The Cutting Edge™ March 2005

Public Policy

Wood Processing Professionals Unite and Deliver Message to Washington

On February 16, 2005, the Wood Machinery Manufacturers of America® (WMMA®) held their annual Public Policy Fly-In that drew more that 100 wood processing professionals to Washington, DC. The event more than doubled in size from last year due in large part to the growing involvement of the WMMA members and collaboration with five leading wood processing associations including: the American Home Furnishings Alliance (AHFA), the Association of Woodworking & Furnishings Suppliers® (AWFS®), the National Wood Flooring Association (NWFA), the National Retailers Hardware Association (NRHA) and the Woodworking Machinery Industry Association (WMIA).

" I was very pleased with the response the WMMA® Public Policy Committee received from their outreach to associations in the wood processing industry this year. The WMMA® must continue to seek out theses types of cooperative partnerships in an effort to maximize our resources and increase our voice in Washington", said Peter Perez, President of the WMMA. "The wood processing industry remains vulnerable and legislators need to fully understand what is at stake if they continue to look the other way. These face-to-face meetings with our lawmakers are the only proof we have that they are hearing our issues, and that they understand what's at stake," added Mr. Perez.

Before meeting with lawmakers, the WMMA® hosted a briefing dinner on Tuesday, February 15th at the Mayflower Hotel in Washington, where delegates were addressed by Senator Debbie Stabenow (D) of Michigan. Senator Stabenow shared her vision for the future of manufacturing and the issues she has focused on in an effort to reverse the alarming trend of a decreasing manufacturing base here in the United States.

" Manufacturing is the backbone of our nation's economy", said Senator Stabenow. "We need to strengthen our manufacturing heritage by protecting small businesses from unfair trade practices and rewarding the companies that keep jobs here and don't ship them overseas. It's time to put American jobs and American businesses first", added Stabenow.

The briefing dinner also featured remarks by WMMA President Peter Perez and WMMA Legislative Counsel John Satagaj.

WMMA has proven that even a small group of businesses can make a difference in Washington by harnessing the power of the member company's officials to tell their own story to their Representatives and Senators," said Mr. Satagaj. "They are a model for other associations on how to do it. I am pleased just to be part of the process," adds Mr. Satagaj.

In their meetings with numerous lawmakers on February 16, 2005, WMMA members and others emphasized that this nation's future depends on manufacturing; and that a strong manufacturing base requires policy-makers to scale back the external costs that make it so expensive to manufacture in the United States. Policy-makers also need to level the international playing field; promote innovation, investment and productivity; and ensure availability of skilled workers.

During these meetings with senators and representatives, manufacturers were outspoken in telling lawmakers that it's not good enough to say "I support manufacturing." Rather, it needs to be backed up by the votes lawmakers cast. Participants told their elected officials that they will be watching their voting records this year. To see your lawmakers voting record so far in this Congress, visit the following NAM website: www.nam.org/votingrecord.

" It is critical that manufacturers tell their stories and hold their elected officials accountable on issues that make a difference in their competitive positioning within the global market", said Ken Hutton, Executive Vice President of WMMA. "The WMMA will continue its outreach within the wood processing industry to strengthening the "Pro-US Manufacturing" message. We are thrilled that our Fly-In continues to gain traction and that so many companies took time out of their day-to-day schedules to make these visits and plead their cases. It shows how critical - and important - these issues really are."

The WMMA Public Policy Fly-In was run in conjunction with the National Association of Manufacturers Fly-In for the second consecutive year. Collectively, the two organizations attracted participation from more than 300 manufacturers nationwide.


Sen. Stabenow addresses a captive audience of 110


Sen. Stabenow gives animated response to a member's question


The historic Mayflower Hotel, site of the 2005 Fly-In

Public Policy

Department of Commerce Focuses on Wood Processing Industry Issues
Assistant Secretary for Manufacturing & Services, Al Frink Addresses WILF Guests During WMMA Fly-In

WMMA was thrilled to have Assistant Secretary of Commerce for Manufacturing & Services, Albert A. Frink, as their guest speaker during the Woodworking Industry Leadership Forum (WILF) breakfast meeting on February 16th, 2005. The WILF meeting was held in conjunction with WMMA's Public Policy Fly-In held February 15th & 16th, 2005 at the Mayflower Hotel in Washington D.C.

