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PMPA WEEKLY NEWS
February 3, 2022                            Vol. 26   Issue #5  
MANAGEMENT UPDATE CONFERENCE 2022

Limited rooms are available at the Westin Canal Place – If you need a hotel room, please contact Renee Merker at PMPA.

MANAGEMENT UPDATE CONFERENCE ATTENDANCE LIST 

See who’s coming:
ATTENDANCE LIST

There’s still time to register for the Conference – come and join us in New Orleans!

REGISTER NOW!

Update Conference Speaker Highlight: Ryan Pohl

Ryan Pohl is really excited to be presenting in New Orleans next week to share his process and strategies for “Building Talent on Purpose.”  

Ryan Pohl – Founder of Praeco Skills
Conference Questions?

Contact Renee Merker 
or Cate Smith at PMPA

 

PMPA’s 2021 December Business Trends Report and End-of-the-Year Summary Released

The PMPA December 2021 Business Trends Sales Index came in at 138, the highest December value ever, and unseasonably high. That 138 was 10 points (or 7.8 percent) higher than December 2020’s value, and 22.5 percent higher than the five- year average for the index for the month of December.  

While  December sales were down 6 points (or 4.1 percent) from November’s levels, they still contributed to a strong finish, resulting in the Calendar year average sales to be 141. This 141 exceeded our April 2021 prediction of 137 for the year. A surprisingly positive reading considering the events of the year- ongoing uncertainty due to Covid-19, tariffs, and supply chain difficulties.
 
If you are not currently participating in PMPA’s Monthly Business Trends reporting, you are missing a great peer benchmark and a tool to provide you with confidence for your business decisions. Contact Veronica Durden to sign up.

December 2021 Business Trends Report

 

Manufacturing Positivity

  • According to the Bureau of Economic Analysis, real Gross Domestic Product(GDP) increased at an annual rate of 6.9 percent in the fourth quarter of 2021 (table 1), according to the “advance” estimate released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 2.3 percent.

    LINK: https://www.bea.gov/sites/default/files/2022-01/gdp4q21_adv.pdf
     

  • The U.S. economy rebounded very strongly in 2021, with real GDP coming in at 5.7%. Compare that to the 3.4% decline in 2020. The current forecast for 2022 is ~4.3% growth. 
     
  • New Orders for Durable Goods fell 0.9% from a record $270.1 billion in November to $267.6 billion in December, according to the Advance report from the US Census. The decline in the headline number was due to decreases in aircraft and parts orders.  However, excluding transportation equipment, new durable goods orders increased 0.4% in December. New orders have jumped 12.7% over the past 12 months, or 11.9% with transportation equipment excluded.

    LINK: https://www.census.gov/economic-indicators/
    Click on “Advance Report Durable Goods”

 
This Week’s Speaking of Precision Podcast

Safety in the Precision Machining Industry in 2022
 

 

Members in the News…

 
AccuRounds and North Easton Machine Company win MMAP Grants

The Massachusetts Manufacturing Accelerate Program (MMAP), awarded over $2M to 13 manufacturers in Massachusetts. The grants were announced by Housing and Economic Development Secretary Mike Kennealy and were managed by the Center for Advanced Manufacturing at MassTech Collaborative (CAM).  The MMAP grants will be used by the Massachusetts manufacturers to invest in infrastructure, funding projects that create partnerships between the companies and manufacturing-focused organizations in the state.   PMPA members AccuRounds and North Easton Machine Company, Inc. were each awarded grants.

LINK:  Press Release

 
UPCOMING EVENTS

FEBRUARY 15 – 2PM (EST)
APPI Energy 101
APPI Energy reviews the services they provide, from electricity and natural gas procurement to their full suite of energy efficiency and sustainability solutions.
REGISTER NOW!

