american

www.amba.org
the

mold builder
Volume 25 No. 2

speak out
a message from our president
Mike Armbrust

IN THIS ISSUE:
Business Forecast Results
A
s we enter the new year, I am pleased to report some exciting news. The AMBA Board of
Directors has spent the last six months working diligently to set a new course of direction for the
American Mold Builders Association – a direction defined by greater value, increased resources
and new cost savings programs for our membership. Through numerous strategy sessions with
the consulting team of Harbour Results (who also has acted as the interim AMBA management team since
July), the Board has developed a new organizational plan, building a strong base from which the AMBA
will service its membership and help them flourish in today’s changing manufacturing environment.
Our goal is to provide you with the tools, resources, educational forums and networking opportunities
vital to the growth of your business and, on a broader scale, the growth of the American mold building
community at large.

Conformal Cooling: Why Use it Now?
Collapsible Core Technology
To this end, on behalf of the AMBA Board of Directors, I am excited to announce that we have selected
the management team of First Resource, Inc. to lead the AMBA in our future endeavors. First Resource
is a management company that specializes in providing unique services and programs to U.S.–based
manufacturing associations. The board felt it necessary to utilize the resources of a solid management
company with an outstanding track record of providing value-added services to its association-based
customers, not to mention a strong knowledge-base of the plastics industry.

Under the helm of Executive Director Troy Nix and Managing Director Kym Conis, the First Resource
AMBA News team will work with AMBA staff to implement the new strategic plan moving forward. Troy brings
a strong background in association management coupled with years of leadership experience as
an Officer in the United States Military, a manager in a fortune ten company and over a decade of
experience as a business entrepreneur.
AMBA Welcomes New Members
Kym brings nearly 18 years of association management experience to the AMBA, with a significant
event management background and expertise in marketing. Together with Sue Daniels and Shannon
Merrill at headquarters, she will manage the day-to-day operations of the organization, implementing
many leading-edge programs (such as industry-specific benchmarking programs) that will have a
significant impact on the growth of your business and ultimately, on the strength of our association.

2011 holds great promise for our industry and for each and every one of our businesses, if we take
winter 2011

action and seize the opportunities that lie before us. And the first of these opportunities is the AMBA
Annual Convention, which many of you have made the commitment to attend. Scheduled to take
place March 2-6, 2011, at the Red Rock Resort and Spa, the convention is the perfect opportunity for
members to learn about the new programs and services that will be available in 2011, meet the new
AMBA management team and network with industry peers to learn what they are doing to drive their
businesses in 2011! What’s more, the strong line-up of value-added sessions focused on profitability,
the latest mold-building technologies and best practices in the marketplace is sure to provide ideas,
solutions and an edge over the competition.

Here’s to seeing you in Vegas and to a profitable 2011!

 “Quality molds need quality components.
That is why our source is Progressive.”
Tom Andrews, Dynamic Tool & Design

longterm thinking
Successful mold builders know that their viability in the years
ahead comes from the performance of their tools today.
Progressive understands this and has developed these advantages:

• Unmatched performance from Friction Free Alignment Locks,

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• Innovations such as Collapsible Cores and Expandable Cavities that

offer alternatives to reduce cost, cycle time and mold maintenance.

• Dimensional integrity maintained to exacting standards for the

extensive range of off-the-shelf catalog standard items.

It’s your name on the outside of the mold. With Progressive Components
inside, your customers can achieve profitability for the lifetime of your tools.

receive our new catalog

2
by calling 1-800-269-6653
www.amba.org AMBA
In this Issue:
The official publication of
Winter Business Forecast Survey ...........................................................4
American Mold Builders Association
Indiana High Schools Teach Molding/Moldmaking Skills . ...................6
Leading the Future of U.S.
Conformal Cooling: Why Use It Now?...................................................8
Mold Manufacturing
Justifying a Mold Rebuild Utilizing Collapsible Core Technology . ....11
AMBA Answers.....................................................................................12
Considerations for Effective Risk Management ...................................13
AMBA News ..........................................................................................16
Additive Manufacturing Technology – DMLS –
Used to Increase Tool Efficiency...........................................................18
Member News . .....................................................................................19 3601 Algonquin Rd, Suite 304 • Rolling Meadows, IL 60008
AMBA Welcomes New Members ........................................................21 phone: 847.222.9402 •fax: 847.222.9437
email: info@amba.org • website: www.amba.org
West Michigan Chapter Recognizes a True American Hero ................21
Chapter News . ......................................................................................21 Officers and Board of Directors
AMBA Partner Spotlight - Welcome New Partners...............................22
President
Human Resources Mike Armbrust, Mako Mold Corporation
Are You Hiring? Background Checks Are Vice President
a Good Hiring Practice ..............................................................22 Todd Finley, Commercial Tool & Die
Structuring a New Employee Orientation . ................................23 Secretary
It’s Flu Season ...........................................................................23 Shawn McGrew, Prodigy Mold & Tool
Healthcare Reform Changes ......................................................25 Treasurer
Good Time to Check Your Posters . ...........................................25 Mike Bohning, Creative Blow Mold Tooling
Be on the Lookout – NLRB New Poster is Coming . ................25 Association Legal Councel
Record Retention Tips for Federal Contractors..........................26 Richard N. Mueller & Associates
Tax & Business Board of Directors
Tax Relief Act Passes.....Finally!................................................26 Steve Rotman, Ameritech Die & Mold
Accountable Plans 101................................................................26 Shawn McGrew, Prodigy Mold & Tool
Business Cell Phone Restrictions Removed...............................28 Justin McPhee, Mold Craft
Preserving Tax Deductions for Business Travel.........................28 Robert Earnhardt, Superior Tooling
Retirement Plan Limitations Unchanged....................................29 Todd Finley, Commercial Tool & Die
Dan Glass, Strohwig Industries
Small Business Jobs Act.............................................................30
Roger Klouda. M.S.I. Mold Builders
Tax Credits for Small-Business Health-Care Costs in 2010 -
Scott Phipps, United Tool & Mold
What is the Definition of a “Small Business”?...........................31
Robert Vaughan, Fairway Injection Molding Systems
DANGER, Will Robinson, DANGER! Group Health Plans
to Become Subject to Nondiscrimination Rules.........................31
Mike Walter, MET Plastics
Andy Baker, Byrne Tool & Die
EFTPS changes as of January 1, 2011........................................32
Michael Bohning, Creative Blow Mold Tooling
Business Success Strategies
New Small Business Loans Approved in “Minutes”..................32 AMBA Team
The Need for Business Planning.................................................33 Troy Nix, Executive Director
Kym Conis, Managing Director
Succession Planning/Estate Planning/Lifetime Planning…
Three Natural Companions for Family Business Owners..........35 Susan Daniels, Member Services Coordinator
Shannon Merrill, National Chapter Coordinator
Classified Corner...................................................................................36
Gibson Insurance The American Mold Builder is published four times annually in spring,
Change of Carriers Now Permitted for summer, fall and winter by the American Mold Builders Association.
Grandfathered Health Plans........................................................37 Assistant Editor: Sue Daniels; Contributing Author: Clare Goldsberry;
Layout & Design: Controlled Color, Inc. phone 630.295.9210;
EEOC Claims Set New Record..................................................38
Publishing: Your Images Group, Inc., phone 847.437.6688; Copy
Product Recall - Should You Insure Against It?.........................38 deadline: 25 days preceeding publication date. Contact AMBA at
Market Outlook 2011..................................................................38 847.222.9402 or email info@amba.org for advertising information,
article submission ideas or a subscription.
Tech Corner............................................................................................38
Dates to Remember................................................................................42 Opinions expressed in this publication may or may not reflect the views
of the Association, and do not necessarily represent official positions or
Advertiser’s Index..................................................................................42
policies of the Association or its members.

AMBA www.amba.org 3
 Moldmakers Continue
AMBA Winter Optimism
2011 Business Forecast into 2011
Survey Results

The AMBA Business Forecast Survey was developed to provide AMBA members with information
on the current business conditions and a projection of the upcoming months. The Winter 2011
Survey resulted a response rate of 37% from AMBA members. Business remains "Good"
for 56% of the respondents, and for 18% of the respondents it is "Excellent."

Optimism seems to be the pervading outlook according to the Projection

AMBA Members Current Business
Projections of their
of Business Overcompany’s
the Next 3 business over the next three
AMBA Winter 2011 (fourth
Conditionsquarter) Business Forecast Survey. months – the
Months first quarter of 2011 – shows that optimism
Increase
Business continues getting better for theExcellent
majority of respondents. continues to be strong. While only 6% of the respondents expect
Substantially
56% 42%
The quarterly survey revealed that current business conditions business to “Increase Substantially” – the same as the Fall 2010
Increase
improved significantly over the previousGood three months, with survey, those expecting business to “Increase Moderately”
Moderately
18% of the respondents saying that business Fair is “Excellent” – up however, increased once again to 42% from 35% in the Fall
Remain the
three percentage points from the Fall 2010 survey, a double the survey.
AMBA Winter 2011 Business Forecast Survey Results Respondents expecting business
Same
to “Remain the Same”
number of respondents reporting excellent Poorbusiness conditions 6% came in at 40%, down from 44%, in the Fall survey, showing
18% 40%
Decrease
in the The
SummerAMBA
0% 2010 Business Forecast
20%
survey. This Survey
is the best
Bad
was
percentage developed
for this to provide
1%ofAMBA
signs an members
increase.
11% That with
is information
evident with
Moderately
respondents expecting
on in
category the current
several 6% continuing
business
years, conditions
a trend and a projection
for the last three of the business
upcoming to months.
“DecreaseThe Winter 2011
Moderately” dropped four percentage
Survey
quarters resulted
of 2010. A totalaofresponse
37% of the rate of 37% from
membership AMBAtomembers.
responded pointsBusiness
to 11% from remains the Decrease
15% in"Good" Fall 2010 survey – the same as
Substantially
for 56%
this recent of the respondents, and for 18% of the respondents
survey. theitSummer
is "Excellent."
2010 survey. Only 1% of the respondents expect
Current Level of Business in Last business 3 Months to “Decrease Substantially.”
70% AMBA Members Current Business Projection of Business Over thecompany’s
Next 3
Quoting
When asked to compare their current level of
Conditions Months
60% business with that of three months ago, responses indicate some
Increase
Excellent Shipments Substantially
50% 56% movement
42% in a positive direction:
Good Increase
40% Backlog
Quoting activity once again ticked UpModerately by one percentage point
30% Fair
to 37% of the respondents Profits to the Winter 2011
Remain thesurvey; the Same
for 41% of the respondents, down from Same 49% in the Fall 2010
20% Poor 6% AMBA Winter 201140% Business Forecast Survey Results
18% survey; and Down for 22% Employment Decrease Comments
of the respondents.
10% 0% 20% 1% 11%was developed to provide
Bad The AMBA Business Forecast Survey AMBA members with information
Moderately
6% from several respondents noted that while quoting continues
on the current business conditions and a projection of the upcoming months. The Winter 2011
0%
Up Same
to
Survey be strong,
resulted
Down
Purchase
a response rate of 37%Orders
from AMBAare slow
members. in coming,
Decrease remains
Business indicating
"Good"
for 56% of the respondents, and for 18% of the respondentsSubstantially
it is "Excellent."
that some of the uncertainty we keep hearing about among the
Current businessCurrent
conditions were “Good”
Work-Week Hours for 56%
Current Levelof of Business inOEM Current
Last community
Number
3 Months
AMBA Members
is playing
Plant
Current Business
Employees out in a Projection
reluctance to commit to
of Business Over the Next 3
respondents,
50
an uptick of three percentage points. That is up 50 new mold purchases.
Conditions One respondent said, “Customer
Months
futureIncrease
Excellent Substantially
56%
a full 21% over
70% the last three quarters of 2010 as the outlook commitments are at anGood all time high, Quotinghowever
42%
job releases are
Increase
40
40
continues to60%
move in the right direction. “Fair” business increasingly slow,” confirming some of the angst that still exists Moderately

11 Business Forecast Survey Results

Plant Employees

Fair
Remain the
conditions exist for 20% of the respondents compared to 27%30 in manufacturing. Shipments
Work Hours

Same
30 48
50% 48 Poor 6% 40%
of the respondents in the Fall survey.
as developed to provide AMBA members with information Those reporting “Poor” 20
18%
0%
6%
20%
Bad
1% 11%
Decrease
Moderately
20 40% Backlog
business conditions moved one percentage
projection of the upcoming months. The Winter 2011 point higher, to 22 Decrease
5 Substantially
from AMBA 6%.members.
For
10 the 30%
fourth consecutive
Business survey,
remains no one reported “Bad”10
"Good" Current Level of Business in Last 3 Months
Profits
business conditions.
of the respondents it is "Excellent."
20% 0
0 70% Quoting

Average Shop Employees

60% Average Design & Engineering Employees
Employment
10%Shop Hours
Average Average Design & Engineering Hours Shipments
50%

Projection
0% of Business Over the Next 3 40% Backlog

Up
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lent Substantially
42% Current Work-Week Hours 10%
IfCurrent
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50 Up Same Down
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Does your company have any apprentices? 40 Current Work-Week Hours Current Number Plant Employees
40 Remain the 80 50
Plant Employees

50
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Work Hours

70 30
6%
40
30 40%
48 41% 48
Plant Employees

Decrease Shipments are Up for just 33% of the respondents, compared to

Work Hours

30
1%
30 48
60 48
20 11% Moderately 20 48% in the previous quarter’s survey, but stayed the Same for
20 20

50 22 5 22 5
10 49% of respondents, compared to 37% in the Fall survey; and
Yes 10 10
10 Decrease 75
40
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0 0
Average Shop Employees Average Design & Engineering Employees
0 No 30 0
Fall survey. Average Shop Hours Average Design & Engineering Hours

vel of Business in Last 3 Months 20 Average Shop Employees Average Design & Engineering Employees
Average Shop Hours Average Design & Engineering Hours 2
10 If yes, how many?
Quoting
59% 0 Does your company have any apprentices?
Total Amount Average per respondent
4
80
Shipments
www.amba.org If yes, how
41%
many?
70
AMBA
60

Backlog Yes 50

40 75
Does your company have any apprentices? No 30
 6% 40%
18% Decrease
20%

Work Hours
30

Plant Employ
60% 0% 30 1% 48 11% 48
Bad Moderately
011 Business Forecast Survey Results 6% Shipments
50% 20 20
Decrease
was developed to40% provide AMBA members with information Backlog Substantially 10
Backlog is Up for just 33% of respondents compared to 41% of Another respondent
10 echoed that: “Having trouble finding a new
a projection of the upcoming months. The Winter 2011
the respondents
30% Current
in the Fall survey. Backlog is the Same for Level
49%, of Business in
apprentice.” Lastanother
Yet 3 Monthsrespondents noted that they have “one
% from AMBA members. Business remains "Good" 0 Profits 0
compared20%to 33% in the Fall survey; and Down for 33%, a big apprentice in the program, another getting ready to enter the Average Sho
% of the respondents it is "Excellent."
70% Average Shop Hours Average Design & Engineering Hours
Quoting
increase from the 26% of the Fall survey. These numbers would program,” while yet another respondent
Employment said they “hope to hire
10%
indicate that backlog is 60%
see-sawing a bit from quarter to quarter, apprentice(s) in 2011.” The total number of apprentices that
Shipments
again revealing
0% some of
Projection uncertainty
Business
50% in thethe
Over markets.
Next 3 Same respondents have is 75, with 41% saying they do currently have
Up Down
Months apprentices.
40% Increase Backlog
cellent Substantially Current Number Plant Employees
42% Current
30%
Work-Week Hours
50 Profits
od 50 Increase Does your company have any apprentices?
20% Moderately 80
40
ir 40 Employment 70

Plant Employees
10% Remain the 41%
Work Hours

30 Same 30 60
or 6% 0% 48 48
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20 1% 11% Yes
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22 5 40
10 Current Work-Week Hours 10 Current Number Plant Employees
Decrease No 30
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50 0
0 20

evel of Business in Average

Last 3 Months
Shop 40
Hours Average Design & Engineering Hours
Average Shop Employees
40 Average Design & Engineering Employees
10

Plant Employees
59% 0
Work Hours

30 30
48 Quoting 48 Tota
Profits in the Winter survey are Up for 24% of the respondents,
20 20
an uptick of two percentage points from the Fall survey, and Shop hours are up by one hour/week to 48 in the Winter 2011
Shipments If yes, survey.
how many? 22 5
showing some rebound 10 toward the 29% in the Summer survey (fourth quarter)
10 For design and engineering employees,
who reported profits had improved. Profits are the Same for 56%
Backlog hours are up by two to 48 in the Winter 2011 survey compared to
0 0
Does your down
of the respondents, company ninehave any apprentices?
percentage points from 65% in the Fall survey. The current number of employees remained at 22
80 Average Shop Employees Average Design & Engineering Employees
the Fall survey, but still up Average
from Shop
the 47%
Hours inAverage
the Summer
Profits survey Hours
Design & Engineering for shop employees and 5 for design and engineering employees,
that reports the Same. Profits are trending Down for 20% of the 70
41% the same as the Fall survey.
Employment from the60
respondents to the Winter 2011 survey, up considerably
13% of the respondents to the Fall survey. Yes 50

40 75 If yes, how many?

Same Down
No 30
Does
Current your company
Number have any apprentices?
Plant Employees 20
80 2
50
10
70
41%
40 59% 0
60
Total Amount Average per respondent
Plant Employees

30 Yes 50

40 75
20
No 30
22 5
10 20
2
0 10

Average Shop Employees 59% Design & Engineering Employees

Average 0
ering Hours
Total Amount Average per respondent

Employment levels are also confirming that responding Overall, optimism rules. Several respondents report that business
companies are much busier in the
If yes, howWinter
many?2011 quarter, with is “looking better.” One said, “Overall it’s better now than the
employment once again trending Up for 30% of respondents last 10 years. However it has a long way to go to be like it was
from 28% of the Fall survey respondents. Employment numbers prior to free trade with China. See how many apprentices want to
ces?
remained80the Same for 62% of the respondents. Employment is get into the trade.” o
Down for70only 8% of the respondents, compared to 7% of the
respondents
60
in the Fall survey. This continues on a significant
“positive” trend for the last three quarters.
Yes 50

40 75
However, several comments from respondents are revealing
No
that good30help is hard to find. “Hard to find qualified apprentice
prospects,”
20
said one respondent, adding, “They 2 need to be
engineering
10 minds that can/like to work with their hands and

these types0 aren’t around much in today’s electronic world with

Total Amount Average per respondent
college touted as the be all to end all.”

