Small manufacturers wait for Bush initiatives
Stark State College certifies Timken training program
Durable goods orders fall in August
Indian Motorcycle halts production, lays off workers
Working Mother top workplaces list includes manufacturers
New hacksaw design wins award for Bahco
Big Three win plant closure concessions from UAW
NAM member lobbies for OSHA legal cost recovery
ISMA New Order Index falls in August
Senate bill would create 3 percent manufacturer tax cut
Survey: Wage increases to be flat in 2004
Job satisfaction falls to all-time low in U.S.
Channellock honors workers with perfect attendance
Milacron sells round tool business

Small manufacturers wait for Bush initiatives
The U.S. lost more than 2.3 million manufacturing jobs since the recession began in March 2001. More than half of those jobs were lost since the recession officially ended in November 2001. American manufacturers are losing work to competitors in low-wage countries and are looking for ways to make themselves more competitive.

As the Bush administration prepares to release its manufacturing initiative later this month, small manufacturers are urging the administration to fully support one of the U.S. Department of Commerce’s programs – the Manufacturing Extension Partnership (MEP) – and to maintain MEP as an essential component of the administration’s effort to bolster the competitiveness of American manufacturers. 

“MEP services are either not offered by anyone else, or they tend to be priced beyond our means,” said Albers Manufacturing Company chairman and CEO Rolf Albers. “Our ability to create and maintain sustainable manufacturing jobs in Missouri and the rest of the U.S. is at stake and organizations like the Missouri Manufacturing Extension Partnership are desperately needed."

Secretary of Commerce Donald Evans recently singled out innovation as the competitive advantage of American manufacturers, noting that manufacturers have adopted lean manufacturing techniques, reached zero-defect quality targets, provided customers with value-added products, and learned new management methods for supply chains.

“MEP works with small manufacturers to achieve the very strategies identified by [Evans],” said Modernization Forum president Mike Wojcicki. “Independent studies show MEP clients reduce costs and achieve lean and quality improvements at a far greater rate than other small manufacturers. MEP offers a hand up, not a hand out, so our smaller manufacturers can compete with companies overseas.”

MEP received approximately $106 million in federal funds for each of the past five years. The administration recommended slashing funding to less than $13 million next year, which would end federal funding to MEP centers in all but two states. Congress restored funding for MEP last year, but has yet to determine funding for fiscal year 2004.

Small manufacturers give MEP high praise. For example, in recent congressional testimony, Quickdraft Company president Bill Litzler said, “MEP is a tremendous asset. It made us a much better company."

The official response to thousands of manufacturers who have written the president pleading for MEP support has been that “[t]he original legislation that created the MEP program called for a phase-out of federal monies to MEP centers after the six years of funding.” However, Congress eliminated the sunset clause in 1998.

“That’s not a very defensible position," said Wojcicki. "The president surely wants Congress to lift the sunsets on his tax cut packages. Congress took decisive action to repeal the sunset provision for MEP funding back in 1998, because of MEP’s incredible results for small firms. With his manufacturing initiative, the president has a chance to show our small manufacturers and their workers that he’s serious about helping them.”

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Stark State College certifies Timken training program
Stark State College of Technology certified the Timken Bearing Maintenance Training curriculum for continuing education units (CEUs), according to a Timken Co. press release. 

CEUs are commonly utilized in many industries to provide ongoing professional enrichment based on approved curriculum by an educational institution. Timken's training program, taught by a team of service engineers, is designed to educate customers on the practical issues of bearing handling, installation, lubrication and maintenance. The program serves a number of industrial markets, including rolling mills, aerospace, mining, power generation and the heavy-duty truck market.

In its assessment of the training program, Stark State reviewed the instructors, the classroom curriculum and the hands-on presentations before granting certification. As a result, the Timken Bearing Maintenance Training program offers two options: a four-hour class approved for .25 CEUs, and a three-day advanced training session approved for 1.5 CEUs.

"Timken customers now have access to world-leading bearing training that also offers them continuing education credit," said Timken service engineering group section manager Jeff S. Calvin. "Ultimately, our focus on friction management solutions helps many of our students apply real world benefits of increased production uptime and reduced maintenance costs to their respective companies. We appreciate Stark State's support in this program."

In addition to its bearing training program, Timken offers a full range of training programs, including rolling mill training, a traveling distributor training program, and the Learn and Lead technical training program, which focuses on anti-friction bearing principles and design elements for original equipment manufacturers. To learn more information about Timken's various training programs, visit www.timken.com/training.

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Simonds Industries to merge with International Knife & Saw
Industrial cutting tools provider Simonds Industries Inc. will merge with industrial knife products provider International Knife & Saw. The merged company, Simonds International Corp., will produce cutting tools and related products for the wood, pulp, paper, metal and other industries.