FEBRUARY 17 – 11AM (EST)
Verifyle Pro – Practical Uses for Security-Conscious PMPA Members

Learn how to put Verifyle’s ultra-secure messaging, document sharing and storage, and electronic signatures to use for your business. This proven and easy-to-use PMPA benefit will increase the security of your communications while raising your sense of awareness about what’s occurring on the receiving side of your communication. Get started at no-charge.
REGISTER NOW!

 

PMPA Reminders:

 
2022 Membership Dues Renewal

Our thanks to the companies who have renewed their PMPA membership for 2022 – we thank you for your trust in us to provide you with the information and resources to help your company adapt and thrive!

If you have not submitted your renewal…(Primary and Billing Contacts) can do so here: MEMBERSHIP RENEWAL

PMPA and YOU – Better Together!

2022 Hourly Wage Survey

There is still time to submit your 2022 Hourly Wage Survey. We are still accepting completed surveys.  Please email Veronica Durden at gro.apmp@nedrudv if you plan to participate but need more time.

Also remember the final report is only made available to those who participate, so please take the time to complete and submit it.

 

PMPA’s New Final Cut of the Week
 

The Final Cut of the Week video series is now underway!  This series is a two-to-three minute video sharing information you may have missed while you were busy making essential parts. Look for a new edition every Friday on PMPA’s LinkedIn and Twitter feeds.

Current videos and archives can be found on PMPA’s website

Be sure to connect to PMPA’s LinkedInpage or Twitteraccount so you don’t miss out on these weekly news clips.

 

PMPA AFFINITY PARTNERS

APPI Energy     Federated Insurance      Grainger      Mirabel      
Paperless Parts     PartnerShip     Verifyle

CONTACT PMPA STAFF

Editor:  Renee Merker – Director, Communications and Events

 
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Driving Improvements with Data: How a PMPA Member Saved $1.4M in 11 Months

 

Join Mitotec General Manager, Clinton Pouillie and Operations Manager, Bob Fourtounis as they discuss how Amper’s factory operating system helped them save $1.4M in 11 months. In this 30-minute session, you’ll learn how they used utilization and downtime data to drive improvement projects, best practices for operator adoption and get a sneak peak of the Amper system. Facilitated by Amper’s Director of Customer Success and Six Sigma Black Belt, Allison Heil, this is one conversation you don’t want to miss!

 

VIEW/DOWNLOAD

 

 

Verifyle Pro and Its Practical Uses For Security-Conscious PMPA Members

 

Learn how to put Verifyle’s ultra-secure messaging, document sharing and storage, and electronic signatures to use for your business. This proven and easy-to-use PMPA benefit will increase the security of your communications while raising your sense of awareness about what’s occurring on the receiving side of your communication. Get started at no-charge.

 

 

VIEW WEBINAR HERE

 

Presenter: Dana Shibley, Vice President

Dana Shibley has been involved with establishing and communicating frameworks for risk assessment and management since the beginning of his career. He began at Royal Bank of Canada where he worked with banks and corporations around the globe hedging financial interest rate risk and currency risk. Later, he wrestled with risk of a different flavor as he worked with technology companies in the protection and monetization of intellectual property, where risk-tradeoffs of potential and actual litigation around that intellectual property are constant strategic considerations.

Dana currently serves as Vice President for Verifyle, in Silicon Valley, which leverages patented encryption key management technology to isolate information risk at a granular level and stop the devastating bulk-access-vulnerability that threatens organizations and individuals today.

Dana holds an MBA from The Wharton School of the University of Pennsylvania.

MARKET INSIGHT – Machine Tool Manufacturing

NACIS 333517 | $8,414,504,000

by Joe Jackson

Marketing & Events Assistant, PMPA

Published February 1, 2022

The parts that our precision machining shops manufacture provide essential functionality to many farming, metalworking, milling, grinding, and drilling machines that we use in our industry to make the critical parts that make a difference.