AMBA www.amba.org 5
Indiana High Schools Teach Molding/Moldmaking Skills
By: Clare Goldsberry
Five years ago, the citizens of Evansville, IN passed an initiative to
build a new vocational-technical center in that town, and bring all the
various classes throughout the area under one roof. The result was the
245,000-ft2 Southern Indiana Career & Technical Center (SICTC). Not
only did voters give the school the money for the building, they also
gave it a half-million dollars to buy equipment, an important factor in
training young people in today’s manufacturing skills.
  
James Stock is the plastics molding instructor at the SICTC, and
his equipment includes an all-electric 110-ton press and a hydraulic
225-tonner with a robotic arm, both from Milacron. Also purchased
from Milacron is a 2.5-inch extruder. The school chose Milacron
because the company is relatively close to the school—Milacron is
located near Cincinnati, OH—and the company made a commitment
to the school to help them out with maintenance, set-up, and needed
repairs, said Stock.
“
I’m trying to give these students
real-world work experience,
I’m trying to prepare them to do
maintenance work, machine set-up,
”
and experience with running molding
machines.
—James Stock
Plastics Molding Instructor at SICTC
   
“I’m trying to give these students real-world work experience,” said
Stock. “I’m trying to prepare them to do maintenance work, machine
set-up, and experience with running molding machines.” The two-year
program also provides classes in blueprint reading, and working with
lathes, surface grinders, and mills. The Plastics Molding Center also
has a testing laboratory with a color spectrometer, impact-, and tensile-
strength testers.
The program is for high school juniors and seniors, and consists of three
hours per day at the Technical Center performing hands-on work. Stock
said that this year he has a total of about 35 students, 20 seniors and 15
juniors.
Attracting students into the program isn’t always easy. “It’s hard to
explain to these kids the advantages of learning these skills, but once
they get here, they love it,” Stock explained.
  
Jobs await those students who complete the program. Stock said that
Wabash Plastics, a custom injection molder and moldmaker, with 50
presses ranging from 165-1000 tons, hires students from the Tech
Center. Berry Plastics, with headquarters in Evansville, also hires
students from the program, some of them while they are still in the
program. “Berry is getting ready to hire six or seven students currently,”
Stock said. “We have a good working relationship with all the plastics
industries here in the area.”
A few students decide to go on to college, and Stock noted that several
of his senior students are going to Vincennes University and Ball State
to pursue more advanced manufacturing degrees. “The state of Indiana
6 www.amba.org
says these are high-demand jobs and my students who want a job can
get a job,” said Stock.
James Niehaus is the precision machine technology instructor at the
SICTC. His program is also for high school juniors and seniors. “We
take new students and begin working on the fundamentals of machining
such as measuring—how to measure using equipment from rulers to
calipers, micrometers, indicators, CMMs, and optical comparators,”
said Niehaus. “We instill in them that the only way to know something
is right is to measure it. In the machining world you have to check
and see if what you do is right. At the same time they learn to run
machines—both manual and computer-assisted machines.”
   
Niehaus said the program offers a combination of many of the basic
machining techniques during the first semester such as running
machines, measuring, safety practices, and the fundamentals of
machining metals. Currently, Niehaus has 39 students divided in two
classes of three hours in the morning and three in the afternoon.
“As the program progresses, the projects get more difficult,” Niehaus
explained.  “We start with introductory projects, then get more advanced
until we go to a live project. Currently, my students are building an
injection mold to mold a coaster that Jim Stock will run in his class.”
Last year Niehaus’s class made a keychain mold with the school logo on
it. “We’ve built a mold for a small Frisbee and a coat hanger mold,” he
added. “We’re in the process of making a metal-stamping die for sheet
metal as well. By doing these various things in the trade the kids get
exposure to what they need in the real world.”
The Southern Indiana Career & Technical Center is fortunate. Unlike
a lot of tech centers who get stuck with older, outdated equipment,
the SICTC has “fairly new machinery” noted Niehaus. “That’s largely
because it’s a new school and when they built the building, they got
enough money to get the machinery we needed as well.”
Niehaus’ program currently has seven computer-controlled mills and
lathes, eight computer-assisted lathes, and roughly 20-25 more pieces
of machinery have digital readouts on them to help students understand
computer-aided and computer-controlled machining.
During the second semester of their senior year, the students can choose
to work rather than come to class, but they must work at least three
hours, five days a week. They get paid by their employers, and typically
that leads to full-time employment.
“We also work with Berry and Wabash and I’ve placed students with a
number of smaller companies in the area including smaller moldmakers
and machine shops,” said Niehaus. “I’ve placed kids in three-fourths of
the machine shops in the area in the 14 years I’ve been teaching.”
   
Shawn McGrew, owner of Prodigy Mold & Tool Inc. in Haubstadt,
IN, hired one of the students from the Tech Center. “He’s a real hands-
on guy and has become a key employee over the seven or eight years
he’s worked here,” said McGrew. “He had some natural talent and it
migrated into this field, and we’re fortunate to have him.”
McGrew and Niehaus used to work together at a mold shop, but
Niehaus felt the call to become a teacher. McGrew believes that it’s the
industry’s responsibility to help these teachers and the schools in their
effort to produce the next generation of skilled workers. “It’s good that
these technical schools are doing what they’re doing, but I think it’s
AMBA
 CRY-2883 Prelim1-1.fh11 1/15/07 3:33 PM Page 1
C M Y CM MY CY CMY K

time for shops like ours to step up and help these educational facilities
keep up to date with technology and keep teachers up to date, too, with
the changes in our industry,” said McGrew. 

“
There seems to be a dwindling
supply of young people and if I
don’t start recruiting new, young talent
so that my experienced guys can teach

”
the younger guys, we’re going to be out
of talent in another generation.
—Shawn McGrew
Owner, Prodigy Tool & Mold, Inc.

McGrew said that shops in the U.S. need to begin working with these
educational institutions and help recruit young kids through their
parents and school guidance counselors, many of who know very little
about the job opportunities available in manufacturing. “There seems
to be a dwindling supply of young people and if I don’t start recruiting
new, young talent so that my experienced guys can teach the younger
guys, we’re going to be out of talent in another generation,” McGrew
said. “I think it’s time we stop thinking that someone else will do this
for us, and make some sacrifices of our time and talents for the future of
our businesses. We need to try to educate these schools and do what we
can do to help grow these kids and expose them to our trade and at least
create the awareness of what moldmaking offers.”

“
We have to all make some kind
of an investment in our futures; Composite
we can’t rely on the other guy to do
it. If people see some finished pieces
of steel and some parts—they might
think twice about this as a career. It’s

”
important to me. It’s important to this
country.
—Shawn McGrew
Owner, Prodigy Tool & Mold, Inc.
   
McGrew will be attending an open house at the Southern Indiana Career
& Technical Center, and taking some of the apprenticeship brochures
that the American Mold Builders Assn. produces to teach the students
what’s current with respect to moldmaking. “We have to all make some
kind of an investment in our futures,” said McGrew, who will also be
showing a core and cavity half, and the part that it molds, so attendees
at the open house can better understand moldmaking.  “We can’t rely
on the other guy to do it. If people see some finished pieces of steel and
some parts—they might think twice about this as a career. It’s important JEM
to me. It’s important to this country. Manufacturing—our ability to
make things—is what made this country great. Even in the political ENTERPRISE, Inc.
arena they’re starting to realize what manufacturing contributes to this A Cut Above the Rest
country, to this economy.” o

This article first appeared in the December 15th, 2010 issue of

PlasticsToday.com.

AMBA www.amba.org 7
Conformal Cooling: Why Use It Now?
By: Siegfried Mayer, EOS GmbH
If you think you don’t have the budget or know-how for cost-reducing
conformal cooling, it’s time for an update on the technology.
Growing numbers of injection molders are discovering the advantages
of using conformal cooling channels that follow the shape of the cavity
and core, reach hot spots, and promote temperature uniformity in the
plastic materials being molded. These molders are seeing striking
results: shortened cycle times, improved plastic part quality, and—
above all—cost reductions.
Even so, many manufacturers, some of them with long experience in the
industry, still think conformal cooling is too difficult and too expensive.
They think these things because both used to be true.
The costly milling and welding
needed to create conformal
cooling channels with
conventional moldmaking
has led many molders and
moldmakers to avoid it.
Recent updates in conformal
cooling involving direct metal
laser sintering have made it
easier to improve part quality
with channels that follow the
curves of the part.
Up until four or five years ago, cooling channels for molds were
(and mostly still are) drilled in secondary machining operations,
and they followed straight lines. If more cooling was needed than a
simple channel could provide, toolmakers might create an insert that
had channels with baffles or helix baffles. In rare cases where more
intricate cooling channels were unavoidable, toolmakers split the mold
into segments, milled matching half-channels into the segments, and
soldered the segments together to produce channels that didn’t follow
straight lines. The milling was costly, and the mold life was shortened
because the solder often deteriorated over time.
But recently, new technology has made conformal cooling channels
both easy and affordable to produce. Direct metal laser sintering
(DMLS) can create parts with highly complex external and internal
geometries, “manufacturing” the cooling channels along with the
tooling inserts—in a single process.
A cool solution
DMLS is an additive manufacturing technology that produces parts
from 3D CAD models by melting metal powder with a focused laser
beam, layer by layer, in strata as thin as 40 µm. The first DMLS material
available to moldmakers was a bronze alloy ideal for molds and inserts
used in low- and medium-volume production runs. The addition of
EOS MaragingSteel MS1 (a prealloyed ultrahigh-strength steel in fine
8 www.amba.org
powder form) has made it possible to create tooling for high-volume
applications as well. Both these materials are readily machined to create
the desired mold surface.
Not only does DMLS eliminate the need for secondary drilling, but
it also can be used to make optimized cooling channels that closely
conform to the surface of the mold cavity, or that reach crucial hot
spots that conventional channels can’t. In addition, the channels can be
formed in shapes that add to the volume of coolant flow or that generate
turbulence to carry off more heat—making the channels far more
efficient and mold temperatures more uniform.
Still, some toolmakers and injection molding experts will hesitate to
adopt a new technology because they think they’re doing fine with the
old ones. They’re already making profits using proven methods; why
replace something they know so well with something they don’t?
There are several convincing reasons.
First off, laser-sintered conformal cooling doesn’t replace existing
processes; it complements them, allowing the processor to take on
production runs that would be too costly—or even impossible—to do
the traditional way. It opens up possibilities that can stretch design
creativity and bring in new business.
What’s more, conformal cooling is a proven technology. Over the
past few years, benchmarks of conformal cooling against traditional
processes have documented significant reductions in two of the most
important cost drivers of injection molding: cooling times and scrap
rates.
Cooler results
A striking example of success with conformal cooling comes from a
project undertaken by a major laser-sintering supplier in Germany. The
supplier created a tool insert that incorporated conformal channels to
boost coolant flow at hot spots in a mold for manufacturing low-volume
plastic parts (40,000/year). Here are the results of that project:
• The first savings was in the cost of the new insert: $4,853 vs. $26,806
for a traditional insert.
• Then there was the cycle time cut of 55%, from 90 to 40 seconds.
• Finally, the two cost reductions together resulted in an amortization
time for the insert of only two months.
The new insert, which carried off heat more uniformly and efficiently,
also decreased scrap and promoted better part quality.
Today, millions of injection molded plastic products are produced with
tool inserts manufactured with DMLS. Some of the inserts are in molds
that have already produced more than 10 million shots.
How to explore conformal cooling
So how do you determine whether conformal cooling is right for your
application? In general, molders who want to explore conformal cooling
are already encountering problems using traditional cooling channels:
• Often, they are modifying an existing plastic product and suddenly the
past process won’t work as well—for instance, the scrap rate is higher,
or design modification requires a completely new (and very expensive)
tooling insert, or there are new hot spots in the mold. This last challenge
can increase warpage (scrap) or lengthen cycle times; 80%-90% of
the plastic part may have cooled, but it sits in the mold waiting for the
AMBA

This insert for cooling the injection point of a mold for
sealing cap production was built in EOS MaragingSteel
MS1. The integrated cooling decreases cycle time
and increases product quality (fewer problems with
distortions). Above right is a CAD image of the pin.
remaining 10% to cool sufficiently in a critical area.
• On the other hand, molders may be looking at a proposed design that
they would like to manufacture using injection molding—but the shape
of the part, or the presence of excess heat in difficult-to-reach points in
the mold, make IM impractical with traditional cooling channels.
For many manufacturers, investigating conformal cooling is similar
to costing out any other process. First, they submit a CAD model or
physical sample to a toolmaking supplier with laser-sintering expertise,
or to a DMLS supplier, along with background information—what the
mold or insert is supposed to do, what coolant is used, what plastic
material is being molded, and the estimated production volume.
There is no need to share any proprietary information about current
manufacturing processes.
When considering paths for cooling channels based on the amount
and location of the heat that needs to be removed from the mold, it
is important to remember that there are almost no limits restricting
channel paths created with DMLS, meaning the mold can be created
with the most efficient cooling possible. During this step, it is important
to use digital simulation to confirm, before any physical prototyping,
that the coolant is removing enough heat and that there are no problems
with the design. For instance, the simulation can establish that the
pressure and flow are the same in two diverging channels, and that both
will remove the same amount of heat. It can also provide an estimate of
cycle time.
Fortunately, the physics of heat transfer and fluid flow for conformal
channels are no different from straight channels. It is fairly easy to
establish what the cooling rate will be across a mold. In the instance
of channels with geometrically complex features—for instance, an
elliptical cross section instead of a circle, or internal ribs that raise
the Reynolds number and create turbulence—a simpler simulation
of channels with circular cross sections will prove out a design, and
modeling laminar flow with no turbulence gives an accurate enough
measure of coolant flow and heat transfer.
 
This way of simulating gives reassuringly conservative figures—a kind
of design safety margin. Often the physical channels prove to be even
more efficient than the simulation shows. If the analysis suggests that
conformal cooling will reduce the expected cycle time in a traditional
mold by 30% or more, then clearly it is a worthwhile option to consider.
All that remains is to manufacture and test a physical prototype. At
this stage, some manufacturers elect to outsource the entire plastics
manufacturing process to an experienced supplier for the initial
Page 10 a

