Purchasing Issue: - Maci-mag.com
Purchasing Issue: - Maci-mag.com
Purchasing Issue: - Maci-mag.com
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<strong>Purchasing</strong> <strong>Issue</strong>:<br />
ISM Forecast Sees Mfg Growth in 2011: (Page 10)<br />
New Haas Technical Education Center Opens At<br />
Linn State Technical College<br />
QTE Mfg. Solutions Rolls Out Mastercam X5<br />
Lincoln and Des Moines Show Photos<br />
Natoma, Norton, KS, Finishes Addition &<br />
Installs Nakamura & Citizen Equipment<br />
Bramko Tool & Engineering, O’Fallon, MO. Expands<br />
and Acquires Midwestern LLC.<br />
Year End Tax Tips From TPP<br />
Prsrt Std<br />
U.S. POSTAGE<br />
PAID<br />
Lawrence, KS<br />
66044<br />
Permit No. 34<br />
December, 2010<br />
Photos, Top, L-R: Haas Executives and Linn State Officials at the HTEC ribbon cutting. Bramko’s management team (see page 18).<br />
KC NTMA’s Mike Hudson & Dean Rohr. Bottom L-R: At QTE Mfg. Solutions’ Mastercam X5 rollout; Reece Gibson, Doug Nemeth & Jeff<br />
Kleinheider. The ISM-Nebraska booth at the Lincoln Products Show. Natoma’s Darin Campbell & Todd Boller wiith a new Nakamura.<br />
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Mid-America Commerce & Industry is<br />
published 11 times a year (June and July<br />
are <strong>com</strong>bined) by:<br />
MACI Publishing, Inc.<br />
2432 SW Pepperwood Rd.<br />
Topeka, KS 66614-5293<br />
David Lippe, managing editor; Ray Lippe,<br />
editor. Published since 1973. Mid-America<br />
Commerce & Industry is a registered<br />
trademark of MACI Publishing, Inc.<br />
A one year subscription is $20.00.<br />
Phone: 785-272-5280<br />
Fax: 785-272-3729<br />
Email: maci@maci-<strong>mag</strong>.<strong>com</strong><br />
Web site:<br />
www.maci-<strong>mag</strong>.<strong>com</strong><br />
Mid-America is sent to industrial<br />
purchasing managers, plant managers,<br />
industrial engineers, and <strong>com</strong>pany<br />
presidents in Missouri, Kansas, Oklahoma,<br />
Nebraska, Arkansas and Iowa.<br />
Index- December, 2010<br />
Vol. 38 - No. 04<br />
Natoma Expands: Adds Equipment .5<br />
Mo-Kan AFS: Human Element ........8<br />
ISM Survey: Mfg. Growth Expected<br />
in 2011 ........................................10<br />
Des Moines Show Photos ..............14<br />
New Haas Technical Education<br />
Center at Linn State ....................16<br />
QTE Rolls Out Mastercam X5 .......17<br />
Bramko Tool & Engineering Expands<br />
and Acquires Midwestern LLC ....18<br />
Up<strong>com</strong>ing <strong>Issue</strong>s ...........................20<br />
Year End Tax Planning ...................21<br />
Lincoln Show Photos .....................22<br />
KC NTMA Holds Christmas Party ..24<br />
Hydro Aluminum Extrusion Appoints<br />
Sharpe as Operations Mgr .........26<br />
Editorial ..........................................27<br />
Up<strong>com</strong>ing Trade Shows .................30<br />
4 MID-AMERICA COMMERCE & INDUSTRY
Norton, Kansas<br />
Natoma Corporation Installs Nakamura-<br />
Tome Mill/Turn Center, Citizen L20 Swiss<br />
Turn Center & Completes Expansion<br />
Natoma Corporation, Norton,<br />
Kansas, has recently installed a<br />
new Nakamura-Tome WT-250<br />
mill/turn center, a Citizen L20EIX<br />
Swiss turning center and is <strong>com</strong>pleting<br />
a 30,000-sq.-ft. addition.<br />
The 28-year-old precision<br />
CNC machining firm offers contract<br />
manufacturing to various industries<br />
including; avionics; medical;<br />
lab instrument; environmental<br />
and <strong>com</strong>munications. It offers<br />
CNC milling, turning (including<br />
Swiss), light assembly and packaging.<br />
It also has easy access to all<br />
finishing processes.<br />
The new equipment (purchased<br />
from McClain Tool & Technology),<br />
was needed to replace older<br />
equipment and to improve Natoma’s<br />
capacity and efficiency.<br />
“We have purchased numerous<br />
pieces of equipment from McClain<br />
in the past and have been very<br />
pleased with the equipment and<br />
the service provided,” stated Todd<br />
Boller, VP and son of the owner<br />
and founder, Gail Boller.<br />
The new 7-axis Nakamura-<br />
Tome (the <strong>com</strong>pany’s second) features<br />
2.5” bar capacity, 16” turning<br />
length, and 24 live tools.<br />
The new Citizen Swiss turning<br />
center (Natoma’s third) features<br />
dual spindles, ¾” capacity, live<br />
tooling and a 12’ barfeeder.<br />
“McClain’s service after<br />
the sale makes the purchasing<br />
decision easy,” <strong>com</strong>mented Darin<br />
Campbell, general manager.<br />
“Their equipment is very reliable<br />
and requires little service, but<br />
when it is needed we get next day<br />
service, which is exceptional for<br />
northwestern Kansas.”<br />
Natoma has 25 pieces of CNC<br />
machining equipment. Its crew<br />
Above (l-r): Natoma’s Darin Campbell and Todd Boller with a Nakamura-Tome<br />
Mill/Turn center. Below: A Citizen L20 Swiss Turning Center at Natoma.<br />
of 50 work with a wide range of<br />
materials including: plastics; aluminum;<br />
stainless steel; tool steels;<br />
carbon steel; titanium; brass;<br />
brylium; copper; bronze and exotic<br />
