Tooling

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Tooling Manufacturing Association
Founded in 1925 by 8 tool die cos. Chicago
area association of 1,330 cos. Advocacy,
Community, Information, Employee Benefits,
Education, Group Purchasing Business
Services You can find TMA and our membership at
www.tmanet.com or just put tooling into Google
and we come up one of 1.6 million (until they
change their algorithm).
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Well be discussing . . .

• What TMA members do
• Import penetration of metal components, dies,
  and molds
• How small and medium size manufacturers view
  global trade
• Issues impacting small manufacturers

ownership costs pricing
workforce productivity marketing
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Heres what TMA members do?
Means of production tools, dies, molds, jigs,
fixtures, automation equipment Intermediate
inputs components made of metal and plastic and
subassemblies Value-added services Design,
engineering, prototyping, product
development Related services heat treating,
plating, engraving Customers Sell directly to
OEMs or tier one or two suppliers to OEMs. Sell
to companies larger than themselves. Key links
in the domestic and global supply chains.
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NAICS3321 Forging Stamping2001
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NAICS 333514Special Die/Tool,Die Set
Fixturing Mfg.2001
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NAICS 333511Industrial MoldMfg. 2001
60 of imports from Canada, but China growing
rapidly.
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Component suppliers feel underappreciated
The economy is becoming increasingly conceptual.
I think thats good, not bad, for the economy as
a whole. But if youre a maker of stuff, it
isnt good. Fed Chairman testifying at a
July 2003 Senate hearing.  . . . firms benefit
from falling prices on intermediate components
and parts, . . .   Quoted from Midwest
manufacturing and trade with China from the
November 2003 Chicago Fed Letter
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Who moved my cheese?
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Just Kidding
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Free but Fair
Free Republicans NAM Larger multinationals Academi
c community and the Fed
Fair Democrats Labor Smaller Manufacturers Single
issue fair trade groups
Playing Field
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Free but Fair
Free Republicans NAM Larger multinationals Academi
c community and the Fed
Fair Democrats Labor Smaller Manufacturers Single
issue fair trade groups
Playing Field
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Free but Fair
Free Republicans NAM Larger multinationals Academi
c community and the Fed
Fair Democrats Labor Smaller Manufacturers Single
issue fair trade groups
Playing Field
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Metalworking Manufacturing Coalition
Industrial Fasteners Institute Forging Industry
Association Metals Service Center
Institute National Tooling Machining
Association Non-Ferrous Founders
Society Precision Machined Parts
Association Precision Metalforming
Association Spring Manufacturers
Association Steel Founders Society of
America Tooling Manufacturing Association
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Which path is most critical?Both important One
essential
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Excellent Very Good Good Fair Bad
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Contract Mfg. ownership
Value is in owner and his relationships. Sell
design and production capability, not product.
Owner/operators take long term view. Succession
planning. Some sell to familyor employees.
Some sell to competitorsor customers. Without a
succession plan why invest? Should I invest in my
business or in my retirement account? Access to
capital an issue. Banks are tough.
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Difficult to control costs
Tariffs lifted. Steel prices up 30 to 60
shortages looming. Due to weaker , transport
cost, Chinese demand. Material 5 to 60 of sale
price. Strong supplier (not just customer)
relationships. Double digit increases in
healthcare. HSA AHP. Product liability
insurance. Was mainly problem with aerospace.
Now also automotive and medical. Underlying
issue is tort reform.
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Squeeze on margins
Breakeven on the first run. Squeeze out cost and
make money on the second run. That doesnt work
for one shot tooling or automation equipment
jobs. Used to be Price, Delivery, Quality pick
two. Now its China Prices, Today, Perfect.
Throw in FREE design and engineering services.
And if material costs go up, absorb it.
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Workforce
I dont want to run three machines! How does
this thing work? Sensor groups. Manufacturing
technology programs at risk. If I train them they
leave. The changing face of apprentice
programs. Life long learning moving up the
value chain. Fewer, but better people.
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Multiple CAD Systems
40 person Pro Mold Die in Roselle operates with
seven CAD systems UNIGRAGHICS PRO-E CIMATRON CADK
EY FastSURF SMART CAM SOLIDVIEW
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Productivity IMTS 9/8-15
Machines that cost 50,000 to 2,000,000 or
more. Automation. High-speed (30,000 rpm).
Pallets. Program and set-up in day to make parts
overnight. Automatic tool changers. Rapid
set-ups.Flexible Cells. In die or in mold
assembly. Lean manufacturing 5s.(Sort, Set In
Order, Shine, Standardize, Sustain) Reduce
secondary operationsand human intervention.
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Marketing strategies
Diversify customer base and diversify
process. Brand the process or special tooling or
equipment. Develop niche. Do no way in hell
jobs and earn better margins. Move up the
complexity curve. Form strategic alliances with
U.S. or foreign partners.
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Component suppliers look for opportunities to
make
Subassemblies, not just discreetparts move up
value chain. If not subassemblies, kits of parts
that go into a subassembly. Parts coupled with
valued-added services like design engineering.
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Some marketing examples
Chicago area metal stamper selling to Japanese
Tier 1 in Mexico. A machining company has a
strategy for producing orphan products. Diversif
ied 100 person company provides product
development service, designs in Ukraine, build
molds in-house and also acts as an agent for
overseas mold source. Addison, IL stamper makes
parts for Motorola worldwide in Addison, in
Mexico, and in China. Strategic global supplier.
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Target industries likely toremain strong in
North America
Electronics Health Medical Hydraulics/Pneumatics
Industrial/Consumer Hardware Instrumentation Pack
aging Telecommunications Truck
Aerospace Agriculture/Off-highway Appliance/Home
Products Automation Automotive Computer/Business
Machines Defense/Ordinance
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Target industries in theU.S. with products that
Are highly engineered complex electro-mechanical
devises. Are produced with capital intensive
highly automated processes and skilled labor. Are
assembled from high value components Have unique
technologically advanced applications. Require
extremely tight tolerancesand/or advanced
materials.
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Target industries in theU.S. with products that

Require considerable service support and
maintenance Are heavy and/or difficult and
expensive to ship. Are industrial or commercial,
not consumer. Are short lived, rapidly obsolete,
or for one time use. (packaging, medical) Are
frequently changed and revised
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Target industries in theU.S. with products that
Depend on short run production and JIT
shipments. Are demanded in both domestic and
export markets get involved in a global supply
chain Are demanded in U.S. for security reasons
-- defense, homeland security, NASA, etc. Require
complex communications among engineers and
project managers.
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NAICS 3391Medical Equipment Supplies Mfg.2001
Percent Change from 1997 to 2001 in 1997 dollars
was plus 18.9.
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The Hedgehog ConceptFrom Good to Great
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How to reach TMA . . .
Bruce Braker, President Tooling Manufacturing
Association 1177 S. Dee Road Park Ridge, IL
60068 Phone [phone] Fax [phone] Web
site www.tmanet.com E-mail bbraker_at_tmanet.com