BUSINESS BRIEFING

One of the purposes of WMMA is to present educational opportunities to member companies in existing and emerging manufacturing and management techniques. Learning about these techniques will help interested members in two important ways: (1) to be more competitive in their own operations and (2) to understand the manufacturing and management practices being implemented by their customers.

One prevalent philosophy being employed in numerous operations is the lean enterprise. Lean practices, aimed at eliminating waste and extracting the maximum use out of every input, were first applied by Henry Ford in the early days of mass production. Later, following World War II, Japanese companies led by Toyota developed a complete production system based on Ford's ideas and supplemented by quality gurus Edwards Deming and Joseph Juran.

While researching the world manufacturing practices, James Womack and his team studied the Toyota Production System (TPS). Their research resulted in the landmark 1990 book, The Machine That Changed The World, and the term lean production. The efficiency practices that evolved from the TPS are now applied throughout companies from the front office to the plant floor and are often referred to as the lean enterprise.

Womack has gone on to form The Lean Enterprise Institute (LEI) to develop and test lean practices then teach these techniques to those interested in the lean way. The Institute's web site, www.lean.org, provides a wealth of information on the lean philosophy and how to implement it. These resources include webinars (some with accompanying podcast) and a Knowledge Center containing thousands of articles on lean basics and discussions on applications in specific business sectors/functions. LEI also holds regular, one-day workshops covering lean basics such as 5S, value stream mapping, continuous improvement, and problem solving.

Successful implementation of lean has improved the profitability of numerous manufacturers around the world. WMMA members should be aware of the lean enterprise. Look for a short survey to determine the extent of your lean knowledge, the level of implementation at your company, and your need for more lean education.

Making Softwoods More Durable

Softwoods like pine, spruce, and fir are harvested primarily from sustainably managed forests. This class of trees, also known as conifers, is fast growing and accounts for about 80 percent of the world's timber resource.

The downside of softwoods is their lack of durability - the wood cannot be used outdoors without being treated with toxic preservatives to protect against insects and fungi. These chemicals eventually leach out of the wood into the water supply.

To increase softwoods' usefulness requires an environmentally friendly method of making softwood harder and more durable. A Norwegian company called Kebony has opened its first plant that treats softwood with furfuryl alcohol, which is made from a by-product of sugarcane processing. The process is basic pressure treatment combined with heat that converts the alcohol into a resin. That resin thickens and strengthens the wood's cell wall. Another firm, Titan Wood, in the Netherlands has developed a process for converting the hydroxyl groups naturally occurring in wood into acetyl groups. This process involves kiln drying followed by treatment with acetic anhydride. The treated wood no longer shrinks and swells, retains its shape, and is not recognized by some insects.

Both products are recyclable and hard. While initially more expensive, the cost of these new products when spread over the economic life of garden furniture, window frames, and siding is one third that of conventionally treated wood.

Once more, wood is proving itself a wonderful, renewable natural material.

U. S. House Passes Pro-Hardwoods Resolution

The House of Representatives has passed Resolution 81, non-binding legislation that urges American hardwood products be given "full consideration in any program directed at constructing environmentally preferable commercial, public, or private buildings" because U.S. forests are a legal, abundant, and sustainable resource. Fifty Representatives co-sponsored the resolution, which was led by the Hardwood Federation and Representative Brad Ellsworth (D-Ind.).

More on the New GM

Where does the rescue of the U.S. motor car industry end? The new GM, recently saved from the scrap heap by billions of Federal money, has now loaned $100 million to a key supplier, American Axle & Manufacturing. In addition, GM paid its supplier $110 million associated with its own bankruptcy last June.

American Axle also negotiated more favorable terms with its lenders, a group led by J.P. Morgan Chase and Bank of America. Combined with the GM funds, the new credit facility is designed to stave off an American Axle bankruptcy filing.

But this refinancing is coming at a steep price. American Axle will pay GM 12 percent over the London interbank offered rate with a floor of 2 percent. That's a minimum interest rate of 14 percent.

