PUBLIC POLICY

At the recent Fall WMMA committees' meetings, we held a public policy forum to select our priorities for 2010. In the midst of the discussion, we turned to a familiar topic-tort reform, and more specifically, the adoption of a federal statute of repose. As you know, your products, with their incredible record of durability, leave you exposed to product liability claims long after the machinery has been sold to the first customer.

WMMA's involvement in this issue dates back to the mid-1970s. In 1976, Dr. Ralph Baldwin, a wood machinery manufacturer from Grand Rapids and a WMMA member, organized the White House Conference on Product Liability in the Capital Goods Industry. This is how Dr. Baldwin remembered the event:

The original intention was to gather an individual from perhaps 24 companies from a few associations who would meet in the White House before representatives of the Federal Departments of Commerce, Labor, Small Business and OSHA. When word of the meeting got out, I was literally swamped by requests that companies be allowed to send representatives. We ended up in the White House Family Theater, where fire laws limit attendance to 70. We ended up with 10 government people from the four departments on the stage and a standing room only crowd in a room seating more than 70. Thirty-nine companies were represented from 22 national associations and 9 state manufacturing associations. All in all, about 50,000 companies were represented-a powerful message was given to the effect that industry could see the handwriting on the wall. Large portions of economy would not be able to protect themselves and legislative help was essential.

From this conference, nine recommendations emerged as a blueprint for action. Those recommendations were the basis for the various legislative proposals that Congress has considered over the years. To our mutual disappointment, we have never been able to convince Congress to adopt a federal statute of repose.

A few years ago, we collectively made the decision that we would give up the formal effort to secure a federal statute of repose; however, we continue to use the Congressional Fly-ins to educate Congress about the issue.

In the public policy forum, I was asked about the prospects for any discussion of any type of tort reform, not just product liability, in Congress. I answered that the chances ranged somewhere between nil and none. Well, I don't mind admitting I am wrong, especially when it might lead to good things.

As Congress has proceeded in its long march to health care reform, the issue of medical malpractice has been raised. The Congressional Budget Office (CBO) was asked to comment on whether tort reform could save us money. CBO has actually acknowledged that medical malpractice reforms could reduce the cost of health care. The CBO found that by adopting tort reform measures, federal spending would be reduced by $41 billion over ten years and the federal deficit would decline by $54 billion.

The CBO said, "Tort reform could affect costs for health care both directly and indirectly: directly, by lowering premiums for medical liability insurance; and indirectly, by reducing the use of diagnostic tests and other health care services when providers recommend those services principally to reduce their potential exposure to lawsuits."

What would be necessary? According to the CBO:

The two most common ways of imposing limits on liability are to shorten the statute of limitations on malpractice claims and to change the rules regarding joint-and-several liability. The principle of joint-and-several liability allows a claimant to recover the entire amount of a damage award from any one of the parties found to be responsible for an injury, regardless of the party's degree of responsibility for that injury. Replacing joint and-several liability with a "fair-share" rule would limit each defendant's financial liability to his or her percentage share of responsibility for the injury.

Several times over the past decade, CBO has estimated the effects of tort reform proposals, including:

• A cap of $250,000 on awards for noneconomic damages;
• A cap on awards for punitive damages of $500,000 or two times the award for economic damages, whichever is greater;
• Modification of the "collateral source" rule to allow evidence of income from such sources as health and life insurance, workers' compensation, and automobile insurance to be introduced at trials or to require that such income be subtracted from awards decided by juries;
• A statute of limitations—one year for adults and three years for children—from the date of discovery of an injury; and
• Replacement of joint-and-several liability with a fair-share rule, under which a defendant in a lawsuit would be liable only for the percentage of the final award that was equal to his or her share of responsibility for the injury.

The health care reform legislation, at least at this point, does not include those types of reforms. Efforts are being made to amend the bill to include them. I do not know if they will be successful, but just the fact we now have some documented acknowledgment of the value of tort reform is progress, albeit modest progress.

INTERNATIONAL BUSINESS DEVELOPMENT

It's happening again and members should take advantage of it. The dollar has taken a steep tumble — 15 percent over the past 12 months against the euro; more than 30 percent against the Australian dollar and 20 percent against the Brazilian real as the U.S. government has printed more money and kept interest rates low.

