Cutting Edge March 2010

According to Weekly Hardwood Review North American hardwood sawmills operated at 70 percent of capacity over the last six months. The primary culprits were lack of demand, a shortage of logs, and little access to credit. As a result, production fell below demand thus fueling a moderate rise in prices in the short term.

In general, lower purchases by distribution yards and railroad tie buyers offset increases by flooring mills and exporters. On the export front surging demand from China and Vietnam counterbalanced declining shipments to European customers.

With the housing and remodeling markets showing moderate improvement in both the U.S. and Canada, the hardwood industry is cautiously optimistic. Demand for cabinets, flooring, and moulding all of which trail housing starts should begin growing by 2Q2010.

On the negative side is the decline in non-residential construction that is drubbing the architectural millwork sector. Those firms typically utilize the higher grades of lumber in their products. As noted below, the Architects' Billing Index, an important indicator of future non-residential construction, has been weak for 23 consecutive months.

Rising Lumber Prices: Supply or Demand?

Softwood lumber prices have jumped 32 percent on the futures market in 2010. But with home construction lingering at levels 25 percent of their 2005 peak, the culprit is a supply shortage, not increased demand. The North American softwood lumber industry was able to provide enough wood to support two million housing starts at that peak. The depth and breadth of this slump has meant shift cuts and shuttered mills. Capital to restart these closed mills is lacking. And many mill owners have little faith that this uptick in prices will stick.

Banks Hold More Cash

U.S. banks are holding a huge and growing hoard of cash. In mid 2008 cash represented only 3 percent of bank assets. Following the financial panic late that year, bankers boosted their cash allocation to nearly 10 percent, a share last seen during the deep recession of 1982.

This change is, of course, a reaction to that panic as loans soured and liquidity became king. Also to blame are the two conflicting signals being sent by the U.S. government to the banks. First, regulators and examiners are forcing banks to raise more capital and get their loan books in shape. Publicly, however, the administration is demanding bankers to lend more to the consumer and small business.

Furthermore, bankers are naturally attracted by the positive yield curve. Who can argue with a strategy of taking demand deposits at virtually zero interest and loaning that money to the federal government at 3.5 percent with no credit risk?

Many economists believe that the severity of the current recession is being exacerbated by the banks' strategy. Growth of credit is a prerequisite to a healthy economy. Until the cash hoard is sold off and lending accelerates, U.S. economic growth may remain stagnant.

Economic Fact

Get used to this reality: This century belongs to China. That country and its 1.3 billion people are leaping directly from the 17th to the 22nd century according to economic commentator Dennis Gartman. Growth in China is dwarfing the rest of the world with the rebirth of capitalism there.

The country's percentage of global GDP is moving rapidly up and to the right on the chart. In 1950 China's share of world GDP was only 4 percent vs. 27 percent for the U.S. and 26 percent for Western Europe. By 1990 the U.S. and European share had slipped to 23 percent and Japan's had jumped from 4 to 9 percent. Remember talk then, now laughable, of Japan as the world's most powerful economy? In 2007, while Europe slumped to 18 percent and the U.S. share held relatively steady at 22 percent, China's jumped to 10 percent. Japan's share fell to 7 percent.

Projecting this trajectory to 2015 finds China holding a 22 percent share while Europe falls to 15 percent and the U.S. to 17 percent. Don't panic. Global GDP will be a much bigger number by then, and the U.S. economy will remain important. But we will not be number one. As Gartman reminds us, for 28 of the past 30 centuries China was the world's largest economy. We are simply returning to the mean…

Foreclosures Force Lower New Home Prices

For the two decades prior to 2009, 16 percent of homes sold were new construction. Last year that ratio dropped to 7.6 percent. The culprit was cheap foreclosed houses.

Builders are fighting for market share by cutting prices. Cheaper land, faster construction cycles, and fewer frills are enabling some large builders to offer homes for one-third to one-half the prices of four years ago. Cost cutting tactics include standardization of floor plans, fewer window types/sizes, and cheaper kitchen cabinetry (see comment in the Sector Report below).

But foreclosures are not predicted to ease. One study by Standard & Poors estimates that five million houses and condominiums will go through foreclosure over the next few years. A total of 7.7 million households are behind in their mortgage payments. While many loans are being modified to enable owners to catch up on their payments, history suggests that 70 percent of these borrowers will eventually default.