Sector Report

Kitchen Cabinets

According to the KCMA's Trend of Business Survey, August cabinet sales fell by 27.2 percent versus the same month last year. Year-to-date cabinet sales have dropped 31.3 percent vs. 2008. Through August 2009 stock cabinet sales are down 26.8 percent, custom sales down 36.8 percent, and semi-custom sales off 34.4 percent.

At the company level…

• American Woodmark reported 1Q2010 sales of $100.8 million, down 27.5 percent from the same period last year. Gross margin fell to 11.7 percent from 15.9 percent; operating margin, from breakeven to a loss of 7.7 percent. On the back of heavy promotional activity at their large retailers, sales during the previous two quarters had stabilized. Without such support, sales fell back in line with the cabinet industry.

Home Furniture

Lessons Learned from Cabinetmakers

At long last the U.S. wood furniture industry is employing a strategy long used by domestic cabinetmakers to defend their turf: product customization. The restructuring of production facilities to enable fast delivery of customizable product offerings allowed U.S. cabinet companies to keep imports to less than 5 percent of the U.S. market.

Several furniture producers have announced the availability of "custom" products:

• Ethan Allen is transforming their domestic wood operations into a custom business that "provides great products with unparalleled options at affordable prices." The company has five furniture plants and one saw mill in the U.S. and produces about 65 percent of its line in this country. Management called the transition from a make-to-stock production philosophy to one supporting custom ordering a "monstrous challenge". The transformation will begin with finish and hardware choices and "incrementally provide more options" such as different legs and drawer fronts. The company aims to make its custom products affordable for middle America.
  
  
• Henredon Furniture Industries has broadened its product offering with a finishing program giving customers choices beyond its standard finishes. Currently 16 painted finishes and three levels of distressing are offered. Many of the products are imported fully finished and assembled requiring the company to disassemble and wash off the unwanted finish.
  
  
• Stanley Furniture announced that production of its Young America youth line will be moved to its Robbinsville, NC, plant. The line currently sources about 25 percent of this line from China and Vietnam. The domestically produced line will be available in 60 finish options. With machining and assembly located in the U.S. the consumer can mix and match styles and colors to suit their home. Two critical side benefits of this move will be improved quality control and quick order fulfillment.

If successful, the move to a customization strategy will, by default, bring more domestic furniture manufacturing. Don't expect the immediate rebirth of U.S. production. Few competitive plants with the flexibility to change from make-to-stock to an efficient make-to-order system remain in operation. But this shift bears watching. Keep your fingers crossed.

Furniture Factory Orders Drop

New orders at U.S. residential furniture plants fell 16 percent in June versus the same month last year. For the first half of 2009 orders and shipments were down 20 percent.

Global Recession Hits Italian Furniture Makers

Italy is one of the largest producers of furniture in the world, and its Northeast has long been a major center of wood chair making. With global demand for furniture depressed, hundreds of chair makers in that area are closing.

According to a report on National Public Radio, only 800 of the 1,200 chair factories that operated a few years ago remain in business. Before this downturn the region supplied 30 percent of world chair production, most of which was exported.

The industry trade association predicts that 100 more chair plants will be shuttered before the end of 2009.

California Furniture Industry Seeks CARB Rule Extension

The existing CARB rules limiting formaldehyde emissions set a July 1, 2010, deadline for furniture using panelboard compliant with phase one limits. The problem is the economic downturn that has left many distributors and manufacturers with non-compliant board.

Complaints by the industry have resulted in a survey of panel distributors by CARB officials to determine how much non-compliant inventory remains in the pipeline. Findings of that survey have not been released.

The Western Home Furnishings Association is now lobbying to extend the sell-through deadline until July 1, 2011. That group is conducting its own survey of furniture retailers to estimate their non-compliant stocks.

And CARB Rules Set to Become a U.S. Standard…

Senators Klobuchar (D-Minn) and Crapo (R-Idaho) have introduced a bill to establish the first national standard for formaldehyde emissions. The basis of this bill is the standard set by the California Air Resources Board (CARB).

Senate Bill 1660 will give the U.S. EPA responsibility for testing, certification, recordkeeping, and enforcement. This legislation will add a new section to the Toxic Substances Control Act and will require the EPA to enact the national rule by 2011.

