast to the overall economy, is only about one-half recovered from the 2008- 2009 recession. Production fell 20 percent from the fourth quarter of 2007 to the second quarter of 2009 in the recession, and has increased only 12 percent from the fourth quarter of 2009 trough to the third quarter of 2011. MAPI projects that the manufacturing sector will not reach its previous cyclical peak until the second quarter of 2014. 

The pace of economic growth improved in the second half of 2011. After growing at less than a 1 percent annual rate in the first half of 2011, the economy grew at a 2.5 percent annual rate in the second half of the year; this increase was largely due to pent-up demand for motor vehicles, supply chain inventory rebuilding, continued robust business equipment spending, and a decline in commodity prices that stretched consumers’ budgets. 

The 2012 forecast is for continued slow inflation-adjusted GDP growth. A major problem with the slow growth outlook is that this stall speed pace makes the economy susceptible to a double-dip recession, if induced by a major shock. The shock most likely to push the United States into another recession is a systemic bank lending freeze coming from the European sovereign debt crisis. A top domestic risk is that U.S. employers will become more risk averse and cut costs, thus halting job growth. Our modeling finds that the risk of a recession is an uncomfortably high 40 percent probability at this time. The base case is that GDP will rise a modest 2.1 percent in 2012 and 2.4 percent in 2013. Economic growth is projected to increase at an average annual rate of 3.3 percent for 2014 to 2016. 

Manufacturing sector growth was exceptionally strong in the first quarter of 2011 and then stopped growing in the second quarter. Manufacturing industrial production, however, rebounded in the third quarter. Measured on a quarter-to-quarter basis, manufacturing production grew at a 4 percent annual rate in the July-to-September time frame. 

To view the full 28-page report, log into MyMTI and click on MAPI Industrial Report in the Resources Box on the right side of page.

MTI’s Research Membership in MAPI, provides highly valuable industry sector information that we are able to provide members at no cost that would cost them thousands of dollars to obtain individually.  

Bluestreak™, a powerful Manufacturing Execution System (MES), is a true best of breed solution designed exclusively for the Metals Treating industry. Bluestreak™ MES expertly manages critical, real-time information across all of your manufacturing processes, while providing total visibility into operations and performance, so that you have the right information at your fingertips to remain agile and competitive in today’s demanding business climate.

You can contact Throughput/Bluestreak, at 888-785-0509 or info@go-bluestreak.com.

Some of their jobs-killing regulations include:

NLRB Ambush Election Rule
In the midst of a House vote on H.R. 3094, the “Workplace Democracy and Fairness Act,” on Wednesday, November 30, the National Labor Relations Board (NLRB) held a public meeting and proposed modifications to its “ambush election” rule. In June, the NLRB issued a proposed rule, which would significantly narrow the time between when a petition is filed for union certification and when a representation election takes place. While at first glance, the Board’s new interim solution looks significantly better than the rule it originally proposed in June, it would remain harmful to employers. Among other things, the resolution would alter what types of pre-election hearings can be held and what types of appeals can be filed prior to an election—and it appears to shorten the time between a petition for certification being filed and the election. It is unclear at this time when a final rule will be issued and what the final rule will look like—however, as pointed out in the meeting, there are less than 20 working days left in the year until NLRB member Craig Becker’s term expires (December 31, 2011), so a rule is likely in the coming weeks.

Posting Requirement Lawsuit
In August, the NLRB issued a final rule requiring all employers, subject to the National Labor Relations Act, to post a notice of employees’ right to join a union. The NAM filed comment opposing the proposed rule and continues to push ahead with its lawsuit against the NLRB, challenging this rule. The NAM has submitted its initial and reply briefs with the federal court and additionally, the House Education and Workforce Committee Chairman, John Kline (R-MN), along with 35 other Members of Congress, filed an amicus brief with the court supporting the NAM’s contention the NLRB lacks the authority to issue such a rule. The oral arguments for the case will be held the morning of December 19 at the U.S. District Court in Washington, DC. The NAM anticipates the judge will make her ruling prior to the new effective date of the rule, January 31, 2012.

Boeing Case
Earlier this year, the NLRB’s General Counsel filed a complaint against Boeing for opening a new production facility in South Carolina. Late last week, the International Association of Machinists (IAM) and Boeing announced an agreement to settle their dispute, which was the basis of the NLRB complaint filed against Boeing earlier this year. As part of the agreement, the IAM will drop its complaint against Boeing, but the NAM remains concerned about the precedent set by the acting General Counsel and its implications for manufacturers seeking to expand operations.

Workplace Democracy and Fairness Act—H.R. 3094
On November 30 the House took an important step toward halting the NLRB’s march against job creators by passing the “Workforce Democracy and Fairness Act” by a vote of 235-188. The bill would protect employers and employees from two of the NLRB’s extreme actions—the proposed “ambush election” rule and the NLRB’s Specialty Healthcare decision. H.R. 3094 allows employers sufficient time to prepare for an upcoming union election and ensures that workers have access to all the facts they need to make a fully informed and private decision about union representation—a decision that impacts their job and family. The bill would also undo the Board’s decision in Specialty Healthcare, which allows for the formation of “micro unions,” consisting of as little as two employees within one facility. These recent Board actions would place employers at a significant disadvantage. H.R. 3094 now awaits action in the U.S. Senate.

Action Requested for MTI Members:
Now is the time to contact your U. S. Senators and urge them to support the Workforce Democracy and Fairness Act. It is critical that manufacturers make it clear to the Senate that the NLRB’s actions are damaging your ability to create and retain jobs.

In just a few clicks, you can send a message to your Senator by CLICKING HERE.

We hope you will take a minute to contact your Senators.  This update provided by MTI in partnership with NAM and over 250 other manufacturing associations.

MTI started a very positive dialogue with Nadcap this past month via conference call in an effort to host a meeting at the Nadcap home office to address some of the more pressing issues that have come out in surveys to MTI members.

In a conference call last week, Nadcap representatives shared “there is a new philosophy under the new leadership.  One that is more customer focused and supplier friendly.”

Members on the phone call shared it was refreshing to hear the new thinking at Nadcap/PRI and they are looking forward to a potential in person meeting to discuss more in-depth, the issues outlined in the member survey results.

MTI is putting focus in the areas of:

- Enforcement Issues

- Auditor Consistency

- Using Technology to Let Those Who Are Unable To  Attend Meetings Participate

- Interpretation of Specifications

- Access to Specifications

- Pyrometry Specification Issues

MTI is reaching out to the leadership of AMEC as well to further coordinate the efforts of the association to weigh in on industry specifications.

If you have any questions or comments related to the work of the Technical Standards Committee, contact Tom Morrison at the MTI offices at 904-249-0448 or tom@heattreat.net.

The AP (12/9, Rugaber) reports, “Rising inventories are a big reason economists expect growth will improve in the fourth quarter. Most expect the economy to expand by an annual rate of about 3 per cent, up from 2 per cent in the July-September quarter.” The AP notes, “Over the past two years, companies have rebuilt their inventories after cutting them to the bone in the recession. That restocking is a big reason the manufacturing sector has been one of the strongest industries in the recovery.”

National Association Of Manufacturers/Industry Week Fourth Quarter Survey: Manufacturer Optimism Increases
In IndustryWeek (12/14), the National Association of Manufacturers Chief Economist Chad Moutray writes that the latest NAM/IndustryWeek Survey of Manufacturers shows that 80.2 percent of members “have a positive outlook — up from 65.4% in September. While this is still below the 86.4% reading of June, it reflects a nice turnaround in confidence.” Moutray writes, “The response was 13% lower for individuals saying that they are ‘somewhat negative,’ while the ‘somewhat positive’ and ‘very positive’ responses both edged higher. Even though uncertainties remain, particularly with regard to European sovereign debt, business confidence is clearly higher, which is boosting expectations for 2012.”

First-Time Unemployment Claims Down To Lowest Level Since February
The CBS Evening News (12/8, story 6, 0:20, Pelley) reported, “The unemployment picture is showing more tentative signs of improvement. The Labor Department reported today that the number of Americans putting in their first claims for unemployment benefits fell last week to 381,000. That’s the smallest number since February.”

The AP (12/9) says the “four-week average for applications, which smooths week-to-week fluctuations, fell for the ninth time in 11 weeks to an eight-month low.” The “downward trend in unemployment benefit applications bolsters the view that the economy has improved from its spring slump, when many feared another recession was likely.”

Business Inventories Increase 0.8 Percent In October
Bloomberg News (12/14, Willis) reports, “Inventories in the US rose in October by the most in five months as companies moved to bring stockpiles in line with demand. The 0.8 percent gain followed little change in stockpiles a month earlier,” according to the Commerce Department. “Sales climbed 0.7 percent during the month.”

The AP (12/14) reports, “When companies build up their inventories, it usually signals that they expect more sales. And the extra factory production needed to increase stockpiles boosts economic output.”

NFIB Report: Small, Medium-Sized Businesses Plan To Increase Hiring
The New York Times (12/13, Rampell) “Economix” blog reported, “Some good news in the job market: Small businesses plan to increase hiring, according to the latest report from the National Federation of Independent Business.” NFIB – “an industry group for small and medium-size businesses – conducts a survey each month on subjects like optimism, credit conditions and jobs. November’s survey showed that the net share of companies that were planning to hire workers was at its highest in 38 months.”       

Bloomberg News (12/13, Willis) reported, “The share of owners projecting higher sales, adjusted for inflation, rose eight points to 4 percent, the highest since April. A gauge of expectations for better business conditions six months from now climbed four points to a net minus 12, marking a third monthly gain from a record-low of minus 26 in August.”

The Washington Post (12/13, Harrison) “On Small Business” blog reported, “Eight of the 10 index components improved or remained unchanged from the October report, with the most substantial gains posted in sales expectations gains and outlooks for business conditions – again, not necessarily because more owners expect improvement in those areas, but because fewer owners expect sales and business conditions to worsen.”

Economic trend information provided by MTI in partnership with the National Association of Manufacturers.

The Hill (12/1, Bogardus) reports, “The two Democratic members of the labor board, Chairman Mark Pearce and Craig Becker, voted to advance the proposal, while Brian Hayes, a Republican, voted no.”

The AP (12/1) reports, “Unions and Democrats say the new rules seek to prevent unnecessary litigation and frivolous appeals that can hold up elections for months.”

Bloomberg News (12/1, Rosenkrantz) reports, “Republicans and business groups such as the National Association of Manufacturers said the labor board’s plan creates ‘ambush elections.’” McKnight’s Long Term Care News (12/1) also notes Manufacturers opposition to the proposed rules.

The Los Angeles Times (12/1, Savage) notes, “The board has only three members, the minimum allowed under law. And one of them, Democrat Craig Becker, is serving under a recess appointment that is due to run out by the end of” the year. “If Becker departs and Republicans block new Obama appointees, the board will lack a quorum and be unable to adopt rules. The board’s lone Republican, Brian Hayes, also has threatened to resign, leaving the remaining Democrats without the legal authority to press ahead.”

The Christian Science Monitor (12/1, Jonsson) reports, “In response, NLRB Chairman Mark Gaston Pearce said Wednesday morning that the rule could be modified so it would only affect organizing efforts that were held up by ‘needless litigation.’”

The Washington Times (12/1, Devaney) notes, “The House on Wednesday approved a bill designed to rein in the National Labor Relations Board in what GOP critics of the board said was an effort to stop the ‘rogue’ agency from rewriting federal labor law to increase the ability of unions to organize a work site.” During Wednesday’s floor debate, Rep. David P. Roe (R-TN) said, “The board seems utterly determined to finalize this flawed proposal, regardless of the damage to the integrity of the board and our workplaces.” Roe added, “Rest assured, we in Congress will continue to use every tool at our disposal to safeguard the rights of workers and employers.”

This week, Congress is focused on the need to create jobs, looking at flawed labor laws and excessive and burdensome regulations. On Wednesday, November 30, the House of Representatives took an important step in that direction and voted 235-188 to pass the NAM-supported Workforce Democracy and Fairness Act (H.R. 3094). The bill now moves to the Senate.

The Workforce Democracy and Fairness Act, sponsored by House Education and Workforce Committee Chair John Kline (R-MN), would protect employers and employees from two of the NLRB’s extreme actions—the proposed “ambush election” rule and the NLRB’s Specialty Healthcare decision.

The NLRB’s proposed election rule would dramatically narrow the time between when a petition is filed for union certification and when a representation election takes place. The rule could leave employers with just a few days to find legal counsel, prepare and communicate with their employees. In turn, employees would have limited time to determine whether or not they want to join a union.

H.R. 3094 allows employers sufficient time to prepare for an upcoming union election and ensures that workers have access to all the facts they need to make a fully informed and private decision about union representation—a decision that impacts their job and family.

The Board’s Specialty Healthcare decision would create a new standard for determining which “unit” of employees is eligible to vote in union elections. This would effectively allow collective bargaining units—or “micro-unions”—with as few as two people, and could cripple employers’ ability to manage operations effectively. H.R. 3094 overturns this decision and prevents the NLRB from pitting workers against one another.

“We need to re-establish common sense in labor practices, and H.R. 3094 is a good step in that direction. A recent NAM survey shows that nearly 70 percent of manufacturers say that the NLRB’s actions would make it harder for them to create jobs. The NAM calls for swift congressional passage so manufacturers can focus on economic growth and job creation—not unnecessary and burdensome regulation,” said NAM President and CEO Jay Timmons.

In choosing to pursue an agenda that threatens economic growth and the ability to create jobs, the Board is creating more uncertainty. Paired with a fragile economy and 9 percent unemployment, now is not the time to further stifle economic growth.

H.R. 3094 guarantees an employer’s rights to due process and freedom of speech and reinstates the standard by which employees vote in union elections. The NLRB’s destructive agenda can be halted, and this legislation does just that.

Our economy cannot wait for jobs to be created. American workers cannot wait. This legislation maintains a focus on jobs, and the NAM strongly encourages this bill’s passage in the Senate.

MTI, in its partnership with NAM, is monitoring all government actions and will keep members abreast of any action needed. 

The Wall Street Journal (12/2, Mitchell, Subscription Publication) reports the US was just one of a few large economies where manufacturing grew faster in November than in October. In the US, the ISM index rose to 52.7 in November from 50.8 in the previous month. A reading above 50.0 indicates the sector is expanding.

BBC News (12/2) reports, “According to the ISM report, manufacturing sectors that reported growth included textiles, electronics, and food and drinks. Chemicals, transport equipment and machinery were among sectors that contracted.”

Bloomberg News (12/2, Willis) reports, “Corporate purchases of new equipment, export demand, stronger consumer spending during the holidays and leaner inventories lay the groundwork for a pickup in production. At the same time, risk of recession in Europe may restrain US manufacturing, the industry that spurred the recovery.”

The CBS Evening News (12/1, story 4, 0:30, Pelley) reported, “Figures out today for the Thanksgiving weekend show sales totaled $50 billion for the four-day weekend. That’s up 8.7% over last year.”

However, the AP (12/1, D’Innocenzio) reports ShopperTrak “said more customers shopped the Sunday before Thanksgiving than the following Saturday and Sunday. That resulted in a modest 1.9 percent increase in sales for the three days that started” with Black Friday. Customer counts “actually dropped almost 2 percent, compared with Friday, Saturday and Sunday a year ago.”

Still, the Los Angeles Times (12/2, Li) reports “sales at major chain stores posted a 3.1% gain in November compared with the same month last year, according to a Thomson Reuters’ tally of 21 large retailers released Thursday.”

But the Wall Street Journal (12/2, Zimmerman, Talley, Subscription Publication) reports some big chains, including Target and Kohl’s, reported weaker-than-expected increases, and the overall gain was lower than the 5.5% increase in November 2010.

The Washington Post (12/2, Mui) says the “short-term surge in sales” last weekend “masked consumers still facing a long road to recovery. Many of the nation’s largest retailers revealed on Thursday that sales during the rest of the month were mediocre at best.”

BeaverMatic

BeaverMatic®, is an internationally recognized manufacturer of heat treating equipment From our past successes and solid installation base, BeaverMatic® remains steadfastly focused on its core competency to build a simplified yet dependable performance-proven furnace.

As environmental protection standards become stricter, BeaverMatic® has continued to evaluate its designs to maximize energy efficiency and savings for captive and commercial heat treaters.  BeaverMatic leverages their practical experience with furnace knowledge to improve processes that maximize operational quality and system efficiency.

If you would like more information on BeaverMatic, visit their website at www.beavermatic.com.

Ipsen

Ipsen, Inc., a top manufacturer of vacuum and atmosphere furnaces, is the leader in thermal processing technology. From vacuum furnace systems to our world-class Aftermarket Support team – Ipsen delivers quality.

Ipsen, Inc. designs and manufactures industrial vacuum furnaces, atmosphere furnaces and supervisory control systems for a wide variety of thermal processing markets including: Aerospace, Commercial Heat Treating, Medical, Energy and Automotive. Ipsen also employs the largest and most skilled Aftermarket Support team in the business to meet your needs for furnace controls upgrades, replacement hot zones, parts, maintenance and service.

If you would like more information on Ipsen, Inc., visit their website at www.ipsenusa.com.

MTI would also like to say THANK YOU to its full list of Diamond Member Suppliers:

BeaverMatic:  member since 2009

Eclipse Combustion:  member since 1995

GeoCorp, Inc.: member since 2008

Heatbath Park Metallurgical:  member since 1999

Inductotherm Group of Companies:  member since 2006

(Alpha 1/Inductoheat/Radyne/PV/T)

INEX, Inc.:  member since 2003

Ipsen:  member since 1995

J.L. Becker Company / CI Hayes:  member since 1995

Solar Manufacturing:  member since 2005

Surface Combustion:  member since 1995

Tenaxol Technologies:  member since 1997

MTI has over 40 top suppliers in the heat treating industry serving its members worldwide.  To see a full listing, log in to MyMTI and click on the suppliers tab.

If you are planning to take a ski vacation in 2012, we would encourage you to tie it in with MTI’s Winter Meeting and enjoy the incredible skiing Lake Tahoe has to offer.  We have a special 2-hour set of round tables where members will get to discuss with one another the topics most pressing to you.

The meeting is will be hosted at the Ridge Tahoe Resort, located on the top of Lake Tahoe Mountain and is walking distance from the famed Heavenly Valley Mountain.  We have an incredible room rate of only $134 per night which is good 3 days before and after our meeting, so you can come early or stay late.  Many members arrive early to enjoy the slopes.

We have until December 20th to sign the hotel contract and intend to sign if enough members express committed interest.  If you would like to attend, PLEASE click the link below and provide us the number that would attend and the dates you would intend to stay.

CLICK HERE to See Winter Meeting Details

CLICK HERE to Let Us Know You Will Attend

We hope you take advantage of this great opportunity to network and learn in an exciting location.  If you have any questions, please contact the MTI Offices at 904-249-0448 or info@heattreat.net.

MTI currently has over 160 member heat treat plants taking part in the monthly sales statistics program.  The program is completely confidential and is performed by a third-party research firm,  No MTI staff, volunteer leader or member has access to the individual numbers submitted.  We only see a compiled result provided for the general public.

These reports provide insight into how your company compares to the competition in your local district and nationally.  It shows your growth compared to the industry competition.  When you combine your sales numbers from this report with the quarterly sales formula’s provided by our DeWolf Quarterly Heat Treat Outlook, you can predict what your sales are going to be for the next 12 months.

This helps you gauge what future labor, energy and other major costs are going to be so you can more effectively plan the future.

It’s simple to participate.  Email Carla Quimby at the MTI Offices at carla@heattreat.net to request the form you need to begin participating in the Monthly Sales Stats Program.  You will need to provide sales figures for the previous year and current year to date.  You then email or fax that form to the contact info noted on the form and you will begin to receive the most important report you will look at each month.

If you have any questions, don’t hesitate to contact our offices at 904-249-0448 or info@heattreat.net.

Manufacturers use one-third of the nation’s energy and are committed to a strong domestic energy industry. Having diverse, reliable and affordable sources of energy is important to jobs, competitiveness and overall economic growth.

Tax increases on the oil and gas industry will cause jobs loss.

A federal tax increase on energy would place millions of jobs at risk – jobs that we cannot afford to lose in our current economic climate.

It will increase fuel costs for all Americans – both manufacturers and consumers.

Raising the price of fuel for manufacturers and the broader business community will further hurt their ability to create jobs – jobs that we need!

These new taxes will hurt the economy and the job market.

In fact, raising taxes on energy companies will make it more expensive to produce everything in this country.

Raising energy taxes for more government spending is NOT a step in the right direction.

Now is not the time to enact policies that will ultimately increase fuel prices and cost jobs. 

CLICK HERE to send a message via email or letter to your Member of Congress.

Not anymore!  MTI is pleased to announce it has launched USER GROUPS for members who are customers of Cornerstone Systems Visual Shop product and Throughput Consulting’s Bluestreak product.

Both of these USER GROUPS are private for customers of those systems who are members of MTI.  Members will be able to visit the group, post problems they are experiencing to gain insight from other users for potential solutions.  the opportunity to share and learn how members are using the product in creative ways will enhance productivity and compliance issues.

The goal is to connect members using the system so they can learn from each other and maximize their use of the products.  Cornerstone and Throughput will be members of their respective groups to provide further insight into any questions, ideas or issues members are having.

It’s easy to join the USER GROUPS:

- CLICK HERE to go to MyMTI

- Log in with your email address and password

- Click on the Groups Tab at the Top

- Type in USERS in the Search filled and click Search

- Click the “+” sign on the right of USER’s Group You Want to Join

Once you are confirmed and approved as a customer for the respective user group you will be able to post and respond to discussions, and upload resources.

KEY NOTE:  Once you are a member of the group you will receive an email with a link to any new discussions or resources.  You don’t have to log in to respond or view the resource.  Simply click the View Discussion or Resource button in the email and it bypasses the login and takes you right to the discussion or resource.

As with all of MTI’s online discussions, the same Anti-Trust Statement and Rules that apply to our in person meetings apply to our online discussions. 

If you have any questions, please don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net for assistance. 

To see the full report, log into MyMTI and click on November Economic Outlook in the Resources Box on the right hand side of your profile.

In addition to training and education, the locations and the pricing MTI is able to negotiate for members as a group, are two of the greatest features of MTI national meetings.   These locations offer everyone the opportunity to step away from the office and gain a new perspective of their industry and company.  For couples, it fosters the strengths of their relationship enabling them to get away and enjoy some quality time at a great location.

Every general meeting has something for everyone within the educational sessions and networking opportunities and the 2012 Spring Meeting will be no different.  Hosted at the beautiful Palace Hotel in San Francisco, you are in the heart of San Fransisco located on New Montgomery Street, just blocks away from Union Square, Chinatown, the Financial District and the Moscone Convention Center, the Palace Hotel is poised for convenience. A short drive or cable car ride away are Fisherman’s Wharf, the Golden Gate Bridge, AT&T Park and Golden Gate Park museums and attractions.

The iconic Palace Hotel has remained the landmark hotel in San Francisco with such timeless creations as The Garden Court’s stained glass dome and the 1909 Maxfield Parrish mural of “The Pied Piper of Hamlin” located in the Pied Piper Bar.

Registration will open January 2012.  Make sure to mark your calendars for the MTI Spring Meeting.

For up to date details on the Spring Meeting, CLICK HERE or contact us at 904-249-0448 or at info@heatreat.net.