In conjunction with the merger, Simonds announced a plan to recapitalize the company that will significantly reduce its indebtedness, opening the way for renewed investment to continue its business momentum.

Simonds’ lenders unanimously agreed to a debt for equity exchange in order to accomplish the recapitalization of the company. Both the merger and recapitalization are subject to the closing conditions that are usual for transactions of a similar nature and scope.

“This merger and recapitalization plan is the final phase of restructuring undertaken by Simonds," said Simonds president and CEO Ray Martino. "The restructuring plan demonstrates the commitment made to our customers, vendors and employees to focus on delivering new products, improving customer satisfaction and strengthening the company’s financial structure.”

International Knife & Saw chairman and interim CEO Peter Schweinfurth said the merger would result in "better utilization of factory capacity, stronger research and development, broader product line, and improved customer service capability.”

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"We are extremely pleased to have GE Superabrasives join our portfolio of companies," said Littlejohn & Co. chairman and CEO Angus Littlejohn. "Since the 1950s, Superabrasives has been the premier global supplier of manufactured diamonds and the inventor of many innovative industry technologies. Given its reputation for product quality and customer service, combined with a leading position in research and development, we are confident we can help create long-term value and profitably grow the business."

Tanya Fratto, who currently leads the business for GE, will serve as CEO of the business, which Littlejohn expects to rename upon completion of the transaction.

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Durable goods orders fall in August
Durable goods orders declined in August for the first time since April, according to a Commerce Department report. 

New orders for durable goods fell 0.9 percent, or $1.6 billion, to $173.3 billion. This followed a July increase of 1.5 percent. Year-to-date, new orders are 0.4 percent below the same period a year ago.

Durable goods are costly manufactured products expected to last three or more years.

During August, transportation orders had the largest decrease, $1.2 billion or 2.2 percent to $51 billion, led by motor vehicles and parts, which decreased by $2.9 billion.

New orders for machinery fell by 0.7 percent after increasing 3.4 percent during July and 2.7 percent during June.

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Indian Motorcycle halts production, lays off workers
Four year-old motorcycle company Indian Motorcycle Corp. ended production and laid off all of its workers after a deal with an investor failed to come through.

Chairman Frank O'Donnell and the company's board of directors said fixed production and design costs forced the company to pull back from production in order to find new lower-cost production and design methods.

Demand was not an issue, according to the company. In a June 16 release, Indian Motorcycle said it set a new monthly sales record in May of 563 motorcycles, up 39 percent compared to the same period last year. This happened during a month when overall industry sales declined slightly.

During May, the company's sales outpaced motorcycle manufacturers Triumph, Ducati, Victory and Aprilia. Indian motorcycles can cost more than $23,000 each.

Some 380 workers  in Gilroy, Calif., lost their jobs because of the halt in production.

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Working Mother top workplaces list includes manufacturers
Working Mother magazine recently published its 18th annual survey of the top 100 companies for working mothers. Some major manufacturers were included on the list.

Some of the manufacturers included:
• Aventis Pharmaceuticals
• Bristol-Meyers Squibb
• Cisco Systems
• Colgate Palmolive
• DaimlerChrysler AG
• General Electric
• General Mills
• IBM
• IKEA
• Kraft Foods
• Microsoft
• S.C. Johnson and Son
• Texas Instruments

The attributes a company might possess to qualify it as a top company for working mothers include child-care for younger and older children; flexible work schedules; and advancement of women.

IBM vice president of global work force Ted Childs told MSNBC.com that the working mom programs are not just "feel-good" situations.

"This is about getting the best talent, the most sought-after talent, and keeping them happy at our company," he said.

All of the companies selected by the magazine had some form of flextime systems available. Flextime allows employees to work shorter hours on certain days and longer hours on others to make their work schedule better fit their life.

To read more about the Working Mother top 100 companies, visit the magazine's Web site.

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New hacksaw design wins award for Bahco
What does the Mercedes SL 500 luxury car and the Bahco 325 hacksaw frame have in common? They both won Silver Awards at the 2003 Industrial Design Excellence Awards (IDEA), an annual contest from the Industrial Designers Society of America.

Designed by Bahco Tools AB in Sweden and Ergonomi Design AB, the 325 hacksaw frame offers comfortable, ergonomically designed, elastomer grips on both the front and back ends of the frame.

The innovative enhancement of the added front grip on the frame provides convenient two-handed use to increase control and to reduce fatigue. The design earned the Bahco brand product a Silver IDEA, presented to Bahco-Sweden representatives during an award ceremony Aug. 16.