 

Top 5 Companies

  1. Gleason Corporation., NY
  2. Hypertherm Inc., NH
  3. Dmg Mori USA Inc., IL
  4. Hardinge Inc., NY
  5. Trumpf Inc., CT

 

  • Our precision turned products manufacturing industry’s sales are 2.5 times that of the machine tool manufacturing industry.
  • The machine tool manufacturing industry is one of the least concentrated markets we serve. Of the 1,309 companies verified in this NAICS Code, the top 5 companies make up 26% sales in this industry.
  • At minimum, 14% of the sales in the machine tool manufacturing industry comes out of New York. The northeastern seaboard is a concentrated hub for machine tool manufacturing.
  • The machine tool manufacturing industry spends roughly $3 billion on Materials, Components, Supplies, Minerals and Machinery.
  • If precision turned products are only 1% of this industry’s spending, that would equate to $30 million in sales opportunity in NAICS 333517 for our precision machining shops.

 

Source: U.S. Census, NAICS.com

 

Download Magazine Article

 

 

 

Author

Joe Jackson

Marketing & Events Assistant, PMPA

Email: gro.apmp@noskcajj — Website: pmpa.org.

 

 

A New Year Resolution for Your Business

Need a New Year resolution that will help your business, productivity and hiring practices? Create or review your company’s mission statement, vision statement and core values. 

by Carli Kistler-Miller

Director of Programs & Marketing, PMPA

Published February 1, 2022

Show of hands…how many have made and dropped their New Year resolution at this point? I’ll put my hand down now so I can keep typing. It’s February, and the best of intentions can get lost in the reality of daily life. However, making a resolution to review your company’s mission, vision and core values can positively affect your daily business life, the productivity of your employees and make hiring easier.

Mission Statement

Mission statements are essential. They explain what you do and why you do it. Mission statements are the company’s purpose for existing. While it’s easy to think, “our mission is to make money,” that isn’t true. Money is a result of your mission. Why does your company exist? It’s a simple question that results with a simple statement after lots and lots of thought. Our mission at the Precision Machining Products Association (PMPA)is to lead progressive members to sustainable success (why we do it) with reliable and relevant information, resources, advocacy and networking opportunities (what we do). That statement drives every decision we make. Whether it is a new idea, deliverable or benefit, we ask ourselves if it fits our mission statement. A mission statement makes it easier for you and your employees to make decisions and help keep everyone focused. 

Vision Statement

A vision statement differs from a mission statement in that a vision statement is forward-thinking — a vision for the future — usually for the next three to five years. PMPA’s vision statement is to be the premier association that enables our members to adapt and thrive while advocating for the success of our industry. This is who we aim to be. This statement also drives decision-making. As visions change for a company, the statement should be updated, whereas a mission statement is generally unchanged unless the scope of the business has changed dramatically. 

Core Values

What are your company’s core values? The answer to this question can help with decision-making for hiring, strategy, training, company culture and overall employee behaviors. Does your company value integrity, teamwork, innovation, humility, customer commitment, inclusion, curiosity, continuous improvement or accountability? The list of values is long (I only mentioned a few), so it is important to take some time considering them. 
Once your core values have been determined, turn them into actionable values. For example, at PMPA, we value member service. An actionable value could be “We take care of our members with concierge service.” That core value tells members what to expect and staff exactly how to take care of members. Emails are answered quickly. Phone calls are answered by humans who genuinely want to help. PMPA staff knows they are allowed to take the time needed to handle member requests, concerns and needs. The value isn’t placed on how many members are served, but how the members are served. 

If your company has a mission statement, vision statement and core values, I encourage you to revisit them and make sure they reflect your current company. If you do not have these essential statements, it’s time to develop them. 

Download Magazine Article

 

 

Author

Carli Kistler-Miller, MBA has over 25 years of experience with
communications, event/meeting planning, marketing, writing and
operations. Email: gro.apmp@rellimc — Website: pmpa.org.