If you would like to see a district breakdown and supporting graphs including the 5-year trend graph, log into MyMTI and click on Sales Stats in the Resource Box on the right hand side of your profile.

The NLRB recently indicated that it would give employers as few as 10 days to communicate with their employees between the time they learn that a union is trying to organize the workforce and the election. These new rules are not needed. Currently more than 95% of elections occur within two months and unions already win more than 65% of all organizing elections. The bottom-line is that the NLRB’s actions undermine employer-employee relations.

In August, the NLRB also adopted a new standard for determining which group or “unit” of employees will vote in the union election. This new standard makes it almost impossible for anyone to challenge the bargaining unit chosen by the union. The decision will divide employees.

In order to rein in the NLRB’s aggressive agenda, Rep. John Kline (R-MN), Chairman of the House Education and the Workforce Committee, introduced H.R. 3094 addressing both of these unnecessary and damaging NLRB decisions. This legislation guarantees an employer’s ability to participate in a fair union election by establishing a 14 day timeframe for an employer to prepare a case to be heard by the NLRB. It ensures employees are able to make fully informed decisions by providing that no union election will be held in less than 35 days. It would also reestablish decades of law by reinstating the standard by which employees vote in the union elections, preventing the possibility of several “micro-unions” at one facility.

Please contact your member of Congress urging them to support H.R. 3094. It is critical that manufacturers make it clear to Congress that the NLRB’s actions are damaging your ability to create and retain jobs.

Contact Your Members of Congress in a few easy steps at MTI’s Government Relations Website:  CLICK HERE to TAKE ACTION.

Once on the Take Action Website, scroll down and enter your information and click SUBMIT.  It will show you your member of Congress and the letter you can send either electronically or via mail on your letterhead. 

It’s that easy to let your voice be heard.  If you have any questions, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

To see the full 3-page report, login into MyMTI and click on MAPI Brief in the Resources Box down the right hand side of your profile.  MTI’s membership in the Manufacturing Alliance provides key information to members you would pay thousands for individually.

Take a look below at The Corps Group’s newest video sharing their program with you.

Only 30 slots available.  To see full details and registration for the Y.E.S. Program, CLICK HERE.

CLICK HERE to See Past Editions of MTI TV.

All participating members receive a complimentary copy of the study.  If you would like to purchase a copy, contact the MTI Offices at 904-249-0448 or info@heattreat.net.  Cost of the survey is $95.

Sponsors already committed include Beavermatic, Eclipse Combustion, Invensys Eurotherm, Surface Combustion, Williams Industrial Service.  Others are in the works and MTI expects the lineup of sponsors and exhibitors to be a who’s who list of top industry providers.

FNA 2008 in Nashville blew all past attendance records with 42% more attendees than the next largest FNA Show.   MTI and media partner, Industrial Heating Magazine, feel attendance in 2012 should be another record year.

Leadership has shared that the technical programing, business opportunities with exhibitors and the overall experience will be second to none.   Check the video below to feel the experience.  For more information, CLICK HERE to visit Furnaces North America.

Few of the pundits are small business owners. But the National Federation of Independent Business (NFIB) – the national, non-profit organization representing small and independent U.S. business – polls small business owners each week. One question in each survey asks, “What’s the biggest problem you face today?”

The biggest problem reported today by actual business owners? Demand.

Since an NFIB survey began in 1986 of small businesses, “Taxes” has consistently held the top spot, surpassed just a few times by “Regulation” briefly in the mid 1990s and “Insurance” in the early 2000s. At the onset of the 2008 recession, however, “Sales” surged to number one for the very first time. It’s remained that way ever since.

Interestingly, “Interest Rates & Finance,” which we can safely assume includes access to debt and equity capital, has never been reported to be a problem. It seems the NFIB poll results debunk the common claim that “it’s a lack of capital.”

Why has “Demand” risen to the top and surpassed “Taxes”?

Sales suffer during slow economic times. When sales suffer, companies have a hard time booking a profit. When profits aren’t being earned, all other problems are trumped. Taxes are only a problem when there’s profit.

Since the start of the NFIB survey the incidence of “Sales” being reported as the number one problem rises during each recession.

For the first time ever, the biggest problem reported by small business owners is lack of demand, i.e. sales.  What can we do to spur demand? 

Good question. Higher demand comes, of course, from higher spending. Unfortunately, we appear to have reached the end of the forty-year debt binge that occurred at all levels – government, business, and individual. The borrowing funded spending that could only be sustained with continued borrowing. Borrowing capacity is limited, however, and many have, or are now, suffering from excess debt (“leverage”). We’re in the hangover that follows the binge. How do we recover? Abstinence. Unfortunately, abstinence from debt and deficit spending is the opposite of what we need. It’s the problem.

Governments, companies, and individuals have moved, by necessity as well as by cultural shift, to debt reduction. Instead of borrowing money to spend more, each group is cutting spending and paying down debt. The result is reduced demand (buying) throughout our economy.

In addition, economic uncertainty is prevalent. People and companies save more and spend less in the face of uncertainty. So, the results of the NFIB survey are not surprising. And there’s no single person (or organization or group) to blame nor is there any easy fix.

Of course, so long as the U.S. government is willing and able to borrow and run deficits, it can prop up demand during weak economic times. How? By pumping up government spending. This is what it’s done in the past (at least since it learned a lesson during The Great Depression). The result has been shorter and shallower recessions.

In the current recession/economic slowdown, our government has again pulled this important anti-recession lever – that’s one big reason we’re running huge deficits – but it hasn’t worked. The demand gap is apparently too large. Also, our federal government is showing signs that it has reached its debt load limit. As such, going forward, our government will have limited ability to generate demand through spending, at least until it adds borrowing capacity by either paying down debt (“deleveraging”) or by increasing revenue (raising taxes or expanding the economy), or both.

This is the peril of our failure to pay off debt during the good times. Our only choice now may be to wait it out. Over time, debt loads will be paid down, optimism will return, and spending will naturally recover.

How long might this take? Nobody knows. That’s why everyone remains cautious.

Article provided by The Business Owner, an MTI Affiliated Publication.  You can download the full publication by logging into MyMTI and clicking on Business Owner in the Resources box on the right hand side of page.  The Business Owner includes numerous  articles on business, taxes and finances for businesses just like yours.

In an era of globalization, when no country can be the lone source of all innovation and companies need to work with international partners to bring new products to markets, it becomes a question as to who benefits from innovation and who captures the most value. Several recent studies single out Apple’s popular iPod, iPad, and iPhone devices as examples of innovation in the electronics industry, and show that while Apple manufactures its products offshore and has a global roster of suppliers, it is able to capture the majority of the financial value and provide thousands of well-paying jobs for knowledge workers in the United States. The company accomplishes this by keeping the high-value functions such as product design, software development, and marketing in the U.S. and building an ecosystem for the products to raise entry barriers for competitors. As long as U.S. firms remain dynamic and innovative, and take risks, they should continue to capture a large share of the value created from globalization, not only for American investors but also for workers with advanced skill sets.

To view the full 5-page article, log into MyMTI and click on MAPI Brief under the Resources Box on right hand side of your profile.

Dan’s company, THE HERRING GROUP, Inc. specializes in rapid response to technical and business needs in the Heat Treating and Sintering Industry. They do their job in the most cost and time effective manner. Your deadlines and needs are their only priority.

What sets Dan’s group apart is their unique ability to understand how to provide information that is useful at every level within an organization, in clear and concise terms. Dan’s customers state that by using their services they have increased productivity, lowered energy and operating costs, improved worker output and satisfaction and increased company profitability.

Your company will benefit from their 25+ years of practical, engineering and scientific training in problem solving, process applications, and “hands on” experience.

You can contact Dan Herring, the Heat Treat Doctor, by CLICKING HERE for our online trouble shooting form or at 877-838-9474.

To see a full report as well as trend graphs for each district, log into MyMTI and click on Sept. Sales Report in the Resources Box on the right hand side of your profile.

Owners who have had students in the program comment they are committed to putting their entire management team through the program so there is consistency throughout their entire leadership. 

MTI has already opened up enrollment for the 2012 program.  Members are encouraged to act fast to enroll someone from their plant due to an expected sellout.  The class is limited to 30 students.

For full 2012 YES Seminar details, CLICK HERE.

Click the video below to see a energetic highlight video of the 2011 program.

If you have any questions, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

MTI billings have started to level off following the rapid rise from the low in 2009.

Billings growth is on track to gain 19.3% at the end of 2011 and then slow to a 4% pace at the end of 2012. A long look out to the end of 2013 suggests gains of 5%.

To see the full report with graph trends as well as the formula calculations to project your company future sales, log into MyMTI and click on Heat Treat Outlook Report in the Resources Box on the right hand side of your profile.

If you have any questions on MyMTI, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Click Below to See a Full Picture Gallery of the Fall Meeting

CLICK HERE to View Past MTI Meeting Highlights

CLICK HERE to View Past MTI TV Webcasts

The AP (10/18, Wagner) reports, “Output at US factories increased 0.4 percent in September after gaining 0.3 percent in August, the Federal Reserve said Monday. Production of business equipment rose 1 percent, the third straight increase of 1 percent or more. Transit equipment and information processing equipment drove the gain.” Auto output grew “for a third straight month, home electronics production for a fifth.”

BBC News (10/18) reports, “Manufacturers cut 13,000 jobs in September, having cut 4,000 in August and the average working week for factory workers also declined. Manufacturing had been among the first part of the economy to show recovery when the recession ended in 2009.”

The Los Angeles Times (10/17, Semuels) “Money & Company” blog reported, “Manufacturing, once a sector all but left for dead in the US economy, is playing a big role in the country’s recovery. Auto companies are making cars again, spurring demand for suppliers and parts manufacturers.”

Update Provided in Partnership with the National Association of Manufacturers

To make the best electricity buying decision, you must garner the pertinent facts, assess the risks, determine which supply solution best fits your specific needs, and then properly implement the supply contract you choose. The “one size fits all model” rarely works effectively when dealing with electricity supply because electricity prices vary quite a bit between suppliers, service territories, contract type, and customer usage and credit profiles. Importantly, the states above each have a robust competitive market with many suppliers eager to acquire new customers, but each state is unique. One supplier does not necessarily provide the best prices for a certain types of customers, nor does one supplier consistently price similar types of customers. Accordingly, a consumer is best served by making as many suppliers as possible compete aggressively for its business on the customer’s timetable and based on the customer’s specific requirements.

Electricity is a commodity that is traded in a futures market in “wholesale” transactions comprised of large blocks of electricity. “Retail” suppliers sell to end use customers at retail prices that include the supplier’s costs to serve retail customers and a margin set by the supplier.  Electricity is priced differently by each supplier based on each supplier’s internal process for evaluating the customer and the margin standards established by the supplier’s management. Wholesale and retail electricity prices change continually, all day, every day. Retail prices are “local” and customized to the electricity service territory where the electricity is being delivered, consumed, and sold. Among many factors, suppliers consider a consumer’s unique usage profile, credit status, and payment history when making price offers to consumers.

Different Buying Approaches

The first step in your electricity buying process is to determine the approach that best fits your needs and goals. There are three distinct ways to buy electricity. One is to work directly with the electricity suppliers. If you follow this path, you should interact with many suppliers, perform your own due diligence, analyze the supplier contracts, and ideally, compare supplier prices in a way that you are assured that you can make a “green apples to green apples” comparison of prices.

Another approach is to work with an independent consultant, such as APPI Energy. Why use this method? For the same reason you use an expert to assist with IT, insurance, or other business services where you do not have experience and/or ready and reliable access to current electricity market intelligence, resources, and solutions. Many customers benefit from the consultant’s analysis, market positioning and awareness, and ability to make many suppliers compete for the customer’s business on the customer’s timetable. Be sure the consultant you utilize actually has the experience and expertise necessary to develop a solution that meets your needs after a careful analysis is done of your situation. Questions to ask include:

• How long have you been in the electricity consulting business?
• Is your business licensed/registered with my state’s Public Utility Commission?
• How many customers have you served in my local market?
• Do you place customers with one supplier or many? Please name the suppliers.
• Do you assist customers after the supply contract is signed? What is your follow-up and customer service process?
• Can you provide references from three customers similar to me?

Finally, the third way to buy electricity is to participate in an aggregated buying group. Many buying groups have been established with local Chambers of Commerce and other affinity groups. Most of these aggregations offered only a one supplier solution and one type of supply contract. This may work to your advantage if you are a very small consumer that could not obtain competitive pricing from a supplier another way. How do you verify that the supplier’s price is a competitively low price? Also, if the buying group’s price is not “firm/final/fixed” when you are asked to enroll in the program, how will you know what the price is that you will be required to pay. If the group program provides only one term length, 24 months for example, and one set of contract conditions, you should be comfortable that this is the best supply contract for you. Buying electricity in an aggregated group does not necessarily guarantee that the price will be lower than if you buy alone. The “volume” of the aggregated load is only one factor that suppliers consider in pricing electricity.

Buying electricity in today’s competitive markets is not like buying a fungible product like pencils. Competitive prices are based on many factors and change continually. The price that you “should” pay for electricity should be different than the price your neighbor pays. Is your usage profile more desirable to a supplier than those of other participants in the buying group? Do you want the same contract conditions and the same length of contract as everyone else? Is your credit status better than some/ most/ all of the other participants in the aggregated group?

Regardless of the buying approach you utilize, it is critical to be aware of and to understand the many types of electricity supply contracts that exist.

Electricity Supply Contracts

Electricity suppliers have many forms of supply contracts. Each contract has different terms and conditions and importantly, a different pricing mechanism. But remember, an electron is an electron, so the electricity is the same no matter which supplier you choose and no matter the type of contract you choose. Supply contracts generally fall into in three categories:

• Fixed Price/Full Requirements
• Index or Variable
• Block and Index

Fixed Price/Full Requirements

This contract provides one fixed price for all of the kilowatt hours (kWh) you consume during the full term of the contract. Some suppliers provide a fixed price for year one and another fixed price for each subsequent year, reflecting the different future costs of electricity. Typically, a fixed price/full requirements contract includes in the fixed price most or all of the ancillary charges that are required components in electricity supply. Ancillary charges include line losses, capacity, and the transmission charge associated with supply. It is critical that you know the components included in the fixed price. As you can see, all “fixed prices” are not necessarily comparable because they may not include all of the same supply components.

Decision-makers have different priorities based on goals and risk assessment. The primary benefits with this contract are that you know what your electricity supply costs will be for a pre-determined period of time, you eliminate the risk of price increases during the term of the contract, and you achieve budget certainty. This approach provides the most stable/predictable financial performance over the term of your electricity contract.

A downside is that if electricity prices decrease at some point during your term, your fixed price may be above the then current market price. Although lower market prices are a possibility, one must weigh this against the benefits of “locking-in” a price and eliminating the risks of price volatility and budgeting uncertainty.

Index/Variable

This contract provides prices that change each month and that are pegged to a variable index, normally the day ahead or real time index, as determined by the constantly changing prices on your electricity grid system.  Index contracts provide greater flexibility in managing costs and provide the potential for lower average costs during the long term. The potential reward of lower average costs comes with the risk of potentially higher prices and monthly price changes that are sometimes dramatic upticks. Many consumers cannot tolerate price and budget fluctuations and uncertainty. This approach is most often used by large consumers who understand the risks associated with variable prices, and can dedicate staff time to managing the supply contract. If you believe that prices will decrease in the future, index pricing may be a viable solution for you, but keep in mind that if prices go up, your costs will increase. Some index contracts allow for a one-time conversion to a fixed price. Managing the risk is critical to success with an index contract.

Block/Index

This contract type is a combination of the other two. The consumer fixes a price for “blocks” of it usage, and pays an index price for the remaining segments of its usage. Your specific usage characteristics are critical in determining if this contract type best fits your needs.  

Contract Questions

Once you have selected a buying approach and the type of supply contract, you must review completely the terms and conditions in the contract before executing it. The contract is an obligation that the consumer must live with for the full term of the contract. It should be entered into with the expectation that the contract term will be fulfilled. Early termination of a supply contract triggers actions by the supplier, and often costs that the consumer must pay that vary in contracts.

Questions you should ask include:

• What specific components are included in the price?
• Is there a bandwidth/swing/tolerance provision in the contract? This is important if your future usage differs from your historical usage, up or down.
• How can a “change in law” provision affect my price and/or the contract as a whole?
• What if my business closes or moves?
• Is the contract assignable?
• How reliable is the supplier and does it have superior customer service?

In summary, buying electricity is a process that can yield benefits to consumers who are able to compete effectively in the dynamic electricity markets that are very different across the U.S. The deregulated markets should be approached by consumers with the attitude of “caveat emptor” or buyer beware. But, the consumer that develops a strategy and implements a process that fits its needs can successfully reap the benefits of competition, with the most important one being a price for electricity that is lower than the default supply tariff rate with its local utility. Ask the right questions. Gather the pertinent facts. Assess the risks. And finally, implement the decision that best fits your needs.

Provided in Partnership With Affiliated Power Purchasers International LLC (APPI Energy), MTI’s Official Energy Provider and an independent energy consulting firm.  To learn how APPI can help you, contact Kathy Kiernan at kkiernan@appienergy.com or 1-800-520-6685. View more at www.appienergy.com.

Perhaps the biggest anti-corruption story in 2010-2011 has been the well-chronicled entry into effect of the UK Bribery Act.^[2] This law is, in some respects, broader in scope than the FCPA. It addresses both commercial bribery and bribery of government officials, and has global reach, applying to any company with a demonstrable business presence in the United Kingdom. The international business community is anxiously waiting to see how aggressively the UK will enforce the law.

To a certain degree, the aforementioned events have overshadowed other significant anti-corruption legislation in critical markets for U.S. companies operating globally. This is particularly true in the so-called BRIC (Brazil, Russia, India, and China) countries. To monitor these developments, MAPI has embarked upon a series of reports detailing anti-corruption activity in each of these nations. Comprehensive examinations for Russia^[3] and China^[4] have been released, and similar examinations of events in India and Brazil are expected before the end of the year.

This Issues in Brief highlights the various developments in the BRIC countries (covered more thoroughly in separate MAPI publications) and promotes other steps we are taking to communicate these significant anti-corruption events to our membership to help companies refine their compliance activities accordingly.

Why Single Out the BRIC Countries? How Are They Addressing Corruption?

The BRIC markets are of particular importance to MAPI member companies. In the first decade of the 21st century, these countries—along with South Africa—contributed more than one-third of the world’s gross domestic product (GDP) growth, and have increased to one-fourth of the world’s economy in purchasing power parity terms.^[5]

Unethical and corrupt practices have long been considered obstacles to investing and doing business in the BRIC countries. Even where laws were ostensibly in place to rectify these problems, enforcement was often lacking. Notwithstanding this lamentable history, recent developments in the BRIC countries demonstrate a growing trend toward the acceptance and incorporation into domestic law of internationally recognized anti-corruption standards and an acknowledgment that such measures are an important factor in allowing concerned countries to integrate into the global business community, become more attractive to foreign direct investment, and realize or sustain goals of economic growth and expansion.

What exactly is going on in terms of anti-corruption crackdowns in the BRIC countries? In February 2011, China expanded its anti-bribery law to criminalize bribery of public officials outside China and officials of international organizations (thus harmonizing its domestic law with the United Nations Convention against Corruption). The changes to the law were set forth in a series of amendments to Chinese criminal law that became effective May 1, 2011, and apply to all companies, enterprises, and institutions that are organized under the People’s Republic of China (PRC) law (e.g., Sino-foreign joint ventures, wholly owned foreign enterprises [WOFEs], and foreign companies with representative offices in China) and to PRC companies and citizens.

Later in May 2011, Russia made three necessary changes to its law, clearing the way for the country to be accepted into the Organisation for Economic Co-operation and Development (OECD) Working Group on Bribery. Those changes included making it illegal to bribe foreign officials, lengthening the statute of limitations for foreign bribery committed by legal entities, and significantly increasing the sanctions for both natural and legal persons for the offense of bribery.

In March 2011, Indian lawmakers introduced legislation to criminalize foreign bribery and harmonize domestic anti-bribery laws with the UN Convention. Moreover, after growing public unrest this summer—marked by a hunger strike by a prominent Indian septuagenarian anti-corruption activist—the government agreed to consider a strengthened bill to create a Lokpal (an ombudsman’s office). The office would be accountable neither to courts, the legislature, nor voters, and would have total discretion to identify, investigate, and prosecute any public official (including the president, members of parliament, and judges) suspected of corruption. The proposed office would be made up of civil society leaders with a track record for honesty and integrity, not elected politicians.

In Brazil, the parliament is considering an update to its related laws that would prohibit the country’s companies and citizens from bribing foreign government officials and enhance the accountability of legal entities for bribery committed on their behalf.

Only time will tell whether these developments in the BRIC countries will have any real impact on corruption and bribery within their borders and beyond, or with individuals and entities subject to their jurisdiction. Nonetheless, the trend is promising.

Compliance Implications for U.S. Companies

Most MAPI member companies that operate globally have long been seriously monitoring their FCPA exposure. As such, their anti-corruption compliance activities are generally well refined. Recent developments, however, such as the UK Bribery Act and the growing anti-corruption focus in the BRIC countries, serve as a reminder that international business dealings can simultaneously expose companies to enforcement scrutiny for charges of corruption in a number of different jurisdictions. This ongoing evolution of global anti-bribery laws necessitates that companies review their anti-corruption compliance programs to ensure that they consider the nuances of the different national legal regimes to which they might be subject. As enforcement authorities worldwide continue to expand their extraterritorial jurisdiction and cooperate with one another in anti-corruption campaigns, companies must approach their related compliance efforts from a global perspective.

Provided in Partnership With the Manufacturer’s Alliance (MAPI)

Written by Fred Stocker – VP and General C0uncil

The CBS Evening News (10/7, lead story, 3:20, Pelley) reported, “Today we learned that unemployment in September was 9.1%, unchanged, stuck in the nines now for 27 of the past 29 months. In September, the economy did gain 103,000 jobs, but that’s a drop in the bucket when you consider the net job loss since the recession began is 6,649,000.” The story features the Honeywell CEO saying that his business is just waiting to see whether the economy will improve or not before it starts hiring.

The CBS Evening News (10/7, story 2, 2:40, Pelley) followed up by remarking, “looking through the Labor Department report today, this really caught our attention. Nearly half of the 103,000 new jobs really weren’t new. The number includes 45,000 Verizon workers who went back to work after a strike.” CBS (Quijano) added: “Two million Americans have been out of work for two years or more.”

NBC Nightly News (10/7, story 4, 2:35, Williams) reported, “Well we got the employment report for September this morning. It was better than the experts expected. Employers added 103,000 workers to their payrolls, though that number included Verizon Communications workers that went back to their jobs after a strike. Unemployment rate stayed steady, 9.1%. But that’s part of the battle cry of the protest movement ‘Occupy Wall Street’ which has spread far beyond New York City.”

The Washington Post (10/7, A1, Irwin) reported on its front page, “Job creation picked up some in September…helping ease fears that the economy could be slipping into a new recession.” Yet the report “overstated the strength of the numbers: 45,000 Verizon workers who had been on strike in August went back to work, so the underlying pace of job creation was a more modest 58,000.” That is interpreted as employers “adding jobs more cautiously and slowly than they were earlier in the year.” Job growth “is too weak to accommodate the 125,000 or so additional Americans who join the labor force every month.” In response, “the White House used the news to push President Obama’s jobs bill.”

