american

www.amba.org
the

mold builder
Volume 23 No. 4

speak out
a message from our president
Steve Rotman

IN THIS ISSUE:
Business Forecast Results
H
oping that everyone that attended or exhibited at NPE had a great show. I
have to say that the “AMBA Night at the Ballpark” was a lot of fun! It was
great to renew old acquaintances, as well as to connect with some people that
I have not formally met! Everyone seemed to enjoy themselves, as well as get
some time to see what was happening within other member shops and areas. My hat is
off to Melissa, Sue, Shannon, and Kim for putting that event together! They continue
to keep trying out different networking opportunities and this was another success! Be
sure to check out the lead list that was compiled from the booth that AMBA had in the
show.

Members at NPE / MME 2009
Scholarship Recipients
AMBA News
Human Resources
We continue to feel and hear the effects of this economy in our membership. Dear
friends we have come to know and respect have fallen into precarious situations and
have not been able to recover. It’s a sad day to see friendly competitors fall on such hard
times. The AMBA has been looking hard at establishing value added webinars to try to
help educate the mold shop business owner of ways to protect yourselves from some of
the pitfalls of our industry and trade. While not a guarantee for success, the time is well
spent trying to equip oneself with the very latest knowledge and facts for the different
business scenarios that we continue to face. Please make sure that you check out the
webinars and their content to see if you really understand every aspect of business that
they cover! One positive thought from one of these webinars makes them well worth the
time, and you can’t beat the price!

The Fall Conference in D.C. is looming ever so close, and I look forward to seeing a great
turnout of concerned citizens and owners of small business. From the conversations I
have had with my local congressman, I think he is even questioning what is going on,
summer 2009

and does the public really care! I think I know a few mold company owners and em-
ployees that do!!

We have got to take the bull by the horns and be the voice of reason to these elected of-
ficials. We have the power of the vote as well as an entrepreneurial spirit that can drive
(continued on Pg 7)

2010 AMBA Annual Convention

Buena Vista Palace
Orlando, Florida
March 21-25, 2010
 “Progressive has brought us
innovations that
“No slide should beimprove
held the
performance of ”our tools.”
by anything else.
Steve Rotman—
President, Ameritech Die & Mold, Inc., Mooresville, North Carolina
Etiam dui orci — Venenatis Tortor

just because molds

do the same thing over,
not just clean rooms,
and over, and over,
but dirty rooms, too!
doesn’t mean we have to.

advance tooling standards

Repetition and molds just make sense. It’s what they’re supposed to do.
But that doesn’t mean that approaches in mold design should be repeated
infinitely. Instead, Progressive innovations, along with progressive minded
mold designers, combine to evolve and improve production tooling:

• Improve mold performance with SRT Slide Retainers, Needle Bearing

Locks, Collapsible Cores, Roller Pullers and exclusive mold cooling items

• Reduce mold cost with Keyed Ejectors, UniLifters, CamActions,

Expandable Cavities and a full line of industry standard items

• Achieve total mold control with MoldTrax and ProFile software and
CounterView cycle counters

Join those who are evolving their tooling practices of the past.
Questions? Call Tech Support at 1-800-269-6653 to discuss.

Visit www.procomps.com/demo
to see our components in action

2 AMBA
 Times are tough, there is no denying that. And in times
like this it is important that we take advantage of every
opportunity there is. The AMBA offers you so many The official publication of
competitive advantages. There are plenty of educational American Mold Builders Association
and networking opportunities. We are constantly offering
webinars focused on making your business more Leading the Future of U.S.
successful. Have you attended one? If not, log in! I know Mold Manufacturing
it can be hard to make time in your day, but what you will learn in just an
hour can be invaluable to your business.

Have you taken a look at the lead list we sent out from NPE? We gathered
leads at the show and sent them out to you. Contact these people! I know
members who have gotten work from our lead lists, and I was amazed to
hear that more often than not our members don’t contact these leads. Check
out Bill Tobin’s article in this issue to get more marketing ideas. He makes
some really good points!
3601 Algonquin Rd, Suite 304 • Rolling Meadows, IL 60008
Maybe I’m biased but I think that AMBA provides the best bang for your phone: 847.222.9402 •fax: 847.222.9437
buck. We are a strong, solid organization working toward helping the email: info@amba.org • website: www.amba.org
industry. Get involved! Come to our events, we are planning the annual
convention now! Put it on your calendar. Attend a webinar or chapter Officers and Board of Directors
meeting. Log on to the My AMBA section to get your lead lists.

Everything you need is here…be sure you are taking advantage of it! President
Steve Rotman, Ameritech Die & Mold, Inc.
Vice-President
Melissa Millhuff Mike Armbrust, Mako Mold Corporation
Executive Director Secretary
Shawn McGrew, Prodigy Mold & Tool
In this Issue: Treasurer
Summer Business Forecast Survey Results....................................................4
Point of View....................................................................................................6
Kent Hanson, H.S. Die & Engineering, Inc.
Plating, Coating of Molds = Longer Life.........................................................6 Executive Director
AMBA Exhibits at NPE / MME 2009..............................................................8 Melissa Millhuff
AMBA Member Mold Shops Turn Out for NPE / MME 2009.......................8 Association Legal Councel
NPE / MME 2009.............................................................................................9 Richard N. Mueller & Associates
AMBA’s Night at the Ballpark During NPE 2009.........................................11
AMBA Educational Scholarships for 2009....................................................11 Board of Directors
On Shore vs. Off Shore: Promotional Tactics To Get Your Business Back..14
Michael Armbrust, Mako Mold Corporation
Mold & Part Cost Estimating - Using Expert Software................................14
What Should You Do When a Customer Files for Bankruptcy?..................18 Shawn McGrew, Prodigy Mold & Tool
Steps to Take When Your Business Credit Line is Pulled.............................20 Kent Hanson, H.S. Die & Engineering, Inc.
AMBA News....................................................................................................21 Justin McPhee, Mold Craft
Member News................................................................................................22 Robert Earnhardt, Superior Tooling
AMBA Welcomes New Member.....................................................................25 Todd Finley, Commercial Tool & Die
Chapter News.................................................................................................25 Dan Glass, Strohwig Industries
Chapter Spotlight - Carolinas Chapter..........................................................27 Scott Harris, Harris Precision Mold
Partner News..................................................................................................28
News for Die Casters......................................................................................28
Roger Klouda. M.S.I. Mold Builders
Gibson Insurance Donna Pursell, Prestige Mold, Inc.
Obesity Related Health Costs............................................................29 Scott Phipps, United Tool & Mold
Plant Closing Checklist......................................................................29 Robert Vaughan, Dauntless Molds
Flood Insurance Facts........................................................................29 Mike Walter, MET Plastics
Human Resources
Did You Know...To Furlough or Not to Furlough?...........................31 AMBA Staff
Retaining Key Employeess.................................................................31
FACTA (Fair and Accurate Credit Transaction Act) – Get Ready!....32
Melissa Millhuff, Executive Director
A Dozen Ways to Prepare for Flu Absences......................................32 Sue Daniels, Member Services Coordinator
Cutting Hours & Furloughs – Food For Thought.............................33 Shannon Merrill, National Chapter Coordinator
Tax & Business Kim Cobb, Administrative Coordinator
Get a College Education for Free.......................................................33
A Tax Law That Actually Cuts Your Cost of Doing Business............33 The American Mold Builder is published four times annually in spring,
One Overlooked Business Tax Credit..................................................... 35 summer, fall and winter by the American Mold Builders Association.
Managing Business Net Operating Losses.......................................36 Editor: Melissa Millhuff; Assistant Editor: Sue Daniels; Contributing
IRS Proposes Change to Tax Treatment of Cell Phones........................ 36 Author: Clare Goldsberry; Layout & Design: Controlled Color, Inc.
Business Success Strategies phone 630/295-9210; Publishing: Independant Print Services,
Should You Sell Your Company Now.................................................38 phone 847-397-1701; Copy deadline: 25 days preceeding publication
Ten of the Worst Networking Myths................................................39 date. Contact AMBA at 847/222-9402 or email info@amba.org for
Business Tips – Free Faxing Through Email.....................................40 advertising information, article submission ideas, or a subscription.
The Birds Always Sing After the Rain................................................40
Classified Corner............................................................................................43 Opinions expressed in this publication may or may not reflect the views
Tech Corner....................................................................................................43 of the Association, and do not necessarily represent official positions or
Moldmaker’s Crossword................................................................................45 policies of the Association or its members.
Advertiser’s Index..........................................................................................46

AMBA 3
Summer Business Forecast Showing AMBA Business Forecast Survey Comparison 1997-2009
Current Business Conditions

Slight Improvement
60

50

The Summer Business Forecast of the AMBA shows slight

improvement over the Spring Forecast, but companies overall are

Respondent Percentage
40

not seeing the amount of work required to boost work hours or new
employees. The quarterly survey revealed that current business 30

conditions have improved over the past three months, with 5% of the
respondents saying that business is Excellent - up from just 2% in the 20

Spring survey. Current business conditions are Good for 23% of the
respondents (up from only 14% in the Spring). Fair business conditions 10

exist for 34% of the respondents, nearly the same as Spring’s survey,
and Poor for 26% (an improvement from 38% in the Spring survey). 0

ll

ll
ll

ll

Su ing

Sp r
g
l

ll

ll

Su ing

S r
Su ing

S r
20 5 S er
Su ing

20 6 S er
Sp ll

Sp ll

20 0 S ll

Sp ll

ll
19 ing

19 ing

19 ing

Su ing

20 ing

Sp r
20 ing

20 3 S er
Su ing

20 4 S er
Su ing

er

er
er

er
er

er
er

al

te

te

te
te

08 Fa

09 Fa
06 Fa

07 Fa
04 Fa

05 Fa
98 Fa

99 Fa

Fa

01 Fa

02 Fa

rin
t

m
m

m
t

t
m

m
m
Bad conditions exist for 12% of the respondents, up just one percentage

20 Win

20 Win
20 Win

20 Win
20 Win

20 Win

20 Win

20 Win

07 pr

08 pr
05 pr

r
03 pr

04 pr
r

00 pr

m
m

m
m

m
m

p
Sp

20 07

20 08
20 05

20 06
20 03

20 04
19 97

19 98

20 99

20 00

20 1

20 02
0

20

20
20

20
20

20
20

03

07

08

09
02
7

0
0

0
9

06
19

20

20
point from 11% in the Spring survey. Excellent Good Fair Poor Bad

Projections for business over the next three months show a lack of
optimism among respondents with only 28% of the respondents
expecting business to Increase Moderately, down from 33% in the
Spring survey. However, 51% expect business to Remain the Same,
compared to 35% in the Spring survey. Respondents expecting business
to Increase Substantially, fell slightly from 5% in the Spring survey to
4%. Fewer respondents expect business to Decrease Moderately (13%
vs. 17% in the Spring survey). There were even fewer respondents that
expect business to Decrease Substantially (4% in Summer 2009 vs.
10% Spring 2009), offering a good dose of optimism.
of respondents indicating some hiring activity compared to the 53%
reporting employment declines three months ago. The current average
number of shop employees actually increased by one to 21 for the
Summer survey. The current average number of design and engineering
employees remains at four for the second consecutive survey. Work-
week hours for shop employees also increased by one percentage
point to an average of 41 for the Summer survey; and for design and
engineering employees the hours also increased by one percentage point
to 42, back to where it was six months earlier.

When asked to compare their company’s current level of business with
that of three months ago, responses indicate some measure of stability:
Quoting activity is Up for 34% of the respondents, compared to 41%
of respondents in the previous survey; the Same for 37% compared to
30% in the Spring survey; and Down for 29%, the same as the Spring
survey. The downturn in quoting activity might just be “summer slump”
or it could be reflective of the many large OEMs that are closing plants
for a few weeks to do maintenance or slow production to help reduce
inventories. This would be particularly true in the automotive industry,
one of the many industries the AMBA member companies serve.
Shipments are Up for 25% of the respondents compared to 10% last
quarter, a significant jump indicating that work in progress was being
completed and shipped. Shipments stayed about the Same for 32% of
respondents compared to 30% in the Spring survey; and Down for 43%
of the respondents compared to 59% of the respondents in the Spring
survey, indicating some positive level of activity.
The number of respondents dropped considerably for this survey
(29% compared to 45% in the Spring survey), and we hope that is
due to the fact that everyone is getting really busy and has no time to
fill out a survey. Some of the comments from respondents still show
the overriding pessimism of many shops: “We are seeing a real tough
road ahead for the mold building industry, especially if the trend
towards anti-manufacturing/small business policies continues from our
government,” wrote one respondent.
Another said, “Economic conditions have hit an all-time low. Never in
our history have we had so many people laid off. Profitability is at an
all-time low . . . we are in survival mode.”
Yet, business is fairly good for another respondent who said, “Backlog
is being stretched out by customers, so even though we have a lot of
work in our shop, it seems as though delivery dates keep sliding further
out which makes it difficult to manage production capacity in a job shop
environment.” o

Backlog is Up for 24% of the respondents, a significant increase from

the 11% in the Spring survey; the Same for 24% (up slightly from the
23% in the Spring survey); and Down for 52%, much less than 66% in
the Spring 2009 survey. These responses would continue to indicate that
much of the work that was captured has been completed, and backlogs
are beginning to drop.
Profits in the Summer survey are Up for 11%, a nice increase from 7%
of the respondents to the Spring survey; the Same for 32% compared to
31% in the Spring 2009 survey; and Down for 58% of the respondents
compared to 63% three months ago, showing some improve pricing
conditions for mold companies, perhaps due to the continued fall-out of
mold companies reducing the number of competitors.
Employment is Up for 12% of the Summer respondents, compared
to 7% of the respondents to the Spring survey; the Same for 41%
(nearly the same as the 40% in the Spring survey); and Down for 47%
Why I Joined the AMBA:
“One of the big benefits of being an AMBA member is
networking with other shops. For a couple of years, we were
really busy and we were able to sub-contract work to other
AMBA member shops that had machine time. Now, we’re
on the other end. We have machine time on some of our
equipment and AMBA member shops in the area are sub-
contracting work to us. I’ve learned some new machining
processes and new technologies from networking with other
shops. This is an opportunity I wouldn’t have had without my
membership in the AMBA.”
Ed Siciliano, President, Circle Mold and Machine Co. Inc.,
Tallmadge, Ohio, and president of the AMBA Ohio Chapter.

4 AMBA
 AMBA Summer 2009 Business Forecast Survey Results

The AMBA Business Forecast Survey was developed to provide AMBA members with information
on the current business conditions and a projection of the upcoming months. The Summer 2009
Survey resulted a response rate of 29% from AMBA members. Business remains "Good"
for 23% of the respondents, and for 5% of the respondents it is "Excellent."

AMBA Members Current Business Projection of Business Over the Next 3

Conditions Months

Increase
23% 34% Excellent 51%
28% Substantially

Good Increase
Moderately
Fair
Remain the
Poor Same

Decrease
Bad
Moderately
4%
5% 26% Decrease
12% 13% Substantially
4%

Current Level of Business in Last 3 Months

60%

50%
Quoting

40% Shipments

Backlog
30%

Profits
20%
Employment

10%

0%
Up Same Down

Current Work-Week Hours Current Number Plant Employees

50 50

40 40
Plant Employees

30 30
Work Hours

20 41 42 20

21 4
10 10

0 0

Average Shop Hours Average Design & Engineering Hours

Average Shop Employees Average Design & Engineering Employees

AMBA 5
Point of View Plating, Coating of Molds = Longer Life
By: Todd Finley, Vice-President, Commercial Tool & Die Inc. and By: Clare Goldsberry
AMBA National Board Member
Plating and coating of molds is done for a
First of all, I would like to say thank you variety of reasons, but the primary reasons
for electing me to the AMBA National are for longer tool life and increased cycle
times. With the economic challenges that
Board of Directors. I am honored to serve
molders are facing, plating and coatings
the members of the AMBA, and I look
are in demand primarily for two reasons:
forward to doing my best to help our
longer tool life and improved lubricity for
industry thrive in the future. faster cycle times.
I have never been one to volunteer or get Gene Bianco, general manager of
involved in organizations. I have always Progress For Industry Inc., a company that
been focused and worked to improve our specializes in mold plating in Saegertown,
company, but at last year’s AMBA Fall PA, says they offer a proprietary nickel-
Conference something clicked. During based product called Dura Slick. It is a
the seminar I learned so much about dry lubricant coating that offers a low
government and our trade policies and how coefficient of friction, and is the most requested coating of all the
they affect our businesses. It really hit home that our elected officials company’s products. “Dura Slick is ideal for slides and inserts and
work for us and we have to hold them accountable for their actions. I helps in the release of plastic parts,” explains Bianco. “Plus, it prolongs
decided that it was time to get involved. tooling life, prevents wear and reduces cycle time in many cases.”