alloys.<br />
The new addition takes the<br />
(Continued on next page)<br />
DECEMBER, 2010 5
...Natoma<br />
Adds<br />
Equipment &<br />
Expands<br />
From Previous Page<br />
total capacity of the plant<br />
up to 70,000-sq.ft. It will<br />
be used for more equipment,<br />
material handling<br />
and storage.<br />
The <strong>com</strong>pany is ISO<br />
and AS9100 certified.<br />
“It’s all about customer<br />
service,” stated Gail<br />
Boller. “If a customer has<br />
a problem we take it very<br />
seriously.”<br />
Natoma Corporation<br />
can be contacted at: (785)<br />
877-3529; Fax (785) 877-<br />
2637; PO Box 88, Norton<br />
Kansas 67654; www.natomacorporation.<strong>com</strong>.<br />
Above and right: Parts<br />
produced at Natoma<br />
Corporation in Norton,<br />
Kansas. The 28-year-old<br />
precision CNC machining<br />
firm serves industries<br />
including; avionics;<br />
medical; lab instrument;<br />
environmental and<br />
<strong>com</strong>munications. It offers<br />
CNC milling, turning<br />
(including Swiss), light<br />
assembly and packaging.<br />
machining & fabricating<br />
CNC Milling<br />
CNC Turning from Swiss to Large 35” x 129”<br />
Fully Automated Emco Cell<br />
High Speed Mills<br />
Grinding<br />
Weldments<br />
1050 E. “H” HIGHWAY<br />
Liberty, MO 64068<br />
Phone: (816) 781-6765<br />
Fax: (816) 415-8044<br />
sales@pridemfgkc.<strong>com</strong><br />
www.pridemfgkc.<strong>com</strong><br />
precision manufactured parts<br />
6 MID-AMERICA COMMERCE & INDUSTRY
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Mo-Kan AFS Learns About The Human<br />
Element in Competitiveness<br />
Above: Jerry Call, AFS EvP, speaks<br />
at the Mo-Kan AFS meeting.<br />
The Mo-Kan Chapter of the<br />
American Foundry Society (AFS)<br />
held a meeting on October 21 st at<br />
the Ameristar Casino in Kansas<br />
City.<br />
The featured speaker for the<br />
meeting was Jerry Call, EVP of the<br />
American Foundry Society.<br />
His topic was “The Human<br />
Element in Competitiveness.”<br />
Call, a 28-year-industry veteran,<br />
discussed the importance of the<br />
workforce in staying <strong>com</strong>petitive<br />
in today’s global economy.<br />
He raised four points for<br />
consideration: 1) The current state<br />
of play; 2) Workforce availability<br />
vs. capability; 3) Valuing your<br />
team; and 4) Involving your team.<br />
He emphasized that focusing<br />
on process and equipment is fine,<br />
but the human element cannot be<br />
overlooked.<br />
In other chapter business,<br />
past Chairman Vicki Brock was<br />
recognized for her service and<br />
retired member Gene McCloud<br />
Since 1922, the Ernest-Spencer <strong>com</strong>panies have been providing first quality products and services to the<br />
Midwest industrial and agricultural <strong>com</strong>munities. We have continued to invest in our facilities, technology and people<br />
so that we may serve as a single-source supplier for all of your fabrication, coatings and construction needs.<br />
FABRICATION COATINGS CONSTRUCTION<br />
The ernesT-spencer <strong>com</strong>panies<br />
3323 East 82nd Street Meriden, KS 66512 Phone: 785/484-3165 Fax: 785/484-2032<br />
Email: sales@esmetals.<strong>com</strong> www.ernestspencer.<strong>com</strong><br />
Above (l-r): Chair Dan Aubuchon<br />
presents a plaque to vicki Brock.<br />
(35 year member) was made a Life<br />
member.<br />
The Mo-Kan AFS can be<br />
contacted at: (913) 621-1320.<br />
8 MID-AMERICA COMMERCE & INDUSTRY
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ISM Survey: Manufacturing<br />
Growth Expected in 2011<br />
Revenues to Increase 5.6%; Capital Expenditures to<br />
Increase 14.5%; Capacity Utilization Currently at 80.2%<br />
Economic growth in the<br />
United States will continue<br />
in 2011, say the nation’s<br />
purchasing and supply<br />
management executives in their<br />
December 2010 Semiannual<br />
Economic Forecast.<br />
Expectations are for a<br />
continuation of the economic<br />
recovery that began in mid-<br />
2009. The manufacturing sector<br />
continues to outpace the nonmanufacturing<br />
sector and has<br />
greater expectations for growth<br />
in terms of revenue, say the<br />
nation’s purchasing and supply<br />
management executives in their<br />
December 2010 Semiannual<br />
Economic Forecast.<br />
The overall forecast<br />
projects optimism about the<br />
U.S. economy for 2011. The<br />
manufacturing sector, overall,<br />
is positive about prospects in<br />
2011 with revenues expected to<br />
increase in 16 of 18 industries,<br />
while the non-manufacturing<br />
sector appears slightly less<br />
positive about the year ahead,<br />
with 12 of 18 industries<br />
expecting higher revenues.<br />
Business investment, a major<br />
driver in the U.S. economy, will<br />
increase substantially in the<br />
manufacturing sector.<br />
These projections are part<br />
of the forecast issued by the<br />
Business Survey Committee<br />
of the Institute for Supply<br />
Management (ISM). The<br />
Above: Norbert Ore, C.P.M., chair of the ISM Manufacturing Business<br />
Survey Committee, speaking at NAPM-Wichita’s September meeting.<br />
