Cutting Edge July 2008

Now that we have only two candidates for President, I thought it would be interesting to see what they have to say about issues near and dear to our hearts. I have left their comments in their own words.

Barack Obama believes we need to double federal funding for basic research and make the research and development tax credit permanent to help create high-paying, secure jobs. Obama will also make long-term investments in education, training, and workforce development so that Americans can leverage our strengths – our ingenuity and entrepreneurialism – to create new high-wage jobs and prosper in a world economy.

The Obama comprehensive energy independence and climate change plan will invest in America's highly-skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the first wave of green technologies that will be in high demand throughout the world. Obama will also provide assistance to the domestic auto industry to ensure that new fuel-efficient vehicles are built by American workers.

Obama will fight for a trade policy that opens up foreign markets to support good American jobs. He will use trade agreements to spread good labor and environmental standards around the world and stand firm against agreements like the Central American Free Trade Agreement that fail to live up to those important benchmarks. Obama will also pressure the World Trade Organization to enforce trade agreements and stop countries from continuing unfair government subsidies to foreign exporters and nontariff barriers on U.S. exports.

Obama will strengthen the ability of workers to organize unions. He will fight for passage of the Employee Free Choice Act. Obama will ensure that his labor appointees support workers' rights and will work to ban the permanent replacement of striking workers. Obama will also increase the minimum wage and index it to inflation to ensure it rises every year.

This is what Senator John McCain's (R-AZ) campaign says, again in his own words.

John McCain Will Maintain The Current Income And Investment Tax Rates And Fight The Democrats' Plans For A Crippling Tax Increase In 2011. Left to their devices, Democrats will impose a massive $100 billion tax hike, almost $700 per taxpayer every year. John McCain has also long sought permanent and immediate reform of the estate tax, and supports raising the exemption from taxation on estates up to $10 million while cutting the tax rate to 15 percent.

John McCain Will Make It Harder To Raise Taxes. John McCain believes it should require a 3/5 majority vote in Congress to raise taxes.

John McCain Will Reward Saving, Investment And Risk-Taking. Low taxes on dividends and capital gains promote saving, channel investment dollars to innovative, high-value uses and not wasteful financial planning. John McCain will keep the current rates on dividends and capital gains and fight anti-growth efforts by Democrats.

John McCain Will Improve Business Investment Incentives. John McCain proposes to permit corporations to immediately deduct the cost of equipment investment, providing a valuable pro-growth investment incentive. Expensing of equipment and technology will provide an immediate boost to capital expenditures and reward investments in cutting-edge technologies.

John McCain Will Reduce The Federal Corporate Tax Rate To 25 Percent From 35 Percent. John McCain believes the taxes we impose on American companies should be no higher than the average rate our major trading partners impose on theirs. We currently have the second-highest combined corporate-tax rate in the industrialized world, and it is driving many businesses and the jobs they create overseas.

John McCain Will Establish Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R&D. This reform will simplify the tax code, reward activity in the U.S., and make us more competitive with other countries. A permanent credit will provide an incentive to innovate and remove uncertainty. At a time when our companies need to be more competitive, we need to provide a permanent incentive to innovate, and remove the uncertainty now hanging over businesses as they make R&D investment decisions.

John McCain Will Lower Barriers To Trade. Ninety-five percent of the world's customers lie outside our borders and we need to be at the table when the rules for access to those markets are written. To do so, the U.S. should engage in multilateral, regional and bilateral efforts to reduce barriers to trade, level the global playing field and build effective enforcement of global trading rules. These steps would also strengthen the U.S. dollar and help to control the rising cost of living that hurts our families.

As I follow the two campaigns, what I find interesting is that these may be some of the clearest, direct statements of policy I have seen in a long time. Now it is up for us to do our job and vote in November.

EPA to Undertake Scientific and Regulatory Evaluation of Formaldehyde Use in Pressed Wood Products

Long-time WMMA members will recall that formaldehyde use in pressed wood products was first highlighted at a public policy forum at the Woodworking Industry Conference (WIC) a decade ago. Now, the EPA is launching a broad effort to gain a greater scientific understanding of the potential health risks of formaldehyde’s use in pressed wood products. Through this process, EPA will develop risk assessments on the potential adverse health effects, evaluate the costs and benefits of possible control technologies and approaches, and determine whether EPA action is needed to address any identified risks.

The agency plans to issue an advance notice of proposed rulemaking (ANPR) in fall 2008. The agency is pursuing this course of action following review of a petition submitted under the Toxic Substances Control Act (TSCA). The petition requested that EPA adopt nationally a California regulation to control formaldehyde emissions from composite wood products and extend the rule to include composite wood products in manufactured homes.