The New York Times (10/7, A1, Rich, Subscription Publication) reported in a front-page story that the report succeeded in “staving off the bleakest forecasts for now.” The report “highlighted the challenges for an administration faced with an economy that has struggled to deliver significant employment growth since the recovery started more than two years ago.” While the “number of new jobs was well more than analysts had expected,” yet “there were still 14 million people out of work, 6.2 million of whom have been on the job hunt for six months or more.”

McClatchy (10/8, Hall) reported, “Manufacturers, who had been adding jobs for much of the year, trimmed payrolls by 13,600 in September. Chad Moutray, chief economist for the National Association of Manufacturers, in his blog, shopfloor.org, attributed the declined to ‘sluggish economic growth, worries about the global marketplace and sagging consumer and business confidence.’”

In early September, 100 MAPI member executives participated in a brief survey to convey the impact this turbulence is having on their businesses. Although 35 percent of respondents have seen a recent drop in orders, only 19 percent are curtailing investment plans because of the economic climate. Given an increasingly cloudy outlook, the question is obvious: What can manufacturers do to optimize profitability in a period of economic uncertainty?

Pricing is one of the most powerful tools that companies have at their disposal to influence profitability. Improving pricing by 1 percent delivers significantly higher margins than similar adjustments to cost of goods sold (COGS); volume; or selling, general, and administrative expenses (SG&A) (Figure 1).

Figure 1 – Impact on Operating Margin of Improving Each Metric by 1%

Source(s): Monitor Pricing Capability Study

Conversely, giving customers a 5 percent price concession necessitates a 17 percent increase in volume to recover that lost operating margin.

Clearly, pricing is an effective lever to pull, but what are some of the best practices? Value-based pricing, when done well, certainly qualifies.^[1] Companies with strong execution of value-based pricing enjoy operating profits 24 percent higher than average, and more than 30 percent higher than companies with cost-driven pricing strategies (Figure 2).

Figure 2 – Operating Profit by Pricing Strategy, 1.0 = Industry Average

Source(s): Monitor Pricing Capability Study

Pricing Methodologies

Another MAPI survey sought to collect information and tools for improving pricing programs; respondents included executives from more than 50 companies (medium to large global manufacturing firms, predominantly business-to-business in nature). For this group, value-based pricing is the most widely used pricing methodology, employed by 84 percent of respondents. Members also rely on other approaches, depending on the sales model, business unit, industry, etc.; 73 percent use fixed-price techniques and 71 percent use cost-plus pricing.

In terms of effectiveness, value-based pricing delivers the most positive impact: for example, 95 percent of members using value-based pricing are satisfied with the approach’s results, compared to just 52 percent for cost-plus.

Members’ best practices for pricing methodologies:

• Differentiate pricing based on factors such as value-added, competition, and specialization.^[2]
• Change sales compensation to incentivize value selling (e.g., include a margin accelerator).
• Conduct rigorous segmentation before pricing (e.g., value- or needs-based segmentations).
• Incorporate pricing gates into the new product development process.

Pricing Organizations

More than half of the respondents have dedicated pricing staff at corporate headquarters, and nearly two-thirds have dedicated pricing headcount in business units. However, only 15 percent have a VP-level pricing executive. Not surprisingly, for most respondents, pricing is a function embedded in sales and marketing.

Organizational tips from members on driving pricing effectiveness:

• Allocate dedicated headcount to pricing.
• Develop an internal pricing help desk (which can also offer continuous training).
• Start an internal pricing council to drive process standardization.
• Partner with an internal finance expert, such as an accountant from one of your manufacturing facilities (since marketing departments typically have a weak understanding of product costs).
• Hold quarterly or monthly pricing update meetings to align pricing to market trends and competitive changes.

Pricing Tools and Studies

Every business has pricing leaks (caused, for example, by salespeople who offer overly generous freight terms or concede an extra 15 days in the payment terms). Many members recommended identifying leaks by conducting a pricing study with the help of a third party. In our sample, although nearly three-quarters of respondents have performed a thorough pricing study in the last three years, only one-third used an outside adviser. Pricing studies can help with a variety of initiatives, including competitive positioning, pricing architecture, and varying discounts by customer purchasing power.

Other member recommendations for pricing studies:

• Before starting a study, ensure invoicing data are accurate.
• Conduct studies for major new products or before major price increases.
• Pay special attention to any dissonance between original equipment (OE) and maintenance, repair, and operations (MRO) pricing.
• Be careful when implementing major pricing changes during periods of economic upheaval, as analytics based on historical data can be invalid.

Members recommended several firms to help perform studies; Monitor Group and Strategic Pricing Associates received the most positive mentions.

What Best-in-Class Looks Like

We also asked members to describe the attributes of an organization that is best-in-class in value-based pricing (Figure 3).

Figure 3 – Characteristics of a Company that is Best-in-Class in Value-Based Pricing

Source(s): Manufacturers Alliance/MAPI

The most commonly cited attribute is a clear understanding of customer needs, including their business, the value they provide to their customers, and their next best alternative. Further, there must be alignment among finance, operations, sales, and marketing, and a tight process to capture pricing leaks.

Other attributes of a best-in-class value-based pricing organization include:

• Uses a pricing approach that takes customers’ lifecycle costs into account.
• Maintains accurate market intelligence on the competition.
• Employs a dedicated strategic pricing role with executive management support.
• Uses pricing IT tools to enable data capture and analysis.
• Ensures that sales compensation reflects profit as well as revenue goals.
• Conducts market pricing experiments to measure elasticity and cannibalization.
• Requires customers to accept a lower level of value when offering pricing concessions (quid pro quo).

Advice on Moving to Value-Based Selling

Finally, we asked members what suggestions they would have for a peer starting a value-based pricing initiative. Several members noted that segmentation is critical. First, understand the value drivers of the market, micro-segments within the market, and the target accounts within the micro-segment. Then conduct a pricing study (with third-party help) to understand the data and pricing leaks. For high volume, low cost items, use market experimentation to confirm the value proposition. To build internal pricing competencies, institute value-pricing training and metrics, and hold regular reviews.^[3] Train sales personnel on the value-selling process, with a focus on selling around total cost of ownership rather than initial price. Have a group (such as channel marketing) police pricing initiatives to identify opportunities and problems. Collaborate account-by-account on strategies to avoid losing synergistic sales opportunities. Finally, retool sales compensation so that it is not focused purely on revenue or volume.

From the standpoint of customers, most importantly, you must know your business and where you fit in the value chain; if you are a commodity supplier, you likely cannot value price. Listen to and understand customer needs, and offer unique solutions (rather than individual components that can be price-shopped) to meet those needs. Understand customers’ value drivers (especially what makes them money), and then reach deep into customers’ organizations (users, influencers, etc.) to unlock additional areas of value and to create pull and loyalty. Finally, constantly recommunicate your value: What have you done for me lately? Customers will generally pay a premium for unique, differentiated products, but that value must be quantified for them on a regular basis.

Footnotes

^[1] Value-based pricing sets prices according to the value that the customer expects to receive from the product or service, rather than the actual product cost, historical prices, or competitors’ prices.
^[2] For a profile of a MAPI member that does this particularly well, see “Seeking Perfect Prices, CEO Tears Up the Rules,” The Wall Street Journal, March 27, 2007.
^[3] For more information on negotiating techniques to support value-based pricing, see “Rebuilding Profits in the Manufacturing Sector,” Monitor.com.

By:  Cam Mackay – VP of Sales & Marketing, MAPI

CLICK HERE to See Past Editions of MTI TV.

Canada’s Globe and Mail (10/1, Torobin) reported that “the latest gross domestic product numbers measured a month that preceded much of the policy paralysis in the United States and Europe, and the economic data and turmoil that have raised recession fears. The heightened fear and skepticism gripping investors is now eroding confidence among businesses and consumers, clouding the outlook for the world economy and for a small, exporting nation like Canada that is largely hostage to how events play out elsewhere.”
On its website, CBC News (9/30) reported, “Some economists are suggesting the current quarter could show growth of up to two per cent, meaning the country would avoid slipping into a second consecutive quarter of economic contraction.”

The Toronto Sun (9/30, Proussalidis) reported Philip Cross, Chief of Economic Analysis at Statistics Canada said, “(Manufacturing) was the No. 1 source of growth.” Cross said, “With more goods going around in the economy, it gave a large lift to the goods-handling services, namely wholesaling and transportation.” The Sun noted, “Over the summer, Canada’s auto sector rebounded from disruptions caused by the Japanese earthquake and tsunami in March.”

Economic update provided in partnership with the National Association of Manufacturers.

Every three months, the Manufacturers Alliance/ MAPI provides a detailed look at the health of the domestic manufacturing sector and reviews the performance of a selected group of its most important subsectors. This first report covers the actual data available through July 2011 and provides our forecasts, which were completed in mid-August 2011.  The 27 industry sectors analyzed are:

- Aerospace Products and Parts Production

- Alumina & Aluminum Production and Processing

- Basic Chemicals Production

- Communication Equipment Production

- Construction Machinery Production

- Electronic Computer Equipment Shipments

- Electrical Equipment Production

- Electric Lighting Equipment Production

- Engine, Turbine, and Power Transmission Equipment Production

- Fabricated Metal Products and Production

- Housing Starts

- Household Appliance Production

- Industrial Machinery Production

- Iron & Steel Products

- Material Handling Equipment New Orders

- Medical Equipment and Supplies Production

- Metalworking Machinery Production

- Mining and Oil and Gas Field Machinery Production

- Motor Vehicle and Parts Production

- Navigational, Measuring, Electromedical and Control Instruments Production

- Oil and Gas Well Drilling Production Activity

- Private Non-Residential Construction Put-in-Place

- Paper Production

- Pharmaceutical and Medicine Products

- Semiconductor and Other Electronic Component Shipments

- Ventilation, Heating, AC and Commercial Refrigeration Equipment Production

Manufacturing sector growth was exceptionally strong in the first quarter of 2011 and then stopped growing in the second quarter. Manufacturing industrial production, measured on a quarter-to-quarter basis, grew at a 7 percent annual rate in the first three months of 2011, and then was unchanged between the first and second quarter. High-tech industries (computers, communications equipment, and semiconductors) rebounded at a very rapid pace in early 2011. High-tech industrial production increased at an 18 percent annual rate in the first quarter of 2011, and only a 2 percent annual rate in the second quarter versus the first quarter. Non high-tech manufacturing production expanded at a 6.5 percent annual rate in the three months ending March 2011 versus the previous three-month period, and had no growth from the first to second quarter.

To see the full report with forecasts and graph trends, log into MyMTI and click on MAPI Industry Sector Report in Resources Box on right hand side of your profile.

Now is the time to push through and complete important projects, celebrate accomplishments large and small, identify mistakes made… and ensure they’re not repeated and a time to reflect and build a smart plan for the coming year, and beyond. What will be in your future begins in your mind. A thought. A belief. A plan. Then comes passionate execution of the plan with unyielding determination coupled with the support of the Metal Treating Institute behind you. There ARE people and businesses succeeding today. There ARE people making breakthroughs and growing and profiting. Granted, it’s not as easy as it was, but what are we going to do? Accept failure? Not as an MTI member.

MTI has dedicated itself to providing you access to a vast array of resources included in your dues that would cost members thousands of dollars individually to assimilate.  These key publications include:

- The Business Owner (bi-monthly)

- MAPI Manufacturing Industry Sector Report (Quarterly)

- DeWolf Associates Heat Treating Outlook (Quarterly)

- DeWolf Associates Economic Report (Monthly)

- MTI Insight (Monthly)

- Heat Treating Magazine (Quarterly inside Industrial Heating Magazine)

These publications are for business owners and key manager who want to take the guesswork out of budgeting and strategic planning.  Those who want to learn, improve, and build a business that has real value. We give it to you straight.  We simply give you the information you need to survive, and thrive because you aren’t just strong… You’re MTI STRONG!

If you have any questions on any MTI or MTI affiliated publication, don’t hesitate to contact our offices at info@heattreat.net or 904-249-0448.

Granted, meeting face to face is always the #1 way to build a network of people, but time and budget don’t allow for everyone to make it to a meeting.

MTI has the answer that can help you and your team build a powerful circle of industry peers and give you a competitive advantage to hiring in the manufacturing industry.

MyMTI, MTI’s online community launched in September 2009, has a feature called Member Matching that asks every person in the community to answer a few questions and within seconds be matched with individuals around the world that they can instantly connect with.  Questions members are matched by include:

- What is your job title?

– How many years have you been in the heat treating industry?

– What is your age demographic group?

– What level of responsibility do you have?

Once these questions are answered and you click submit, individuals from around the world who have at least one of those in common with you will pop up in a listing.  Even better than that, when you point your mouse over the person’s picture, the system tells you how which question you have in common.

This provides members who can’t afford to bring all of their key managers or line personnel to an MTI meeting the opportunity to connect with other creative minds in their job category all across the U.S., Canada and the world.

This online connection is the preferred option for the growing young generation of workers in manufacturing. MTI has provided you a powerful communication platform that you can get your younger workers involved with to connect them with others in their generation with the same number of years experience and job title.

Get your managers tuned into the people and the information that can help them maximize their potential for your company at MyMTI.

If you already have a profile with MyMTI, you simply log in and click on Member Matching on the left hand menu.  If you do have a profile, CLICK HERE and then click on “New Visitor Registration” and follow the directions.

If you or any of your staff have issues with logging in, please contact the MTI offices at info@heattreat.net or 904-249-0448.

The subsequent economic recovery has been slow and prolonged compared to other recessions, and the general economy has failed to achieve a full recovery as of the second quarter of 2011. GDP in the second quarter of 2011 was slightly less (0.5 percent) than the level of the previous cyclical peak in the fourth quarter of 2007. The economy will transition into the expansion phase of the cycle in the third quarter and set new production records by the fourth quarter of 2011.

Manufacturing, however, is still struggling in the mid-recovery phase of the cycle. The positive news is that manufacturing production increased 11 percent from the second quarter of 2009 to the second quarter of 2011. The downside is that manufacturing production is only about one-half recovered,^[2] and is still 11 percent below the output achieved in late 2007. MAPI does not expect a full manufacturing recovery until the second quarter of 2014.

CLICK HERE is you would like to see the full report from MAPI.

When reviewing the concerns and comments of members, it became apparent there were  areas the technical standards committee could immediately help inform members on.  The committee is in the process of putting together a response document outlining their thoughts and expertise on the various comments submitted by members.  Once the document is finalized, MTI will publish it in our newsletter as well as in our weekly enews.

After reviewing the comments, the Committee is going to seek to deal with major areas one at a time to try to have a more effective impact on each area.  The area most members seem to have comments on surround specs associated with Pyrometry making this the top issue for the Committee to address.

The Committee will look to host a meeting with Nadcap where they can have some open dialogue on the issues and see how best to resolve them.

If you have any questions, please don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

In early September, the NAM was the first to file suit against the National Labor Relations Board’s (NLRB) recent rule requiring that employers subject to the National Labor Relations Act (NLRA) post a notice about employees’ rights. These rights include organizing into unions, bargaining collectively, discussing wages, benefits and working conditions, jointly complaining, striking and picketing. The case will be heard by a federal judge in the District of Columbia.  The rule creates a new unfair labor practice—failing to post the required notice—and would allow the NLRB to assume that an employer has an anti-union motive by failing to post the notices, which in turn could result in more complaints being issued against employers and a broader range of penalties under other NLRB requirements. It also allows the Board to waive the statute of limitations for bringing all other unfair labor practice charges if an employer does not post the notices. The rule also requires foreign language posting if 20 percent of the workforce speaks another language. Posting would be mandatory for almost all private employers by November 14, 2011. The NAM contends that the posting requirement is beyond the NLRB’s authority under the NLRA and is asking the court prohibit the Board from implementing, enforcing and applying the rule.

MTI is working with NAM on what action steps MTI members should take regarding the new posting, given NAM’s lawsuit.  MTI will update members immediately on any action they must take.

Update provided in partnership with the National Association of Manufacturers.

The team of 7 heat treaters brainstormed everything from video development, interactive website, direct mail and electronic mail marketing and the purchasing of advertising on key industry association websites.

One thing the committee is committed to is taking MTI’s message of outsourcing to the next level toward manufacturers.  The focus is to further educate manufacturers on how much human expertise, technology investment and tight quality controls the MTI member has in their operation to satisfy their heat treating needs.

Currently, MTI is sending a 4-page direct mail piece monthly to over 700 major manufacturers to build the brand awareness to captives on the following key elements for commercial heat treaters:

- MTI is the Largest Network of Commercial Heat Treaters in the World
- They have very tight quality controls
- Major investment into latest technology and equipment
- Offer cost controls for captives
- Employ the same systems as captives
- People expertise & certifications

In a recent report on MTI’s online quoting system, HeatTreatQuoteMaster.com, 62% of all projects submitted online for members to quote on were new projects or in-house projects being considered for outsourcing.  MTI’s outsourcing campaign is seeking to grow that number which will hopefully lead to new business.

If you have any questions on the promo campaign, feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

The workplace must be evaluated to determine if PPE-germane hazards are present, or are likely to be present. If these hazards are identified, the employer is required to select the proper types of PPE (affording the types and levels of protection indicated by the assessment), assure that the PPE fits each affected employee, and  assure that it is worn. The selection decisions must be communicated to each affected employee.

The written certification must include the name of the certifying individual and the date(s) of the hazard assessment. The document must be identified as being a certification of assessment. As a rough sample (that must be personalized/customized), I offer the following guideline for the required document (note bracketed sections are for fill-ins; also, the company may utilize different individuals to assess different areas, jobs, tasks and/or the need for particular types of ppe “across” areas, jobs, tasks):

CERTIFICATION OF HAZARD ASSESSMENT (PERSONAL PROTECTIVE EQUIPMENT)

[Employer] has assessed its [facility] regarding the need for personal protective equipment (PPE). From [d/m/y] through  [d/m/y], [person], [title of person], evaluated the hazards present or likely to be present, which necessitate the use of personal protective equipment. [He/she] recently surveyed [areas, jobs, tasks, etc.] and, at other times, surveyed each of the [areas, jobs, tasks, etc.]. Where we believe PPE is necessary, we have selected the relevant product(s) to afford the proper level and type of protection, and we require the use of those product(s).

We have communicated, verbally and in writing, the selection decisions to each affected employee. We will assure (with sufficient feedback from employees) the proper fit, use, maintenance, storage and cleanliness of each item of PPE. This assurance will be reached by training, instruction, monitoring and enforcement. PPE alone is not used to control hazards‑‑ our “first line of defense” consists of guards, engineering controls, and sound work practices. We will continually reassess hazards (and the need for PPE), by identifying and evaluating new equipment and processes, reviewing accident records, and reevaluating the suitability of previously selected PPE.

The above wording is for the certification document itself. The  detailed assessment should be in writing and comprised of significant detail in a column, block, or other easy-to-read format. You may well have numerous, distinct assessment charts. Appendix B (following 1910.139 and Appendix A) presents non-mandatory (but very helpful) compliance guidelines for hazard assessment and personal protective equipment selection. I do not know of many employers who have read this excellent time-saving, stress-saving foundation for a meaningful assessment.

There are OSHA pamphlets and fact sheets on several personal protective equipment topics. Subjects include hearing conservation, respiratory protection, bloodborne pathogens, eye protection, and PPE in general. However, the OSHA source document that is dedicated to our subject is “Assessing the Need for Personal Protective Equipment: A Guide for Small Business Employers” (the publication reference is “OSHA 3151”). It has great value for all size businesses. There is some redundancy with Appendix B, but this is a stand-alone document, with user-friendly layout. Rather than quote extensively from this lengthy, “full-sized” booklet, I simply urge you to obtain a copy. It contains a wealth of important questions for helping you develop your assessment strategy and for conducting the survey. It provides many examples of typical operations of concern, and has separate practical sections explaining the particulars for ppe for different parts of the body.

The process is not an exact science, but it can be an exacting one. You can arrive at sensible decisions by studying hazards that can reasonably be anticipated in areas of the facility, position descriptions, or particular jobs. In other words, you can attempt to acknowledge (or reasonably predict) risks in certain rooms or broad operations, or in the gross assignments given to persons of the same title, or in the step-by-step procedures of clearly defined, one-at-a-time duties. In the last case, job hazard analyses (JHA) can go along way to isolate the need for PPE, by breaking down the duty to sequentially-ordered, finite tasks (or even sub-tasks). Another reasonable tactic is to look for the hazards horizontally (in effect). In that plan, you select a part of the body for which PPE may reasonably provide protection, and then search for needs throughout the facility. Where in this plant are there hazards to the eyes? Where are there hazards to the hands? Where are there hazards to the respiratory system? This is an alternative to (for example) observing each of Roy’s tasks and posing all of those queries, then watching Lenore and asking the same, then watching…

To frame a series of more direct, pragmatic questions, the categories must be split. Whether for Roy (in general), department 17, or a limited series of things that Roy does to attain one focused goal, consider the various injuries that could affect (for instance) the eyes. Are we concerned about impact or penetration, chemical splash, welding type flash burn? Although there may be multiple hazards to the eyes, the idea is that there are different ways (and types of PPE) used to protect against these individual dangers. So, “eye protection” is not a complete answer. ANSI-approved safety glasses (for impact) with side shields are not sufficient to protect against a very high or very low pH substance. Shading is required for suitable optical radiation protection.

If you determine that respirators are needed, against what hazard must they protect? In turn, what kind of respirator and (where pertinent) cartridges/filters are needed? I offer two more illustrations. For hand protection, are you trying to protect against immersion in a strong solvent, handling sharp-edged metal, intense heat, electrical current, or contact with bodily fluids? On a special note, there are times that no glove should be allowed (unless, perhaps, state-of-the-art, skin-tight); off-hand grinders, drill presses and lathes fit into this scenario. For foot protection, is the concern dense, heavy objects dropping or rolling onto toes (also, is there a need metatarsal guards), molten metal spills, where nails may penetrate the sole?

Regardless of what personal protective equipment OSHA would require your employees to wear, and regardless of what PPE they actually wear (as a company requirement, or as employee choice where not a company requirement), the assessment is obligated. You can choose to insist on the wearing of PPE, despite the fact that it was not determined (in your assessment) to be absolutely necessary. This means that you may well decide to have a rule that everyone in a certain room must wear safety glasses (ANSI-approved for impact, etc.), although exposure appears to only be relevant when quite close to certain machinery in that room. With such rules, the program can be much easier to administer.

Written by Rick Kaletsky, MTI’s Official Safety/OSHA Consultant.  You may contact Rick Kaletsky at 800-451-6172 or rkaletsky@gmail.com.

International Energy Outlook 2011 (IEO201) provides updated projections for world energy markets from 2008 through 2035 timeframe using a “reference case” model. It does not take into account future legislation or policies that might affect energy markets.

Acting EIA Administrator Howard Gruenspecht said that “China alone, which only recently became the world’s top energy consumer, is projected to use 68 percent more energy than the United States by 2035.”

Other key findings include:

- The economies of China and India were among those least affected by the worldwide recession, and they continue to lead world economic growth and energy demand growth.