At the company level…

• Global furnishings giant IKEA reported that its FY2009 sales grew 1.4 percent to $30 billion versus growth of 7 percent in the previous year. The company opened 15 new stores worldwide during the year.
  
  
• La-Z-Boy Inc. announced 1Q2010 sales of $262.7 million, down 18.3 percent from the same period last year. Upholstery, casegoods, and retail segments dropped 17 percent, 25.5 percent, and 15.2 percent respectively. Gross margin increased to 30.6 percent vs. 25.1 percent year-on-year. Operating income jumped to $2.6 million from a loss of $13.2 million last year. Industry analysts highlighted the 8.3 percent operating margin in upholstery and narrower losses in casegoods and retail.
  
  
• Hooker Furniture posted a 28.9 percent sales decline in its 2Q2010 and a net loss of $463,000. The company is closing its 80,000 square feet Carson, CA, warehouse.
  
  
• Ethan Allen Interiors announced its 4Q2009 sales of $138.7 million, down 41.2 percent. Gross margin dropped from 54.2 percent to 48.7 percent; operating margin, from 8.1 percent to a loss of 14.7 percent. Sales at company-owned retail stores fell 42.1 percent. These stores are being rechristened design centers under a new strategy aimed at transforming the company into an interior design resource. This initiative will recruit independent interior designers to utilize Ethan Allen design centers. Commissions will be paid on sales by these decorators. Combined with the move toward customization (see story above), the design center plan aims to differentiate the company from the traditional furniture retail network.
  
  
• Flexsteel announced a profit of nearly $800,000 in spite of a 25.9 percent drop in total sales in its 4Q2009. Sales of its domestic furniture division fell only 14.8 percent while its commercial furniture line dropped 33 percent.
  
  
• Bassett Furniture posted a $9.9 million loss in its 2Q2010. Sales for the quarter totaled $57.7 million, down from $74.9 million in the same quarter of FY2009.
  
  
• Casegoods producer Vaughan-Bassett is reopening its Elkin, NC, plant, which was mothballed earlier this year. The move will help the company fulfill its commitment of delivering its products within seven days in the Eastern U.S. The company plans to rehire about 40 workers out of the 400 employed before the closure. The Elkin plant will assemble and finish parts machined there as well as at the company's Galax, VA, plant. The company has also invested $2.5 million in a new rough mill at Galax.
  
  
• Upholstery maker Caye Home Furnishings plans to invest $1.4 million in a new plant in Taylorsville, NC. The new operation will employ 130 workers within three years. The company operates the Stratford and Stratolounger brands and has its main manufacturing base in Mississippi with facilities in China, Florida, plus a second North Carolina plant.
  
  
• Harden Mfg. has acquired certain assets of Rhino Rooms to expand its offering of promotional wood furnishings.
  
  
• Upholstery producer Klaussner Home Furnishings announced the closure of its La Mirada, CA, plant effective in mid October. The 175,000 square feet plant was formerly operated by Golden Oaks. The closing will affect 84 employees. Production will be shifted to the company's Iowa and North Carolina plants.
  
  
• Furniture maker Robert Bergelin Co. is closing its 40,000 square feet, Morganton, NC, plant and ceasing operations.
  
  
• Canadian furniture maker Dorel reported its 2Q2010 profits down 21 percent on a 7.2 percent sales decline. The company owns the Ameriwood, Ridgewood, and Charleswood brands.
  
  
• Coatings supplier Sherwin-Williams has opened its fourth coatings factory in Asia at Zhaoquing, China. The company also operates six blending plants and a R&D center in the region.

Office Furniture

BIFMA, the sector trade association, reported a 33 percent decline year-on-year in August office furniture orders. Year-to-date orders have fallen 33 percent.

August shipments fell by 32 percent y-o-y vs. a 4 percent decline in 2008. Year-to-date shipments have declined 30 percent.

Trailing 12-month orders were down 25.5 percent year-over-year, the largest percentage decline since 1980.

Industry shipments over the past twelve months were $8.935 billion, down from the peak of $11.46 billion reached in late 2007. Shipments are approaching the $8.47 billion rate achieved in late 2003 following the dot.com bubble explosion.