"We develop ergonomic products using a systematic 11-point process," said Bahco North America manager of marketing communications Jared I. Cohen. "By being recognized with a Silver IDEA and the only hand tool to win an award, we are confident that tradesmen and industrial users throughout the United States, Canada and Mexico will be inspired to experience for themselves the convenience that the 325 hacksaw frame provides."

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Big Three win plant closure concessions from UAW
The Big Three automakers won concessions in their new contracts with the United Auto Workers (UAW) that will allow them to close several plants and cut capacity, according to a report in the Wall Street Journal.

In a UAW-prepared document for local union leaders in Detroit, the union said it gave permission for Ford Motor Co. to close or sell four separate plants. The concession will affect about 4,500 people.

Ford may close or sell its pickup truck factory in Edison, Ill.; its van plant in Lorain, Ohio; its Vulcan Forge in Dearborn, Mich.; and its Cleveland Aluminum Casting plant.

DaimlerChrysler AG's Chrysler Group will close or sell as many as five operations, affecting approximately 4,700 workers.

General Motor Corp. will close a Baltimore-based van assembly plant; an auto parts factory in Saginaw, Mich.; and the Argonaut Building in Detroit. General Motors will also sell a locomotive engine plant. In all, nearly 3,000 General Motors workers will be affected.

The automakers said these concessions were needed in order to reduce capacity and return to profitability. The UAW managed to defeat efforts from General Motors auto parts spin-off Delphi Corp. to consolidate six auto parts factories during negotiations.

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NAM member lobbies for OSHA legal cost recovery
National Association of Manufacturers (NAM) member James Knott Sr., president of Riverdale Mills Corp. in Northbridge, Mass., testified before Congress Sept. 17 in support of H.R. 2731, the Occupational Safety and Health Small Employer Access to Justice Act of 2003. 

He urged that it be amended to allow more small businesses to recover their legal costs when they contest alleged violations in court and win.

“My experience with OSHA shows how its inspectors can get totally out of control,” Knott told the Subcommittee on Workforce Protection.

OSHA charged Riverdale Mills with more than a dozen violations over the course of several inspections, all of which were dismissed and many of which were the product of OSHA inspectors’ ignorance of their own department’s regulations, according to an NAM statement.

Riverdale Mills has received numerous safety awards, including awards from the Massachusetts Safety Council and the National Safety Council’s central Massachusetts chapter.

“This bill is a step in the right direction,” Knott said. “The one exception I take is with the size requirement for small business being set way too low for those that would be able to get their attorneys’ fees back if they prevailed [in court]. This section of the bill needs to be changed to reflect a true small business definition. I along with the NAM believe that a better definition would be the Small Business Administration’s definition of 500 employees for most manufacturing and mining industries.

“In today’s modern manufacturing world we are very asset rich in machinery and equipment, but this surely does not make us a so-called big business,” Knott added.

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ISMA New Order Index falls in August
The Industrial Supply Manufacturers Association's (ISMA) New Order Index slipped to 144.1 in August, down from 145.3 in July, according to an ISMA report. The index was also down from 152.4 during August 2002.

The Federal Reserve Board's Durable Manufacturers Index also declined, to 121.6 in August from 121.8 in July and 122.7 in August 2002. Still, the index was down just 0.3 points from its highest mark in 2003, set in January.

Durable goods are items with a normal life expectancy of three years or more, such as autos, furniture, appliances and mobile homes.

The Conference Board's Index of Leading Indicators increased in August to 113.3 from 112.8 in July. It was also up from 110.9, the mark set during August a year ago.

The 10 Leading Indicators are: building permits, average weekly initial claims for unemployment insurance (inverted), interest rate spread, real money supply, index of consumer expectations, vendor performance, stock prices, manufacturers' new orders for nondefense capital goods, manufacturers' new orders for consumer goods and materials, and average weekly manufacturing hours.

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The tax cut would replace an export tax credit the World Trade Organization ruled illegal. The cut could create about $92 billion over 10 years if the Senate fixes corporate tax loopholes and increases U.S. customs service fees.

The illegal export tax credit could begin a trade war with Europe if Congress does not repeal it by the end of the year. In the meantime, the manufacturer tax cut will compete with two bills in the House of Representatives promising other methods of replacing the export tax credit.

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Survey: Wage increases to be flat in 2004
Wisconsin workers may find their checks won't increase too much because of raises next year, according to a survey from MRA-The Management Association Inc.

Manufacturers expecting to provide wage increases next year will increase wages by an average of 3 percent, according to the study. This compares to service companies, which expect to provide raises of 3.6 percent on average.