Manufacturing in general, and our industry in particular, is at a Bianco says that the
crossroads. We have witnessed some unprecedented events in the last company serves a
12 months in the automotive industry with two auto companies filing variety of industries
for bankruptcy and being bailed out by the government. I have had a including medical
front row seat to some of the action and I have been impressed by the component molds,
electrical connector
way the tooling industry has cooperated. The AMBA, NTMA, PMA,
tooling, automotive,
and CTMA were able to work together with a common voice explaining
consumer products, and
to the auto companies and Government Task Force the problems our closures, and the most
companies face with payment terms and trickle down of payments requested coating is
through a distressed supplier base. Dura Slick, primarily
because it contains no
My experience in the last 25 years has been that it is difficult to get two mold release.
shop owners to agree on anything. Yet, through the leadership of the
AMBA, we have been able to get four trade organizations representing Dura Slick also works
thousand of tool companies to forward an agenda with a common well on all types of tool
Progress For Industry’s Dura Slick on mold
voice. I have been fortunate to meet people like Craig Wiggins steels, as well as Mold
components only .0002 thickness to improve
of T&E Capital, Ron Truant, and Ron Overton, who have worked Max, beryllium, and
lubricity of the mold surface.
tirelessly to get our agenda and issues to center stage and keep all of the aluminum, and provides
organizations working toward the same goal. corrosion protection. To
be effective, the layer
We haven’t won the war. This is a marathon and it will take patience of Dura Slick doesn’t have to be thick. “We start plating at .00005 or
and endurance to persevere. What we do have is momentum. Change less, and can build up to .005, and we can control our plating to the
nearest .0001,” says Bianco. “Often the tooling we’re working with is
is in the air and the AMBA is leading the way. A trade organization’s
so precise that we have to keep the plating to within tenths so the parts
strength comes from the involvement of the membership and we need
remain conforming.”
all of you to get active. Melissa Millhuff, Steve Rotman, and the
AMBA Board of Directors need to hear from you so we can keep our While many molders are used to getting flash coating with hard chrome
association going in the right direction and representing your needs. The throughout the entire core/cavity, Bianco says Progress for Industry can
local chapters need your participation and support to make the meetings mask off the part and just plate the molding area. “That way the thicker
truly meaningful. plating deposit won’t affect the tolerances of the part, and it allows to
build up thicker deposits on areas that require that,” he adds.
I wish you all the best of luck and I look forward to seeing you at the
next conference or chapter meeting. o Bianco notes that much of the company’s work involves mold salvage.
“We can repair mis-machined areas by filling in holes or other errors
Why I Joined the AMBA: with a hard nickel plating, or if someone in the EDM process removes
too much stock, we can go in and build it up with our hard nickel and
“We joined AMBA because of the involvement with Congress they can go back in with the EDM,” he says.
on issues such as free trade, and their meetings with the U.S.
International Trade Commission. We wanted to be part of the Additionally, Bianco says that the Dura Slick product can be built up if
an engineering change is required because of a plastic resin change and
more local and national involvement in the issues that affect
the shrink is different, or different release properties are needed.
our industry.” 
Matt Metcalf, VP/Finance, Colonial Machine Co. , Kent, OH “It’s imperative that we have plating procedures for every steel we
plate,” explains Bianco. We do pre-treatment, we have a liquid hone
6 AMBA
facility and a glass bead facility. Sometimes that procedure has to be
done with older molds that have corrosion.”
The moldmaker’s role in plating -
When asked where along the supply chain the request for plating
of tooling is generally made, the platers say it’s from the molders.
However, many mold manufacturers are pro-active in plating their
tooling, particularly where they see situations which might cause
galling, wear or other problems with the mold during processing that
could shorten tool life or add to maintenance costs.
Wally Schaub, co-owner of Pro Mold & Die in Roselle, IL, says that
his company plates most of the molds it manufactures, and that “about
99% of the time it’s at our request.” Pro Mold plates to prevent galling
and wear, or if it involves a part with minimum draft where the molder
might have trouble getting the part off the core. “In those cases we’ll
tell the customer that it’s best to plate certain areas,” he explains.
Pro Mold typically nitrites the lifters and slides after they’re built to
prevent galling and wear. “It’s said that if there’s 10 points difference
in Rockwell hardness between the slides and steel you won’t have to
worry, but that’s not necessarily true,” Schaub says, “particularly on
straight surfaces that are running against each other. We can achieve
that hardness we need by nitriding these wear surfaces on the lifters and
slides and create a surface as hard as a knockout pin.”
We’ll usually suggest where there’s a minimum draft area, there should
be a super slick plating,” he says. “We automatically use it for our slides
and lifters, and figure this into the cost of the mold. We want the mold
to run successfully at the molder’s.” o
Excerpted from the May 2009 issue of Injection Molding Magazine.
Speak Out: A Message From Our President
(Continued from front cover)
our voices back into our communities to make the difference in the
next elections. This is a crucial time, and with all that is being changed
in government, we have the largest opportunity to have a solid voice
heard. We are certainly at a crossroads in the history of this nation, and
for the sake of ourselves, our children, and our grandchildren, we need
to make our difference known! PLEASE take the time to join us and
let’s make D.C. hear the issues of small business, and manufacturing as
a whole!
Hoping that the automotive restructuring is well on its way, and the
uncertainties that are crippling the very core of American values, has
finally shown itself to be true when this issue is published. It’s time for
Americans to wake up and understand what has made this country the
super power that it was! Hoping that we are a part of that “change”!
Keeping the Faith in manufacturing, and its absolute necessity for a
robust economy! o
Why I Joined the AMBA:
AMBA as an organization is the best of the best. Some of my
best business decisions have come about from discussions
with other AMBA members. The shared wisdom from AMBA
members allows you to step away from the “world is against
me” attitude, to one that “unity amongst ourselves” will allow
us to compete in the global market that confronts us today.
Scott Phipps, United Tool & Mold, Easley, SC

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AMBA 7
AMBA Exhibits at NPE / MME 2009 AMBA had lots of volunteers to help staff the booth during the five-day
show. Thanks to everyone who volunteered to spend time in the booth.
The AMBA national
office exhibited at this Those who helped were:
year’s NPE/ MME • Eric Kinter, Target Precision
2009 trade show in • John Martin, Mo-Tech
Chicago, IL on June • Andy Baker, Byrne Tool
22-26. Our goal while • Dave LaGrow, Maximum Mold
exhibiting at this show • Tim Peterson, Industrial Molds
was to promote AMBA • Dan Hartman, Industrial Molds
members and U.S. • Bill Plocinski, Tri-Par Die & Mold
mold manufacturing, • Cindy Humphreys, CS Tool & Eng
and to speak with • Mike Ramsey, YRC Transportation
show attendees about • Robert Vaughan, Dauntless Molds
AMBA membership and • Dave Martin, Accu-Mold Inc.
Dave Martin, of Accu-Mold, Inc., and Clare • Jim Zeigenhorn, Matrix Tooling
partnership. Show traffic
Goldsberry, Injection Molding Magazine • Don Mazurek, Chicago Mold & Eng.
was good in the new West
volunteer to help staff the AMBA Booth.
Hall of McCormick Place,
and a lead list of potential Thanks so much to all of you for your help during the show! o
mold buyers was
distributed to all AMBA
members after the show. AMBA Member Mold Shops Turn Out for
The AMBA Lit Rack
NPE / MME 2009
was also a big hit at
NPE. Many companies While the attendance numbers were smaller than previous NPEs, no one
who couldn’t be there in at the show was complaining. SPI reported that about 44,000 people
person purchased space registered to attend the show, some 20,000 fewer than in 2006, which
in the AMBA Lit Rack, meant the aisles weren’t as crowded, but those attending seemed to be
so that when prospective the serious buyers and decision makers.
mold buyers came by
they could peruse the Over 30 AMBA member companies exhibited at NPE / MME 2009.
rack, choose the literature Shannon Merrill, AMBA National Chapter Many of those were in the U.S. Mold Builders Pavilion exhibiting
of the companies that fit Coordinator, and Tim Peterson, Industrial
along with the AMBA in the new West Hall at McCormick, which saw
their needs, and find a Molds Group staff the AMBA booth at NPE/MME.
good supplier. A lot of very good traffic. Many mold manufacturers were running molds in the
people stopped by the various machinery makers’ booths at NPE as a way to showcase their
booth, and the Lit Rack was quite busy. We were able to help many capabilities and mold manufacturing expertise.
people who came by inquiring about a good moldmaker.
Wade Clark, president of Electroform Company Inc. (Rockford, IL) was
running his rotating stack mold in an Arburg machine when a glitch in
the robotics caused damage to a cavity. Luckily, Clark’s laser welder,
OR Laser Technologies, was in the North Hall with its laser welding
equipment. Clark took out the damaged component, ran it over to OR
Laser Technologies’ booth where they proceeded to weld the damage,
and Clark was back in business in no time! “It’s great to have all your
suppliers here too,” Clark said.

Booth sharing was common at the show this year. Maximum Mold and
M&M Polishing (Coloma, MI) shared booth space with PSG Plastic
Service Group Inc. (Stevensville, MI). Dave LaGrow, president of
Maximum Mold, said it worked out great. “We build our molds using
NPE Attendees find a moldmaker with the AMBA Literature Rack.
PSG’s manifold system, so it was an opportunity for NPE to be cost
effective for both companies,” said LaGrow. “We shared the expense,
shared the card swiper, the water, everything, which made it affordable
for both of us.” Maximum showcased its mold polishing expertise
using a test plate made from Industeel’s SP300, which is promoted by
Industeel as a better, more consistent alternative to P20. Maximum
Mold displayed the test plate, which had a cavity cut into it, as well as
different levels and logos to show that the SP300 could be polished to
an A2 diamond finish.

Some companies used NPE / MME as an opportunity to make major

announcements. JM Mold South Inc. is now JMMS Inc. (Easley, SC)
The announcement was made at the NPE 2009 trade show where
JMMS was exhibiting in the Moldmakers Pavilion. (See more in
AMBA staff member assists attendees with brochures from the AMBA Lit Rack.
Member News.) o

8 AMBA
 NPE / MME 2009

Additional AMBA members slated to

exhibit but not pictured:
A-1 Tool, Duro-Chrome, Dynamic International,
FPM Tooling & Automation, General Die & Eng.,
Omega Tool, Inc., and Precision Industries.

AMBA 9
10 AMBA
 AMBA’s Night at the Ballpark
During NPE 2009
With so many AMBA members coming into Chicago
for NPE 2009, AMBA held a Night at the Ballpark on
Tuesday, June 23rd. The group watched the Chicago
White Sox play against the Los Angeles Dodgers at
|U.S. Cellular Field.

Progressive Components provided transportation to

and from the ballpark via trolley and even gave out
baseball jerseys to wear! AMBA hosted a pre-game
tail-gating party with grilled hot dogs, chips, cookies
and refreshments. About 100 tickets were sold for this
group event and we nearly filled a full section on the
main level in the outfield. The weather was beautiful,
and even though the Dodgers beat the Chicago White
Sox, everyone had a great time!

AMBA Scholarship Committees Award Carolinas Chapter

$500 National Scholarship
Sixteen Educational Scholarships for 2009 Morgan Hancock, a biological & agricultural major at
North Carolina State University, whose father, Randy
The AMBA and its chapters awarded 16 scholarships to outstanding
Hancock is a toolmaker at Accuchrome Tool & Mold,
students whose parents work at AMBA member shops. Each year,
Asheboro, NC.
the AMBA accepts nominations from member shops for scholarship
recipients. This year the AMBA national office granted $10,000 in
educational scholarships, and to date has awarded over $200,000
since the program’s inception in 1991. The Annual Scholarship
Program demonstrates the AMBA commitment to education and $500 National Scholarship
offering members valuable benefits. Scholarship applications for next Corey Thompson, a Spanish major at Liberty
year will be available in January of 2010. University, whose father, Don Thompson is a
We congratulate all the recipients and wish them the best of luck! toolmaker at Richmond Tooling Inc. in Colonial
Heights, VA.
The 2009 scholarship awards were given as follows:

California Chapter
$1,000 National Scholarship
Chicago Chapter
Janda McGee, a psychology major at Victor Valley $1,000 National Scholarship
College, whose father, Jeffrey McGee works at Jason Foreman, a student at Elmhurst College, whose
Prestige Mold in Rancho Cucamonga, CA. father, Ed Foreman is a controller at Comet Die &
Engraving in Elmhurst, IL.

AMBA 11
 Indiana Chapter
$1,000 National Scholarship
Stephanie LeeAnn Westfall, a nursing major at Purdue
University, whose father Steven Westfall, is a foreman
at B&B Tool and Die, in Muncie, IN.

Minnesota Chapter
$1000 Chapter Scholarship
Jared Okerstrom, a precision moldmaking student at
St. Paul College.
Photo
Unavailable

Northern Ohio Chapter

$1,000 National Scholarship
Joseph V. Letta, a student at University of Akron,
whose father, Gary Letta is project manager at
Prospect Mold in Tallmadge, OH.

Southeast Michigan Chapter

$1,000 National Scholarship
Frederick N. Stevenson IV, an engineering student at
University of Michigan, whose father Frederick N.
Stevenson III, is a CNC programmer at Granby Mold
Millstar Tools take the HEAT — in Wixom, MI.

Increase Mold-Making Production.

With Millstar cutter strategies and high-speed machining solu-
tions mold makers produce more finished molds and dies in less Southwest Michigan Chapter
time. $500 National Scholarship
Millstar cutting tools provide mold makers: Stephanie Wagner, a student in culinary arts at Ivy
Tech, whose father, Tom Hanson, is a moldmaker at
• Decrease lead times with unmatched process and
product support
Hanson Mold in St. Joseph, MI.

• Industry leading accuracy for true contouring results

• Advanced tool geometry and coatings for simultane-
ous chip and heat removal
We’re ready to take the heat! Contact Millstar today. $500 National Scholarship
Jonathan Stelter, an agri-business student at
Call 1-877-645-5792 Southwestern Michigan College, whose mother,
(1-877-MILLSTAR) Laura Smith, is Sales Secretary at Hanson Mold in St.
Joseph, MI.
Don’t be fooled by imitations—look for
the Cole Crown on every insert.

$500 Chapter Scholarship

Michelle Rudlaff, an Elementary Education major
at Lake Michigan College, whose mother, DeAnne
Millstar World Headquarters
30200 Ryan Road • Warren, MI 48092 U.S.A.
Blakeman is an Administrative Assistant at Quality
Tel: (586) 573-9450 • Fax: (586) 573-9451
Mold & Engineering in Vernon, IN.
Email: info@millstar.com • www.millstar.com

12 AMBA
$500 Chapter Scholarship
Mitchell Dunham, a pre-med student at Valparaiso
University, whose father, John Young, is a journeyman
moldmaker at Mach Mold in Benton Harbor, MI.
$1,000 Chapter Scholarship
Ryan Matson, is studying to be a Physician’s Assistant
at Grand Valley State University, whose father John
Matson, is a moldmaker at H.S. Die & Engineering,
Grand Rapids, MI.

Western Michigan Chapter
$1,000 National Scholarship
Andrew Snow, a student at Ferris State University
studying Product Design Engineering Technology,
whose father Don Snow, is operations manager at CS
Tool & Engineering in Belmont, MI.
Wisconsin Chapter
$1,000 National Scholarship
Ryan Langenecker, studying to become an Orthopedic
doctor at Carthage College, whose father Harold
Langenecker, is Foreman at CDM Tool in Hartford,
WI.

National (Non-Chapter) Award

$1,000 National Scholarship
$2,000 Chapter Scholarship Micah Cermak, a student at Colorado Christian
University studying mathematics and business, whose
Jacob Naylor, an Engineering student at University father Steven Cermak, works at Dramco Tool Co. Inc.
of Michigan, whose father John Naylor is a Program in Grand Island, NE.
Manager at H.S. Die & Engineering in Grand Rapids,
MI.

For more information about the AMBA Education Scholarship Program

contact AMBA at 847.222.9402 or info@amba.org. o

Add On
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Quick Knockout Couplers Mold Components
5 Sizes Up to 5000 Ton Machines Slide Elements, Latch Systems, Etc.