U.S. dollar rate
Country	11/4/09	11/4/08	% change
Euro	0.679	0.7821	15.18409
Brazil	1.7642	2.1725	23.14363
Canada	1.0767	1.1978	11.24733
China	6.838	6.8481	0.147704
India	47.3632	50.1156	5.811263
Australia	1.1103	1.4788	33.18923
Source: The Economist

The moves have sharply improved the U.S. trade deficit — everything from American made airplanes to furniture have become more competitive overseas. At the same time foreign made products are more expensive upon arrival on U.S. shores (with the major exception of China). Furthermore, foreign products (China excluded) are also less competitive in our most important markets like Russia, India, China, Canada, Mexico and Brazil.

The present is no different than the past when the dollar fell precipitously. Then, as now, our trading partners are raising objections to the dollar's decline. Brazil is concerned and has enacted investment restrictions to stem the U.S. dollar's fall. The Swiss and Spanish are complaining that the foreign exchange rate change is more a factor than weak global demand. Officials in the 16 countries that use the euro warn a continued slide of the dollar may pose long term structural problems for Europe, forcing down wages and hurting employment. In some circles, the decline is seen as a protectionist move by the U.S. — something our government has strongly denied.

French economist Yves de Kerdrel wrote in Le Figaro recently "If the dollar is going down this way, it is because that is what the American[s] want. … In a globalized economy where national egoisms persist but where customs barriers have almost disappeared, the best protection consists in playing on exchange rates."

A more realistic explanation for the decline is provided by Stephen King, chief economist at HSBC, London "…there is a sense that in some very defined and critical way, the dollar and the US has borrowed so much from foreigners. They've got a rising budget deficit and few ways to bring it under control. These are the things that affect the value of a currency."

The dollar has also fallen because investors are feeling more confident about the global economy. During the height of the economic crisis, the greenback was seen as one of the safest investments to make. As the crisis subsides, investors are reevaluating their investments and looking to diversify into markets that are not as risky as 8-12 months ago. This includes commodities markets — hence the recent rise in oil prices — as well as company stocks and country bond issues.

There is a risk of course that some of the large U.S. bond holders, like China and Japan, will pull their investments out of the U.S. and cause a run on the dollar. This would force the Fed's hand to increase interest rates and stem the flow. China has made sounds that it will move away from the dollar and divest their holdings. But, in reality, they have made only modest withdraws.

So for now, the weak dollar is a problem the U.S. government loves to have. "Right now, you're getting an economic bump from it" said Fred Bergsten, director of the Peterson Institute for International Economics. "Our conclusion is that the dollar's value is just about right where it should be."

Over time, the pendulum will swing back, as it has in the past. The dollar will rise as the U.S. gets economically stronger and/or the Fed increases interest rates. In the meantime, the U.S. woodworking equipment industry has an opportunity it should not waste.

BUSINESS DEVELOPMENT

Construction Put in Place – September 2009
Manufacturing ISM Report on Business
Manufacturer's Shipments Inventories and Orders – September 2009
Manufacturing and Trade Inventories and Sales – August 2009
Purchasing Managers Index – October 2009
New Residential Construction–September 2009
U.S. Leading Indicator – September 2009

To access all of the monthly economic reports, please log on to this page: http://www.wmma.org/members/bus_develop.cfm, using your member username and password.

MANUFACTURING STRATEGIES

The revisions to the American National Standard for Woodworking Machinery (ANSI O1.1 - 2004) have been completed and will be available for public review by early 2010. The standard is maintained by the Accredited Standards Committee (ASC) O1 in accordance with the consensus committee method described by the American National Standard Institutes procedures. WMMA serves as the secretariat of the committee, which is chaired by Michael L. Gililland.

Lean Certification for WMMA Members

Consider becoming lean certified! Through WMMA's alliance with the Association for Manufacturing Excellence (AME), employees of manufacturing member companies have the opportunity to receive discounts on programs to become lean certified.

This Lean program is the benchmark for achievements and personal growth in Lean. Designed by three organizations — AME, the Society of Manufacturing Engineers (SME), and The Shingo Prize for Excellence in Manufacturing — the certification program has established the standard for continuous improvement and Lean practices.

For WMMA active manufacturing members the discount is the same as if you were a direct member of AME or SME. The discount is 35 percent off each module based on the published pricing schedule.

What are the benefits of lean certification? Certification gives an individual a recognized level of competence that is portable from job to job. With companies that are members of the organizations that are sponsoring the program, it adds credibility to an applicant's qualifications within the manufacturing spectrum. Employers will have reasonable assurances that the individual is knowledgeable about and capable of lean processes.