- In 2008, China and India combined accounted for 21 percent of total world energy consumption. With strong economic growth in both countries over the projection period, their combined energy use more than doubles by 2035, when they account for 31 percent of world energy use in the report’s projections.

- Renewable energy is projected to be the fastest growing source of primary energy over the next 25 years, but fossil fuels remain the dominant source of energy. Fossil fuels continue to supply much of the energy used worldwide throughout the projection, and still account for 78 percent of world energy use in 2035.

- Natural gas has the fastest growth rate among the fossil fuels over the 2008 to 2035 projection period. World natural gas consumption increases 1.6 percent per year, from 111 trillion cubic feet in 2008 to 169 trillion cubic feet in 2035. Unconventional natural gas (tight gas, shale gas, and coalbed methane) supplies increase substantially in the projection, most notably from the U.S. as well as from Canada and China.

- World oil prices remain high, but oil consumption continues to grow; both conventional and unconventional liquid supplies are used to meet rising demand. In the report’s reference case, the price of light sweet crude oil (in real 2009 dollars) remains high, reaching $125 per barrel in 2035.

- Total world petroleum and other liquids fuel use increases by 26.9 million barrels per day between 2008 and 2035, but the growth in conventional crude oil production is less than half this amount at 11.5 million barrels per day. Production of natural gas plant liquids increases by 5.1 million barrels per day,

- World production of unconventional resources (including biofuels, oil sands, extra-heavy oil, coal-to-liquids and gas-to-liquids), which totaled 3.9 million barrels per day in 2008, increases to 13.1 million barrels per day in 2035.

Reported by Area Development, a bi-monthly publication that has more than 45,000 executive subscribers.

You must be present to win!!!!

The winner will walk away with either $100, $250 or $50,000.  So the deal is, VISIT MTI MEMBER SUPPLIERS and get in the game!

If you would like further details, don’t hesitate to contact the MTI Offices at 904-249-0448.

The Tennessean (9/12) “In Session” blog reported, “US Rep. Scott DesJarlais sends word today that he has filed a bill to repeal a pending rule that would require employers to post a notice informing workers of their right to unionize and explain how they can file a complaint if they suspect a violation of national labor law. DesJarlais says his proposed Employer Free Choice Act (H.R.2854) would block the National Labor Relations Board from adding a notice about the National Labor Relations Act to workplace bulletin boards in mid-November.” The blog noted that “the National Association of Manufacturers sued the NLRB last week, saying the agency does not have Congress’s permission to require the notices.” National Association Of Manufacturers, NFIB Launch Online Campaign Calling On Congress To Pass The Protecting Jobs From Government Interference Act. In a press release, the National Association Of Manufacturers said, “In a continued effort to rein in the aggressive overreach of the National Labor Relations Board (NLRB), the National Association of Manufacturers (NAM) and the National Federation of Independent Business (NFIB) launched an online campaign today in conjunction with a multi-state radio ad campaign calling on Congress to pass the Protecting Jobs from Government Interference Act. The online campaign, bolstered by radio ads and a major grassroots effort, highlights the latest in a series of NLRB actions that are causing unnecessary uncertainty among employers while unemployment remains above 9 percent and the US economy is struggling to recover.” The online “ads seek to call national attention to the NLRB’s actions against the Boeing Company, which could force the closure of a major manufacturing facility at a time when a major American employer is looking to expand operations and create thousands of new jobs.” NAM President and CEO Jay Timmons said, “I’ve heard from manufacturers all over the country about how the actions of a handful of appointees overwhelmingly will hurt their ability to create jobs and will create uncertainty when it comes to deciding where to expand. We are taking important steps to rein in the NLRB, and we ask Congress to take action.” The Hill (9/12, Bogardus) “Transportation” blog reported also noted that “the National Association of Manufacturers and the National Federation of Independent Business, launched a radio ad campaign” against the NLRB. Romney Says Labor Relations Board Should Drop Boeing Complaint.

The Washington Post (9/13, Gardner) reports that on Monday Mitt Romney spoke in North Charleston, South Carolina, at Boeing’s new plant, criticizing the National Labor Relations Board’s suit of Boeing, who moved “thousands of jobs from unionized facilities in Washington state to a new $1 billion facility in South Carolina, a right-to-work state.”

The AP (9/13, Smith) adds that during his speech at the plant, Romney “suggested that any stimulus package to boost the economy should include legislation telling the NLRB to drop its Boeing complaint.” However, Donna Dewitt, South Carolina’s AFL-CIO President “said that Romney seems more interested in making political points and supporting Boeing, the company he has reported having investments in.” Politico (9/13, Post, Courier) reports, “Former Massachusetts Gov. Mitt Romney appeared in North Charleston today with his former rival and newest supporter, former Minnesota Gov. Tim Pawlenty.” Surrounded “by screens showing the outline of a jetliner, Romney flew into the Lowcountry today to launch his campaign here by talking labor policy and taking aim at the National Labor Relations Board and its lawsuit against Boeing. Both Romney and Pawlenty toured Boeing’s new manufacturing plant here, the plant that triggered the board’s action.” Romney accused President “Obama of putting ‘labor stooges on the NLRB to pursue a political payback strategy,’ a claim that drew his first applause from the audience.”

Update provided in partnership with the National Association of Manufacturers.

The students took part in two plant tours of Super Systems, Inc. and Queen City Steel Treating as well as engaged in a full day of training on leadership, communication and conflict resolution skills and the lean manufacturing operations model.

The YES class completes its fourth and final session at the MTI Fall Meeting in Williamsburg, VA and will graduate at the final night Awards Dinner. The plans for the 2012 class are already being put together. Details will be released in October.

Click Below to See Picture Highlights of the YES III Session.

Companies with students in the 2011 YES program include:

Applied Thermal Technologies

Byington Steel Treating

California Brazing

Century Sun Metal Treating

Cornerstone Systems

FPM Heat Treating

Hudapack Metal Treating

Industrial Steel Treating Co.

INEX

Pacific Metallurgical

Penna Flame Industries

Pinson Valley Heat Treating

Seco Warwick Corporation

Solar Atmospheres

Super Systems

Surface Combustion

Tenaxol Technologies

Texas Heat Treating

Thermex Metal Treating

Thermo-Fusion

Vac-Aero International

Wisconsin Steel Treating

If you would like more information on the 2012 YES Class, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

CLICK HERE to See Past Editions of MTI TV.

MTI hosted two receptions a couple of years ago during Nadcap meetings and the quality managers in attendance found it very beneficial to be able to network with other MTI member quality managers who were in attendance at the meeting.

It’s very important for members to be able to discuss and provide feedback to MTI’s New Technical Standards Committee so they can have an opportunity to weigh in and offer input to Nadcap on important decisions and industry specification discussions.

Details for the meeting are as follows:
When: October 17

Time: 6:00 to 8:00

Where: Sheraton Station Square (300 W Station Square Dr.)
RSVP: CLICK HERE

Questions: 904-249-0448 or info@heattreat.net

When a company embarks on a venture that’s high risk, it may make sense to protect the established company from liabilities that will or could arise in the new venture. A commonly used and quite effective (and relatively inexpensive) means is to set up a subsidiary corporation and operate the new venture within it.

A subsidiary corporation is one in which another corporation, the parent corporation, owns at least a majority of the subsidiary’s stock and therefore has control over it. Such a structure can be effective at protecting the parent company from liabilities that arise in or as a result of the activities of the subsidiary, but only if the subsidiary is managed in a certain manner:

- Both corporations are adequately capitalized.

- Corporate formalities (e.g., election of officers, annual board meetings, filing of separate tax returns, etc.) are observed for each entity.

- Both corporations are held out to the public as separate enterprises.

- The two corporations keep separate financial records and do not commingle funds.

- The parent corporation does not completely dominate operations of the subsidiary to advance only the parent’s interests.

- The parent corporation avoids contractually guaranteeing debt of the subsidiary.

Failure to adhere to these could result in creditors being able to “pierce the corporate shield” and hold the parent corporation accountable for the debts of the subsidiary.

Sentry delivers protection to market affiliates through:

- Knowledge of their industry
- Coverages suited to their specialized exposures
- Safety services designed to address their unique risks
- Trained Sales and service professionals with experience and knowledge in the needs of their industry

Sentry Insurance is one of the nation’s leading insurers of metalworking facilities

Sentry knows the metalworking industry and can insure your business from the ground up. And, when claims happen, they will be there to help.

Whether your exposures apply to property, general liability, auto, workers’ compensation or other essential coverages, Sentry has the expertise to help you develop an insurance program designed to fit your business’s needs.

Their products provide innovative solutions:

- Automatic coverage for failure of production, electrical or air conditioning equipment

- Coverage if a customer brings suit against you for a defective product you’ve made while following their written specifications

- When a component part needed to complete a final product is damaged, coverage for the loss in value of the complete product, rather than just the damaged part, is provided

- Coverage for expenses arising out of discrimination, wrongful termination and other employment-related matters

Sentry is endorsed by numerous manufacturing associations, including MTI, because of their strength, customer service and focus on delivering quality safety training to help minimize liability and risk exposure to your business profits.

Take advantage of this incredible benefit through MTI.  If you would like a free analysis and quote on your business insurance and workers compensation, contact MTI’s Sentry representative Eric Stiles at 715-346-7096 begin_of_the_skype_highlighting            715-346-7096      end_of_the_skype_highlighting or eric.stiles@sentry.com.

Bloomberg News (9/2, Drajem) reported the President “said he is seeking to reduce regulatory burdens as the economy recovers, and said the EPA would weigh tighter standards on ozone, which causes smog, in two years.”

On its front page, the New York Times (9/2, A1, Broder, Subscription Publication) reported the Administration “is abandoning its plan to immediately tighten air-quality rules nationwide to reduce emissions of smog-causing chemicals after an intense lobbying campaign by industry, which said the new rule would cost billions of dollars and hundreds of thousands of jobs.” The EPA, “following the recommendation of its scientific advisers, had proposed lowering the so-called ozone standard from that set by the Bush administration.” Leaders of business groups – including “the National Association of Manufacturers, the American

Petroleum Institute and the Business Roundtable – met with” EPA administrator Lisa Jackson “and with top White House officials this summer seeking to moderate, delay or kill the rule. They told William M. Daley, the White House chief of staff, that the rule would be very costly to industry and would hurt Mr. Obama’s chances for a second term.”

The Christian Science Monitor (9/2, Clayton) reported, “Industry groups were heartened by the move. The National Association of Manufacturers” and the National Petrochemical & Refiners Association “applauded the president’s decision and called for elimination of more pollution regulations now in the pipeline.”
The Daily Caller (9/3, Boyle) noted, “A Manufacturers Alliance study estimated that the EPA ozone regulations would eliminate 7.3 million jobs by 2020, something a coalition between the National Association of Manufacturers and 35 state-level manufacturing associations cites in a letter to Obama urging him to stop these regulations.”

The Hill (9/4, Geman) “E2 Wire” blog reported, “The National Association of Manufacturers CEO Jay Timmons praised the ozone retreat as ‘the right move to protect jobs.’” But Timmons’ “statement Friday also previewed continued industry attacks on other EPA policies, including upcoming rules setting maximum achievable control technology (MACT) standards for air toxics from industrial boilers and power plants. ‘Manufacturers still face a great deal of uncertainty from regulations looming on the horizon, including the Boiler MACT rule, the Utility MACT rule, the National Labor Relations Board’s ‘ambush elections’ rule and a slew of others that will hamper our ability to grow and compete,’” he said. “We urge the Administration to apply the same approach to these other burdensome regulations that it did when deciding to forgo the discretionary ozone standard.”

The Washington Post (9/2, Eilperin) reported the government “normally reviews the standards for ground-level ozone–which includes a ‘primary’ one for public health and a ‘secondary’ one aimed at the environment– every five years.” But Jackson “chose to revisit the standard, which was set under the Bush administration at 75 parts per billion in March 2008, because that level was significantly higher than the 60 to 70 ppb recommended by the EPA’s scientific advisory committee at the time.”

Bloomberg News (9/3, Drajem) noted, “The proposed standards would apply to states and localities, which will have to take steps to reduce pollutants if the tighter restrictions make them fall out of compliance with the federal ozone rules. There are 242 counties now out of compliance with the ozone standard set in 1997, mostly in the Northeast from Washington to New York and in Southern California, the EPA said. The lowest standard proposed by the EPA would have more than tripled that total, according to the National Association of Manufacturers.

Reported by National Association of Manufacturers – 09/06/11

MTI is also excited to partner once again with Industrial Heating Magazine to produce this worldwide event bringing attendees from over 30 countries and 40 states.

The heat treating market is moving fast and technology developments are taking place faster than ever before.  FNA 2012 will be the place in 2012 you can learn about the latest business trends and technology developments to help your business grow into the future.

The show is currently filling up its booth space with another sellout expected.  Registration will open in April 2012.

CLICK HERE to visit FNA 2012 Online.

If you have any questions on FNA 2012, please don’t hesitate to contact the MTI Offices at 904-249-0448.

Today, the National Labor Relations Board issued several decisions that will have far-reaching effects on employees, employers and job creators.  View this short video to see the highly negative impact the NLRB decisions are going to have on business:

Lamons Gasket Co. Decision

First, the National Labors Relations Board issued an ideological 3-to-1 decision in Lamons Gasket Co., case overruling the 2007 Dana Corp decision.  The Dana Corp decision permitted employees or rival unions to challenge the employer recognition of a union based on card check if supported by 30 percent of the employees in the bargaining unit and the challenge was filed within 45 days of the employees being officially notified of the employer’s voluntary recognition of a union.

Today’s ruling, however, takes federal law back to once again, barring an election petition for a “reasonable period” of time after an employer’s voluntary recognition of a union based on a showing of a majority of employees.  The Board defines this “reasonable period of time” as a range from “six months to one year, depending on the circumstances.”

Specialty Healthcare and Rehabilitation Center of Mobile Decision

In another, 3-to-1 decision issued by the NLRB today, the Board in Specialty Healthcare and Rehabilitation Center of Mobile found that Certified Nursing Assistants at a nursing home “may comprise an appropriate unit without including all other nonprofessional employees.”   The Board states that “where an employer argues that a proposed unit inappropriately excludes certain employees, the employer will be required to prove that the excluded employees share ‘an overwhelming community of interest’ with employees in the proposed unit.”

Again, in this decision, the Board overturned a previous law established in the 1991 Board decision, Park Manor.   The Park Manor case adopted a special test for bargaining unit determinations in nursing homes, rehabilitation centers, and other non-acute health care facilities.   Today, however, employees at such facilities will now be subject to the same “community-of-interest” standard that the Board has traditionally applied at other workplaces.

As I said in my blog post yesterday, having a multitude of unions in one workplace is not a very efficient model, but it is now a reality that has been foisted upon employers by an un-elected board.  Further, by effectively changing policy on what constitutes an appropriate bargaining unit, the Board may have violated procedural rules and overstepped their authority again….see NLRB posting requirement, which requires private-sector employers whose workplaces fall under the National Labor Relations Act to post the employee rights notice where other workplace notices are typically posted.

CLICK HERE to visit MTI’s Government Affairs page and send a personal note to your Congressperson.  In just a few clicks, you can send a personalized note electronically or print it on your letterhead to send via mail.

Feel free to contact the MTI Offices if you need any assistance in sending your letter to congress.

The big challenge for the recovery remains housing. There still is a large backlog of houses both on the market and waiting on the sidelines to be sold. This has many consequences: low housing prices, lower personal wealth, less mobility, few new housing starts, and a slowing in demand for all things connected with the housing market, from sheet rock to toilets – and of course fewer jobs.

Unfortunately the only solution for the housing market is time, probably two to three years, coupled with low-interest rates. The housing stimulus package did appear to help slightly in 2009.

To view the entire report with trend graphs, log into MyMTI and click on August Economic News in the Resources Box.

CLICK HERE to See Past Editions of MTI TV.

July 2011 sales for the Metal Treating Industry reached $75.4 million, an increase of 12.9% over July 2010 sales which totaled $66.8 million.

All nine MTI districts reported higher sales in July compared to the previous year.

To see a full report including a breakdown by district and graphical trends, log into MyMTI and click on July Sales Report in the Resources Box on the right hand side of page.

Since its inception in January 2006, MTI’s online academy has had over 17,700 courses taken by MTI members making it the leading online technical training system in the industry.

In these four modules, heat treaters will learn:

Session 1

- The principles of vacuum brazing.
- Key aspects of vacuum technology
- The reasons for the use of vacuum technology in relation to both the brazing of aluminum and the general aspects of vacuum in the brazing of other metals
- The reasons and the use of aluminum alloy filler metals
- Where to get detailed information on the mechanical strengths of the aluminum filler metals

Session 2

- The aluminum alloying elements and their effects on the aluminum
- The reasons for low pressure (vacuum) brazing techniques
- The effects of oxygen and its reactions to exposure to oxygen

Session 3

- The vacuum numeration system
- You learn of the nature of vacuum (low pressure)
- Some of the common vacuum pumping systems
- Heat up methods to braze temperature

Session 4

- The heat treatment of aluminum in both atmosphere and under low pressure conditions (vacuum)
- The brazing of aluminum under low pressure conditions
- The techniques of low pressure brazing
- The events that can occur with aluminum being processed under low pressure conditions
- Trouble shooting of the low pressure brazing process

These courses are available at “no additional charge” to all MTI members who are annual subscribers to the MTI Online Academy.  If you would like more information on the annual subscription that provides unlimited use of all MTI online courses for a set monthly fee, visit www.mtiacademy.com or contact the MTI Offices at 904-249-0448 or info@heattreat.net.

The Los Angeles Times (8/24, Parsons) reports, “The plan includes about 500 changes aimed at saving businesses money in a variety of ways, such as consolidating their IRS paperwork, simplifying hazard warnings they must post for workers, and expediting payment to government contractors. The changes represent Obama’s answer to what has been a source of rising criticism of his term: that his regulatory reforms are more costly.”

USA Today (8/24, Wolf) reports Congressional Republicans and business groups “have led the criticism of the Obama administration for piling on regulations they say will cost businesses billions of dollars. Tops on their list: the health care and financial overhauls of 2010 and a pending change in ozone standards sought by the Environmental Protection Agency.”

Bloomberg News (8/24, Goldman, Nichols) reports, “Rosario Palmieri, vice president of regulatory policy at the National Association of Manufacturers in Washington, said the administration continues to add costly rules for businesses even as it modifies existing regulations.” He said, “While removing some modest burdens with this hand, with the other hand the administration is proposing new costly and unnecessarily burdensome rules that will wipe away all the savings that have been proposed today.” Palmieri “cited the Environmental Protection Agency’s proposal to tighten ozone standards, saying it may cost the economy an additional $1 trillion annually between 2020 and 2030 and jeopardize 7.3 million jobs. He called it ‘the most costly rule that this administration has proposed.’”

NPR ‘s (8/23, Shapiro) All Things Considered reported that “the business community calls this a good step, but they say the administration is creating new regulations that dwarf these rollbacks, such as the Wall Street reform and health care laws.” Palmieri said, “We are constantly faced with new additional, we believe, unnecessary burdens that we’re attempting to deal with and convince this administration to go forward in the least burdensome way or to not go forward at all when they have that discretion.” For example, Palmieri “points to a rule regulating ozone emissions. President Obama may tighten the standard from the Bush years, even though the rule is not officially up for review until 2013.”
PRI’s Marketplace Public Radio (8/23, Genzer) Marketplace Morning Report added that “some business groups say they’re more concerned about new regulations from the health care and financial reform laws. The National Association of Manufacturers says regulations from those new laws are actually more of a threat to job creation and competitiveness.” Reuters (8/24, MacInnis) also published quotes from Palmieri.

The AP (8/24, Pace) reports, “Cass Sunstein, head of the White House Office of Information and Regulatory Affairs, said the savings for businesses will give the private sector an opportunity to create new jobs. But Sunstein said he had no estimates on how much help the regulatory reforms would provide.”

The Hill (8/23, Wasson) “On The Money” blog reported House Majority Leader Eric Cantor (R-VA) “downplayed the announcement. ‘Every day, business people and job creators cope with burdensome regulations that have a negative impact on both jobs and our economy, and again the President seems reluctant to do everything in his power to help them,’ he said in a statement. Cantor said the House will proceed in September to end major regulations and that doing so will have a greater impact in helping businesses create jobs.”

MTI works in partnership with over 250 leading manufacturing associations with NAM to keep you up to date on the latest legislative and regulatory actions that could impact your company.

If you have any questions, feel free to contact MTI CEO Tom Morrison at 904-249-0448 or tom@heattreat.net.

CLICK HERE to See Past Editions of MTI TV.

Bloomberg News (8/17, Berman, Chandra) reports, “The 0.9 percent increase in production at factories, mines and utilities was almost twice the median forecast of economists surveyed by Bloomberg News and the biggest gain of the year, according to data” from the Federal Reserve. “Output at factories, which account for about 75 percent of industrial production, increased 0.6 percent last month, led by gains at the nation’s automakers, the Fed’s report showed. Production of automobiles and parts climbed 5.2 percent last month, the first gain in four months and the biggest in a year, as the industry rebounded from the supply chain disruptions caused by the March earthquake in Japan, the” report showed.

“Manufacturing excluding motor vehicles climbed 0.3 percent after a 0.2 percent gain in the prior month.”

MarketWatch (8/16, Nutting) reports, “The news isn’t totally positive, however. The increased output over the past year has reduced the number of factories and machines that are siting idle, which is potentially bad news for the inflation outlook. The capacity utilization rate jumped to 77.5%, the highest level in nearly three years.”

The Hill (8/16, Needham) “On The Money” blog noted, “The last time capacity utilization hit 80 was in April 2008.”
Canada’s The Globe And Mail (8/16, Carmichael) “Economy Lab” blog notes, “The normalization of global trade links will make the climb back easier, but the US economy still is facing significant headwinds. The better-than-expected industrial data did little to buoy markets, which were lower Tuesday on data that showed the euro zone’s gross domestic product barely grew in the second quarter.”

Also covering the story are the Wall Street Journal (8/17, Reddy, Subscription Publication), Reuters (8/17, Mutikani), the Wall Street Journal (8/16) “Real Time Economics” blog and IndustryWeek (8/17, Selko).

Update provided in partnership with the National Association of Manufacturers.

Workplace safety plays such a key role in a heat treating business given accidents play a key role in workers compensation premiums, lost productivity and effective use of human capital.

To see the full results of the survey, log into MyMTI and click on the Workplace Safety Survey under the Resources Box on the right hand side of the page.  Compare your company vs the industry.

In September and October, MTI will host the last two major events of 2011:

- Midwest Chapter Golf Tournament and Dinner

- Fall General Meeting in Williamsburg, VA

The Midwest Chapter Meeting will feature a golf tournament, dinner and MTI President, Judy Rudy from Queen City Steel Treating, leading the members through a series of roundtable discussions on everything from contract review, energy strategies, motivating employees and technical standards.

The Fall Meeting hits at the heart of how to grow your company as the economy slowly begins to build steam.   It will feature a series of experts and roundtable discussions where you will learn:

- Why manufacturing is returning to North America with a vengeance
- What will drive the resurgence of manufacturing in North America
- What industries are going to see expansion in the next 10 years
- Why China and other third world countries are nearing serious problems
- What it will take to market your company in this fast paced economy
- Understand what guerrilla marketing really is and why it’s effective
- The difference between guerrilla marketing and traditional marketing
- Hear the secrets to guerrilla marketing and understand the truth behind online marketing
- Learn the 100 weapons of guerrilla marketing
- The key steps to take to earn profits from guerrilla marketing
- What is an effective and adequate contract review process
- How to motivate and retain your employees
- What types of grants/rebates are available for installing new energy efficient equipment

Don’t miss the opportunity to network and learn from the best in the industry.  It only happens at an MTI Meeting.  Click on the meeting below for full details and registration information.

