The sad news is that George W. Delaney lost his hard-fought battle with lung cancer. The good news is that he touched so many of us in the woodworking equipment industry and we are richer for having known him. During his years as President of Powermatic, George led the company through many changes, positioning the company to cope with the changing competitive environment. Twice George served on the WMMA Board of Directors—first from 1978 to 1980 and then from 1987 to 2000. During the latter term, he also served as WMMA President from 1992 to 1994. George also represented the WMMA on the IWF Board of Directors from 1994 to 2002, serving as Chairman of IWF for the 2000 show during 1998-2000. In 1997, the Association honored George for his service to the Association, industry, and his community by naming him the recipient of the prestigious Ralph B. Baldwin Award for Excellence.

Let us not be sad. Let us be joyous in having known a wonderful person called George Delaney. To that end, below are a few memories and recollections from those who George touched.

Remembrances

From Dana Baldwin, CSSP, Inc. — When I worked with George on the Fair Board, I personally gained a tremendous amount from his insight, thoughtfulness and charm. He had a warm way of presenting his thoughts which won many people to his point of view. He had great common sense and an abiding sense of purpose which helped all of us on the Fair Board to do a better job. While we were on the WMMA Board of Directors, it was quite obvious that when George spoke, everyone responded to the high quality of his thoughts. Again, his sense of humor and humility helped the Board govern more effectively…

From Chuck Granger, ret. 3M Company - If it hadn't been for George and Ray Vold, I wouldn't have been involved with this Association. Ray was my recruiter and George was the second guy to whom I was introduced. They both then took it upon themselves to sponsor me in the Association. I used George as a sounding board many times as we went through the various stages. I will miss him very much and know that in my life, I just hope and pray I can contribute just a little of what George did in his lifetime.

From Todd Herzog, Accu-Router — I worked for George a total of 10 years (two different times) and knew him for 27 years. He will always be “Mr. D” to me. With his recent passing, I did not lose a boss, I lost a dear friend and colleague… Time etched memories of Mr. D include developing business plans together, major trade shows, running meaningful sales meetings…There also were many personal moments – going to the Notre Dame-Tennessee football game with his friends from Murfreesboro in 1978, organizing a surprise going away party for George when he was transferred from Powermatic in 1980, visiting him and Sheila in their new home in Laguna, CA in the early 80’s… George Delaney was a great family man. He was a man of strong religious convictions. He was an honest, loyal person whom was very easy to talk to and like…

Baldwin Award winners gather at the 1997 WIC

From Doug Kullmar, Powermatic - I had the privilege of working with George for 8 years. I call it a privilege because: He was a rare individual who faced adversity with courage and peace; he was also brave enough to face reality; he continued to seek Joy from every source God gave him - especially traveling with Shelia and his family and going to his grandkids ball games; he communicated with Sheila and they were really a team; he became a man of prayer and was faithful to his Church; he had a sparkle in his eyes and was interested in others to the end. Rather than self-pity, he chose to think of others. He did not hold in what he was thinking and you always knew where he stood. I always admired him in his life and work but my admiration grew beyond words in the way he faced death. What an incredible role model.
From Patrick LaFramboise, IWF — Any of us fortunate to know George will use superlatives - ones you would expect when describing a wonderful person…..class; strength; kind; fair; gentleman. His son Ray summed it up best in his eulogy to his father, “He was a man of integrity." He truly and literally was an example of the phrase -- when he spoke, everyone listened. It was a privilege to be associated with him. There is one other description I would suggest for George Delaney - role model. In every sense and application of the term... family, faith, leader and friend.

From Russ McBroom, Mereen-Johnson Machine Co. - The woodworking machinery industry will miss a great leader with the passing of George. He was an example to me of a leader who was honest and fair with all whom he dealt. I worked with George on the WMMA Board for many years and most recently he and I were members of the IWF Board representing the interests of the WMMA. He has left this life here on earth and will be missed greatly by his friends and most of all by his family. George’s family was very important to him. He spoke of them frequently when we were together. The WMMA has benefited greatly from George’s contributions over the many years.