Sector Report

Kitchen Cabinets

According to the KCMA's Trend of Business Survey, 2009 cabinet sales fell by 28.3 percent versus 2008. Semi-custom and custom cabinetry, usually installed in upper-priced new homes and remodeling jobs, were off 37.2 and 30.2 percent respectively. Stock cabinets, typically lower in price, were down only 24.1 percent perhaps reflecting builders' and consumers' search for value at less cost.

Of note is the improvement seen in December 2009. Sales were off only 9.8 percent.

This year cabinet sales are off 6.4 percent vs. January 2009.

The severity of the slump in cabinet sales is seen when one remembers this sector's performances in 2007 and 2008. Sales peaked in October 2006 then began a steady decline following the slumps in housing starts and remodeling. 2007 sales were down 8.3 percent. In 2008 sales dropped another 14.4 percent. Needless to say, the star of the value-added wood products industry from 2000 through 2006 has seen its radiance burn out. When things are too good to be true, they usually are… At the company level…

Masco Corporation, the largest cabinet producer in the U.S., reported 4Q2009 cabinet sales down 12.7 percent from the same period last year. Management expects housing starts to fall between 600,000 and 700,000 in 2010, up from the 554,000 last year. Their forecast of remodeling shows only modest improvement this year.
American Woodmark announced that 3Q2010 sales were off 32 percent vs. the same period last year. Gross margin plunged to 6.6 percent, down from 15.5 percent a year ago, and resulted in an operating loss of $14.6 million. The historical normal gross margin ranges from 20 to 25 percent. Last year the company chose to maintain a high level of production capacity in anticipation of a rebound in home construction and remodeling. That decision is now haunting Woodmark's profit and loss statement.

Home Furniture

First Signs of Furniture Recovery

According to the monthly sector survey by accounting firm Smith Leonard, shipments from U.S. furniture makers dropped only 1 percent in November 2009 vs. the same period last year. This performance marked the first month since June 2008 in which shipments were off less than 10 percent. Year to date shipments were off 17 percent vs. 2008.

Encouragingly, new orders were up 10 percent in November. October 2009 was the first month in which orders were not lower year-over-year.

As a result of these positive signs, furniture factory payrolls were down only 3 percent last November year-over-year.

In another positive sign, La-Z-Boy, known for its upholstery, reported 3Q2010 sales up 5.7 percent. This improvement was driven by the company's upholstery sales, which grew by 17.6 percent year-over-year. Culp, a key upholstery sector supplier, pre-released positive results for its 3Q2010 suggesting that sales will jump about 18 percent year-over-year on the back of a 34 percent jump in upholstery fabric revenues. La-Z-Boy is Culp's largest upholstery fabric customer.

Anecdotal evidence from several privately-held upholstery companies also indicate that sales are improving. Historically, upholstered furniture has led the furniture industry out of economic downturns due to its lower cost and shorter replacement cycle.

Is this news a coincidence or the first sign of a furniture sector recovery? Keep your fingers crossed…