- Midwest Chapter Golf Tournament and Dinner

- Fall General Meeting in Williamsburg, VA

If you have any questions, feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

This survey compares you to your competition nationally and locally in the areas of hourly wage, salaried management and executives and your benefit structure.

To those of you who have not participated previously, here are a few key points:

1) MTI can assure you that participation is entirely voluntary.  Your information is kept in strict confidence with our research firm Averett Warmus Durkee Osburn Henning, CPA’s.  No MTI member, nor individual in the MTI office, will ever see any individual reporting forms … only the national composite. Your company’s figures will be generated for your eyes only.

2) As with all surveys, the more who participate, the more reliable and valid our data is.  Do your best to participate.  The information you receive will be invaluable.

3) Only participants will receive survey results, the cost for non participants is $200.00.

4) All participants will receive an individual report from the third party research firm noted above.

Please use the wage and benefit job descriptions below so reporting will be as equal as possible.

___________________________________________

To participate, click the links below.

CLICK HERE to Download Survey

CLICK HERE to Download Job Descriptions

If you have any questions, feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

This past week, over 50 CEO’s, including MTI, met for two days to hear government policy experts provide updates on the debt limit, National Labor Review Board developments, taxation, energy policy and trade.  Experts also presented informative sessions on the latest McGladrey & Pullen Spring, “How Manufacturers are Thriving Report” as well as “Do You Have a Written Crisis Communications Management Plan?”.

CLICK ON VIDEO to hear the latest in manufacturing from CMA President, Bob Weidner, Manufacturing Alliance President, Stephen Gold and NAM President & CEO, Jay Timmons.

Both the report from McGladrey & Pullen and Crisis Management presentation have been uploaded to the MyMTI Resource Library.  Once logged in, the reports will be in the Featured Resources box on right hand side of page.

If you have any questions about the meeting, please contact MTI CEO, Tom Morrison at 904-249-0448 or tom@heattreat.net.

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If you would like to view the full report, log into MyMTI and click on July Economic Report.

Bloomberg News (8/2, Rowley, Dodge) notes that the House legislation “raise[s] the US debt limit by at least $2.1 trillion and cut federal spending by $2.4 trillion or more, one day before a threatened default. … Ninety-five Democrats voted in favor and 66 Republicans in opposition.” Bloomberg says Democrats and Republicans “praised the agreement for averting an economic crisis, even as both sides said the compromise fell short of their goals.”

The Washington Post (8/2, Montgomery, Kane, Branigin) reported that the CBO “confirmed Monday that the debt-reduction deal would cut deficits by at least $2.1 trillion over the next 10 years,” and “affirmed that the package contains up-front savings of $917 billion, the same level as initially proposed in legislation offered by” Speaker John A. Boehner. The CBO also “credited Obama and the congressional leaders with at least $1.2 trillion in savings for the follow-on work to be done by a special committee.”

According to the CBS Evening News (8/1, lead story, 3:00, Cordes, 6.1M), “Liberals are angry that the deal worked out by Republicans and the White House cuts the deficit by about $2.3 trillion with no guarantee that any of it will come from new tax revenue.” Rep. Pete DeFazio was shown saying, “It’s all about cutting, cutting, cutting. Tax cuts and reductions in spending are not going create jobs it in this country. We need some investment.”

The Washington Post (8/2, MacGillis) describes liberals as “dispirited” over a deal that “includes no new tax revenue from wealthy Americans and fails to provide any additional stimulus for a lagging economy. Most of all, they lamented…Obama’s failure to anticipate and overcome the leverage exerted by House Republicans who threatened to force a national default.” According to the Post, “The support for Democrats’ negotiating position in most polls only made more maddening the party’s latest concessions.”

Roll Call (8/2, Stanton, Subscription Publication) reports, “In the end, it seems the only people in Washington being forced to eat their debt limit peas will be Democrats, who found themselves swallowing a bitter political deal forced on them by” the President and Boehner.

Appearing on ABC World News (8/1, story 2, 1:30, Sawyer, 8.2M), House minority leader Nancy Pelosi said, “We have to get this over with. We have to get to work putting people back to work and everyday that we were stuck in this negotiation was a day that we weren’t doing everything in our power to create jobs. … At the end of the day, we’re voting for a bill that has severe cuts in our domestic agenda, that impedes our economic growth.”

The Washington Post (8/2, Helderman, Fahrenthold, 572K), meanwhile, says, “For weeks, the debt-ceiling debate has been defined by a clash of the extremes. … But, in the end, it was largely a coalition of lawmakers in the middle…who pushed through a deal.”

USA Today (8/2, Wolf, Kucinich, 1.83M) reports, “The deal achieves two major goals sought by Obama and congressional leaders: staged increases in the debt ceiling that will extend past the 2012 elections and a first step toward cutting annual deficits that have topped $1 trillion three years in a row. It also leaves out what each political party most wanted to avoid: tax hikes sought by Obama but opposed by Republicans, and major cuts in entitlement programs such as Medicare and Social Security that were opposed by Democrats.”

The Hill (8/2, Berman) also says “the dramatic appearance of Giffords overwhelmed the House chamber, momentarily reducing the result of the crucial vote to an afterthought.”

Manufacturing Groups Urge Congress To Take Swift Action On Debt Legislation. IndustryWeek (8/2, Cable) reports, “As the clock ticked toward Tuesday’s deadline to raise the debt ceiling, manufacturing groups on Monday urged Congress to take swift action to avert the first default in the nation’s history.”

In a press release, the National Association of Manufacturers offered a statement from Senior Vice President for Policy and Government Relations Aric Newhouse on the Budget Control Act of 2011, which would raise the debt ceiling one day before the deadline. “Today’s Institute for Supply Management July PMI report is alarming as it shows manufacturing — one of the bright spots to this economic recovery — is starting to slow. The stalemate over the debt debate has been adding new levels of uncertainty to the equation.” Newhouse said, “Manufacturers cannot afford default and urge Congress and the President to act now.” Newhouse added, “It is critically important that we all work together to ensure a pro-growth, pro-competitiveness, pro-manufacturing economy, with the recognition that some government-funded programs are critical to our nation’s economic and national security.”

In an article regarding the Club for Growth and MoveOn.org’s opposition to the debt ceiling compromise, Bloomberg News (8/2, Salant) notes that business groups often allied with the GOP, including the “National Association of Wholesaler-Distributors, and National Association of Manufacturers, endorsed the legislation. So did the Business Roundtable, an association of chief executive officers.”

June 2011 sales for the Metal Treating Industry reached $86.2 million, a growth of 21.6% over June 2010 sales which totaled $70.8 million.

All nine MTI districts reported higher sales in June compared to the previous year.

CLICK HERE to see the full report and set of trend graphs.

Moreover, you won’t survive breaking even while your competitors earn a profit. They’ll have profits to invest toward enhancing their ability to reach and satisfy customers. You won’t. You’ll fall further and further behind in your ability to compete and earn a profit.

To accept break-even or near break-even performance for an extended period of time without doing something about it is like having cancer and not seeking treatment. It’s a death sentence.

If you’re in this situation, do what turnaround expert Gary Sutton says (paraphrasing):

Take drastic action. Change the way you do business. Find a new, cheaper source for purchased goods or services. Outsource to a contractor what you’re now paying employees to perform. Focus on what you do best and get rid of the rest. Raise prices. Double the sale quota for your sales persons and let go of anyone who can’t hit the new mark. Try new, radical things, without delay. Sure, some may not work, but you’re going to die anyway if you stay on your current course. If you can’t seem to bring yourself to make these kind of changes you need to get out of the business altogether.

No Margin, No Mission

If you provide a product or service that’s competitively sold, odds are there’s a price — or price range — you have to be within to be competitive. Do you know what your competitors charge? Do you know the quality of each of their offerings relative to the price they charge? If you’re not completely sure, find out.

How does your product or service compare to your competition? What is your strategy? Is it a “we do that too” offering that competes on price? Or do you charge more but deliver more? There’s nothing inherently right or wrong with either strategy; you just need to know which is yours and whether you can succeed at the one you select given your particular competencies (or that of your company) relative to those of your competitors.

If you’re not profitable, something is amiss. It might make sense to find out what customers think about your product or service. About how you rate compared to your competition. Then ponder your competencies, those of your competitors, and the strategy that gives you the greatest odds for high profit. A third-party consultant might be helpful.

Do you require a premium price but offer a “me too” product? Do you try to offer a premium product but not charge a premium price?

For example, if you try to compete on price, it does not make sense to offer a premium product. The only way to earn superior, profit-winning sales with a low price is by having the lowest cost structure. This requires you to wring cost out at every turn. The result, of course, will not be (and cannot be) a premium product or service. Similarly, the only way to earn high profit offering a superior product is by charging a markup that’s greater than the extra cost you incur when adding the extra value.

Only through skilled execution of a clear, appropriate strategy can you earn profits that exceed those of your competitors. Legendary business strategist Michael Porter refers to a lack of strategic clarity as being “stuck in the middle.”

Pricing as Product

Sometimes, innovations in pricing can be as important as innovations in product. Take Xerox. Despite the breakthrough technology, its newly introduced copy machines were not selling. The machines were very expensive and executives did not grasp how they could reduce cost. Amazingly, business managers seemed okay with the way they were making copies: secretaries typing with carbon paper. What turned the tide was an innovation in pricing as significant as the product. Xerox stopped requiring up-front purchase and began charging by the copy. It placed its machines in large offices for free and charged for copies. No executive approval was required and office personnel quickly grasped its utility and productivity. Usage grew and Xerox revenue exploded.

Another example is Gillette razors. Competitors sold “the handle” for $20 and then cartridge refills for a few bucks. Gillette began giving away “the handle.” Men obviously liked getting it free. All they needed were refills, so they bought them. Gillette razor usage exploded, as did revenue.

Pricing innovations can be as important as product innovations. Maybe your next breakthrough can be an innovation in price. Maybe your customers would rather pay for what they really want, such as a copy or a shave, instead of paying for “a copy machine” or “a razor.”

Opportunity and Peril in Average Cost Pricing

If you manufacture custom items, you bid jobs. If you bid these jobs on average cost, you have variances from actual. On some jobs, your average cost model builds in too little profit; on others, too much. The result is that you tend to win most of your underpriced bids (which yield lower profit) and lose most of your overpriced (higher profit) bids.

Obviously, this is a problem. You book a lot of low-profit jobs and fail to capture jobs that, had you not overpriced, you could have won at your target profit margin.

The solution? Find a way to gain the ability to more accurately estimate cost. To be able to bid on actual cost rather than average cost. You’ll earn a higher profit and put your competitors at a competitive disadvantage.

And here’s another problem. If you average cost and your competitors study your bidding history and figure out which types of jobs you underbid and overbid, they could exploit the error in your costing for their own gain (and your loss), for example, allowing you to win jobs you tend to underbid and scraping extra profit from jobs you tend to overbid. On the other hand, you could do this to your competitors (if you develop an ability to estimate cost more accurately than your competitors do).

Markup-on-Cost Pricing

This article is the final one of a series on cost reduction and profit enhancement strategies. We hope you’ve implemented the recommendations and wrung considerable cost from your operation. But be careful if you price by percentage markup-on-cost. Don’t give away all your savings!

Pricing your products and services is complex. It can also be confusing and frustrating, but it’s essential to your ability to complete effectively and earn a profit.

What and how you charge should match your overall strategy. If your strategy is to offer a low price, you should not add bells and whistles but rather lower your costs. Conversely, if you attempt to deliver superior value, you must charge a premium (to recover the extra cost you incur).

How you price and charge is as important as any other issue you deal with. An innovation in pricing can be as important as an innovation in product or service. So come on! Outsmart and outwit your competition through skilled pricing and earn superior profit. If you think about it, it’s not even really a choice. It’s a requirement for ensuring the long-term viability of your business.

Provided by The Business Owner, one of MTI’s affiliated publications for providing members the latest in business management ideas.

Once the process is completed, members will have to reestablish their password when logging in.

The new enhancements are going to move MTI toward connecting the online social community with the online store, event registration and accounting functions. This will ultimately allow members to see their history on product orders, membership dues and meetings.

During the week of July 25, members may experience connectivity issues as we perform the maintenance and upgrades. If you experience any connectivity issues and need something from MyMTI, please contact the offices at 904-249-0448 or info@heattreat.net.

Forecast

The rate of growth for the U.S. economy has started to slow after the rapid gains following the recession. This is a normal pattern: a sharp rise from the downturn, a mild slowing, then an extended period of gentle ups and downs until the economy overheats enough to set up another recession. This whole cycle takes about ten years.
Unfortunately the initial recovery from the “great recession” was not strong enough to get the economy back on a solid footing. The collapse of the housing market will continue to be a drag on the economy for the next few years and prevent a rapid return to “normal” levels. The next two years will be marked by steady but unimpressive growth slowing to a very mild cyclical low in late 2012. This will be followed by stronger gains by mid-decade as housing recovers.

Quarterly billings for MTI have made full recovery from the recession and are now exceeding pre-recession highs. This is the exception in the current economy and outpaces overall industrial production. MTI billings will now stabilize over the next two years before increasing again in 2013. Growth is forecast to be 17.4% this year followed by slower 2.4% gains in 2012. The growth rate will increase again in 2013.

CLICK HERE to see a the full report and graphs.

The Foundation is building a fund raising campaign for 2012 that will allow every member to participate at their own level.  The Foundation Board believes its very important MTI gets buy-in from all members to ensure we have the funding needed to engage programs needed to continue to have an exciting new set of skilled workers and leaders in the heat treating industry.

MTI’s Online Academy and the Young Executive Series Management Training program are two prime examples of how MTI is using its resources wisely to reach members all across the globe for professional development.

FNA also made a contribution in 2009 from the 2008 Expo in the amount of $25,000.

If you have any questions regarding the MTI Educational Foundation, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Remember, together MTI can have an impact on issues impacting your company. To remain silent is to say there are no challenges. Please take time to provide your feedback. Thank you for your input.

The Committee has designed a survey for members to complete that will provide the committee guidance as to the direction to go in tackling the most pressing issues first.

CLICK HERE to take the survey.

The Committee would greatly appreciate you taking the time to provide your insight and thoughts before July 31. If you have any questions, please feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

In 2010, the five biggest steel-producing countries were: China, 626.7 million metric tons; Japan, 109.6 million tons; the United States, 80.5 million tons; India, 68.3 million tons; and Russia, 66.9 million tons.

The five biggest steel-producing companies (worldsteel members only) were: ArcelorMittal, 98.2 million metric tons; Baosteel, 37.0 million tons; POSCO, 35.4 million tons; Nippon Steel, 35.0 million tons; and JFE, 31.1 million tons.

Worldsteel’s short-range outlook for 2011 and 2012 forecasts that apparent steel use will increase by 5.9 percent to nearly 1.36 billion metric tons in 2011. In 2012, the trade group forecasts that world steel demand will grow by a further 6.0 percent to reach a new record of 1.44 billion tons. Steel use in the developed world will still be 14 percent below the 2007 level, while in the emerging and developing economies, it will be 38 percent above. In 2012, the emerging and developing economies will account for 72 percent of world steel demand, in contrast to 61 percent in 2007.

World Steel in Figures provides essential facts and statistics about the global steel industry. The book contains comprehensive information on crude steel production, apparent steel use, pig iron production, steel trade, iron ore production and trade, and scrap trade. It is available at www.worldsteel.org.

Reported from MetalCenterNews.com

If you would like to see complete details of the report, log into MyMTI and click on May Sales Stats in the Resources Box on right hand side.

The rule of thumb is ‘book early and have your choice’.  If you choose to book late, MTI’s special room rates are not guaranteed after the cut off date and may not be available.  The last few general meetings have seen members without rooms at the host hotel or paying higher rates due to waiting to the last minute to book.

Leadership expects the Williamsburg meeting to be another sellout due to the incredible programming, a great location for families and spouses and the location being so close to many members on the east coast.

CLICK HERE to see full details on registration and hotel reservations.

You don’t want to miss the Midwest Golf Tournament and Dinner.  MTI is hosting at a new venue and adding some new rules to the 4-person scramble tournament that brings strategy and fun into play.

MTI’s annual tournament is for any handicap from scratch golf to 36.  Because the tournament is a team sport for each foursome, it makes it easy and fun for any golfer at any level to participate.

This years dinner will feature an amazing array of roundtable discussions facilitated by 2011 MTI President, Judy Rudy from Queen City Steel Treating, on the hottest issues in heat treating including contract review, energy efficiencies, motivating employees in a 3-shift/24 day environment and how to use social media to market your company.  It is not a requirement to play in the tournament, so if you can’t play golf, please plan to attend the dinner.

This year’s tournament will be hosted at the ThunderHawk Golf Club, located just 5-miles off I-94 just outside of Gurnee, Illinois.  ThunderHawk is a Robert Trent Jones, Jr., course nestled on 228 beautiful acres of forest, marsh and prairie. It is the first public course in Illinois to achieve Audubon Signature certification. Golfweek named ThunderHawk among the 10 best municipal courses in the United States in 2009 and “Best in State” six years in a row. ZAGAT calls ThunderHawk one of “America’s Top Golf Courses”.  ThunderHawk is conveniently located for MTI members coming from Milwaukee and Chicago.

CLICK HERE to See Full Details and Registration Information.

If you have any questions, please don’t hesitate to contact MTI at 904-249-0448 or info@heattreat.net.

The committee had a lengthy discussion in its first meeting discussing the many areas of concern relating to specs and certification audits.  Three initial action items designed from the Committee were:

MTI to contact with ASTM and SAE to discuss possible group purchasing discounts on industry specifications.

MTI leadership to visit and meet with SAE and Nadcap key staff leadership to discuss key issues.

MTI to survey members to find out their challenges with specs related to pyrometry, automotive, aerospace, nuclear, testing and general industry. (to be released to members next July 19)

MTI to host networking receptions the first two nights of the October Nadcap meetings in Pittsburgh to allow members to come together and gain insight from other members on important issues.

Once the committee receives the adequate feedback from the membership, they will meet again to determine any necessary courses of action with the relevant entities.

We highly encourage all members to provide their feedback and comments in the survey.  These will be the foundation of any actions taken by the committee.

If you have any questions, please don’t hesitate to contact the MTI at 904-249-0448 or info@heattreat.net.

The high percentage of international exhibitors and visitors reflects the global reputation of these trade fairs. The share of international visitors increased compared to the events’ last staging in 2007: over 54% of the visitors travelled to Düsseldorf from abroad, especially from India, Italy, France, Austria and the U.S. A total of 98% of all attendees were pleased with their participation and 97% reported that they accomplished their goals at the four trade shows. The number of experts from top management was also outstanding. Some 80% of the visitors plan investments over the next two years – and the majority of them attended GIFA, METEC, THERMPROCESS and NEWCAST 2011 in order to prepare for this purpose. In addition, concrete business deals were concluded on show site, such as the $ 54 million deal between a German casting machinery manufacturer and the Uzbek railway company. A German induction furnace producer also reported the sale of one of the world’s most powerful melting furnace to an Indian steel producer.

According to Joachim Schäfer, Managing Director of Messe Düsseldorf, both the international flair and the percentage of decision-makers present are important indicators of the success of a trade fair: “The trade fairs have hit the bull’s eye at the right point in time. Those looking into the trade fair halls over the past five days could see that we were host to the entire international expert audience.”

This was also confirmed by leading spokespeople from associations and companies of the exhibiting industries. They especially praised the visitors’ high professional competence. Dr. Ioannis Ioannidis, Board Spokesman of Oskar Frech GmbH and President of GIFA, noted that GIFA 2011 took place in a positive economic environment: “We were visited by a great number of international customers with concrete intentions to buy. The atmosphere was fantastic.” For Dieter Rosenthal, Board Member at SMS Siemag AG and President of METEC, the trade fair has entirely fulfilled and in part even exceeded all his company’s expectations: “We were particularly impressed by the high quality of conversations with interested parties and business associates from throughout the world. This provides us with a very good basis for developing these contacts, following up conversations and intensifying business relations.” Dieter Rosenthal also reported that a company of the SMS group had already received an order for an inductive combined heat and power plant by a Russian producer of forged spheres for milling units. Dr. Hermann Stumpp, Chairman of the LOI Italimpianti Group, LOI Thermprocess GmbH and President of THERMPROCESS, underlined how the trade fair has pooled the entire competence of the industry in terms of both exhibitors and visitors: “THERMPROCESS is the unique center for international thermal process engineering worldwide! We succeeded in making many new contacts, welcoming a particularly high number of experts from India to our stand. THERMPROCESS 2011 was once again a top-notch event – we are very satisfied!”

The industry partner associations VDMA (German Engineering Federation) and bdguss (German Foundry Industry) reported that their innovative member companies were delighted with the wide representation of the machinery market and the high internationality of well-informed visitors with specific purchasing intentions. “After overcoming the economic crisis, this global meeting of the metallurgy sectors in 2011 has proven once again to be an efficient platform for making new contacts. Current trends were discussed at a very high level and the trade fairs also served as marketplaces for preparing and concluding business deals. The trade fairs took place at a perfect point in time. Investments in cutting-edge technologies are imminent in our companies,” stated Dr. Gutmann Habig, General Manager of VDMA.

The Germany Foundry Association was pleased with the response both from exhibitors and visitors. Dr. Gotthard Wolf, General Manager of bdguss, remarked: “The international casting industry confirms its competitive edge over alternative manufacturing process on a broad basis. The trade fairs were a resounding success.” He added that numerous technical innovations and a very high readiness to invest internationally among foundries was a leading characteristic at GIFA and NEWCAST 2011.

A highlight for the trade visitors was the “ecoMetals” campaign for energy efficiency and saving resources in which 28 international exhibitors participated. With this, the four technology trade fairs also served as forums for discussing medium and long-term sustainability strategies and for the development of metallurgical technologies of the future. In addition, the exhibits at each of the four events were supported by congresses, seminars and discussion forums.

A special feature at GIFA 2011 was the successful North American Pavilion, organized by Messe Düsseldorf North America and supported by the American Foundry Society (AFS). Twelve companies displayed their latest products for the foundry industry within this group exhibit.

The four trade fairs will again be held concurrently in summer 2015 in Düsseldorf, Germany. For further information on visiting or exhibiting at GIFA, METEC, THERMPROCESS or NEWCAST 2015, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312) 781-5180; Fax: (312) 781-5188; E-mail: info@mdna.com; Visit our web site http://www.mdna.com; Subscribe to our blog at http://blog.mdna.com; Follow us on twitter at http://twitter.com/mdnachicago

More Companies Deciding To reshore Manufacturing Operations. Fortune (6/30, Tseng) reports that “US manufacturing appears to be on the cusp of an awakening – if not a full rebirth,” and explores some of the reasons behind this trend. Among those noted in the article is the increased expense of manufacturing overseas, both in terms of wages and shipping costs, as well as the costliness of dealing with “weak links” in a global supply chain. At the same time, experts say, there are limits the trend’s benefits. For example, while the benefits of manufacturing in China for export purposes have decreased, the Chinese consumer base for many companies has also increased, and if the company is producing goods in China for the Chinese market “then they’re likely going to stay,” experts said. Additionally, with ever-increasing use of automation, “there are sizeable limits over how many more jobs re-shoring would create.”