 

 

5-S: Ask a Toolmaker

A place for everything and everything in its place. A visit to Fischer Special Tooling during PMPA’s Mastery Program provided a glowing example of the 5-Ss: Sorting, Setting in order, Shine, Standardize and Sustain.

by Miles Free

Director of Industry Research and Technology, PMPA

Published February 1, 2022

One of the most despised statements that I heard when I first entered the workforce was “Do as I say. Not as I do.” Did I mention despised? What kind of leadership is that?

PMPA’s Mastery Program visited Fischer Special Tooling in Mentor, Ohio, to see the process by which their special tools come to life. Little did we know that we would also get a real-life, in-person demonstration of how 5-S, housekeeping, standard work and other cultural best practices knit together to expedite production of sophisticated tools (the toolmakers’ tolerances are typically one tenth of ours.) 

5-S: A Place for Everything and Everything in its Place.

And so much more. One of the biggest problems that we as manufacturers deal with daily is variation and variability. With variation comes differences, and with differences come opportunities to fail or fail to meet tolerances. Rejection! Using standard methods or standard work is one way to reduce variation and process variability. Many of us see standard work as the means of managing an overall process. But 5-S is standard work for ordering our workplaces. If our workplaces are standardized, that reduces the opportunity for unwanted variation.

5-S is more than just organizing our tools. It is a means to ensure that our tools are, in fact, suitable for use — clean and in good repair, calibrated if necessary and in the location where we expect them to be. When we need them, they’ll be there. This reduces nonproductive time, the waste of waiting and, by having the right tool at the right place at the right time, ensures that our adjustments and methods are standard across shifts, days and crews.
Reducing variability is key to holding tight tolerances. 5-S is an important part of that achievement. But 5-S is more than just Sorting (a place for everything) and Setting in order (and everything in its place), Shine, Standardize and Sustain are the final three “S’s” and the photo shows how the team at Fischer achieves these.

Shine. The photo above is straight off a smartphone — no editing. The yellow handles of the T wrenches at the bottom show some evidence of use, but are not grimy or covered with sludge. The pegboard must certainly be contacted 

many times a day by workers’ hands and yet appears clean and bright. Look how bright. How clean. Shine is captured honestly by the lens. This workplace is convicted of “shine.”

Standardize. This is the process by which everything stays in its place. In many shops, they paint a shadow in the shape of the tool to provide a visual reminder of what belongs in the space. At Fischer, they made visual photos showing which tool belongs where on the cart. This sets the standard and shows everyone — even a visitor from a trade association office — where to replace the item taken from the cart. Standards documented are standards held.

Sustain. Again, in this photo, a photo is being used to document the contents of the cart and the location of each item. If you look closely, you can see that there is also a photo on the other side of the cart — it shows which tools belong where on the other side of the cart. This visual means/record of what is on the cart and what belongs where provides a powerful reminder to all to replace any items removed where they belong. 

Magic. The clean, bare, light wood surface on the rolling tool drawer unit to the left of this photo is “magic” to my eyes. In my life experience, horizontal surfaces are provided as a place to put “stuff.” In many shops, we typically find shop rags — typically soiled — collections of partially or completely used up carbide inserts and a myriad of shop flotsam and jetsam that washes up on the nearest horizontal surface.

In this shop, a place for everything and everything in its place means that everything — even the random rags and tool inserts and other debris — are actually where they should be and achieving their own highest and best use by being located where they are supposed to be.

If you ever wondered how it is that the toolmakers that provide your tools are able to work to tolerances that are just a tenth of the ones that you struggle to hold all day in difficult material — well, the answer might be the magic of having clean, bright, horizontal uncluttered surfaces. Standard work for tool storage. And a culture of care that sustains these techniques.

 

Download Magazine Article

 

 

Author

Miles Free III is the PMPADirector of Industry Affairs with over 40 years of experience in the areas of manufacturing, quality, and steelmaking. He helps answer “How?, “With what?” and “Really?” Miles’ blog is at pmpaspeakingofprecision.com; email –  gro.apmp@eerfm; website – pmpa.org