From Ray Vold, Timesavers, Inc. — I really appreciated the opportunity to work with George on the WMMA and the IWF Board of Directors. In those responsibilities George fully demonstrated his talents and abilities as a true leader who commanded the respect of all. I recall… Don White’s comment upon first meeting George…”George is a classy guy and you will really like him.” Little did I know then that my respect for George would grow and grow. I have many fond memories of George from the golf course to the board room and during travels to Asia and Europe. I have great respect for many of my colleagues in the Woodworking Industry and George was NUMBER 1 on my list. When I was undergoing radiation for prostate cancer earlier this year, George kept me in his prayers. His e-mails were uplifting to me. It seemed he was more concerned with me than his own illness at the time. He truly lived his life to the glory of God.

The Baldwin Award

When George was named the 1997 Ralph B. Baldwin Award Winner, the introduction speech included the following:

George receives the Baldwin Award from Kenny Moffatt at the 1997 WIC

“Those of us who have worked with him know him as a dedicated and hard working leader, eager to serve and not afraid to make tough decisions…As #73, a tackle for the University of Buffalo football team, he helped lead his squad to the prestigious Lambert Cup in 1958…In 1969, he was sent from Buffalo to Tennessee for a temporary assignment to serve as a troubleshooter for Powermatic. He settled there permanently in July of 1970. In his early years with the company, he served as Director of Manufacturing and Director of Marketing. Under his guidance the company’s product line grew and Powermatic prospered. The artisan line of tools soon became a household name for woodworking enthusiasts. In 1986, he was named President of Powermatic.

“He became actively involved in WMMA. His willingness to serve has been unparalleled. After several years on the Board of Directors, he continued to volunteer his time and expertise as an officer, carrying out the vital roles of Treasurer, Vice President, and eventually President, a position he held from 1992-1994.

“His generosity and leadership also extend beyond the WMMA. His commitment to building a better industry is evident through his service on the IWF Board of Directors and the Advisory Committee of Pittsburg State University.

“Our winner today exemplifies all of the characteristics that the Baldwin Award represents.”

It is obvious that the woodworking equipment industry was an important part in George’s life. But, George was much more than just his role in this industry. George always found time for his family, his community, and his church. The love of his life, Sheila, has asked that we keep her and her family in our prayers. If you do not have her address, it is 2112 Londonberry Dr. Murfreesboro, TN 37129; telephone is (615) 893-4856. Memorials in memory of George may be made to St. Rose of Lima Catholic School (1601 N. Tennessee Blvd. Murfreesboro, TN 37130) or Hospice of Murfreesboro (726 S. Church St., Murfreesboro, TN 37130). We all will miss him, but let’s never forget him; let’s each remember him in our own special way.

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Business Briefing

Furniture Civil War
By Art Raymond, A.G. Raymond & Co., Inc. (araymond@raymondnet.com)

Background
Over the past 25 years, furniture producers located in low-cost labor countries around the world have gradually captured the wood furniture market in the U.S. China, for example, grew its furniture exports to the U.S. from only $100 million in 1992 to $5.7 billion in 2002. Other major source countries are shown in the table below:

By 2002 industry experts estimated that nearly 50% of all furniture sold in the U.S. was imported. Wood furniture and components accounted for about 55% of those imports. In the first half of 2003 alone, wood bedroom imports rose 19% to $1,130 million. China shipped 46% of that volume.

The impact on the wood furniture manufacturing industry in the U.S. by the late 90’s was profound. In the two years from 2000 to 2002, U.S. bedroom production fell by 21%, and the operating income of U.S. producers plunged by 47%. Nearly 36,000 workers in the segment were displaced.

And the downward trend continues. In 2003 North Carolina alone has lost 3,123 jobs in the closure of 16 furniture plants and an additional 832 jobs in nine other layoffs.

