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Spring 2014
Measuring Steel Hardness
Filling the Automotive Tool Capacity Gap
AMBA Conference, May 14-16
The Official Publication of the American Mold Builders Association
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contents
Spring 2014
32
28
On the Cover:
Finished mold steel blocks
waiting to be shipped from
the Industeel mill located in
Chateauneuf, France.
14
FEATURES
6 Trends
Manufacturing and the American
Economy
10
Technology
Measuring Steel Hardness –
Guidelines to Ensure Time and
Cost Efficiencies
High-Speed Machining Mills –
5 Questions to Ask before You Buy
20
Special Report
Can the Automotive Industry
Close the Future Tooling
Capacity Gap?
DEPARTMENTS
32
Focus
34
Show Preview
38
Strategies
Designing for Manufacturability
Amerimold 2014
Tax Breaking the Mold: R&D
Tax Credits for Mold Builders
4
17
28
36
45
46
Speak Out
Product
Association
Industry
Calendar
Ad Index
Visit our website:
WWW.AMBA.ORG
www.amba.org
3
Speak Out
How can you measure the value that the AMBA
provides its members? American mold builders are
unique, which makes the association that serves the
industry a challenging and exciting endeavor. If you
start by thinking about the problems the typical mold
shop faces that are different from most manufacturing
companies, the value proposition becomes clearer.
American Mold Builders Association
3601 Algonquin Rd., Suite 304
Rolling Meadows, IL 60008
p 847.222.9402 • f 847.222.9437
info@amba.org • www.amba.org
Most AMBA members struggle with ups and downs in
Todd Finley
workload. Our ability to plan the business more than
AMBA
President
four to six months out is difficult because most of us
live from job to job, and with that comes uncertainty. At Commercial Tool,
I call it our 12-week rolling business plan, and try as we might, we never
know what’s around the next corner. When talking to people who run other
manufacturing businesses or professionals who serve our industry (like
bankers, accountants and attorneys), they have a difficult time understanding how mold builders can function in such an uncertain environment.
Officers and Board of Directors
President
Todd Finley, Commercial Tool & Die
For example, most manufacturing companies can leverage long-term
contracts for their product to gain financing for capital equipment purchases,
plant expansions and growth. Most mold building companies don’t have
that option because we rarely get contracts for more than the next job. The
decision to grow, buy equipment or expand the plant requires the owners to
take a tremendous risk and a leap of faith. While a mold builder might be
able to measure his backlog four to six months into the future, the average
machine tool delivery time can be 10 to 18 months and can require a significant down payment. This is just one of the many unique dilemmas our
members face daily. In addition, we require highly skilled employees that
our education system is not capable of providing, so we have to solve that
problem to be successful. American mold builders have some of the highest
tax rates and compliance costs on the planet, yet we are required to be
globally competitive. In the automotive industry, payment terms can be 12
to 24 months after the work is complete, which creates a significant cashflow problem. The list of unique challenges we face goes on and on.
Board of Directors
Mike Armbrust, Mako Mold Corp.
David Bowers II, JMMS, Inc.
Toby Bral, MSI Mold Builders
Robert Earnhardt, Superior Tooling
Shawn McGrew, Prodigy Mold & Tool
Justin McPhee, Mold Craft
Paul Novak, South Coast Mold
Tim Peterson, Industrial Molds Group
Scott Phipps, United Tool & Mold
Jim Sperber, Master Tool & Mold
Mike Walter, MET Plastics
Back to the original question: How can you measure the value the AMBA
provides? What it really comes down to is this: We get it. The AMBA only
serves mold builders, so our entire focus is on providing value to mold
builders. The amount of value you get with your membership is really up
to you because when you participate, you gain so much more. I know it is
difficult to make the time to leave the shop and attend the annual conference
or a plant tour workshop, fill out the survey, take the pilot test or attend a
webinar, but that is where you get the most value. I tell anyone that wants to
listen that I am a better leader and run a better business as a result of being
an active AMBA member. Period.