The association's forecast shows 2009 and 2010 orders declining 32 percent and 1.9 percent respectively. Shipments during that two-year period will drop by 31 percent and 1.4 percent. Positive growth is seen returning in 3Q2010.

Office furniture demand typically lags the broader economy by three to four quarters.

Companies are experiencing breathtaking declines in sales…

• Steelcase reported its 2Q2010 sales at $578.1 million, down 35.9 percent from the same period last year. North American revenue fell 35.4 percent; international sales, 41.9 percent. The result was a $1.0 million loss at the operating income level.
  
  
• Herman Miller announced its 1Q2010 sales at $324 million, a decline of 32.4 percent from the same period last year. North American sales fell 31.9 percent; international, 40.4 percent. Gross margin fell to 33.2 percent while operating income dropped from 11.8 percent to 4.4 percent.

Wood Flooring

According to market researcher The Freedonia Group, demand for hard surface flooring including wood is forecast to increase 4.6 percent annually from its current weakness to 9.6 billion square feet in 2013.

Non-Residential Construction

The American Institute of Architects' Architecture Billings Index (ABI) fell to 41.7 in August, down from 43.1 in July. This performance marks the nineteenth consecutive month that the ABI has been below 50 - the demarcation line between expanding and contracting construction activity.

The ABI is a leading indicator of construction activity. Good business at architectural firms precedes actual construction of office, manufacturing, school, and health care facilities by months, even years. Combined with tight credit (see story above) this long lead time means recovery in this construction category is some time off.

Art Raymond is a manufacturing consultant specializing in furniture, cabinetry, millwork, and other value-added wood products. His firm, A. G. Raymond & Company Inc., develops management and technical solutions for wood products manufacturers around the world. Comments and questions are welcomed at araymond@raymondnet.com or through www.raymondnet.com.

PUBLIC POLICY

With all the hoopla on health care reform, Congress has not paid much attention to other tax issues. I have talked repeatedly about the estate tax relief situation, but there are a few other critical tax issues of interest to us.

The temporary increase in the income levels at which the Alternative Minimum Tax (AMT) applies is about to expire again. Since many WMMA members are organized as S corporations, the personal AMT is of direct interest. The personal AMT applies to income received from the S Corporation. Forty years ago, the term "AMT"—Alternative Minimum Tax—was something rich people had to worry about. The AMT was first enacted in 1969, following Congressional testimony by the Secretary of the Treasury reporting that 155 high-income individuals paid no federal income tax in 1966.

The basic concept of the AMT is that certain tax "preferences" that reduce a taxpayer's "regular" tax liability are thrown out, and the taxpayer recalculates the AMT tax liability and pays the higher amount of the AMT or regular tax. Examples of "preferences" include such items as a depletion allowance for mineral rights and intangible oil drilling costs as well as deductions for state and local taxes and miscellaneous itemized deductions; these latter types of preferences helped pull millions of "average" taxpayers into the AMT.

The problem is compounded by the fact that the income levels at which the AMT is applied were never indexed for inflation. So the few wealthy taxpayers of 1969 have grown into millions of ordinary taxpayers. It is this problem that Congress has tried to fix or "patch" on a temporary basis by raising the income levels at which the tax applies.

Most recently, Public Law 111-5, the American Recovery and Reinvestment Act, extended the temporary increases in the income level at which the AMT applies. The law increased the AMT exemption amounts to $46,700 (individuals) and $70,950 (married filing jointly) for tax year 2009.

The bad news is that if Congress does not do something, in 2010 the income exemption amounts revert to $33,750 (individuals) and $45,000 (married filing jointly).

Internal Revenue Code (IRC) Section 41 provides for a research tax credit equal to 20 percent of the amount by which a taxpayer's qualified research expenses for a taxable year exceed its base amount for that year. There are also an alternative incremental credit and an alternative simplified credit. While most business owners use the phrase "research and development (R&D)," Section 41 relies on IRC Section 174 for definitions. IRC Section 174 provides for a deduction for "research and experimentation (R&E)" expenditures.

Year in and year out, the R&D credit has been a ping-pong ball in the extender debate. Public Law 110-343, the Emergency Economic Stabilization Act, extended the "regular" credit through 2009, extended the alternative simplified credit through 2009 and modified it for 2009, and extended the alternative incremental research credit for 2008 only. In his Fiscal Year 2010 proposed budget, the President recommended that Congress make the credit permanent.