"Asst. Sec. Al Frink spent over two hours with the Wood Industry leadership carefully listening to a review of our activities and then giving us an overview of his agenda", said Peter Perez, President of WMMA. "Manufacturing has needed a powerful advocate such as Asst. Sec. Frink for a long time, and everyone in the woodworking industry should be excited about his appointment by President Bush. We need to support Asst. Sec. Frink in every way possible as he implements the important recommendations in the Department of Commerce study 'Manufacturing in America.' Every manufacturer should have a copy of this report and its recommendations. We should join together in communicating with our employees, our local press, our legislators at the city, state, and national level with the goal that they understand the critical importance of a strong and enduring U.S. manufacturing base to the future of our country in an intensely competitive global economy," added Mr. Perez.

"We were pleased to offer our members and invited guests the opportunity to have a candid discussion with Assistant Secretary Frink," said WMMA Executive Vice President, Ken Hutton. "His presentation allowed the leaders from eight wood processing associations and four industry trade publications to learn what the federal government is doing to assist U.S. manufacturers compete globally. They were particularly eager to hear what progress has made in the areas targeted by the U.S. Department of Commerce last year, including:

"Manufacturing represents 15% of the economy and with the multiplier effect (allied support and service industries) manufacturing probably represents as high as 40% of our economy, said Assistant Secretary Frink. "These statistics should be compared to agriculture which today is only 5% of our economy, yet they have buildings all over Washington and a multitude of programs as well. Manufacturing needs to do a better job of marketing itself, its contributions to the economy, and the benefits of a career in manufacturing", added Frink.

Al Frink is the first Assistant Secretary of Commerce for Manufacturing & Services, to serve as chief advocate for the U.S. manufacturing sector within the federal government and brings 30 years of private-sector experience to his new position. As a small business executive, Frink built an internationally recognized carpet manufacturing company, Fabrica International, a carpet manufacturer from Orange County, Calif. He is a champion of export. As his company's chief advocate and salesperson, Frink opened foreign markets and took responsibility for all international accounts. He understands both the challenges and opportunities facing manufacturing and is a credible voice to others in the sector, particularly small and medium-size businesses.

The WMMA hosts the Public Policy Fly-In each year as a way to enlighten its members and guest associations on how to best communicate their issues and concerns to their elected officials. WMMA leaders, and nearly 100 wood processing industry company executives, participated in the legislative Fly-In to meet with elected officials about public policy issues that impact the effective and efficient manufacturing of wood products.

The WILF meeting held in conjunction with the WMMA Fly-In was attended by leaders and members of the following wood processing associations: American Home Furnishings Alliance (AHFA), Architectural Woodwork Institute, (AWI), Association of Woodworking & Furnishings Suppliers(R) (AWFS(R)), Hardwood Plywood and Veneer Association (HPVA), Kitchen Cabinet Manufacturers Association (KCMA), National Retailers Hardware Association (NRHA), National Wood Flooring Association (NWFA) and the Woodworking Machinery Industry Association (WMIA). The Manufacturing Jewelers and Suppliers of America (MJSA) also participated in the meeting.

Background:

Woodworking Industry Leadership Forum (WILF)
Since December 1997, association and volunteer leaders in the wood processing industry have discussed issues of common ground and interest. The purpose of these discussions was twofold:

  1. to share ideas and programs with which each industry association was engaged, and

  2. to leverage industry efforts collectively for mutual benefit.

Annually, over 40 affiliated associations and organizations are invited to participate. Approximately one dozen gathered that first year in Chicago, and the group became known as the Chicago Peer Group. Since then, meetings shifted to Anaheim, Atlanta, and Washington, DC so the group's name lost its meaning. A new identity was established and is named the Woodworking Industry Leadership Forum, or WILF.
The WILF concept provides industry executives with the opportunity to find solutions and share ideas on issues extending beyond their own businesses and industry segments. Such topics have included:


Sec. Al Frink (2nd from R) with WMMA Officers

Tom Onsrud, Jim Laster and Peter Perez

Public Policy

Building Momentum
By John Satagaj, WMMA Legislative Counsel, email@jsatlaw.com

Once again, WMMA marched on Washington and demonstrated the power of a united voice. Armed with position papers on estate tax repeal, direct expensing increases, high productivity depreciation changes, health care cost containment, and federal statute of repose enactment, your colleagues met with their Senators and Representatives to challenge Congress to do more for manufacturing in the United States.