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10
` Page 9
production cycle. Others purchase the mold from a tooling supplier and
do the part manufacturing themselves. A few (more than 20 companies
with tooling expertise so far) purchase a DMLS system themselves and
make it part of their standard production technology. This is the option
that provides the biggest competitive advantage, the greatest freedom to
innovate, and the largest business rewards.
The bottom line
What cost benefits should you expect from using conformal cooling?
That depends to some degree on your production levels. In general,
low-volume manufacturers get their greatest savings from the reduced
tooling costs of DMLS. Midrange volumes—say, up to a million parts—
incur savings from shortened cycle times that increase productivity.
High-end producers of plastic parts (in the millions) also reap the
rewards of faster cooling times, of course, but at these quantities, the
elimination of scrap caused by uneven temperature distribution becomes
an important source of savings as well.
Familiarity with conformal cooling leads to other benefits as well.
Companies using DMLS are able to take on molding jobs their
competition can’t touch. Production standards for quality and waste
elimination can be much higher. Designers, freed from cooling
constraints and thinking in terms of design-driven manufacturing rather
than manufacturing-driven design, are able to create free-form shapes
that would have previously been prohibitive for injection molding.
Of course, there are a great many other factors that will still affect
processing time and quality. Clean, filtered coolant liquid is always
desirable. Shorter cooling times won’t change your material insertion
and part extraction times. And plastic part quality is dependent on a
great many peripheral factors: heaters, sprue and nozzle diameters, and
so forth.
But if cooling times are creating a production bottleneck, or uneven
cooling is affecting part quality, optimized conformal cooling channels
built with DMLS can save you plenty. o
This atricle originally appeared in the December 2009 issue of
“Injection Molding Magazine” and also the December 9th edition
of Plasticstoday.com. Siegfried Mayer is application engineer and
Augustin Niavas is business development manager tooling for laser
sintering systems manufacturer EOS GmbH (Munich, Germany).
AMBA Member Benefit:
Annual Wage & Benefits Survey -  provides a 35-page analysis
of employee wage and employee benefits information for
the mold & die cast industry, broken down by geographic
location. This information is not available anywhere else, and is
consistently ranked by members as one of the top five member
benefits.
Another AMBA Member Benefit:
Annual Membership Directory– Listing of AMBA members
and their specialties/markets, with circulation to OEMs through
direct mail and AMBA participation in trade shows.
www.amba.org AMBA
Justifying a Mold Rebuild Utilizing Collapsible Core Technology
By: David Helenius, Roehr Tool Corporation
Advancements in technology are most often the basis for revisiting a
mold’s design and operation. Though rebuilding perfectly good molds
goes against the normal objective of building them to last and run
forever, tooling engineers and designers are widening their horizons to
include options for not building the ‘same old same mold’.
For several reasons, collapsible cores have become a part of that
widened horizon. Though available on the market for over 35 years,
they are, to some, new technology. For others, rack and gear unscrewing
systems, for all their complexity and high maintenance, are still too
embedded in the mindset for molding threaded parts. Despite this,
collapsible core technology is seeing a resurgence of interest today.
Building a case for C-Cores
There are two types of collapsible cores on the market. One is the
original Spring/Flexing Steel type, which was first developed in 1968.
Constructed of two main pieces, this collapsible core is made up of a
one-piece, 12-segmented collapsible core body and a center pin. These
cores are actuated by the mold ejector plates and provide complete
collapse with every cycle.
The second type of collapsible core is more mechanical in nature and is
called the Dove Tail collapsible core. It was developed and introduced
to the market in 2009. Typically, this style has six segments and offers
variable collapse, split plate actuation and simplified sequencing.
As shown in the diagram, collapsible core technology offers
several sequencing options.
Collapsible cores take the complex actions away from the mold base
and contain them within each core, making the mold build more
straightforward. They also allow for a more balanced, square layout
which results in a more balanced runner system. As a result, the
collapsible core mold is easier to handle and can be installed in the press
in one piece and in most cases can even utilize a smaller press.
Collapsible core technology offers many sequencing options and if
designed correctly, a mold may be run with only machine “open &
close”. One can also sequence the mold using hydraulic cylinders for
part ejection or the machine knock-out for core collapse and ejection.
From a maintenance standpoint, there are fewer components to deal
with when utilizing collapsible cores. Oil leaks have been all but
eliminated because there are no gears or racks, there are fewer wear
contact areas within the core itself (no spinning, no unscrewing, no
bearings), and, unique to the Dove Tail style, maintenance techs can pull
and service each individual core while it is in the press, clean it, and
reinstall it, resulting in less overall downtime.
AMBA www.amba.org
Better part quality, faster cycles
Collapsible cores often produce better quality parts compared to those
molded using rack and gear systems. There are fewer rejects, more
consistent parts and less contamination to deal with because there is
minimal and, in some cases, no lubrication required.
Cycle time savings is a notable advantage with collapsible core usage.
Since there are no racks and gears, there is no waiting for the molded
part to unscrew from the core prior to ejection. This is especially
beneficial if molding high pitch, high revolution caps. One can also
eject a warmer part because the plastic does not have to set up as long
to overcome the torque required to unscrew the cap from the core.
In addition, one can start the collapse at mold open, allowing faster
ejection. More parts per hour equates to a quicker return on one’s
investment.
A real-world example of a mold rebuild project comes from Mold-
Rite Plastics in New York. They were running a 12-cavity buttress cap
mold for more than 20 years. The tool had become a costly burden to
maintain and inefficient to run. Mold-Rite was familiar with C-Cores
and when the Dove Tail core was introduced, the decision was made
to rebuild the mold and incorporate the new style cores. Not only was
the maintenance time and cost significantly reduced, Mold-Rite saw
dramatic results on its production numbers:
• Original mold: 12 cavity, 24.5-second cycle, 1,763 pcs/hr.
• New DT Core mold: 12 cavity, 14-second cycle, 3,085 pcs/hr
In addition to a gain of 75 percent more parts per hour, Mold-Rite also
reported a first year savings of $40,000.
Retrofit option
Many times an older, high production mold is still churning out needed
parts but has become tired and problematic, requiring costly downtime
and maintenance, especially where worn cores are concerned. If the
cavity half and hot runner are still in good condition, the option is there
to retrofit an entirely new core half to the original cavity half, giving
new life to that old mold.
Collapsible cores like the Dove Tail style (top) and the flexing steel,
or spring, style are offering tooling engineers new, cost-saving
options for molding threaded parts.
For example, one molder in Canada had an old and large 32-cavity
unscrewing cap mold. Because of the size of the mold and the external
hardware required for the unscrewing action, this mold had to be set
into the machine in several pieces. The company decided to go with
Page 12 a
11
` Page 11
the retrofit option using collapsible cores. By eliminating the external
unscrewing hardware in favor of the Dove Tail cores, this company
reaped notable results:
• Ability to hang the mold into the machine in one piece,
dramatically reducing set-up times.
• Reduced cycle time from 18.5 seconds down to 11 seconds – a 68
percent gain in mold production.
Photo courtesy of Mold-Rite Plastics
Doing the math to compare new technology, like these Dove
Tail collapsible cores, with traditional unscrewing methods
has helped tooling engineers justify replacing or rebuilding
old, inefficient, long-running molds.
The technical advantages discussed here prove there is ample reason
to explore rebuilding – or perhaps retrofitting – traditional unscrewing
tools. However, for those needing further justification from a financial
standpoint, there is a tool available at www.procomps.com/math
where project-specific data can be input to create an objective and
straightforward comparison between collapsible cores and unscrewing
or jump-thread applications.
Regardless of which option is ultimately chosen to mold threaded parts,
doing the math to ascertain the best overall return on investment can
mean the difference between increasing one’s competitiveness and
merely maintaining the status quo.
The AMBA hosted a webinar on this topic called, “Justifying Mold
Rebuilds using Collapsing Core Technology.” For a complimentary
copy of that webinar archive please contact Sue Daniels at sdaniels@
amba.org, or by phone at 847.222.9402. o
Dave Helenius is Engineer Manager for Roehr Tool Corporation, a
global supplier of patented Collapsible Core, Minicore and Expandable
Cavity technology for molding threaded parts or parts with undercuts,
protrusions or cut-outs.
Reprinted by permission of MoldMaking Technology magazine,
copyright 2010, Gardner Publications, Inc, USA.
12 www.amba.org
AMBA Answers
The AMBA Answers Moldmakers Forum allows
members to quickly ask and answer questions and
comments on business and industry-related issues. Post
your questions, or post your answers on any
business, shop-related, industry-related topic and get
knowledgeable, helpful advice and answers from your fellow AMBA
members.
Get answers from moldmaking industry business leaders, owners and
managers.
Q: What vertical CNC machine are you using to cut electrodes? How
long have you been using it and how satisfied are you? What is max
rpm? Is the dust collection sufficent?  
A: We have used Bostonmatic, Mikron and Makino. All good. Only the
Makino has an independant vacuum system (factory Makino) the others
have central system. All have 20 to 30k spindles which fits our needs.
A. We use Makino SNC 64 graphite machines with 30K spindles.  We
have a central dust collection unit to service five machines. We have
been very satisfied with these for graphite electrodes.
Q: Can anyone recommend a grinding wheel, coolant and or
technique that works well when grinding hardened 440C? My guys
get frustrated as all heck when they grind it!
A: Norton SG seeded gel(ceramic) wheel works very well, but hard on
diamonds. Second choice is Silicon Carbide, this is what we use the
most. o
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shops. First rule for inventors - have money! Second rule - never
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AMBA
Considerations for Effective Risk Management
By: Dan Brown, President of DB Performance Solutions
Why risk matters
In business, “RISK” is a scary word. We have risks if we move forward
and risks if we remain still. No matter what industry you are in, you
are guaranteed to run into risks. As a business leader, how do you
know when to take a risk and when not to take a risk? The answer is
pretty straight forward – analyze and then manage your risks- which is
certainly easier said than done!
Fortunately, there are a multitude of tools to help businesses manage
their risks. For some industries, having a formal risk management
program is a requirement and the guidelines are dictated. For others, the
answer is not as easy and it is up to management to define the process.
To guide program implementation, the International Organization for
Standardization (ISO) published ISO 31000:2009: “Risk management
- Guidelines on principles and implementation of risk management.”
This document provides general guidelines on risk management that can
be used across most industries. ISO 31000:2009 includes very effective
guidance, including making sure the outputs of your risk management
system:
• Create value – Risk management must be a “value adding” not
“value reducing” activity.
• Be an integral part of organizational processes – Not an
afterthought, but designed into how the business is conducted.
• Be part of decision making – You must make decisions based upon
facts not assumptions.
• Explicitly address uncertainty – No risk is known in full before
something happens - state the “knowns” and “unknowns” in your
risk analysis.
• Be systematic and structured – You need a structured approach to
ensure it is consistently applied.
• Be based on the best available information – Remember, you must
make decisions based upon facts not assumptions.
• Be tailored – Your risk is unique to your products and your
operations. An off-the-shelf fix will not be effective.
• Take into account human factors – We are not machines. Human
factors can dramatically increase or decrease risk.
• Be transparent and inclusive – Everyone must understand the risk
management process and see how it is applied and utilized. If it
is kept in a confidential folder in the CEO’s office, it will lose all
credibility.
• Be dynamic, iterative and responsive to change – Risk
management is a living process. As our companies, products, and
processes change – so do our risks.
• Be capable of continual improvement and enhancement – Your first
pass through the process will not be perfect. You will get better at it
the more you do it. Don’t wait for perfection to begin the process.
It is important to note that a formal risk management program includes
more than conducting a one-time Failure Mode and Effects Analysis
(FMEA) that is only pulled out during periodic audits. An FMEA is
important, but it barely meets the requirements of a formal program and
it clearly misses the mark on intent. An FMEA only serves to identify
risks. It does not manage them. It also fails to identify risks beyond the
FMEA scope of Design or Processes. Companies must also ensure that
the scoring criteria are relevant to their operation and understood by the
individuals preparing and using the FMEAs. As a snapshot in time, it
may not cover changes that occurred since it was prepared.
So the important question becomes, “What is the best tool to use?” The
answer is “it depends” on the type of risk you are looking to identify
AMBA www.amba.org
and mitigate. Essentially, every risk management program includes
defined processes to IDENTIFY risks, PRIORITIZE them, apply
appropriate resources to REDUCE or ELIMINATE the high priority
risks, and then provide FEEDBACK into the identification process
to improve the next cycle. Yes, cycle since this process, like most, is
unfortunately never ending.
Risk identification…getting started
The first step in building a robust risk management program is to
understand if your process(es) for risk identification include all sources
of risk. Things to consider when identifying risks include:
• Your supply and delivery chain;
• Your computer and communications systems;
• Your employees, equipment, processes and capabilities;
• Product design and/or mechanisms for understanding customer
expectations;
• Power outages or facility shut-downs;
• Natural disasters, such as earthquakes, fires, floods, tornadoes,
hurricanes and blizzards;
• Your key markets, innovation stream, and competitors; and
• Effective succession strategies
All of these have different risks that create different problems. Proper
risk identification looks at all of the concerns. Are you a component
supplier? If so, have your customers properly defined and provided
you with all of their requirements? Are you sure about that? Are you
the design-owner subcontracting components? If so, can your chosen
supplier meet all of the requirements you have specified? Do you
understand their processing well enough to know what questions to ask
them?
If you have a high level flowchart of your operation, you already have
a very useful tool for risk identification. If you do not have this, now is
the time to create one! For every box on your flowchart, ask your team,
“What can go wrong here?” “How will we know if it does?” “What do
we do if it happens?” Identify the answers to these questions in the right
margin of your flowchart and you have a ready-made risk management
tool at your disposal. You must review it often to ensure it remains
current.
Other risk identification tools include: FMEA, HACCP (Hazard
Analysis and Critical Control Points – discussed further below), Cause-
Effect Diagram, Five Whys, Preliminary Hazard Analysis, and Fault
Tree Analysis. Identifying your risks is the easy part. The hard part is
figuring out what you are going to do about them, and that is the most
important part of a Risk Management program.
Prioritization of risks
How do you know how much risk management is enough? Knowing
how much is enough begins with understanding not all risk is created
equal. Some risks are acceptable, some risks are not. You must rank and
prioritize your risk mitigation activities. Decide for your company how
much of an investment you will make in risk management. Too little
and you will end up on the wrong side of a product liability lawsuit.
Too much and you will go bankrupt and produce nothing. As a business
leader, it is your obligation and liability to draw those lines.
The food industry has a highly effective risk management strategy
called “HACCP” or “Hazard Analysis and Critical Control Points.”
The key word here is “critical” control points. You can control each and
Page 15 a
13
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` Page 13
every step and each and every part, but to do so is so costly in resources
and is wholly impractical. Products today are no longer handmade
by skilled craftsmen who labor over each step knowing lives are on
the line with the results of their work. Products are mass produced
by individuals who rarely see the whole picture and understand
the complete process. Therefore we need teams of individuals who
collectively possess that “big picture” perspective.
So where does this leave you today? You must look at all of the
processes and determine the last point at which no further control can
impact a feature, attribute or risk potential. That step becomes the
“critical control point” and is where you must have a strategy to ensure
the potential risk is either eliminated (if possible) or at least mitigated.
Even if you are not in the food industry, this concept can (and should)
be a key component of your risk management processes.
Another model is the one used by ISO to determine the changes made
to the ISO 9001 standard in 2009. This simple matrix compared the
beneficial impact of the change to the resources required to implement
the change – an Impacts/Benefits Matrix. Horizontally, it determined if
the change had a “High,” “Medium” or “Low” benefit to the company.
Vertically, it determined if the change required a “High,” “Medium” or
“Low” amount of resources and effort to effectively implement. Where
benefit is low and cost is high – do not do it. Where benefit is high and
cost is low – definitely do it. In between is where the harder decisions
must be made. This is where having facts and clearly established
decision criteria will make your job easier.
A twist on this same tool has Severity of Impact on one axis and
Potential for Occurrence on the other. You determine the ratings
to apply in identifying the relative risks of potential events. Pareto
Analysis is another common prioritization tool.
There are plenty of resources who will offer good advice, but no one
outside of your organization can really tell you what you must do to
manage your risks. Keep in mind that for every risk, there is a means to
mitigate it if it is cost effective to do so.
Legal & ethical considerations
No discussion of risk management is complete without a consideration
of legal and ethical concerns. Risk management is your best proactive
shield from lawsuits. While events will occur, what you do today before
a problem occurs will dramatically influence how you are perceived
when the day of a liability trial occurs. If you have been open and
honest about trying to identify and control risks whenever encountered,
you have a record of “due-diligence.” This will greatly reduce any
award a lawyer could obtain for their client.
Preventive action & risk analysis
Nearly every company struggles with risk management. Struggling is
okay, but ignoring it is not okay. Every risk management action is true
Preventive Action! You will only get better the more often you do it.
Remember, the goal is to add value, not cost! In the end, effective risk
management will save you money. Your corporate liability insurance
costs may be reduced, your failure rates can be reduced and your
customer satisfaction (and retention) should improve. Remember these
are all preventive actions – fixing problems before they arise, which is
always cheaper than fixing them after costly mistakes. o
For more information, contact Dan Brown at dan.brown@
eagleregistrations.com or EAGLE Registrations at 800.795.3641
or www.eagleregistrations.com. Mr. Brown is also president of DB
Performance Solutions, LLC a management systems consulting
company based in the Chicago Suburbs.
OVER

Risk mitigation US
A 75S
YE
ma
de
AR
This is the hardest step to perform and the most difficult to provide
general advice. The reason is simple: risk is not a “cookie cutter”
Micro Welder
concern. No two risks are the same and no single tool is best to fix all
risk. Common tools include: Strategic Planning (Management); Control
Do you have an easy-to-use
Plans; Team Based Problem Solving (8-D); Poke-Yoke (Error-Proofing); portable solution for your
Training and Employee Awareness; Guarding/E-stops/Safety Seals; On
Site Supplier Audits; Design for Reliability; Design for Maintainability; MOLD & DIE REPAIR?
Design for Manufacturability Parting Lines
Corners / Edges
Additional risk management activities can include: redundant Scratches / Dents
facilities in different areas of the country, alternate suppliers, validated
production processes,, increasing inspection and testing, feasibility “Effective in repairing
areas where tig welding
studies, design of experiments, statistical process controls, process would have destroyed
capability studies, six sigma, lean manufacturing, preventive edges and surfaces”
maintenance, predictive maintenance, off-site data storage, paper and
electronic documents, security protocols, liability insurance, workman’s “One of the best investments
compensation insurance, fire and flood insurance. we have ever made”

Feedback mechanisms “Saved us thousands in

Again, no management activity is effective without a feedback labor and materials”
mechanism. Internal corrective actions, rework, warranty claims,
customer complaints, internal and external audits, and management
reviews all provide useful feedback tools to ensure that your risk
management process is effectively meeting your needs. An excellent Contact Us to learn how to permanently repair ferrous
activity is changing the focus of your “Management Review” meetings metals with metallic ribbon, wire, paste or powder.
to a “Risk Management Review” meeting. Use all of the same inputs,
800-255-6046
but view the data through a “risk” lens and use that to assess where you
712-255-6046
will allocate resources for the greatest impact to your company.
rocklinmanufacturingco.com

AMBA www.amba.org 15
 AMBA News
AMBA Sets
New Direction
Executive leaders of the American Mold
Builders Association (AMBA) have set a new
direction for the 35-year-old entity - a direction
that involves the addition of new programs
designed to reduce member costs and increase
resources to help members grow their business through leading-edge
benchmarking information and new networking services.
“This is a very exciting day for our association,” stated Mike Armbrust,
president of AMBA and vice president of Mako Mold Corp., a
moldmaking company specializing in close tolerance, insert and hot
runner molds. “The Board of Directors has made a significant decision
to utilize the services of First Resource, Inc., a management company
that specializes in providing unique services and programs to U.S.-
based manufacturing associations.” As AMBA’s leadership team worked
through months of planning with consulting organization Harbour
Results, Inc., it felt it necessary to utilize the resources of a solid
management company with an outstanding track record of providing
value-added services to its association-based customers.
First Resource has assigned Managing Director Kym Conis to drive
the organizational change-plan that was identified during the strategic
planning process. “Our leadership team has spent countless hours over
the last five months seeking to better understand areas for improvement
and working to create a systematic work plan to accomplish immediate
objectives for the association,” Armbrust continued. Conis brings
nearly 18 years of association management experience to the AMBA,
a significant event management background and solid expertise in
marketing.
Executives of AMBA’s Member companies will learn about new programs
and services available to them during the AMBA Annual Convention in
Las Vegas, March 2 – 6, 2011. In addition to significant professional
development and networking opportunities, the convention’s strategically
redesigned format will offer value-added presentations from industry
leaders focused on profitability, the latest mold building technologies and
best practices in the marketplace. The AMBA is the only industry trade
association dedicated solely to the mold manufacturing business in the
United States.
New Online Seminar -
Quality System Registration
February 23, 2011, 12 Noon CT
Members - $25, Non Members - $50
Many of your customers and competitors are ISO registered and you
are now faced with making this decision for your company. In a tight
economy, why would you invest significant resources to putting in
a bureaucratic boondoggle? After all, you know underperforming
companies who are certified and outstanding companies who are not
certified, so what’s the big deal?   Visit the AMBA event calendar at www.amba.org/Event_Calendar.php,
This hour-long webinar will present the pro’s and con’s of ISO quality
system registration and dispel many myths so that you have the facts
you need for effective decision making. Respond by January 30 with
your questions and have the answers built into the presentation! Dan
16 www.amba.org
Brown is president of DB Performance Solutions, LLC (a quality
management consulting company) and is the ISO 13485 registration
services manager and lead auditor for Eagle Registrations Inc. He will
help you answer these questions: 
 
• What is quality certification? 
• Why do you want to do it? 
• What does the process look like? 
• What types of certification are out there? 
• How do you maintain your certification? 
• What ISO is, and is not. 
Visit the AMBA event calendar at www.amba.org/Event_Calendar.php,
or call 847.222.9402 for more information.
New Online Seminar - IML / IMD
Doing More in a Mold Than Just
Molding Parts
March 23, 2011, 12 Noon CT
Members - $25, Non Members - $50
In-mold labeling and in-mold decorating have been big in Europe for
years, and they’re now catching on quickly in North America. If you
want to help your customers differentiate their products, reduce the
costs of secondary operations, and provide real value to customers
across markets, then you need to learn about IML / IMD.
In-mold labeling (IML) is a pre-decorating technique used worldwide
for injection molded containers or other plastic objects. In the IML
process, a label is placed into the mold prior to injection. In-mold-
labeled food, consumer and industrial product containers have seen a
large growth in North America over the last five years. IMD of non-
packaging plastic products has become a popular method of product
enhancement that is replacing self-adhesive, heat transfer and pad
printed decoration in many industries.
 