At the company level results are mixed but improving…

Furniture Brands International announced that its 4Q2009 sales are expected to come in at $280-290 million, a decline of 28 to 30 percent year-over-year. While analysts have forecasted continued bottom line performance from the company, they are disappointed at the scope of the 4Q sales drop in comparison to competitor's comments that demand is improving (see story above). The conclusion is that FBI is simply losing market share and remains challenged at its high-end case goods businesses by Henredon, Drexel Heritage, and Maitland Smith. One analyst stated that FBI management has broken lots of eggs but has produced scrambled eggs rather than a soufflé.
La-Z-Boy reported that its case goods sales fell 14.5 percent in its 3Q. Management announced the merger of its Hammary division into sister companies American Drew and Lea. The combination will put most of La-Z-Boy's case goods products under one management team, enable further leverage of the parent company's supply chain, and result in cost savings.
Ethan Allen Interiors announced 2Q2010 sales of $143.3 million, down 24.4 percent. Gross margin dropped from 53.7 percent to 48.2 percent; operating margin, from 5.3 percent to a loss of 3.7 percent. Analysts continue to rank the company as "best in breed" among residential furniture firms. During the recession management has focused cost reduction but continued to invest in national advertising and other marketing initiatives.
Stanley Furniture, one of few remaining U.S. furniture makers with multiple case goods plants, reported a 4Q2009 loss of $1.28 million. Sales fell 20.8 percent to $39.9 million. For the full year, sales slumped by 29.2 percent to $160.5 million. As a result, the company had a net loss of $11.75 million vs. a profit of $3.74 million in 2008. Even as the company relocated production of its youth furniture line to its domestic plants, 150 hourly workers were laid off at its Stanleytown, VA, plant. Management sees no signs of any near-term improvement in sales but remains committed to domestic manufacturing.
Bassett Furniture Industries announced a profit of $2.6 million for its 4Q2009, up from a loss of $37.8 million in the same period of 2008. Sales for the quarter slid by 3.5 percent. For the full year, sales fell 19.2 percent to $232.7 million, and the net loss totaled $22.7 million. Management indicated that its efforts to reduce expenses and manage working capital are bearing fruit.
Upholstery and case goods producer Flexsteel recorded a profit of $2.9 million as residential furniture sales jumped by 7.7 percent in its 2Q2010. Total sales for the quarter were nearly $83.5 million with $62.6 million contributed by its residential furniture operations. Revenues of its domestic furniture division fell only 9.4 percent while its commercial furniture line dropped 33 percent.
Case goods importer Home Meridian has acquired Prime Resources International, a Wheeling, IL-based importer of wood furniture and leather seating. Home Meridian is the parent of Samuel Lawrence Furniture and Pulaski Furniture.
Case goods producer Moosehead Furniture ceased operations and has staved off a previously-scheduled auction of its assets by declaring Chapter 11 bankruptcy. The 60-year old company was set to close in September 2007 but was purchased by a group of local investors. At last count the company employed 22 workers.
Case goods manufacturer Sunny Designs of Tianjin, China, has initiated development of a 50-acre site, which will ultimately contain a million square feet of manufacturing and warehousing space. Capacity of the new site will be about 700 containers per month. The first phase includes a 400,000 square foot plant to produce case goods and upholstery. Employment in the first plant will be 1,000 and ramp up to 3,000 when the site is fully built out.

Office Furniture

BIFMA, the sector trade association, reported a 12 percent decline year-over-year in December office furniture orders. December shipments fell by 20 percent year-over-year vs. a 2 percent increase in 2008.

For the full year orders declined 30 percent compared by a 4 percent decrease in 2008 and 5 percent growth in 2007. Shipments were off 30 percent last year vs. 2 percent in 2008 and a 6 percent increase in 2007.

Industry shipments in 2009 were $7.845 billion, down from the most recent peak of $11.46 billion reached in late 2007 and the worst drop on record. Remember that the industry reached an all-time high in sales of $13.35 billion in early 2001.

The key economic drivers of office furniture demand — white collar employment, office construction, and corporate profits - remain mixed. The Architect's Billing Index for December came in at 43.4 vs. 34.1 for the same month in 2008. Unfortunately the Index has experienced 23 consecutive months below 50, the number dividing expansion and contraction.

As a result, BIFMA is forecasting declines of 2.3 percent in orders and 4.6 percent in shipments in 2010.

At the company level…

Steelcase reported its 3Q2010 sales at $616.1 million, down 24.1 percent from the same period last year. Extensive cost cutting efforts have resulted in a minor improvement in gross margin from 28.1 to 29.2 percent and a $14.8 million operating profit.
Herman Miller announced its 2Q2010 sales at $343.7 million, a decline of 27.9 percent from the same period last year. Management reported an improvement in new orders.
HNI Corporation announced that its office furniture sales for FY2009 were down 33.3 percent to $1.37 billion. Operating margin was also down to 4.9 percent from 3.7 percent in FY2008. In office furniture, the company's brands include Gunlocke, Paoli, HBF, and Allsteel.
Knoll, Inc. reported that its 4Q2009 sales declined by 33.4 percent. Despite that slump gross margin came in at 34 percent and operating margin at 6.2 percent. For the full year sales were down 30.4 percent. However the company's operating margin of 9.7 percent for the year ranked Knoll as the industry leader in terms of profitability. Analysts attribute this performance to aggressive product innovation and development. For example, sales of its new Generation chair are accelerating at twice the rate of its earlier introduction.

Wood Flooring

At the company level…

Mohawk Industries reported revenues in its Unilin flooring division up 2.1 percent for its 4Q2009. Operating earnings for that division were 8.5 percent, up from 2.8 percent in the same quarter last year.
Flooring retailer Lumber Liquidators announced 4Q2009 sales of $137 million, up 17.6 percent year-over-year. Operating income rose 4.6 percent to $11.6 million. Same store sales rose only 5.5 percent. Analysts are warning of possible cannibalization of sales by new stores as they open in existing markets.
Armstrong World Industries announced a 4 to 6 percent increase in wood flooring prices effective March 15. Management attributed the increase to rising lumber prices as well as transport and energy costs.