The details of the event have been reported elsewhere and the "thank you's" conveyed elsewhere, so let me report on what you can do now. We have proposed House bills to implement two of our recommendations.

Representative Sam Johnson (R-TX) has introduced H.R. 525, and Senator Olympia Snowe (R-ME) has introduced S. 406, the "Small Business Health Fairness Act of 2005." This legislation allows small businesses to band together to form Association Health Plans (AHPs). In the last Congress, the House passed a similar bill but the Senate never considered it. The President campaigned on a pledge to get it passed in this Congress and mentioned it in his State of the Union address. In 2004, premiums for employer-sponsored health care insurance rose by 11.2 percent, the fourth consecutive year of double-digit growth according to the Kaiser Family Foundation. Average annual premiums for employer-sponsored coverage rose to $3,695 for single coverage and $9,950 for family coverage

H.R. 8 has been introduced in the House by Representatives Kenny Hulshof (R-MO) and Bud Cramer (D-AL) and S. 420 has been introduced in the Senate by Senators Jon Kyl (R-AZ) and Bill Nelson (D-FL). This legislation would make permanent the repeal of the estate tax. As we have reported many times, the tax is repealed in 2010, but is reinstated in 2011. One of the main arguments for repealing the estate tax was that businesses were wasting too much time and resources on estate-tax planning. The situation has not changed; business owners are still dealing with excessive estate tax planning costs because of the possibility that the death tax could be resurrected. The sunset provision has created more uncertainty, not less.

You should contact your Representative and Senators and urge them to co-sponsor the bills if they have not done so. We have our work cut out for us on the other topics.

In the case of direct expensing, in 2003 a temporary increase that raised the direct expensing allowance for business from $25,000 to $100,000 for 2003, 2004, and 2005 was enacted. The provision's phase-out threshold was increased from $200,000 to $400,000 over the same time period. In 2004, the increases in the direct expensing allowances and the phase-out threshold were extended for two years, through 2007. We need legislation introduced in both chambers to make the increase permanent.

In the last Congress there was not even a bill introduced to establish a federal statute of repose. In the 107th Congress, a bill by Representative Steve Chabot (R-OH) would have prohibited the filing of any civil action against the manufacturer or seller of a durable good for damage to property arising out of an accident involving that durable good if the accident occurred more than 18 years after the date on which the durable good was delivered to its first purchaser or lessee. Again, we need bills introduced in both the House and Senate.

At this point, I do have to note that it is exciting to report Congress has passed and the President has signed into law a class action reform bill. While not our priority, we hope this bodes well for the future. As you know, we have long struggled to overcome filibusters in the Senate on legal liability issues.

Our final priority is to replace the current depreciation system with a new, productivity-based cost recovery system that provides first-year expensing for all high-tech machinery and equipment that is defined as "High Productivity (HP) Property;" and that allows businesses to deduct the cost of most of their traditional machinery and equipment (that is not expensed) within 10 years, 5 years or 3 years. For example, as a general rule, present 20-year depreciated property would become 15-year HP property, present 15-year depreciated property would become 10-year HP property, present 10-year and 7-year depreciated property would become 5-year HP property; and present 5-year depreciated property would become 3-year HP property. Most traditional woodworking machinery is currently depreciated over 5 years. Again, we need bills to be introduced in both chambers.

The President is making his case for reform of the social security system. The budget and the federal deficit are beginning to draw Congress' attention. We have to fight extra hard to get our issues on the radar. The Public Policy Fly-In started the process, now we need to capitalize on it and build some momentum. I would like nothing better than to be able to report at the Woodworking Industry Conference in Florida that we have made progress!