EPA carefully reviewed the TSCA Section 21 citizens’ petition, submitted by the Sierra Club, a number of other environmental organizations, as well as a large number of private citizens, and sought comment and additional information on the petition. EPA will work closely with the Department of Housing and Urban Development (HUD) on issues related to manufactured housing.

If you need more information on this subject, contact: Dale Kemery, (202) 564-4355 / kemery.dale@epa.gov.

International Business Development

Just about every export over $2,500, or those not going to Canada, requires a U.S. Shipper’s Export Declaration (SED) to be filed with the U.S. Census Bureau. Most exporters grant power of attorney to their freight forwarder to complete the SED on their behalf. However, it is still the exporter’s responsibility for correctly completing the form on a timely basis.

On June 2, 2008, the U.S. Census Bureau issued a final rule:

Requiring electronic (rather than paper) filing of SEDs, now to be called “Electronic Export Information” (EEI), through the Automated Export System (AES) with new filing deadlines, and
Setting forth increased penalties for violations.

AES was introduced in 1995 as a means of paperless submission of SED export data but, until now, its use has been optional for most exports. Using AES allows direct transmission of export data to the Census Bureau and U.S. Customs and Border Protection (CBP).

The new rule officially takes effect on July 2, 2008, but the Census Bureau has adopted a phase-in enforcement process whereby the rule will not actually be “implemented” until September 30, 2008. Prior to that time, SEDs will still be accepted in hardcopy paper form.

Mandatory AES Filing
There are four ways to file through AES. The filer may: (1) develop its own AES software consistent with the AES Trade Interface Requirements; (2) purchase AES software from a certified vendor; (3) have an AES certified agent submit export data on its behalf; or (4) use AESDirect, the Census Bureau’s free online filing system, which allows electronic transmission of AES data over the Internet without the need for any particular user software.

To become eligible to use AES, exporters or their agents must first be approved and certified, which begins by submitting a Letter of Intent to the Census Bureau, at www.aesdirect.gov. A representative from the Census Bureau and CBP will then assist with the rest of the process.

The applicable AES pre-departure filing deadlines vary according to the method of transportation. In all cases, other than exports licensed by the State Department (which has its own filing deadlines), the exporter must provide the exporting carrier with the AES filing number, or exemption information, within the following time frames:

Ocean Shipments – 24 hours before the cargo is loaded onto the vessel at the U.S. port of lading;
Air Shipments – At least two hours before the scheduled departure time;
Truck Shipments – At least one hour before the truck arrives at the border for crossing;
Rail Shipments – At least two hours before the cargo arrives at the border for crossing;
Pipeline Exports – Within four days following the end of each calendar month; and
Postal/Other Shipments – At least two hours before exportation.

Exporters who were previously approved for post-departure filing may continue to use the procedure, but no new applicants for post-departure filing will be approved.

The new regulations continue to allow the filing of estimated FAS values where the goods are not sold on an FAS basis. The rule clarifies that only the Internal Transaction Number (ITN), and not the External Transaction Number, will be acceptable as the proof of filing citation. The ITN confirms that the shipment information has been accepted in AES.

The final rule also announces that the Census Bureau and CBP are working to develop a system of registration numbers that AES filers may use in lieu of Employer Identification or Social Security numbers, so that those numbers may be kept confidential.

Penalties
Penalties may be imposed (for violations in the previous five years) where the exporter knowingly fails to file, files false and/or misleading information, or otherwise violates the regulations. The new maximum civil penalty is $10,000 per violation (up from $1,000, per violation), and the maximum criminal penalty is $10,000, imprisonment for up to five years, or both, per violation, as well as, in each case, possible forfeiture of the goods involved. The regulations also provide for an increase from $1,000 to $1,100 in civil penalties for each day of delinquency in filing, up to a maximum of $10,000, per violation. The previous maximum was $1,100, per violation.

Voluntary Self Disclosures
The new section on penalties also includes provisions outlining a new voluntary self-disclosure process. Voluntary self-disclosure will be considered a mitigating factor for purposes of assessing penalties, within the discretion of the Census Bureau. The new rule describes how to complete the voluntary self-disclosure, and where, and how, to submit it to the Census Bureau.

Conclusion
Exporters should take advantage of the phased-in implementation period for a couple of reasons:

Getting an early start on the new regulations should minimize the disruption to trade that the new filing requirements will impose;
The three month phase in period allows the exporter an opportunity to review past export transactions for possible violations. The new and increased penalty and self-disclosure provisions, as well as the increased Census audits recently undertaken of AES filings provide the incentive. Again as the exporter’s agent, forwarder mistakes are attributable to the exporter.

