MRO Today - Manufacturing Industry News

Manufacturing Industry News Archives:
News from the week of Dec. 20, 2004

North American Tool Corp. founder dies
State unemployment holds steady in November
Executives undertake company-wide improvement efforts
Manufacturing workers least optimistic about future work
Bodine Electric holds contest to find oldest motor
New Baldrige quality award criteria released
Labor Department updates employment rules for minors
NIST, Big Three automakers form partnership
UAW, Ford raise $225,000 for holiday season charity
Conference Board's leading index climbs in November
Metalformers predict increase in business

North American Tool Corp. founder dies
Roger Keith Taylor, 60, president and CEO of North American Tool Corp. in South Beloit, Ill., died Dec. 20, after a brief battle with cancer. Friends and associates remember him as a tremendous community and industry leader.

Taylor was born April 11, 1944. He graduated from Beloit Memorial High School in 1962. He was married to Gail Morgan Leonard for 37 years, and had daughters, Beth-Ann (Charles) Ward and Amy Taylor; and grandchildren, Elizabeth and Benjamin Ward. He is also survived by his stepmother, Mary Taylor of Boynton Beach, Fla.; and a dear niece, Jayne Oakes of Harpswell, Maine.

Taylor was honorably discharged from the Massachusetts Air National Guard, where he served as a Crash/Fire/Rescue specialist. Roger, and his father, K.Y. Taylor, founded North American Tool Corp. in April 1986. Prior to this, he held various management positions with Regal-Beloit Corp. from July 1977 to April 1986.

Before that, Taylor worked in hotel and retail businesses. He was extremely active in his community, his church and the industry he loved and served. In his community he worked often behind the scenes without fanfare, contributing his time, talents and enthusiasm.

The following is a sampling of the community programs with which he was actively associated:
• First Congregational Church in Roscoe;
• Stateline United Way, serving on the Board of Directors from 1995-2000, campaign chair in 1998 and co-chair of the campaign's Key Club division;
• Greater Beloit Chapter of the American Red Cross;
• Endowment Committee of Beloit Memorial Hospital;
• Beloit YMCA, serving on the board for two three-year terms and as president from 1996-97;
• Greater Beloit Chamber of Commerce;
• president of Chamber Board in 1989, initiating numerous new programs and initiatives;
• past board member of Blackhawk State Bank;
• Stateline Boys and Girls Club;
• Stewardship Committee of Beloit Lodge of Elks;
• Turtle Creek Breezeway Development Corp.; and
• he was awarded 1998 Outstanding Fundraising Volunteer by the National Society of Fund Raising Executives/Rockford Area Chapter.

Taylor's professional life centered around the cutting tool industry and the industrial distributors who were instrumental in the growth of North American Tool Corp. and its subsidiaries. He served in many capacities in the three trade organizations to which he belonged.

He served on Board of Directors of United States Cutting Tool Institute (USCTI) and was past president of American Measuring Tool Manufacturers Association (AMTMA). He was one of two manufacturers that served on the board of the Industrial Distribution Association (I.D.A.) and was very active in the merger of Industrial Supply Manufacturers Association (ISMA) and I.D.A. to the new Industrial Supply Association (ISA).

There is a private family service. Visitation from 4 p.m. to 7 p.m., Dec. 22, in Daley Murphy Wisch & Associates Funeral Home, 2355 Cranston Road, Beloit, Wis.

Memorials may be given in his name to Stateline United Way Endowment Fund, Stateline Family YMCA Pool Fund of Roscoe and First Congregational Community Church of Roscoe.

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State unemployment holds steady in November
Regional and state unemployment rates were little changed in November, according to the Bureau of Labor Statistics. All four regions and 47 states and the District of Columbia recorded changes in their jobless rates of 0.3 percent or less from October.

Over the year, jobless rates declined in all four regions and in 42 states. The national unemployment rate was essentially unchanged over the month at 5.4 percent in November.

Two New England states, New Hampshire and Vermont, reported the lowest unemployment rates in November, 3.1 percent each, while eight additional states recorded rates below 4 percent.

Alaska again posted the highest state jobless rate, 7.2 percent, followed closely by Oregon and Michigan, with rates of 7.1 and 7 percent, respectively. Wisconsin added 67,500 jobs during 2004, the most of any Midwestern state.

From October, unemployment rates declined in 29 states, increased in 12 states and the District of Columbia, and were unchanged in nine states. The neighboring states of Montana and North Dakota recorded the largest monthly unemployment rate decreases (-0.6 percent and -0.5 percent, respectively). No state had a rate increase greater than 0.4 percentage point.

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Executives undertake company-wide improvement efforts
The University of Michigan and eePulse Inc. measured 10 key areas business leaders are focusing on to improve organizational performance, according to Theresa Welbourne, research conductor from the University of Michigan - Ross School of Business.