forecast was released by<br />
Norbert J. Ore, CPSM, C.P.M.,<br />
chair of the ISM Manufacturing<br />
Business Survey Committee.<br />
Manufacturing Summary<br />
Expectations for 2011 are<br />
positive as 65 percent of survey<br />
respondents expect revenues<br />
to be greater in 2011 than in<br />
2010. The panel of purchasing<br />
and supply executives expects<br />
a 5.6 percent net increase in<br />
overall revenues for 2011,<br />
<strong>com</strong>pared to a 7.9 percent<br />
increase reported for 2010. The<br />
16 manufacturing industries<br />
expecting improvement over<br />
2010 (listed in order) are:<br />
Primary Metals; Fabricated<br />
Metal Products; Petroleum<br />
& Coal Products; Apparel,<br />
Leather & Allied Products;<br />
Transportation Equipment;<br />
Miscellaneous Manufacturing;<br />
Furniture & Related Products;<br />
Plastics & Rubber Products;<br />
Machinery; Textile Mills; Wood<br />
Products; Electrical Equipment,<br />
Appliances & Components;<br />
Food, Beverage & Tobacco<br />
Products; Printing & Related<br />
(Continued on page 12)<br />
10 MID-AMERICA COMMERCE & INDUSTRY
...ISM Survey Sees Growth<br />
in Manufacturing for 2011<br />
..From page 11<br />
Support Activities; Chemical Products; and Paper<br />
Products.<br />
“Manufacturing purchasing and supply<br />
executives have expectations for continued<br />
growth and are optimistic about their<br />
organizations’ prospects as they consider the first<br />
half of 2011, and they are even more positive<br />
about the second half,” said Ore. “While 2010<br />
has been a year of recovery in manufacturing, our<br />
forecast sees improvements in both investment<br />
and employment in 2011. Respondents expect cost<br />
pressures in 2011 to be somewhat greater than in<br />
2010. Manufacturing growth is now in its 16th<br />
consecutive month as measured by and reported<br />
in the monthly Manufacturing ISM Report On<br />
Business.”<br />
In the manufacturing sector, respondents report<br />
operating at 80.2 percent of their normal capacity,<br />
up from 72.8 percent reported in April 2010.<br />
<strong>Purchasing</strong> and supply executives predict that<br />
capital expenditures will increase by 14.5 percent<br />
in 2011, <strong>com</strong>pared to a 5.9 percent increase<br />
reported for 2010.<br />
Survey respondents also forecast that they<br />
will reduce inventories in an effort to improve<br />
their purchased inventory-to-sales ratio in<br />
2011. Manufacturers have an expectation that<br />
employment in the sector will increase by 1.8<br />
percent, while labor and benefits costs are<br />
expected to increase an average of 1.9 percent in<br />
2011. Manufacturing purchasers are predicting<br />
strength in exports and imports in 2011. They<br />
also expect the U.S. dollar to weaken on average<br />
against the currencies of major trading partners.<br />
The panel also predicts the prices they pay will<br />
increase 2.7 percent during the first four months<br />
of 2011, and will increase an additional 1.3<br />
percent during the balance of the year, with an<br />
overall increase of 4 percent for 2011.<br />
Survey respondents expect to realize supply<br />
chain improvements through improved<br />
inventory/asset management; cost reduction;<br />
supplier development/better metrics; supplier<br />
consolidation; and better risk management.<br />
MANUFACTURING SUPPLY CHAIN<br />
PRACTICES IN 2011<br />
In response to a special question regarding<br />
supply chain optimization, 71 percent of<br />
purchasing and supply executives plan to take<br />
new steps in 2011 to improve their supply chain<br />
management practices.<br />
The favored approaches are: Improved<br />
inventory/asset management; Cost reduction;<br />
Supplier development/better metrics; Supplier<br />
consolidation; and Better risk management.<br />
BUSINESS COMPARISON: First Half of<br />
2011 with Last Half of 2010<br />
Looking ahead to the first half of 2011, survey<br />
respondents are optimistic about the next half<br />
year. Comparing their outlook for the first half of<br />
2011 to the last half of 2010, 45 percent predict it<br />
will be better, 17 percent predict it will be worse,<br />
and 38 percent expect no change. Compared to the<br />
diffusion index for the same relative prediction<br />
one year ago (64 percent), respondents are equally<br />
as optimistic about prospects in the manufacturing<br />
sector for the first half year (64 percent). The<br />
13 industries expecting improvement in 2011<br />
12 MID-AMERICA COMMERCE & INDUSTRY
(listed in order) are: Primary<br />
Metals; Petroleum & Coal<br />
Products; Textile Mills;<br />
Transportation Equipment;<br />
Paper Products; Apparel,<br />
Leather & Allied Products;<br />
Miscellaneous Manufacturing;<br />
Fabricated Metal Products;<br />
Machinery; Plastics & Rubber<br />
Products; Food, Beverage &<br />
Tobacco Products; Computer<br />
& Electronic Products; and<br />
Chemical Products.<br />
MANUFACTURING<br />
OUTLOOK FOR THE NEXT<br />
12 MONTHS<br />
Survey respondents are<br />
slightly more optimistic about<br />
the next 12 months, when<br />
<strong>com</strong>pared to their response<br />
in December 2009. The 57<br />