Business Development

At the beginning of the year, President Bush and Congress provided a business package to help stimulate the economy. This law, the “Economic Stimulus Act of 2008,” includes two provisions which may help WMMA members promote and market woodworking equipment, cutting tools and supplies. The provisions provide additional tax incentives to potential customers to purchase equipment and place equipment into service this year.

WMMA members will note that this is a repeat of an alert that was emailed in February when the law was passed. This also serves as a reminder for all IWF 2008 exhibitors to include this depreciation bonus as a benefit when selling to prospective buyers next month. WMMA has prepared a flyer on this topic to distribute at the show.

Direct Expensing
Existing Law for Direct Expensing under Section 179
A taxpayer that satisfies limitations on annual investment may elect under section 179 of the Internal Revenue Code to deduct (or “expense”) the cost of qualifying property, rather than to recover such costs through depreciation deductions. For taxable years beginning in 2008, the maximum amount that a taxpayer may expense is $128,000 of the cost of qualifying property placed in service for the taxable year. The $128,000 amount is reduced (but not below zero) by the amount by which the cost of qualifying property placed in service during the taxable year exceeds $510,000. In general, qualifying property is defined as depreciable tangible personal property that is purchased for use in the active conduct of a trade or business. Off-the-shelf computer software placed in service in taxable years beginning before 2011 is treated as qualifying property.

While frequently referred to as “small business” direct expensing, there are actually no specific business size limitations. It is available to businesses of all sizes. Larger companies generally are not able to utilize it because their investments exceed the annual investment cap.

New Law for Direct Expensing under Section 179
For 2008 only, the expensing amount and annual investment cap are increased to $250,000 and $800,000, respectively. The $250,000 and $800,000 amounts are not indexed for inflation.

Bonus Depreciation
Existing Law for Bonus Depreciation
A taxpayer is allowed to recover, through annual depreciation deductions, the cost of certain property used in a trade or business or for the production of income. The amount of the depreciation deduction allowed with respect to tangible property for a taxable year is determined under the modified accelerated cost recovery system (“MACRS”). Under MACRS, different types of property generally are assigned applicable recovery periods and depreciation methods. The recovery periods applicable to most tangible personal property range from three to 25 years. The depreciation methods generally applicable to tangible personal property are the 200-percent and 150-percent declining balance methods, switching to the straight-line method for the taxable year in which the taxpayer’s depreciation deduction would be maximized.

New Law for Bonus Depreciation
For 2008 only, the new law provides for an additional first-year depreciation deduction equal to 50 percent of the adjusted basis of qualified property. The additional first-year depreciation deduction is allowed for both regular tax and alternative minimum tax purposes for the taxable year in which the property is placed in service. The basis of the property and the depreciation allowances in the year the property is placed in service and later years are appropriately adjusted to reflect the additional first-year depreciation deduction. In addition, there are no adjustments to the allowable amount of depreciation for purposes of computing a taxpayer’s alternative minimum taxable income with respect to property to which the provision applies. The amount of the additional first-year depreciation deduction is not affected by a short taxable year. The taxpayer may elect out of additional first-year depreciation for any class of property for any taxable year.

In order for property to qualify for the additional first-year depreciation deduction it must meet all of the following requirements. First, the property must be (1) property to which MACRS applies with an applicable recovery period of 20 years or less, (2) water utility property, (3) computer software other than computer software covered by section 179, or (4) qualified leasehold improvement property. Second, the original use of the property must commence with the taxpayer after December 31, 2007. Third, the taxpayer must purchase the property within the applicable time period. Finally, the property must be placed in service after December 31, 2007, and before January 1, 2009. The term “original use” means the first use to which the property is put, whether or not such use corresponds to the use of such property by the taxpayer.

The applicable time period for acquired property is (1) after December 31, 2007, and before January 1, 2009, but only if no binding written contract for the acquisition is in effect before January 1, 2008, or (2) pursuant to a binding written contract which was entered into after December 31, 2007, and before January 1, 2009. With respect to property that is manufactured, constructed, or produced by the taxpayer for use by the taxpayer, the taxpayer must begin the manufacture, construction, or production of the property after December 31, 2007, and before January 1, 2009.

Property that is manufactured, constructed, or produced for the taxpayer by another person under a contract that is entered into prior to the manufacture, construction, or production of the property is considered to be manufactured, constructed, or produced by the taxpayer.

In the past, the Direct Expensing and Bonus Depreciation tools have been used by members to successfully close an equipment, cutting tool, or supply sale. Good luck to all in using these tools to increase your close ratio. As always, the information provided herein is a summary only and is not intended to constitute legal or summary advice. Please consult your tax advisor for further information; a specific example sheet using your products is always beneficial in illustrating the power of these tools and helping to close the sale for this year.

