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The Cutting Edge^™ January 2005

2004 — A Year in Review

A Message from the President - The Year in Review 2004 and Focusing on the Future
By Peter Perez, WMMA President and President of Carter Products, perez@carterproducts.com

Happy New Year to you and your families! I hope you enjoyed a great holiday season.

As we begin 2005, I want to give you this report on your Association. First, I want you to know how proud I am to be President of WMMA, an Association with a rich history of over 104 years representing and supporting U.S. manufacturers of wood machinery, cutting tools, and accessories. The progress made in 2004 was the result of the hard work of many people; all busy executives who volunteer their time to serve on the Executive Committee or Board of Directors, or to chair or co-chair Committees, or to serve as Committee Members. Assisted by our capable staff and consultants, these dedicated individuals created even more value for our 230 member companies. I thank them all for their many contributions which made 2004 such a successful year for WMMA.

In terms of the economy, 2004 certainly was a better business year. The U.S. economy began to turn around as we began the year. The positive momentum continued through the winter and spring, leading up to the important IWF2004 Show in Atlanta in August, reportedly one of the best ever. This industry economic recovery was most welcome after several very tough business years. I hope that WMMA's new programs and new initiatives contributed to your companies' improved business last year. That certainly is our goal.

In 2002 and 2003, WMMA took time to reassess everything we were doing as a result of information provided in an all-member survey and a subsequent strategic visioning process. This reassessment included an in depth review of programs, membership eligibility requirements, committee structure - in short, all aspects of WMMA. Late in 2003 and throughout 2004 we set a new course for the Association. Our overall goal now is to be an association of information and education. The objective is to assist our members in understanding the global marketplace in which they operate and then to help them better manufacture and market their products.

As we began 2004, it was decided that all seven committees would meet together in the same city in the winter and fall of each year. In February, we kicked off this new approach when all committees met together in Washington, DC during the annual Public Policy Fly-In. The opportunity to network with over 50 industry leaders was such a success that we scheduled the fall meeting in Austin, Texas where again over 50 participated in three days of meetings, workshops, and other networking opportunities. In between, some committees met at the annual WIC in Tucson and at IWF2004 in Atlanta. The important work of the seven committees is reviewed further on in this report.

This fall, WMMA and the National Association of Manufacturers (NAM) reached agreement on enrolling all our members in their organization. I view this decision as another very important member benefit. NAM now is headed by former three-term Michigan Governor Engler. He brings a lifelong commitment to manufacturing and a belief in its importance to the future of our country. WMMA, working with NAM, is committed to communicating the importance of manufacturing to our elected officials at the local, state, and national level. Together we must continue to describe the unprecedented challenges we face and the actions required to remain competitive. Given a reasonably level playing field, I am confident that American manufacturing talent and skill will continue to invent and produce world class products.

Another great achievement for WMMA in 2004 was the hosting of two manufacturing workshops, put on by the Greater Boston Manufacturing Partnership. Identifying the professionals who could facilitate a workshop specifically geared toward our members' needs was a daunting task. The Manufacturing Strategies Committee took on that challenge, and arranged two successful, well-attended workshops on Continuous Improvement - one in October and one in January 2005. For our association of manufacturers to focus an entire day on manufacturing issues is an important step. WMMA will sponsor additional manufacturing workshops on various other strategies in 2005, including Value Stream Mapping and 5S. Please stay posted!

I am pleased to report that your Association's financial position is strong, benefiting from our one-third ownership of the IWF Show. Record distributions helped fund new initiatives and new committee programs in 2004, while also increasing our reserves. In the fall, after interviewing a number of investment management companies, a new firm was selected to manage these growing reserves.

The Woodworking Industry Conference, known as WIC, is a collaborative event sponsored by three fellow associations: WMMA, AWFS(R) and WMIA. In 2004, the 13th WIC meeting took place in Tucson. Two other associations, the Architectural Woodworking Institute (AWI) and the Wood Components Manufacturing Association (WCMA) attended this meeting to evaluate whether their members should participate in the future. Both associations decided to join us at the 14th WIC to be held in Destin, Florida in April, 2005. I have attended every WIC meeting since the first one in 1991. I believe it is one of the most important industry events each year. If you are not sending one or more representatives from your company, you are missing out on an invaluable industry networking and educational opportunity - - - another WMMA member benefit! My wife Carroll and I look forward to welcoming more of you at the 2005 WIC. We have a great conference planned oriented to your business needs.