International Business Development

2004 U.S. Import and Export Trade Statistics
By Harold Zassenhaus, WMMA Export Director, hzassenhaus@fernley.com

The following is a summary of major trends of US exports and imports for calendar year 2004. Statistics are reported for all woodworking equipment and its three component parts: machines, cutting tools and, accessories and parts.

(WMMA members: to view detailed tables on US imports and exports of machinery, cutting tools and parts and accessories, click here http://www.wmma.org/members/inter_bus.cfm. You will need your user name and password. If you don't have one or forgot it, contact WMMA Headquarters at 215-564-3484 or email wmma@fernley.com).

Harold Zassenhaus is available to provide US export and import data on specific product categories. For more information, contact him at (215) 564 3484, x2226; fax (215) 963 9785 or email:hzassenhaus@fernley.com)

Total Woodworking Equipment Market
Imports of woodworking equipment (machinery, cutting tools and parts and accessories) approached $1.6 billion in 2004. It would not be a shock to see China as the largest supplier to the US in 2005--- imports jumped 41% --- and approach $500 million.

Imports from Europe (Germany and Italy) ended the year only somewhat affected by Euro exchange rate as imports dropped 3-4%. Exports increased 7% largely attributable to significant increased sales to Mexico, Australia, New Zealand, Chile, and a few EU nations. Nonetheless, Germany continues to be a dwindling market (dropped by 22%) as it seems the woodworking industry is becoming displaced.

Imports of machinery totaled $943 million or 60% of total and increased 20% over 2003. Imports of cutting tools totaled $426 million (27% of total) and increased 11% while imports of parts and accessories totaled $203 million (14%) and increased 19%.

Exports of machinery totaled $148 million a 15% increase; exports of cutting tools totaled $97 million a 2% increase and; exports of parts and accessories totaled $$45 million, same as last year.

Machines
The American public continued to order imported machinery in record numbers despite their higher landed cost. More than likely this is a reflection of the continued demand for all types of woodworking machinery as the industry continued to improve over 2003 levels. However, the continued rise may also have been due to willingness by importers and distributors of European machinery to tighten margins rather than lose market share.

Imports rose 20% to $943 million. Again, shipments from China grew at more than twice the national average. Imports from China grew by 50% to $240 million, the vast majority of which were light commercial or hobby machinery valued at less than $1,000 per item. Imports from Germany rose by 18% to $130 million while those from Spain increased to $5 million, a 53% jump. Imports from other major European suppliers did not do as well: Italy's shipments rose a marginal 3% to $97 million; imports from Austria increased 11% to $18 million while those from France and Switzerland declined.

Exports increased a healthy 15% to $148 million. Shipments to Canada marginally increased to $47 million and its share of US exports declined to 31%. Australia solidified its place as the number 2 destination for US machinery purchasing $17 million, a whopping 130% increase over 2003. Exports to most of our larger traditional European customers increased by double digits with the major exception of Germany where exports dropped 24%.

Parts & Accessories
Exports remained steady at $45 million with shipments to Canada increasing to $30 million.

Imports have steadily recorded double digit increases. In 2004 they rose 19% to $203 million. Imports from China outpaced all other major suppliers increasing 50% to $23 million. Imports from Israel, always a major supplier, also rose dramatically by 42% to $27 million.

Cutting Tools
Imports continued to increase by double digits to $426 million. China marginally increased their market share to 18% ($78 million). For unknown reasons Germany dramatically increased shipments by 30% to $54 million.

India has become one of the top ten suppliers shipping over $13 million to the US, a 22% increase over 2003.

Exports inched up 2% to $97 million. Canada still accounts for over 50% of shipments. Exports to Belgium and Poland increased dramatically (exports to Belgium shot up over 330% to $3 million) while shipments to other important European destinations like Germany and the UK lagged despite a sharp

International Business Development

Wood Furniture Import Trends
By Harold Zassenhaus, WMMA Export Director hzassenhaus@fernley.com

Wood Furniture import statistics have been broken down into 11 component parts: bedroom furniture, wood frame upholstered furniture, chairs, furniture parts, office furniture, kitchen cabinets, furniture and parts of rattan, cane or bamboo, chair parts, kitchen furniture (excluding cabinets), furniture for vehicles and other wood furniture. Members can click here [ http://www.wmma.org/members/secureDocument.cfm?docID=288 ] to view a series of tables showing 3 year trends by type, by country, by fastest growing country as well as imports from China by type. Members will need their user name and password to log onto the site. Contact Karen Boyle, WMMA Headquarters, 215 564 3484, for forgotten user name and password.