Bob DeStefano of SVM E-Business Solutions is a recognized expert in search engine optimization. SVM’s clients range from Fortune 500 companies to emerging growth firms. SVM helps each organization achieve a common goal – to leverage the Web as a strategic business tool to achieve measurable results.

Right now, somewhere, a potential customer is searching for your products. But, who will they find first – your company or your competitor? Search engine marketing is all about getting in front of customers at the very moment they are searching for your products on Google and the other engines. But how do you take full advantage of search engine marketing and outshine your competition? The following seven steps will put you on the right path to search engine marketing success.

Step 1 – Define an Effective Strategy
All too often, companies dive into search engine marketing without a coherent strategy. Don’t fall into this trap. Get off on the right foot by thoroughly defining your target audience(s), identifying their needs and motivations and highlighting how your products can serve these needs. Next, review your company’s position in the marketplace. Identify your top competitors and your company’s competitive advantage. Finally, identify specific goals and benchmarks, such as search rankings, Website traffic increases, sales lead volume and other ROI metrics, to allow you to measure the success of your search engine marketing campaign. This strategy will form the foundation of your campaign and put you on the path to search engine marketing success.

Step 2 – Choose the Best Keywords
The most critical step in search engine marketing is to strategically select the most important keyword phrases for your company. If you do not perform this step properly, your search engine marketing campaign is destined for failure. When choosing the best keywords, it is critical to choose phrases that are not only relevant to your business, but also ones that are searched most often by your target customers. Begin by getting inside the heads of your customers and brainstorm about potential terms your customers use when thinking about your products and capabilities. Ask your salespeople and customer service people what phrases they think are most important. You may even want to ask your best customers. Then, turn to keyword research tools provided by Wordtracker, Keyword Discovery and Google Adwords to create a list of highly searched terms that will drive targeted traffic to your Website.

Step 3 – Optimize Your Website’s Content
Now that we know your most important keywords, let’s put them to work. You need to make sure your Website content is optimized to take advantage of these important phrases. Begin with your Website copy – the information people can read on your Website. Make sure you skillfully write your Website copy to effectively market your company, while using your important keyword phrases in a relevant fashion. Next, focus on your Website structure – the code under the hood of your Website that search engines see when they visit your Website. Use your keyword phrases relevantly in page title tags, heading tags, director names, file names, alt tags and meta tags. Please note: while the ‘keywords’ meta tag has been exploited over the years, the ‘description’ meta tag is very important. This description will show up in the search results below your link, providing a great opportunity for you to entice the searcher to visit your Website.

Step 4 – Get Your Site Indexed by the Top Three
To be found online, you must make certain that all pages on your Website are fully indexed by the top three search engines: Google, Yahoo and Microsoft Live Search. I recommend you start by focusing on Google since it handles over 55% of all searches, and it makes the process easy for site owners. While all search engines allow you to submit your Website directly for consideration, Google also provides you with a backdoor to get your site indexed quicker. Google allows you to create a Google Sitemap, which essentially serves as an ongoing invitation for Google to visit your site and a roadmap detailing the pages it should index. To speed up the process of getting indexed by the other engines, submit your Website to the DMOZ.org Open Directory Project. Once your Website is accepted by DMOZ, Yahoo and Microsoft should have no problem indexing your Website.

Step 5 – Attract Quality Links to Your Website
Link building involves gaining links to your Website from other Websites that are frequented by your targeted visitors. The more quality inbound links you have, the more popular your Website is in the eyes of Google and other engines. And, these links can have a dramatic effect on your search ranking. A good place to start your link building efforts is to make your Website content link-worthy. Good content attracts links, so fill your Website with interesting and informative content such as a library of best practices articles, a blog about developments and trends in your industry, etc. Next, get your Website listed in online directories and portals. Look first to important online destinations within your industry, then focus on general purpose directories like Yahoo Directory and Business.com. You can also garner links from vendors, customers, business partners and trade associations. Finally, you should leverage online public relations and distribute press releases and articles online. By consistently applying these link building strategies, you will dramatically impact your ranking on Google and boost your online popularity.

Step 6 – Manage an ROI-driven Paid Search Campaign
Pay-per-click advertising (PPC) in the sponsored links search results offers a compelling ROI-driven marketing opportunity. Unlike traditional advertising, where you ‘pay for exposure’ regardless of the results, with PPC you are not paying to be listed in the search results. You only pay if someone clicks on your ad and visits your Website, providing a compelling ‘pay for performance’ mode of advertising. To manage an ROI-driven paid search campaign, first, bid on the most relevant keywords. Don't pick terms based on popularity alone. Make sure your product offering will be of interest to the searcher. Second, tie your bidding strategy to business results. Think cost-per-lead and cost-per-sale, instead of just cost-per-click. In many cases a lower ad position will produce a higher ROI. Finally, include a compelling ‘call to action’ in the ad and send traffic to a relevant landing page tied to the ad. A compelling and relevant offer will help lift response and boost your ROI.