H.R. 422, introduced by Representatives Kendrick Meek (D-FL) and Kevin Brady (R-TX), and S. 1203, introduced by Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), extends the "regular" R&D credit for one more year and makes permanent the alternative simplified credit and increases it to 20 percent.

The third issue involves the direct expensing allowance we know as "Section 179."

Congress has seen fit over the years to recognize the value of Section 179 by increasing the amount that can be written off as a direct expense. The amount that could be written off originally was to be no more than $25,000, and the asset cap at which the allowance was phased out was set at $200,000. In 2003, the Jobs and Growth Tax Relief Reconciliation Act included a temporary increase that raised the direct expensing allowance for business from $25,000 to $100,000 for 2003, 2004, and 2005. The provision's phase-out threshold was increased from $200,000 to $400,000 over the same time period. In 2004, the American Jobs Creation Act extended for two years, through 2007, the increases in the direct expensing allowances and the phase-out threshold. In 2007, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act increased the $100,000 and $400,000 limits to $125,000 and $500,000, respectively, for taxable years beginning in 2007 through 2010. These amounts are to be indexed for inflation in taxable years beginning after 2007 and before 2011. With indexing, the amounts for 2008 were scheduled to be $128,000 and $510,000, respectively. In 2008, the Economic Stimulus Act increased the $128,000 and $510,000 amounts under Section 179 for taxable years beginning in 2008 to $250,000 and $800,000, respectively. In 2009, the American Recovery and Reinvestment Act extended the temporary increases of 2008 through 2009.

Unless Congress chooses to act to extend the increases or make them permanent, in 2010 they will return to the 2007 levels of $125,000 and $500,000, indexed. In 2011 the amounts revert to pre-2003 levels of $25,000 and $200,000.

A lot on the plate!

WMMA Joins the Permanent Estate Tax Relief Now Coalition

In September, WMMA board members Peter Perez, Carter Products, and Mark Chappell, Alexander Dodds Company, met and discussed with U.S. Senator Debbie A. Stabenow (D-MI), the need for congressional action on estate tax relief. This followed WMMA's joining the Permanent Estate Tax Relief Now Coalition. The coalition calls on Congress to act to provide estate tax planning "peace of mind" for all small business owners by enacting permanent estate tax relief. Specifically, the coalition asks that Congress should adopt a permanent individual "exemption" of $3.5 million (indexed for inflation) from the estate tax and a top marginal estate tax rate of 45 percent.

If Congress does not act, the estate tax will be repealed for one year and re-instated thereafter in a more devastating form. A temporary one year extension of the current temporary levels will not help small businesses. What does it mean for a small business owner? The answer is continuing with expensive and extensive estate tax planning.

Click here to continue.

2010 Public Policy Top Issues

WMMA Committees meeting recently in Chicago chose the following top issues of concern:

• Card check
• Ergonomics
• Estate tax relief
• Industrial dust

Learn more about these issues.

INTERNATIONAL BUSINESS DEVELOPMENT

The 50 states spend a combined total of approximately $100 million each year helping state businesses create jobs at home by selling products abroad.

Many of you may think (not me, of course) the taxpayer funded assistance seems to be little more than window dressing to satisfy the political necessities of responding to local business complaining that their state spends too much effort and money in attracting foreign competition to its area. And, sure, many of the services mimic those provided by the federal government, like the U.S. Department of Commerce or the Small Business Administration. And, like with the DOC and SBA, you may have the opinion that the services can be inconsistent and mediocre.

However, there are a number of states that offer very competent and useful programs. States are generally more flexible than the Feds and assistance provided can be more targeted and timely. And, unlike the Feds many state governments recognize that the biggest carrot they can offer smaller businesses is funding to support their efforts. This makes a call on your state office of international trade (or whatever it may be called) well worth the time.