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Pin Point, Valve Gate, Multi Gate, Locking Cylinders
Hot Edge Gate,
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Micro Precision
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AMBA
alba-ad-oct2008.indd 1 13
10/7/08 9:27:27 AM
On Shore vs. Off Shore: Promotional
Tactics To Get Your Business Back
By: Bill Tobin, WJT Associates
Moldmakers are still asking the question: “Why are we losing mold
construction business to off-shore companies?” The answer is simple:
Most mold builders proudly “stand on their reputation.” This in loosely
translated as:
• They will not or do not know how to market their services
• They rely on referrals or repeat business
• New business only comes in by way of a sales rep
What the off-shore mold manufacturers do that U.S. mold
manufacturers don’t:
1. Off-shore manufacturers bombard U.S. companies with
emails about their services, complete with photos and contact
information. You know what I’m talking about: your email inbox
is flooded with “Hi, I’m Sue from Lucky Moulds in Shanghai” as
you and a million other people receive emails promoting Lucky’s
services, and wanting to know if they can build your next mold.
How many of these do we get from U.S. mold companies? “Hi,
I’m Robert and I’d like to tell you why building molds in the USA
with XYZ Mold Co. can improve your bottom line.” Don’t send
out any emails, or only send emails to your existing customers,
and there’s very little chance you’ll get any new business from
any of them.
2. Off-shore manufacturers take out ads in all types of trade
magazines. In fact, the off-shore shops out-advertise U.S. mold
companies by almost 20 to 1! What is also interesting in this
scenario is: a) the off-shore companies don’t come to the U.S.
to visit these potential customers in person; b) their customers
in the U.S. rarely visit them; and c) it would seem that whatever
is posted in the email or on the company’s website is never
checked out, verified or confirmed. Face-to-face meetings with
customers and vendors are good!
So, what should U.S. molders and mold manufacturers be doing to
capture new business and meet the off-shore competition head-on?
1. Go to your local college and locate the School of Journalism or
Mass Communications, where students are making videos (news
casts, commercials, etc.) for their projects. Many schools have
outstanding AV departments for their students.
2. Talk with a professor and get a recommendation for students that
might be available and capable of doing a Virtual Plant Tour for
you as their semester project to help you market your company.
The cost will be a fraction of what a professional video company
will charge, but the quality will be just as good.
3. Work with them to make a Virtual Plant Tour video showing
the equipment and capabilities of your company, samples of
your work, your staff, how you work with customers and your
partnering abilities. You’ll never totally beat the off-shore
companies on price, but your marketing advantages are: service,
technical know-how, your ability to build U.S.-quality tooling on
a consistent basis and your willingness to stand behind your work
in the long term.
4. Once your student(s) has met with you and generated a script,
you’ll find it is easy to say everything in less than 30 minutes.
(The usual is about 15 minutes.)
14
5. Give the student(s) the artistic freedom to shoot this ‘mini-movie’
as they see fit. Remember, their grade will hinge on how well they
sell the message you want to the professors at the University.
At the end of the semester, they’ll get their grade and you’ll get a DVD
master for a very reasonable price. Utilize this video by incorporating it
into your website. Your web designer can do this quite easily, or again,
you can probably find a student at the local college who can do this for
you. You can also use this master to generate DVDs for less than $2
each (replicated, four-color printing of the disc, in a jewel case in very
low volume), to mail out to potential customers.
You say you don’t have a large data base of potential customers? Go
to the trade magazines (Injection Molding Magazine, Moldmaking
Technology, etc.) and purchase the use of a mailing list. Because most
trade magazine “qualify” their readership by job description, you can
specify who you want to receive your emails or postal mailings (tooling
engineers, product designers, purchasing managers, buyers, etc.). Also
look at the mailing lists for trade associations such as The Society of
Manufacturing Engineers, American Purchasing Association, American
Management Association.
And don’t forget about the qualified “lead lists” that the AMBA collects
for its members at every trade show at which they exhibit. These lists
are like gold if you follow up and do your mailings!
Also send out press releases referring to your website and your plant’s
virtual tour to every professional and trade publication you can find.
Whatever industry or market you serve, there’s a trade association and
magazines that serve those industries/markets.
U.S. mold manufacturers and molders don’t do enough to promote
themselves. The off-shore companies do! That’s why they continue to
get business and you struggle to find new customers. If you advertise
and promote your company, you’ll get business. If you don’t, you can’t
complain about the mold business going off-shore. o
Mold & Part Cost Estimating - Using
Expert Software
By: Jeff Lambing, JDL Technical Services and Gunter Fischer,
TransCat Kunststofftechnik
With all the advances in moldmaking over the years with high speed
machining, EDM, & CAE software, there is one area in moldmaking
that has not been very innovative – mold cost estimating. It has and
continues to be done much like it always has – with a well educated
guess or by self designed spreadsheets based on past experience and
expertise to get a reasonable method of accumulating the costs.
OEM’s (not only in the automotive sector) routinely ask for cost
breakdowns for the quotes they receive which can be very time
consuming, and while only a small percentage of these quotations
will become orders, every calculation must be detailed in order to be
competitive.
It is common for mold buyers to send dozens of RFQ’s to their mold
suppliers overloading those responsible for mold & part estimates. This
results in a lot of highly skilled workers using a greater part of their
time preparing quotations for jobs that have a slim chance of turning
into purchase orders.
Usually the estimating staff is the most experienced and highly skilled
personnel of the company resulting in huge costs to the company and a
AMBA
large loss of skillful help in the operations of the business. The quality
of their estimating represents a high share in the financial success
of a project. Because of the high costs and huge demands on the
estimating deptartment many companies will tend to try to reduce the
time per calculation which can lead to misjudgments and errors in the
calculation.

High Speed
Fig A Customizable calculation systems can be suitable for
Electrode Machining
moldmakers as well as mold buyers
• Latest Technology in CNC & Robotics
A solution for this situation is professional software that really supports • Experienced in Tight Tolerances
the complete calculation process for molds and parts. In the multitude • Successful Nationwide Shipping
of software packages on the market there is only a few that really can • SATISFACTION GUARANTEED
be classified as “expert software”. Many packages are solutions in
the environment of ERP systems and are database driven. In many
cases manufacturing hours still have to be estimated by the user.
Owner/Operator
The advantage of this kind of system is that many databases can be Dan Newell
implied and the calculation is fully integrated into the internal company Over 30 years experience
procedures.
“I do WHATEVER it takes”
Dan
Unlike a database solution, expert software solutions derive all costs
directly from the part description and the mold specifications such as
materials, standards, etc. The user first enters the geometry of the plastic www.graphitexpress.com
parts with parameters such as dimensions and special features like dan@graphitexpress.com 616-430-4540 cell
undercuts, surface complexities and finish.

Optionally it is possible to get support in editing this data with an

additional software package that analyzes the 3D model. This software
will be a mix between a powerful 3D viewer and complete 3D analysis
software including analysis features of typical CAD solutions. Quite
often another problem during the estimating process is that the staff is
only equipped with 3D viewers which are easy to use but have a lack of
additional and important features. The use of a complete CAD station is
not practical due to the high cost and may require a lot of user training.
An easy to use conventional 3D-viewer combined with powerful
analysis functions such as detection of dimensions (incl. volume,
surface & projected area), undercuts, openings/insert areas, wall
thickness, draft angles and other useful information that can export this
information into the calculation software is of benefit as a time saver.

Fig B Geometry information derived from 3D-data

Fig. B - 3D analysis software showing projected area and detected

undercuts (red/green). Part geometry information taken directly from
analysis software that can be exported directly into the geometry description
in the calculation software will minimize manual inputs and measurements.
In this example sizing for lifters and their complexity is provided.

AMBA 15
 Your AMBA Membership
Just Became More Valuable

If you are an AMBA member and your As an AMBA member, some of the
business accepts credit cards as a benefits that you will receive include:
form of payment, get ready to save ■ Credit Card Processing as low as 1.67%
some money. ■ Check Card Processing as low as 1.35%
■ NO Application Fee
AMBA has teamed with First American Payment
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credit card processing rates and fees. For nearly ■ FREE 24/7 online account access
20 years, First American has delivered world-class ■ Discounts on equipment
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merchant services to association members just like
you.

Call 1-888-733-4265 to learn more about the

AMBA/First American advantage, including additional
pricing information and a complete list of our in-house
products. As an AMBA member, you qualify for a
free analysis of your current monthly merchant
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16 AMBA

100 Throckmorton Street, Suite 1800, Fort Worth, TX 76102 • www.first-american.net • sales@first-american.net

Fig. D, The quoting procedure after the geometry is described.
In addition to the geometry of the part the calculation will require
information about mold specifications, the manufacturing environment
and of course the economical background. All of these influences and
more can be defined individually by the user as customizable defaults or
templates.
These templates will include detailed information such as steels and
heat treat methods used, runner system details, ejection types, water
line sizing & spacing, surcharges, special costs, various hourly rates
(man & machine), and many other details. It is also very important to be
able to consider the manufacturing equipment used for the calculation.
Different manufacturing philosophies can be influenced like whether
details are milled or EDM’ing is preferred as well as machine selection
among others. All the technical information and specifications of the
equipment are used to generate an estimate about the manufacturing
times needed. Costs for machining times will be influenced by the steel
type selected and hourly burden rates as per template being used. A
machine burden rate calculator is a built-in feature that is included in
some software. For this purpose flexible databases are needed to have
the opportunity to react to changing markets or regions. The result of
entering geometry and calculation information is at first a ballpark price
calculated completely automatically by the system (result shown in fig. E).
Fig. E Calculation Overview
Further tweaking of cost generated if necessary is easily done by
several section menus in which any changes are instantly summarized.
Comparative quotes can be done instantly between steel types, mold
types, # of cavities, different customer standards, or even by the country
or location of tool build.
From the calculation screen, detailed cost breakdown sheets can be
exported into spreadsheets showing summary pricing, components,
material, manufacturing times, machine times, and more. This
information can in turn be incorporated into an ERP system if required.
AMBA
In addition to the mold costs the part costs can also be calculated from
the part geometry and the mold features without additional inputs. The
press size is suggested automatically and the corresponding press and
burden rate is chosen. The cycle time is calculated automatically as
information like material, volume, wall thickness, etc is pulled from part
geometry descriptions. Additionally, costs for such things as additional
operations, procured parts, logistics, maintenance, scrap recycling,
etc can all be easily worked into the piece price. Production times &
costs, and material demands - per lot or annually are also provided
automatically as are overall program costs.
Further advantages of purchasing an expert quoting system
- plug and play – no time consuming development or
maintenance by company personnel is necessary
- programming work is done by experts
- same calculation platform for all users – mold makers
and mold buyers
- well structured and documented mold quotes in a short
time are possible
- completely customizable to your company’s or customers
unique requirements
- can create more available time for your most experienced
personnel to work on other more productive projects
As already shown in fig A an expert cost estimating system can be
successfully used by all kinds of companies that need quotations
for injection molds or injection molded parts. This includes large
automotive OEM’s all the way down to smaller tool shops. The results
attained by the system for each will not necessarily be the same as
the templates used will be customized to the unique characteristics of
each particular company. For example, if your company is very strong
in high speed milling machines, the technical data of these machines
used in the templates will show in your quoted hours and pricing due
to the efficiencies created by your use of these machines. This can
be attractive for companies as they can determine prices accurately
with proper benchmarking and thus know whether the target pricing
produced by OEM’s & other mold buyers can be met without risk of
taking on the work unprofitably.
Normally, most shops may only win 2-5% of the work they have bid on.
Using expert software for cost estimating will help ensure that these are
all profitable wins.
JDL Technical Services (Windsor, ON) – Software solutions for the
molding industry.www.JLDTech.ca (Quoting, Process Optimization &
Capacity Planning software) AMBA members qualify for discounts with
JDL products & services. o
Why I Joined the AMBA:
There are many worthwhile reasons to join the AMBA. We
joined back in 1973 as their 14th member! Participating in
both nationally sponsored events and those programs offered
by our local chapter has provided us with solid mold builder
relationships, as well as information and solutions that are
specific to the mold making industry. No other association
offers that! 
Francine Petrucci, B A Die Mold, Aurora, IL
17
 What Should You Do When a Customer
Files for Bankruptcy?
By: Susan Raef

On April 23, AMBA sponsored a webinar

titled “Protecting Your Company from
a GM Bankruptcy,” led by Patrick
McNally, Partner In Charge of Corporate
Finance Consulting for the consulting and
accounting firm Blackman Kallick, and
David Kane, an attorney with the Chicago
law firm of Meltzer, Purtill & Stelle.

Since McNally and Kane presented their

Portable Non-Destructive Hardness Testing advice to the webinar attendees both
Chrysler and General Motors filed for Pat McNally
Equotip Piccolo 2 Chapter 11 bankruptcy protection. GM’s
For real-time monitoring and user specific conversions. is the fourth-largest bankruptcy in U.S.
With additional software. history and the largest for an industrial
Greatest Accuracy and best Repetition Rate!
company. GM says it has $172.81
billion in debt and $82.29 billion in
Contact Proceq to find out how we can solve assets. If you’re selling directly to GM
your application needs. or Chrysler, you will face a certain set
of issues. If you’re selling to GM’s or
Proceq USA, Inc.
Chrysler’s suppliers that are not already in
117 Corporation Drive bankruptcy, your customer’s bankruptcy
Aliquippa, PA 15001
Tel: +1-724-512-0330
might come a little further down the road
Fax: +1-724-512-0331 and you’ll face a slightly different set of
info-usa@proceq.com
www.proceq.com
issues.
David Kane
... more than 50 years of know-how you can measure! Here are some highlights from that
webinar—including steps you should take
if you suspect a customer is in financial trouble. Knowing what to do
can help keep your company from going under in the wake of a major
customer’s bankruptcy.

Bankrupt … or out of business?

“When GM or another company files for bankruptcy, it doesn’t
necessarily mean it’s going out of business,” McNally explained.
“Chapter 11 bankruptcy reorganization is a chance for the company to
get some breathing space from its creditors, reorganize its operations,
restructure debts like union pension obligations and hopefully come out
a stronger company.”

Understanding creditor classes and their priority

“In a bankruptcy, the absolute priority rule separates a company’s
creditors into several classes in terms of their ranking to be paid,” said
Kane. “Everyone in a higher class must be paid in full before anyone in
the next class is paid.”

• Debtor in possession (DIP) and secured claims, that is, post-

petition lenders and pre-petition secured lenders, such as banks,
have the highest priority.
• Administrative claims have the next highest priority. They are
debts incurred after a company files bankruptcy, such as from
professional service providers such as attorneys and accountants
hired to run the bankruptcy as well as to suppliers.
• Pre-petition unsecured creditors are near the end of the line,
right before equity holders.

Improving your chances of getting paid

“The priority of bankruptcy claims is of utmost importance to all
creditors involved,” said Kane. “While everyone gets paid according to
the absolute priority rule, you might be able to improve your priority