For more information, please go to http://www.sme.org/cgi-bin/getsmepg.pl?/cert/lean_certification.htm&&SME&.

NEWS YOU CAN USE

Your customers have probably started asking themselves this question since the issue of regulating combustible dust arose last year. Your customers are probably also wondering what is combustible dust? WMMA has created the Industrial Dust Task Force to help filter through all the information. While this issue does not necessary directly impact us as manufacturers or suppliers it potentially impacts ALL our woodworking and other dust producing customers. Our role as a Task Force has been to inform and educate our members on the issue of combustible dust.

In late October OSHA issued its advance notice of proposed rulemaking (ANPR) for combustible dust. As OSHA notes:

OSHA is requesting comments, including data and other information, on issues related to the hazards of combustible dust in the workplace… OSHA plans to use the information received in response to this notice in developing a proposed standard for combustible dust.

The WMMA IDTF is evaluating next steps in response for the comment period which ends January 19, 2010. If you would like to be kept in the loop or get more involved, please contact me.

Social Media Marketing: To Tweet or Not to Tweet? by Bob DeStefano, SVM E-Business Solutions

If you follow the latest trends in online marketing, and maybe even if you don't, you are probably hearing plenty of buzz about social media. Marketing professionals throughout the world are praising social media sites like Facebook, Twitter and LinkedIn as the answer to all of our marketing prayers.

So, what is social media and should you jump on the marketing bandwagon? In this article, my goal is to separate the hype from the helpful in social media marketing so you can figure out if your business should dive in and integrate social media into your marketing mix.

Social media Websites provide an online platform for like-minded individuals to connect, share ideas and communicate. Some of the most popular social media sites include the following:

• Facebook is a place for friends. It's all about "who you know" and provides a platform for friends to connect (or reconnect) and share ideas, happenings, photos and other information. Some companies are setting up outposts on Facebook, called "Fan Pages," to market their business and connect with customers. However, in my opinion, who wants to be "friends" with a company?
  
  
• Twitter is a place for broadcasting ideas. Where Facebook is about "who you know," Twitter is about "what you know." Twitter provides a platform for people to broadcast 140 character messages, called "Tweets" to their "Followers." People can choose to follow others and receive all their Tweets as soon as they are posted. Some companies are using Twitter as a listening tool, monitoring their customer's Tweets to hear what's being said about their products or services. Other companies are using Twitter to broadcast exclusive offers and specials to their customers. To me, Twitter just seems like a lot of shouting.
  
  
• LinkedIn is a place for professional networking. In many ways it's like an interactive resume on steroids, allowing individuals to post multimedia content demonstrating their expertise, work experience, education and accomplishments. It also allows you to connect with other colleagues, in most cases providing you with access to their network of connections. In my opinion, LinkedIn is the best business tool of the bunch. It allows you to market yourself and manage your personal brand. In addition, LinkedIn is a great tool for salespeople looking to expand their network to open doors at target companies.

As an industrial or B-to-B services company, should you embrace social media as a marketing tool? My answer is…maybe. If you haven't already, I recommend you setup a LinkedIn profile for yourself - it's very easy to do and can't hurt. As for Facebook and Twitter, I recommend you proceed cautiously. If you see obvious business-building benefits for using Facebook and Twitter, then jump in and give them a try. If not, you may want to put them on hold for now.

In my experience, too many industrial and B-to-B services companies are still struggling with the basics of online marketing to waste their time and money dabbling in social media. If you agree with all of the following statements, then give social media marketing a try:

• My Website is my most powerful marketing tool.
• My Website generates all of the leads I need to support my business.
• My company is on the first page of Google for every popular phrase my customers use.
• Email marketing helps my company nurture new customers and generate repeat business.
• I know that I am generating a strong return on investment for every dollar I spend on marketing.

If you do not agree with any of these statements, then put marketing on Facebook and Twitter on hold for now and focus your time and marketing dollars on your Website, search engine marketing, email marketing, marketing analytics and other tried and true marketing tactics.

To learn more about how to implement successful online marketing strategies, I encourage you to download our free Online Marketing Planning Guides, as well as a request a free Website Analysis.