Step 7 – Measure Success
As with all marketing activities, you must measure success to see how well you performed in the past, as well as identify actionable strategies to improve your results in the future. Since search engine marketing is all about attracting targeted traffic, begin by leveraging Web analytics to monitor traffic increases from search, as well as what search engines and phrases peoples are using to visit your Website. To make sure the volume of targeted visitors continues to increase, you should also monitor your position or ranking in the search results. On a regular basis, check your position in the top three search engines for your most important keyword phrases to see how well you are trending upward toward a top 10 ranking. Finally, to measure success of your pay-per-click advertising efforts, harness the measurable nature of the Web to track the cost-per-visit, cost-per-lead, and cost-per-sale for all of your pay-per-click ads.

You can take advantage of more information and services in the members’ only site WMMA Online Marketing Resource Center where you will find the following:

Sales Forecasting Tools

Purchasing Managers Index - June 2008
The June Purchasing Managers Index is up from the month before and poked above 50 but beware of the conclusions you draw from this piece of nominal good news.

Manufacturers' Shipments Inventories and Orders – May 2008
New orders for manufactured goods in May 2008 rose 0.6 percent from the prior month, to $448.7 billion. Shipments increased 0.1 percent, unfilled orders rose 0.9 percent, and inventories increased 0.5 percent.

New Residential Construction – June 2008

Manufacturing Trade Inventories and Sales – May 2008

Summer 2008 Economic Outlook Report

IWF 2008 News

Practicing Green in a Community Project – It’s Good Business Sense

Amidst the bustle and hubbub on the IWF 2008 trade show floor, one very special project is bringing together an array of woodworking industry companies to benefit the community. Just ask Laura Mahone, Associate Director of WMMA, what the member response has been to the call to action. “WMMA members have continuously stepped up to the plate in different capacities to provide every piece of equipment and ounce of expertise. Everyone is eager to participate and cooperate – part of the enthusiasm is the opportunity to ‘show-off’ but it’s also about working hard for a great cause.”

What’s the cause of this excitement? The U.S. Innovation & Demonstration Center – A WMMA Community Project at the International Woodworking Fair (IWF) 2008, held in Atlanta on August 20 - 23, is an environmentally conscious production process. WMMA member companies are cooperating in a working exhibit that will construct kitchen cabinets for Atlanta Habitat ReStore and for the 1,000th and 1,001st homes built by Atlanta Habitat for Humanity.

As Ken Hutton, WMMA’s Executive Vice President, recently said, “WMMA member companies are pleased to build stronger connections with customers and U.S. manufacturing in a ‘green’ project that also supports the Atlanta community, the host city of IWF for 24 years.”

Atlanta Habitat ReStore is a home improvement store where all proceeds support Atlanta Habitat’s mission of building affordable, green, quality houses for working families. The Atlanta Habitat ReStore resells donated building materials, hardware, sinks, appliances, furniture and various other home improvement items to the public at a discounted price. All merchandise at the store is donated from manufacturers, retail stores, builders, renovation specialists and individuals.

Larrie Del Martin, Atlanta Habitat President and Executive Director, proudly revealed that “the Atlanta Habitat ReStore is critical to the organization’s environmental initiative. It is responsible for diverting over 1,300 tons of perfectly usable materials from the landfill during its last six years of operation.”

One of the WMMA member companies in the U.S. Innovation & Demonstration Center (UST&DC) is Super Thin Saws, Inc. (Booth #9000). Its sawblades, in fact, produce more product from fewer raw materials. It illustrates that good business can be good for the environment. Used for obvious economic reasons, Super Thin Saws’ products also cut down on waste and power consumption. As most sawblades are replaced, the design of Super Thin Saws lends itself better to retipping, so ultimately there is also less steel used.

TigerStop (Booth #s6268, 6269) is another UST&DC participating WMMA member dedicated to promoting sustainability and socially responsible products. It is making efforts to educate different industries about optimization. The use of material optimizing programs results in responsible use of material to limit waste and improve profitability. TigerStop offers TigerOptimizer, a true material optimization solution. Unlike the longest length first optimizer, TigerOptimizer makes hundreds of thousands of calculations per second to find the right cuts for any given length of stock.

Jamison Scott, Marketing Manager of long-time WMMA member Air Handling Systems By Manufacturer's Service Company, Inc. (Booth #9074), added that “We have been ‘greening’ our facility for 18 years. First with energy conservation: radiant heating, energy efficient lighting and motion detectors for interior lighting. We have been recycling steel and corrugated scrap for years. We have been doing these and other things because they are wise business practices – not just to be ‘green’ but to be business savvy.” He noted that Air Handling previously recycled used corrugated steel in a dumpster, which was costly, and now shreds the material in-house and uses it as packaging material. Air Handling is providing the dust and fume collection for the UST&DC.