18 AMBA
from unsecured trade debt to an administrative claim or a
secured claim.”
“If you’re an unsecured creditor, you’ll have to wait quite some time to
get a distribution, and you could collect only a few cents on the dollar,”
Kane cautioned. There are, however, some things you can do to elevate
your claim status up to a secured or administrative claim and maximize
your chances of getting paid.
Tool and die liens
Twenty-nine states recognize some form of tool and die maker’s lien.
“Most states’ lien acts are similar in that, to the extent that you have
unpaid invoices, you have a lien on the tools, mold or die as long as
it is in your possession,” said Kane. “In some instances, you might be
able to lien a tool even though it is in the customer’s possession. To the
extent you are unpaid, you might even be able to lien products produced
using that tooling,” McNally added.
McNally and Kane advised that the moment your invoices are unpaid
and the debtor is in default—even if you’re continuing to do business
with them—you can protect your rights by filing a lien under your
state’s tool and die lien act. ”Filing a lien will put you at a higher
priority for payment than you would be as an unsecured creditor,” said
McNally.
Can you reclaim products you’ve sold to a client who files
bankruptcy?
Sometimes. “Under certain circumstances, if you have shipped products
to the customer prior to the bankruptcy filing, and you file your claim
immediately after the customer declares bankruptcy, you may have
an elevated right either to payment or to get your items back,” said
McNally. “Doing this quickly can move you up in priority. This is
something you need to act on immediately after you receive notice of a
bankruptcy filing.”
Should you do business with a company in bankruptcy?
“Just because a customer goes into bankruptcy, it doesn’t mean you
should stop doing business with them,” McNally stated. ”Security is
much higher in dealing with a company post-petition than pre-petition.
“ Unsecured pre-bankruptcy, or pre-petition, debt is put on hold when
a company files for bankruptcy,” McNally explained. “Unsecured post-
petition debt—that is, debt such as trade payables incurred after the
bankruptcy filing—is given higher priority.”
Also, “Once a company declares bankruptcy, a judge, a U.S. trustee and
attorneys for various committees will be watching its activities closely,”
McNally explained. “If the business cannot pay its bills as they become
due, it will be given a short leash so it can’t dig the hole too much
deeper,”
How do preferences work in a bankruptcy?
To protect your rights in a bankruptcy, it’s important to understand how
preferences work. “The bankruptcy code is designed to treat similarly
situated creditors evenly,” said Kane. “And one of the ways it does this
is through the concept of preferences.
“To the extent that one creditor was paid more than another on its
debt, and a creditor received a preferred payment within 90 days of the
bankruptcy filing, the debtor has the opportunity to try to avoid that
payment and get it back into the estate,” Kane said.
“So if within 90 days before their filing bankruptcy, a customer pays
your bill in the ordinary course of doing business, that payment could
be considered a preference,” explained Kane. “The customer could sue
you to have that money returned to the estate.”
AMBA
What is your preference liability?
One of the first questions you should ask yourself when a customer
declares bankruptcy is, “What is my preference liability?” —that is,
how much has your customer paid you within 90 days before they filed
for bankruptcy? “Fortunately, there are legal defenses to preference
claims,” said Kane.
What should you do if you suspect a customer is in trouble?
• Collect aggressively now. “Even if the customer later files
bankruptcy, you might not be subject to a preference claim,”
said McNally. “Also, you might have defenses to a preference
claim and so might not have to return anything or be in a
position to negotiate a partial settlement. However, be aware
that collecting more aggressively than you typically have could
affect your defenses to a preference claim.”
• Don’t be afraid to ask for deposits, cash in advance or COD.
“Don’t blink,” McNally cautioned. “If you don’t value your
services, your customers won’t, either.”
• File lien notices. Filing a lien is a simple, low-cost and effective
way to elevate your payment status in a bankruptcy.
• Review accounts and send default notices. Create a paper
trail.
• Take advantage of legal remedies in your contract. This is no
longer an option once the customer files for bankruptcy.
What should you do after a customer files bankruptcy?
McNally and Kane advised taking these steps:
• Get practical business advice. Bankruptcy laws are complex.
Consult an attorney or consultant who specializes in bankruptcy
if the amount you are owed is large or you have received large
payments within the 90 days before your customer’s bankruptcy
filing. “If you’re a creditor of a company that files bankruptcy,
you will be receiving a lot of notices from the bankruptcy
court—some of which may affect your rights,” McNally
explained. “The bankruptcy may move along very quickly.
That’s why you may need help in protecting your rights.”
• Stop all collection efforts immediately. The “automatic stay”
in the bankruptcy code prevents creditors from attempting to
collect pre-petition debts once a bankruptcy is filed.
• Determine whether to stop or complete any work in
progress. How far along is the manufacturing process? Are
there any other outlets for products manufactured but not
shipped? Could you sell them to your customer’s customer?
• Determine your right to reclaim recently shipped orders.
Time is of the essence. Consult a bankruptcy attorney or
financial advisor to protect your rights under the law.
Have questions about how to maximize your chances of getting
paid if GM or a customer files bankruptcy? Contact corporate
finance consultant Patrick McNally at 312.980.2934 or pmcnally@
blackmankallick.com. Contact attorney David Kane at 312.461.4325 or
dkane@mpslaw.com. o
19
Steps to Take When Your Business injected into the business and a working capital line of credit to be used
for the future.
Credit Line is Pulled
Businesses should also consider approaching a community-based lender
By: Sam Thacker
that works under the Federal Community Development Loan Fund
program. These lenders are chartered to help create and keep jobs.
During periods of tight business credit, lenders are more likely to call
Though they usually have loan limits of $200,000 to $300,000, they are
a note payable on demand or even find borrowers in default for minor
often a good place to turn to if your business needs funds and a larger
technicalities. Business borrowers should have a backup plan ready in
commercial bank is not an option.
the event a bank pulls your line of credit.
Sam Thacker is a partner in Austin, Texas-based Business Finance
Business loans differ from consumer loans in many ways. Banks and
Solutions. o
other commercial lenders often have covenants requiring a business to
meet certain performance and liquidity benchmarks. They also typically
have financial reporting requirements. If you fail to meet one of these
loan agreement requirements, your lender may find you in default of
the loan. If that happens, the lender can require you to immediately
pay the full outstanding balance due. Many credit-line loans also have Dates To Remember
on-demand provisions that allow the lender to reduce the maximum
amount available with no notice or simply make the balance payable AMBA EVENTS
immediately. While these provisions may seem harsh, they are widely
used in lending agreements throughout the United States. AMBA Online Seminar - What Are Banks Looking for in
Today’s Economy?
If your bank calls in your loan or credit line, the first thing you should August 12, 2009 - Noon-1pm Central Time
do is take a deep breath and imagine you are on the other side of the Request an archived copy of this webinar.
banker’s desk. Lenders know that most borrowers can’t simply write a
check and pay their line of credit; otherwise they wouldn’t need one. AMBA Fall Conference - Fair Trade Starts With You!
Bankers have two things on their mind: to get your loan paid off and September 13-15, 2009, Washington D.C.
to keep your loan off of the bank’s past-due list. That said, lenders are See the Event Calendar at www.amba.org for registration
not likely to foreclose on the collateral unless you exhibit extraordinary information.
signs that your business is rapidly liquidating the collateral or otherwise
compromising your ability to repay. Most lenders will work with you to AMBA Annual Convention
find a way to pay off the loan. March 21-25, 2010, Orlando, FL.
Save these dates!  Registration information will be available early
One common technique lenders use when they terminate a business line Fall of 2009.
of credit is to set up some or all of the outstanding balance on a term
note and allow you to pay the note off over one to three years. This may
not be a good option for you if your business still needs a line of credit, INDUSTRY EVENTS
because unless the line of credit is unsecured, you won’t be able to
pledge the same collateral to another lender. Die/Mold and EDM Technology Expo
September 16-17 - Makino’s Technical Center,  Auburn Hills, MI
If your business sells to other businesses and carries accounts receivable Attendees of Makino’s 2009 Die Mold Expo will have the
on its books, the easiest and quickest way to replace the lost line of opportunity to gain industry leading advice and witness cutting
credit is to set up a financing arrangement with a factoring company. edge machining demonstrations from Makino and other prominent
Factoring companies are commercial finance firms that finance your companies of the die mold industry. Attendance is free. Register by
accounts receivable for a fee. Rates and terms vary significantly among calling Makino’s Auburn Hills Tech Center at (248) 232-6200 or
factoring companies, but if you shop right, this financing method can toll free 1-800-552-3288. 
be affordable, especially when measured against the cost of lost sales
opportunities. Plastec / Plastics USA
September 21 - 24 - Rosemont, IL
If you choose to use a factoring company, do your homework. Make
sure you read companies’ legal agreements before you agree to do Medical Design & Manufacturing Minneapolis / Mid Pack
business with them. Understand all the fees associated with factoring.
October 20 – 22 - Minneapolis, MN
Better factoring companies have easy-to-read agreements with few
additional costs. Many companies actually find using a factoring
company for their working capital is easier, albeit more expensive, than MassPlastics 2009
a bank line of credit. October 21 - 22, 2009 - Fitchburg, MA

If you or your business has equity in real estate, you may be able to PLASTEC West  2010
refinance the property and get cash out. Many states prohibit borrowers February 9-11, 2010 - Anaheim, CA
from using home equity for business purposes, so check with your
state first. Businesses with real estate equity can also use a combination PLASTEC South 2010
of two loan arrangements: a factoring line of credit with accounts April 28 - 29, 2010 - Charlotte, NC
receivable as collateral, and a real estate equity refinance for permanent
working capital. This dual loan arrangement allows for safety cash to be

20 AMBA
 AMBA News
AMBA Announces New National
Board Member
Justin McPhee, vice president of
Engineering for Mold Craft Inc. (Willernie,
MN) has agreed to fill out the remaining
term of Chris Jones, who resigned, on
the AMBA Board of Directors. The
National Board voted Justin onto the
Board to complete the term, which
expires March 2010. Justin says that he
believes it is important to support the mold
manufacturing industry both nationally
and locally. Justin has been very active in
the Minnesota Chapter and also serves as
the secretary of the Minnesota Chapter.
We appreciate Justin’s dedication to the AMBA and to the mold
manufacturing industry, and welcome him to the AMBA Board
of Directors.
AMBA
AMBA to Exhibit at Die/Mold and EDM
Technology Expo
September 16-17 - Makino’s Technical Center,  Auburn Hills, MI
Attendees of Makino’s 2009 Die Mold Expo will have the opportunity
to gain industry leading advice and witness cutting edge machining
demonstrations from Makino and other prominent companies of the die
mold industry. This Expo will include Speakers, Demonstrations and
select manufacturers and suppliers to exhibit.
2009 AMBA Fall Conference Sponsorship
Opportunities
The American Mold Builders Association is pleased to offer sponsorship
opportunities in conjunction with its 2009 annual conference at the:
Hyatt Regency Washington on Capitol Hill
Washington, D.C.
September 13–15, 2009
Details of event sponsorship:
Silver:
• Company profile included in registration packet. Registrants
will have a summary of your company’s capabilities and contact
information for reference after the meeting.
(Literature distribution is not permitted).
• Company name will be included on sponsorship banner to be
displayed during conference cocktail reception.
21
 Gold: (includes previous benefits)
• Company logo will be included in all AMBA email
announcements regarding conference.
• Complimentary banner ad through Fall Conference on www.
amba.org.
Platinum: (includes previous benefits)
• Company logo will be projected on wall during cocktail
reception.
• We will provide cocktail napkins bearing your company logo
on them at reception.
• Option to distribute company pens and paper on tables during
conference meetings.
If you want more detailed information or are interested in becoming
a sponsor, please use the reservation form to reserve your space or
contact Shannon Merrill at (847) 222-9402; email smerrill@amba.org.
Sponsorship Deadline: August 21, 2009. Space is limited and provided
on a first come, first serve basis.
What Are Banks Looking for in Today’s
Economy? Webinar Archive Available
The economy has been down for some time and financing is harder than
ever to get. A lack of capital and financing can severely impact your
business. Contrary to what you read in the papers, banks are lending.
But you need to know the types of financing that are available, what
to do make your company bankable and how to present your story to
lenders to maximize your chances for success. 
Patrick McNally of the consulting and accounting firm Blackman
Kallick and Michael Moran of American Chartered Bank provided
attendees to this webinar with practical advice to help you access the
financing your business needs. Contact Sue Daniels at 847-222-9402 or
email at sdaniels@amba.org for an archived copy of this webinar.
Save the Dates! AMBA Annual Convention
March 21-25, 2010, Orlando, Florida. Save these dates! Registration
information will be available early Fall of 2009 o
Member News
Armin Tool & Manufacturing Co., (South Elgin, IL) which serves
the closure, medical, personal care, packaging, electronic, military and
aerospace industries took the Honorable Mention in the Large Shop
category for MoldMaking Technology’s Leadtime Leader Award. The
company’s business philosophy is quality, price, delivery and customer
service, and the proof of its success is in the company’s average
leadtime of 16 weeks. With 65 employees, Armin specializes in the
design and build of multi-cavity, two-color, two-material, unscrewing,
stack and liquid silicone injection molds.
Byrne Tool & Die Inc., (Rockford, MI) a family-owned company
with 15 employees that turn out molds in an average of five-to-six
weeks, was the winner in the Small Shop category of MoldMaking
Technology’s Leadtime Leader Award was. The company specializes in
product development, mold design and build, as well as mold repair. It
serves the automotive, furniture, medical and office furniture markets.
Byrne Tool uses a variety of lean manufacturing strategies like Kanban,
SMED setup reduction, 5S and value stream mapping to improve
leadtimes by 25% over the past several years.
Commercial Tool & Die Inc. (Comstock Park, MI) for the second
consecutive year, won MoldMaking Technology’s Leadtime Leader
22
Award in the Large Shop category. The company achieved this by
keeping its sales consistent and maintaining its workforce through the
continued production of high quality injection molds primarily for
the appliance, furniture and automotive industries. The company also
emphasizes customer service and continuous improvement initiatives.
Commercial Tool builds a range of specialty injection molds including
gas-assist, compression and two-shot injection molds, in an average
time period of 11.9 weeks.
Industrial Molds Group’s True-Cut Wire EDM Division (Rockford,
IL) was awarded “Best of Rockford 2009” in the Foundry & Plastic
Machinery Forms category. Each year, The Best of Rockford Award
Program recognizes outstanding local businesses that it believes have
achieved exceptional marketing success in their local community
and business category. These are local companies that enhance the
positive image of small business through service to their customers and
community. Winners are determined based on the information gathered
both internally and data provided by third parties.
Also, to strengthen its high-speed machining operations, Industrial
Molds Group has invested more than $1 million in three new high-
speed machining centers. Industrial Molds Group is a high-end mold
engineering and manufacturing company specializing in mid-sized,
mechanically complex molds for fluid management systems, fuel and
engine components and consumer products for a variety of industries.
Tim Peterson, vice president of Industrial Molds Group, states,
“Given the type of molds we build – the mechanically complex
tooling that requires innovative, accurate solutions for our customers
– these additions to our high-speed operations will provide improved
capabilities for faster delivery times. Industrial Molds believe that
this technology investment in our future is also an investment in our
customers’ futures as well, and in the success of manufacturing.”
JM MoldSouth (Easley, SC) This mold and diemaker has shortened
its name to JMMS following the transfer of company ownership from
its founder and president, David M. Bowers, to his son, David M.
Bowers II (CEO) and daughter, Michelle Powell (COO). The brother/
sister team plan on retooling the business by implementing new
marketing strategies. “We wanted to create a new brand—one that
acknowledges our heritage, but communicates our next-generation
approach to full-service tooling,” said David Bowers II. “Michelle and
I learned the fundamentals from our father and now we’re applying
those lessons, with investments in equipment and training, a global view
of manufacturing, and an insistence on best practices throughout the
organization.
“The economy’s changing and it’s going to be hard on companies that
don’t have the financial resources and capacity to evolve. We have both,
so we’re investing across the board to do more business with companies
that build their brands on high-quality manufacturing.” To prepare for
the transition, David M. Bowers II said that the company worked with
a business consultant to develop a strategic business analysis and study
management’s feelings about the business as it was currently. “It was an
eye-opener,” said Bowers.
As a result, JMMS developed a five-year plan including a new vision,
mission statement, and a plan to redesign management for the next
generation. “We now have a strategic development plan that will carry
us forward into the future,” said Bowers. The company has a new logo
and website to announce the name and management change. While the
change is good, Bowers said, “We plan on keeping what we’ve learned
over the years that made us what we are today.”
AMBA
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AMBA 23
 JMMS has invested in new equipment recently including a new CNC
finishing machine and new horizontal milling machine. The company
has 30 employees and specializes in molds of all types from prototypes
to production molds.

JMMS has also installed a new OKK HM1250S Horizontal

Machining Center in its Easley plant.The company now runs six OKK
machines. The new OKK machining center can produce gigantic cores
and cavities, with an 11,000 lb. per side capacity, making it well-suited
for tooling for car hoods, fenders, doors and dashboards.According
to Mike Link, regional manager for Jeffrey Manufacturing Solutions,
which sold the OKK machine and handled the installation, the new
machining center produces super-accurate, rigid components, with the
advantages of a smaller footprint and “lights-out” manufacturing. 

“This investment is part of our next generation tooling strategy for

continuing growth and industry leadership,” said David M. Bowers
II, JMMS Chief Executive Officer. “We’re combining investments in
design, manufacturing here and with our Asian partners, and mold and
die services for true full-service tooling for our customers.” 

Mach Mold Inc. (Benton Harbor,MI), president Bill Mach was

New machines to 60” x 28” travels
• Graphite Electrodes
• Hard Inserts
• Micro-Machining
• Rapid Prototypes
• Medical and Electronics
• Simultaneous 4 and “It’s confirmation that AMBA member shops are the best-of-the-best
5-axis contouring
High Speed Milling
Creative Evolution CNC
presented with the Society of Plastics Engineers Mold Builder of the
Year Award. This marked the second award for Mach, who was also
presented with the
AMBA’s Mold
Builder of the Year
award on March 5,
2009. Commenting
on his SPE award,
Mach said, “It’s
our commitment
to excellence
that translates to
outstanding customer
service, molds and
fixtures that provide
exceptional value for SPE Mold Making & Mold Design Division
our customers that Chairman, Doug Hugo, Vicki Mach, and Bill
Mach, SPE Mold Builder of the Year
make Mach Mold a
winning team.”
in the mold manufacturing industry,” said AMBA Executive Director,
Melissa Millhuff. “The goal of the AMBA is to provide education,
technology information, marketing and advertising, and Best Practices
to all of our members in an effort to make each and every AMBA
member company a winner in its own right!”

Mold Craft Inc.

Control retrofits (Willernie, MN)
• Fast
unveiled an
• Accurate innovative concept
• Reliable in mold design called
• Quality service Quick Change, at
the recent NPE 2009
• On-site training for
show in Chicago.
your applications The Quick Change
concept was designed
to allow for flexible
Creative Evolution
981 Lunt Ave • Schaumburg, IL 60193
productivity at
reduced costs. The
design innovation
Phone 847.301.0700 provides faster production changeovers, thereby reducing press
http://www.creat.com downtime and at a fraction of the cost of multiple molds.