The IML process offers the following advantages over other decorating
techniques: improved print quality, visual advantage, reduced part
costs, increased image durability, secondary operations elimination and
increased design options.
Taras Konowal, managing partner of Fame Technology Solutions, LLC
(South Elgin, IL) will teach you about:
• Mold requirements for successful IML applications
• Label handling and positioning for IML applications
• Markets and examples of where IML is being used today and
future applications
• The impact of IML on cycle times
Learn what mold manufacturers need to know when building a mold for
an IML/IMD molding cell. How can you integrate the supply chain to
develop a turn-key cell?
or call 847.222.9402 for more information or to register.
AMBA
Still Time to Register
2011 AMBA Annual Convention
March 2-6, 2011
The American Mold Builders Association is off to the races!! Mold
manufacturers across the USA, will attend the AMBA Annual
Convention, March 2-6 at the Red Rock Resort and Spa in Las Vegas,
Nevada. They will “Accelerate Their Profitability,” Speed up their high-
speed machine tool technology and learn Winning business practices!
The AMBA Annual Convention has a long history of being a great event
where the focus is on you – the American Mold Manufacturer and your
business! Getting together with your peers to network, have fun and
learn new ways to help succeed in your business.
Attendees receive valuable business tips, learn about cutting-
edge technology and best practices from peers, and a variety of
experts. Successful manufacturers will discuss the solutions they’ve
implemented to be successful. Visit www.amba.org for more
information.
Who are the AMBA
Mold Builder of the
Year and AMBA
Chapter of the Year?
All nominations have been received for
the AMBA Mold Builder of the Year, and
AMBA Chapter of the Year and the judging
has been completed. Attend the 2011 AMBA
National Convention, where the award
recipients will be announced during the
annual meeting on March 4.
In keeping with a tradition of support
for manufacturing education programs,
Progressive Components, a global
manufacturer and supplier of mold
components, is sponsoring $10,000 in
scholarships for the winners of the Mold
Builder of the Year and AMBA Chapter of
the Year.
Each will receive a $5,000 scholarship
to be donated to the school of their
choice.
The Mold Builder of the Year award
and the Chapter of the Year award have
become popular events and honor
outstanding members and chapters
for their contributions to the industry,
and their involvement with U.S. mold
manufacturing.
AMBA www.amba.org
AMBA Answers:
Moldmakers Online Q&A Forum
ATTENTION AMBA MEMBERS!  Get online and go to “My AMBA”
to view the new & improved Moldmakers Q&A Forum. This is a
Message Board for Members ONLY to post questions and ask for
advice from your fellow AMBA members.
 
Get references on suppliers for the products and services you need in
your business.  MY AMBA is just for YOU! Visit the site often and join
in the Forum, a valuable tool for you to use in your business. o
Go to www.amba.org, Login under MY AMBA to visit the new &
improved AMBA Answers: Moldmakers Q&A Forum.
Write a Letter to Your Elected
Officials Easily!
Identify and contact your elected government officials
via email at www.congress.org
This (free public service) website is a “one-stop-shop” where
you can identify your Congressional representatives; research
Congressional voting records; learn about the issues of the day;
and send e-mail directly to Congress. Constituents can even opt to
have their e-mail message hand-delivered to their Representative
or Senator’s office on Capitol Hill - all without ever leaving their
computer. Constituents can also use Congress.org to contact
their state and local elected officials, contact the White House,
and locate media outlets and contacts in their city and around the
nation. Congress.org also contains action alerts from many different
advocacy groups in Issues & Action, a listing of current legislation
and votes, and tips on writing or calling your representatives.
What makes Congress.org unique?
In addition to being the resource for Congressional content and
contacting elected officials, Congress.org is the only site that
publicly posts e-mails to congressional representatives from
constituents, and gives them the option to have their messages
hand-delivered to Congress. Other unique features include the new
local officials guide, as well as the capability to inform voters on up-
to-the minute votes and legislation.
How do I locate my elected officials?
Simply enter your ZIP code on the home page and click “Go” and
easily locate national, state, and local elected officials. If you are
unsure of your ZIP code, just enter your address and the system
will automatically look it up for you.
How can I be sure e-mail sent through Congress.org
will reach my member of Congress?
CapWiz, which powers Congress.org, sends “C-Mail” to Congress.
C-Mail is electronic mail that is created and generated for easy
recognition and response by Congressional members and their
staff. It is formatted in accordance with the requirements of
Congressional offices and is accepted by Members of Congress
because every C-Mail includes the full name and postal address
of a bona fide constituent from their district or state, and ensures
conformity with the specific technical needs of each Congressional
office. C-Mail is the most effective way for constituents to reach
their elected leaders online and break through the clutter.
17
Additive Manufacturing Technology – DMLS – Used to Increase
Tool Efficiency
By: Tim Ruffner, GPI Prototype & Manufacturing Services
Direct Metal Laser Sintering technology produces solid metal parts by
locally melting metal powder with a focused laser beam layer by layer.
Building layer by layer allows for the manufacture of highly complex
geometries directly from 3D CAD data. This is especially true for part
geometries where slides, inserts or other tool components with complex
characteristics are required.
long and lean cores, areas around hot-runners or small sliders). Using
special copper heat conductors or other complex measures becomes
obsolete.
• If necessary, it is possible to undercool mold cavities, thus reaching
optimal cycle times by minimizing cool down times in tooling cavities.
• An evened out temperature level can help to improve tool life time.
This is especially relevant in die casting tools that are exposed to
extreme temperature variations.

Tooling is a primary application for DMLS, allowing the manufacture Conventional cooling has the following drawbacks:
of tooling inserts and components in a timely manner. On top of the The distance from cavity to cooling channel differs as only straight line
value of short turn-around times, additional value was created by the drilling channels are possible (Figure 2) and as a consequence the heat
unique geometric freedom of design: “Advanced Tooling”. One of the dissipation cannot take place uniformly in the material. This results in:
relevant “Advanced Tooling” applications is the integration of conformal • Uneven temperature levels on the cavity surface.
cooling channels. This helps to improve both the quality and economics • Uneven cooling-down processes resulting in internal stresses that
of injection molded parts by reducing cycle time and scrap, increasing negatively impact part quality (warpage).
productivity by 30%-60%. DMLS tools are used to produce millions of • Actively influencing cooling-down processes inside the melt can often
parts in injection molding operations or many thousand metal parts in die not be achieved.
casting. DMLS opens new frontiers for the implementation of efficient
tooling by offering extended design possibilities for the manufacture Case studies
of high perfor­mance tools – all without having to consider the many
limitations characterize conventional processes. The challenge for
integrating a system of this kind is to find the optimal design for the
channels. Complexity of the channel design does not impact the tool
manufacturing process, as the DMLS system builds channels directly
into the tool. The advantages of these systems maintain a wide range of
benefits for injection molding production.

Increasing tool efficiency

Conformal cooling with DMLS helps achieve a number of
improvements and advantages:
Fig. 1
In terms of tool geometry: Figure 1 - Conformal Cooling Tool Insert
• Routing options for cooling channels are almost infinite. This makes it DMLS Tool Production: 34 Hours
possible to create an ideal cooling channel with a well defined distance
Total DMLS Production Cost Qty 2: $2027
to the cavity. A conventional drilled cooling mechanism cannot achieve
Total Shots: N/A
this.
• Cooling channel cross sections can take almost any shape (e. g. Productivity Increase: 62% cycle reduction on first sample run.
oval vs. round). Turbulence of the coolant within the system can thus Time to Deliver: 5 DAYS
be controlled by actively choosing different cross sections and by
switching between different cross sections. As a result, turbulence inside
of the coolant is generated, close to cavity along the entire channel path.
• Changing cross sections or forking the cooling channel can be done
easily without splitting up the form. This allows for additional heat/
cooling advantages in areas that cannot be reached by conventional
methods.

In terms of quality in the process of injection molding:

• A more effective mold temperature control system saves time and
production costs.
• The quality of injection molded parts is improved by better control of
the injection molding process. Warping and sink marks are minimized Fig. 2
by evenly cooling injected plastics, thus minimizing internal stress.
• Scrap rates are reduced or eliminated. Avoiding internal stresses helps Figure 2 - Catheter Prototype Tool –
to produce better parts with the same amount of required material. DMLS Tool Production: 39 Hours
Certain geometries can only achieve required quality standards with Total DMLS Production Cost: $3300
conformal cooling. Alternative Production Cost: N/A
• Combined systems with separate cooling and heating channels are also Total Shots: 190,000 + (Still running)
possible. The split between main systems for the control of the global Productivity Increase: 48% cycle reduction
temperature, and specific systems for the handling of close to cavity Time to Deliver: 6 DAYS o
critical temperatures, can be performed with DMLS.
In terms of process costs For more information contact GPI Prototype & Manufacturing
• Heating/cooling at critical parts inside the tool, which cannot – or only Services, Inc., www.gpiprototype.com or by phone at 847.615.8900.
hardly - be reached by conventional methods, becomes feasible (e. g.

18 www.amba.org AMBA
Member News
Electroform Adds New Injection Molding Press
Electroform Company Inc. (Rockford, Illinois), a manufacturer of
injection molds and molding systems, has added an Arburg 55-ton
2-shot injection molding machine to its sampling and R&D facility.
“We’re right-sizing our presses to the type of work we’re doing and
what our customers’ requirements are,” says Wade Clark, president
of Electroform (www.injectionmoldmaking.com). The new press is
for developmental programs for multi-shot, decorating, assembling
technology for Electroform’s customers.
Electroform had eight presses in its R&D facility, but two of those –
both 2-shot machines – had injection units to large for their applications.
Electroform sold those to a customer that purchased the presses with the
molds for a turnkey manufacturing cell that Electroform is designing
and building. “We’re also providing the training to this customer for
multi-shot molding processing,” Clark explains.
Clark says that the molding manufacturing cells that Electroform
provides include vision robotics, inspection systems, automated
assembly and testing, in addition to the mold. With the addition of the
Arburg, Electroform will have a total of seven presses ranging from
40-300 tons clamping force, for mold sampling and qualification.
“We’re looking to purchase a larger tonnage machine for the large high-
cavitation closure and stack molds that we manufacture,” he adds.
Clark notes that when mold manufacturers put in presses and begin
sampling and qualifying molds, the expectations from the OEM
customers are much greater. “It used to be that the molder had the
responsibility of solving the production processing issues, but now
we assist in all of that,” says Clark. “But the benefit is that our OEM
customers get a production ready mold when it gets to the molder.”
Electroform built a separate building for its mold sampling and
R&D in 2006, and currently the company is designing molding and
manufacturing cells for both U.S. and foreign companies.
Matrix Tooling Expands Molding Range and Capacity with
Two New Presses
Matrix Tooling, Inc. & Matrix Plastic Products (Wood Dale, Illinois)
has taken another step in broadening its precision injection molding
capabilities. The recent addition of a 5-ton electric press to their class
100,000 cleanroom expands their micro-molding capabilities, while a
new 110-ton electric press supplements capacity in their most highly
utilized molding range.
“Over the past few years, we have experienced the greatest percentage
of our growth with medical device OEM’s who currently account for
roughly 65% of our customer base,” says Paul Ziegenhorn, president.
“In order to accommodate the growing demand, we’ve added additional
capacity and expanded our offering in the micro molding arena. This
5-ton, fully-electric Toshiba EC5 has a 14mm screw and .21oz shot
capacity. This small size is particularly well-suited to running resorbable
and bioabsorbable resins which are both expensive and heat sensitive
and consequently require closer monitoring of the residence time than
most of the other resins we process here.”
“At the same time, we have been running near capacity on our two
100-ton presses where our largest volume medical and government
production jobs are concentrated,” says Andy Ziegenhorn, Molding
Accounts Manager. “We purchased the new 110-ton, fully-electric
Toshiba EC110SX to provide back up coverage and overflow capacity
in this size range.”
AMBA www.amba.org
Matrix specializes in molding intricate and tolerance-critical
components for the medical, electronics, military and consumer
products industries. Its services include design consultation, mold
design/build, close-tolerance molding, cleanroom services, and
advanced inspection reporting. Matrix is certified to both ISO
9001:2008 and ISO 13485:2003.
Matrix Tooling Earns ISO 13485:2003 Medical Certification
Matrix Tooling, Inc. & Matrix Plastic Products (Wood Dale, Illinois)
has been awarded certification to ISO 13485:2003, the international
quality management standard for medical devices. The certification was
achieved at the same time that Matrix was renewing its existing ISO
9001:2008 certificate.
“The majority of our customers are medical device OEM’s who develop
breakthrough technologies,” says Paul Ziegenhorn, President. “They
are required to comply with ISO 13485 regulations as they are the
actual ‘specifications developers’ of these medical devices. We decided
that incorporating these same requirements into our own Quality
Management System at Matrix made perfect sense. Not only does it
help us to be more aware of our customers’ needs and responsibilities, it
also gives our customers a higher degree of trust and confidence in us as
a value-added supplier.”
“We’ve been ISO 9001 certified for over ten years,” says Gary
Johansson, Matrix’s Vice-President of Quality & Regulatory. “As we
gained more medical customers, we continually adapted to what they
asked us to do. We found that we were already complying with most of
the additional requirements of ISO 13485 for risk analysis, traceability,
process validation and recordkeeping anyway. By formally adopting
those improvements into our own QMS, we were well prepared to pass
our audit and earn our official 13485 certification status.”
Matrix specializes in intricate and tolerance-critical components for
the medical, electronics, military and consumer products industries. Its
services include design consultation, mold design/build, close-tolerance
molding in 5-300 ton presses, cleanroom services, and advanced
inspection reporting.
M.R. Mold Announces Schedule
M.R. Mold & Engineering (Brea, California) has a busy schedule in
early 2011 both hosting events and presenting at others. The listing
below shows some of the items on their upcoming calendar, be sure to
join M.R. Mold at these events!
• February 17, presenting “From Art to Part”, a Southern California
SPE workshop
• March 7-9, sponsoring Molding 2011, San Diego
• March 22-23, invited speaker at Medical Silicone Conference,
Minneapolis
• April 12-14, hosting LIMS/LSR Process Optimization via
Scientific Molding
MSI Mold Builders Becomes ISO Certified; Adds Equipment
MSI Mold Builders (Cedar Rapids, Iowa), a leading manufacturer
of injection and blow molds for thermoplastic parts for a variety of
industries, has achieved its ISO 9001:2008 Certification. The company
has long been known for its advances in Lean Manufacturing, Six
Sigma, and 5S processes at its facilities.
Toby Bral, MSI’s quality manager, says, “We’re a very process-driven
organization and achieving our ISO certification helped us better
document our processes. While we’ve always had a formal process with
Page 20 a
19
 19647_EDRO_AD 7/12/07 3:42 PM Page 1

` Page 19
respect to our design and manufacturing, the ISO Certification helps
us maintain and improve our systems with formal internal audits and
corrective actions. Plus, we’ve honed our processes by adding complete
™ traceability to make it easier to back-track the steps and get to the
root cause of a problem.” Bral also notes that many of its customers,
particularly those in the Heavy Truck industry, require their suppliers to
Holder Steel for improved plastics mold tooling be ISO certified.

Today, RoyAlloy™ Stainless steel is the preferred mold base steel
of choice throughout North America. RoyAlloy™ demonstrates
significant improvements, including enhanced machinability,
improved stability, greater toughness, better weldability, and
more consistent uniformity and hardness when
compared with 420F/1.2085.
In addition to its ISO Certification, MSI Mold Builders will be
expanding its capabilities by adding new equipment in the next several
months. “We’ve budgeted for new equipment, and have purchased one
smaller 3-axis CNC machining center,” Roger Klouda, MSI’s President
said. MSI has also identified an additional 5-axis machining center for
the Iowa plant with approximately 40” x 40” travel to more efficiently
manufacture smaller molds and components. This will be MSI’s fourth
5-axis machine, with the largest two 5-axis machines having 65” x 110”
travel capacity.

Klouda notes that business is improving steadily over 2009, and he

expects sales to be up 20% over 2009 by year end 2010. “Currently
we’re putting a lot of our growth in the South Carolina facility,
including the recent addition of a 500-ton sampling press, because that
plant has more capacity, and there are many good growth opportunities
in the Southeast,” he adds. 

Edro Specialty Steels, Inc. MSI Mold Builders operates two facilities with a total of 60,000 square
California - Pennsylvania, U.S.A.
West: 800.368.3376 feet. The company serves the Heavy Truck, ATV, lawn and garden,
East & Midwest: 888.368.3376
Appenweier, Germany construction and agriculture equipment, medical, appliance and material
Tel +49 (0) 7805 91579-0
email: royalloy@edro.com handling markets. MSI Mold Builders has been in operation since 1971
www.edro.com
and currently employs 75.