Wood furniture imports continued their growth trend 2004, increasing by 14%. Imports of wood frame upholstered furniture racked up the highest percentage gains at 19% over 2003.

No surprise that China continued to be the largest supplier and one of the fastest growing with shipments totaling $5.7 billion and a growth rate of over 21%. More than ever before an imported piece of wood furniture is likely to be from China. The US imported 46% of its bedroom furniture from China, 38% of its wood frame upholstered furniture, 36% of its chairs; 52% of its chair parts; 30% of its wood kitchen furniture (excluding cabinets) and 28% of wood furniture. And, if it does not fit into a customs classification, such as dinning room sets, China supplies 49% of it. Only Canada supplies more wood office furniture and kitchen cabinets.

Imports of Chinese made wooden bedroom furniture totaled $1.2 billion for the year. Significantly, bedroom furniture imports only increased 6%, more than likely due to the US Department of Commerce dumping. Rushing to fill the void were other developing nations like Vietnam, Indonesia, Brazil, Malaysia and Thailand.

While China is the 600 pound gorilla, and growing, there are other supplying nations that are taking market share. Most important of them all is Vietnam. This small nation benefits from comparatively low labor rates, increasing foreign investment and a growing need for importers to diversify supply. Imports totaled $357 million for 2004, a 108% increase over 2003. Bear in mind that as late as 2001 imports from Vietnam amounted to slightly over $12 million --- for the entire year!

Vietnam is a market that many of our members should not ignore. Furniture production is concentrated in one area, they have limited metalworking capabilities and they are open to source from the US.

Brazil is also becoming an increasingly important market for WMMA members. For years it has been an important supplier of wood mouldings, edge and face glued panels and cut stock. However, it is now a fast growing supplier of furniture and thus providing expanded opportunities for those members which traditionally have supplied this part of the woodworking industry. While it is a difficult market to enter, Brazil, because of its diversified woodworking industry and its large supply of hard and soft woods, will for years to come be an important player in the global woodworking market.

Malaysia and Thailand are becoming increasingly healthy and their furniture shipments are an indication. In 1997 the two countries suffered severe economic shock as their currencies tumbled and the internal economies crumbled. They have made significant comebacks and they may become markets of opportunity for some of our members.

The biggest concern seems to be the threat of overcapacity. Many suppliers and importers rushed to diversify supply away from China a couple of years ago when it was first threatened with US dumping actions. This action was OK so long as the US market continued to grow, and Europe, Japan and Korea showed signs of growth. 2005 will be a very important year in this regard.

US Wood Furniture Imports: Fastest Growing Markets *
January - December

 

Millions of US Dollars

%Share

% Change

Country
Vietnam
Slovakia
Finland
Brazil
Lithuania
India
Sweden
Germany
Poland
Thailand
China
Malaysia
Chile
Slovenia
Norway
Czech Republic
- World -

2002
75.1
9.7
13.5
221.5
9.9
34.5
37.1
67.5
59.6
340.9
3,716.0
469.6
50.7
49.2
14.3
17.5
11,048.8

2003
171.3
16.7
19.1
255.4
20.9
49.6
39.1
77.0
78.4
360.4
4,698.6
505.2
50.5
49.1
17.1
17.5
12,324.5

2004
356.8
27.6
29.5
352.5
28.8
66.1
50.6
98.2
97.5
445.8
5,703.8
610.0
60.6
58.4
22.4
22.4
14,036.8