ASSOCIATION NEWS

Facebook. Twitter. YouTube. Online Forums. As more and more individuals of every stripe and affiliation are becoming involved in online communities, WMMA will join the growing number of associations who are connecting members with one another for meaningful dialogue. Fernley & Fernley, WMMA's management association, recently highlighted the topic in a recent issue of Volunteer Leadership Today.

Meeting in Chicago in the fall, members of the WMMA Strategic Visioning Task Force, Business Development Committee and Membership Services Committee agreed to provide strategic direction and their own business savvy with the latest social networking and web tools to help WMMA plan and execute various initiatives.

If you have any suggestions, experiences, and preferences, please contact the editor at info@wmma.org. You are also welcome to direct any inquiries to members of the just-established Web Task Force. Chaired by Jamie Scott, Air Handling, the task force members are Kris Hanchette, Multicam; Harry Miller, Mereen-Johnson; and, Whitney Wiggin, Hendrick Manufacturing.

Meanwhile, look for enhancements to the Members' Only section of the WMMA Web site and for a special Members' Only Best Practices Forum soon!

Room Block for IWF 2010

WMMA has a block of sleeping rooms for members exhibiting at IWF 2010 at the Hyatt Regency Atlanta. Click here for details on how to make your reservations.

Forget Yesterday, It's a New Tomorrow for 2010 Woodworking Industry Conference Attendees

WIC 2010 attendees can enjoy dinner at the famous Monterey Bay Aquarium, during an exclusive, optional evening. Look for the event in registration details available in early 2010.

Industry Leaders to Discuss Succeeding in the Recovering Economy April 21-24, 2010 in Monterey, California

Industry professionals looking to network and discuss strategies for recovering from a difficult 2009 should plan to attend the 2010 Woodworking Industry Conference in Monterey, CA. Set for April 21-24, WIC 2010 is themed, Forget Yesterday, It's a New Tomorrow as a reminder that the current economic downturn will not last, and one of the keys to surviving a downturn is planning for the economy's inevitable recovery. Read more.

MEMBER NEWS

Rich Christianson, Wood & Wood Products

Mike DiGiuro, Flexible Materials

Jamie Scott, Air Handling System

WMMA members will be among the speakers at The Second Annual Dollars & Sense of Going Green Conference, organized by Purdue University — Department of Forestry and Natural Resources and Wood & Wood Products. The conference is November 19-20, 2009 in Schaumburg, IL.

Welcome and Conference Overview
Rich Christianson, Associate Publisher, Wood & Wood Products

Evaluation of Adhesives for Green Manufacturing
Kent Pitcher, President, CP Adhesives, Inc., representing Spectrum Adhesives

• "Green" alternatives for manufacturing hardwood plywood panels and other products
• Regulatory, environmental and business/operational considerations of using several commonly available adhesives

Architectural Wood Products — LEED/CARB/FSC
Mike DiGiuro, Flexible Materials Inc.

• What is LEED and how does it affect me?
• The FSC Chain of Custody Process
• Why do I care about a CARB rule only relevant in California?

Combustible Dust… An Explosive Issue
Jamison Scott, Corporate Officer, Air Handling Systems

• What is combustible dust?
• Who's in charge?
• Can it happen in my shop?
• Prevention!

Exciting Educational Programs in Warren County, TN

Todd Herzog, Accu-Router, a past president and current member of WMMA, has led a coalition of business, education and political leaders that has advanced higher education opportunities for the young people of their community over the past three years. The coalition started a two-year tuition free education program for local graduating high school seniors called Citizens for Progress (CFP). The coalition also raised money for a new program at the Motlow State Community College campus called Mechatronics. Mechatronics brings systems training skills in computers, mechanics and electronics to develop students for manufacturing jobs. Despite the economy, the group raised almost $745,000 over the past three years. Read more about it in Todd's own words here.

3M Introduces the Next Generation of Woodworking Abrasive Belts

3M has introduced a new generation of F-weight paper belts reformulated for longer life, improved cut and finish and enhanced dust management. The entire F-weight paper belt family is redesigned for outstanding performance in wide belt applications and, as a result, many customers will experience dramatic productivity improvements in their sanding operations.

"We've improved the mineral and resin backing materials in our F-weight paper belts so they now last longer and perform better than ever before—all at no extra cost to customers," said Tom Eggert, 3M Woodworking Business Manager. "I'm also happy to announce that these products are made in 3M's newest state-of-the-art manufacturing facility in Alexandria, MN. 3M's investment in this new factory will allow us to help our customers remain productive and globally competitive for many years to come."