Richmond Tooling Celebrates 25th Anniversary

Richmond Tooling (Colonial Heights, Virginia) has lasted through
many past challenges. That’s an accomplishment all by itself, and also a
testament to the company and to President Roger McGinnis’s personal
relationships with customers, especially the customers it’s had for 20+
years. The company has acquired some new technology and machinery
Mold Platen Insulation Materials over the past year. It has purchased a new Wire EDM machine and
Custom Fabricated Components programming software that have greatly increased its efficiency. By
design, the company has grown slowly and been diligent in keeping
costs down. “Because we operate a bit more cheaply than others, it’s
Energy Cost Savings been easier to make it through the difficulty of the last five to eight
years,” says McGinnis. “We have been doing better and more hard
milling over the last 18 months. First of all, it’s accurate. If we’ve got
contoured shut-offs, we can get them right the first time; and it speeds
H320 & H330 up the process, especially with getting the blocks to heat treating. We
mill less details, go to heat treat and then come back and add the details,
shortening lead times. If we can hard mill rather than EDM we can
reduce lead times.” The company specializes in multi-cavity, hardened
and hot runner molds. o
Gund MPI Glastherm HT

Classified Corner – AMBA’s Online Marketplace

to Buy & Sell Equipment
Consistent Mold Temperature AMBA Members: place a FREE classified advertisement on AMBA’s
website. This is the online marketplace if you want to sell or if you
are looking to buy used equipment, machinery, etc.
www.thegundcompany.com
Non-Members: Only $75 per month for an industry-related ad.
2121 Walton Road, St. Louis, MO 63114 Want more information? Please contact Sue Daniels at
Tel: (314) 423-5200 Fax: (314) 423-9009 847.222.9402 or sdaniels@amba.org.
mkleine@thegundcompany.com

20 www.amba.org AMBA

Untitled-41 1 1/26/11 3:58 PM

AMBA Welcomes New Members West Michigan Chapter Recognizes
There are many reasons why new companies choose to join the AMBA,
a True American Hero
and the following companies have just been accepted as members:
It was a sad day this past October for the
West Michigan chapter of the AMBA.
Ace’s Molding & Tool Inc. in Bohemia, NY, was founded in 2001.
Kent Hanson of H.S. Die announced his
The company designs and builds custom plastics injection molds and
resignation of presidency from the chapter
does molding, operating in a 6,000-square-foot facility with seven
and from the National Board of Directors.
employees.Ace’s Vice President, Paul Camaxide, said that the company
wanted to join the AMBA for the networking opportunities with other
Kent will be recognized by the chapter
moldmakers, and to help grow business through the lead lists AMBA
and presented with a plaque of sincere
provides.
gratitude and appreciation for all of his
years of service to this organization. This is
Advanced Digital & Mold Inc. is located in Bensenville, IL, and has
a huge loss for the chapter because it was
a 2,500-square-foot facility. Johnny Alexandersson is the owner of this
Kent’s passion and love of this industry
family-owned enterprise. The company was founded in 1975 as Allrite Kent Hanson
that made the chapter so great.
Design & Mold Inc., but in 2003, it was given a new company name.

Advanced Digital & Mold is a full-service mold builder with CAD/
Kent started in this industry as a mold polisher and soon worked his
CAM, CNC machining centers, CNC EDMing, and precision grinding.
way to general manager at H.S. Die in Grand Rapids, MI. He has been
The company specializes in all types of molds for injection molding and
a member of AMBA for over 30 years and has served on the AMBA
is capable of building molds up to 2,000 lbs. Advanced Digital & Mold
National Board of Directors since 2001, and has been the President of
employs three currently. Alexandersson said that his primary reason for
the West Michigan chapter since 2003. Kent is also an Eagle Scout, a
joining AMBA is that he is looking for help to improve sales.
family man, a friend, and a mentor to every one of us. His dedication
and commitment to this industry is clearly seen in the many articles that
Eagle Mold Co., Inc. in Carlisle, Ohio, was founded in 1984 by Wilbur
he has written his ongoing support of youth, and his devotion to others
Wisecup, who is the company’s president and general manager. Over
in this trade.
the years, Eagle Mold has expanded several times to accommodate
growth, most recently in 2007 bringing the total square footage to its
Kent is a friend to all of us as he has touched the lives of so many. Kent
current 26,000.
has always been the first one to introduce himself to someone new
at the chapter meetings, making everyone feel welcome. And at the
Eagle Mold offers high-speed machining centers and a robotic
conventions Kent likes to sit back and watch everyone, making sure no
machining cell capable of changing 140 work pieces unattended in
one was left out. Knowing Kent was to know he will be looking out for
the company’s 24/7 operation. The company is capable of machining
you. All the past memories we’ve shared with Kent won’t be forgotten
components up to 5,000 lbs. Currently Eagle employs 24 people.
and the good times many of us have shared with him will always make
Website: www.eaglemoldcompany.com
us smile.
Paragon Die & Engineering is located in Grand Rapids, MI. The
The West Michigan chapter sincerely thanks Kent Hanson for
company was founded in 1961, but in 1962, Fred M. Keller purchased
everything he has done for the industry. Don’t be a stranger Kent, we
the company for $1, and over the past four decades Keller has built
will all miss you but never forget you. You have truly been an American
the company into a world-class supplier of Compression and Injection
Hero to all of us. o
molds. The company operates in a 165,000-square-foot facility and
employees 170. The company also offers prototype tooling and parts
services through its ProtoType Express. Specializing in large tooling,
the company boasts the largest double-gantry FIDIA 5-axis milling Chapter News
machine in North America. Paragon also does custom machining work
of specialty tooling for the plastics industry. Jon Hamming is the sales California
engineer for Paragon. The chapter will host a Meet and Greet event for all members and
partners in mid-February. More details can be found under Chapter
Hamming said that the primary reason for Paragon joining the AMBA is Affiliations at www.amba.org.
for the seminars, discussions with industry leaders, new customer leads,
collaborative sales opportunities and education that the AMBA provides Chicago
its members. The chapter will host a chapter event on Thursday, February 24, 2011 at
Website: www.paragondie.com 6:00 p.m. for a general membership dinner meeting. Speaker Deb Rood
from Blackman Kallick will discuss the 2011 Illinois tax hike and other
tax changes. For more details contact Karen Norville, Chicago Chapter
Welcome to these new members! Coordinator, at karennorville@comcast.net.

The AMBA has been recognized for nearly 40 years as the only trade
association dedicated to mold manufacturing in the United States and Southwest Michigan
continues to provide value to its members through its many products The chapter co-hosted a meeting on December 9th through Cooperative
and services. o Efforts of Your Local Manufacturing Trade Associations: AMBA,
NTMA, PMA, ISM, BTC, SME. The speaker for the evening was
Mr. Harry Moser, Chairman Emeritus of GF AgieCharmilles, and the
presentation titled, “Helping Customers and Shops Understand and
Page 22 a
AMBA www.amba.org 21
` Page 21
Maximize the Benefits of Local Sourcing”
Harry Moser, Reshoring Initiative founder, will present the progress
of the Initiative, a non-protectionist, efficient way to reduce our
imports, increase our “net exports” and regain manufacturing jobs now!
Companies that offshore will obtain a software to accurately calculate
their TCO (Total Cost of Ownership) of purchased parts and tooling.
Job shops will learn how to use the software to sell the benefits of local
sourcing.
West Michigan
A general membership breakfast meeting was held on February 8th, with
guest speaker Ken Yonker of the Michigan House of Representatives,
District 72, Calendonia.
The chapter also has a dinner and Scholarship meeting scheduled
for Tuesday, May 10th. Watch for more details from your chapter
coordinator. o
AMBA Partner Spotlight - Welcome
New Partners
The American Mold Builders Association welcomes two new Partners:
Kennametal Extrude Hone
The first is Partner Kennametal
Extrude Hone. The company
is dedicated to innovating
and providing advanced
manufacturing processes to produce some of the highest quality
engineered surfaces and edges on the planet. A menu of technologies
and equipment for deburring, polishing, and producing controlled radii
are available to customers for improving the strength, performance, and
overall reliability of the components they produce.
The company provides abrasive flow machining (AFM), electrolytic
machining (ECM) and thermal energy method deburring (TEM). It is a
developer and supplier of advanced manufacturing processes, machine
tools, and contract machining services for deburring, polishing, and
surface finishing. Visit Kennametal Extrude Hone at www.extrudehone.
com.
Sescoi USA, Inc.
The AMBA’s second new Partner
is Sescoi USA, Inc. It provides
manufacturing software for the
mold and die industries: WorkNC
automatic shop floor CAM, WorkNC-
CAD for molds/dies. MyWorkPLAN quoting/job management, and
WorkPLAN Enterprise complete shop management program.
Sescoi is a leading international supplier of CAD CAM software and
ERP & job shop systems, with offices and distributors around the world.
Sescoi develops, markets and provides technical support and training  have a right to know who you are hiring. Be sure to make background
for WorkNC automatic CAD CAM software for 2-5 axis machining,
WorkNC Dental CAD CAM,WorkNC-CAD, WorkXPlore 3D CAD
Viewer as well as WorkPLAN Enterprise and MyWorkPLAN,  its ERP
system and job shop software for custom and ETO manufacturers.
Visit www.sescoi.com for more information.
We welcome Kennametal Extrude Hone and Sescoi USA to the AMBA! o
22 www.amba.org
Human Resources
Are You Hiring? Background Checks
Are a Good Hiring Practice
Q: I am a business owner and have had some issues with recent hires.
How can I best avoid hiring the wrong person in the future?
A: In short, background checks! There was once a time when a person
could walk into a store, grab the “help wanted” sign from the window,
and walk out with a job. But, with the growing job pool and changing
economy, that’s not a safe hiring practice anymore.
According to the U.S. Department of Commerce, 30% of small business
failure is caused by employee theft, and embezzlement losses exceed $4
billion annually. The Society for Human Resource Management states
that 45% of all resumes contain at least one major fabrication, and the
Wall Street Journal reported that 34% of all job applications contain
falsified information regarding experience, education and the ability to
perform essential job functions.
The best way for business owners to avoid being part of these statistics
is to conduct background screenings on any potential employee before
offering the job, paying particularly close attention to prior employment
verification. This is the area where most applicants misrepresent their
actual employment experience, which will help you weed out dishonest
applicants. According to Avert Inc., a company specializing in employee
background checks, out of one million job applicants last year, 7% had a
criminal record, 21% had filed a workers compensation claim and 29%
had misrepresented their employment records.
Professional background checks are quick — typically taking between
48 and 72 hours to complete — and range in price from $100 to $200,
depending on the type of information you want to find. Items to check
include county criminal record, prior employment, education, licensing,
motor vehicle record, credit report, Social Security number and
references. If you are a small-business owner, the cost may seem high,
but it can save you a lot of money (and headaches) in the future.
Background checks are legal if followed according to the Fair Credit
Reporting Act, which protects job seekers and employers. Employment
ads should state that background checks are performed, and employers
should obtain a signed release from the applicant prior to running a
background check or employment verification. Policies and procedures
must be in place regarding hiring to ensure each applicant is handled in
the same manner.
Safe hiring is something all businesses need to adopt as a way to protect
their employees, their business and their time. Poor hiring decisions can
increase the chances of a workplace injury or a fraudulent claim. You
screenings a part of your businesses hiring practices today.
Taken from the third quarter 2010 issue of the Workforce Forum.
AMBA
Structuring a New
Employee Orientation
By: Karla Dobbeck, PHR, Human
Resource Techniques, Inc.
Your newly hired employees deserve the
best chance for success at your company.
You can help each become a valued member
of your team by planning a well thought out
New Employee Orientation.
The EEOC and OSHA require that
employees receive specific training before
entering the workplace and if you are ISO, QS or TS certified, additional
competency work is also required.
Start your employees out right by ensuring they have the tools they
need to be successful. Before sending unsuspecting new hires into your
facility, make certain they understand:
• Their job – provide a copy of the job description. Unless your
employees know what is expected of them, they will have a hard
time meeting expectations.
• Administrative procedures for calling in, payroll, timekeeping and
requesting time off, etc. Your employees will feel at home when
they know how things are done at your company.
• Benefits, eligibility requirements and how to access, etc. Now might
be a good time to get enrollment forms into their hands as well.
• Safety. Include emergency measures, where to find MSDS and how
to read them, what PPEs are required and their responsibilities under
Lockout /Tagout.
AMBA www.amba.org
• Important company policies – those hot button issues for you.
Attendance, work rules, cell phone use to name a few. Don’t forget
Harassment & Discrimination reporting and your commitment for
zero tolerance.
• How to get additional information and who to see with questions,
concerns or issues. Who should the employee contact for an
equipment failure, bad parts, missing tools, etc.
• Company information – your history, industries you serve, mission
statement and quality statement.
Take some pro-active steps to get employees started on the right foot.
Remember, this is your best chance to make sure the information a new
employee receives is consistent and sends the message you want to send.
When employees feel welcomed and part of the family, their decision to
join your company is validated.
It’s Flu Season
Below are a few ideas you might want to consider to help combat colds
and flus at the workplace.
1. Develop a policy allowing management to send people who are
sick home and requiring a doctor’s note to return.
2. Provide mini-hand sanitizers to each employee. They are available
at discount stores and drug stores for about $1.00 each.
3. Post notices about flu shots. Most insurance providers pay a
portion or pay 100% for them.
4. Allow employees to stay home with sick children. Don’t count
the absence against their attendance record.
5. Arrange for flu shots at the workplace.
Page 25 a
23
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www.amba.org AMBA
` Page 23
6. Post notices about the importance of covering coughs, washing
hands and staying away from crowds.
7. Allow employees ½ day off this coming holiday season so they
can shop when stores are not crowded. This will not only help
them avoid germs, it will also provide a big morale booster!
Do your part this year to keep your staff healthy. Your employees will
notice and appreciate your concern for their wellbeing and thank you
for it!
Healthcare Reform Changes
As you know, healthcare reform will be phased in over several years.
Beginning in 2011, several areas are affected. Below are a few that will
affect your employees and your procedures. Over the coming months,
more will be highlighted.
Flexible spending accounts: Effective 01/01/11, employees will no
longer be able to use their flexible spending accounts to purchase over-
the-counter medications such as aspirin, cough syrup, Band-Aids, etc.
without a note from their doctor.
Many employers are notifying their employees of this change and
suggesting employees stock up on items they frequently use before the
end of the year.
Long-term care: A new national insurance program to provide
longterm care for employees will be mandated. All premium costs
can be charged to the employee and beginning in 2011, the company
must have automatic procedures to allow workers to opt out or initiate
enrollment.
Nursing mothers: Amends the FLSA. Employers must provide a
reasonable break time and shielded area, other than a bathroom, for
mothers to express milk for their nursing child(ren). This applies to
mothers of children up to one year of age.
Good Time to Check Your Posters
Regardless of your size or business type, there are several state and
federal employment law posters business owners are required to post
in areas accessible by employees and applicants. If you are in need of
any of these posters, please don’t buy them! They are each available
free of charge from the issuing agency. HRT has made it easy for you
to access them by visiting www.hrtechniques.biz. Simply click on the
Posters, Forms & Links tab and download what you need directly to
your printer.
All employers:
• Federal EEOC Poster
• Federal Job Safety Poster
• Federal Minimum Wage Poster
• Federal Polygraph Protection Act Poster
• USERRA (Military Service Rights)
• Smoke Free Workplace (posted on all entry ways)
•
Over 50 employees:
• Add FMLA Poster
AMBA www.amba.org
Government contractor:
• E-Verify Posters in English and Spanish
• Disability Employee Rights Poster
• Public Contractor Poster
• Employee Rights Under the NLRA Poster
Many, such as e-verify, EEOC and polygraph protection must be accessible
to both employees and applicants. Have questions? Feel free to give me a
call at 847-289-4504 or karlad@hrtechniques.biz
Be on the Lookout –
NLRB New Poster is Coming
The National Labor Relations Board is in the process of writing a new
regulation which would require most employers to post a ‘right to
organize poster’ in their workplace. Currently, this poster is only required
for federal contractors.
Right now, there is only one dissenting voice on the panel. Others on the
panel believe that failing to notify employees of their right to organize
is in itself, an unfair labor practice. In his opinion, the board does not
have the legal authority to impose this rule.
There is much more to come on this issue and in the meantime,
please get in touch with your associations, professional organizations,
chambers of commerce and others who have a voice in Washington. Ask
them to provide comments to the NLRB.
Comments on the proposed rule are due by Feb. 22, 2011. Comments
should be identified by 3142-AA07 and may be sent electronically
through www.regulations.gov, or mailed to Lester A. Heltzer, Executive
Secretary, National Labor Relations Board, 1099 14th St. NW,
Washington, DC 20570. If adopted, a new poster will be forthcoming.
AMBA Member Benefit:
Your company listing on the AMBA website at www.amba.
org.  Featuring the FIND a MOLDMAKER online buyer’s
guide, to make it easy for OEMs and molders to find a mold
shop by geographic location, services and specialties. With
more than 120,000 hits per month, you’ll see an increase in
inquiries and RFQs!
Another AMBA Member Benefit:
Affordable advertising opportunities in our monthly OEM
E-Newsletter called U.S. Tooling & Technology News.  A
monthly E-Newsletter sent to OEMs, Mold Buyers, Molders,
and Tooling Engineers allowing you to advertise directly to your
potential customers.  This targeted e-newsletter is delivered to
the desk of every mold buyer in our extensive database.
25
Record Retention Tips for
Federal Contractors
Straight from the Office of Federal Contract Compliance Programs
(OFCCP) – below are some key tips for federal contractors.
If your contract is less than $150,000 AND you have fewer than 150
employees, ALL items involved in the employment relationship must be
kept for 1 year. All items include but are not limited to the following:
• “Such records include, but are not necessarily limited to, records
pertaining to hiring, assignment, promotion, demotion, transfer, lay
off or termination, rates of pay or other terms of compensation,
• Selection for training or apprenticeship, and other records having to
do with requests for reasonable accommodation, the results of any
physical examination, job advertisements and postings, applications,
resumes, and any and all expressions of interest through the Internet
or related electronic data technologies as to which the contractor
considered the individual for a particular position, such as on-
line resumes or internal resume databases, records identifying job
seekers contacted regarding their interest in a particular position.
• For purposes of recordkeeping with respect to internal resume
databases, the contractor must maintain a record of each resume
added to the database, a record of the date each resume was added
to the database, the position for which each search of the database
was made, and corresponding to each search, the substantive
search criteria used and the date of the search; for purposes of
recordkeeping with respect to external resume databases, the
contractor must maintain a record of the position for which each
search of the database was made, and corresponding to each search,
the substantive search criteria used, the date of the search, and the
resumes of job seekers who met the basic qualifications for the
particular position who are considered by the contractor….” o
Tax & Business
Tax Relief Act Passes.....Finally!
In addition to extending the Bush tax cuts (basically keeping tax rates
unchanged for the next two years), providing relief from the AMT,
and cutting the payroll tax by two percentage points, the recently
enacted “Tax Relief, Unemployment Insurance Reauthorization, and
Job Creation Act of 2010” (Tax Relief Act) extends a host of other
important tax breaks for businesses and individuals. This is an overview
of these key tax breaks that were extended by the new law. Please call
your tax professional for details of how the new changes may affect you
or your business.
Business tax relief.
On the business side, the following business tax breaks that expired at
the end of 2009 have been retroactively reinstated and extended through
2011 by the Tax Relief Act:
• The research and development credit.
• 15-year writeoffs for qualified leasehold improvements, and
restaurant buildings (and certain improvements to such restaurant
buildings).
• Seven-year writeoffs for certain motorsports racetrack property.
• The employer wage credit for activated military reservists.
26 www.amba.org
• The active financing exception from the Code’s Subpart F rules
for a controlled foreign corporation predominantly engaged in the
conduct of a banking, financing, or similar business.
• Look-through treatment of payments between related controlled
foreign corporations.
• The Indian employment credit.
• The new markets tax credit.
• Accelerated depreciation for business property on an Indian
reservation.
• The railroad track maintenance credit.
• The special expensing rules for certain film and television
productions.
• The mine rescue team training credit.
• The election to expense advanced mine safety equipment.
• Expensing of environmental remediation costs.
• The deduction allowable for domestic production activities in
Puerto Rico.
• The American Samoa economic development credit.
• The rules exempting from gross basis tax and from withholding tax
the interest-related dividends and short-term capital gain dividends
received from a RIC by certain foreign persons (extended to apply
to tax years of a RIC beginning before 2012).
The inclusion of a RIC within the definition of a “qualified investment
entity” under the provisions of the Foreign Investment in Real Property
Tax Act as codified in Code Sec. 897.
• The enhanced deduction for contributions of food and book
inventories, and computer equipment for educational purposes.
• A liberal rule for S corporations making charitable donations.
• The special rules for interest, rents, royalties and annuities received
by a tax-exempt entity from a controlled entity.
• Empowerment zone tax incentives.
• Renewal community tax incentives.
• Tax incentives for investments in the District of Columbia.
• The work opportunity credit (extended for four months (through
the end of 2011)).
• Qualified zone academy bonds.
In addition, the new law extends for an additional year (i.e., through
2011) the temporary exclusion of 100% of gain on the sale of certain
small business stock. o
Taken from the December 2010 issue of the Sunderland e-newsletter.
Accountable Plans 101
Do you reimburse your employees for expenses incurred on behalf
of your business? Hopefully, you have a written plan or policy in
place that is consistent with the IRS guidelines referred to as the
“accountable plan” rules. Failure to follow these guidelines will result
in taxable income for employees receiving these improper expense
reimbursements. Just to be sure that employers are complying with the
accountable plan rules, the IRS is conducting 6,000 comprehensive
employment-tax audits. With all this in mind, we felt it was a good time
to revisit the accountable plan rules.
AMBA
What Is an Accountable Plan?
Anatomy of a Better
An accountable plan is a reimbursement or expense-allowance Multi-Gate Nozzle
arrangement that has three criteria that must be met to keep payments
out of your employee’s wages. If the three requirements are not met,
then you have a nonaccountable plan and the employee must report the POM
payments as gross wages and subject them to all employment taxes. The
three criteria are PPS
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From 1.0" to 8.0"
UltraPolishing AMBA Ad 2009.pdf 10/6/09 3:02:05 PM
2. substantiation Number of Probes
From 1 through 12
DEL
AMO
3. return of excess amounts ★ Minimal
Residence BS
Business connection Time PC/A
The expense must have been incurred in connection with services 5 Standard
TAL
“XT” Options ACE
performed by an employee for an employer. The expense must be
★ Temperature M
allowable as a deduction by the business (meeting the requirements
Control at ULTE
under Internal Revenue Code Sections 161 to 197). These are ordinary Each Gate N
and necessary expenses incurred when conducting your trade or NYLO
A Must Have When
business. Processing High- IN
Heat Resins DELR
Substantiation
To meet this requirement, the employee should keep a log, diary, Heater TPR
statement, or similar record that states the date, time, place, amount, Thermocouple
and business purpose of the expenses. Receipts are required if the
Optional Carbide
expense is greater than $75. Electronic receipts and expense reports are Tipped Probe for
Wear Resistance
allowed. Grouping of expenses into general categories is not acceptable.
An example of a general category would be “travel expenses.” The
IRS requires that it be broken down into smaller categories such as
Call Us Direct
transportation, hotel, meals, entertainment, etc. (800) 499-OSCO
★ www.oscosystems.com ★
Return of excess amounts
If you provide your employee with a monthly allowance or an
advance to pay for an expense, the amount in excess of the amounts
substantiated or used must be returned within a reasonable period of
time; otherwise it is considered taxable wages. The IRS states that this
determination can be made in one of two ways — “fixed-date method”
or the “periodic-statement method.”
Fixed-date method
Under the fixed-date method, the employer cannot pay out the
advance more than 30 days before the anticipated date that
the expense will be incurred. The employee must substantiate
the expense within 60 days after the advance was paid or the
C