2002
0.7
0.1
0.1
2.0
0.1
0.3
0.3
0.6
0.5
3.1
33.6
4.3
0.5
0.5
0.1
0.2
100.0

2003
1.4
0.1
0.2
2.1
0.2
0.4
0.3
0.6
0.6
2.9
38.1
4.1
0.4
0.4
0.1
0.1
100.0

2004
2.5
0.2
0.2
2.5
0.2
0.5
0.4
0.7
0.7
3.2
40.6
4.4
0.4
0.4
0.2
0.2
100.0

- 04/03 -
108.3
64.9
54.2
38.0
37.8
33.3
29.4
27.5
24.4
23.7
21.4
20.7
19.9
18.9
31.0
27.7
13.9


* With imports greater than $20 million in 2004 and imports growing at least as fast as 2004 growth rate
Source of data: U.S. Dept. of Commerce, Bureau of Census

Manufacturing Strategies

Distributors Must be Ready for Life After Lean - A Manufacturing Week Perspective
By Mark Dancer, Pembroke Consulting, Inc. Mark Dancer is Vice President and Principal with Pembroke Consulting. He is based in Chicago and may be reached at www.PembrokeConsulting.com.

In speaking with manufacturing executives at National Manufacturing Week in Chicago, I found optimism on the rise. By most accounts, the recession is seemingly fading into history and sales are increasing and profits will likely follow. There are even speculative plans to increase hiring in a number of sectors. Distributors should take note because their best suppliers may now be on the verge of asserting new strategies and seeking new relationships with their supply chain partners.

To be sure, manufacturers are still struggling. Many executives echoed the consensus view that U.S.-based manufacturing starts off its day with a built-in disadvantage of at least 22 points. Moreover, other familiar problems still threaten manufacturer competitiveness such as China, rising healthcare costs, a shrinking base of qualified employees to draw upon, and intellectual property rights to name a few. Also lurking in the background is tort reform, which is elusive and of particular worry to manufacturers that consider themselves targets in the inevitable next round of asbestos litigation.

There is a belief that many manufacturers emerged from the recession stronger than before, and lean manufacturing was given much of the credit. The fat has been trimmed to the bone and productivity has increased. The principles and managing processes that are now in place will carry forward and the gains will not be reversed. As sales continue to grow, profits will drop to the bottom line and soon new investments and hiring will be necessary to sustain momentum.

I also discovered an emerging and still unanswered question. Is there life after lean? Lean manufacturing helped manufacturers survive and morph into more competitive business models, but aside from the grail of increasing exports and international trade, many executives are looking for a next frontier to cross. A few offered a glimpse of the future.

Some executives are attempting to extend their newfound competitiveness to the way they take their products to market, through the supply chain and ultimately to the customer. Often, this means an extension of lean initiatives. Lean is now more than an initiative - it's a way of doing business.

With supply chain partners and distributors, lean manufacturers are seeking to build partnerships based on finding common ground for mutually reducing costs and increasing productivity. With customers, the goal is to reduce the customers cost of acquiring products, and ultimately, improve the efficiency of the customer's own business. If successful, these companies will transform lean initiatives into a market positioning, a force for driving competitive results and distancing themselves from long-term rivals.

U.S. manufacturing executives are looking for "life after lean." These companies are looking to the customer and seeking to deliver new value-added, differentiation and innovation. Far from seeking to be merely customer-driven, market leaders will also seek to redefine and upgrade the customers' total experience. This new focus includes the traditional realm of manufacturers, namely the products they produce and the results that can be delivered. But, they also go further.

The emerging mantra seems to be that the strength of a company's brand is not only defined by product experience of consumers and users, but also by the activities and excellence of the supply chain that delivers it. Manufacturers can no longer be successful by floating their products in the supply chain, and hoping for distributors, mass merchandisers, specialty retailers and logistics companies to land it safely on the customer's distant shore.

They must seek ways to influence, upgrade and control the channel's value add. Brands go lacking when the customers' shopping, buying, fulfillment and after-the-sale experiences are less than exemplary. In today's competitive world, bad experiences stick to a brand, detracting from its equity and negating a potentially powerful force for the manufacturer.

In my client experience, I find leading manufacturers are now rationalizing, unbundling, and restructuring their distributor supply chains. Others are seeking to create and even franchise new dealer, contractor or aftermarket service models that can upgrade the customer experience and effectively represent the manufacturer's products.