Started in June of 2003, the Leadership Pulse measures the effects of key resources and confidence levels on overall business growth and performance.

In the study, 456 executives responded to the question: "What are you doing to improve your company¹s performance beyond cutting costs?"

Responses indicated the following:
• 27 percent - undertaking company-wide performance improvement initiatives to refine current processes.
• 17 percent - focusing on specific strategies, partnerships and business growth opportunities to increase sales.
• 13 percent - providing employees with training, seminars and other educational resources.
• 11 percent - motivating and recognizing employees.
• 8 percent - introducing new products and services to the marketplace.
• 7 percent - implementing the latest technology to streamline operations.
• 7 percent - hiring new employees and concentrating on recruitment efforts.
• 6 percent - improving internal communications.
• 4 percent - improving customer service and personal goals.

"These results indicate that leaders are seeking help from within; reading through the detailed comments you realize how much senior executives are looking to their workforce for ideas and help in improving firm performance," said Welbourne.

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Manufacturing workers least optimistic about future work
The Hudson Manufacturing Employment Index posted an annual average of 99 during 2004. The manufacturing index consistently posted the lowest monthly readings and trailed the national Hudson Employment Index for workers across all industries each month.

These downbeat patterns reflect relatively weaker attitudes towards critical employment and job market issues for manufacturing employees in comparison to sentiments of workers across all industries.

The Hudson Employment Index, which gauges workers’ confidence towards the job market across all industries, found that manufacturing workers consistently reported the lowest levels of optimism about their personal finances compared to workers nationally.

Sector workers also more frequently forecasted layoffs at their organizations and reported relatively low levels of job satisfaction.

Finally, they demonstrated less confidence in personal control over their career direction and corresponding low levels of job security. They were less likely to believe that their next jobs would be better than their current ones when compared to all workers.

Detailed monthly comparison charts are available at http://www.hudson-index.com/hudson/yearend.asp

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Bodine Electric holds contest to find oldest motor
In celebration of Bodine Electric Co.’s 100th anniversary, the company will hold a contest designed to find the oldest Bodine motor or gearmotor.

There are three ways to win:
• $1,000 for the oldest Bodine product still doing its job;
• $1,000 for the oldest Bodine product, running or not;
• $1,000 for the most unusual or unique use of a Bodine motor.

Plus, the winner will also receive an additional $1,000 donated to their favorite charity. Contestants can register at Bodine’s Web site. The contest will end June 30, 2005.

“The theme of the contest emphasizes the philosophy shared by the Bodine brothers nearly one century ago, to produce superior-quality products to make machines work optimally, and for the longest possible time,” said John Morehead, Bodine's vice president of sales and marketing.

From supplying a dentist with a specially designed motor for an electric tooth drill in 1905, the company provided motors for such diverse applications as movie cameras and projectors, phonographs, jukeboxes, scientific instruments, office equipment, WWII aircraft fuel pumps, photocopiers, medical scanners, printing presses, factory automation, food service equipment, and many other applications.

Still family owned, Bodine is headquartered in Chicago and offers more than 850 stock motors and gearmotors worldwide, including AC, DC, and Brushless DC.

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New Baldrige quality award criteria released
The criteria used to apply for the 2005 Malcolm Baldrige National Quality Award are now available.

The Baldrige Performance Excellence Criteria are used by thousands of organizations to assess and improve their performance in a wide range of areas including leadership, governance and ethics, employee and customer relations, and results.

A worksheet is also available organizations can use with the criteria to do a simple self-analysis. The worksheet can help identify an organization’s strengths and opportunities for improvement and establish goals and action plans.

The criteria and the worksheet are available at http://www.baldrige.nist.gov or by calling .

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Labor Department updates employment rules for minors
The Labor Department published final regulations implementing changes to employment rules for minors.

"These rules are part of the department's ongoing effort to promote positive, safe work experiences for young workers," said Labor Secretary Elaine L. Chao. "This follows upon our very successful YouthRules! public awareness campaign launched in May 2002 to educate teens, parents, educators, employers and the public about federal and state laws regarding young workers."

The rules incorporate into the regulations the provisions of two statutory amendments to the Fair Labor Standards Act that deal with driving and the operation of compactors and balers by teenage employees.

The first statutory change established criteria permitting 16- and 17-year-olds to load, but not operate or unload, certain waste-material baling and compacting equipment. The second statutory change delineated what limited on-the-job driving may be performed by qualified 17-year-olds.

The complete text of the rules, published in the Federal Register, can be found at: www.gpoaccess.gov/fr/index.html.

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NIST, Big Three automakers form partnership
Senior executives of the Commerce Department’s Technology Administration and the U.S. automotive industry established a partnership for research and policy analysis focused on improving the competitiveness of the U.S. automotive industry.