24 AMBA
“The custom design can hold single or multiple cavities offering a highly skilled workers that our industry is known for. While we look
five-minute change-out of the cavity set,” stated Justin McPhee, vice to provide the best technologies on the market, we also know that we
president of Engineering at Mold Craft. “This is where the real benefits are only as good as our employees.” For more information, visit www.
of adaptability and flexibility are realized.” utminc.com. o

McPhee explained that with Quick Change, the mold base stays in the
press and the Quick Change Cavity Set or “dummy plates” are quickly AMBA Welcomes New Member
and easily changed out for molding of different and unique parts.
“This combination of reduced production down time, reduced labor for Colonial Mold Inc., (Clinton Township, MI)
changeover and reduced tooling investments will result in significantly The AMBA wants to welcome new member company, Colonial Mold
improved profits for our customers,” he added. Inc. Company president Richard Roberts said the company, which
was founded in 1985, produces prototype and production molds, dies
The Quick Change mold base is fully hardened stainless steel with and secondary equipment for the automotive, household products and
water cooling in each plate. The proprietary two-stage ejector system is hardware industries. The company operates from an 18,000-square-foot
activated through the standard ejector cycle to strip and eject the parts facility and has 13 employees. Roberts said that the reason he joined
and runners. All components are fully hardened including gibs and wear AMBA is “To unite with other U.S. moldmakers.” We’re happy to have
plates for long-lasting production. The runner shut-off feature allows Colonial Mold on board! o
one or two Quick Change inserts to run simultaneously. The Quick
Change Cavity Set is also fully hardened, water cooled, 420 stainless
steel with self contained ejector system. The precision parting line guide Chapter News
pins and bushings reduce “A” side to “B” side mismatch within .0002”.
To complement our two-stage, stripper system, Mold Craft also offers Minnesota Chapter
a Quick Change System with standard ejection built with the same The chapter held their annual Golf Outing on July 23 at the Oak Glen
production quality. Golf Course in Stillwater, with nearly 100 registered attendees. This
annual event is held to fund the Minnesota Chapter Scholarship fund.
Applications that would be ideal for Quick Change include short
production runs of multiple parts where the Quick Change Cavity Sets SW Michigan Chapter
can be quickly and easily replaced. This concept will allow for gained The Southwestern Michigan Chapter of the American Mold Builders
production time, less downtime, lower labor costs and reduced tooling Association celebrated their annual Graduation and Scholarship
costs. “Mold Craft has about a hundred Quick Change Cavity Sets Recognition Night at Papa Vino’s on May 14, 2009.
working in the field,” said Tim Bartz, vice president of Mold Craft.
“The two-stage, Quick Change Base will cost $33,000 which includes The graduate Jason
a prehard stainless dummy block for single cavity operation. The actual Coleman (Standard
Quick Change Cavity Sets are reasonably priced by quotation of cavity Tool & Die in
detail.” Stevensville)
was recognized
Pelco Tool & Mold in Glendale Heights, IL, announced that it has
with an AMBA
received an exclusive license for Husky Injection Molding Systems
Ltd.’s patented technology for rotating ratchet rings (RRR) in North
Certificate of
America. Pelco will take over production of molds using the RRR Completion in the
technology. The company has been building molds using the RRR different specialties
technology for about 12 years, and Husky will continue to supply the of Journeyman
mold bases for the RRR tools. In RRR technology, the mold core is Moldmaking
SW Michigan Chapter president Bill Mach and
stationary while the finished part is unscrewed from the mold, which requirements. Journeyman Moldmaker Graduate, Jason Coleman
means there is much less wear on the mold. Other systems for molding It requires a (Standard Tool & Die in Stevensville, MI)
threaded parts have a mobile core. minimum of 8,000
hours on the job
United Tool & Mold, Inc. (Easley, SC) has announced plans for
a significant expansion of its Duncan, SC facility. This expansion
training in addition
will also include the addition of an estimated 20 highly-skilled jobs to 576 hours of
in the mold-making industry, according to a press release issued by related college
the company. These jobs will support the growing demands of the classes at Lake
automotive, consumer products/appliances, trucking, and medical Michigan College
industries markets.  to graduate.

Not only will the announced expansion increase the existing facility Also honored were
by more than 12,900 square feet, it will also allow UTM to add more the winners of the
advanced equipment, all under the use of a 55 ton crane. This additional annual $500 AMBA
space and equipment will allow UTM to meet the growing needs of Scholarships. The SW Michigan Scholarship winners: Stephanie
customer compressed lead times, providing turn-around times that keep winners this year Wagner, Jonathan Stelter, Michelle Rudlaff and
customers in production. “This expansion will allow us the opportunity were: Mitchell Dunham.
to provide expanded service capabilities to our customers.” said Scott
Phipps, president of United Tool & Mold, Inc. “As we continue to move Stephanie Wagner, whose father, Tom Wagner, works at Hanson Mold
towards our ultimate goal of a one-stop mold shop, we know this is only in St. Joseph. Stephanie is currently attending Ivy Tech and will be
the first step. The additional floor space will allow us to hire more of the returning there in the fall. She is enrolled in the Culinary Arts Program.

AMBA 25
Stephanie also won an AMBA scholarship in 2007. This year with the
support of many
Jonathan Stelter, whose mother, Laura Smith, works at Hanson Mold in generous vendors,
St. Joseph. Jonathan is a senior at Bridgman High School and will be the chapter was
attending Southwestern Michigan College in the fall. His major will be able to award more
Agri-Business. scholarships, and only
the most exceptional
Michelle Rudlaff, whose mother, DeAnn Blakeman, works at Quality candidates were
Mold & Engineering in Baroda. Michelle is currently attending awarded.
Lake Michigan College and will return there in the fall. Her major is
Elementary Education. Michelle also won an AMBA scholarship in Chapter president Kent
2007. Hanson, challenged WMI Chapter scholarship winners (l. to r.): Ryan
the winners with Matson, Andrew Snow, Jacob Naylor, and Andrea
Mitchell Dunham, whose father, John Young, works at Mach Mold in the importance of Koster.
Benton Harbor. Mitchell is a senior at St. Joseph High School and will be applying the values
attending Valparaiso University in the fall. His major will be Pre-Med. they have formed from religion, family, school, community and charity
opportunities to their future endeavors. In announcing the scholarship
West Michigan Chapter winners, Kent shared some of the comments and praises they had
The chapter held an received in their recommendation letters: diligent, leader, role model,
Awards Banquet / mentor, motivated, professional, courteous, always prepared, embracing
Meeting on May 12 educational opportunities. The winners are already demonstrating the
in Grand Rapids. importance of giving back to their community while juggling school
They honored their and work. The scholarship winners were reminded of the importance
scholarship winners of choosing good friends with integrity and like values who will
and their parents at support them, counsel them, and share in their successes and struggles
their annual scholarship throughout life. A timeless message for young and old alike.
dinner. The scholarship
committee spent The West Michigan chapter is also hosting their second annual Golf
many hours reviewing Outing on Friday, September 18, at Thornapple Pointe in Grand Rapids,
applications, a hard task West Michigan Chapter president Kent Hanson, MI. All proceeds will benefit the Chapter Scholarship Fund. o
as all the candidates presents scholarship award at Annual Chapter
were outstanding. presentation dinner and meeting.

26 AMBA
Chapter Spotlight - Carolinas Chapter
The Carolina’s chapter is led by a great
group of mold manufacturers in North
Carolina and South Carolina. The chapter
Visit us
at booth Hot Runner
president is Scott Phipps of United Tool
& Mold Inc. (Easley, SC) who is also on
#77032
Systems…
the AMBA National Board of Directors; I Designed For Your Application
Vice President is David Meyers of Carson
Tool (Kennesaw, GA) and Secretary &
Treasurer is Steve Rotman of Ameritech Direct-FloTM Gold Series Hot Runners
Die & Mold (Mooresville, NC), who also I Opti-Flo® Technology
serves as the AMBA National President. I Unitized and Integrated Systems
I Back-To-Back Valve Gate Systems
The Carolina’s chapter currently has I 14 Gating Options
12 members – which includes a few members from surrounding I Thermal, Valve and Multi Tip
states that do not have a chapter – is active both politically and with Configurations
promoting moldmaking as a career through apprenticeship programs.
Steve Rotman has given several presentations on the program to Applications Expertise
which his company belongs, Apprenticeship 2000. Recently he gave a
presentation for Apprenticeship 2000 for Robbie Earnhardt, of Superior I Automotive
Tooling who is part of a Business Alliance group that includes a number I Closures / Packaging
of area businesses, that included Wakefield High School in Wake Forest I Medical Device
and the North Carolina Department of Labor. I Appliance
I Technical
The chapter meets semi-regularly, and tries to plan events that are
pertinent to their businesses. They met one evening after the Eastec
trade show, at which some members exhibited, and had a round- Control Technology
table discussion on what the AMBA has been doing with respect to I Temperature
representing AMBA members in government affairs, as well as the
I Valve Gate
current economic conditions.
I Sequential
To promote manufacturing in the U.S., Steve Rotman and Robbie
Earnhardt had a table at the North Carolina SPI meeting in Raleigh,
where they met with legislators and tried to show them the value of
moldmaking within the arena of manufacturing of the many products
that were being showcased at the event.

With the level of activity from the Carolinas chapter both locally and
at the National AMBA level, it’s easy to see why this is a successful
chapter. For more information on joining AMBA and becoming a part
of the Carolinas chapter, contact Steve Rotman at srotman@amdiemold.
com. o

Congratulations to Byrne Tool

The winner of our early-registration drawing
for the AMBA Fall Conference, was Byrne
INCOE® Performance
Tool & Die, of Rockford, MI. They registered
...Right From The Start
...
for the Fall Conference before July 15th, and
were selected as the drawing winner. They GLOBAL SALES,
SERVICE & SUPPORT
will receive a complimentary quarter of 1740 East Maple Road
Troy, MI 48083
AMBA membership dues! Congratulations! T: +1 (248) 616-0220
F: +1 (248) 616-0225
E: info@incoe.com
www.incoe.com

AMBA 27
Partner News
OMNI Mold Systems™ LLC, (Lisbon, CT) and Target Precision,
(Harmonsburg, PA) announce partnership. The companies have formed
a working partnership, in which OMNI Mold Systems™ has moved its
manufacturing to Target Precision’s plant in Harmonsburg, PA. Target
Precision will become the manufacturer of all OMNI Mold Systems™
standard mold bases. OMNI Mold Systems will continue to stock and
ship all of its standard products from their Ellington CT warehouse.
“We have worked with Target on various projects for a number of years,
and are very excited about this partnership” said Chris Matarazzo,
OMNI Mold Systems’ President of Operations. “Their quality and
attention to detail is outstanding, and that fits exactly with what OMNI
customers have come to expect over the years” he continued.
The new partnership will allow Target Precision to offer its customers
all of OMNI Mold Systems’ standard products through their sales team
and OMNI Mold Systems™ will now be able to offer its customers,
complete custom mold base services through its sales team. “This
partnership is going to offer both companies’ customers the best of two
important choices” says Dave LaFleche, President of Sales at OMNI.
“Both companies will now be able to offer everything, from off the shelf
standardized products to very intricate and complex custom designed
mold bases” he said. “We are very excited to finally offer a true custom
mold base service to our valued customers” he went on. “We have
always been somewhat lacking in our ability to be competitive, when
it came to custom mold bases, but now we are proud to say that we can
service all of our customer’s needs with no cost to quality”. o
28
News for Die Casters
$20 20th Anniversary Book Sale
Visit www.diecasting.org/publications now for drastically reduced
publications. Over 30 books have had their prices cut to only $20 in
celebration of NADCA’s 20th Anniversary. All discounts will appear
at checkout. Membership discounts do not apply. This offer is valid
through September 8th.
Corporate Member Dues Cut in Half
The NADCA Board of Governors has unanimously decided to reduce
Corporate Member dues by 50%. This discount is applicable not only
for current corporate members, but also for those companies interested
in joining NADCA as a Corporate Member.
NADCA has been actively responding to the economy and the affects
on its member base since the last quarter of 2008. In December,
the Board announced the suspension of the marketing and research
and development assessments, for both corporate and individual
memberships. This translated to more than 10% savings on dues, with
no changes made to the benefits of membership.
With the Board’s most recent decision to cut corporate dues for 2009
by half, NADCA is asserting additional efforts to be responsive to
what the industry is experiencing. For any questions on membership
and dues, please contact NADCA’s membership department directly at
847.808.3164. o
AMBA

Obesity Related Health Costs
Current and expected future healthcare costs are escalating at an
alarming rate in the United States, fueled in part by the problem of
overweight and obesity. Medical issues caused by employees being
overweight and obese are preventable, and some of the associated costs
are avoidable. Employers can take action to reduce obesity-related
costs, including lost productivity and increased absence from disability.
Such action includes:
• Share health information with employees and dependents
to promote better awareness of health risks and encourage
consumerism in healthcare decision-making.
• Provide a range of incentives to encourage wellness and healthy
lifestyle behaviors.
• Improve the work environment to foster healthier habits.
At least 8% of private employer medical claims are attributable to
health issues caused by excess weight. Medical costs are roughly
60% of the total employer-paid costs attributable to overweight and
obesity; the remaining 40% is due to paid sick leave, life insurance,
and disability insurance. In addition to the medical costs associated
with obesity, there are also human costs. The Journal of the American
Medical Association reports that obese children suffer higher levels of
depression than do pediatric chemotherapy patients and report “low
quality of life” at five times the rate of non-obese children.
National health leaders are sounding the alarm, calling obesity the most
serious public health problem we face. Employers are demonstrating
strong commitment to workplace programs, even as concern about
the rising cost of employee benefits increases. The body of evidence-
based information to support a return on investment is growing.
Research published in Preventive Medicine showed that men over 50
years old who increase their physical activity levels had significant
declines in their annual medical claims which resulted in a savings of
approximately $2,000 per active person annually.
Employers should create opportunities and incentives for employees
and dependents to increase their physical activity levels through
both environmental changes in the workplace and health benefits
incorporating financial incentives. It makes sense to rally around
physical activity as a key strategy for reducing the cost burden of
employees with excess weight. A recent Duke University study found
that overweight workers had 13 times more lost workdays due to work-
related injuries, and their medical claims were seven times higher than
their fit co-workers.
Research published in the Journal of Occupational and Environmental
Medicine confirms the significant negative effect of obesity on
productivity: high healthcare costs, lower health status, more
absenteeism, and problem relationships at work. The same research
showed that the quantity and quality of work improved with increasing
levels of physical fitness.
AMBA
Every step employers take to promote healthy weight and healthy
lifestyle is a step in the right direction.
Taken from the Benefits Briefing (Employee Benefits News) newsletter
Summer 2009. o
Plant Closing Checklist
In these tough economic times, it’s unfortunate, yet more common than
ever, for businesses to close their doors. Below is a list of 10 suggested
actions to take to help control claim frequency and severity in the final
days of a plant operation and after the plant is closed.
1. Collect contact information. Keep a current list of your
managers’ and employees’ contact information - including
mailing addresses, telephone numbers, and email addresses. You
may need their testimony to defend a claim.
2. Communicate contact information. Provide your insurance
agent with the names and contact information of the people
responsible for personnel files, wage information, payroll, sales
audits, and power of attorney.
3. Keep employee injury and accident records current.
4. Conduct a claim review. Review prior claims to identify any
issues with open claims. Discuss potential claimants and identify
specific areas of the plant that have had claim issues.
5. Collect job descriptions. Make sure complete job descriptions
are available for all jobs. Include job standards, average
production, and production incentives for each work station.
Personnel records should reflect which machine(s) an employee
operated.
6. Perform a loss prevention survey. Find out when the latest loss
prevention survey was completed and update it if needed.
7. Perform a noise survey. Find out when the latest noise survey
was completed and update it if needed.
8. Secure a plant floor plan. Keep a current floor plan on file.
Make sure it includes a diagram or blueprint of machines.
9. Take photos or video. Take photos or videotape jobs before the
shut down.
10. Add a question to your exit interview. Ask employees in the
exit interview if they have any work-related medical problems.
Taken from the Spring 2009 issue of the Safety Net newsletter. o
Flood Insurance Facts
I know what you’re thinking. MORE INFORMATION ABOUT
FLOOD INSURANCE! Unfortunately, insurance is something most
people don’t want to think about until they need it. This is especially
true with flood insurance since there is a waiting period before a flood
policy will take effect.
The Federal Emergency Management Agency (FEMA) is responsible
for maintaining a Flood Insurance Rate Map (FIRM) for each
participating community. Based on where your property is located on
your community FIRM, you may be in a high, moderate, or low risk
29
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30 AMBA
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zone which is a major part of what determines your flood insurance rate.
Since the FIRM is occasionally revised and updated, it is possible that
a property can change from a low or moderate risk zone to a high risk
zone. This could significantly increase a property’s flood premium.
If you are currently in a low risk zone, you may benefit from the
“grandfather rule”. If you maintain continuous flood coverage (before
a map was modified), you may still be able to qualify for the same
premium as if your zone risk level had not changed. The National Flood
Insurance Program will also extend this concession to a new owner if
the previous owner maintained flood coverage. Similarly, if a home
was built in compliance with a specific FIRM, the homeowner may still
qualify for previous FIRM rates with proper documentation.
No matter where you are on the flood map, it is a good idea to have
flood insurance because we all have the potential of experiencing a
flood. According to FEMA records almost a quarter of flood claims
come from areas that are not considered high risk because rapid
accumulation and runoff of rain water can be considered a flood. Don’t
wait until you need coverage. By then it will most likely be too late.
Taken from the Spring 2009 issue of the Insurance Advisor Newsletter. o
Human Resources
Did You Know...To Furlough or
Not to Furlough?
Employers continue to search for ways to lower their overhead and
contain their costs and often look first to cut wages. Payroll is often the
first target and one option often entertained is to furlough workers.
In a recent article from SHRM, the subject of furloughing workers came
with a word of caution.
One word of caution comes from the confusion of the term itself.
“The word furlough is used by different people to mean different
things,” noted Attorney Gerald Hathaway, of Littler Mendelson’s
New York office. “To some it means taking a day off once a week. To
others, it means a rotating one-week layoff. To still others, it means an
unscheduled (until now) plant wide shutdown of a fixed period. There is
no general, universally accepted definition.”
Along with the confusion of the term itself, points of caution raised
by SHRM were focused on wage and hourly employee issues,
possible unlawful discrimination, Worker Adjustment and Retraining
Notification (WARN) Act requirements and possible labor relations
challenges to benefits issues.
So, while the cost savings of the furloughs may give a short-term help
to the employer, it’s important that those savings not be jeopardized by
legal costs if compliance risks aren’t considered upfront.
In addition to the issues noted above, employers should know that there
are many details that relate to furloughs. For example, a furloughed
worker should not perform any work-related activities during the time
of the furlough - including checking emails!
AMBA
While it may seem as though furloughing workers may be an immediate
and easy solution to cost-cutting, we urge you to do your homework
before you make your decision so that you can be fully informed.
You may also want to check out www.shrm.org for additional
background materials. Taken from the July 2009 HR Resolutions
newsletter. Visit them at www.hrresolutions.com. o
Retaining Key Employeess
Unless you have capable successors and employees, your closely held
business may not survive your departure if key employees leave instead
of adapting to the new owners and management. Therefore, a business
succession plan should be in place and contain strategies to identify,
retain, and reward key employees.
There are numerous methods for retaining and rewarding a key
employee’s commitment, loyalty, and hard work. The most effective
incentives are usually monetary and include, but are not restricted to,
the following types of incentives.
Incentive stock options. Incentive Stock Options (ISOs) can provide
key employees additional compensation through the opportunity to
share in the appreciation of the company’s stock value. ISOs are usually
granted to the employee at no cost with an exercise price at or above
the stock’s current market price; however, they might have alternative
minimum tax implications.
Nonqualified stock option. A nonqualified stock option (NQSO)
is an option that specifically states it is an NQSO or one that does
not meet the requirements of an ISO. Like an ISO, you can use an
NQSO to provide key employees additional compensation through the
opportunity to share in the appreciation of the company’s stock value.
Restricted stock. A restricted stock plan transfers stock to an employee
subject to certain restrictions. Often, the shares are transferred to the
employee at little or no cost, but are subject to forfeiture if the employee
fails to fulfill the terms of the plan. A common restriction requires
employees to forfeit their shares if they terminate employment within a
certain number of years.
Stock appreciation right (SAR). A stock appreciation right (SAR) is
the right to receive compensation based on the increase in value of a
specified number of the employer’s shares of stock. When an SAR is
exercised, the company usually pays the employee cash equal to the
stock’s appreciation, although payment can be made in shares equal
in value to the appreciation. Because the employee does not have to
spend any cash to benefit from the plan, he or she may prefer an SAR
to a stock option, which often requires cash to exercise. However,
the employee does not receive any dividends paid on the company’s
outstanding shares with an SAR.
Please contact your accountant to discuss the characteristics and tax
aspects of these plans.
Taken from the November 2008 issue of the Tax & Business Alert. o
Fall Conference Testimonial
The Fall Conference in Washington, D.C. was a great move in
empowering the members that the competitor might not be
overseas, but in Washington trade policies, and we need a strong
and compelling voice. We need to learn how to play politics.
Sean Shafer, Makino
31
 19647_EDRO_AD 7/12/07 3:42 PM Page 1