Still others are expanding the role of supply chain service companies to include pick, pack and ship, order fulfillment, and post-sales support. These initiatives all share a common theme of extending the manufacturer's influence downstream, directing and redefining the supply chain for efficiency and effectiveness.

What does the future hold for distributors? It's not clear if a "next new thing" will emerge to replace lean manufacturing initiatives at leading manufacturers. Distributors should stick close to their most innovative and creative manufacturers. But, distributors can also go farther and establish new opportunities for partnering with suppliers.

In some cases, distributor innovation may lead to full, two-way sharing of data and information. CRM technologies provide a starting point, and RFID technology may allow further gains. The goal is to replace today's buy, hold, markup and sell model with a lightning quick supply chain that builds, ships and delivers to directly to customer orders.

Other distributors may find opportunities by suggesting new channel pricing models to replace the current discount and rebate practices. From the manufacturer's viewpoint, discounts and rebates are compensation, that is, a method for motivating distributors to sell and support their products.

However, these mechanisms are at best indirect, and increasingly, destructive as power distributors negotiate increased compensation without commensurate gains or results for suppliers. Fee-for-service models are one potential solution to this problem.

In any event, in a "life after lean" environment, savvy distributors must seek to help support and sustain manufacturer competitiveness. Distributors and manufacturers are partners, and the partnership is strongest when both sides enjoy good fortune. If today's cautious optimism turn to excitement in the manufacturing sector, distributors will want to make sure they go along for the ride.

Manufacturing Strategies

Introduction to Continuous Improvement (CI)
Save the Dates

The WMMA Manufacturing Strategies Committee invites you to participate in two back-to- back continuous improvement workshops:

Introduction to Continuous Improvement (CI)
Thursday, May 12, 2005
(Hotel site to be determined)

AND

5S: Workplace Organization, Laying the Foundation for Improvement
Friday, May 13, 2005
JLT Clamps, a WMMA member
2949 Lee's Chapel Road
Brown's Summit, NC 27214
(10 miles from downtown Greensboro)

Two workshops geared to members of the woodworking industry. Attend either one or attend both at a discount.

The workshops are presented by the Greater Boston Manufacturing Partnership (GBMP), www.gbmp.com Based at the University of Massachusetts, Boston, the Greater Boston Manufacturing Partnership is a non-profit corporation that has worked with hundreds of companies, providing suggestions and solutions - solutions resulting in millions in cost savings and increased sales. Each year the Partnership trains over 7,000 people on Continuous Improvement principles in customized, on-site classroom and shop-floor training sessions and educates over 1,000 more people in public workshops, plant tours and the Manufacturing Roundtable. GBMP is the WMMA partner in working with WMMA members to continuously improve their plant performance.

Introduction to Continuous Improvement
An exciting one-day course including instruction in the philosophies of continuous improvement, the seven wastes, "reliable methods" and techniques for combating waste. Introduction to CI includes a comprehensive, hands-on classroom simulation that shows a factory in transition from batch production (push) to one-piece flow (using pull). The class provides an excellent foundation for companies just starting out and contains many specific improvement ideas that attendees can take away. This course is designed to both inform and inspire individuals about the benefits of unleashing the power of continuous improvement within their organization.

Presenter: Bruce Hamilton, President of GBMP
Bruce brings to every workshop his hands-on experiences as General Manager of United Electric Controls, and his abilities to address the technical side of continuous improvement, while engaging and inspiring employees and managers. While with United Electric, Bruce led their transformation from a traditional batch factory to a single piece follow environment that has become an international showcase.

5S: Workplace Organization: Laying the Foundation for Improvement, an in-plant workshop

The lowest risk, fundamental improvement a factory (or office) can make is taught in this course. 5S is much more than industrial housekeeping; it is the means for creating a predictable, clear baseline for improvement. Guaranteed by-products of 5S include increased space availability (up to 50% or more), savings on small tools and equipment and a visual, standardized work environment. Start your culture change with 5S.

This program will be held on-site at JLT Clamps, 2949 Lee's Chapel Road, Brown's Summit (Greensboro), NC (800 901 8037). You can learn more about JLT at www.jltclamps.com Cost: WMMA has negotiated a group workshop rate and is passing on the savings to all WMMA members and their guests. The cost to members is only $200.00 for one workshop or $450.00 for the two.