Just about all states maintain overseas offices to support exporting efforts. While most states maintain less than five offices, there are a few that have 10-15. The range of services offered usually include developing basic product market research, identifying potential buyers and dealers, advising of barriers to entry, setting up appointments against your objectives as well as other on the ground facilitation services. In most cases the service is free; some charge a nominal fee. What separates most states from the U.S. DOC Foreign Commercial Service is their flexibility and, in many cases, their responsiveness. At the state level there usually is direct link between the services offered, the state business and the Governor's office making the incentive to satisfy the local business much greater.

Domestically, state offices provide a number of services, some of which overlap or duplicate those offered by the U.S. Department of Commerce. Again, market research, counseling, sponsoring workshops, overseas trade missions and organizing pavilions in overseas trade fairs are common ones. What separates them from the Feds are:

1. The closer relationship between the domestic and overseas offices and the flexibility (in the better offices) to provide more focused and timely attention; and
2. Some states provide grants or reimbursements to business for export undertakings.

The following are some examples:

Maryland

Companies that receive an ExportMD Award are eligible for up to $5,000 in reimbursement for expenses associated with an international marketing initiative as described in a proposal that they file with the Office of International Trade and Investment. In addition, to assist with executing their initiative, companies can also receive up to 40 hours of assistance from their contracted overseas trade experts located in 11 countries (Canada, Brazil, China, France, India, Israel, Japan, Korea, Montenegro, South Africa and Taiwan).

Indiana

The Trade Show Assistance Program (TSAP) provides financial assistance for small Indiana businesses to participate in international trade shows. The maximum amount of funding is $5,000, or 100 percent of exhibit space rental fees, whichever is less. Companies may not receive more than $5,000 in funding per fiscal year. The State Fiscal Year runs from July 1 through June 30. Funding for trade shows is limited to one (1) show per company per fiscal year.

Oregon

Through the Oregon Trade Promotion Program (OTPP), Business Oregon will reimburse up to 50 percent of a company's eligible expenses up to $2,500 per pre-approved strategic event.

Wisconsin

The Wisconsin Department of Commerce Trade Show Grant Program provides up to $5,000 to local small- and medium-sized manufacturers for exhibiting at international trade shows.

While the core mission of state trade agencies is to support exporters, these agencies also play an important ancillary role in coordinating broader international partnership programs involving universities and other state agencies. In addition, as international trade negotiations have begun to embrace service industries and other economic sectors traditionally regulated by states, it has become important for state governments to play an active role in advocating their interests in the development of national trade policy and the negotiation of individual trade agreements.

The bad part about state programs is that they are much more fragile that those at the Federal level. Programs can change quickly and when state coffers are suffering many business development programs are axed. So while the above examples were advertised at this writing, they could be gone tomorrow. On the other hand some states see it in their best interest to prime the business pump when times are tough and export development/promotion is a good example of a service that the local business can profit by. So again, contact your local export development office.

To make things easy there is an association that has a list of all state export promotion offices. The State International Trade Organizations, SIDO (www.sidoameriac.org), is a non-profit, nonpartisan organization, affiliated with The Council of State Governments (CSG) that is comprised of international economic development practitioners and professionals from state and related organizations across the country. Its objective is to share best practices among state agencies, provide professional development for trade directors, and advocate the role of states in international trade. A page on their site, http://www.sidoamerica.org/directory/directory.htm, provides you with map and list of each state office of export development including name, phone and email contacts. The rest is up to you.

BUSINESS DEVELOPMENT

WMMA-ITR Fall 2009 Economic Forecast Report
Construction Put in Place — August 2009
Manufacturer's Shipments, Inventories and Orders — August 2009
Manufacturing and Trade Inventories and Sales — July 2009
Manufacturing ISM Report on Business
New Residential Construction — August 2009

To access all of the monthly economic reports, please log on to this page: http://www.wmma.org/members/bus_develop.cfm, using your member username and password.

NEWS YOU CAN USE

Business Development Conference & Official U.S. Department of Commerce Trade Mission

Register Your Interest Now! Visit http://www.buyusa.gov/northcarolina/ tradewindsbrazil.html

Why the Americas?

One of the most lucrative regions in the world for U.S. companies is the Americas. The countries in North America, Central America, and South America bought more than $525 billion worth of U.S. merchandise in 2008, up 11 percent from 2007. If you are new to the Americas or are looking to tap new markets, the U.S. Commercial Service's signature Trade Winds Forum is a launching point for expansion throughout the region. This year's forum will be held in Brazil, a leading U.S. trade partner and the economic engine of South America.