Art Raymond is senior vice president of operations at Hooker Furniture Corporation in Martinsville, VA, and longtime contributor to The Cutting Edge. Comments and questions are welcomed at araymond@hookerfurniture.com.

PUBLIC POLICY

Tax Reform — A New Approach, by John Satagaj, email@jsatlaw.com

Are you ready for a new tax system? Senators Ron Wyden (D-OR) and Judd Gregg (R-NH) think you are and they have introduced a comprehensive tax reform bill, S. 3018, to create one. There is no sign yet anybody else is ready, but their bill involves some new approaches that at least warrant a look under the hood.

If you are going to look under the hood or kick the tires, you do need a point of comparison. As I have said a number of times before, the general public thinks of the tax code in terms of the "marginal rates of taxation." These are the numbers we associate with tax brackets. However, you need to know your "effective rate of taxation" in order to evaluate any changes to the tax code. When you take into account all the deductions and credits, what is your effective rate of taxation? The effective rates of taxation for two companies of comparable size can vary tremendously because of the impact of different deductions and credits.

Senators Wyden and Gregg's bill calls for a major cut in the corporate tax rate structure, replacing the existing six corporate rates and eight brackets with a single flat rate of 24 percent. To get to that rate without losing tax revenues, the senators would eliminate a number of business deductions and credits all those things are important to calculating your actual effective rate of taxation.

Here's the list of the items they would eliminate, so you can figure out whether it might be a good deal for your company if you are organized as a "C Corporation": inventory property sales source rule exception; deferral of active income for controlled foreign corporations; reduced rates on first $10 million of corporate taxable income; deferral of active financing income; deferral of gain on non-dealer installment sales; special tax rate for nuclear decommissioning reserve fund; exception from net operating loss limitations for corporations in bankruptcy proceeding; excess of percentage over cost depletion for fuels; deferral of gain from disposition of electric transmission property to implement FERC policy; expensing of energy exploration and development costs; completed contract rules; tax credit for enhanced oil recovery costs; depreciation of equipment in excess of alternative minimum tax depreciation; lower of cost or market valuation method for inventory; deduction for punitive damages; section 199 production activity deduction; and advance refunding of 503(c)(3) and governmental bonds.

My first reaction when I read the list was "Hey, this might work." From what I know about your tax returns, I do not think there are many deductions or exclusions on the list that will find their way into your tax liability calculation. Probably the one that you might use is the "production activity deduction." The provision is the one that WMMA worked to get enacted several years ago. The provision "rewards" U.S. companies for their income generated by production in the U.S. by allowing them to reduce taxable income by a percentage of the U.S.-generated income.

There was one item on the list that did give me pause. The item is the elimination of "reduced rates on the first $10 million of corporate taxable income."

When I first came to Washington, one of the proudest accomplishments of the small business community was to secure a graduated corporate tax rate structure.

The current tax on taxable income of C Corporations is the sum of:

15 percent of so much of the taxable income as does not exceed $50,000;
25 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000;
34 percent of so much of the taxable income as exceeds $75,000 but does not exceed $10,000,000; and
35 percent of so much of the taxable income as exceeds $10,000,000.

In the current C Corporation tax structure, there is also a surtax that brings the effective rates closer to the marginal rates: "In the case of a corporation which has taxable income in excess of $100,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (i) 5 percent of such excess, or (ii) $11,750. In the case of a corporation which has taxable income in excess of $15,000,000, the amount of the tax determined under the foregoing provisions of this paragraph shall be increased by an additional amount equal to the lesser of (i) 3 percent of such excess, or (ii) $100,000."

The elimination of the graduated corporate rate structure levels the playing field, but it levels it upward for some smaller corporations, and each point reduction in the rate yields a lot more relief for a corporation with taxable income over $10 million dollars currently paying a 35 percent rate.

Those appear to be the critical items for you to consider if you are a C Corporation. S Corporations have a more challenging assessment assignment. Since S Corporations pass on their income to shareholders, the income is taxed within the individual tax system. While S Corporation shareholders do not get the advantage of the lower corporate flat rate, they do lose some of the deductions on the Wyden/Gregg elimination list. For example, S Corporation shareholders can utilize the domestic production deduction to lower their taxable income.