percent who report a better<br />
outlook is greater than the 55<br />
percent response received in<br />
December 2009. The 34 percent<br />
who report that the outlook is<br />
the same is lower than the 35<br />
percent reported in December<br />
2009, and the 9 percent who<br />
indicated the outlook to be<br />
worse is lower than the 10<br />
percent reported in December<br />
2009.<br />
MANUFACTURING<br />
SUMMARY<br />
The manufacturing sector is<br />
currently expanding, and the<br />
forecast indicates that it will<br />
continue to expand in the first<br />
You are just a call away from<br />
experiencing how a quality<br />
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half of 2011 and at a faster<br />
rate in the second half of 2011.<br />
Operating rate is currently<br />
at 80.2 percent.<br />
Production capacity<br />
increased by 7.5 percent in<br />
2010.<br />
Production capacity is<br />
expected to increase by 5.2<br />
percent in 2011.<br />
Capital expenditures<br />
increased 5.9 percent in 2010.<br />
Capital expenditures are<br />
expected to increase 14.5<br />
percent in 2011.<br />
Prices paid increased 3.4<br />
percent in 2010.<br />
Overall 2011 prices paid are<br />
expected to increase 4 percent.<br />
Labor and benefit costs<br />
are expected to increase 1.9<br />
percent in 2011.<br />
Manufacturing employment<br />
is expected to increase 1.8<br />
percent in 2011.<br />
Expect growth in U.S.<br />
exports in 2011.<br />
Expect growth in U.S.<br />
imports in 2011.<br />
Manufacturing revenues<br />
(nominal) are up 7.9 percent<br />
in 2010.<br />
Manufacturing revenues<br />
(nominal) are expected to<br />
increase 5.6 percent in 2011.<br />
The U.S. dollar is expected<br />
to weaken on average versus<br />
major trading partner<br />
currencies in 2011.<br />
Overall attitude of<br />
manufacturing management:<br />
optimistic, with 91 percent of<br />
respondents predicting 2011<br />
will be the same as or better<br />
than 2010.<br />
The entire report on the<br />
survey can be found at www.<br />
ism.ws.<br />
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DECEMBER, 2010 13
Des Moines Product Show Held<br />
The 3rd Biennial Des Moines<br />
Product Show was held on October<br />
27th and 28th at the Hyvee Hall of<br />
the Iowa Events Center.<br />
The event featured exhibits,<br />
demonstrations and seminars.<br />
It was produced by Mid-America<br />
Expositions (www.showofficeonline.<strong>com</strong>).<br />
Photos from the show are<br />
adjacent.<br />
Landmark Manufacturing<br />
Van Am Tool & Engineering<br />
Sioux City Foundry<br />
14 MID-AMERICA COMMERCE & INDUSTRY
I&M Machine & Fabrication<br />
DECEMBER, 2010 15
New Haas Technical Education<br />
Center Opened At Linn State<br />
Linn State Technical College<br />
(LSTC), Linn, Missouri, hosted a<br />
grand opening of the Haas Technical<br />
Education Center (HTEC)<br />
Showroom on Friday, November<br />
19 th .<br />
The event included machining<br />
demonstrations, campus tours<br />
and remarks from Haas and LSTC<br />
leaders.<br />
The new center is the result of<br />
a partnership between LSTC and<br />
Haas Automation, an industry leader<br />
in CNC machinery and manufacturing.<br />
The HTEC at Linn State<br />
is one of 72 across the country. It<br />
allows machine tool technology<br />
students the opportunity to learn on<br />
state-of-the-art equipment used in<br />
the workplace.<br />
“Partnering with Haas Automation<br />
is making the machine tool<br />
program at Linn State more effective<br />
in preparing students and more<br />
appealing to prospective students,”<br />
stated Dr. Donald Clay<strong>com</strong>b,<br />
LSTC president.<br />
The HTEC serves as a Haas<br />
showroom in which Haas can<br />
demonstrate its equipment to<br />
prospective customers. Haas has<br />
entrusted CNC equipment worth<br />
an estimated $380,000 to LSTC<br />
including two turning centers, two<br />
vertical mills, a tool-room mill and<br />
a trunnion. LSTC has an additional<br />
$410,000 invested in Haas<br />
CNC equipment that includes two<br />
control simulators, nine VMCs,<br />
two tool-room lathes and three<br />
turning centers.<br />
The mission of the HTEC<br />
network is to promote and advance<br />
manufacturing and productivity<br />
through excellence in manufacturing<br />
education.<br />
Linn State offers more than<br />
Above (l-r): The Haas crew at the HTEC grand opening: Brian Cregg, Tim<br />
Doran; Kevin Piedimonte, John Crider and Anthony McCollough.<br />
Above: Two Haas machining centers at the LSTC HTEC.<br />
Above: Part of the crowd touring the Linn State HTEC.<br />
35 programs and has campuses in<br />
Linn, Mexico and Jefferson City.<br />
For more information on<br />
LSTC visit: www.innstate.edu.<br />
For more information on Haas<br />
visit: www.HaasCNC.<strong>com</strong>.<br />
16 MID-AMERICA COMMERCE & INDUSTRY
QTE Manufacturing Solutions<br />
Rolls Out Mastercam X5<br />
QTE Manufacturing Solutions<br />
rolled out Mastercam X5 at sessions<br />
in St. Louis and Kansas City<br />
in December.<br />
The new version includes<br />
such features as smart roughing<br />
& finishing; dynamic milling;<br />