expense incurred. Also, the employee must return any unused

or unsubstantiated portion within 120 days of the advance or
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expense being incurred.

Y

Periodic-statement method
CM

The periodic statement method allows the employee to return

MY

any unused or unsubstantiated portion of an advance or

allowance within 120 days from when the employer provides
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a statement detailing the amount that needs substantiation. The

CMY

employer must provide this statement no less than quarterly.

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Other allowable methods

The IRS does allow for other methods if they are reasonable
and based on facts and circumstances. The two methods listed
above are considered safe-harbor methods.
If the IRS finds that the substantiation requirements or reasonable-time
requirements are being abused, they may deem the entire plan to be
nonaccountable, making these expenses taxable to your employees and
subject to payroll taxes.

Page 28 a
AMBA www.amba.org 27
` Page 27
A few other items of note regarding accountable plans:
• An employer can have multiple expense policies.
• A per diem allowance payment can be made under an accountable
plan.
• An employer can have both accountable plans and nonaccountable
plans for different types of reimbursements.
• An employer can have a more restrictive plan than the IRS, but not
less restrictive, for the expenses to be deemed not reportable by the
employees.
• An employee cannot compel the employer to establish a plan.
Reimbursements that do not meet the three requirements listed in
the beginning of this article are considered payments made under a
nonaccountable plan and are taxable wages when paid or constructively
received by the employee.
The above accountable plan rules apply to most expenses. There are
additional rules relating to certain expenses such as travel, gifts, spousal
expenses, club dues, meals and entertainment, and auto allowances. o
Taken from the December 2010 Issue of Blackman Kallicks Tax
Highlights.
28 www.amba.org
Business Cell Phone Restrictions
Removed
Effective for tax years beginning after 2009, cell phones and similar
telecommunications devices used for business are no longer subject
to the ultra-strict recordkeeping requirements that formerly applied.
This retroactive change has some taxpayer-friendly consequences.
For instance, a self-employed individual is no longer required to keep
detailed usage records to prove that a cell phone is used for business.
However, if the individual has only one cell phone used for both
personal and business purposes, some recordkeeping will still be
necessary to determine allowable business deductions. An employee
who uses a personal cell phone for his or her employer’s business can
now claim the related costs as a miscellaneous itemized deduction
without having to prove the phone usage was for the employer’s
convenience. o
Taken from the December 2010 issue of the Tax & Business Alert.
Preserving Tax Deductions for
Business Travel
If a taxpayer’s trip is undertaken solely for business reasons, reasonable
and necessary travel expenses, including travel fares, lodging,
meals, and incidental expenses in getting to and from the destination
are generally deductible on federal tax returns (subject to the 50%
disallowance for meals and entertainment). Transportation, lodging,
meals, and incidental expenses incurred while at the destination should
also qualify as federal tax deductions. However, if the taxpayer’s trip
involves both business and personal activities, a portion of the travel
expenses may actually be nondeductible personal expenses rather than
deductible business expenses.
AMBA
If a taxpayer travels on business in the United States and while at the
business destination extends his or her stay for a vacation, makes a
Retirement Plan Limitations
nonbusiness side trip, or has other nonbusiness activities, the proper Unchanged
treatment of the taxpayer’s travel expenses depends on how much of the
The IRS has determined the 2011 cost-of-living adjustments for
trip was business-related. The following guidelines generally apply:
retirement plans. Generally, the limits remain unchanged from 2010.
The contribution (elective deferral) limit for employees who participate
a. If the trip was primarily for business, the deductible travel expenses
in Section 401(k), 403(b), or 457(b) plans and the federal government’s
include the costs of getting to and from the business destination and any
Thrift Savings Plan remains unchanged from 2010 at $16,500 in 2011.
business-related expenses while at the business destination. Personal
For those age 50 or older at year-end, the catch-up contribution limit
(vacation) costs incurred while at the destination are not tax-deductible.
under these plans also remains unchanged at $5,500. The limitation
for SIMPLE plans is unchanged at $11,500 in 2011, as is the catch-up
b. If the trip was primarily for personal reasons, such as a vacation, the
contribution for those aged 50 or older at year-end at $2,500. o
costs of getting to and from the destination are personal (nondeductible)
travel costs. Personal costs incurred while at the destination are also
Taken from the February 2011 issue of the Tax & Business Alert.
nondeductible. However, any business costs incurred while at the
destination are tax-deductible expenses.

Whether a trip is primarily business or personal depends on the facts

and circumstances of each case. The amount of time spent on business
activities compared to the time spent on personal activities is an
important factor. It is essential to note that time spent is only one factor AMBA Member Benefit:
to consider and may not be the dominant factor given the facts and
circumstances. If the taxpayer would not have taken the trip except to FREE Qualified Sales Leads from AMBA trade show participation.
achieve the business purpose, a strong argument can be made that the We do the legwork for you! Hundreds of OEM mold purchasers
trip was primarily for business. and engineers stop by the AMBA booth at industry trade shows
(like NPE, PLASTEC, and PDx/Amerimold) to get information
The proper allocation of travel expenses between business and
about moldmaking companies. We qualify them, scan their
nonbusiness categories is often difficult to determine. Please contact
information and you receive a list of hundreds of mold purchasers!
your tax professional to discuss specific travel expense allocation issues
or any other tax planning or compliance matter. o It’s that simple! Join AMBA and have access to Qualified Lead
Lists today!
Taken from the February 2011 issue of the Tax & Business Alert.

AMBA www.amba.org 29

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Small Business Jobs Act
The President recently signed the Small Business Jobs Act of 2010
(2010 Small Business Act), which includes a number of provisions to
spur business activity and create jobs. Listed below are some of the
more important provisions of the 2010 Small Business Act. Please
contact us if you have questions about these or other provisions of this
recent legislation.
Section 179 first-year depreciation deductions doubled for
2010 and 2011
The Section 179 deduction privilege allows many small and medium-
sized businesses to immediately write off most or all of the cost of
qualifying new and used assets in the first year instead of having
to depreciate the cost over a number of years. The 2010 Small
Business Act increases the maximum annual Section 179 deduction to
$500,000 for eligible assets placed in service in tax years beginning
in 2010 and 2011 (up from the $250,000 maximum that applied for
tax years beginning in 2009). Most types of depreciable personal
property (including computers, equipment, and furniture) and most
purchased software qualify. For the first time, some types of real estate
improvement costs also qualify (see the following topic).
However, larger businesses can lose all or part of the Section 179
deduction allowance due to an unfavorable phase-out rule. Under that
rule, the allowance is reduced dollar for dollar by the cost of qualifying
assets placed in service during the year (those that would otherwise
be eligible for the Section 179 privilege) in excess of the applicable
threshold. For tax years beginning in 2010 and 2011, the new law
greatly increases the phase-out threshold to the quite-generous level of
$2 million (way up from the $800,000 threshold for tax years beginning
in 2009). Thanks to this change, far fewer businesses will be tripped up
by the phase-out rule in 2010 and 2011.
Caution: Watch out if your business already has or is close to a tax loss
for the year before considering any Section 179 deduction. You cannot
claim a Section 179 write-off that would create or increase an overall
business tax loss for the year.
Some real property improvement costs now qualify for
Section 179
Until now, real property improvement costs were ineligible for the
Section 179 deduction privilege. That is no longer true. For tax years
beginning in 2010 and 2011, up to $250,000 of qualified improvement
costs for (a) interiors of leased nonresidential buildings, (b) restaurant
buildings, (c) and interiors of retail buildings can be deducted
immediately under the Section 179 deduction provision. However, the
$250,000 Section 179 allowance for real estate improvements is part
of the overall $500,000 allowance. Again, watch out if your business
already has or is close to tax loss for the year before considering any
Section 179 deduction. You cannot claim a Section 179 write-off that
would create or increase an overall business tax loss for the year.
50% First-year bonus depreciation retroactively reinstated
The 2010 Small Business Act retroactively reinstates the 50% first-year
bonus depreciation provision for one year to cover qualifying new (not
used) personal property assets and purchased software placed in service
by December 31, 2010. Before this retroactive change, the bonus
depreciation provision had expired on December 31, 2009. It is now
back for eligible assets placed in service by the end of this year.
Unlike the Section 179 deduction, bonus depreciation is available
to even the largest businesses. However, small and medium-sized
businesses that can take advantage of both the Section 179 deduction
and bonus depreciation are the biggest winners.
www.amba.org AMBA
Bigger first-year depreciation deductions for new autos and
light trucks
If your business buys a new (not used) passenger auto or light truck
during 2010 that is subject to the dreaded luxury auto depreciation
limitations, the reinstated 50% bonus depreciation write-off increases
the maximum first-year depreciation deduction by $8,000 for vehicles
placed in service by December 31, 2010. Most passenger vehicles
qualify except for big SUVs, pickups, and vans. For new cars, bonus
depreciation raises to the maximum first-year depreciation write-off for
2010 to $11,060 (assuming 100% business use). For new light trucks,
the maximum first-year depreciation deduction for 2010 is raised to
$11,160 (assuming 100% business use).
Business start-up cost deduction rule liberalized for 2010
For tax years beginning in 2010, the 2010 Small Business Act increases
the maximum deduction that can be claimed for start-up costs to
$10,000 (up from $5,000) in the year when a new business commences
operations. However, the $10,000 deduction allowance is phased out
once cumulative start-up costs exceed $60,000. Start-up costs that
cannot be deducted in the year business commences can be amortized
(written-off) over 180 months, starting with the month business
commences.
General business credits
Before the 2010 Small Business Act, most general business credits
could be used to offset regular income taxes but not AMT. Also, general
business credits that could not be used in the current year (unused
credits) could be carried back one year or forward 20 years. The 2010
Small Business Act creates an exception that allows general business
credits that arise in tax years beginning in 2010 to offset AMT for 2010.
Also, unused general business credits from 2010 can be carried back
five years or forward 20 years. However, these exceptions are only
available to eligible small businesses with average annual gross receipts
for the preceding three tax years of $50 million or less. o
Taken from the December 2010 issue of the Tax and Business Alert.
Tax Credits for Small-Business
Health-Care Costs in 2010 - What is
the Definition of a “Small Business”?
One of the first provisions of the Patient Protection and Affordable Care
Act to go into effect is a health-care tax credit for small businesses and
tax-exempt organizations. This credit is effective for tax years 2010
through 2013 and is designed to encourage small businesses and certain
tax-exempt organizations to begin providing health-care coverage for
their employees or continue the coverage they currently have. So is the
definition of a small business the same as we have heard described for
other tax incentives and disincentives? Well, of course, the devil is in
the details.
Small businesses and qualified tax-exempt organizations that qualify
for the maximum credit are defined as employers having 10 or fewer
full-time-equivalent employees (FTEs) with average wages of less than
$25,000. The credit is phased out for employers with more than 10 but
fewer than 25 FTEs and average wages between $25,000 and $50,000.
The number of FTEs is determined by dividing the total hours for which
the employer pays wages, but not greater than 2,080 per employee, by
2,080. Average annual wages are determined by dividing total wages
paid by the employer to employees during the year by the number of the
employer’s FTEs.
Since the credit is based on full-time equivalents, it is possible for
an employer with more than 50 employees to qualify for the credit if
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many of their employees are part-time help. Business owners, including
partners in a partnership, sole proprietors, and 2% or more shareholders
in an S Corporation, and their family members do NOT count as
employees; therefore, their wages and hours are not included in the
limitation.
The credit is based on a percentage of the premiums employers pay for
their employees and is capped by the average premium for the small-
group market in a state determined by the Department of Health and
Human Services and published by the IRS. The employer must pay
for over 50% of the cost of coverage in order to qualify, and can take
a credit for 35% of the actual premiums paid by the employer. The
amount of the credit reduces the deduction that the employer takes for
insurance premiums, thereby changing a deduction into a credit. Tax-
exempt organizations can claim a credit for 25% of the premiums paid
but cannot exceed the total amount of income and medical tax (both
employee and employer share) for the employee. For an example of
how to calculate the credit please go to http://www.blackmankallick.
com/articles/2010/11/calculation-of-health-care-tax-credit/
The credit is claimed on the employer’s 2010 tax return and can offset
both regular tax and alternative minimum tax. The IRS will provide
future guidance on how a tax-exempt employer claims the credit, which
is refundable. For qualified small businesses, the credit is a general
business credit, and if the credit exceeds the amount of tax for the year,
the unused credit may be carried back one year, or forward twenty. For
2010, the credit is only allowed to be carried forward, since you cannot
carry back the credit to a year before the credit was effective.
This credit is the first of many changes that the Patient Protection and
Affordable Care Act will create. It was intended to promote health-care
coverage for small businesses that employ low- and moderate-income
workers. If you have been considering offering health insurance for
your employees, and you qualify for this credit, this may be a great
incentive to start offering health insurance. o
For further questions or comments, please contact Bailey Maenner at
312.980.3248, Teri Newman at 312.980.2926 or your Blackman Kallick
representative. Taken from the November 4, 2010 issue of the Blackman
Kallick Tax Highlights.
DANGER, Will Robinson, DANGER!
Group Health Plans to Become
Subject to Nondiscrimination Rules
The Patient Protection and Affordable Care Act enacted in March 2010
has several provisions that come into play for plan years starting after
September 23, 2010 (i.e., for calendar year plans the effective date is
January 1, 2011). Please note that your benefit plan calendar year may
not actually be the same as your income tax year. It is not unusual for
plan years to have a fiscal year end; please consult with your benefit
provider if you are not sure of the plan year.
One provision that may catch many small businesses by surprise is
the new requirement that group health insurance plans be subject to
the same nondiscrimination rules that self-insured health plans are
guided by. Prior law did NOT require that group health plans have
the same benefit for more highly compensated employees and owners
as compared to all other employees. Therefore, it was possible for an
owner to have a group health plan that covered his family while the
remaining employees were only provided with self-coverage. It was also
possible for an owner to maintain a group plan with a $500 deductible
while all other employees had a $2,000 deductible (even though in
practice, this different deductible was difficult, if not impossible, for a
small business to purchase).
Page 32 a
31
` Page 31
What may be a bigger surprise are the costs of noncompliance by the
small business person. Self-insured plans may just lose tax exemption
of amounts paid for owners and highly compensated employees
for medical care to the extent of noncompliance. Unfortunately, the
cost of noncompliance for group health plans could be an excise
tax of $100 per day per person along with potential civil action to
enforce compliance or for appropriate equitable relief. If you have 50
employees, that could result in a daily fine of $5,000. Welcome to health
care reform!
While many of the provisions of the Health Care Bill may not take
effect for a few more years, there were some provisions that became
effective this year. The above is one of those provisions. o
Taken from the December 2010 issue of Blackman Kallicks Tax
Highlights.
EFTPS Changes as of
January 1, 2011
For all companies that are currently using paper coupons to deposit
their federal taxes, an important change is occurring on January 1,
2011. Paper coupons will no longer be allowed, and companies must
be prepared to deposit their federal taxes by telephone or by using the
Electronic Federal Tax Payment System (EFTPS). This applies only
to Federal Tax Deposits (Form 8109), and does not alter whether the
deposit is on a monthly or semiweekly basis.
The following taxes must be deposited using EFTPS:
• Corporate income and estimated taxes
• Tax-exempt organization unrelated business income taxes
• Private foundation excise taxes
• Taxes withheld on nonresident aliens and foreign corporations
• Estimated taxes on certain trusts
• Federal employment taxes, including FICA taxes, railroad
retirement taxes, and income tax withholding
• Nonpayroll taxes, including backup withholding
• Federal Unemployment Taxes Act (FUTA) taxes
• Excise taxes reported on Form 720 (Quarterly Federal Excise Tax
Return)
With this pending change, it is important to enroll in the EFTPS
program immediately if you are not already using it. Enrolling online
can be done at www.eftps.gov. An alternative method is to complete
Form 9779 and mail it into the EFTPS enrollment center. Enrolling
online usually takes about 15 days, while mailing Form 9779 can take
up to 10 weeks. To enroll in the EFTPS, businesses must provide their
employer identification number, bank account and routing numbers,
business name, business address, and business phone number.
After enrollment, the business will be mailed a confirmation form and
instructions on how to use EFTPS to pay their federal tax payments.
Within these mailings is a Personal Identification Number (PIN) that
allows the business to pay its taxes by phone. To pay on the internet,
follow the instructions in the mailed manual.
EFTPS has a number of advantages. Businesses can access payments at
all times, and payments can be scheduled up to four months in advance.
It also allows for easier and more efficient tracking of payments.
According to the IRS, errors are 31 times less likely to happen if using
the EFTPS system. If your business is not already using the EFTPS
system, it is important to make this change as soon as possible. o
Taken from the January 2011 issue of the Blackman Kallick Tax
Highlights.
32 www.amba.org
Business Success Strategies
New Small Business Loans
Approved in “Minutes”
By: Catherine Clifford
The Small Business Administration announced two new lending
initiatives aimed at getting relatively modest loans to small businesses
quickly.
The idea is to get loans under $250,000 into the hands of small
businesses efficiently: Applications are only two pages long and can
be approved in anywhere from “minutes” to 10 days, according to the
SBA. Greater access to credit should help spur firms to grow and hire,
giving the economy a boost.
“Many entrepreneurs and small business owners across the country
have enormous potential to drive economic growth and create good-
paying jobs in their local communities, but too often they face barriers
in fulfilling that potential,” said Catherine Hughes, chairperson of
the SBA’s new Advisory Council on Underserved Communities, in a
written statement.
Banks have been slow to lend to small businesses, even as credit
availability has eased since the global financial crisis hit. More than
three-quarters of small businesses that applied for a loan during the first
half of 2010 received only “some” or “none” of the credit they desired,
according to a New York Federal Reserve report released in October.
Unlike big corporations, which can issue stock, sell bonds or take other
measures to raise cash, small businesses are largely at the mercy of
banks for financing. But big banks have complained that it often doesn’t
pay for them to spend time and resources administering a small loan.
The SBA’s new Small Loan Advantage incentive cuts the paperwork
burden. Larger banks that are already so-called “preferred” lenders can
make loans through its flagship 7(a) lending program up to $250,000,
and get them approved quickly by submitting a single-page credit
memo, according to Jonathan Swain, assistant administrator for the
SBA.
Loans submitted electronically “will be approved in minutes,”
according to the SBA. Other applications will be approved within
one business day. Some 630 banks are preferred lenders and have
the authority to approve loans independently. As with a normal 7(a)
program, the loans are guaranteed at 85% up to $150,000 and 75% over
$150,000.
A second initiative, called Community Advantage, aims to get SBA-
backed loans to underserved communities, such as minority-, women-,
and veteran-owned businesses, as well as firms in lower-income or rural
areas. The program encourages borrowers to develop a business plan
and work with advisors. Applications should be approved within 5 to 10
days.
Instead of banks, the three-year pilot program operates via alternative,
community-minded lenders like Community Development Fund
Institutions, nonprofit Certified Development companies and approved
micro-lending intermediaries. These organizations haven’t previously
been able to access government loans through the 7(a) program.
AMBA
“We are taking steps that will increase the number of places small
business owners in underserved communities can go to get loans,” said
SBA Administrator Karen Mills in a statement.
Both programs are expected to be up and running by March 15. o  choose. The advantages of an outright gift are they’re easy, they’re
Taken from the January 2011 issue of Stellar Journal.
The Need for Business Planning
By: Levin LaMont, The La Mont Group, President Advance
Planning and Investments
With the passage of the Tax Relief, Unemployment Insurance
Reauthorization and Job Creation Act in November of 2010, it
appears that at first glance the need for estate tax planning or business
succession planning for many may be a thing of the past. After all, an
individual can now pass to the next generation either during life or at
death $5,000,000 ($10,000,000 between husband and wife) to the next
generation; that is, if you gift or die within the next two years.
Does this mean that business owners should wait until 2013 to see
what will happen with the estate and gift taxes; absolutely not! And
most people will agree that planning to die in the next two years just to
reduce their estate and gift taxes is not a good plan. On the other had,
gifting $5,000,000/$10,000,000 might just be the perfect plan…..if done
the right way.
With the $5,000,000 gift exemption the government has furnished
us with for the next two years, there has never been a better time to
reposition assets. But remember, when a person makes a gift that person
LaserSales
AMBA www.amba.org
must look at the repercussions of doing so. Here are three ways of
repositioning assists along with the pros and cons of each.
Outright gift – Exactly as it sounds, an outright gift to anyone you
inexpensive, and the assets are removed from the estate with no chance
of future estate tax exposure. The disadvantages, the assets are now
subjected to the claims, judgments and possible divorces of the children,
you may have just given away control of the asset, if the asset produced
income that too has been gifted away, no leveraging of the gift and upon
your demise the asset will not receive a step-up in cost basis.
Grantor Retained Trust – A GRT is a trust created to move wealth to
children while compressing the value of the gift. GRT work well when
grantors wish to gift large assets (grater then ($5,000,000) and still
pay go gift taxes. The advantages of a GRT are the assets are removed
from the estate for estate tax planning, assets can be gifted to a Dynasty
Trust providing asset protection for multiple generations, great way to
leverage gifts, grantor retains rights to income, can receive a step up in
cost bases at death and income tax flexibility. Disadvantage, the Grantor
must outlive the length of the trust, trust is irrevocable (can be built with
lots of flexibility), no additional contributions can be made once the
trust is established.
Private Annuity – A Private Annuity is an unsecured promise from
one person (the obligor) to make fixed payments to another person
(the annuitant) for life in return for the transfer of property from the
annuitant to the obligor. The benefit of a private annuity are the assets
are removed from the estate for estate tax planning, assets can be sold
to a Dynasty Trust providing asset protection for multiple generations,
great way to leverage the sale of an assets, annuitant retains the right
Page 35 a
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34 www.amba.org AMBA