By: Karla Dobbeck, PHR,

Human Resource Techniques

FACTA (Fair and

™ Accurate Credit
Transaction Act) –
Holder Steel for improved plastics mold tooling Get Ready!
Today, RoyAlloy™ Stainless steel is the preferred mold base steel
of choice throughout North America. RoyAlloy™ demonstrates According to the Federal Trade Commission,
significant improvements, including enhanced machinability, there are several steps employers should
improved stability, greater toughness, better weldability, and take now in preparation for the sweeping
more consistent uniformity and hardness when FACTA rules that will soon apply to many,
compared with 420F/1.2085. if not most, employers. Below is a partial list.

• Check references or do background checks before hiring

employees who will have access to sensitive data.
• Ask every new employee to sign a confidentiality agreement and
security standards for handling sensitive data.
• Make sure employees understand that following your security plan
is an essential part of their duties.
• Regularly remind employees of your company’s policy—and any
legal requirement—to keep customer and employee information
secure and confidential.
• Know which employees have access to consumer and/or employee
sensitive personal information.
Edro Specialty Steels, Inc.
California - Pennsylvania, U.S.A. • Pay particular attention to data like Social Security numbers,
West: 800.368.3376
East & Midwest: 888.368.3376 addresses, license and account numbers.
Appenweier, Germany
Tel +49 (0) 7805 91579-0 • Limit access to personal information to employees with a “need to
email: royalloy@edro.com
www.edro.com know.”
• Make sure that workers who leave your employ or transfer to
another part of the company no longer have access to sensitive
information; terminate passwords, collect keys, change file names,
etc.
• Have a system in place to destroy outdated files and anything else
containing personal or credit information.
• Check out vendors before releasing personal data.

Taken from the May 2009 issue of Ei Ei Oh! HR Newsletter. o

A Dozen Ways to Prepare for Flu Absences

If you have been listening to the news, you are aware that a new strain
of flu is rapidly infiltrating the country. The number of suspected cases
grows each day.

As an employer, there are steps you can take to ensure that your
workplace remain as flu-free as possible.

1. Provide small bottles of hand sanitizer to each employee. They

can be found in most discount stores and/or pharmacies.
2. Post the symptoms so your employees will know what to watch
for in family members. They include:
o Fever
o Lethargy
o Lack of appetite
o Coughing
o Possibly runny nose, sore throat, nausea, vomiting and
diarrhea.
3. Let employees know that if they are sick, they should
info@wi-engraving.com STAY HOME!
4. Allow for excused absences due to the flu in your
attendance policy.

32 AMBA

_Engraving.indd 1 10/23/08 1:33:02 PM


5. If an employee calls in with the flu, require an employee either
bring a Dr. note indicating he/she is no longer contagious.
6. If an employee merely calls in sick, require a Dr. note or require
the employee sign an affidavit stating that they have no symptoms
before allowing the employee to return.
7. Encourage your employees to stay away from crowded venues.
8. Ask parents of young children to re-think sporting events for the
kids this season.
9. Accommodate a parent’s need to stay home with children who
are ill.
10. Allow employees to use paid vacation time in lieu of
unpaid absences.
11. Put supervisors on alert to watch for employees who might be ill.
12. Create a contingency plan to cover work should the flu hit your
facility. Decide now how you will manage to get the work out.
You might not be able to avoid absences due to the flu completely but
if you take precautions, you might be able to limit its affect in your
workplace.
Taken from the May 2009 issue of Ei Ei Oh! HR Newsletter. o
Cutting Hours & Furloughs –
Food For Thought
Over the past few months, HRT has received many calls regarding how
to best cut hours and what to keep in mind when doing so. This article
addresses some of the key items to keep in mind.
1. Unemployment – employees may or may not be able to collect partial
benefits depending on a number of factors that are individual to each
employee. To learn at what point an employee may be entitled to partial
or full benefits, each employee should meet with their local u/c office.
2. Benefits – most group insurance plans have a ‘minimum hours’
requirement so before cutting hours, check to see the number of hours
your individual plan requires. Your insurance carrier or your plan
application will have the information you need.
3. Exempt staff – the law requires that exempt employees receive the
same salary each week that any work is performed. At the same time,
employers can cut salaries or place move their exempt staff to an hourly
wage. Another option is to require a certain number of days off during
a set period such as a quarter or a month. For this option, employers
can recalculate the salary taking into account the number of days off.
This third option leaves the employees’ base salary intact since when the
furlough ends, the rate returns to the original rate.
4. ERISA – if you have a retirement plan, the law requires that any
employee who has been with the company for at least 1 year and who
works 1,000 hours be included. The minimum age requirement is 21.
5. COBRA – the newly enacted stimulus rebate for COBRA only applies
to an involuntary termination of employment. It does not apply to an
employee whose hours have been cut so if cutting hours is something
your company is considering, take into account how your employees will
be able to continue to meet their premium obligations.
Taken from the June 2009 issue of Ei Ei Oh! HR Newsletter. o
AMBA
Tax & Business
Get a College Education for Free
It’s no big secret that a college education can cost you or your children
years of debt. But guess what? More and more universities, and not just
the U.S. military academies, are now offering some students everything
from free tuition to free room and board. Check out some of the sweet
deals offered by these unique universities.
1. College of the Ozarks - Students pay no tuition in exchange for at
least 15 hours a week at a campus work station at this top liberal arts
school in the Midwest.
2. Deep Springs College - This two-year, all-male liberal arts college in
California offers free tuition, room and board in exchange for at least 20
hours a week of hard work on its ranch.
3. Berea College - This Kentucky college provides a full-tuition
scholarship to every student, in exchange for at least 10 hours a week in
one of the school’s 130 labor departments.
4. Olin College of Engineering - One of the top undergraduate
engineering programs in the country, this school provides every
admitted student free tuition for four years.
5. Cooper Union - Located in Manhattan, this school offers degree
programs in art, architecture, and engineering, and every admitted
student receives four years of free tuition.
Other more specialized schools with similar deals include: Curtis
Institute of Music in Philadelphia, Alice Lloyd College in Kentucky, the
City University of New York’s Teacher Academy, and UC-Irvine School
of Law (this year only) in California.
Taken from the 1st quarter issue of the Homes & Money newsletter. o
A Tax Law (Captive Insurance) That
Actually Cuts Your Cost of Doing Business,
While You and Your Business Enjoy Tax-
Advantaged Benefits
By: Irving L. Blackman, President of WCPN, LLC and chairman of
the board of the New Century Bank
The Internal Revenue Code is not a friendly creature. It is designed to
“taketh” your money; “giveth” is not in its vocabulary. Yet, there is a
section of the Code [Section 831(b)], dealing with captive insurance
companies (Captives) that when properly used, is primarily an income
tax-saving machine for your business and can be structured to offer tax-
advantaged benefits that create wealth for you (or even your heirs).
A real tax winner.
About 80% of the Fortune 500 take advantage of the Captive benefits.
But much smaller businesses can join the tax-saving/wealth-building
fun. If you own all or a part of a business, listen up, you’ll love what
you are about to read.
33
 Note: The Obama administration has made it clear: Income tax rates
on high earners are going up. As you are about to learn, a Captive is an
especially welcome friend in a rising-tax-rate environment.

It’s difficult to find a CPA or lawyer who has even heard of Captives.
The few that know Captives exist (like yours truly for many years)
don’t have a clue of how to take advantage of the many benefits offered
by Captives for family owned businesses or small public companies.

Just what is a Captive?… First and foremost it is a bona fide insurance

company, an insurer established to provide coverage for the company
or people who founded it. An example is the easiest way to explain
Captives.

First, a simple example: Joe owns Success Co, which has some
“uninsured risks” (explained in greater detail later) that his current
property and casualty insurance (PCI) company will not insure. Joe
creates New Co. (a Captive), a corporation, which is an insurance
company (covering Success Co.’s uninsured risks). The stock of New
Co. is owned by Joe’s children.

Now for the fun part. Suppose the insurance premium for the uninsured
risks are determined (professionally by a consulting actuary) to be
$500,000 per year. Success Co. pays the $500,000 premium to New Co.
The entire premium is immediately deductible by Success Co. like any
other PCI. You’ll like this: Under the Captive rules, all of the $500,000
is income tax-free to New Co.

Say Success Co. is in a 40% tax bracket (state and federal combined).
Success Co. is only out of pocket $300,000 ($500,000 less $200,000 in
tax savings). New Co. has the entire $500,000 to invest. A good start.
But remember, New Co. is a Captive and must hold the $500,000, plus
earnings as a fund to pay potential claims for the risks it insurers.
Next, let’s explain “uninsured risks.” Every business has risks: some
insured, some uninsured. The most common risks – like workmen’s
compensation, vehicle, property and general liability – are transferred to
a third-party (your traditional property and casualty insurance carriers)
and are insured risks.

Now let’s list some typical “uninsured risks,” the kind that you can’t
buy coverage for in the traditional insurance market (as you scan down
the list below, check off those that apply to your business):

• Litigation defense/asset protection

• Loss of a key customer
• Loss of a key supplier
• Change in a law/regulation/ruling
• Product warranty
• Product liability
• Professional liability
• Strikes/labor problems
• Traditional policy exclusions/deductibles
• Employment practices

The list could go on and on. You probably have one or more uninsured
risks peculiar to your business. Go ahead, add ‘em on.

Let’s face it, your business is self-insured for all of the above risks,
either by choice or because the risk just can’t be insured commercially.
A Captive reduces the amount needed to fund such possible future
losses. How?… The premiums paid to your Captive are immediately
deductible.

There are many more ways that the use of a Captive can save your
business significant insurance costs.