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For 25 years, QTE has provided<br />
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Above (l-r): QTE’s Reece Gibson,<br />
Mastercam’s Doug Nemeth and<br />
QTE’s Jeff Kleinheider at the KC<br />
rollout. Left: Part of the class at KC.<br />
DECEMBER, 2010 17
O’Fallon, Missouri<br />
Bramko Tool & Engineering<br />
Expands and Acquires<br />
Bramko Tool & Engineering,<br />
O’Fallon, Missouri, has<br />
recently expanded and acquired<br />
Midwestern LLC (a restructured<br />
version of Midwest Machinery Co,<br />
a mining equipment firm based in<br />
Joplin, Missouri).<br />
Bramko Tool & Engineering<br />
was founded by Ron Swaringim<br />
in 1993 and has been run by his<br />
son, Michael, a 20-year industry<br />
veteran, since 2000.<br />
The ISO 9001:2008-certified<br />
firm is a general job shop that<br />
offers CNC milling, CNC turning,<br />
grinding, EDM work, welding<br />
(Mig & Tig), light fabrication<br />
and tool/mold repair. It works<br />
with all standard metals across a<br />
wide range of sizes. Industries<br />
served by the firm include mining,<br />
recreational and general industry.<br />
Bramko Tool & Engineering<br />
recently <strong>com</strong>pleted an expansion,<br />
which brings the <strong>com</strong>pany’s total<br />
space to 15,000-sq.-ft.<br />
With the acquisition<br />
of Midwestern LLC, the<br />
manufacturing and distribution<br />
operations have been moved to<br />
Bramko’s O’Fallon plant. The<br />
sales and accounting functions<br />
remain in Joplin.<br />
“This acquisition enables<br />
us to diversify our business, get<br />
into the international market<br />
and have our own product line,”<br />
stated Swaringim. He noted that<br />
Midwestern LLC operates in 22<br />
countries around the globe.<br />
Bramko Tool & Engineering<br />
can be contacted at: 832 Midpoint,<br />
O’Fallon, Missouri 63366; (636)<br />
978-1533; Fax (636) 9980-1670;<br />
www.bramko.net.<br />
Midwestern LLC<br />
Above (l-r): Outside Bramko’s O’Fallon facility: Eric Roberts; Gregg<br />
Beechwood; Bob Bristow; Michael Swaringim & Melissa Swaringim.<br />
Above: Bramko Tool & Engineering’s new expansion.<br />
18 MID-AMERICA COMMERCE & INDUSTRY
Above: Parts machined and a<br />
mold repaired at Bramko Tool &<br />
Engineering.<br />
Red, White, And Blue<br />
And Green, Too!<br />
Ninety years of American craftsmanship are<br />
built into every Jensen product and process. As<br />
part of this proud legacy, we strive to be good<br />
stewards of earth’s resources through the products<br />
we make and in the plants where we make them.<br />
Precision casting and machining, expert fabrication<br />
and finishing, and stringent inspections reduce material<br />
waste and increase durability. Components that last<br />
longer and provide superior performance benefit the<br />
environment, as well as our customers.<br />
Every division of our <strong>com</strong>pany shares in this effort, and<br />
we are honored to have received a DOE Energy<br />
Champion Award for reducing our energy consumption<br />
by refitting our foundry with high-efficiency furnaces.<br />
Partner with us on your next project and discover the<br />
difference our values make.<br />
(800) 331-3551 • P.O. Box 1509<br />
Coffeyville, KS 67337<br />
www.jencast.<strong>com</strong> • www.jentechonline.<strong>com</strong><br />
©2010A Jensen-1984<br />
DECEMBER, 2010 19
It’s always a good time to advertise in<br />
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UpCOMiNG iSSUeS<br />
January 2011<br />
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February 2011<br />
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March 2011<br />
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april 2011<br />
MetaLS
Year-End Tax Planning:<br />
Small Businesses Can Save Big Thanks to 2010 Legislation<br />
By Chris McQueen,<br />
CPA – TPP Accounting<br />
The Small Business Jobs Act, the HIRE<br />
Act and Health Care Reform have created<br />
new ways for small businesses to save<br />
money. And while saving is important, so is<br />
spending– especially now that you may be<br />
entitled to a write-off for purchasing equipment<br />
and even hiring new employees. The<br />
more you understand about the tax advantages<br />
available to you, the better positioned<br />
you’ll be to grow your business. Let’s take<br />
a look at what the new legislation might<br />
mean for you.<br />
The Small Business Jobs Act<br />
If you’re in the market to upgrade your<br />
business equipment, now may be the time.<br />
The Small Business Jobs Act of 2010<br />
liberalized tax depreciation, making the<br />
purchase of business equipment more attractive<br />
before the end of the year.<br />
• Profitable <strong>com</strong>panies can immediately<br />
write off as much as $500,000 in equipment<br />
purchases in the first year, as long as the<br />
total assets placed in service during the year<br />
don’t exceed $2 million.<br />
• The increase in the immediate write-off<br />
under code Section 179 is set to expire at<br />
the end of 2011.<br />
This is also an opportune time to purchase<br />
a new <strong>com</strong>pany vehicle, because the<br />
Small Business Act retroactively restored<br />