The good news is that the proposal caps the top individual rate at its current temporary level of 35 percent. The 35 percent is scheduled to rise back up to 39.6 percent at the end of this year, automatically, with no congressional action required.

Their bill would cut the number of tax brackets for individuals from six to three-5 percent, 25 percent, and 35 percent-and eliminate the Alternative Minimum Tax. In return, individuals would give up a variety of credits and deductions, such as those permitting the exclusion of employee meals and lodging; benefits under cafeteria plans; miscellaneous fringe benefits; employee awards; income earned by voluntary employees' beneficiary associations; and premiums on group term life insurance, accident, and disability insurance. The bill would also eliminate the deferral of interest on savings bonds, the deduction for moving expenses, and the miscellaneous itemized deductions subject to the 2-percent floor.

Another change that could affect an S Corporation shareholder's assessment of the proposal has to do with capital gains taxation. Instead of a special rate for capital gains, gains would be taxed at the individual regular rates, but they would allow for 35 percent exclusion for such gains. They would also cut the holding period to six months for the first $500,000 of a taxpayer's capital gains income in order to be eligible for the exclusion.

Snowmageddon Thwarts Third Annual WE & WP Public Policy Fly-In

Preparations for the annual Fly-In to Washington DC were extensive and expectations of members who made travel plans and legislative meeting appointments were high. The meeting, however, was canceled because of multiple snowstorms in the mid-Atlantic region which caused record snowfalls in Washington DC, paralyzed travel and brought the federal government to a stop.

Members are reminded that they can continue to advocate for their issues with their legislators throughout the year.

Keep informed with WMMA Legislative Counsel John Satagaj's timely updates. These include the monthly publication, Washington Report, which he will email directly to interested members at the beginning of each month, and the Small Business Legislative Council Weekly Report. If you have not already informed Association Headquarters you would like to be on the distribution list, please contact us.

INTERNATIONAL BUSINESS DEVELOPMENT

U.S. Government Goal: Doubling of Exports over the Next Five Years

In February, Commerce Secretary Gary Locke unveiled details of President Obama's National Export Initiative (NEI). The goal is the doubling of exports over the next five years to support two million jobs in America. The NEI will help provide more funding, more focus and more cabinet-level coordination to grow U.S. exports. The NEI represents the first time the United States will have a government-wide export-promotion strategy with focused attention from the president and his Cabinet. Three key areas are:

A more robust effort by this administration to expand its trade advocacy in all its forms, especially for small- and medium-sized enterprises. This effort includes educating U.S. companies about opportunities overseas, directly connecting them with new customers and advocating more forcefully for their interests.
Improving access to credit with a focus on small- and medium-sized businesses that want to export.
Continuing the rigorous enforcement of international trade laws to help remove barriers that prevent U.S. companies from getting free and fair access to foreign markets.

Click here for more information.

BUSINESS DEVELOPMENT

Industry Information for Members Only

Bookmark this page http://www.wmma.org/members/model/forecasting_tools.cfm to access more information and monthly reports! Use your member username and password. Contact Association Headquarters if you need assistance.

Construction Put in Place – January 2010
Manufacturing ISM Report on Business
Manufacturer's Shipments, Inventories and Orders – December 2009
Manufacturing and Trade Inventories and Sales – December 2009
New Residential Construction – January 2010
Purchasing Managers Index – February 2010
U.S. Leading Indicator – January 2010

NEWS YOU CAN USE

NAM Launches New Brand and Website

The National Association of Manufacturers (NAM) has launched a new logo, branding and website.

WMMA is an active member of NAM and is on the board of its Council of Manufacturing Associations.

As the voice of all manufacturing in the United States, the NAMs' mission is to achieve an economic environment that promotes jobs creation and encourages the expansion of manufacturing in the United States. NAM believes the new branding — communicated across all of its media platforms — better reflects modern manufacturing, from the issues to the products to the people we represent.

NAM is especially pleased by the new website, www.nam.org. Developed with extensive input from NAM members, it seeks to portray the face of modern manufacturing in the United States.

Manufacturing Is Essential for Economic Growth and Prosperity but Faces Big Challenges, According to New Report

Recommends Strategies to Create Manufacturing Jobs

As U.S. manufacturers struggle to recover from the brutal recession, a January 2010 report finds that manufacturing fuels economic prosperity but requires pro-growth policies to create jobs and remain globally competitive. The report released by the National Association of Manufacturers (NAM) and the Council of Manufacturing Associations was written by economists Joel Popkin and Kathryn Kobe. WMMA is a sponsor of the report and two previous reports in the series that feature data and analysis about the importance of U.S. manufacturing to the nation's economy.