The First Shot
On July 15 the American Furniture Manufacturers Committee for Legal Trade (AFMCLT), a group of 15 U.S. producers, announced its intention to file an antidumping petition against the import of wood bedroom furniture from China. This action requests the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) to investigate unfair pricing of imports i.e., dumping.

On October 31 the group, now comprised of 27 U.S. producers, one labor union, and eleven unnamed supporters filed their formal petition seeking the imposition of duties ranging from 158% to 440% on Chinese bedroom imports. Among that group are well-known producers like Bassett, Vaughan Bassett, Hooker, Stanley, and Keller.

Note that many of the AFMCLT members actively import from China.

The Law
The Tariff Act of 1930 governs the application of antidumping duties. In 1995 this law was amended to reflect the World Trade Organization (WTO) Antidumping Agreement to which the U.S. is a party. All of the other 143 members of the WTO, including China, are also parties to this agreement.

The purpose of the law is to prevent damage to domestic industries by the sale of imports below the price for which a like product is sold in the exporting country. Because China is a ‘non-market economy,’ their prices are deemed to be the cost of production in a surrogate economy. The AFMCLT has requested that India be the surrogate country for purposes of their action.

Many have blamed China’s fixed currency exchange rate as a prime contributor to their competitiveness in furniture and all other products. However, since the DOC and ITC will use Indian costs in their calculations, the currency issue is irrelevant in this action.

The Combatants
In addition to the AFMCLT four other groups have marched up to the firing line:

Ethan Allen is remaining neutral in this fray.

And, no surprise, Senators Dole and Edwards from North Carolina also back the AFMCLT.

Outcome Unknown
On December 10 the DOC and ITC will determine if the AFMCLT has legal standing to bring the petition. To obtain standing, the group must represent at least 25% of domestic wood bedroom production.

On December 11 the DOC determined that the petition showed sufficient evidence of dumping and consequent injury to warrant a full investigation. In doing so, DOC also ruled that the petition has the necessary support of at least 25% of domestic wood bedroom producers. Now the ITC is scheduled to make preliminary determination of injury by mid-January. That agency will then make a determination of whether Chinese producers are dumping by April 28, 2004. If so, preliminary duties may be imposed within five to six months.

What happens then?

The odds favor the AFMCLT. Without question, the domestic industry has been materially injured. And the precedent for such action exists. The U.S. currently applies antidumping duties on 44 Chinese imports ranging from aspirin to tapered roller bearings. Other WTO members are levying these duties on 168 Chinese products.

Bottom Line: Many call this petition the most divisive issue in furniture industry history. And why not? Imports have disrupted the lives of thousands of industry participants and changed the furniture value chain forever. But who is really to blame?

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Economic Factoid A quarter of all U.S. workers are now employed in jobs that were not listed in the Census Bureau’s 1967 occupation codes. That’s the miracle of the U.S. economy – the ability to create new jobs making new products. Displaced furniture workers will move to new jobs just like those workers who used to make wagon wheels or work on the farm.
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Sector Situation Report

Latest news from the wood products industry by sector…

Kitchen Cabinets – Cabinet sales rose 20.6% in October vs. the same month in 2002 according to the KCMA’s Trend of Business Survey. For the first ten months of 2003 cabinet sales were up 13.7%.

Home Furniture –

At the producer level…

Export Development

Extending Credit to Your Overseas Buyer
By Harold Zassenhaus, WMMA Export Director, (zemg@erols.com)

Don’t you dread that email from your potential buyer after he receives your quote? You know, the one that states “…and what terms can you offer?” Most members quickly reply “Cash upon acceptance of order” or “Letter of Credit due upon presentation of documents drawn on a US bank acceptable to us” and/or “We accept Visa or MasterCard.” For most members the sale is now in jeopardy and they know it.

How would you like reply “We can extend 60, 180 or 360 day terms and sometimes provide up to 5 years credit --- on open account --- how can we help?” Well now you can…. (Bet you never heard this one before). And this option can be extended with little/NO risk on your part. Actually, this option may even enhance your balance sheet because the US government backs the credit instrument. Even better, with a US backed commercial instrument, you can discount it at your bank and receive immediate payment.