This partnership, the United States Alliance for Technology and Engineering for Automotive Manufacturing (U.S. A-TEAM), will bring together scientists and engineers from the department’s National Institute of Standards and Technology (NIST), DaimlerChrysler, Ford Motor Co. and General Motors.

The U.S. A-TEAM will focus its initial technical research efforts in three areas: digital/virtual tools, plant floor controllers and ergonomics.

“Technological innovation is an essential key to the manufacturing competitiveness of the U.S. automotive sector,” said Phillip J. Bond, Under Secretary of Commerce for Technology. “The U.S. A-TEAM brings together the world-class scientists and engineers of DaimlerChrysler, Ford, GM and the National Institute of Standards and Technology to exchange ideas, share knowledge, and engage in collaborative, pre-competitive research that will foster economic growth and the creation of high-wage jobs."

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UAW, Ford raise $225,000 for holiday season charity
United Auto Workers (UAW) Local 862 and Ford Motor Co. teamed up with Kentucky Truck Plant (KTP) and Louisville Assembly Plant (LAP) employees to continue an annual tradition of giving back to the community during the holiday season.

This year, employees at LAP and KTP spent more than $225,000 to provide a brighter Christmas season to more than 1,000 children from surrounding counties.

KTP employees held their fourth annual "Sharing the Blessing" program Dec. 17. Approximately 500 children were "adopted" by teams of employees.

Employees purchased gifts for the adopted children and invited them to the plant for a series of holiday parties. Activities included a magic show, Christmas caroling, a holiday meal, gifts and a visit from Santa. Meijers Department store made a generous $5,000 donation to purchase supplies and toys.

KTP employees spent approximately $125,000 this year to brighten the Christmas holiday for some very deserving children in the Louisville and Southern Indiana area.

LAP employees will sponsor the plant's annual "Adopt-A-Child" program. This year marks the 21st anniversary of this program; employees helped make a brighter holiday for more than 10,000 area children over the past two decades. This year's festivities will be held at LAP on Dec. 23.

Approximately 500 children will enjoy visits with employees on the plant floor, a holiday meal, a chance to sing their favorite Christmas carols on a karaoke machine and a show by local puppeteers.

LAP employees donated more than $100,000 this year to buy presents for children from nearby counties. Lear Seating, a supplier to the plant, also adopted 50 children for the holiday season.

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Conference Board's leading index climbs in November
The Conference Board's U.S. leading index increased 0.2 percent in November, following five consecutive declines.

The weakness in the leading indicators in recent months has become somewhat less widespread. It is too early to conclude the recent weakness was only a pause in the rising trend, but until now, the decline was not large enough and did not persist for long enough to signal an end to the current economic expansion.

Six of the 10 indicators that make up the leading index increased in November. The positive contributors, beginning with the largest positive contributor, were stock prices, real money supply, average weekly initial claims for unemployment insurance (inverted), index of consumer expectations, manufacturers’ new orders for nondefense capital goods, and manufacturers’ new orders for consumer goods and materials.

The negative contributors, beginning with the largest negative contributor, were vendor performance, average weekly manufacturing hours, building permits and interest rate spread.

The leading index now stands at 115.2 (1996=100). Based on revised data, this index decreased 0.4 percent in October and decreased 0.2 percent in September. During the six-month span through November, the leading index decreased 1.1 percent, with five out of 10 components advancing.

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Metalformers predict increase in business
Metalforming companies are expecting a slight upswing in current and future business conditions, according to the Dec. 1 Precision Metalforming Association (PMA) Business Conditions Report.

Conducted monthly, the report is an economic indicator for manufacturing, sampling 164 metalforming companies in the United States and Canada.

When asked whether they anticipated general economic activity would increase, decrease or remain the same over the next three months, 33 percent reported they expect business conditions to improve (up from 29 percent in November), 50 percent thought that activity would remain the same, and 17 percent said it would decrease (down from 19 percent).

Metalformers are also feeling more positive about expectations for incoming orders during the next three months, with 38 percent anticipating orders would increase (up from 35 percent), 42 percent predicting no change (compared to 32 percent last month), and 20 percent indicating orders would decrease over the next three months (down from 33 percent).

Only 29 percent of companies reported that current average daily shipping levels in December were above levels of three months ago (compared to 39 percent in November). This change may be attributed to a typical end-of-year slowdown. Forty-six percent reported no change in shipment levels (up from 34 percent), and 25 percent said their shipping levels decreased from average shipping levels of the past three months (compared to 27 percent).

The number of metalforming companies with a portion of their workforce on short time or layoff remained virtually the same in December. Eighteen percent reported they had workers on short time or layoff, compared to 19 percent in November.

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