Nineteen WMMA member companies and counting – each with a focus on quality products and services – are participating in the UST&DC, but all members exhibiting at IWF 2008 will be featured. The exhibit in Booth #5752, Hall B of the Georgia World Congress Center, is 3,600 square feet and showcases a total wood machinery system manufactured in the United States. WMMA member Vecoplan (Booth #6221) is providing its innovative size reduction equipment and systems to handle the UST&DC’s wood waste.

Hutton added, “WMMA is proud to support the economic competitiveness of the U.S. wood equipment industry through a demonstration of manufacturing methods to improve profitability and promote social responsibility. We are enhancing our knowledge about processing and the business skills for members involved in the development and manufacturing of wood products.”

Woodworking and non-woodworking professionals alike are encouraged to visit the UST&DC and witness the different WMMA member products in operation through a number of manufacturing cells, each showcasing a different manufacturing process but brought together under systems integration. Representatives of Atlanta Habitat ReStore will also be available.

Atlanta Habitat for Humanity Ensures Successful Homeownership

In celebration of its 25th anniversary celebration, Atlanta Habitat for Humanity will build its 1,000th and its 1,001st house in November, 2008. At IWF 2008, WMMA will be creating and donating two complete sets of kitchen cabinets for installation into these two special milestone houses.

The search has begun for the homebuyers…

Twice a month application workshops are held at Atlanta Habitat where the income, savings and credit histories of each potential homebuyer are reviewed. If they meet initial qualifications, members of the Atlanta Habitat Family Selection Committee then conduct an in-home interview with each applicant family to assess need and continued financial stability. Once the application is reviewed and approved by the Family Selection Committee, then applicant families are reviewed for final approval by Atlanta Habitat’s Executive Director.

Atlanta Habitat strives to make homeownership a successful experience. Therefore, applicants are required to meet several qualifications to ensure success in the long run. Some of the homebuyer requirements are: Prospective homeowners must live or work in one of the 10 counties served by Atlanta Habitat, have two but no more than eight people in their household, have a steady income for the past two years, show good credit, have $200 in a savings account and be a first-time buyer.

Once selected, in order to prepare homeowners for the financial and maintenance aspects of their new responsibility, they are required to attend 12 Atlanta Habitat Home Smart educational courses. These courses range from balancing a budget to hands-on home maintenance. In addition, each homebuyer invests 250 “sweat-equity” hours in building his/her home, as well as other Atlanta Habitat houses.

To ensure successful homeownership, Atlanta Habitat homebuyers lease their home for the first year, making timely payments during the lease period. After a year of fulfilling their obligations, homebuyers then close on their home and become proud Atlanta Habitat homeowners.

Atlanta Habitat for Humanity, one of more than 1,600 U.S. affiliates of Habitat for Humanity International, is a nonprofit organization dedicated to providing affordable housing to Atlanta’s working families. Since 1983, volunteers from corporations and from faith-based and civic organizations have worked in partnership with qualified homebuyers to construct affordable, green, quality homes in Atlanta, which are then purchased through no-interest, no-profit mortgages. From 1983 to 2007, Atlanta Habitat built more than 940 homes in the City of Atlanta and Fulton County. Now serving families in 10 counties, the organization is on track to build 60 homes in 2008, its 25th anniversary year, and celebrate the completion of its 1,000th and 1,001st homes by year end. For more information about Atlanta Habitat for Humanity, please visit www.atlantahabitat.org or call 404-223-5180.

SmartBooth Deadline Extended to July 31!

We have extended the deadline to July 31 for our members to take advantage of remarkable savings on marketing opportunities on the show’s software package, myIWF Event Planner, used by buyers. A basic package costs $1,295. You and your products can be visible and searchable to IWF 2008 buyers for only $500 – a savings of $795. For a few more dollars, key word searches are available, again at a discounted price because you are a WMMA member company.

Please contact Steve Raymond of BD Metrics, (410) 402-1061, directly for more information.

Buyers Bucks

IWF 2008 will host prize drawings that total $105,000 in prizes. Eligible IWF 2008 attendees may enter for a chance to win one of 42 prize vouchers which may be used toward the purchase of products from exhibitors at IWF 2008.

More reasons to attend IWF 2008

Charles R. (Tommy) Tomkins, IWF 2008 Chairman and President of Cresent Fine Furniture Company, based in Gallatin, Tennessee, notes, “The government has put together a program for taxpayers to take advantage of the Economic Stimulus Act of 2008 with new incentives for equipment investment. IWF wanted to give our attendees some added incentive.”