The answer lies with The Export-Import Bank of the United States (EXIM). Through little known and often misinterpreted export insurance programs, EXIM, the official US government credit agency, provides exporters with a way to extend credit to your buyer for the purchase of US made goods. And with few exceptions the premiums are reasonable --- say in the case of Brazil from 6.5 – 8.5% of the export price, depending upon term and type of buyer. EXIM credit insurance becomes a great option and at least gives you a fighting chance.

The following is a summary of the types of insurance policies. To learn more, visit the EXIM website, www.exim.gov and click on “Products and Policies”. Or contact EXIM at (202) 565-3946.

Short –Term Insurance policies cover capital goods, components, spare parts and most services for up to 180 days and for special cases up to 360 days. The overseas customer can pay the premiums over the term of the credit. There are three types:

Medium-Term Insurance: provides 100% commercial and 100% political risk insurance for US goods (or the US component thereof) for 1-5 years and, on occasion, for up to 7 years. Financing under this policy can be written for sales up to $10 million. A 15% down payment of the net contract value from the buyer is required. Premiums are individually determined using the “fee calculator” located at www.exim.gov.

One of the best things about EXIM short-term credit risk insurance policies are that they can be easily extended to your customer. For smaller transactions (up to $100,000) the buyer does NOT have to submit financial statements audited or otherwise. The following table is lifted from the EXIM website and demonstrates how easy it can be for your customer to receive credit terms.

Single Buyer Short Term Insurance Policy: Credit Standards for Non-Financial Institution Buyers/Obligors, $300,000 and Less

Note: The buyer’s financial statements may be required if EXIM ’s total potential exposure on the buyer exceeds $300,000.

For last month’s article, “Business Guide to Federal Export Assistance,” click here.

Members, to learn more about the Export Development Committee activities, click here.

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Education & Scholarship

Member Sponsors Employee in Community College
by Michael Burdis, James L. Taylor Mfg. Co. (michael@jamesltaylor.com)

Chris is a part-time/almost full-time employee. We manage his work schedule around his classes at Dutchess Community College. From the beginning, Chris has been a member of our bench and floor assembly teams. His responsibilities include the assembly and testing of:

The development of his skills has been steady and noticeable. This summer, a senior employee was out on medical leave and Chris stepped into his position, working on more complicated assemblies with ease.

We are very satisfied with Chris and very satisfied with the Scholarship Program.

My Rewarding Work Experience Continues at James L. Taylor
By Chris Lankard

Rather than a summer internship, I work full time in the assembly department at James L. Taylor Mfg. Co., with many responsibilities and tasks to perform. I am learning a great deal about electronics, hydraulics, and pneumatic systems as well as learning about these systems, I build and repair the main power units for our Automated machines and our Glue Applicator control boxes. Aside from the larger control units, I wire other various sensors, amplifiers, control stands and sensor eyes.

One project I often work on is the hydraulic control unit we use at Taylor to control our Automated Clamp Carriers. These boxes include many components from the smallest fuse to the computer. Often times, we will have to track down a bad component or an electrical short. I have learned a great deal in working with these units. These boxes are very involved as they tie together two systems, electrical and hydraulic using sensors, valves, and electric eyes. It is essential to know about these systems and how to trace problems so the unit will run properly and perform to the customer’s expectations.

I feel I am making very good progress during my time here at Taylor Mfg. As a matter of fact, while one of my senior team members was out on an extended leave, I took over the lead role in small assembly which is an area that require electrical wiring and repairs.

I am very satisfied with and grateful for this scholarship Program. Again, thank you.

To learn more about the WMMA Education & Scholarship Program, and how you can participate, click here.

To view last month’s article, “Members Say it Best: DuBois Equipment Mentors Summer Intern,” click here.

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Safety News

PLP&D Sponsors Winter Workshop, January 22-23, 2004

The Product Liability Prevention & Defense Group will hold its next Workshop at the Hyatt Regency Orlando International Airport covering: International Standards; What Happens if I am Sued; The ISO 1161/B 1120 Conformance Process; and more.