Companies Explain Motivations Behind Reshoring Decisions. A similar article in CNNMoney (6/30, Prasso) reports on the prevalence of “a trend called reshoring, in which primarily small businesses decide that China is a hassle and that they want to bring their operations closer to home, where the recession has lowered costs, created workers eager for jobs, and made it easier to justify US manufacturing.” Increasingly, businesses both large and small are looking to “take advantage of local incentives and move back at least some of their manufacturing operations for products sold in the US market.” Companies who have made the decision say that, in addition to the other benefits, reshoring simplifies their operations, and decreases the amount of travel and quality control they need to do.

The award will be based on the following criteria and presented at the 2011 Fall Meeting Oct. 13-15 in Williamsburg, Va.:

Quality Programs: Documenting the steps taken to establish a comprehensive quality program. The applicant will give specific examples of the programs in place, certifications already granted and how the programs have improved their business.

Pollution/Hazardous Waste Control: Specifying the steps taken to minimize the effect of possible pollution or hazardous waste, whether through the purchase of equipment or through internal programs. A specific list of steps taken should be submitted.

Community Involvement/Leadership: Outlining the efforts taken to contribute to the surrounding community. The contribution can include volunteer, educational or financial efforts.

The winner will receive a professionally designed plaque along with a minimum $1,500 donation to be presented as a scholarship to a high school senior or college student pursuing a college degree in materials science or an apprentice program in heat treating. A press release profiling the winning company and scholarship recipient will be published in Industrial Heating magazine.

You can apply either online or in print below.  If you apply online, you have the option to upload a separate document with your submission.  Please use separate sheets of paper if needed. If you are nominating another company, tell us what you know about them and we’ll follow-up. If you are nominating your own company, please complete the following application as thoroughly as possible. The application must be received no later than Aug. 22, 2011, and it must be sent directly to Associate Editor Bill Mayer.   If you apply online, your submission will go directly to Bill Mayer.

Please call 412-306-4350 for more information. Thank you and good luck!

CLICK HERE to Nominate Another Company

CLICK HERE to Complete the Online Application for Your Company to be Nominated for the Award

CLICK HERE to Download a Paper Application for Your Company to Nominated for the Award.  (it is a fillable pdf file so you can type your answers in the area provided on your computer.)

MTI recently refined its design of its outsourcing direct mailer and will start a monthly direct mail campaign to over 750 manufacturers with heat treating operations.

The creative team is working with MTI staff to design additional industry tools for MTI members to use in their marketing for new outsourcing partnerships including an industry website on outsourcing, short videos, banner ads, ads in Industrial Heating Magazine and  content focused on outsourcing in MTI’s Heat Treating mini-magazine that is sent to over 20,000 readers each quarter.

As these tools are developed MTI will make them available to the membership for their use in their marketing efforts. If you have any questions, please don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

The Program Committee has been hard at work analyzing member surveys to ensure MTI delivers another high energy event in one of the United States most historic cities, Williamsburg, Virginia.

The Fall Meeting will be hosted October 13 – 15 at the Kingsmill Resort & Spa. MTI’s program will provide another incredible mix of top experts and member round tables to allow members to learn from each others’ experiences and creative solutions.

The business world is changing faster than ever. MTI’s National Meetings are where you pick up speed and learn how you need to change to keep up with the pace.

Mark October 13-15 on your calendar and prepare to go outside your business to get a better look inside your business.

Outlook for the economy
The economy is moving as expected, making the transition from rapid growth following the recession to a slower, more sustainable pace. Unfortunately the recovery did not reach its full potential due to the stagnant housing market. It will take another couple of years for housing to start to make serious improvements. None of this should be a surprise, but judging from news reports it seems to be.

To see the full report, log into MyMTI and click on June Economic Report in the Resources box on the right hand side of page.

Here is a brief excerpt of Jay’s testimony before the committee:

“Nonetheless, the NAM remains concerned about the significant challenges faced by manufacturers in the United States. Despite the critical role the industry plays in the economy, taxes, legal costs, energy prices and burdensome regulations make it 18 percent more expensive to manufacture a product in the United States than in any other country. That’s without even taking into account labor costs.  Layered on top of these higher costs is the broad uncertainty faced by American businesses that includes “on-again, off-again” tax policy and an unpredictable regulatory environment. Manufacturers also increasingly are concerned about the impact of the historically-high levels of the federal deficit and the national debt on manufacturing and the overall U.S. economy.”

The NAM will continue to push for the policies we have outlined in our “Manufacturing Strategy for Jobs and a Competitive America.” This blueprint will help boost the competitiveness of manufacturers of all sizes which is essential for our economy and job creation.

This past month, NAM hosted the Manufacturing Summit in Washington, DC, bringing together manufacturers from all across America to visit with their legislators on issues impacting manufacturing at all levels.  Click the video below to see NAM President, Jay Timmons, opening remarks to the Summit:

MTI’s industry website, HeatTreat.net, has become an incredible resource for information. Members can connect with other members and engage in industry discussions on issues surrounding everything from quality and maintenance to certifications and government relations.

The following are 14 prominent features of MTI’s website www.HeatTreat.net

1) Search for heat treaters by location, process or certification.

2) Access over 60 technical and management training courses in MTI’s Online Academy.

3) Watch up-to-date technical talks featured on MTI Tech TV.

4) Membership Matching for you or your managers to expand your network of peers across the world and connect 24/7 with the most creative minds in heat treating.

5) Build your own online private network of members to have active communication with.

6) Let your voice be heard on industry issues in any one of MTI’s 15+ discussion groups on safety, maintenance, energy, industry specs, daily operational issues and more.

7) Search MTI’s Online Resource Library that contains hundreds of documents, sales trends, industry forecasts and other key information important to the growth of your company.

Read daily industry news that is compiled from hundreds of publications across the world on heat treating, manufacturing, nickel pricing, steel production, energy issues and many other topics important to your business.

9) One central place to compile News Feeds from industry websites you follow for each of your customer bases.  Keeps you from having to go to various websites for information.

10) Follow the latest developments with the Metal Treating Institute and how it is enhancing resources & services to have a positive impact on your bottom line.

11) Contact your legislators on government issues that are impacting your company.

12) Centralized area for you to keep abreast of Member Action Items such as meeting notices, industry surveys and MTI activities such as nominations and by-laws changes.

13) Always have the latest information on any MTI or industry meetings.

14) Connect with MTI’s over 50 top suppliers in the heat treating industry that offer superior products, services and technical expertise in the market place.

Make HeatTreat.net your daily stop for your business information, financial data, training and connection to other heat treaters and suppliers around the world.  If you have any questions on MTI’s website, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

April 2011 sales for the Metal Treating Industry reached $79.5 million, an expansion of 20.4% over April 2010 sales which totaled $66 million.

All nine MTI districts reported higher sales in April compared to the previous year.  The five year trend graph shows this past month for average monthly sales has returned to the record years of 2007 and 2008 for heat treating sales as a whole.

To see the full report and district breakdown of sales, log into MyMTI and Click on the April Sales Report in the Resources Box down the right hand side of page.

Interview with Dr. Richard Marks of the Leadership Training Institute.

CLICK HERE to See Past Editions of MTI TV.

Our Benchmarking Task Force and Safety Committee highly encourage members to take a moment to have the appropriate person in your company to complete the surveys.  The compiled information you will receive from these two reports will help you maximize your profits, minimize operational costs and enhance safety relating to OSHA and workers compensation insurance.

Click on each of the survey’s below to see full details:

CLICK HERE for Operational Costs Survey

CLICK HERE for Safety Survey

MTI Confidentiality Statement for All Surveys:

Your individual report is held in the strictness of confidence with our third party research firm. No MTI staff, volunteer leader or any member has access or will see any individual results. The third party research firm, Averett, Warmus, Durkee, Osburn, Henning CPA is the only organization with access to member data in preparing our annual report. Members ONLY see the final compiled report.

If you have any questions, please contact our offices at 904-249-0448 or info@heattreat.net.

IHEA members and information about technologies and companies that advertise in Industrial Heating Magazine will be available to you as well as food and beverages.

Other MTI Associate Members with booth displays are listed below with their hall and booth number. Please make every effort to stop by their booth and say hello.

AFC Holcroft – Hall 09 / E03
Dry Coolers – Hall 09 / D17
Eclipse Combustion – Hall 09 / C10
Eurotherm – Hall 09 / A21
Inductoheat – Hall 10 / B24
Inductotherm Group – Hall 10 / B24
Nitrex Metal – Hall 09 / A08
Process Electronic – Hall 09 / A34
Radyne – Hall 10 / B24
Rubig – Hall 09 / B20
Schunk Graphite – Hall 09 / F49
Seco Warwick – Hall 09 / C22
Solo SWISS – Hall 09 / A52
Super Systems – Hall 09 / C55
Surface Combustion – Hall 09 / F46

For full details of Thermprocess 2011, CLICK HERE.

When you log into MyMTI from your mobile device, you will be able to:

- View and search members by name

- View and search your private list of contacts

- Send/Receive messages to members

- View your profile and MyMTI activity

- View and respond to group activities and discussions

Our design team for MyMTI is currently working on a mobile app that will allow you to take full advantage of MyMTI from your mobile device including downloading resources.

MTI is committed to keeping pace with technology so “you”, the member, have immediate access from anywhere in the world, the information you need when you need it.

If you have any questions, please contact our offices at (904)249-0448 or at Info@HeatTreat.net.  We will be more than happy to help you navigate the new mobile friendly website.

Click the video below to watch Jay’s interview.

After a courageous 4-year battle with cancer, showing his trademark humour and strength to the end, Jeff died at Ian Anderson House hospice in Oakville just before sunrise on Friday, June 3, 2011, 13 days before his 54th birthday.

Beloved husband of Jane and devoted dad of Mike, Emily, Dan and Ryan. Son of Ross Pritchard and brother of Kelli (Pritchard-Charky), Jory (Pritchard-Kerr) and Jill (Pritchard-Scott). Predeceased by his Mom, Audrey, in 2005. Son-in-law of Cynthia and Scott Harris and Harry and Linda Birtwhistle.

Born June 16, 1957 in Toronto, Jeff spent his very active childhood in Streetsville, hiking, building tree forts, playing hockey and pulling pranks with his best buds who supported him throughout his life.

As a young man, Jeff earned his pilot’s license, graduated from the University of Toronto as a metallurgical engineer and pursued a career in aerospace at Vac-Aero International in Oakville. There he worked with his Dad, Ross, and with a very talented and dedicated group of colleagues who became some of his finest friends. As CEO of Vac-Aero, Jeff helped lead the company in more international ventures, including in Poland and India.

Family was Jeff’s enduring inspiration and he loved Jane and the kids fiercely, rushing out of hospital after surgeries and treatments to hurry back to his “gang” at the cottage on Lake of Bays to paddle his kayak, take the kids waterskiing, and teach Mike to drive the truck.

Always up for a good party, Jeff enjoyed many happy times with his wider family of in-laws, neighbours, friends and Chatham relatives. We would like to thank you all for helping Jeff celebrate life to the fullest even in tough times.

We would also like to thank the many dedicated professionals who worked so hard to treat Jeff’s cancer, including Dr. Robert Athey; Dr. Peter Ferguson, Dr. Martin Blackstein, Dr. A. Gupta, Dr. Peter Chung and chemo nurse Ferry of Princess Margaret Hospital; the palliative care team at Credit Valley Hospital, and the wonderful staff at Ian Anderson House.

A private family service will be held, followed by a memorial gathering in the future with notice to be posted. To express your condolences, please go to www.glenoaks.ca.

If you would like to make a donation, please consider giving to:

Princess Margaret Hospital Foundation
www.pmhf.ca

Juvenile Diabetes Research Foundation
www.jdrf.ca

April 2011 sales for the Metal Treating Industry reached $79.5 million, an expansion of 20.4% over April 2010 sales which totaled $66 million.
All nine MTI districts reported higher sales in April compared to the previous year.

If you would like to view the full report, login to MyMTI and click on the April 2011 Sales Report in the Featured Resources Box on the right hand side of page.

Bob Weidner, Ken Gronbach and John Schultz provided 3-hours of energetic content on manufacturing, where the opportunities are, why manufacturing is going to come back strong to North America, how government plays into the picture and how to energize and hire the right team in a 24-hour shift environment to handle the growth.

All three speakers have been top rated speakers at previous MTI Meetings.

With the content being so relevant and important, MTI recorded all three sessions to make them available on the MTI Online Academy by the end of June. If you are an MTI Online Subscriber, you will get the courses at no extra cost as a part of your subscription. If you are not a subscriber, you can purchase the courses individually or subscribe to the MTI Academy.

CLICK VIDEO to see highlights from the meeting

CLICK BELOW to See the Picture Gallery From the Summer Meeting

Outlook for the economy This is the time of year when the government revises data and those of us who rely on it discover that the numbers we have been using are often significantly changed, especially over the previous two or three years. This shows the advantages of leading indicators like the CEWI. The only factor is the CEWI that is revised in housing starts, and those are only changed for the previous two months.

The other two factors in the CEWI, interest rates and the Dow Jones monthly average, are not adjusted. This year revisions to sales-inventory-orders (S-I-O) have been significant.

To view the full report, log into MyMTI and click on May Dewolf’s Report in Featured Resource Section on the right hand of page.

Please take the time to look at each of the following surveys and participate.  They have been designed to be short and simple to complete.  The compiled results of each of these surveys will be communicated back to the membership within 10-days of the respective deadlines.

Workplace Safety Survey (CLICK HERE)
DEADLINE: June 6

Annual Operating Cost Survey (CLICK HERE)
DEADLINE: June 15

Fall Meeting Programming Survey (CLICK HERE)
DEADLINE: June 3

If you have any questions on any of the surveys, please contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Each year, members have the opportunity to nominate someone for their outstanding service to either the heat treating industry or service to the Metal Treating Institute. These awards recognize past leaders as well as those serving today.

These awards are presented at MTI’s Fall Meeting and are a great opportunity for the industry to recognize service and leadership in helping MTI achieve its mission of enhancing the image and profitability of the heat treating industry.

If you know someone who has shown excellence in service or leadership to the Industry or the Institute, please view our awards criteria and nominate them.  The MTI Awards Committee will review all award nominees and announce the recipients at the MTI Fall Meeting Awards Dinner in Williamsburg, Virginia on October 15.

One of the greatest honors in any industry is to be nominated by your peers for your commitment and hard work for the good of the industry.  Nominate someone today who is deserving .

CLICK HERE to See Full Details on Nominations

If you have any questions, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Over the course of 2-days, the 28 students attended plant tours with Solar Atmospheres, Solar Manufacturing and Donovan Heat Treating, exposing them to a wide range of heat treating processes and equipment. They engaged in a full day Planning Workshop facilitated by The Afterburner Group, MTI’s teaching partner for the Y.E.S. program.

Over the 8-hour Planning Workshop, the group was split up into 2 teams to build a strategic plan focused on achieving a mission objective that was agreed upon by each group.  One group focused on “staffing their company 100% with qualified staff to handle the growth of their company by year end”.  The other group focused on “growing their company’s net profit 10% by year end”.

The teams were lead through a series of processes by the Afterburner Group where they identified internal and external threats, available resources, discussed lessons learned and then formalized their full plan in a power point presentation that was then presented to each team.  You can view both plans below:

CLICK HERE to See Team Eagle’s Plan

CLICK HERE to See Team Viper’s Plan

To see picture highlights of the plant tours and full-day Planning Workshop, view below.   The Y.E.S. team will be attending their third session in early August in Cincinnati, Ohio.

The Board of Trustees is a governing body of 16 to 18 members who  set policy on all issues surrounding the Metal Treating Institute.

When nominating someone, please keep in mind that the position of trustee takes considerable time and money (inasmuch as the trustee personally incurs all travel and hotel expenses while attending three Board meetings a year, two of which are at the general membership meetings). However, being a member of the Board also supplies many contacts and information about our industry that you can’t get in any other way.

Remember, when making your nomination, only those persons listed on the MTI rolls as Voting Representatives or Alternates are eligible.  They must be willing to serve and accept the obligations of the office, but please don’t feel that you shouldn’t list your own name as a suggestion. If you have the time and are willing to do the job, the Nominating Committee wants to know about your interest.

CLICK HERE to see full details for Nominating.

This deals with a long standing concern raised by Canadian Manufacturers & Exporters Association (CME), its members, and industry partners in Canada and allied countries. Following publication of the draft rule last summer, CME had in fact pledged its members’ commitment to the compliance requirements in a letter to Canada’s Minister of Public Works and Government Services which helped provide the State Department the support it needed to get the Final Rule published.

Canada’s Controlled Goods Program’s Enhanced Security Strategy managed by PWGSC accommodates the new requirements which will facilitate compliance with the new regulations for Canadian manufacturers. CME spoke with the Director of the Controlled Goods Program who assured us that while the changes deal with the dual national issue, PWGSC remains committed to working with us and our members to continue to push for further improvements to ITARs.

The government of Canada will issue a press release today saying it welcomes the change, with CME President & CEO Jayson Myers stating that “the changes both improve our economic competitiveness and enhance our national security,” and adding that “given the integrated nature of supply chains between Canada and the United States, CME welcomes the US Administration’s move towards a more common approach to risk management based on trust and a mutual interest to prevent diversion of ITAR-controlled technologies”.

A Powerpoint presentation from the US Directorate of Defense Trade Controls outlining the changes can be downloaded here. The Final Rule is available in the Federal Register in pdf format. A copy of CME’s letter to the Minister of Public Works is available on CME’s website.

If you have any questions related to this issue, you can contact Jean Michel Laurin, VP of Global Business Policy for CME at 613-238-8888 x4238 or Jean-Michel.Laurin@cme-mec.ca.

Members of the Metal Treating Institute have the opportunity to be a part of this valuable set of annual research in manufacturing if they so choose.

Each quarter, McGladrey will present MTI members, who choose to participate, with a set of core benchmark questions and targeted inquiries on specific business topics. This will provide members with timely data on a range of developing trends.

Upon completion of the survey, members will gain immediate access to a real-time dashboard where they can review and compare their responses in multiple ways against the aggregated answers of other respondents around the country. By participating in subsequent quarters, they will actually see how their answers change over time and in the aggregate.

In addition to the survey dashboard, McGladrey will prepare and provide in-depth analyses of the aggregated quarterly findings, also presented in a dashboard format. An annual report will follow at the end of the full-year cycle.

MTI members identify themselves as such by using a drop-down menu of participating associations at the end of the survey. If MTI has at least 30 executives complete and submit the survey each quarter, McGladrey will provide a summary report of results for MTI members only.

MTI will send the link to participate in the survey the first week of June. If you have any questions, don’t hesitate to contact our offices at 904-249-0448.

To See MTI TV’s Past Editions, CLICK HERE.

Profits can disappear in a real hurry if the right prevention and programs are not in place.

Members have asked MTI to conduct a short survey of 10 key questions to help the industry get a glimpse on how members are performing when it comes to workplace safety.

Results of the survey will be published within a week after the deadline date of June 6th.

As with all MTI surveys, individual answers in the survey are confidential and no individual data is revealed to anyone including staff or membership.

To participate in the survey, CLICK HERE.

If you have any questions, please contact the MTI Offices at 904-249-0448 or info@heattreat.net.

If you are not familiar with HeatTreatQuoteMaster.com, it is MTI’s automated online system where manufacturers or anyone needing heat treating services can login, search our heat treater database by location, processes or certifications as well as enter in RFQ’s for any project they are considering outsourcing.

Once an RFQ is entered by the manufacturer, every MTI heat treater receives an email notifying them of the quote.  Heat treaters can then login to their account and confidentially respond to the RFQ through the system.

SPECIAL NOTE: You are only able to quote if you meet the process and certification requests of the manufacturer.  If your account does not have the specific processes checked as services you provide and certifications checked, you will NOT be able to access the quotes.

The past couple of weeks quotes have come in from Beneteler Automotive, Rupp Forge Co., MBtech and High Technology & Associates and we have members who could perform the work, but could not get to the quote because their profile is not up to date.

PLEASE login to your HeatTreatQuoteMaster.com profile and update your information so you are able view and respond to these RFQ’s.

MTI’s Capture the Captive Creative Team is leading a marketing effort that reaches over 650 major manufacturers in all industries.  HeatTreatQuoteMaster.com is a tool they will be using to look up local heat treaters as well as place projects online for quotes.

If you have any questions, please call the MTI Offices at 904-249-0448 or info@heattreat.net.

This year, MTI has 8 Board Seats up for election with 5 of them held by trustees eligible to serve a second term.  Becoming a Board Member gives you an inside view of the internal work of MTI as well as the opportunity to sit with the best minds in the industry.  Any voting or alternate voting representative is eligible for nomination, and remember, don’t be shy about nominating yourself.  If you have a passion for the industry and making a difference with a great group of creative thinkers, we highly encourage you to nominate yourself.

During the MTI fall meeting in Williamsburg, VA some of MTI’s current and past leaders will be recognized during the Leadership and Service Awards Dinner.  This is an incredible time when numerous awards are presented to individuals and companies who have gone above and beyond in their service to MTI and the heat treating industry.

Both the Awards and Board Nominations are overseen by a committee that follows a process to select qualified and deserving candidates.

Nominations are easy to submit online and in print.  Mark June 1 on your calendar to visit the “Members Action Items” section on the right side of the MTI website, www.heattreat.net.

If you have any questions, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

The 2011 Fall Meeting Program Committee has been formed and is looking forward to member feedback on the topics they would like to see addressed in the General Sessions.

The Program Committee would greatly appreciate your input by answering a short two question survey that will help them design the 2011 Fall Program.

CLICK HERE to provide your input.

Thank you for your input and your support of the Metal Treating Institute.

Looking ahead there are some pretty amazing trips coming in the next few years including:

• 2011 – Williamsburg, VA
• 2012 – San Francisco, CA and Nashville, TN
• 2013 – Ft. Lauderdale, FL and Las Vegas, NV

MTI Associate Suppliers and Commercial Heat Treat members are connected to non-member companies in both the commercial and captive markets. The leadership of MTI wants to give every member company and their key managers an incentive to share the benefits of MTI membership.

Here’s how the program works:

Any member who gets the following number of new members to join will receive the following National Meeting credits of Their Choice:

2 new members:
- Full Registration Fee Paid ($595 value)

4 new members:
- Full Registration Fee Paid ($595 value)
- 4-day/3 Night Hotel Stay Paid ($159 – $199 per night value)

6 new members:
- Full Registration Fee Paid ($595 value)
- 4-day/3 Nights Hotel Stay Paid ($159 – $199 per night value)
- Coach Airfare Paid (up to $500 value)

That’s right…  first 2 rewards you with full registration, second 2 rewards you with your hotel stay and third 2 rewards you with airfare.  That’s ‘Deuces are wild’ at any MTI National Meeting of your choice.

Start looking at your customer base and identify the 6 you will target as members in the next 3 months.  You could be going to one of the most historic towns in America, Williamsburg, Virginia on MTI.