Prizes include:

One $10,000 prize voucher
Three $5,000 prize vouchers
Ten $1,000 prize vouchers
$100 gas card prizes
One 42 inch flat screen television

For more information on rules, how to enter and where and when the drawing will take place contact IWF at iwf@iwfatlanta.com or go to www.iwfatlanta.com/IWFBuyerbuckspromo.

Visit the WMMA Booth – Member Use of the Conference Room Encouraged

The Association will be located on the connector bridge at Booth #BC20. Exhibiting members and visitors are encouraged to pick up the latest literature and meet with the staff. If members would like the use of the booth’s conference room, they are invited to coordinate with the onsite staff for reservations or inquire now about reservations now at info@wmma.com.

Manufacturing Strategies

Performance Metrics that Matter
Develop the right performance measures for each person and each group in the organization.
By Jill Jusko
Editor’s note: the following article appeared in Industry Week.

Do you ever wonder why new corporate improvement initiatives sweep in with new CEOs – even when the existing initiatives seem to be getting the job done, and done well? It's because new executives need to prove – quickly – that they are doing something, said Peter G. Martin, vice president of performance management, Invensys Process Systems, at the 2008 IW Best Plants conference held earlier this year. "Quickly" is the operative word as CEO tenures average less than three years, meaning that the time to prove themselves to the board and stockholders is short.

In a humor-laden presentation that drew laughs and nods of understanding from audience members, Martin took gentle jabs at C-level executives, engineers, manufacturing acronyms, and more. More importantly, however, he shared his knowledge about how manufacturers could perform better by focusing on the right metrics. Many of his comments were based on research conducted over the years with senior executives at primarily process manufacturers.

Among his observations:

The plant-floor is not the only real-time world anymore. With energy costs and raw materials costs fluctuating as frequently as hourly, the entire business must operate in real time.
Remember CIM (computer integrated manufacturing) or lights-out manufacturing, or expert systems, or KPIs? Many of the initiatives are good, Martin says, yet "we have to get out of the initiative mindset." The initiative mindset doesn't look at the business as a whole, he says. "If you don't look at problems holistically, you start focusing on the wrong thing."
When you do a project, the cost is very visible, but the benefit is not being measured by anybody. Whose job is it (outside of the COO) to determine whether that investment paid back? The CFO, Martin notes. If you can't prove it paid back, the finance guy will say no "every time." The good news is that this problem can be solved, but it must be solved from the perspective of the executives, Martin said.
"If we can't measure the business right, then we can't control it, we can't improve it," Martin said.

Martin's entire IW Best Plants presentation is available at IndustryWeek.com. Go to Performance Metrics that Matter: Choosing Information Over Data to view the video.

Combustible Dust Workshop Sponsored by the American Forest & Paper Association

To enhance awareness of potential combustible dust hazards in the wood product and paper industries, and assess measures for prevention/mitigation, the American Forest & Paper Association (AF&PA) is sponsoring a workshop on October 23, 2008 at the Hilton Atlanta Airport in Atlanta.

While the hazards of explosion and fire from combustible dust have been known for many years, recent workplace dust explosions and a study by the U.S. Chemical Safety and Hazard Investigation Board (CSB) have given rise to new initiatives to prevent these occurrences, which can often be catastrophic.

Click here for more information and registration.

Association News

Back to the Future
An Observation by Executive Vice President Ken Hutton

Today’s WMMA staff is as inexperienced with the Association and the industry as it has been in almost two decades. Yet it has a wealth of business experience unlike any group serving WMMA during that timeframe! Let’s go “back to the future” to see what I mean.

By 1989, Don White had served the WMMA as its Executive Vice President for over 20 years. In February of that year, the Association was granted the 100th Export Trade Certificate awarded by the Department of Commerce. At that time the WMMA direct staff consisted of Debbie McKay, who was the staff liaison to the Industry Marketing Department for a few years, and a rotating Administrative Assistant. None of the three had any exporting experience, leading to my introduction as the Association’s Export Coordinator. Shortly thereafter Elizabeth Franks was hired as Administrative Director. Then Karen Boyle started a temporary assignment handling the 800-WMMA hotline, which gradually expanded into a full-time position with other responsibilities.

That started a run of unprecedented staff stability which was the envy of all the other groups managed by your Association Management Company, Fernley & Fernley. It was just good luck, as other associations within the industry and elsewhere experienced staff turnover routinely; it’s the nature of the business. Administrative assistants continued to come and go, but the core group after Don White’s retirement stayed together. Elizabeth served the Association for 12 years and now manages other organizations within Fernley & Fernley. Thereafter Dana Klauss and Jean Coney served the Association for about four years each…and that marked the beginning of a trend.