` Page 33
to income during their life, each payment received by the annuitant
is looked upon as part return of principle, part capital gain and part
income. Disadvantage, the annuity is irrevocable, seller my live longer
then anticipated, income generated off assets my not be sufficient to
make payments, note is unsecured.
During the next two years, the American people have the ability to
reposition a greater concentration of wealth than ever before. Listed
above are three ways one may wish to consider in order to meet certain
goals and desire. Which one works best for you is between you and
your advisor. What I do know, is nobody know what congress will do
with the estate and gift taxes after December 31, 2012. o
For more information contact: Kevin W. La Mont, ChFC, The La Mont
Group, Phone: 949.253.0480, 800.824.3911, kwlplanner@yahoo.com.  agreed. Following is a brief description of the four plans (of course,
Succession Planning/Estate
Planning/Lifetime Planning…Three
Natural Companions for Family
Business Owners
By: Irving L. Blackman of Estate Tax Secrets
Do you own (all or part of) a closely held business? Sooner or later
– like it or not – you must deal with what is commonly called the
“succession planning problems.” Hands down, the reason most readers
of this column call me is for help with their business succession plan.
Interesting, most callers do not have an estate plan or, if they do, the
plan is out of date. Let me say it loud and clear: There is no way to do a
succession plan right, unless it is part of a comprehensive (a tax-saving
strategy for every significant asset you own) estate plan.
But most readers are not even aware of their most valuable asset (often
called “lifetime equity growth” or LEG for short). LEG is your ability
to:
(a) earn income (of all types for the rest of your life) and
(b) the fact that the value of most of your assets (because of inflation
and/or simple increase in intrinsic worth) will grow over time.
Plain logic tells you that LEG is crying out for a lifetime tax plan.
Remember, you ain’t dead yet.
Also, remember, the estate tax can do no damage until you (you and
your spouse, if married) go to heaven. If you are a guy, life expectancy
is in the age 75 to 77 range… add three or four years for the ladies. As
you get older, the life expectancy tables move the age up: for example, a
70-year old male has 13 more years to live; an 80-year old, almost eight
more years.
Stop!... take a minute. Guesstimate your life expectancy. Write down
how many years your LEG probably will be increasing your taxable
wealth (and your potential estate tax liability). And that’s why you need
a lifetime plan (to keep your LEG in the family, instead of losing it to
the tax collector).
Following is an example of a typical reader (Joe) who called me asking
about a succession plan problem, that ultimately blossomed into the
three plans (succession/estate/lifetime) listed above. Here’s Joe’s story.
Joe (age 61) owns 100% of Success Co. (an S corporation). Joe and his
wife Mary (age 59) have three children. Only one of the children (Sam)
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works in the business. Joe called me with a simple question: “What’s
the best way to get Success Co. to Sam without getting beat up with
taxes?” After a short conversation Joe agreed to send me some written
information (about him, his family, Success Co. and his other assets).
Received the information. Reviewed it. Called Joe. Asked him some
questions. It soon became clear that Joe had three main goals:
(1) Avoid tax on the transfer of Success Co. to Sam;
(2) Treat the two non-business kids fairly; and
(3) create an estate plan that would get his wealth to his family (children
and grandchildren) without being reduced by the estate tax when Joe
and Mary die.
“Yes”, I told Joe, the above goals are doable, but only with the creation
of a lifetime plan, in addition to the other plans to be created. Joe
they all dovetailed) we created for Joe. (In the end, really only one
comprehensive plan.)
#1. The succession plan
The easy-to-do strategy is called an intentionally defective trust (IDT)
and will accomplish Joe’s goal – no tax to Joe when Success Co. is
transferred to Sam. A professional business valuation expert valued
Success Co. at $16 million, but because of discounts allowed by the
tax law, Success Co. was sold to the IDT for $9.6 million (for tax
purposes). Joe was able to keep control of Success Co. by retaining
the voting stock (100 shares) and selling the nonvoting stock (10,000
shares) to the IDT.
An IDT saves about $200,000 (in taxes for the buyer – here Sam – and the
seller – here Joe – combined) for each $1 million of the price (here $1.92
million taxes saved… 9.6 times $200,000).
#2. Plan to treat non-business kids fairly
Here’s Joe’s special problem: Joe does not want the two nonbusiness
kids in the business (a typical family business owner’s desire), yet he
wants to treat these two kids equally (to Sam). But here’s the killer
that none of Joe’s professionals could solve: Success Co. is worth $16
million (before discounts), but all of his other assets (two homes, 401(k)
plan, stock portfolio, the real estate Success Co. rents and some other
minor assets) only total about $6 million... too much ($16 million) for
Sam, but not enough other assets (only $6 million) for Sam’s siblings.
What to do?
The answer is simple: Make each of the three kids equal one-third
beneficiaries of the IDT. The trustee is instructed to keep the stock
until the last of Joe and Mary dies. Then, the properly drawn buy/
sell agreement kicks in. The IDT distributes the stock to the two
nonbusiness kids, and the stock is immediately redeemed (bought by
Success Co.) using the life insurance proceeds that funded the buy/sell
to pay for the stock. Note: If Joe dies first, the voting stock immediately
goes to Sam so he can continue to run Success Co.
#3. Estate plan
We updated the wills and trusts for Joe and Mary. Nothing fancy. Most
important was to make sure that all aspects of these new documents are
compatible with the three other plans.
#4. Lifetime plan
The heart of any estate plan is always the lifetime plan. Why? The
typical estate planning documents (really death documents) in #3 above
are essential, but they do nothing until you die. Sorry, but then it’s too
late to save estate taxes.
Page 36 a
35
 ` Page 35
Sure, life insurance only pays after death, but buying life insurance
is clearly a lifetime decision (typically when you and/or your spouse
are young enough and healthy enough to make the premium cost
acceptable).

The lifetime plan includes a wage continuation plan for Joe when he
can no longer work, as part of the plan to maintain Joe’s (and Mary’s)
lifestyle (for the time frame covered by life expectancy as discussed
earlier in this article… and maybe, we hope, for longer). We used other
tax-saving strategies: (a) a family limited partnership for the income
real estate and stock portfolio; (b) a qualified personal residence trust
for the two residences; (c) the 401(k) plan to help pay some of the
required insurance premiums; (d) created a new management company
to give special fringe benefits to Joe and Sam allowed by the tax law;
(e) and a lifetime gifting program to the kids and grandkids to reduce
the potential estate tax liability.

When all the plans were done, Joe was amazed at how quick and easy it
was to accomplish every one of his goals. Joe quipped, “I’m a LEG up
now.” One warning: all of the details of the above plans – and possible
tax traps if done wrong – are not given. Only work with competent and
experienced professionals. o

Want to learn more about this fascinating subject?...Browse my

website… www.taxsecretsofthewealthy.com There’s a ton of tax-
saving information. In a hurry or have a question, call me (Irv) at
847.674.5295.

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36 www.amba.org AMBA

Taken from the November 18, 2010 issue of the Gibson Insurance Client
Bulletin.
Change of Carriers Now Permitted
for Grandfathered Health Plans
Public comments forced regulators to amend the grandfathered status
rule under the health law, to allow employers with group health plans to
switch to health insurers that provide similar coverage at a lower cost
without losing their grandfathered status.
Officials at the Departments of Health and Human Services, Labor, and
Treasury issued an amendment to interim final rules on grandfathered
health plans under the Patient Protection and Affordable Care Act
(PPACA).
The Ammendment
The new amendment allows employers to provide the same level of
coverage through a new health plan carrier and keep their grandfathered
status. The coverage under the new insurer must not significantly
increase costs, reduce benefits levels, or violate other provisions within
the grandfathered-status regulations.
 