This is my last column as president of the AMBA, and I want to thank the
Board of Directors for the opportunity to serve it and the AMBA membership – the American mold builders!
Todd Finley, Commercial Tool & Die, Inc.
4
The American Mold Builder
Published by the
the american MOLD BUILDER
spring 2014
Vice President and Treasurer
Michael Bohning, Creative Blow Mold Tooling
Secretary and Legal Counsel
Alan Rothenbuecher, Ice Miller LLP
AMBA Team
Troy Nix, Executive Director
Kym Conis, Managing Director
Susan Denzio, Business Manager
Managing Editor: Kym Conis
Contributing Editor: Dianna Brodine
Art Director: Cara Pederson
Advertising/Sales: Susan Denzio
Opinions expressed in this publication may or may
not reflect the views of the Association and do not
necessarily represent official positions or policies
of the Association or its members.
Trends
Manufacturing and the
American Economy
By Scott Paul, Alliance for American Manufacturing
Remember the headlines last summer? Motor City Goes
Bust. Record Bankruptcy for Detroit. Last July, the city of
Detroit went bankrupt. The news coverage focused on the
role of spending, mismanagement and pension costs in this
stunning collapse.
But beneath the headlines, a larger truth was ignored:
the bankruptcy of Detroit was an American tragedy and
an entirely preventable one. The downward spiral began
decades ago when deindustrialization led to depopulation, crime and declining public revenues. Corruption and
mismanagement may have exacerbated the problem, but
they weren’t the root cause.
The gravest mistake we can
make today is to believe
that Detroit is an anomaly. It
isn’t. The economic threats
that brought down Detroit are
present in other great American
cities. The question is: Will we
learn our lesson and prevent
future harm elsewhere?
Deindustrialization – in Detroit
or elsewhere – is neither desirable nor inevitable. But as
any physician will tell you, an
ounce of prevention is worth a
pound of cure.
future harm elsewhere?
Nations with a manufacturing strategy have a greater percentage of their economy and employment in industry than we do
in America today. In many cases, our competitors now have
a stable or growing middle class and fewer budget challenges
than our own cities, states and federal government.
the american MOLD BUILDER
As I point out in our book, ReMaking America, the idea
that deindustrialization in America is nothing to worry
about has been conventional wisdom for several decades.
Thought leaders often tell us why we should be so lucky
that America can just design while leaving it to the developing world to produce.
But they ignore vital examples like the high-wage German
economy with its sizable manufacturing sector. They
say cheap imports are great for our economy, a slogan
that ignores the fact that the
consumer’s buying power is
limited, even at Wal-Mart,
when one can’t find a job. We
The economic threats that
hear that outsourcing is a good
thing, which fails to take into
brought down Detroit are
account that a day may come
when America can’t supply
present in other great
its own troops. And we’re told
American cities. The
that trade deficits don’t matter,
except that they, too, have to be
question is: Will we learn
financed somehow and that this
obligation has cost the middle
our lesson and prevent
class its jobs and wealth.
I believe that same maxim applies to economies. With
smart public policies, cities, states and nations can maintain
diverse, sustainable economies that may bend with the
business cycle but will never break.
6
What do they know that we don’t? Manufacturing matters.
spring 2014
Clearly, the conventional
wisdom has not served the
people of Detroit, or any city
in America for that matter,
very well at all. And it has been widely ignored by our
competitors – both the high-road models (Germany) and
the more mercantilist versions (Japan and China).
But is it too late for Detroit? And what of the other cities
teetering on the brink? Or of America’s fiscal imbalances?
If our leaders take certain lessons to heart – and voters
demand this change – we can adopt policies that will grow
exports, rebuild the middle class and put us on a path to a
better fiscal position.
Here are a few policy changes.
1. Cut the trade deficit in goods in half over the next three
years. This means more exports and fewer subsidized
imports from China and Japan that dislocate workers in
cities like Detroit. It does us little good to double exports,
as President Obama stumped for during his re-election
campaign, if imports are rising at an even greater rate.