Click here for the overview, agenda, and registration form.

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Association News

Strategic Visioning Process Yields New Committee Structure

At its year-end meeting, WMMA’s Board accepted the report and recommendations of the Strategic Visioning Task Force to restructure the Association to best channel three Strategic Initiatives: Industry Information, Competitive Business Models, and International Strategies. The net result is a restructuring of WMMA’s traditional committees. All members will be asked shortly to volunteer where their interests lie and then meet in Washington, DC on February 10th, 2004. Watch your mail for further information.

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Association News

WMMA Makes Economic Forecast Reports Available to Members

WMMA, through a comprehensive Industry Information Strategic Initiative, is expanding it's commitment to the success of its members by providing the highest level of Industry Information and Economic Forecast data. This information will increase your profitability by enabling you to make the right decisions at the right time.

Beginning with this issue of The Cutting Edge™, WMMA is including an industry economic forecast report prepared by The Institute for Trend Research (ITR), a professional research firm that provides market/economic trends and has a long history of accurately projecting when those trends will change. This timely and informative Industry Information and Economic Commentary will be distributed on a quarterly basis for all members with the appropriate copy of The Cutting Edge™.

The Institute for Trend Research (ITR) has been serving the needs of American businesses since 1948. ITR's proven experience is being successfully utilized by diverse American and European enterprises, from entrepreneurial firms to Fortune 100 multinationals. ITR's clients have frequently expressed their appreciation of the personal, responsive relationship offered by the Institute.

The Institute for Trend Research forecasting expertise is currently being used to project areas such as: US industrial and agricultural markets; exchange rates; US and overseas interest rates; raw material commodity prices; overseas industrial markets; and Canadian industrial markets. Their reliable forecasting of future economic and business trends will provide you with the information you need to grow and maximize your capital resources.

Additional ITR Products and Services Available To WMMA Members

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Submit your Nominees for the 2004 Baldwin Award

Bring into the spotlight the person who has guided you in your career. Nominate your industry mentor for the Ralph B. Baldwin Award of Excellence, and recognize their outstanding contributions in the woodworking equipment, cutting tool, and supply industry.

WMMA® members agree that the prestigious Baldwin Award is an honor of a lifetime. Mr. George Delaney, former president of Powermatic and past president of WMMA®, passed away last month after a hard-fought battle with cancer. He was the Baldwin Award recipient in 1997. So greatly did he regard this honor that it was included in his obituary and other documented tributes to his life. In all of the many achievements in his years, he counted the Baldwin Award among the greatest.

Now is your opportunity to name someone you admire in the industry for the 2004 Baldwin Award.

The Baldwin Award is named for Ralph B. Baldwin, long-time member and Past President of WMMA®. During his career with Oliver Machinery Company and his involvement with the WMMA®, Ralph exemplified the kind of commitment that really makes an Association function at, or near, its peak potential. It is in the spirit of Ralph Baldwin’s vitality and dedication to the woodworking industry that this award was created—to recognize those who have contributed similar levels of involvement and to encourage others to do the same

Please review the enclosed entry form for the details and then NOMINATE the individual you believe is deserving of this prestigious industry recognition. The award seeks to honor individuals who have made outstanding contributions to the industry, regardless of their affiliation with WMMA®. Some activities that warrant consideration are: leadership in WMMA® or the IWF Board, active committee involvement, innovations introduced to the industry, and participation in programs that benefit the industry.

The winner of the 2004 Award will be announced on Friday, April 23rd during the WMMA® Business Session of the Woodworking Industry Conference at the El Conquistador Golf & Tennis Resort in Tucson, AZ.

If you have any questions concerning this process, please contact WMMA® at 215-564-3484. The deadline to submit your entry and accompanying documentation is February 13th.

Competition Rules

Past Winner Listing

Click here to fill out the Nomination Ballot, then Print and Fax to 215-963-9785.

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