50% bonus depreciation for the year 2010<br />
only.<br />
• Vehicle must be new (used auto purchases<br />
do not qualify for bonus depreciation).<br />
• Most autos are subject to a per-year depreciation<br />
limit regardless of the cost of the<br />
auto. However, by restoring bonus depreciation,<br />
the amount of depreciation allowed<br />
in the first year on the purchase of a new<br />
automobile in 2010 increases $8,000.<br />
The 2010 HIRE Act<br />
Under the 2010 HIRE Act, tax savings may<br />
be available to <strong>com</strong>panies that hired new<br />
employees after February 3, 2010, or will<br />
hire an employee before the end of the year.<br />
• If the newly hired employee was previously<br />
unemployed for at least 60 days before<br />
being hired by your <strong>com</strong>pany, and if s/<br />
he does not replace other employees in your<br />
<strong>com</strong>pany, then you are exempt from payroll<br />
taxes on the new employee’s wages.<br />
• If you retain the new employee for<br />
at least 52 weeks, your <strong>com</strong>pany<br />
may qualify for a tax credit of up to<br />
$1,000.<br />
Wages paid to the employee from<br />
March 19, 2010 through December<br />
31, 2010 are exempt from your payroll<br />
taxes. (If you believe you hired<br />
an employee who qualifies under the<br />
HIRE Act but have not been taking<br />
advantage of the payroll tax exemption,<br />
you may file amended returns to<br />
recover those amounts.)<br />
Health Care Reform<br />
There has been a lot of talk about<br />
Health Care Reform and the tax credit<br />
that is available to small business<br />
owners who pay for their employees’<br />
health insurance. The maximum<br />
credit allowed under the bill could<br />
be as high as 35% of health insurance<br />
premiums paid by the employer.<br />
However, there are many limits and<br />
phase-outs included in the bill:<br />
• Companies with more than 10 full<br />
time employees or <strong>com</strong>panies whose<br />
full-time employees make an average<br />
of more than $25,000 per year may<br />
find that the tax savings aren’t worth<br />
the time and effort spent gathering the<br />
information needed for the calculation.<br />
• The credit is <strong>com</strong>pletely phased<br />
out for <strong>com</strong>panies with more than 25<br />
full time employees, or if the average<br />
annual wages of your <strong>com</strong>pany’s<br />
full-time employees is greater than<br />
$50,000.<br />
We focus on your<br />
business’ financial<br />
needs - so you can<br />
focus on making<br />
your business<br />
successful.<br />
A few other important “to do’s”<br />
by year end<br />
Some other items to review before<br />
the end of the year:<br />
(1) Accounts receivable aging<br />
reports - Follow up with customers<br />
for invoices past due by 90 days. If<br />
any are determined to be uncollectible,<br />
write them off and take a bad<br />
debt deduction.<br />
(2) Inventory reported on the balance<br />
sheet and current year gross<br />
profit percentages - If inventory<br />
balances or gross profit percentages<br />
are out of the norm <strong>com</strong>pared to prior<br />
years, review overhead allocations<br />
related to cost of goods sold and<br />
perform a physical inventory to determine<br />
if adjustments need to be made.<br />
(3) Fixed asset detailed listing<br />
report - Perform a physical inventory<br />
on the items listed in the report<br />
and delete assets no longer owned.<br />
This can help the <strong>com</strong>pany save on<br />
future years’ personal property tax<br />
assessments and also could result in<br />
a write-off in the current year, if the<br />
discarded asset had not yet been fully<br />
depreciated.<br />
Chris McQueen is a tax manager<br />
at TPP Certified Public Accountants,<br />
a Kansas City-based firm that offers<br />
accounting, retirement plan administration<br />
and CFO services, so you can<br />
focus your time and energy on what<br />
you do best. See TPPkc.<strong>com</strong> for more<br />
information.<br />
TPP’s seasoned CPAs work with clients to<br />
help them minimize their tax liabilities, while<br />
keeping them in <strong>com</strong>pliance with<br />
ever changing tax laws.<br />
We can customize a plan that will maximize<br />
your retirement plan benefits.<br />
Our outsourced CFO services ensure owners<br />
receive the accurate and timely financial<br />
information they need to maximize profitability.<br />
913.498.2200 | www.tppkc.<strong>com</strong><br />
DECEMBER, 2010 21
Lincoln Products Show Held<br />
The 17th Biennial<br />
Lincoln Product Show<br />
was held on September<br />
29th & 30th at the Lancaster<br />
Events Center.<br />
The event featured<br />
exhibits, demonstrations<br />
and seminars.<br />
It was sponsored by<br />
ISM (Institute for<br />
Supply Management)-<br />
Nebraska and produced<br />
by Mid-America Expositions(www.showofficeonline.<strong>com</strong>).<br />
Photos from the show<br />
are adjacent.<br />
Machining / Fabrication (Sheet, Plate, & Structural) / Welding<br />
Turning, Milling, Punching, Cutting, Stamping, & Forming<br />
High-Definition Plasma Cutting / Blanchard Grinding<br />