Click here to read a summary.

Click here to read the report.

Jobs for America: Investments and Policies for Economic Growth and Competitiveness

A major new analysis makes a powerful case that manufacturing can lead the United States into a renewed era of growth — if Congress enacts policies to promote U.S. competitiveness. Jobs for America: Investments and Policies for Economic Growth and Competitiveness conducted by the respected Milken Institute offers a depth of analysis tying economic investment to job growth. Through it, the authors demonstrate the critical need to reduce corporate tax rates, establish a permanent R&D tax credit, make major investments in energy and transportation infrastructure, and modernize the U.S. system of export controls.

What are some of the report's policy prescriptions?

Reducing the U.S. corporate income tax to match the average of other industrial countries (OECD nations) would trigger new growth. By 2019, it could boost real GDP by $375.5 billion and create an additional 350,000 manufacturing jobs — total employment rising by 2.1 million.
A permanent R&D tax credit, increased by 25 percent, could boost real GDP by $206 billion (1.2 percent) and generate 316,000 manufacturing jobs.
Modernizing U.S. export controls could increase exports in high-value areas, enhancing real GDP by $64 billion by 2019 and creating 160,000 manufacturing jobs.

Click here to read a summary.

Click here to access the full report.

IWF 2010 UPDATE

IWF 2010 Announces The Challengers Award Call for Entries

The call for entries for the 2010 Challengers Distinguished Achievement Awards®, competition is officially underway with the entry deadline set for April 1, 2010. Over sixty exhibiting companies have requested entry packages for the 2010 competition as of this date. New for 2010 the Challengers Award® finalists and winners will be recognized all 4 days in a highly visible display area on the show floor. The special area will provide buyers and the media information about the 2010 finalists and winners.

Click here for more information.

ASSOCIATION NEWS

WIC 2010 — Save $100 When You Register Before March 18!

Click here to see what your peers have to say about WIC 2010!

New! Member Central — WMMA Web Site Continuous Improvements

Members Only has been transformed into Member Central.

The new Member Central has an easier way to access information and is a robust resource for all kinds of information to help you operate your business, including:

The Business Model to help find programs and services by business function — in executive management, sales and marketing, market research, finance and accounting, operations and supply chain, human resources, and public affairs.

Each business model function starts with a "Spotlight" to emphasize a new, timely or popular program or service. Next, a table of contents, entitled "Member Programs, Services and News You Can Use" will help you navigate to the specific item description and links to detailed information.
Association Affairs provides information to help you take advantage of your WMMA membership.
The Virtual Corner consolidates information on archived and upcoming educational webinars and resources.
The Best Practices Forum is an exclusive, for- members- only online community. Current conversations on issues impacting your company such as industrial dust, non-wood markets, overcoming export hurdles, and trade show exhibiting are currently underway.
The WMMA Committees, for volunteer committee guidelines, committee lists, roadmaps, meeting minutes, dates of upcoming meetings, and agendas. WMMA is member driven and there is no better way to network and have an impact than getting involved in a committee.
WMMA-At-A-Glance, for WMMA leadership and governance information as well as a WMMA-members-only IWF information

And don't forget to look for News You Can Use! at the Member Central home page for general announcements and exclusive offers.

Use your member username and password. Contact Association Headquarters if you need assistance.

Give us your feedback on these enhancements!

2010 Dues — Last Chance!

In order to remain a member in good standing and be eligible for the IWF 20 percent booth discount, current year dues must be paid in full by April 30th.

MEMBER NEWS

MultiCam, Inc. Appoints Kris Hanchette as President and General Manager

The MultiCam Board of Directors has named Kris Hanchette as president and general manager of the company. He will be responsible for strategic direction and daily operations.

"Kris is a very strong leader with an in-depth knowledge of all aspects of MultiCam's business," said former President Ken Koelling. "He has earned the respect of MultiCam business partners, customers, and the Company's employees. In his new role, Kris will continue to grow the company through product development and disciplined global expansion, while providing the best value, products and services to our customers. On behalf of the board, I congratulate Kris on his new role."

Contents

The Cutting Edge™ Newsletter March 2010

BUSINESS BRIEFING