Connect to a World of Opportunity in the Americas

As an official U.S. Department of Commerce multi-sector trade mission, Trade Winds offers participants a unique venue for connecting to business opportunities across the Americas.

• Take part in a focused dialogue on business issues in the NAFTA, CAFTA-DR, Andean, and Mercosur common markets.
• Meet one-on-one with U.S. Commercial Service (CS) senior commercial officers from the U.S. Embassies and Consulates of 18 markets in the Western Hemisphere for guidance on trade leads and market entry strategies.
• Pre-screened customized business-to-business appointments in your specific industry sector with prospective customers, agents and joint venture partners in Brazil.

Two Registration Options

Option A:

• Business conference
• Prearranged consultations with CS senior commercial officers
• Prearranged business-to-business meetings with Brazilian firms in 1 of 5 select markets in Brazil
• $1,950 for small companies (less than 500 employees)
• $2,850 for large companies (greater than 500 employees)

Option B:

• Business conference
• Prearranged consultations with CS senior commercial officers
• $850 for all participants

Additional business-to-business appointments throughout the Americas may be scheduled immediately before and after the event.

Visit http://www.buyusa.gov/northcarolina/tradewindsbrazil.html

Webinar Series on Brazil and Latin America

Visit http://www.buyusa.gov/westvirginia/twws.html for more information and to register.

• Doing Business in Brazil - Market Overview and Strategic Opportunities
  Friday, October 16, 2009; 11:00AM-12:00PM
  
  
• Exporting to South America — Best Prospects in Argentina, Uruguay, Chile, Peru, Ecuador, Colombia and Venezuela
  Monday, November 16, 2009; 11:00AM-12:00PM
  
  
• Doing Business in Brazil - Financial and Legal Considerations
  Wednesday, December 16, 2009; 11:00AM-12:00PM
  
  
• Exporting to Central America - Best Prospects in Panama, Costa Rica, Honduras, El Salvador and Guatemala
  Friday, January 15, 2010; 11:00AM-12:00PM
  
  
• Doing Business in Brazil - Negotiation and Partner Agreements
  Monday, February 8, 2010; 11:00AM-12:00PM
  
  
• Exporting to North America/Caribbean — Best Prospects in Canada, Mexico, Dominican Republic, Jamaica and Trinidad & Tobago
  Monday, March 15, 2010; 11:00AM-12:00PM

Cost per company: $225 for the entire series/$45 for each webinar.

New Resume Posting Service

The WMMA Career Center — where member companies can post job openings and find out about employee scholarship opportunities — has an exciting new feature. Individuals with experience in the wood machinery, equipment and tools industry may have their resumes posted in a special members' only section.

As a benefit of membership, only member companies can access this page to browse posted resumes. Simply log in with your username and password. Contact directly those people whose credentials and skills are of interest.

Professionals from diverse areas of the industry are welcome to send their resumes for posting on this members' only page. Member companies will be able to view your resume and contact you directly with the contact information you supply. Send resumes to info@wmma.org for consideration.

ASSOCIATION NEWS

A new WoodLINKS school, St. Clair High School, St. Clair, MO, is in need of new, updated woodworking equipment. The St. Clair WoodLINKS program specifically needs a drill press, a jointer, a planer, and a shaper. Please consider donating or placing this equipment for a minimal cost. Contact WoodLINKS Director Mark Smith for more details at woodlinksusa@netcare-il.com.

Save the Date: Economic Forecasting Webinar

Alan Beaulieu of the Institute for Trend Research (ITR) will give an analysis of the economic trends on Monday, November 16, 2009, 11:00 a.m. EDT in a live webinar. Join WMMA members for one of the most popular benefits — free access to one of the foremost economists in the country. As the economy moves toward recovery, learn what the suggested recommendations are — Phase Management Objectives™ — for your business. According to ITR, "You can make the right decisions at the right time."

Click here to get registration details.