816 E. Callan Road • Monett, MO 65708<br />
Phone: 417-235-7182 • Fax: 417-235-8262<br />
Email: general@clark-ind.<strong>com</strong> Web: www.Clark-ind.<strong>com</strong><br />
Recognized for our Quality, Service & On-Time Delivery<br />
AWESOME<br />
Powder Coating<br />
If you want the best<br />
POWdEr COAtIng & WEt SPrAy<br />
Parts up to 8’ x 10’ x 60’<br />
Painting, Powder Coating<br />
& Sand Blasting<br />
7601 East 12th Street<br />
Kansas City, MO 64126<br />
Phone: 816-241-1200 Fax: 816-231-5542<br />
Email: a1paintpowder@aol.<strong>com</strong><br />
Web: http://a1powdercoatingpainting.<strong>com</strong><br />
ISM-Nebraska Van Am Tool & Engineering<br />
Grain Belt Supply<br />
Brand Preference Development<br />
22 MID-AMERICA COMMERCE & INDUSTRY
Landmark Manufacturing TCI Fabrication J&J Wire<br />
I&M Machine & Fabrication<br />
Dutton-Lainson Company<br />
DECEMBER, 2010 23
KC NTMA Holds Annual Chistmas Party<br />
The Kansas City Chapter of<br />
the National Tooling & Machining<br />
Association (NTMA) held its<br />
annual Christmas Party at the<br />
Ameristar Casino in Kansas City<br />
on December 4th.<br />
Highlights of the evening<br />
included installing Mike Hudson,<br />
Heartland Fabrication and<br />
Machine, as the new chapter<br />
president for 2011 and recognizing<br />
2010 president, Dean Rohr, R&D<br />
Leverage, for his contributions to<br />
the chapter.<br />
The KC NTMA chapter can<br />
be contacted at (816) 739-4422 or<br />
www.kcntma.org.<br />
Photos from the event are on<br />
this page and are also available<br />
at the chapter’s website www.<br />
kcntma.org.<br />
Above (l-r): Chapter Executive<br />
Torree Pederson is recognized by<br />
Dean Rohr at the Christmas Party.<br />
Above (l-r): Outgoing President Dean Rohr receives a plaque from Past<br />
President Bill Goodman at the KC NTMA Christmas Party.<br />
Above (l-r): In<strong>com</strong>ing President, Mike Hudson is installed by outgoing<br />
President Dean Rohr at the KC NTMA Christmas Party.<br />
Left: Part of<br />
the crowd<br />
at the KC<br />
NTMA<br />
Christmas<br />
Party.<br />
24 MID-AMERICA COMMERCE & INDUSTRY
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Hydro Aluminum Extrusion<br />
Appoints Sharpe as Ops Mgr<br />
Hydro Aluminum’s Extrusion North America<br />
unit, Monett, Missouri, has appointed Robert Sharpe<br />
operations manager for its Central region. Sharpe joined<br />
Hydro in 2009 as one of the Central Region’s Territory<br />
Sales Managers.<br />
“Sharpe has over 13 years experience managing<br />
large teams, while consistently increasing safety, service<br />
and productivity,” said Rhonda Wright, Hydro’s vice<br />
president and general manager in the Central Region.<br />
“I am confident that the Monett extrusion facility will<br />
thrive under Sharpe’s leadership.”<br />
Sharpe attended Tunxis Community College in<br />
Farmington, Conn.<br />
Extrusion North America is a unit of Norsk Hydro,<br />
a global supplier of aluminum and aluminum products.<br />
Based in Norway, the <strong>com</strong>pany employs 23,000 people<br />
in 40 countries and has activities on all continents.<br />
In North America, Hydro provides aluminum<br />
solutions including supply sourcing, extrusion, finishing,<br />
and fabrication of <strong>com</strong>ponents, as well as engineering<br />
and contract manufacturing services, for a variety of<br />
industries. For more information, please visit www.<br />
hydro.<strong>com</strong>/northamerica.<br />
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26 MID-AMERICA COMMERCE & INDUSTRY
CNC FABRICATION & METALFORMING MACHINERY<br />
St. Louis Kansas City Wichita<br />
Al Colby Don Patterson Mitch Brown<br />
314.422.2178 913.558.2121 316.640.5893<br />
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LASERS • PLASMA • PRESS BRAKES • SHEARS • FOLDERS • PLATE ROLLS • PRESSES<br />
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800-831-9252<br />
sales@pvsteel.<strong>com</strong><br />
Editorial<br />
...From page 27<br />
courts dissolved the Standard Oil<br />
Trust in 1892 and in 1911 an antitrust<br />
decision broke the <strong>com</strong>pany<br />
into separate corporations.<br />
Rockefeller retired from<br />
active management in 1895<br />
and until his death in 1937, he<br />
devoted most of his time to his<br />
many philanthropies. (Before<br />
1910 he had given $35 million<br />
to the founding and support of<br />
the University of Chicago and of<br />
course his money is still being<br />
distributed today).<br />
Even after all these years,<br />
some people are still debating<br />
whether these folks really “paid<br />
their dues” to society.<br />
Now about Gates and<br />
Buffett. The two have announced<br />
that 40 of America’s richest people<br />
have agreed to sign the “Giving<br />
Pledge”. This could be at least<br />
$115 billion.<br />
Kimberly O. Dennis,<br />
president and CEO of the Searle<br />
Freedom Trust, expressed her<br />
opinions in a Wall Street Journal<br />
article.<br />
In regard to the amount<br />
pledged, she says, “It’s an<br />
impressive number. Yet some–<br />
including Messrs. Gates and<br />
Buffett–say it isn’t enough.<br />
Perhaps it’s actually too much: the<br />