Our seven committees worked hard and accomplished much in 2004 as summarized below:

Business Development: Members benefited from the information provided through the WMMA Quarterly Trend Reports, produced by the professional economists at the Institute for Trend Research (ITR). In addition, an increasing number of members took advantage of the company-specific trend report option, which will continue to be heavily subsidized by WMMA through 2005. Leading economist Alan Beaulieu from ITR delivered a dynamic presentation during the WMMA Business Session held at the 2004 WIC. It was so well received that attendees insisted that he return in 2005 with his forecasts for this year and beyond. He will again host a Contact Table at this year's WIC, an added benefit for members.

Education & Scholarship: For the first time, three scholarship students participated in the WMMA Business Session at the WIC. They were well received by the membership, and similar opportunities to show the "face" of the Scholarship Program will be explored in the future. Accu-Router collaborated with the senior M.E. design class at Tennessee Tech in the spring on three distinct proprietary design projects, which benefited the students and our member company. And scholarship student Matt Dickerson was highlighted as "Student of the Month" in the September issue of Wood Digest - bonus exposure for Matt and for our program!

International Business Development: An online forum was developed for the Committee to discuss articles for the new Export Manual and other topics of interest. The Committee gave their time, talent, and experience to writing and collaborating an extensive new Export Manual, and its rollout to members is imminent. Eighteen company executives representing five continents participated in the IWF Foreign Buyer Program. WMMA subscribed to the GTIS service, providing official import and export statistics of 46 countries plus the U.S. on woodworking machinery, wood furniture and wood products. The subscription provides us with quarterly data and is shared with all members. It was an active year for the Committee.

Manufacturing Strategies: The Committee worked to successfully identify the Greater Boston Manufacturing Partnership as the professionals to facilitate the first ever WMMA-sponsored manufacturing workshops, and a series of subsequent workshops. The first took place in Austin in October, and covered Continuous Improvement (CI). With a sell-out attendance and excellent feedback, a second workshop on CI was held in January in Atlanta. The Committee plans on putting on additional workshops throughout 2005 on other strategies, and is fulfilling its mission of educating our manufacturing members on methods of staying competitive in our industry.

Membership Services: WMMA members and their products were strongly promoted in the pre-IWF issues of the major trade publications, through the efforts of this Committee. All members also received a special document which they could customize with their company information, and send to their customers, encouraging them to purchase machinery before the "bonus" depreciation expired at the end of 2004. This was a well-received message, and sales at the end of the year certainly reflect the urgency which this "bonus" created. The Committee also began to focus on increasing the involvement of current members in Association programs. They plan to reach out to members to gain more response to special programs and to increase attendance at the WIC.

Public Policy: The 2004 Public Policy Fly-In was a huge success for this Committee and the Association, as noted earlier. They recognized the importance of a strong representation on The Hill, and used their Committee budget to reimburse the travel expenses of all who attended the Fly-In. Another success in this arena in 2004 was the passage of HR. 3598, the Manufacturing Technology Competitiveness Act of 2004. Per John Satagaj, WMMA's Legislative Counsel, "This bill will help manufacturers across America remain competitive by ensuring that they have easy access to information about the latest technologies and organizational ideas that can help them stay ahead of their foreign competitors."

Research & Engineering: The Committee contributed articles and insight for content to the new Export Manual, rolled out by the International Business Development Committee. They are also exploring the possibility of forming an "OSHA Alliance," a program which OSHA created to help organizations prevent workplace injuries, illnesses and fatalities. The Alliance is a two year program where information is shared and educational materials are developed. All members will benefit if this Alliance is forged. Members of the Committee also continued to work on ANSI ASC O1 sub-committees in the development of several machine specific standards, including Gang Rip Saws, CNC Machining Centers, Jump Saws, Shapers, and Chop Saws.

More information on the each of the Committee's programs can be found on the WMMA website in the Members Only section and in each issue of The Cutting Edge. Please visit their pages to learn more and participate throughout the year.

In closing, I send my appreciation to all who continue to make WMMA a leading wood processing industry association. WMMA stands ready to help each of our member companies address the challenges of 2005 ahead. If you are not involved, I encourage you to join your industry colleagues on one or more of the seven committees and to attend WIC 2005. I invite you to join me and many others as together we set the course into the future!

Cordially yours,

Peter M. Perez
President, WMMA
President, Carter Products Co.

Table of Contents
A Message from the President - The Year in Review 2004 and Focusing on the Future
2005 WMMA Public Policy Fly-In Update; NAM Events Celebrate Manufacturing
Presidential Initiatives
Small Business Legislative Council Announces 2005 Priorities
Building a Culture of Improvement: Employees of a Somerset, MA Millwork Company Create Solid Foundation for Change
WIC 2005 Registration Has Begun!
Call for 2005 Baldwin Award Nominations
What Is On the Minds of WMMA Members - Results of a Quick Survey