Full details will be launched June 1.  Just look for the ‘Deuces are Wild’ link at heattreat.net.

If maximizing your profit as a commercial heat treater is important to you, this survey is one you must participate in.

The survey will provide the industry averages for each metric for ALL companies, those who realized a profit, those who realized a loss and by your competitive region.

As a participant, you will receive a complimentary copy of the compiled results.

The survey is being administered by a third party research firm, Averett, Warmus, Durkee, Osburn, Henning out of Orlando, Florida.   Please see the MTI Confidentiality Statement below related to benchmarking surveys.

To participate, complete the form in print format or our online version by clicking the links at the bottom of this page.

REPORT DEADLINE: JUNE 15, 2011

IMPORTANT CONFIDENTIALITY NOTICE
Your individual report is held in strict confidence by our third party research firm. No MTI staff, volunteer leader or any member has access to any individual results. The third party research firm, Averett, Warmus, Durkee, Osburn, Henning CPA is the only organization with access to member data collected in this survey. ONLY MTI Members see the final compiled report.

CLICK HERE to complete the survey online

CLICK HERE to download and complete printed version

If you have any questions regarding the survey process, contact the MTI Offices at 904-249-0448 or info@heattreat.net.

CLICK HERE to see Past Editions of MTI TV.

You can then either click on the article in the news scroll and go right to it or click “view all” to see the entire list of news articles.

Some recent articles include:

• Copper, Nickel Up On Global Cues
• A Free Market Energy Vision
• Aperam Says Stainless Steel Prices to Come Under Pressure
• South African Iron & Steel Value Chain
• Next Generation Nuclear Energy Reactors:  A Primer
• Alcoa Up After Metals Recover
• Japan Steelmakers Bullish in Output Plans After Quake

Every morning, new articles are pushed into the feed for members to read and download.  Make www.heattreat.net part of your morning ritual.

MTI is committed to providing you the information you need, when you need it, to maximize your success.  If you have any questions on MTI’s Industry News Feed, contact our offices at 904-249-0448 or info@heattreat.net.

Why should you want to check an employees background? It could be for one of several reasons.   You may want to make sure employees are telling the truth. It’s estimated that over 40% of resumes contain false or tweaked information, so, you will want to ensure that what you are getting from an employee is what you were promised.  You may want to perform a background check to find out whether they actually graduated from college or to confirm that they worked at their previous employer(s) during the time stated on their resume or the job application.   You will also be able to look at any potential criminal or credit issues as well as workers’ compensation to see if you need to make any accommodations.

The following are key items you need to know about various parts of background checks.

Background Check Information
What’s included in an employee background check? The Fair Credit Reporting Act (FCRA) sets the standards for screening for employment. The FCRA defines a background check as a consumer report. Before an employer can get a consumer report or run a credit check for employment purposes, they must notify the employee in writing and get their written authorization.

What’s Included in an Employer Background Check
When employers check a background as part of the hiring process, there is some information that cannot be disclosed without the employee’s consent.   Employers can see school records, bankruptcies, credit reports, criminal records, military records and driving records.

How Employers Conduct Background Checks
You can purchase a background check on anyone you are considering hiring through Murtech Services Group, MTI’s Official Employment Background Service.

Job Applicant Credit Checks
Given that some job responsibilities require dealing with accountability of money, companies are running credit checks on job applicants and or those being considered for promotion.

Drug Tests
There are several types of drugs tests that candidates for employment may be asked to take. Hiring can be contingent upon passing pre-employment drug tests and screenings. Review information on employment drug screening and how it impacts hiring.

What Employers Can Say About Former Employees
One of the questions asked frequently is “What can an employer say about former employees?” Some job seekers presume that companies can only legally release dates of employment, salary, and your job title. However, that’s not the case.   There are no federal laws restricting what information an employer can disclose about former employees. If you were fired or terminated from employment, the company can say so. They can also give a reason. For example, if someone was fired for stealing or falsifying a time sheet, they can explain why the employee was terminated.  That said, because of laws regarding defamation (which is slander or libel) companies are usually careful about what information they provide to hiring managers confirming employment or checking references. What they say has to be the truth or the company can be subject to a lawsuit from the former employee. Legally, they can say anything that is factual and accurate.  Concern about lawsuits is why most employers only confirm dates of employment, your position, and salary.  State labor laws vary, so check your state labor department website for information on state labor laws that limit what employers can disclose about former employees.

Criminal Records and Background Checks.
Laws vary on checking criminal history depending on your state of residence. Some states don’t allow questions about arrests or convictions beyond a certain point in the past. Others only allow consideration of criminal history for certain positions.

Why Employers Check Credit History

Why do employers check credit history? Employers use credit reports to judge how responsible an employee is and to determine how financially stable they are. The results of a credit check can provide you an inside view of how responsible a person is with managing money.

Employers can, with permission, check credit history as part of the job application process and what they discover can be an issue for job seekers.

If you are looking for an easy and turnkey service for background and credit checks, visit MTI’s Official Background Check provider, Murtech Services Group by CLICKING HERE or by contacting their offices at 866-264-1808 or davidm@murtech.net

To see the full  report, log into MyMTI  and click on Economic Forecast (Monthly) under Resources.

McClatchy (4/29, Hall) similarly reported that “the economic outlook isn’t as bad as Thursday’s new data made it appear,” noting that “analysts remained confident that the US economy will continue to grow despite the data showing a sharp slowdown during the first three months of the year.” It also notes the “upbeat” outlook for the manufacturing sector. “For the manufacturing sector, the story continues to be the strong growth in durable goods, which were up 10.6 percent in the first quarter,” Moutray said in an analysis, noting that “production of durable goods – which include refrigerators, cars and cell phones – added almost a full percentage point to the GDP in the first quarter.”

Economy Grew At 1.8% Annual Rate In First Quarter. ABC World News (4/28, story 7, 0:20, Sawyer) reported, “Last night, we told you Fed Chairman Ben Bernanke predicted a slowdown in America’s economic growth. It turns out he was right. The numbers out today show the economy grew at a rate of just 1.8 percent in the first three months of this year, with high gas prices hurting consumer spending.” The CBS Evening News (4/28, story 4, 0:30, Couric) similarly reported that “rising gas prices have putting the brakes on America’s economic recovery. The government reported today that the economy slowed sharply in the first quarter of the year.”

According to Fox News’ Special Report (4/28, Baier), “The Obama Administration took a double hit on the economic front today. First-time jobless applications were way up, and economic growth for the first three months of the year was way down from the previous quarter. … The head of the President’s council of economic advisors says the rest of the year will be better.” Austan Goolsbee: “There is still a lot of people are hurting. It has got to get up higher than what it’s been. But, at least if you look at the data, much of what was dragging it down looks to be likely transitory.”

The AP (4/28, Aversa) writes, “Higher gas prices, severe storms and belt-tightening at the Pentagon slowed the economy in the first three months of the year. Most economists say the weak January-March growth was a temporary setback that will be followed by stronger expansion the rest of the year.” However, “gas prices keep rising, real estate remains depressed and the federal government seems about to adopt some of the deepest spending cuts in a generation.” These factors “could drag on the US economy through the rest of the year, despite a pickup in hiring.”

Bloomberg News (4/28, Homan) reports gross domestic product “rose at a 1.8 percent annual rate from January through March after a 3.1 percent pace in the final three months of 2010, the Commerce Department said today in Washington. Economists projected 2 percent growth,” according a Bloomberg News survey. The Washington Post (4/29, Irwin) warns that the current rate is “lower than the level of growth that, over time, would be expected to drive down joblessness. The US economy needs to grow about 2.5 percent annually to keep unemployment steady.”

Larry Kudlow, at the opening of CNBC’s The Kudlow Report (4/25), said, “Team Obama may be preparing a real pro-growth corporate tax cut. That could be very bullish.” Also on CNBC’s The Kudlow Report (4/25), Trend Macro’s Don Luskin, who has written for National Review, argued that “the whole secret of the second leg up in the bull market has been Obama being dragged kicking and screaming to the center like Bill Clinton was in the 1990s. … You know what’s going to happen two years from now, we’re going have an all Republican Senate and House and probably are still going to have Barack Obama. It’s going to be a replay of the late 1990s. It just doesn’t get any better for markets than that. Buy them now.”

This survey is very important to members in achieving “profit maximization.” You will be able to see how you stand against the competition in critical areas of your business. The survey has only 3-pages to complete.

CLICK HERE to download and complete the survey.

Once completed, you can send the survey directly to the third party research firm at the email or fax number located on the front of the survey.  By completing the survey, your company will receive a complimentary copy of the finalized results. If you have any questions about the survey please contact MTI at 904-249-0448 or info@heattreat.net.

March 2011 sales for the Metal Treating Industry reached $88.5 million, a gain of 21.6% over March 2010 sales which totaled $72.8 million.  All nine MTI districts reported higher sales in March compared to the previous year.

This week’s 1st Quarter Heat Treat Outlook shares further good news for 2011 and the future with sales rising back to pre-recession levels, remaining steady in 2012 and then rising again in 2013.

To see the full Monthly Sales Report with trend graphs, log into MyMTI and click on March Sales Report in the Resources Box.

Economic and tax policy changes, combined with targeted  investment in infrastructure, could effectively stimulate the economy in the near term while positioning the nation for sustained higher economic growth over the medium and long term. Given the current economic environment, a government backed infrastructure program should be considered as an insurance policy to prevent
further layoffs, stimulate job growth, and help restore the confidence of the American labor force.

This report outlined in 2010 the areas of investment and economic policies needed to create future jobs and growth in the American Economy.  The report focused on 2-major areas:

1) Improving economic and tax policies in the areas of corporate income tax rates, R & D credits and export controls.

2) Infrastructure impact in the areas of highway and transit, inland waterways, renewable energy, smart grid, nuclear energy, clean coal technology, offshore drilling and onshore exploration, broadband, NextGen air transportation system and drinking and wastewater infrastructure.

You can view the Executive Summary (9-pages) of the full report (67 pages) by logging into MyMTI and clicking on the Milken Report in the Resources Box.

After losses of more than 50% in some areas of manufacturing, particularly those involved in the housing market, sales have generally returned to levels of the early 2000’s.  MTI is one of the rare industries where quarterly sales are back to the pre-recession “boom” levels of 2006-2008.  Employment, a lagging indicator, has returned to positive yr/yr growth.

To view the full report, log into MyMTI and click on Heat Treat Outlook in the Resources Box on right hand side of page.

Participants will hear from key industry leaders:

• David Lindsay, Deputy Minister, Ontario Ministry of Energy
• Tom Mitchell, President and CEO, Ontario Power Generation
• Dr. John MacDonald, Chairman and CEO, Day4Energy
• Don Thompson, President, Oil Sands Developers Group

Additional speakers from Siemens Canada, SunEdison, Organization of Candu Industries, Ernst & Young, International Power, CanSIA, CanWEA and Canadian Business Magazine will be contributing to a full day of energy sector market intelligence.

EVENT DETAILS:

Location: Toronto Congress Centre
Address: 650 Dixon Road (Toronto ON)
Date: Wednesday, May 4, 2011
Time: 7:30 a.m. to 6:30 p.m.

SUMMIT HIGHLIGHTS:

Industry Leaders Panel – Find out what the future holds for Ontario surrounding the province’s rapidly evolving energy strategy.

Breakout Sessions – Drill down into each specific sector. Speakers will share best practices, supply chain tips, and success stories.

Market Intelligence – Get the right information to build your business plan. Learn the energy landscape and find your niche.

Showcase Room – Get up close and personal with companies. Build relationships and create new business opportunities.

Networking Reception – Meet and connect with fellow industry leaders.

PRICING:

MTI/CME Members: $95; Non-Members: $145

For more information about the event please visit the CME website www.energyconnections.ca.

CLICK HERE TO REGISTER

Manufacturers across America are increasingly focused on the long-term impact of the federal deficit and national debt.

In a speech this week, President Obama unveiled his deficit proposal that includes many recommendations from the Simpson/Bowles Deficit Commission. The Administration would lower the deficit by $4 trillion by reducing spending and increasing taxes. While the Administration would call for a lower tax rate on corporations, the President’s proposal would not extend the current individual tax relief, resulting in a potential $1 trillion tax increase on individuals and small businesses.

These proposals, as well as the recommendations of the Simpson/Bowles Deficit Commission, have three common issues. They seek to address America’s tax system, entitlement programs and deficit. These are vital issues to strengthen our current economic situation and will certainly lead to heated debate as Congress and the Administration seek to pass a budget for fiscal year 2012 – before it starts.

Meanwhile, the House is set to vote Friday, April 15th on a fiscal 2012 budget blueprint approved last week by the House Budget Committee and unveiled by Paul Ryan (R-WI), chair of the committee. The House budget plan, the “Path to Prosperity,” calls for $4.4 trillion in deficit reduction over 10 years and includes cuts in Medicare and Medicaid and the repeal of the Patient Protection and Affordable Care Act. On the tax front, the plan includes a permanent extension of the 2001-2003 tax relief package and lower corporate tax rates.

Lawmakers are expected to take up the debt limit debate when they return from the Easter recess in early May. Based on the latest estimates from the Treasury Department, the federal government will bump up against the current $14.2 trillion debt limit sometime between mid-May and early July. This could be a difficult debate. Given our country’s fiscal situation, there is a strong interest particularly among Republican legislators, to include some spending restrictions on the debt limit legislation. The NAM believes that raising the statutory debt limit is critical to ensuring global investors’ confidence in the creditworthiness of the United States and we support an increase in the statutory debt limit in a timely fashion. Nonetheless, in offering this recommendation, the NAM remains concerned about the level of the federal debt, the large annual budget deficits and remain committed to working with Congress and the Administration to address our Nation’s fiscal challenges.

With more than 95 percent of the world’s customers outside the U.S., the ability of U.S. business to compete in the global marketplace is essential to economic growth. It is imperative that all current and future proposals address the deficit, over the top spending and competitiveness. The NAM will continue to share and advocate for our agenda to remain the global leader in manufacturing.

Update provided through MTI’s partnership with the National Association of Manufacturers.

Bloomberg News (4/15, Chandra, Willis) reports, “Confidence among US consumers rose for a third straight week,” rising to minus 43 on the Bloomberg Consumer Comfort Index and “indicating an improving job market is shoring up Americans’ attitudes toward their finances and the economy.” However, rising energy and grocery costs are still putting pressure on consumers, and remain a concern. “The comfort index ‘has shown a little bit of stability and that’s encouraging,’ said Robert Brusca, president of Fact & Opinion Economics in New York, who correctly forecast the gain. ‘There has been more job growth. The economy has gotten better. The consumer got hit pretty hard on energy prices but after a while they get used to it and it affects them less.’

Economic Stress Index Declines. The AP (4/15, Schneider, Crutsinger), in an analysis of its Economic Stress Index, says, “Thanks to lower unemployment and fewer bankruptcies, the nation’s economic stress edged down in February as all but five states strengthened from January. … The average county’s stress score in February was 11, down from 11.2 in January. A year ago, the average score was 11.8. Under a rough rule of thumb, a county is considered stressed when its score exceeds 11.”

Ontario Economy Outperforms Expectations

The Canadian Press (4/15, Leslie) reports, “Ontario’s economy outperformed expectations in the fourth quarter with a 0.9 per cent jump in Gross Domestic Product, leading to an annualized growth rate of 3.8 per cent for 2010.” Officials noted that this growth put the province ahead of Canada as a whole, and the US. Finance Minister Dwight Duncan “said Ontario is turning the corner after the recent recession, and has recovered 93 per cent of the jobs lost during the downturn, creating about 239,000 jobs between May 2009 and March 2011.” Duncan said the strong Canadian dollar was “a concern and was cited in the budget as a risk factor, and I think it is an important factor.” Reuters (4/15, Sibonney, Hodgson) notes that export gains were a large part of the province’s strong performance.

Canadian Dollar Holds Against US Counterpart. Dow Jones Newswires (4/15, Johnson) reports the Canadian dollar has remained relatively unchanged against the US dollar despite a decline in manufacturing in Canada and uneven economic reports on the US economic recovery.

Manufacturers Alliance/MAPI Survey Suggests Continued Growth In Manufacturing

IndustryWeek (4/15) reports, “The results of the quarterly Manufacturers Alliance/MAPI Survey on the Business Outlook — March 2011 suggest a continued growth trend for manufacturing,” with an index reading of 72, this sixth month it has been above the 50 mark, indicating expansion. However, “the rate of growth may start slowing later this year.” Donald A. Norman, a MAPI economist and the survey’s coordinator, said, “The results of the March survey show the indexes to be strikingly robust and relatively stable. … As such, they paint a clear and consistent picture of continued growth in manufacturing sector activity.”

Manufacturing’s Strong Performance Sets High Expectations. Under the headline “US Manufacturers Face A High Bar This Quarter,” Reuters (4/15, Malone, Zieminski) reports that manufacturing’s strong performance in the past several quarters, when it has taken point in the US economic recovery, has created very high expectations from investors. “It’s easy to satisfy distraction and depression, but now things are better, companies have been reporting rising earnings and it’s harder to impress people,” explained Peter Klein of Fifth Third Asset Management. These heightened expectations are only one difficulty manufacturers must deal with; higher energy and input costs are also pressing on margins.

To help members spend less time searching and more time focused on their core customers and operations, MTI will be implementing technology in May that searches the entire internet for industry news including every major city news publication and pushes the information to one central content feed.

MTI will push all relevant content related to heat treating to their website in a rolling news headline format.  To view any article, you simply click on the article headline.

MTI continues to seek enhancements to our information services on the web because we feel finding the “right” information is critical to members  to help them improve their operations and keep their  staff informed on changes in the industry.

If you have any questions, feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Mark your calendar now for MTI’s Fall Meeting in Williamsburg, Virginia on October 13-15 in one of the most historic colonial cities in America.  Experience the ENERGY, EXCITEMENT and ENTHUSIASM of an MTI General Meeting.

Over the course of 3 days, MTI members enjoyed exciting networking and educational events that gave them the opportunity to engage in discussions on creative ideas for common everyday challenges.

Many indicated this years Spring Meeting was one of the most exciting and informative meetings they have been to in some time.

The meeting started on Thursday night where 180 MTI’ers socialized under the beautiful sunset of the Gulf Coast.  Upon sunset, they ventured inside to experience an incredible dinner and a welcome message from President, Judy Rudy of Queen City Steel Treating.

As members enjoyed the sunrise, the second day began with three informative sessions on ‘How to Forecast Your Future Sales for Budgeting’, ‘Capturing More of the Captive Heat Treating’ and ‘How to Keep Government Out of Your Business’.  After the educational sessions were concluded, 48 members tested the golf course in a scramble golf tournament.  Night two gave everyone an opportunity to enjoy the beauty of Naples and all that it has to offer.

Day three’s educational sessions featured Past Presidents, Doug Peters from Peters’ Heat Treating and Roger Jones from Solar Atmospheres leading attendees through round table discussions on the areas of creative energy strategies, HR issues relating to communications between shifts, furnace maintenance and equipment and capturing more captive heat treating.  Most all surveys shared this was the favorite session over the two days.  The educational portion ended with Karin Iwata from the E-Myth group sharing the keys to working “on” your business, not “in” it so you can focus on how to grow your company back to record profits.

The final night was capped off by an incredible array of food, networking, the golf awards, a live band and dancing.

MTI would like to thank all members who attended one of the largest meetings in the last 10-years.  MTI’s leadership would like to encourage any members who did not attend to put October 13-15 on your calendar for the Fall Meeting in Williamsburg, VA.

A program committee has already been formed to make the Fall Meeting one to remember in one of the most historic cities in America.

U.S. Unemployment Rate Declines
Coverage of the drop in unemployment from 8.9 to 8.8 percent, and the addition of 216,000 jobs, is widespread and upbeat. But some stories also express caution, warning that a significant number of jobless Americans are not counted since they have given up looking for work. Two broadcast networks opened their Friday evening newscasts with the story, and gave the news nearly 10 minutes of coverage.

ABC World News (4/1, lead story, 3:05, Sawyer) called the numbers “strong new evidence that this country may have turned the corner on jobs,” with unemployment now “the lowest in two years. Of course, millions are still looking for work, but companies are hiring now, at the fastest pace in five years.”

The AP (4/1, Aversa) reports, “The nation’s unemployment rate dropped to its lowest level in two years in March, and the outlook is brightening as major companies plan to add more jobs.” The news is “an encouraging sign for the unemployed and for President Barack Obama’s re-election prospects. Still, the job gains haven’t led many people who stopped looking for work during the recession to start again. Fewer than two-thirds of American adults are either working or looking for work — the lowest participation rate in 25 years.”

Bloomberg News (4/2, Willis) says the unemployment rate “unexpectedly fell” as employers “created more jobs than forecast, adding to evidence the labor-market recovery is gaining traction.” Economists “projected a March increase of 190,000, according to the median estimate in a Bloomberg News survey.”
The Los Angeles Times (4/2, Puzzanghera, Semuels, West) says the nation’s “job-creation engine revved up last month and pushed the unemployment rate to its lowest level in two years, spreading optimism that the economic recovery is firmly in place and giving President Obama a political boost.” The President, “trying to fend off a Republican push for deep budget cuts that administration officials warn could derail the recovery, said Friday that the economy was showing ‘signs of real strength.’ But he cautioned that millions of Americans still are out of work and that ‘we have to keep the momentum going.’”

The New York Times (4/2, Powell) says “an emboldened” Obama “spoke of the political implications before several hundred workers” at a United Parcel Service shipping center in Maryland. The President said, “If these budget negotiations break down, we could end up having to shut down the government, just at a time when the economy is starting to recover. So given the encouraging news we received today on jobs, it would be the height of irresponsibility to halt our economic momentum because of the same old Washington politics.”

The Hill (4/1, Swanson) reports Council of Economic Advisers Chairman Austan Goolsbee said in a statement “that the ‘steep decline in the jobless rate and the solid employment growth in recent months are encouraging.’ He said the growth is a sign that the payroll tax cut and business incentives for investment put in place by the administration ‘are creating the conditions for sustained growth and job creation.’”

The Washington Post (4/2, Irwin) says “the improving economy is finally starting to translate into meaningful job creation,” but “the plight of American workers” still “remains difficult. … At the current pace of economic growth, it will take years for the rate to return to healthy levels.” And the Wall Street Journal (4/2, Dougherty, subscription required) says hourly wages remained flat, with the strong growth not yet resulting in pay increases. McClatchy (4/2, Hall) says “rising food and fuel prices” also “remain threats to a strong economic revival, analysts warned.” Politico (4/1, Negrin) and AFP (4/1, Smith) also have reports.

Senate Rejects Bills Seeking To Block EPA Climate Regulatory Authority. The New York Times (4/7, A15, Broder, Subscription Publication) reports, “The Senate on Wednesday rejected efforts to block the Environmental Protection Agency’s program to regulate greenhouse gases, defeating four bills that would have limited the agency’s attempts to address global warming.” Meanwhile, “the House was debating a measure that would also halt the regulations by repealing the agency’s scientific finding that carbon dioxide and other heat-trapping gases are endangering human health and the environment,” which is expected to pass Thursday. And alternatives to the Republican measures introduced by Senate Democrats “that would impose less extreme limits on the EPA regulation drew as many as 12 votes, putting the White House on notice that it risks further party defections unless it moderates the scale and pace of its proposed carbon rules.”