wealthy may help humanity more<br />
as businessmen and women than as<br />
philanthropists.<br />
“What are the chances, after<br />
all, that the two forces behind<br />
the Giving Pledge will contribute<br />
anywhere near as much to the<br />
betterment of society through their<br />
charity as they have through their<br />
business pursuits?<br />
“Successful entrepreneursturned<br />
philanthropists typically say<br />
they feel a responsibility to ‘give<br />
back’ to society. But ‘giving back’<br />
implies they have taken something.<br />
28 MID-AMERICA COMMERCE & INDUSTRY
What, exactly, have they taken?<br />
Yes, they have amassed great<br />
sums of wealth. But that wealth is<br />
the reward they have earned for<br />
investing their time and talent in<br />
creating products and services that<br />
others value.”<br />
Ms. Dennis believes<br />
foundations can achieve a great<br />
deal if they meet the donor’s<br />
objectives. But, she sees nothing<br />
“inherently better or nobler<br />
about using one’s resources for<br />
charitable purposes than for any<br />
number of other ones. If anything,<br />
the marketplace does a better job<br />
of channeling resources toward<br />
where they are most valued, and<br />
of punishing failure. Companies<br />
shut down all the time. How many<br />
philanthropies close because of<br />
poor performance?<br />
“Charity may solve some<br />
problems, but as Carlos Slim,<br />
the world’s richest man (and a<br />
non-signer of the Giving Pledge),<br />
says: ‘Poverty is not fought with<br />
donations.’”<br />
Of course individuals are free<br />
to do whatever they want with their<br />
money, but we have noticed over<br />
the years that it is very difficult for<br />
the guardians of those foundations<br />
with tens of millions of dollars<br />
to avoid a political leaning that is<br />
sometimes the exact opposite of<br />
the donor’s intentions.<br />
Also, we think of charity as<br />
more short-term aid in helping<br />
people get their lives back,<br />
whether it’s from illness, deaths,<br />
disasters, etc. Since the state is<br />
assuming responsibility for many<br />
functions that used to be performed<br />
by charities–not the least of these<br />
are education, health care and<br />
reliving poverty, it is important<br />
that some of this excess wealth go<br />
to start new businesses. After all,<br />
they are the long-term engines that<br />
allow citizens to earn money year<br />
after year and lead useful, happy<br />
lives.<br />
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DECEMBER, 2010 29<br />
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September 14-15, 2011<br />
Omaha Products Show<br />
Qwest Center, Omaha,<br />
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______________________<br />
October 26, 2011<br />
Sioux Falls Products<br />
Show, Sioux Falls<br />
Convention Center, Sioux<br />
Falls, SD, Mid-America<br />
Expositions, Inc,<br />
800-475-SHOW (7469)<br />
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<strong>com</strong><br />
______________________<br />
October 18-20, 2011<br />
Wichita Industrial<br />
Trade Show, Century<br />
II Convention Center,<br />
Wichita, KS, 316-729-<br />
4433, wits@witshow.org,<br />
www.witshow.org<br />
30 MID-AMERICA COMMERCE & INDUSTRY
Oct. 18th, 19th, 20th, 2011<br />
Century II Convention Center Expo Hall - Wichita, KS<br />
Established in 1974, the Wichita<br />
Industrial Trade Show (WITS)<br />
has be<strong>com</strong>e a signifi cant marketplace<br />
in the heartland of Mid-<br />
America for buyers, manufacturing<br />
sources, industrial material,<br />
machinery and equipment. The<br />
show offers a dual opportunity<br />
for exhibitors from all sectors<br />
of our industrial <strong>com</strong>munity to<br />
present their products and services<br />
and for professionals of all<br />
levels to view the exhibits.<br />
• 20th Biennial<br />
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• Over 4,000<br />
Attendees<br />
Reserve your exhibit space now!<br />
For more information or to make your booth reservation, contact:<br />
Dianna Wolf - WITS, Inc.<br />
PO Box 9251, Wichita, KS 67277 • (P) 316-729-4433 (F) 316-942-2726<br />
www.witshow.org (E) wits@witshow.org<br />
Sponsored by the National Association of <strong>Purchasing</strong> Management-Wichita Chapter
the all-new 2010<br />
Dt-1 Drill/tap Center<br />
Our new drill/tap machine<br />
will stay put on your shop floor,<br />
but it can still move at 1g of acceleration. (1g = 32 ft/s 2 )<br />
released for active duty: 01.01.10<br />
Haas Factory Outlet<br />
315<br />
A Division of NYMAT Machine Tool Corp.<br />
Dt-1 Starting at<br />
$44,995.*<br />
www.HaasCNC.<strong>com</strong> • Fax: 314-567-0220<br />
St. Louis: 136 Weldon Parkway, St. Louis, MO 63043 • Tel: 314-567-4227<br />
Kansas City: 15661 S. Mahaffie St., Olathe, KS 66062 • Tel: 913-768-4227<br />
15661 South Mahaffie, Olathe, KS 66062<br />
Prices and specifications Tel: 913-768-HAAS subject to change • Fax: without 314-567-0220<br />
notice. Not responsible for typographical errors. Machines shown with optional equipment. *Base price in US dollars.<br />
www.HaasCNC.<strong>com</strong>