In December 2002 WMMA’s Executive Committee looked at the staff composition and wondered from where the next Association leader would emerge when Ken Hutton decided to do something else. Soon Bill Norton was hired as Director of Marketing and Information and began to learn the industry and Association. When Jean left to become a mother, Bill found Molly Pappas. He also gradually emerged as the candidate to become the Association’s next Executive Vice President. I slid over into a role which the WMMA Board encouraged me to champion and supported my efforts in public policy and industry outreach.

Then opportunities pulled the WMMA staff team apart within the span of six months, and people in the Association and the industry began to wonder “What’s happening at Fernley & Fernley?” In two words the answer to the question is “normal turnover.” Again, it is circumstances, or maybe a reversal of the good luck all those years which the Association experienced when the turnover was nominal. Having served the WMMA admirably for over five years, Bill Norton accepted an unbelievable job opportunity from a former mentor and went back into the tradeshow and public relations industry from where he had his roots. In her three years with WMMA, Molly Pappas was never comfortable traveling and sought out an association position with a local chapter of the Home Builders Association. After 18 years, Karen Boyle sought more control over her personal life to enjoy her retired husband and grandchildren.

Over this span of almost two decades the internal support services at Fernley & Fernley continued to provide the receptionist, accounting, IT, creative design, WIC registration, membership management, and meeting planning support that was routinely performed but usually not seen. These unseen heroes number 12 to 18 people who routinely “touch” the WMMA account and make sure that the day-to-day needs are met. During this six month period of supposed of staff transition, this group continued normal operations.

Contrary to the rumors otherwise, I am not retiring, although I was enjoying my role as Senior VP for Public Policy and Industry Affairs. In fact, I look forward to returning to that position and enjoying it for a number of more years. For now, I am back as WMMA’s Executive Vice President. And I am back in that role with great enthusiasm. The staffing around me was somewhat redesigned, and the job searches produced three very qualified people, who you the membership will get to know and hopefully learn to appreciate their skills and talents the way you did for their predecessors. I am confident that a great staff has been assembled. Some of you have already met some of them. More of you will have the opportunity to meet them before and during IWF next month.

I am honored to be serving with them, as each brings unique skills which, when combined, have the makings of an even better team to serve the membership. As a former manufacturing owner of a small business, Stella Sytnik can identify first-hand with the same management and operational issues which many of you are encountering. Laura Mahone has strong tradeshow skills along with marketing and meeting planning abilities. Gina Marinilli brings excellent organizational, writing and editing talents to the Association. Gina and Stella will be in the Association booth in the B/C connector, while Laura and I will be supporting the U.S. Technology & Demonstration Center – A WMMA Community Project in Hall B, Booth #5752. All of us will be walking the show floor visiting members on Sunday and Tuesday prior to IWF as well as during show hours. We look forward to meeting all 187 member companies which are exhibiting this year.

I say I am back with great enthusiasm as your EVP, because these three individuals are challenging me on why WMMA does certain things in a certain way. These challenges are making me rethink everything about the Association as we transition between generations and their respective needs. These three have energized me to do even more on behalf of the Association than I previously accomplished. Maybe going back to the future isn’t so bad after all!

You might find your next employee through WMMA! Students and job seekers in the wood machinery industry check our Web site regularly for job openings. Visit the Career Center and see how easy it is to post a job opening at your company.

Don’t wait until WIC or IWF to have a dialog with your peers. The Member Bulletin Board is yours!

Member News

MACHINEKING.com, dealer of new and used wood working equipment, promoting liquidation, repossession, re-built machines, auctions, newly manufactured, 2nd hand and surplus equipment. Categories include CNC Router, Moulder, Sawmill, Saw, Boring, Sander, edgebander, boring and many others. MACHINEKING.com’s customers include; cabinet makers, flooring, furniture, sawmills, pallet companies, countertop shops, board manufacturers, lumber companies, laminating operations and finishing plants.

NEMI strives to manufacture the most quality, user-friendly products for CNC machines. NEMI has been manufacturing digitizers, tool setters, vacuum pods, vacuum tables and software for many years. Its commitment to quality products has helped its users out-perform their old systems continually. The company takes pride in the products made in Minnesota and will continue to add new products based on its customers’ needs for increased production. NEMI’s precision products are proven to simplify and increase production year after year. They are backed by over 30 years of engineering and manufacturing experience.

WMMA is pleased to host a very special breakfast on Wednesday, August 20, at IWF 2008 in the U.S. Technology & Demonstration Center (Booth #5752, Hall B). Member companies will present their innovative products and services to members of the trade press. These companies are:

Contents

Cutting Edge Newsletter™ July 2008

Public Policy

International Business Development

Business Development

IWF 2008 News

Manufacturing Strategies

Association News

Member News