Non-WMMA members: $400.00 per workshop or $700.00 for the two. All workshops include lunch.

WMMA members: Bring a client and he/she participates at the WMMA rate.

Lean manufacturing is helping manufacturers survive. However, their continued survival may depend on their ability to extend their newfound competitiveness to the way they take their products to market, through the supply chain and ultimately to the customer. Often, this means an extension of CI initiatives. CI is now more than an initiative - it's a way of doing business. Bring your customers and seek means to not only survive but thrive in 2005!

Details on hotel venue and preferred accommodations to follow
Save the Dates!

For further information on the workshop series contact:
Harold Zassenhaus
Manufacturing Strategies Committee Coordinator
Wood Machinery Manufacturers of America
100 North 20th Street
Philadelphia, PA 19103
Tel: 215 564 3484
Fax: 215 963 9785
Email: hzassenhaus@fernley.com

Member News

Safranek Celebrates 45 Years of the Her-Saf Panel Router
The panel router was born from necessity. In the late fifties, dado blades were not designed to cleanly cut the thin wood veneers being used on plywood. Some people managed to get a decent cut by pulling the workpiece backwards over the dado blades but this is a very dangerous method.

Click here for the official Release from Safranek [ http://www.wmma.org/cuttingedge/mar2005/images/Safranek 45 years of PR.pdf ]

Member News

New Dates for IWF 2006

The International Woodworking Machinery & Supply Fair (IWF) has announced a new pattern of show days for 2006. IWF 2006 will be held Wednesday through Saturday, August 23-26, 2006, from 8 AM to 6 PM daily at the Georgia World Congress Center in Atlanta, GA.

The new dates and extended hours will maximize our exhibitors' and buyers' opportunities to network, conduct business and better utilize their time at IWF 2006.

The new show pattern and extended hours have been set to make it easier and more convenient for buyers to attend the show. The recent changes in airline ticketed rules will provide the buyers more options for attending the show on either weekday or weekend show days.

The largest trade show of its kind in the Western Hemisphere, IWF is owned and sponsored by American Home Furnishings Alliance (AHFA), Wood Machinery Manufacturers of America (WMMA), and Woodworking Machinery Industry Association (WMIA).

Tulane Wood Study

Wood Dust Back in the Spotlight
From the American Home Furnishings Alliance (AHFA)

WMMA is a sponsoring association of the Tulane Wood Dust Study, which just concluded its final year in a six-year study. Results are starting to be disseminated, and this report is one of the latest releases on the implications of the study results.

In February, the American Conference of Governmental Industrial Hygienists revised its cancer classifications and tightened recommended exposure limits for airborne dust. In early March, Tulane University Medical School was to release a report on its six-year study of wood dust and respiratory health. Results of these two studies have returned occupational wood dust exposure to the spotlight. In this article, we assess ACGIH's recent findings and review the history of wood dust research. In May we'll examine the Tulane findings. Click here for a full report from AHFA http://www.afma4u.org/homepage/wooddust05.asp

Industry Opportunities

NC State University/WoodLINKS USA Summer Camp
July 10-14, 2005
Sponsored by the Department of Wood and Paper Science
College of Natural Resources
NC State University

For Rising High School Juniors and Seniors:
Join NC State University Faculty in the Department of Wood and Paper Science in an exciting 5-day experience learning about wood products. You will participate in hands-on, interactive laboratory experiments and will produce wood products. Also, you will travel across NC to visit wood products facilities. This program will accommodate fourteen WoodLINKS USA students based on merit.

Benefits of the Program:

What You Need to Do:

Send your completed application packet, including these forms:

Lesley Grieco
NC State University, WPS
Campus Box 8005
Raleigh, NC 27695-8005

Address questions to Lesley Grieco at (919) 515-7709 or lesley_grieco@ncsu.edu.

Application Reviews will begin on March 15, 2005.
NC State University/WoodLINKS USA Summer Camp
July 10-14, 2005

Click here for Student Sign-Up Forms

[ http://www.wmma.org/cuttingedge/mar2005/images/NC State Camp Forms.pdf