Forget Yesterday, It's a New Tomorrow for 2010 Woodworking Industry Conference Attendees

Industry Leaders to Discuss Succeeding in the Recovering Economy April 21-24, 2010 in Monterey, California

Industry professionals looking to network and discuss strategies for recovering from a difficult 2009 should plan to attend the 2010 Woodworking Industry Conference in Monterey, CA. Set for April 21-24, WIC 2010 is themed, Forget Yesterday, It's a New Tomorrow as a reminder that the current economic downturn will not last, and one of the keys to surviving a downturn is planning for the economy's inevitable recovery. Read more.

MEMBER NEWS

Allen Field Company
P.O. Box 3069
320 Broad Hollow Rd
Farmingdale, NY 11735
Phone: (800) 535.0810
Key Contact: Jane Serra

Arminius Tooling
16443 130th Street
Foreston, MN 56330
Phone: (320) 294-5900
Key Contact: Ron Frazier, US Representative

Axiom Industries
PO Box 1147
Tualatin, OR 97062
(631) 756-0810
Key Contact: Corey Barge, President

Becker Acroma Inc.
P O Box 3660
140 Garden Ave.
Brantford
N3T 6H2 Ontario, Canada
Phone: +1 (519) 758 15 08
Key Contact: Ken Johnston, CSP, Inside Sales Coordinator

Decore-ative Specialties
2772 South Peck Road
Monrovia, California 91016
Phone: (800) 729-7277
Key Contact: Wiley Kennedy, Director of Marketing

Hardwood Specialty Products
3941 Park Drive, Suite 20-183
El Dorado Hills, CA 95762
Phone: (916) 933-3570
Key Contact: Dan Figgins, Import Division Manager

M.L. Campbell Wood Finishing Systems
101 Prospect Avenue
525 Republic
Cleveland, OH 44115
Phone: (800) 364-1359
Key Contact: Robert Dieter, Category Director

Northland Corp.
2600 Hwy. 146 East
PO Box 265
LaGrange, KY 40031
Phone: (800) 873-1441
Key Contact: Tim Girardi

Osborne Wood Products
8116 Hwy. 123 North
Toccoa, GA 30577
Phone: (800) 849-8876
Key Contact: Haden R. Smith, CAD Specialist

OTB Machinery, Inc.
51 Proctor Rd.
Thomasville, NC 27360
Phone: (336) 323-1035
Key Contact: Sallie Ann Church

Outwater Plastics
24 River Road
Bogota, NJ 07603
Phone: (800) 631-8375
Key Contact: Liesel Weller

Quality VaKuum Products
43 Bradford Street
Concord, MA 01742
Phone: (800) 547-5484
Key Contact: Neal Ferri

SAI/EnRoute Software
1490 N. 2200 W.
Suite 120
Salt Lake City, UT 84116
Phone: (800) 229-9066
Key Contact: Don Feagan, President / COO

Saunders Brothers
479 Main Street - Suite 1
Westbrook, ME 04092
Phone: (800) 343-0675
Key Contact: Beth Brook, Sales & Marketing Assistant

A Q&A with Saunders Brothers

How did you come to join the WMMA? We were approached at the 2009 AWFS Fair by Jim Beach. He explained the benefits of the organization and helped complete the application.

How do you hope to benefit from your WMMA membership? As a supplier of component parts we are really excited to be more in tune with the machinery side of the industry.

Tell us about your business! Saunders Brothers was founded in 1900 by Arthur and Harry Saunders. We are a leading manufacturer in the wood products industry. We make wood turnings of all sorts but our specialty is wooden dowel pins. We manufacture dowel pins in metric and fractional sizes, plain, multi grooved, or spiral. FSC certified products are available upon request. We also make our exclusive Aqua-pin™, a pre-glued dowel pin to accelerate your assembly process.

What makes your business or products "different" or "noteworthy?" Our dowel pins are run through our exclusive Pin Scan system which electronically inspects each pin for proper size, diameter, chamfer, cosmetic integrity, and accurate volume count. Our Pin Scan system ensures a .02% defect rate with upgrades coming soon that will bring it to a 0% defect rate. We know how costly down time can be, even if only for a few minutes.

What are your company's primary concerns in the woodworking industry? These days our biggest concern, like others, is the economy.