For more information about the full 3M woodworking product line, visit www.3M.com/woodworking.

Tribute to Late Industry Veteran, Gene Hansen

Gene Hansen

Gene's professional career was dedicated to the woodworking industry. For two decades he served as vice president/general manager of Fletcher Machinery. Upon leaving the machinery industry Gene moved to marketing and advertising. Most recently he was the Mid-Atlantic and New England regional sales manager for Watt Publishing Co.

Gene Hansen had an inherent ability to build strong relationships. He was the consummate professional with a magnanimous character and earnest dedication to his craft, colleagues and clients. Gene's enthusiasm, faith and energy for life were infectious and will not be forgotten by those that were privileged enough to work with him.

Welcome New Members

Felins USA, Inc.
8304 W. Parkland Court
Milwaukee, WI 53223
800.843.5667
www.felins.com
Key Contact: Linda Yanke, Sales Coordinator

Kerfkore Company
2630 Sidney Lanier Drive
Brunswick, GA 31525
www.kerfkore.com
800.637.3539
Key Contact: Thomas P. Phillips, President & COO

Schneeberger
1380 Gateway Drive
Elgin, IL 60123
www.schneeberger-us.com
(847) 888-3498
Key Contact: Rolf Herrmann, General Manager

Tenn-Tex Plastics, Inc.
8011 National Service Road
Colfax, NC 27235
336.931.1100
www.tenntex.com
Keith Hazelton, National Sales Manager

Q & A WITH NEW MEMBERS

What makes your business or products "different" or "noteworthy?" Felins equipment is American made, efficient, reliable, and helps to reduce labor costs.

Please describe your business! Felins has been manufacturing quality packaging equipment in Milwaukee, WI since 1921. Founded by Fred E. Lins, today we provide equipment, product line service and support both directly and through factory trained distributors worldwide.

Our key product lines are:

• Flex Strap Stretch Film Banding Machines
• Pak-Tyer Tying Machines
• STS shrink film wrappers, baggers and heat tunnel systems

How would you describe the company's business mission or philosophy? Felins' goal is to provide value-added packaging solutions designed for maximum production efficiency and cost effectiveness by adapting our solutions to meet our customers' packaging goals.

How did you come to join WMMA and how do you hope to benefit from your membership? We were contacted at the IWF Show and Jim Beach explained the benefits of joining.

We hope to increase our sales exposure through the WMMA site, save money exhibiting at the IWF Show with our 20 percent booth discount, and participate in the scholarship program.

Kerfkore Company

What are your company's primary concerns in the woodworking industry? We think that it's important that companies remain productive and profitable so that we will be healthy when the industry and economy begin to grow again.

Please describe your company and what makes it "noteworthy"? Founded in 1984 in Brunswick, GA, Kerfkore develops and manufactures innovative panel products for the building materials industry. We have bendable panels that allow fabrication of smooth and uniform curves and lightweight panels to reduce weight.

Our key product lines are:

• Kerfkore
• Timberflex
• Flexboard
• Econokore
• Foamkore

How did you come to join WMMA? We are always looking for ways to network and grow, and WMMA can provide both.

Quality Vakuum Products

How do you hope to benefit from your WMMA membership? We hope to save money and learn about selling opportunities overseas.

Please describe your business! Quality Vakuum Products is a manufacturer of vacuum pressing/bagging and vacuum clamping systems. Large selection of air-powered or electric vacuum pumps. Custom systems including frame presses and VAKuum Bags with fast turn around. Veneering accessories and veneer glue.

Our key product lines are:

• NU-Matic series, an automatic air powered vacuum pump with 7 models from 2 to 55 CFM of vacuum flow
• ES series of automatic electric vacuum pumps up to 10 CFM of vacuum flow
• Frame presses with capability to press up to 20 or more panels at once
• 25 different size stock vacuum bags and custom bags 12' wide and up to 80' long
• Veneering accessories and glue for "One Stop Shopping"

What makes your business or products "different" or "noteworthy?" We do custom size frame presses, vacuum bags and vacuum pumps with very short delivery times. Most stock items have same day shipment. Custom bags and frame presses ship in 24 hours 99 percent of the time. Will design custom equipment for special needs.

How would you describe the company's business mission or philosophy? Provide top quality products at fair prices and service beyond normal expectations.