34 AMBA
Following are two (of dozens of possible) examples:
Example #1. You own a new (or very up-to-date) building in an
area with “zone coverage.” Your building is in total compliance with
stringent building codes. Many older buildings in the zone are not
complaint. Your building can obtain lower rates from your Captive if
you can show that your building is a better risk than the Zone’s rating.
Example #2. Success Co. pays premiums to the Captive to insure for
litigation defense, strikes and product warranty. Remember with a
commercial insurance company (CIC), if the insured has no losses, the
CIC keeps the entire premium. No refunds.
Even though a Captive cannot reduce (actuarially determined)
premiums, a financial windfall results (unused reserve) if the insured’s
actual losses are less than actuarially predicted. For example, suppose
Joe’s Captive (New Co.) has an unused reserve. A portion of the unused
reserve can be (a) refunded to Success Co.; (b) reduce future premiums;
or (c) paid to the Captive’s shareholders (Joe’s children) as a dividend.
Three nice fringe benefits.
There are a number of other what I call “fringe benefits” to a Captive
structure. Following are a few: (a) Someday liquidate your Captive and
take out the unused reserve at capital gains rates; (b) have the Captive
invest a portion of its reserve funds to pay premiums for life insurance
on the Captive’s founder or his family members (in effect, deducting
the life insurance premiums); (c) use the Captive as an estate planning
strategy, passing the Captive (and any life insurance proceeds) to your
heirs.
Make no mistake, your Captive must be formed and operated for a
business purpose. The Captive must demonstrate that it is, in fact, acting
as a proper insurance company. Follow the rules and the IRS is not a
problem. Try to fool the IRS by forming your Captive to take advantage
of only the tax-advantaged fringe benefits, without a real business
purpose, is almost certain to cause the loss of the sought-after benefits.
No attempt is made in this article to explore all the rules, traps and
opportunities in forming your own Captive. It is essential that you work
only with qualified, experienced advisors that specialize in Captives.
The right advisors can easily tailor your Captive to fit you, your
business and your circumstances perfectly.
Now the key question: Is a Captive for you?… If costs were not an
issue, the answer would be a resounding ‘YES’ for almost every
business. Unfortunately, costs are a factor. For a Fortune 500 company,
it’s a slam dunk: The insurance cost savings and tax-benefits are well
worth the required costs to create and administer a Captive.
If you can answer ‘Yes’ to any of the following questions, you should
strongly consider forming a Captive:
1. Is your before-tax profit $1 million (or more) per year?
2. Are your traditional insured property and casualty expenses $1
million (or more) per year?
3. Is one (or more) of the “uninsured risks” listed above (or one you
added) a significant factor in your business?… and worth a premium of
about $200,000 a year (or more)?
Logic tells you that the larger your business, the more likely a Captive
should be a top priority for your next year’s business plan (i.e. make
$1 million – before-tax – or more, Captive is a must). Costs are easily
covered by Captive benefits.
But what about smaller family businesses?… The answer can be ‘Yes’
AMBA
with a new strategy the experts have perfected, if your before-tax profits
are in the $250,000 per year range. Benefits are the same as for a larger
company but costs are substantially reduced.
What, you are even smaller?… well, we need your help. Show this
article to the decision maker(s) of your trade association. Have your
trade association adopt a Captive program… then you and the other
members can participate. The cost is minimal.
Finally, if you are lucky enough to be a Florida resident and your
business is located in any other state there is a little known – legal – tax
strategy that enhances your tax savings.
How can you learn if a Captive will work for your business? Please
fax the following (on your company letterhead) to 847-674-5299: Your
name, title, type of business, total number of employees and any other
information you think would be helpful. Also include all phone numbers
where you can be reached (business, home, cell). Please mark “Captive”
at the top of your fax. o
One Overlooked Business Tax Credit—
The Work Opportunity Tax Credit!
In today’s economy, the concept of “squeezing every dollar” has
become a necessity. Businesses are looking for ways to cut expenses
so that they are not only competitive, but also to keep the doors open.
Looking at the federal government as a source of extra money is
not often a business owner’s first choice. However, there are several
programs designed to provide businesses with tax incentives in hope
of getting the economy moving again. One such program is the Work
Opportunity Tax Credit Program.
Often referred to as WOTC, this program is one in a set of strategies
put forth by Congress that is designed to move certain disadvantaged
people into gainful employment and obtain on-the-job experience. As
the name implies, WOTC is a tax credit, which means a dollar-for-
dollar reduction of a tax bill. As a credit, WOTC allows corporations
or individuals to increase any tax overpayments or decrease tax bills.
For S corporations and partnerships, the credit will flow through to the
shareholders or members, increasing their potential refunds or reducing
the total amount due.
WOTC applies to employers who supply their work force with newly
hired people who fall into one or more of 12 target groups. These
groups range from ex-felons and recipients of various types of public
assistance to summer youth employees, disconnected youth and even
veterans of the armed forces returning to employment. Employers who
hire from these target groups are eligible for substantial federal tax
credits. For example, each new summer youth hire could potentially
generate a $1,200 credit, each new adult hire could generate a $2,400
credit and a disabled veteran hire could generate $4,800 of credit.
Obtaining WOTC is essentially a two-step process. The first step
involves preparation of two forms, IRS Form 8850, and either U.S
Department of Labor Form 9061 or 9062. The most difficult step is
to have the new employee complete page 1 of Form 8850 by the day
the offer of employment is made. If the applicant is able to check any
of the boxes on page 1, the applicant will sign page 1 and return it to
the employer. The employer has 28 days from the date the applicant is
hired to fill out page 2 of Form 8850 and have the employee complete
Form 9061 or sign Form 9062. Form 9062 is used when the applicant
has been conditionally certified by a state work force agency or other
participating agency, Form 9061 is used for everyone else.
Once Form 8850 and Form 9061 or 9062 are complete, the employer
35
mails the forms to the appropriate state work force agency, which
reviews the applications and determines if the applicant qualifies as
a member of one of the target groups. Please note that these forms
are not mailed to the IRS or the U.S. Department of Labor. Once this
certification is received from the state work force agency, the potential
credit has been established.
The second and final step in the process of qualifying for the WOTC
is for the employee to meet the minimum number of hours worked
requirement. Each target group has different requirements. For example,
all new adult employees must work a minimum of 120 hours, while
summer youth employees must work at least 90 days from May 1 to
September 15. Once the minimum requirements have been achieved, the
employer is entitled to claim the WOTC on their next income tax return.
Claiming WOTC is an effective way for employers to generate tax
credits and produce larger tax refunds. Still, most employers do not
realize these benefits when they hire new people. Many employers
believe the process is too complex. A little administrative effort
could go a long way toward reaping some very large benefits. As an
alternative, many payroll processing firms and other employment
consulting firms will process all the paperwork for a fee (generally 15%
to 20% of the potential credit).
For further information, please contact your tax representative. Taken
from the July 2009 Tax Highlights from Blackman Kallick. o
Managing Business Net Operating Losses
Poor economic conditions and the need to control expenditures,
particularly during tough economic times, are obvious. But, the anemic
economy has also impacted small business owners, many of whom
may have an operating loss for 2008. That’s the bad news. The good
news is, if your business sustained an operating loss, you may be able
to benefit from carrying what is called a net operating loss (NOL)
into a different tax year—a tax year in which you had or will have
taxable income—and take a deduction for the current NOL against that
different year’s taxable income. This is what is known as taking an
NOL deduction, which could result in a refund of previously paid taxes
(or a reduction of future taxable income).
Generally, an NOL can be carried back two years and forward for up to
20 years to offset taxable income in those years. The NOL first offsets
taxable income from the previous two years (the earliest year first), and
is then carried forward to offset taxable income in future years. The
initial result is a refund of all or a portion of the taxes you paid for the
two prior years, limited by the amount of the NOL.
There are more advantageous rules for treating NOLs arising from
special situations. For example, a three-year carryback applies for
NOLs sustained by small businesses and farmers and arising from
federally declared disasters, no matter when they arose. A special five-
year NOL carryback is available for farming losses (whether or not
related to disaster areas) incurred in tax years after December 31, 1997.
Finally, for NOLs in tax years beginning after 2007, there is a special
five-year carryback period to the extent of a qualified disaster loss
occurring in a federally declared disaster area before January 1, 2010.
These extended carryback periods allow taxpayers the opportunity
to receive a quick refund of taxes paid in several prior years versus
waiting to carry the NOL forward.
In determining the amount of your NOL, you don’t simply use your
negative taxable income from your tax return. Several modifications
36
must be made and the computations can grow quite complex,
depending upon your particular circumstances.
So, please contact your tax advisor to discuss how a business loss might
qualify as an NOL and turn into a tax refund to supplement your cash
flow during this difficult economic period.
Taken from the January 2009 issue of the Tax & Business Alert. o
IRS Proposes Change to Tax Treatment of
Employer-Provided Cell Phones
As cellular telephone technology continues to evolve, many employers
and employees are finding the tax substantiation requirements for
employee-provided cell phones increasingly cumbersome. Recently,
the IRS issued Notice 2009-46, which aims to change the substantiation
requirements for employee-provided cell phones. Advocates of the
proposed simplified substantiation methods argue that technological
advances have rendered the current rules obsolete.
The Internal Revenue Code currently disallows a percentage of
expenses, based on personal usage, related to employer-provided cell
phones as nondeductible (or a taxable benefit to the employee) and
classifies the cell phones as “listed property.” This classification limits
the deduction allowed for depreciation expense on the cell phones to
the percentage used for business. For example, an employer-provided
cell phone used half for personal use and half for business use would
allow the employer to deduct only 50% of the current year’s related
expenses and depreciation expense for tax purposes. While the concept
is fairly simple, the application is not. In order for the employer to
claim any deductions related to business use, the individual employees
must substantiate the amount he or she used during the year for
business as opposed to personal use. This requires the employee to go
through all phone bills in detail and classify which calls fall into each
respective category. Further complicating the matter is the advent of
text messaging and the ability to link e-mail to cell devices, making
the determination of a business use percentage even more difficult and
time-consuming, if not impossible.
Notice 2009-46 was issued on June 16, 2009 and asked for input to
simplify compliance. The Notice provided the following three potential
simplified substantiation methods currently under consideration:
1. Minimal Personal Use Method
2. Safe Harbor Substantiation Method
3. Statistical Sampling Method
Each of these proposed methods would remove cell phones from
being classified as listed property and would simplify the process of
determining a business use percentage for deducting related expenses.
The specifics of each method are described below.
1. The Minimal Personal Use Method would allow the employer
to deduct 100% of cell phone-related expenses given that
personal use of employer-provided cell phones is “minimal.”
Under this method, the employee would be required to either
substantiate that he or she maintains a separate cell phone for
personal use or adhere to keeping personal use minutes under
a specified amount deemed “minimal.”
AMBA
 SINCE 1896

BICO STEEL SERVICE CENTERS

BICO AKRON, INC. BICO MICHIGAN, INC. BICO SOUTH, INC.

Mogadore, Ohio Grand Rapids, Michigan Spartanburg, S. Carolina
330-794-1716 616-453-2400 864-595-1025
800-321-0983 800-962-4140 800-998-1025

37
Fax: 330-733-7189 Fax: 616-453-2929 Fax: 864-574-4140
AMBA plate@bicoakron.com plate@bicomichigan.com plate@bicosouth.com

2. The Safe Harbor Substantiation Method would allow
employers to deduct a specified percentage of expenses
related to all employer-provided cell phones regardless of
actual business and personal usage amounts. Currently, the
IRS and U.S. Treasury are proposing a 75% deduction.
3. The Statistical Sampling Method would allow employers to
measure the personal and business use of an employee using
statistical sampling techniques to determine a percentage of
use that could then be applied to all employees to calculate
the deductible amount of related expenses.
Also included in the notice is a stipulation that employers wishing to
use any of these methods would be required to implement a written
policy defining the method to be used and any subsequent employee
requirements. In addition to these three methods, employers would also
have the option of continuing to treat employer-provided cell phones
and their related expenses as currently defined in the Internal Revenue
Code
Taken from the July 2009 Issue of the Blackman Kallick Tax Highlights. o
Subscribe to The American Mold Builder
The official publication of the American Mold Builders Association.
It will keep you up-to-date with the latest moldmaking industry
news, and management solutions. Subscriptions are free with AMBA
membership or may be purchased for $50 annually. (shipping &
handling included). Visit www.amba.org to subscribe today!
Order Gold Plates for all Your
U.S. Built Molds!
We now offer two sizes of “Made in USA”
plates to put on all your U.S. built molds!
1-1/2” x 2” 3” X 4”
size for size for
$1 each $2 each
plus s/h plus s/h
MADE IN USA
The new updated AMBA logo and the words
“Made in USA” are imprinted on the plates.
Order your mold plates today, and highlight
your “Made in the USA” status!
Email Kim Cobb at kcobb@amba.org or call the
AMBA office to order your gold plates today!
38
Business Success Strategies
Should You Sell Your Company Now
By: Richard Tanner, Ownership Advisors, Inc.
Should you sell your company now? Not only does the answer depend
on you (how much fire you’ve got left in your belly) and on your exit
goals (can a sale achieve your retirement needs?), it also depends on
what you’ve got to sell, what industry you are in and M&A market
conditions in your market segment.
Let’s look at each.
What are you selling? There are several characteristics (that we call
“Value Drivers”) that buyers look for when deciding whether to buy (or
pay a premium) for a company. These include:
• Stable, motivated management and a high-performing workforce.
• Systems that sustain the growth of the business.
• Realistic growth strategies.
• Effective and documented financial controls.
• Appearance of facility consistent with asking price.
• Growing cash flow, profitability, revenue and sales.
• Protected proprietary technology.
• Attractive business sector.
Niche industry: Buyers look not only to your company’s Value Drivers,
but also to whether your business is in an attractive business sector. In
today’s economic climate, business sector alone may determine if your
company is saleable. According to investment banker Kevin M. Short of
Clayton Capital Partners, today’s buyer is looking for companies in the
following “niche” industries:
• Energy
• Healthcare
• Technology
• Infrastructure
• Consumer staples
Non-niche industries would include: retail, financial, home-building or
those related to consumer discretionary products or services.
Market conditions
The M&A market for multi-billion dollar companies is tenuous, but
the market for well-prepared, well-positioned (in a favorable business
sector), and well-performing companies in the $5 million to $150
million range is healthy. Valuation multiples are likely lower than
those during the boom part of the cycle, but solid companies can still
receive a solid valuation — and there is financing available for these
transactions in this marketplace.
If you and your company are ready to sell, let’s look beyond the hysteria
to the facts: Private Equity Groups (PEGs) have hundreds of billions
of dollars available to acquire operating companies. These PEGs are
looking for profitable companies in the $5 million to $150 million
range. It is most important to collect and evaluate your industry’s
market data before eliminating this option.
If your company is worth less than $5 million, what are your options?
First, assuming that the current storm is more than you can stomach,
AMBA
you have a solid company and an earlier-than-planned departure does
not affect your retirement goals, you can pursue a sale. With local bank
financing still available for good acquisitions, your company may very
well be someone else’s target acquisition. Your job (and that of your
advisors) is to make your company as attractive as possible by paying
close attention to the Value Drivers described above, and creating and
implementing a short-term action plan to increase each driver.
In addition, if conventional financing is not available to a buyer,
financing is available under the Small Business Administration’s 7(a)
loan guaranty program. This loan guaranty program can be used to
acquire businesses, with loans of up to $2 million. The Obama team has
promised to increase the loan limit and temporarily suspend all SBA
loan fees.
The bottom line is that financing, especially for “smaller” companies
may be more available than you think. If that is indeed the case, does it
affect your decision to sell or stay?
If you decide to sell…
No matter the size of your company, if you decide to sell, you must do
so in a way that leaves no money on the table. This means that you must
make it as attractive as possible to buyers (see Value Drivers above)
and that you must retain a transaction advisory team skilled in sales of
companies like yours. We can help you find these skilled advisors.
Subsequent issues of The Exit Planning Review™ discuss all aspects of
Exit Planning. The provider of this Newsletter (Richard Tanner) offers
you unbiased information about what you may need to know — How To
Run Your Business So You Can Leave It In Style™. o
AMBA
Ten of the Worst Networking Myths
By: Liz Ryan
Some people just have a knack for getting out and meeting many kinds
of people and building meaningful relationships. They see the value
of how interacting with others increases their knowledge and creates
opportunities. Conversely, so many other people stifle themselves by
creating excuses for staying in their shells. Here are ten of the worst
myths about networking and their current, more sensible replacements
that will help see the light to an important and valuable social activity.
1. Networking means meeting as many people as you can.
If possessing a huge stack of business cards or having met every
business person in your city was a ticket to riches, this might be true.
But it’s not. Networking gives you a chance to meet new people, but
quality trumps quantity in human relationships, every time.
2. Networking means telling people about your business whenever
you get a chance.
There’s nothing wrong with letting the folks at your gym, at your place
of worship, and at your book club know what you do for a living. But
people will quickly forget the details of your professional life. What
they’ll remember is you -- if you approach them with a desire to learn
about them, as well.
3. Networking is hard work.
It may be that you’re working too hard. Networking happens naturally if
you introduce yourself to people, stay in touch with people you’ve met,
and think, in every interaction, “How could I help this person?”
39
4. Networking should start when you’re job-hunting.
If you get the call that you’ve been selected to compete on “American
Idol,” it’s too late to start an exercise program or go on a diet. When
you’re out of work, it’s a bit late in the game to start networking
toward your next job. If you have to start then, do it; but it’s far better
to start networking now, and build contacts for the job search that will
inevitably come your way if you’re a working person who isn’t close to
retirement.
5. Networking is for schmoozers.
Schmoozing is by far the least important networking skill. Good
listening is far more useful to a relationship-builder than the ability to
spit a thirty-second elevator pitch into someone’s face.
6. Networking is only for entrepreneurs.
If you don’t believe that having business contacts and experts at your
disposal would be useful for you as a corporate person, talk to any top
business leader and ask his or her opinion. It’s essential to be connected
to other professionals, not just for “it’s-who-you-know” reasons but
in order to get perspectives on your business and career issues that are
different from your own.
7. Networking is a waste of time.
Your networking time will surely be wasted if you approach each
interaction as an opportunity hawking your wares. Ditto if you believe
that your job as a networker is to tell every person you meet all about
your job search and express no interest in him or her. If you can get past
these bad networking ideas and cultivate some relationships, your time
will be well spent.
8. Networking is expensive.
Joining a Yahoo! group is free. The popular networking site LinkedIn
has a free membership level and 15 million users. Plenty of face-to-
face networking events in your town will cost you nothing more than
parking or bus fare.
9. Networking is phony.
If you go to a party at your sister’s house and meet her boyfriend’s dad,
is your conversation phony? Networking conversations need not be any
different than any other interactions between new acquaintances. It’s up
to you.
10. Networking is a thing of the past.
Person-to-person relationships are more important in business than ever.
If anything, networking is a thing of the future.
Liz Ryan is a 25-year HR veteran, former Fortune 500 VP and an
internationally recognized expert on careers and the new millennium
workplace. She is the author of “Happy About Online Networking,”
a popular speaker on workplace and work/life topics, and the leader
of the global Ask Liz Ryan online community. Contact Liz at liz@
asklizryan.com. o
Why I Joined the AMBA:
“AMBA is a great way to talk to people that have the same
issues as I do and you get ideas, encouragement, but most
of all, wonderful friendships with folks all across the U.S.
AMBA is a very effective, useful tool in the day-to-day
operations of a mold manufacturing business.”  add to it. Sources for the list come mostly from family business leaders
Steve Rotman, President, Ameritech Die & Mold,
Mooresville, NC
40
Business Tips – Free Faxing
Through Email
Tired of maintaining a fax machine and a fax line? MyFax is an online
service that allows you to send and receive faxes through email, and it
now has a free version:
This free version lets you:
1.)  Send two faxes per day for free
2.)  Fax documents up to 10 pages in length
3.)  Send MicroSoft Word documents, PDFs, and files in 175
other formats
Simply go to: www.myfax.com/free
Enter your contact information and the name and number of the person
to whom you want to send a fax.  Easy! o
The Birds Always Sing After the Rain
By: Joe Schmieder, of the Family Business Consulting Group
Do you remember the Y2K crisis? During the final years of the 1990s
there was such concern over the “embedded computer software”
switchover to year 2000 that people spent billions of dollars on capital
goods to prepare for this transition. Surprise, there was no catastrophe.
The vast majority of systems transitioned smoothly.
All that capital spent on technology and office support in the years
leading up to 2000 led to an abrupt spending decline on office-
related goods. A devastating 40% drop in revenues over an 18-month
period revealed the house of card models of many upstart technology
companies, leading to the very painful bursting of the tech bubble.
This rapid falloff in technology companies affected other sectors of
the economy, like commercial real estate and office furniture. But
unlike the current economic crisis, it did not affect the entire economy.
Nevertheless, there are some important lessons to learn from that free
fall experience.
Back in 2000 I found myself and the family company I was running in
the midst of this sudden and profound downturn. Many noncompetitive
family businesses started to compare notes. We were all reading the
same business articles and management guru books. But we could not
get from 40,000 feet to the grass roots level of what actions to take.
We knew we had to strengthen our balance sheet and improve cash
flow, but we did not know what actions would work best. Thus, The
List was born. It started out as an itemization of actions to trim costs,
stay competitive, and still be prepared for the next uptick. Most of
us brought our leadership teams together and worked the list for our
specific situation. We would now all agree that it helped us weather that
storm. Many of those same companies made record profits once the
turn-around began. Eight years later, the current storm has turned into
a category five hurricane. As a result, the list has resurfaced. This time,
with more social and business networks in place, we started to grow
the list and categorize the actions. It is now referred to as 100 Action
Thought Starters for Surviving a Severe Downturn.
It now has a life of its own, growing daily, as more people refine and
who run mid-size the operations. However, it also includes the more
actionable concepts from management experts, like Tom Peters and
Jack Welch.
AMBA
Here are a couple items from each category.