Fewer manufacturers will freeze wages in Wisconsin, as well. Only 8 percent of surveyed manufacturers will cut or freeze employee wages next year, down from 18 percent last year.

Raises will increase by an overall state average of 2.8 percent; that includes businesses that do not plan to give raises. Among only businesses that plan to give raises, the wage hike would reach an average of 3.2 percent.

The survey looked at 347 businesses across Wisconsin.

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Job satisfaction falls to all-time low in U.S.
Americans continue to grow more unhappy with their jobs, according to report from the Conference Board.

Less than half of all Americans say they are satisfied with their jobs, the highest level of discontent since the survey was first conducted in 1995. The decline in job satisfaction is found among workers of all ages, across all income brackets and regions. Regionally, discontent is the lowest in New England and West South Central regions.

Most Americans are satisfied with their commutes and their co-workers. But only one worker in five is satisfied with the company's promotions and bonus plans, and only about one in three is content with wages.

"The level of job satisfaction has been steadily on the decline since reaching nearly 59 percent in 1995," said Lynn Franco, director of The Conference Board's Consumer Research Center. "As technology transforms the workplace -- accelerating the pace of activities, increasing expectations and productivity demands, and blurring the lines of work and play -- workers are steadily growing more unhappy with their jobs."

Those aged 45-54 expressed the least amount of satisfaction; only 46 percent say they are satisfied with their employment. Those 65 and over claim the greatest level of satisfaction (54 percent).

Satisfaction levels tend to rise with earnings. Householders earning less than $15,000 are less satisfied with their employment than those earning in excess of $50,000. But, even among the high-end earners the overall level of satisfaction has fallen over time. Back in 1995, 66.5 percent of householders earning more than $50,000 claimed to be satisfied with their jobs compared to 53.4 percent today.

Regionally, the differences are quite pronounced. Workers expressing the least amount of satisfaction (about 43 percent claiming to be satisfied with their jobs) reside in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont and in Arkansas, Louisiana, Oklahoma, Texas. Residents of Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota are the most satisfied workers, nearly 55 percent claim to be satisfied.

Among the several job aspects respondents were asked to assess, promotion policies and bonus plans received the least favorable ratings; only 20 percent were satisfied with their company's current policies. Educational and training programs were also near the bottom of the list.

The survey is based on a representative sample of 5,000 U.S. households, conducted in July 2003 for The Conference Board by NFO WorldGroup. NFO is one of the TNS group of companies.

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The associates honored were never absent or tardy at all during the program period. The only absences not counted against the perfect attendance record were those due to vacation, jury duty, military duty or bereavement.

During recognition lunches held at both of Channellock's manufacturing plants on each shift, honorees were recognized by supervision and management. Channellock presented them with a commemorative etched glass plaque, an embroidered golf shirt and a preferred parking space for six months.

The 51 associates honored with perfect attendance account for 11 percent of Channellock's total work force of 471 associates.

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Milacron sells Talbot round tool business
Milacron Inc. sold its Talbot round tool business to Harpoint Holdings Inc., a private investment group in Newtown, Pa.

"We are committed to Talbot's continued success in the marketplace. We are excited to begin working with Talbot's dedicated employees, outstanding brands and valued customers," said Bill Coyle, one of Harpoint's principals.

Sale price and other specific terms of the transaction were not disclosed. The transaction is not expected to have a material effect on Milacron's sales, earnings or cash flow in 2003.

The Talbot tool brands (Data Flute CNC, Weldon Tool, Brubaker Tool, Fastcut, New England Tap and Micro Carbide Tool) serve the automotive, aerospace and other metalworking industries with high-performance solid carbide and high-speed steel/cobalt end mills, drills, taps, reamers, countersinks and counterbores.

With about 220 employees, the Talbot business manufactures its metalcutting round tools in Pittsfield, Mass., and Millersburg, Pa. It had 2002 sales of approximately $30 million. Milacron purchased the four original Talbot brands in 1995 and added Data Flute in 1997 and Micro Carbide in 1999.

"Talbot's reputation for leading-edge round tool technology is second to none, and we are happy to sell the business to a buyer who intends to grow it," said Milacron chairman and CEO Ronald D. Brown. "We thank everyone at Talbot for their hard work and dedication over the years. We extend our very best to them as they move forward with Harpoint Holdings as the supplier of quality products for metalworking."

Last month Milacron completed the sale of its other round tool business, Minnesota Twist Drill, to MTD Acquisition Inc.

"For Milacron, divesting the remainder of these cutting tool businesses enables us to further focus our resources on our core businesses -- plastics technologies and industrial fluids -- and continue to find better ways to serve our customers around the world," Brown said.

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