The amendment, however, only applies to insured group health plans.
A switch of health insurance carriers and change of policy in the
individual market would still result in the loss of grandfathered status.
Previously
Previously, plans could lose their grandfathered status if they
implemented plan designs that reduce benefits or increase costs to
members. In addition, an employer group health plan was labeled
non-grandfathered compliant if the employer switched from one
insurance company to another. Under PPACA, only self-funded
plans could change third-party administrators without giving up their
grandfathered status. 
Federal regulators estimate the amendment will result in a small
increase in the number of plans maintaining their grandfathered status
relative to the projections made in the grandfathering rules under
PPACA.
Public comments
According to DOL regulators, the amendment was made in response to
public comments concerned about the following:
• Before the amendment, self-insured plans could change
the company hired to handle the paperwork without losing
grandfathered status as long as the benefits and costs of the plan
stayed the same, while an employer that changed insurance
companies while maintaining the same benefits under their plan
could not do so. Under the amendment, all employers have the
flexibility to keep their grandfathered plan but change insurance
company or third-party administrator.
• If an employer has to stay with the same insurance company to
keep the benefits of having a grandfathered plan, the insurance
company has undue and unfair leverage in negotiating the price of
coverage renewals.
• There are circumstances where a group health plan may need to
AMBA www.amba.org
make administrative changes that don’t affect the benefits or costs
of a plan. For example, an insurer may stop offering coverage in
a market. Or a company may change hands. In those cases, the
employer can maintain grandfathered status for their employee’s
plan under this amendment. o
AMBA Members Save with Member Discount Programs!
The savings you receive as an AMBA Member are better than ever.
Members can save on a variety of services, including national and
regional LTL freight, small parcel shipping, and office products:
Freight
• Members receive a 70% discount on qualifying less-than-
truckload (LTL) shipments with YRC Transportation
• Members receive a 70% discount on qualifying less-
than-truckload (LTL) regional shipments with New Penn,
Holland, and Reddaway
Office products
• OfficeMax offers members up to a 50% savings on more
than 12,000 office products with convenient purchasing
options online, over the phone, or at your local OfficeMax
store
If you would like to take advantage of your member benefits or
you need more information, please call your association benefits
coordinator, Krista Appleton, at 800.647.3061, Ext. 6549.
Order Gold Plates for all Your
U.S. Built Molds!
We now offer two sizes of “Made in USA”
plates to put on all your U.S. built molds!
1-1/2” x 2” 3” X 4”
size for size for
$1 each $2 each
plus s/h plus s/h
MADE IN USA
The new updated AMBA logo and the words
“Made in USA” are imprinted on the plates.
Order your mold plates today, and highlight
your “Made in the USA” status!
Email AMBA at info@amba.org or call the
AMBA office to order your gold plates today!
37
EEOC Claims Set New Record
The number of workplace discrimination cases filed in 2010 with the
EEOC increased over 7% and amounted to almost 100,000 private
sector claims. All major categories increased, including retaliation
charges, which surpassed race as the most frequently filed charge. Other
charges included sex discrimination, disability, age, national origin,
religion, etc.
If you haven’t extended your Executive Protection Insurance coverage
to include Employment Practices Liability, please consider the fact that
no employer is immune from being accused of any of the above. o
Product Recall -
Should You Insure Against It?
The cost of a product recall claim can be significant, and studies
show that it usually is more than double the average product liability
claim. Unfortunately, those costs are excluded under General Liability
or Product Liability, and coverage can be expensive and difficult
to obtain. Expenses associated with recalling a product typically
include communication costs, expenses to remove and transport
products, disposal of the product, etc. Other expenses can be even
more significant and relate to loss of profit and expenses incurred
in rehabilitating the brand. Coverage forms can be quite limited and
written on an indemnification trigger, while others are broader and
provide coverage for expenses on a third party basis. A thorough review
of your exposures is necessary and involved, but certainly an integral
part of a risk management audit. o
Market Outlook 2011
At the end of the third quarter of 2010, most US Property & Casualty
carriers were anticipating continuing improvement in profitability over
2009, although much of that the result of a reversal in asset values.
Commercial insurance pricing continued to soften during 2010, but it is
probably fair to say that most of the premium reduction affected larger
accounts, leaving many small to mid-sized accounts with either flat
renewals or modest increases or decreases.
Record rainfall and flooding in Southern California, heavier than normal
snowfall in the Midwest, a blizzard in the Northeast and tornadoes
in the Midwest and South may very well have caused a dramatic
turnaround in the profit picture for 2010. While too much capacity is
still chasing too little premium, many industry experts feel that the soft
market and current pricing is simply unsustainable in the long run. At
the very least, the rate of decrease in commercial insurance pricing,
even on larger accounts, has slowed significantly and will continue
to during 2011. In addition, Moody’s Investors Service reports that
workers’ compensation insurers and reinsurers are operating in a risky
environment, based partially on economic hardships resulting in injured
workers returning to the work force more slowly. When one considers
continued increases in workers’ compensation claims severity and
combines that with concerns surrounding medical claims inflation, some
in the industry have described the workers’ compensation market as a
“ticking time bomb”.
Suffice it to say that until the fourth quarter results are in, no one can
accurately predict what will happen to the market in 2011. That said, it
is highly likely that some kind of hardening will take place with regard
to Workers’ Compensation pricing.
38 www.amba.org
On the Employee Benefits side of the industry, healthcare reform
continues to dominate the conversation. While there is a strong effort
in Congress to repeal the original bill, the more likely scenario will be
significant changes and compromises made. Many employers continue
to proceed with caution in an effort to minimize the long-term impact of
healthcare reform on plan changes being made now. Additionally, health
insurance carriers are looking for methods to comply with the newly
required medical loss ratios. One guarantee – many more changes to the
health insurance industry and healthcare system as we know it today. o
Tech Corner
Makino Offers F5-5XR
Vertical Machining Center
The F5-5XR vertical
machining center combines
the speed, precision and
flexibility required for tight
tolerance, five-axis, hard-
milling applications. Based
upon the F5, the F5-5XR
is an affordable five-axis
solution for complex,
die/mold, aerospace and
medical parts.
The F5-5XR offers the
same speed and precision
of the F5, but with the
added flexibility inherent
to five-axis machining
centers. Using simultaneous five-axis, “2+3 machining” or even simple
five-face machining techniques, the F5-5XR helps manufacturers reduce
part set-up and handling, cut lead-times, improve quality and lower
costs – while providing outstanding precision and fine finishes in very
demanding, complex, 3D contoured part applications.
The F5-5XR provides X-, Y- and Z-axis travels of 35.4 inches, 19.7
inches and 17.7 inches, respectively, the 39.4-inch-by-19.7-inch
machine work table provides ample room for the 5XR table and
workpiece arrangement as well as additional table space for a vice to
accommodate other non-five axis work and an optional laser Automatic
Tool Length Measurement (ATLM) system.
For more information visit: www.makino.com/machines/F5-5xr.
OEMs & Mold Purchasers Connect with Mold Shops!
AMBA’s OEMs and mold purchasers can access AMBA’s member
companies through AMBA’s Find a Moldmaker feature at www.
amba.org. U.S. mold shops can be searched by geographic
area, market penetration, quality processes, CAD/CAM systems,
mold type, etc. Handy web links get you connected to potential
customers! Find a Moldmaker is a useful resource to get
information on mold shops fast and easy. Visit www.amba.org and
click on “Find a Moldmaker!”
AMBA
 EXCLUSIVE 50% DISCOUNT
FOR AMBA MEMBERS

The Event for Moldmaking and Tooling,

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April 13-14, 2011

Exhibits and Conference
Stephens Center
Rosemont, IL USA

AMBA Members – this is YOUR

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AMBA
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Photos courtesy of Canon Virginia, Inc.

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ON CONFERENCE
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IN PARTNERSHIP WITH

AMBA amerimoldexpo.com
www.amba.org 39
DME Introduces Black and Gold increase the longevity of DME Black and Gold Interlocks so that they
Custom
provide positive alignment of mold plates much longer than interlocks
Interlocks for Shuttle Mold Base that are not surface treated. Components
Applications Precision Die & Mold-Ready Tooling
The shuttle mold base interlocks are completely interchangeable with
Top and side interlocks available in 10 different combinations in five one another. Instead of having to replace them in pairs as traditionally
size ranges required, processors can replace each independently, thanks to the
precision manufacturing and tolerances in place. 
DME Company has
expanded its already DME’s Black and Gold mold interlocks are known throughout the
extensive line of mold industry as “best-in-class.” The company’s stringent standards ensure
components with the a consistently high-quality product, while its global sourcing power
introduction of Black allows for economical pricing – 25% less than the competition.
and Gold Interlocks
for shuttle mold DME Company is an essential mold technologies resource to customers
base applications. worldwide. Visit www.dme.net for more information.
These long-lasting
interlocks ensure
accurate alignment
and guidance of the shuttle mold base plates during mold setup and
throughout mold operation.

DME offers 10 different combinations of top and side locks in five size Ship with YRC Transportation
CUSTOM COMPONENTS WITH EXACTING
ranges. The interlocks are available in sets with two female interlocks AMBA and YRC Transportation TOLERANCES
offer a deep & COMPLEX GEOMETRIES
on-bill discount for
and one male interlock or in sets with two male interlocks and one inbound & outbound LTLRotating
freight
Mold Cavitiesshipments.
· Strippers · Members
Gate Inserts · receive
Water-Cooled a
Cores
Cores · Syringe & Catheter Tooling · Ejector Sleeves
female interlock. 70% discount, and also receive 5%
Luer Taper Coreoff Sealed
Pins Divider,
· Ejector Pins & Blades10% off
· Punches
Die & Stripper Inserts · Die Blocks
Time Advantage and 10% offcapabilities
In-house Time include
Critical shipments!
CNC Wire To enroll
EDM, Conventional EDM, CNC
The male interlocks are treated with Melonite, a telluride mineral of
or learn more, contact Lathe
yourand Machining Centers, Jig Grinding, Centerless Grinding, OD/ID
association
Dedtru benefits
Grinding, Surface Grinding, coordinator at:
Honing, and Polishing.
nickel that provides longer wear and corrosion resistance. The female
interlocks are treated with Titanium Nitride, which hardens the surface 800.647.3061, or associations@yrcw.com or www.enrollhere.net
Ezell Precision Tool Co.
and provides resistance to wear. Together, these treatment processes 727-573-3575 Fax: 727-572-6235
mail@ezellprecision.com www.ezellprecision.com

Custom Standard
Components Components
Precision Die & Mold-Ready Tooling Core Pins • Ejectors • Sleeves • Blades

+.0005”
+.001”
+.002” &
+.005”
Diameters
from Stock
Representing
The Top Brands
In The Industry

CUSTOM COMPONENTS WITH EXACTING

TOLERANCES & COMPLEX GEOMETRIES
Call us when you need it now! THE ULTIMATE COMBINATION OF
Ph: 800-289-6387 or 909-923-3270 Mold Cavities · Strippers · Gate Inserts · Water-Cooled Cores
TOUGHNESS AND WEAR RESISTANCE
Fax: 800-621-0951 or 909-923-0152 Rotating Cores · Syringe & Catheter Tooling · Ejector Sleeves
Luer Taper Core Pins · Ejector Pins & Blades · Punches
Die & Stripper Inserts · Die Blocks FOR THE MOST DEMANDING PRECISION
In-house capabilities include CNC Wire EDM, Conventional EDM, CNC MOLDING APPLICATIONS
Lathe and Machining Centers, Jig Grinding, Centerless Grinding, OD/ID
Dedtru Grinding, Surface Grinding, Honing, and Polishing.

Ezell Precision Tool Co.

727-573-3575 Fax: 727-572-6235 800-760-5715
1057 E. Acacia St., Ontario, CA 91761
sales@daynesupply.com mail@ezellprecision.com www.ezellprecision.com ww.regalcomps.com

40 www.amba.org AMBA
Standard
Components
New Lifter Blades™ Traditional methods such as bluing agents do not work with the same
precision or resolution as Mold-Align®. Mold-Align® provides data
Expand Undercut Release Options quickly with no messy cleanup and significant time savings.
Mold designers now have even more options for achieving undercut Bluing agents, when applied to one half of the mold, will transfer to the
release with new Lifter Blades & Lifter Cores from Progressive other if there is any contact at the parting line, but will not distinguish
Components. between high and low pressures. Quality suffers and production time
may be lost due to improper troubleshooting of flash, shorts, burns, etc.

While Lifter Blades are a solution for very small details molded in
restricted spaces, Lifter Cores are a midsize solution for more common
applications.
Both Lifter Blades & Lifter Cores offer these benefits:
• Compactly designed to be utilized where other approaches cannot
be used
With Mold Align® the process is quick and simple. It is placed between
platens on the parting line which are then subjected to pressure upon
clamp closing using minimal clamp tonnage. It is then removed and the
image inspected for pressure distribution and void spots. Adjustments
if needed are then be made to the platens to achieve alignment, open
vents or repair mold damage. Properly mating parting lines and aligned
platens reduce machine wear and improve quality. Mold-Align® may be
archived and used as a control for comparative purposes.
For further information, or to receive a free sample contact Sensor
Products Inc. USA at 973.884.1755, email info@sensorprod.com or
visit www.sensorprod.com/mold-align.

• Provide parallel lift and a positional hold of the molded part prior to
release
NT Tool Introduces Runout-
• Straightforward to machine, easy to install and removable from the Adjustable Toolholders for
parting line
Large-Diameter Cutting Tools
• Patented Stop feature is included to prevent the Lifter Blade from
NT Tool has recently
being pushed back under injection pressure.
introduced the CTZ
Progressive’s Lifter Blades and Lifter Cores are a complement to an R-Zero runout-
already extensive line of undercut release solutions, including the adjustable toolholders
recently expanded line of FlexiCores and the exclusive UniLifter and for large diameter
VersaLifter. cutting tools. Utilizing
NT Tool’s original
Lifter Blades are available in four styles and eight sizes, beginning with four-point adjustment
an unmatched 1.8mm width, while Lifter Cores are available in sizes mechanism, runout
ranging from 6mm to 12mm. at the tool tip can be
easily adjusted to as
For more information, call Progressive at 800.269.6653, or visit www. little as 0 – 2µm on
procomps.com for complete details. cutting tools with shank
diameters from 25 –
42mm (or 1” – 1.5”).
New Product Mold-Align®
Unlike competitors’
Helps Ensure Economical Precise single-point adjustment
Mating at the Parting Line mechanisms, NT Tool’s original four-point adjustment mechanism
allows for quick and easy adjustment of cutting tool runout. By simply
Mold-Align® is a new tightening the four adjustment screws, cutting tool runout at the tool tip
tool from Sensor can be reduced to 0 – 2µm regardless of the maximum runout location.
Products Inc. (Madison
NJ USA) that helps CTZ R-Zero Toolholders are ideal for precision holemaking operations,
improve yields and especially large diameter reaming. The toolholders’ ability to minimize
reduce defects in the runout provides for excellent surface finish, improved cutting tool life
injection molding and consistent hole diameters. o
process. When placed
between mold halves, For more information on the CTZ R-Zero Toolholders or any other NT
it instantaneously Tool product, please contact NT USA Corporation at 615.771.1899, or
changes color to reveal visit their website at www.nttoolusa.com.
how pressure is being
distributed between the
A & B halves of the
mold.

AMBA www.amba.org 41
 Dates To Remember
Advertiser’s Index
AMBA EVENTS
2011 Convention - “Accelerate your Profitability” A. Finkl & Sons Co........................................... 29
March 2-6, Las Vegas www.finkl.com
2011 Annual Convention Combines Top-Notch Speakers with Las Vegas and
NASCAR. The AMBA is off to the races!! If you’re a mold manufacturer in the Alliance Laser Sales.......................................... 33
USA, then you need to attend the AMBA Annual Convention, March 2-6 at the
Red Rock Resort and Spa in Las Vegas, Nevada. We want you to “Accelerate www.alliancelasersales.com
Your Profitability,” Speed up your high-speed machine tool technology, learn
Winning business practices, through a series of presentations that will help you Alliance Specialties........................................... 28
do just that! www.alliancespecialties.com
AMBA Webinar - Quality System Registration
February 23, 2011, 12 Noon – 1pm CT amerimold™...................................................... 39
Members - $25, Non Members - $50 www.amerimoldexpo.com
Visit the AMBA event calendar for more information, and to register.
AMBA Webinar - IML/IMD Doing More in a Mold Than Just Molding Parts
Crystallume Engineered Diamond.................... 7
March 23, 2011, 12 Noon – 1pm CT www.crystallume.com
Members - $25, Non Members - $50
Visit the AMBA event calendar for more information, and to register. DME Company................................................... 9
www.dme.net
INDUSTRY EVENTS D.W. Sales......................................................... 34
Texas Design 2 Part Show
February 23 – 24 – Grapevine, TX Duro-Chrome Industries ................................ 23
An event designed to connect American contract manufacturers with OEM’s and www.duro-chrome.com
engineers who need their services.
International Home & House Show Edro Specialty Steels, Inc. ............................... 20
March 6-8 - Chicago, IL www.edro.com
The International Home & Housewares Show offers you the opportunity to see
first-hand consumer lifestyle and product trends for all areas of the home, both
inside and out, under one roof.
Ellwood Specialty Steel.................................... 44
www.ess.elwd.com
Plastics News Executive Forum 2011
March 6 - 9 - Summerlin, Nevada Erowa Technology, Inc..................................... 36
Join top-level executives from plastics processing companies, their customers
and suppliers at this must-attend conference for positioning your company at the www.erowatech.com
forefront of the industry.
Ezell Precision Tool.......................................... 40
Molding 2011
March 7-9 - San Diego, CA
www.ezellprecision.com
The 21st International Conference & Exhibit Molding 2011 will focus on
important innovations in manufacturing technologies. Industry leaders will First American Payment Systems................... 14
present the latest developments in various injection molding processes, hardware www.first-american.net/
and controls. Additionally, issues and opportunities of medical molding, energy
management, and ‘green molding’ be discussed. The Gund Company . ....................................... 20
massPLASTICS 2011 www.thegundcompany.com/
March 15-16 - Fitchburg, MA
The massPLASTICS Trade Show attracts more than two hundred companies and Haas Automation, Inc...................................... 24
more than four thousand professionals for two days of discussion, exhibits and www.HaasCNC.com
seminars on manfacturing, new technologies and innovative applications for the
plastics industry.
Incoe Corporation............................................ 30
A two-day event, the massPLASTICS Trade Show is the Northeast’s largest www.incoe.com
tradeshow for the industry, providing a forum and exhibit space for companies in
the plastics and related industries. JEM Enterprise, Inc........................................... 7
PLASTEC South www.jement.com
March 16-17 - Orlando, FL
Please see conference website for details. Makino.............................................................. 43
Amerimold www.makino.com
April 13-14, 2011 - Rosemont, IL
amerimold is a one-of-a-kind event where mold manufacturers, manufacturing Millstar LLC...................................................... 10
engineers, industrial designers, design engineers, product managers, purchasing
personnel, and corporate executives from all major industries get together to
www.millstar.com
discover and share the latest and best in product development and moldmaking.
Osco, Inc. ......................................................... 27
PLASTEC East / MD&M East www.oscosystems.com/
June 7-9 - New York, NY
PLASTEC East is your answer for the latest in plastics processing solutions. The
show showcases the latest advances in primary processing machinery, computer-
Progressive Components................................... 2
aided design and manufacturing, production machinery, materials, molds, and www.procomps.com
mold components, automationw technology, materials handling/ logistics, a full
range of contract service providers, and much more. Rocklin Manufacturing Co. . ........................... 15
Pack Expo Las Vegas 2011 www.rocklinmanufacturingco.com/
September 26-28 - Las Vegas, NV
Please see show website for more details. Ultra Polishing.................................................. 27
EuroMold 2011 www.ultrapolishing.com
November 30-December 3 - Frankfurt / Main, Germany
World Fair for Moldmaking and Tooling, Design and Application Development. Wisconsin Engraving Co., Inc. / Unitex.......... 36
www.wi-engraving.com

42 www.amba.org AMBA
AMBA www.amba.org 43
American Mold Builders Association PRSRT
U.S. Postage
P.O. Box 404
PAID
Medinah, IL 60157-0404 Medinah, IL
(Change Service Requested) Permit No. 20

Ready when you are…

The specialty steel industry is not as big as some
may think. In reality, buyers only have 2 choices
when it comes to specialty steel suppliers in
North America.
One supplier is posing as three separate compa-
nies, but operates as a joined enterprise. And the
other is a bit more nimble.
Ellwood Specialty Steel is the number-one choice
for fast service and faster delivery, on the day
promised or earlier. Whether you need a quote or
have a question, ESS stands ready to meet and
exceed expectations, every time.
For more information on how to avoid the 3-headed
enterprise or to get a fair and independent quote,
please visit http://nostrings.elwd.com

NO STRINGS ATTACHED.
Ellwood Specialty Steel - Ready and Reliable.

United States Canada

Ellwood Specialty Steel Ellwood Specialty Metals
800-932-2188 877-978-2772
esssales@elwd.com esmsales@elwd.com T O O L S T E E L P R O D U C T S

USA★
MADE IN THE

44 www.amba.org AMBA