General
1. Continuously estimate the depth (degree of severity) and length
(timeline projection) of the downturn in your specific markets.
2. Make your calendar one of your most strategic documents by not
only scheduling meetings, but also scheduling time for working on key
issues impacting your performance in the downturn.

Family Leadership
3. Tap into the wisdom and experience of senior generation leaders who
have likely experienced two or three downturns in their career.
4. Accelerate the range of responsibility for the younger generation,
keeping in mind that some young people will rise to the occasion when
tested.

People
5. List every benefit provided and quantify amount company provides
each employee FICA, 401k match, etc.).
6. Lure your competitor’s best talent.

Financial
7. Strengthen banker relationships - Meet with banker(s) and discuss
current arrangements/covenants, and other possible changes.
8. Improve order-to-cash cycle by sending out invoices as soon as
possible, not waiting for end of week or other set time for batching.

Purchases
9. Audit inventory and reduce slow moving, obsolete items with special
sale, return to vendor or dispose.
10. Defer capital expenditures. Purchase essentials (repair &
maintenance) and invest in selective developments for new services,
CRY-2883 Prelim1-1.fh11 1/15/07 3:33 PM Page 1
products, channels. C M Y CM MY CY CMY K

Manufacturing
11. Review Shingo Award assessment list (www.shingoprize.org) for
areas of improvement to world-class status.
12. Eliminate the eight wastes of Lean: overproduction, motion,
inventory, waiting, transportation, defects, underutilized people,
extra processing.

Facilities
13. Consolidate plants.
14. Increase use of energy efficient practices (e.g. replace expensive
lighting).

Marketing
15. Use the digital world more for promotions— email blasts, website
ecommerce.
16. Do not stop marketing and selling efforts, but adjust approach.

Sales
17. Visit all major customers—thank for business, seek input on
outlook, discuss needs of your products, services and any opportunities.
18. Ask customers where your company can save their company money.

Pricing
19. Increase pricing if in niche markets with limited competition.
20. Implement an environmental surcharge (for trash, recycling,
hazardous waste handling, green material usage, etc.).

Business Development
21. Analyze sales and profitability of each product offering and prune
nonstrategic, low profit products.
22. Seek lower-priced, fire-sale acquisition opportunities, particularly

AMBA
Composite
41
42 AMBA
those where the seller may provide the financing or take an earn-out.
Office/Admin
23. Increase use of technology—move quicker to on-line ordering,
tracking, and shipping.
24. Reduce the number of computer hardware and software license fees.
“A crisis is a terrible thing to waste,” says Warren Buffet. We can learn
and apply many actions now that will get us through this storm and
be much stronger when conditions improve. Now is a time execution.
Clinical studies demonstrate that the best antidote for depression is
action. So instead of overly lamenting about our dire condition, the
healthiest thing to do is to act. Hopefully, The List helps trigger you and
your team to meaningful action.
And as the sun is sure to rise in the morning, so too will the birds be
singing when this storm subsides.
Taken from the March 2009 issue of The Family Business Advisor, www.
efamilybusiness.com. Reprinted with permission by the Family Business
Consulting Group Publications. All rights reserved. o
Classified Corner
FOR SALE - 2001 FIDIA  K165  3+2 Hi Speed CNC
Description: Bought this machine at the 2002 IMTS show as a demo
model. All service records, recently upgraded FIDIA C-20 control.3,000
- 30,000 RPM Spindle. X- 1,000mm by Y - 600mm by Z -500mm. 1574
In/Minute feedrate  20 position tool changerHSK 50E Spindle   FIDIA
Laser Tool Measurement, Excellent condition - Fantastic finishes and
accuracy Priced for QUICK sale! Have new machines coming in!!!! 
Contact Info: Steve Rotman    Ameritech Die & Mold, Inc   TOOLOX 33 is a pre-hardened and tempered tool steel with
Mooresville, NC 28117   704-664-0801 Office    exceptionally low residual stresses in ESR quality. As a result of its
Price: $82,000 OBO
FOR SALE - Blanchard Grinder
Description: 20CD-36 38” swing 3/4” chuck life
Contact : Raymond Mueller III
Price: call 314-522-8080   standard dimensions as a P1100 standard plate. Special sizes can be
FOR SALE - Blanchard Grinder
Description: 32-60 60” chuck 1/2” chuck life 72” swing 100 hp
Contact: Raymond Mueller III
Price: call 314-522-8080
FOR SALE - Blanchard grinder
Description: 1993 model 54HD-100 100” chuck 120” swing 54”
segmented wheel 250hp soft start 3/4” chuck life
Contact Info: Raymond Mueller III
Price: call 314-522-8080  
FOR SALE  - KM-80-220C2 (88 TON)
Description: Tie bar spacing 405 X 405 mm. (15.945 X 15.945 in.)Mold
Height 250 mm. (9.84in.)Daylight 750 mm (29.52 in.)3.7 oz. barrel
Contact Info: Jarrod McKay, 814-724-8687 x28,
jpm@realcodiversified.com
FOR SALE   - KM-50-90C2 (55 TON)
Description: Tie bar spacing 320 x 320 mm. (12.598 x 12.598 in.)Mold
Height 200 mm. (7.87 in.)Daylight 550 mm (21.65 in.)1.66 oz. barrel
Contact Info: Jarrod P. McKay, 814-724-8687 x28, 
jpm@realcodiversified.com
AMBA
FOR SALE  - Kent Surface Grinder
Description: Model PFG200N, 6x16 Table, 3,480rpm Spindle Speed,
60Hz, 1KW-2P Spindle Motor, May be purchased with or without mag
chuck.
Contact Info: David Drawert, 480-921-9939, Tempe, Arizona
david@tmwinc.net
Price: $1,200 w/o Mag Chuck or $1,400 with Mag Chuck. o
Tech Corner
TOOLOX® – the new generation
HASCO tool steel
HASCO is now
offering for the first
time the modern
TOOLOX® - tool steel
as an alternative to the
conventional plastic
mould steel materials
1.2311 and 1.2312.
The advantages of
the TOOLOX - steel
grades 33 and 44 are
particularly highly
valued, not only
in mould making, but also in the production of high quality tool and
machine components.
extraordinarily high toughness, with a 1080 N/mm² tensile strength, and
its high dimensional stability, it is particularly well suited for injection
moulding tools. Despite its high strength, TOOLOOX 33 can be
machined very much more easily than other pre-hardened and tempered
grades of tool steel. TOOLOX 33 is available in the familiar HASCO
supplied on request.
TOOLOX 44 is the only quality tool steel supplied ex stock worldwide
that is pre-hardened to 45 HRC. Normal pre-machining and heat
treatment processes are not required, thus reducing costs and the risk of
scrap. TOOLOX 44 can also be supplied in special dimensions to meet
customer requirements.
For more information go to www.hasco.com or email info@hasco.com. o
OEMs & Mold Purchasers Connect with Mold Shops!
OEMs and mold purchasers can access AMBA’s member
companies through AMBA’s Find a Moldmaker feature
at www.amba.org. U.S. mold shops can be searched by
geographic area, market penetration, quality processes,
CAD/CAM systems, mold type, etc. Handy web links get you
connected to potential customers! Find a Moldmaker is a
useful resource to get information on mold shops fast and
easy. Visit www.amba.org and click on “Find a Moldmaker!”
43
Progressive Components Releases ProFile 6 Absolute Machine Tools adds AccuteX and
for Mold Management TopEDM to its National Product Lines
Progressive Components, Absolute Machine
a leading supplier of Tools, Inc., is pleased to
components for the global announce it has acquired
production tooling industry, exclusive rights to the
introduced the industry’s first AccuteX wire EDM line
mold management software, and TopEDM CNC EDM
ProFile™, in 1996, advancing drills and diesinkers. This
the way tooling activity 5-year exclusive contract
and data are tracked. Now, became official May 1,
Progressive announces the 2009, when Absolute
release of the latest version of Machine Tools assumed
the popular program, ProFile 6, offering more enhanced features for the AccuteX line from
even easier mold management. Global EDM Machines.

ProFile is a contact database for molds where last and next actions As the exclusive distributor, AccuteX EDM, a division of Absolute
for a tool may be recorded and tracked, plus it houses critical vendor Machine Tools, will be offering a complete line of wire EDMs to
and customer information for each tool to streamline the management customers in the U.S. and Canada. Absolute will also be offering
process.Other features include: TopEDM CNC EDM drills and diesinkers to these markets. According
• When an action is due, the user is prompted when ProFile is to Steve Ortner, president of Absolute Machine Tools, “AccuteX
launched. and TopEDM are high-quality, user-friendly products that are highly
• Work orders and memos that carry over the mold information for competitive in the EDM field. We expect these EDM lines to be
the recipient, saving retyping. an excellent addition to the existing Absolute Machine Tool lineup
• Embedded spreadsheets allow for tool-specific data to be stored
(Johnford, Tongtai, Ecoca, and You Ji), further expanding our reach into
as well as general information via a program-specific spreadsheet,
aerospace, mold/die, and medical, among other industries.”
perfect for calculations and general lists.
• An integrated Bill of Materials program that gives users histories
For more about Absolute Machine Tools, its product lines, and services,
of costs for the products within the mold and links costs back to
please visit www.absolutemachine.com or call (800) 852-7825. o
the actions being performed.
• Several canned reports to submit status updates to colleagues or
mold owners. Plus, the data can be exported to Excel or other
programs for further manipulation.
Helical Introduces New 2-flute End Mill for
Aluminum Applications
For more information about ProFile 6, visit www.procomps.com, email
sales@procomps.com or call 800-269-6653 (outside the U.S. call +1 Helical Solutions
847 487-1000) to speak with a customer service representative. o LLC is introducing
a new, two-flute
high-performance, non-serrated end mill for roughing in aluminum
New 10xD HELIOS™ Drills from OSG applications, and has improved the design of three existing rough and
finish aluminum-cutting tools. Each of the previously available tools
OSG has expanded the has been special-order products but now are standard and available from
HELIOS™ line to include 10 stock.
times diameter drills!  Now you
can drill 10, 15, and 20 times Crafted of certified premium sub-micron grain carbide, the H35AL-2R
diameter without pecking or the is ideal for roughing and slotting applications and is available in stub
use of internal coolant.  and regular lengths.
 
In testing with tool path optimizing software cutting 6061-T6
HELIOS™ new patented
aluminum, a Helical Solutions end mill achieved 1,000 IPM, compared
technology gives it the ability to
to the 300 IPM for aluminum cutting tool designs previously available
process deep holes without the
in the marketplace. The test conditions were 1-inch depth of cut, ½-inch
use of internal coolant supply. 
width of cut, 12,000 RPM and .0277-inch chip load per tooth. This
State-of-the-art flute design
100-cubic-inch-per-minute metal removal rate was achieved with a
improves chip evacuation,
mere 10 percent load on a 20 HP (14.9 kW) vertical machining center.
making it feasible to drill up to
Over time, putting less stress on the machine results in longer machine
20xD without pecking.  Patented
life and longer tool life.
thinning decreases thrust by
nearly 50% when compared to
Helical Solutions LLC supplies high-quality, high-performance cutting
the competition during testing. 
tools for aerospace, energy, medical and every other industry and
By utilizing OSG’s WXL® coating, HELIOS™ can handle a wide
application. Visit them at www.1helical.com. o
range of materials with up to three times greater wear resistance versus
conventional coatings. 
Visit them on the web at www.osgtool.com or call (630) 790-5167. o

44 AMBA
 Moldmaker's Crossword

For the answer key, go to http://www.amba.org/media/MoldmakersCrosswordAnswerKey.pdf

Created by American Mold Builders Association with EclipseCrossword — www.eclipsecrossword.com

2 3 4

5 6 7 8

10

11

12

13

14 15 16 17

18 19 20

21 22 23

24 25 26

27 28

29 30

31

Down
1. A place where steel meets steel in order to stop the flow of
plastic.
2. A protrusion above the surface of a plastic part
Across 3. Forms the restricted transmission from the runner to the
6. A groove cut under a leader pin bushing molded part
9. An opening where plastic is injected into mold 4. A moving plate which carries the mold components
10. Used to push the molded parts from the mold 5. Molds are made out of this material
11. An acronym for electrical discharge machining 7. A process involving controlled heating of metals
13. A thin sliver of plastic formed by a small gap between two 8. A semi-crystalline thermoplastic, with the acronym of PP
steel shutoff surfaces 12. Produces the external or outside feature of a molded part
14. Mold components relating to the cavity stack 15. Streaking lines on molded parts, when plastic is too
18. An acronym for Low Density Polyethylene cold or too wet
19. A type of mold in which plastic is melted and injected into 16. Made out of copper or carbon, that EDM’s use to shape steel
the mold cavity 17. A metal form consisting of a core and a cavity
21. Unit which retains & supports the molding insert 20. A person who makes molds
components 21. Processes that produce parts through the removal of material
22. A relief in the mold near the last places to fill 23. A process which makes a product by forcing material
24. An acronym for Polyethylene Terephthalate through an orifice or die
25. An acronym for computer numerical control 24. A group of synthetic materials which may be shaped
27. It’s purpose is to evenly distribute the molten plastic to the when soft, and then hardened
molded part 25. Produces holes or internal shape in a molded part
29. An acronym for Acrylonitrile Butadiene Styrene 26. An acronym for computer aided design
30. Also known as a Cam 28. Melt processable thermoplastics, with the acronym PA
31. The largest plastics trade show in the U.S. 29. The trade association with the best members in the U.S.
AMBA 45

CONTACT| www.pcs-company.com | 800-521-0546 | www.buyatpcs.com
Advertiser’s Index
Absolute Machine Tools, Inc............................30
Alba Enterprises, Inc ........................................13
Bico Steel Service Centers.................................37
Choice Mold Components................................26
Creative Evolution............................................24
Crystallume Engineered Diamond...................41
CVD Diamond Corporation..............................15
Edro Specialty Steels.........................................32
Exact Metrology, Inc...........................................7
A. Finkl & Sons Co............................................39
First American Payment Systems....................16
Gibson Insurance Group...................................48
Graphic Products North America.....................18
Graphite Express...............................................15

MOLD AND DIE REPAIR Harroun Enterprises.........................................34

MICRO WELDER Haas Automation..............................................23

Permanently Repairs Ferrous Metals with Incoe Corporation.............................................27
Metallic Ribbon, Wire, Powder or Paste.
P-20, H-13, 420SS, S-7, A-2, Nickel, M-2, etc. International Mold Steel, Inc...........................28
Parting Lines Corners / Edges Kelbros, Inc. . ....................................................24
Pin Holes Scratches / Dents
Design Changes D. C. Arcs Makino...............................................................10
Low Heat / No Shrink Millstar, LLC......................................................12
Adjacent Surfaces Unaffected
Rotary Handpiece for OMNI Mold Systems, LLC................................47
Continuous Welds
PCS.....................................................................46
Easy Operation - Portable
Minimal Finishing On Repairs Proceq USA, Inc. . .............................................18
Fully Hardened Non-Arcing Welds Progressive Components....................................2
FOR LITERATURE • CD • DEMO Rocklin Manufacturing Co. . ............................46
CALL:800-255-6046 • FAX:712-252-5619
Tarus Products, Incorporated...........................42
email: info@rocklinmanufacturingco.com MADE
web: www.rocklinmanufacturingco.com IN USA Ultra Polishing...................................................41
110 South Jennings Street
P.O. Box 1259
Wisconsin Engraving Co., Inc. / Unitex...........32
Sioux City, Iowa 51102-1259 USA

46 AMBA
 • (2) New series of slides
• A total of (18) new sizes
• In stock ready to ship
• CAD files are available on our website
• Call for more information

OMNI Mold Systems customers have been asking for more size options for our Versa-Slides®.
We have listened and are now stocking two new series (45 series) and (55 series).
• The (45 Series) will fill the gap between the 40 and 50 series slides with a 4.375”
slide face width.
• The (55 Series) will fill the gap between the 50 and 60 series slides with a 7.125”
slide face width.
That’s 18 new sizes in all! No more need to custom build those in between sizes.
Proudly made
in the USA
OMNI MOLD SYSTEMS™
Toll Free Ph 888-666-4755 www.omnimold.com
Toll Free Fax 888-816-2850 sales@omnimold.com

AMBA 47
American Mold Builders Association PRSRT
U.S. Postage
P.O. Box 404
PAID
Medinah, IL 60157-0404 Medinah, IL
(Change Service Requested) Permit No. 20

Insuring the AMBA

Leading Provider
Provider of
of
Insurance
Commercial Insurance
Employee Benefits
Personal Home & Auto

Risk
Management
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Photo courtesy of PM Mold Company

www.gibsonins.com 800-814-2122
48 AMBA