The Wall Street Journal (4/7, Tracy, Subscription Publication) also points out that more than a dozen Democrats voted for at least one of the measures up for consideration Wednesday, suggesting growing opposition to the Administration’s environmental policies.

The Louisville Courier-Journal (4/7, Carroll), reporting on the Senate vote, noted that Minority Leader Mitch McConnell’s amendment to a small business bill was backed by the National Association of Manufacturers and a host of other business groups.

In a 50-50 vote, the AP (4/7) adds, “the Senate rejected a measure by Minority Leader Mitch McConnell of Kentucky and Sen. James Inhofe of Oklahoma that would have repealed a 2009 finding by federal scientists that climate change caused by greenhouse gases endangers human health and would have prevented the agency from using existing law to regulate heat-trapping pollution. The amendment – to a small-business bill – needed 60 votes to pass.” Sens. Mary Landrieu (D-LA), Joe Manchin (D-WV), Mark Pryor (D-AR), and Ben Nelson (D-NE) were the only Democrats to vote for the measure, while Sen. Susan Collins (R-ME) was the only Republican to oppose the measure.

According to Politico (4/7, Bravender, Samuelsohn), “For the EPA’s defenders, the vote sends a strong signal that the Senate won’t endorse efforts to roll back the EPA’s authority to regulate greenhouse gases under the Clean Air Act. But the agency’s critics walk away with a powerful talking point: a majority of Senate lawmakers voted in some way to block the EPA, whether permanently or for a couple of years.”

USA Today (4/7, Jansen) says that “the White House threatened to veto the House bill, which it said would prevent ‘common-sense steps’ to ‘protect Americans from harmful air pollution.’” White House press secretary Jay Carney said, “The administration is encouraged by the Senate’s actions today to defend the Environmental Protection Agency’s ability to protect public health under the Clean Air Act.”

McClatchy (4/7, Abdullah, Schoof) reports McConnell, whose home state of Kentucky relies heavily on coal production, said on the Senate floor Wednesday that his amendment “would give businesses the certainty that no unelected bureaucrat at the EPA is going to make their efforts to create jobs even more difficult than the administration already has.”

AFP (4/7) adds that McConnell said “the votes showed clear discontent with EPA regulations.” The article also points out that “the four Democrats who voted with the Republicans represent states that lean conservative or have major industries in fossil fuels.”

The Los Angeles Times (4/7, Banerjee) reports Franz Matzner, climate and air legislative director for the Natural Resources Defense Council, said of the vote, “It’s clear the Senate rejected efforts to tie the hands of the EPA to limit life-threatening pollution,” adding, “Every day that goes by, we see that the choice between jobs and healthy lungs is a false choice.”

Among the other major sources reporting Wednesday’s votes are Bloomberg News (4/7, Chipman), Reuters (4/7, Gardner), and The Hill (4/7, Restuccia) “E2 Wire” blog.

Senate EPA Opponents Contemplate Next Step. Following the failure of several measures in the Senate Wednesday, The Hill (4/7, Geman) “E2 Wire” blog reports, “Senate Republicans are vowing continued efforts to thwart Environmental Protection Agency climate change rules.” Sen. Lisa Murkowski (R-AK) told reporters after the vote, “I think you will see an effort in the future. How that comes about remains to be seen,” adding, “I don’t know the vehicle, I don’t know the format, but we are not done with it, that is for sure.” Meanwhile, Sen. Jay Rockefeller (D-WV), whose amendment seeking to delay enforcement of EPA regulations for two years was rejected, said through a spokeswoman that he “will ‘examine other avenues’ to address his desire to delay the rules.”

House Expected To Pass EPA-Blocking Measure Thursday. In its “E2 Wire” blog, The Hill (4/7, Restuccia, Geman) reports that “the House is expected to pass legislation Thursday that blocks Environmental Protection Agency climate change rules, but the same measure sputtered in the Senate Wednesday.” The bill from Energy and Commerce Committee Chairman Fred Upton (R-MI) “will follow Wednesday’s rejection of several amendments from House Democrats – including one to put the chamber on record accepting that human-induced global warming is occurring.”

In a separate post to its “E2 Wire” blog, The Hill (4/7, Geman) reports that the House rejected Rep. Henry Waxman’s (D-CA) amendment “that would have put the chamber on record backing the widely held scientific view that global warming is occurring and humans are a major cause.” According to the blog, his amendment “reflects Democratic efforts to cast the bill as an outrageous trampling of scientific consensus.”

MarketWatch (4/7, Bartash) reports that while “the House bill is largely symbolic” given its chance of becoming law, it also “would draw a clear dividing line between the parties and the issue is likely to become a major flash point ahead of the 2012 election.” The vote is also unlikely to “be the end of the dispute,” as “Republicans are expected to try to cut off funding to prevent regulators from enforcing greenhouse-gas rules.” And outside the legislature, “some business groups are expected to sue in federal court, claiming the EPA does not have authority to regulate greenhouse gases under the Clean Air Act. Big lobbying groups such as the National Association of Manufacturers are staunchly opposed to new EPA regulations.”

If you are attending Thermprocess, CLICK HERE if you would like to attend plant tours.

If you need more information on the Thermprocess Expo, CLICK HERE.

For Hotel Information and Thermprocess Travel Booking Information, CLICK HERE.

CLICK HERE to See MTI Interview with Thermprocess 2011 Director.

THERMPROCESS is the world’s leading forum for companies in the field of thermal process technology.   THERMPROCESS offers the big picture of trends, developments, and new processes.

In light of current economic uncertainties, export business is now playing an even more important role in the industry’s development and survival.  Renowned industry manufacturers and many small and medium-sized specialty companies will be here, demonstrating technological advancements in all areas of thermal process technology as well as the construction of plants, machinery, components, and engineering services.

In its “E2 Wire” blog, The Hill (3/29, Restuccia) reports on the start of the campaign, “a series of television and radio advertisements Monday blasting Environmental Protection Agency regulations aimed in part at a handful of senators facing tough reelection bids.” The Hill notes that the initiative is “orchestrated by the National Association of Manufacturers (NAM),” and is “the latest industry effort to slam EPA regulations ahead of an expected vote this week on an amendment to small business legislation that would permanently block the agency’s climate regulations, which are at the center of the criticism of the agency.” The blog offers the full text of the advertisements, which urge voters to “say ‘no’ to costly new regulations.”

Under the headline “A Choice: Recovery Or Regulator?” NAM President and CEO Jay Timmons writes in the “Congress Blog” at The Hill (3/29), “A vote this week on an amendment to prevent the Environmental Protection Agency from regulating greenhouse gas emissions poses a clear question to Senators: Who is best able to drive the economic recovery, federal regulators or manufacturers and other private-sector employers?” The amendment, from Senate Republican Leader Mitch McConnell (R-KY), “would block the federal agency’s attempt to extend an unprecedented level of regulatory control over vast sectors of the US economy,” Timmons writes. He emphasizes the Manufacturers’ strong support for the amendment, and the advertising campaign the association has launched to bolster its ideas. He concludes, “Manufacturers ask that the Senators embrace the recovery by voting for the McConnell amendment.”

Jay Timmons also discussed the campaign in the Manufacturers’ Shopfloor (3/29) blog, writing, “No federal agency should have the authority to simply mandate such a radical, nationwide restructuring of energy use – and force people to pay higher energy prices – without a vote of the elected branch of government, Congress.” He adds, “Manufacturers already have invested billions of dollars to comply with federal regulations. We embrace common-sense approaches to ensure a clean and healthy environment.” Timmons also calls the Manufacturers’ new advertising campaign “just the beginning of a sustained educational campaign about the EPA’s excessive regulations and their effect on the US manufacturing economy.”

EPA-Blocking Measures Expected To Come To Senate Floor. The Hill (3/29, Restuccia) “E2 Wire” blog reports that “three amendments that would limit the Environmental Protection Agency’s ability to regulate greenhouse gas emissions are expected to come up on the Senate floor this week during consideration of small business legislation. Democrats are planning to first hold a vote on a less stringent amendment offered by Sen. Max Baucus (D-MT) that would exempt agriculture from EPA’s climate rules.” Then, on Monday, top lawmakers will determine at a leadership meeting “when two other amendments will be considered, including a Republican proposal to permanently eliminate EPA’s authority to regulate greenhouse gas emissions from stationary sources like power plants and refineries.”

CLICK HERE to Download the Manufacturing Presentation

CLICK HERE to Download the Team Building Presentation

The 2011 class of Y.E.S. students are a wide array of talent with 27 males, 1 female, average age of 42, 26 executive managers and 2 owners. It’s well worth your time to watch the exciting 7 minute highlight video and see why companies are sending multiple people through this program that is after one goal…. Flawless Execution. Take a look for yourself:

There has been a sharp increase in oil prices over the last month, mainly due to speculation and concern about the possibility of revolutions spreading to the oil-rich Persian Gulf states. Rising oil
prices can permeate through the economy and trigger inflation, but at least through February the total CPI has not shown much of an increase. The core CPI, which excludes food and energy, has actually
been falling. The historic yr/yr growth for the total CPI shows the spike in 2008 when a wide range of commodities including gas, corn, and steel rose rapidly to unprecedented levels.

To view the full report, log into MyMTI and click on the March Economic Report under the Featured Resources Box at the bottom right.

• Interview with Zia Karim of Heat Treat Professionals on why Nadcap is so important and the keys to successful audits and preparation.

CLICK HERE to See Past Editions of MTI TV Webcasts.

Members will travel from all seven chapters and 3 countries to take part in a highly informative educational program as well as 3 days of networking with the best minds in heat treating.

The Spring Meeting’s educational program is a powerful program designed by heat treaters who filtered through surveys and feedback provided by the membership on what the hot issues are impacting their companies. The education and networking will provide members an opportunity to discover creative solutions to the daily challenges of operations, managing growth, HR, budgeting, energy strategies and much more.

Welcome Packets are scheduled to be emailed to all attending companies next week sharing the key items you need to be aware of for last minute preparations.

If you are not able to attend the Spring Meeting, MTI has a summer meeting scheduled June 2-3 at the beautiful Belterra Resort & Casino in Florence, Indiana. Details of the summer meeting will be released Monday, March 28.

If you have any questions on any MTI meeting, don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

Shop Floor (3/15, Wood) reports, “The National Association of Manufacturers sent an e-mail letter to committee members Monday urging them to vote yes.”

“Republicans argued that action by the EPA, coming after Congress failed to pass a climate and global warming bill, would impose burdensome and unnecessary rules on industry,” according to the Miami Herald (3/15, Hennessey). The paper said the bill, “introduced by Energy and Commerce Committee Chairman Fred Upton, R-Mich.,” is “a reaction to a 2007 Supreme Court decision holding that the EPA could regulate greenhouse gases if they were found to danger to health.”

AFP (3/16) reports, “If ranking Democrat Henry Waxman’s House amendment had been approved it would have put Congress on record that it accepts EPA finding that ‘warming of the climate is unequivocal’ and would have allowed EPA, under the Clean Air Act, to introduce regulations on greenhouse gases emissions in order to address climate change.” Committee chairman Fred Upton “warned that EPA regulations could cause a further rise in oil prices — already under pressure in part because of unrest in Libya.”

Bill Rejects EPA Findings That CO2 Emissions Endanger Humans – Bloomberg News (3/16, Chipman) reports “the bill also rejects the agency’s finding that carbon-dioxide emissions endanger the public.” Waxman, who was earlier the chairman of the committee, said: “This is science denial.” After the vote, he said, “It’s not worthy of this committee.” Bloomberg says “the committee debated the scientific evidence supporting a conclusion that man-made climate change is a threat to the public as lawmakers consider whether the EPA should regulate carbon-dioxide pollution from smokestacks and tailpipes.”

Manufacturers Support McConnell’s Identical Amendment In The Senate – Reuters (3/16, Cowan) reports Senate Minority Leader Mitch McConnell (R-KY) initiated steps to tag legislation stripping the EPA of the power to regulate CO2 to another unrelated small business bill in the Senate. His amendment would be identical to that recently passed by the House Energy and Commerce Committee.

The Hill (3/16, Restuccia) “E2 Wire” blog reports, “McConnell introduced an amendment to a small-business bill that would permanently block the EPA from regulating greenhouse gas emissions from stationary sources like power plants and refineries. The small-business bill is currently on the Senate floor.” The blog posting notes that McConnell said Tuesday that “these new regulations would destroy jobs at a time when Americans need them most,” adding that “they’d be especially devastating for states like Kentucky and other coal states.”

Shop Floor (3/15, Wood) reports, “The National Association of Manufacturers this afternoon sent a “Key Vote” letter to the US Senators supporting” McConnell’s amendment. “Key vote letters are developed by a committee made up of manufacturers of all sizes and are used to rate a members’ support for manufacturing during a session of Congress.”

Reid Plans To Allow Floor Vote In Senate – Meanwhile, “Senate Majority Leader Harry Reid (D-Nev.) said Tuesday that he plans to allow a floor vote on a primarily GOP bill that would strip” the EPA’s “power to regulate greenhouse gas emissions from power plants, refineries and other sources,” reports The Hill (3/16, Geman) “E2 Wire” blog in a separate posting.

In another posting on its “E2 Wire” blog, The Hill (3/16, Geman) notes, “Sen. Jay Rockefeller (D-W.Va.) said Tuesday evening that he’s offering his plan to block EPA climate change rules for two years as an amendment to small business legislation that’s currently on the Senate floor.”

Bill Faces Uphill Road In Democratic-Controlled Senate – The Detroit News (3/16, Shepardson) reports, “The committee voted 34-19 to approve the measure.” The paper says the bill “faces an uphill road in the Democratic-controlled Senate, and is strongly opposed by the Obama administration.”

Environmental Groups Criticize GOP Move – Some environmental groups, meanwhile, are “working to thwart” the bill in the Senate, The Hill (3/16, Geman) “E2 Wire” blog reports in a separate posting. The League of Conservation Voters criticized McConnell’s amendment, saying, “If passed, this reckless amendment would threaten public health, increase our oil dependence, and stop the EPA’s scientists from doing their jobs.” The National Wildlife Federation warned the move would “dismantle our fundamental clean air protections, undermine our ability as a nation to protect public health, and stifle investments in technologies that allow us to compete in the global clean energy economy.”

The Metal Treating Institute enjoys a strong partnership with the National Association of Manufacturers as well as the Canadian Manufacturers and Exporters Association.  If you have any questions or comments relating to government affairs, please feel free to contact the MTI Offices at 904-249-0448 or info@heattreat.net.

- Industry Standards (Nadcap, AMEC, CQI-9, ISO)
- On-going Safety Training Requirements
- Expanding Markets for Outsourcing in Captives
- Educational Programming for MTI General Meetings
- Quality Technical Training for MTI Online Academy

The leadership is asking you to get involved in one of these key areas by volunteering your input.  With technology developments, MTI has made it very easy for members to get involved and provide input right from their office.  No longer does volunteering mean attending a meeting.  These days it means responding to online group discussions and a conference call periodically.

Together members can move mountains if they coordinate, collaborate and communicate together.  Get involved today and help MTI make the necessary changes needed to help your business grow and prosper.  Below is the purpose of each of the committees and a link for you to indicate which one you have interest in serving on:

This committee is to analyze issues relating to industry standards and specs with any accreditation group or regulatory entity who overseas heat treaters and offer input relating to the impact they will have on heat treating companies.

On-going Safety Training Requirements – The committee will analyze the various safety and training requirements mandated for heat treaters and design the necessary resources and opportunities for training to ensure heat treaters are in compliance.

Expanding Markets for Outsourcing in Captive – This committee will brainstorm and develop quality marketing campaigns and industry tools for use by MTI members to generate more outsourcing from captives to their companies.

Educational Programming for MTI General Meetings – This committee is responsible for developing the educational programs for the annual Spring and Fall Meetings.

Education Committee – This committee will brainstorm periodically to help staff know the technical topics and training needed to enhance the quality course offerings on the MTI Online Academy for Heat Treaters.

CLICK HERE to complete MTI’s Short Call for Volunteers Form.

If you have any questions, don’t hesitate to contact MTI CEO, Tom Morrison, at 904-249-0448 or tom@heattreat.net.

Key Features of the April Spring Meeting:

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Report Finds Surprise Jump In US Hiring

Despite Low Job Creation* Many Experts Optimistic For 2011

Renewed Employment Confidence Boosts Retail Sales

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The Board is slated to make a final decision on any adjustments to the Statement of Limited Liability at their January Winter Board Meeting later this month.  MTI will notify all members with a new copy of the Statement of Limited Liability if there are any changes approved by the Board in early February.  If you have any questions* please don’t hesitate to contact our offices at 904-249-0448 or info@heattreat.net.

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Just recently* “OSHA Inspections: Preparation and Response” appeared in its 11th printing.

Kaletsky* who worked for OSHA (the Occupational Safety and Health Administration) for 20 years* published the 450-page hardcover as a “guide that helps take the guesswork out of dealing with OSHA*” he wrote in a press release.  The book was first published by McGraw-Hill 15 years ago* and the company reprinted it six times. Then the seventh and eighth editions were self-published until it was taken over by the National Safety Council* which has published the ninth* tenth and most recent editions.

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If you would like to see the full economic report* log into MyMTI and click on the Economic Report in the featured resources box.

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• Is there anything MTI is doing that it should be doing differently?
• Is there anything MTI should be doing that it is not?
• Is anything in the strategic plan completed and can be removed?

Through the process* the Board analyzes controllable and uncontrollable threats and challenges to make plans and contingency plans to minimize the impact of challenges to the membership and the association.  Since the implementation of the strategic plan* MTI has enhanced its program offerings to members as well as to position itself well financially to serve the members with a firm foundation.  MTI has been able to keep its dues* meeting registration fees and the online academy subscriptions consistent the last 5 years with no increases when many associations are contemplating increases.

A summary of MTI’s Strategic Plan is as follows:

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To view the full Quarterly Heat Treat Outlook forecast* log into MyMTI and click on the Heat Treat Outlook Report in the featured resources box.

To see a full report by district* log into MyMTI and click on the December Sales Report in the featured resources box.

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The AP (2/1* Rugaber) reported* “Factory activity expanded in January at the fastest pace in nearly seven years* as manufacturers reported a sharp jump in new orders.” The manufacturing activity index from the Institute for Supply Management reached 60.8 last month* marking the 18th straight month of expansion. “Consumers are spending more on autos* appliances and other goods* while businesses have invested in more industrial machinery and computers.” And* this level “of expansion is likely to continue in the coming months. Manufacturing firms surveyed by ISM said their backlog of orders jumped in January.” Exports also rose on higher overseas sales.

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This past week at the MTI Board of Trustees Meeting* the Board approved an enhanced logo with brighter colors and the phrase “Since 1933″ in the logo signifying the longevity and stability of MTI.  You can download a high resolution version of the new logo for your website* brochures and forms by logging into MyMTI and searching keyword “logo” in the upper right search box.  If you have any questions* feel free to contact MTI at 904-249-0448 or info@heattreat.net.

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• Hear from members* Tim Levy* Martin Balk* John Vanas* Tom Benoit and President Judy Rudy on the Winter Meeting  

CLICK HERE to See Videos of Past MTI Meetings.  Don’t miss the opportunity to network* to stay informed and learn creative ideas from the best thinkers in the heat treating industry.

CLICK HERE to see photos of the Winter Meeting.

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• Interview with 2011 MTI President* Judy Rudy* from Queen City Steel Treating

CLICK HERE to See MTI’s Full Set of Past Editions of MTI TV.

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• This 2-minute tutorial shows you how to set your notifications to receive a ONE daily digest email of all your activity within MyMTI.  This better organizes your information and provides you one email to help you respond more effectively and timely to people and discussions you want to participate in.  A lot is taking place online.  Don’t miss out.  Click the video to learn how to adjust your notifications.

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SPECIAL NOTE:  ALL MEMBER INFORMATION IS CONFIDENTIAL AND SECURE.  IT IS NEVER SEEN BY AN MTI STAFF PERSON* BOARD MEMBER OR ANY OTHER MEMBER.  ALL INFORMATION IS COLLECTED AND COMPILED BY A THIRD PARTY RESEARCH FIRM.

The surveys will be available after March 1st via mail and online.  Due to the recent passing of MTI’s long time researcher* Barry Sapolski* MTI’s Beachmarking Taskforce is currently reviewing proposals from several researchers that can conduct the same research. We encourage every member to take advantage of these surveys to help you and your management team ensure you are maximizing your productivity* cost and performance.  If you have any questions* please don’t hesitate to contact the MTI Offices at 904-249-0448 or info@heattreat.net.  To view the valuable information from sample reports from past years* click the following reports:

• Financial Performance and Ratios
• Operational Costs
• Wage & Benefits

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• Interview with Friedrich Kehrer from Thermprocess

CLICK HERE to See Past Editions of MTI TV Wedcasts.

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To view the entire report with graphs* log into MyMTI and click on the Economic Report in the Featured Resources Box.

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If you would like to see the full report and 5 year trend graph* log into MyMTI and click on the October Sales Report in the Featured Resource Box.

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MTI is excited to announce it will be giving a COMPLIMENTARY COPY ($109 Value) of our newly updated Safety & Environmental Self-Audit Checklist Publication to every member that attends the 2011 Spring Meeting in Park City* Utah. This publication focuses on certifications* including Nadcap* ISO and AS9100.  The new updated publication is 84 pages AND covers 74 different areas under 22 different government regulations affecting heat treat plants.  This is the perfect tool for any Quality Manager and Safety/Environmental Department to help identify where issues may exist for potential audit findings from heat treat auditors or government regulators. 

CLICK HERE for Winter Meeting Details and Registration

CLICK HERE for more information on the Self Audit Checklist 

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MTI is picking up the pace in 2011 for educational content through:

Famed business guru* Micheal Gerber states in his book* the E-Myth Revisted* “One of the biggest fallacies of business management is that those who know how to do the technical work* know how to manage and lead the people that do the technical work.”  In other words* a great furnace operator would know how to manage people who operate the furnaces* the great lab technician would know how to manage those who work in the lab.

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Global Manufacturing Accelerates in November

New Jobless Claims at Two Year Low

Retail Sales Up Considerable in November

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• Interview with Steve Pitt from Euclid Heat Treating and Doug Peters from Peters Heat Treating
  

CLICK HERE to Watch  Past Editions of MTI TV Webcasts.”

it is also a good “best practice” to have this self audit checklist completed for viewing by a Nadcap* ISO or any other auditing firm who audits your plant to demonstrate you have a culture of safety and consistent evaluation of your plant.

This 85 page document covers 74 different areas impacted by the 22 regulations affecting your plant.  

This publication ensures you cover each regulation and scope of an audit.  If you would like to order your copy at the special member price of $69 ($109 for Non-Members)* contact MTI today at 904-249-0448 or info@heattreat.netThis e-mail address is being protected from spambots. You need JavaScript enabled to view it .

To see more information and a listing of the government regulations affecting your plant* CLICK HERE.

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MTI will finalize details at the host hotel within the next 10 days and will release full details by December 31.  Registration will open on January 7th.  For purposes of planning and booking travel* we have the confirmed schedule and airport information on the Spring Meeting Section of the MTI Website.  

You can see details by CLICKING HERE. 

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Barry* 61* passed away on November 28* 2010 after a long and hard fought battle with chronic illness and lymphocytic leukemia.  

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