2. Restore the balance of power between the industrial
park and Wall Street. Financial deregulation in the late
1990s made the financial sector the master of manufacturing. That, along with the creation of CDOs and other
get-rich-quick “innovations,” was a huge mistake. Ensure
that our small- and mid-sized manufacturers have access to
affordable, patient capital.
3. Rebuild the connection between innovation and production. Our tax dollars fund research that helps create amazing
products – products that are made overseas and sold back
to us. We should insist that federally supported R&D is
channeled into the design, engineering and production of
goods in America. Congress should fund the $1 billion
proposed by the Obama Administration to create a network
of national innovation institutes.
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4. Adopt policies to boost demand. That means infrastructure investment and tax policies geared towards higher
levels of production and consumption of domestic goods.
Even with automation and productivity, higher demand
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5. Scrap the “strong dollar” policy that helps US businessmen find cheaper hotel rooms overseas in favor of a
competitively valued dollar that will boost our exports.
page 8 u
Member
www.amba.org
7
Trends
t page 7
The Institute for International Economics estimates that the
dollar is overvalued, while China’s and Japan’s currencies
are undervalued. We should insist those governments end
policies that deliberately lower the value of their currencies.
6. Adopt smart energy policies that will position the United
States as the global leader in renewable energy equipment
manufacturing and boost our emerging energy cost advantage. Developing domestic natural gas and oil is a great thing,
but exporting loads of domestic natural gas to countries that
subsidize their own industries makes little sense.
7. Encourage small-scale manufacturers to embrace “urban
manufacturing,” the “cloud” and additive manufacturing. This will localize manufacturing, reduce imports and
establish a new generation of makers.
8. Rebuild our system of vocational education. Creating a
seamless system of training from high school to community college and on to the factory floor for a new generation
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the american MOLD BUILDER
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spring 2014
of manufacturing workers will boost American manufacturing’s competitiveness and provide a viable career path
for millions of Americans.
Make no mistake: This isn’t about rebuilding manufacturing the way it was in America, but rather about how we can
restore American manufacturing leadership in this century.
We need to get smart. With the right policies – including
those above, which are outlined in great detail in ReMaking
America – manufacturing can see a new dawn in Detroit
and all across America. We can see renewed wealth and
growth opportunities necessary to keep the American
dream alive. And we’ll certainly see fewer headlines like
we had in Detroit. 
Scott Paul is president of the Alliance for American
Manufacturing. You can follow Scott Paul on Twitter at
www.twitter.com/ScottPaulAAM.
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9
Technology
Measuring Steel Hardness –
Guidelines to Ensure Time and Cost
Efficiencies
By Rob Esling, Industeel USA, a Division of ArcelorMittal
Recently, I received a phone call from a customer regarding hardness issue concerns on three blocks measuring
approximately 6x20x40" of our enhanced P20 steel product
SP300 (SP P-20). This is a lower carbon content premium
grade known for its increased hardness (30-34 Rc) over
standard P-20 grades (28-32 Rc). The application was
for three Class A interior injection-molded trim components and was at tooling kickoff intended to be a standard
polished surface finish suitable for graining. The tools were
four cavities each and the parts were of relatively shallow
depth between 2" to 3", with minimal actions.
Upon receipt of this information, all corresponding paperwork was obtained. Original mill certifications, heat lot
information, chemistry analysis and mother plate hardness
readings all showed the material was well within mill
specifications for this type of product.
A meeting and visit that same day were arranged to review
the concerns of the end user and were held on the shop floor
where hardness readings were labeled on various areas of
the blocks in question. Readings showed random hardness
values ranging from 22 to 30 Rc with no particular pattern.
The tools in question were vibration stress-relieved; hence,
tools were not subject to stress relief temperatures, nor to
any kind of heat process, including welding. This information provided was very perplexing and required some
additional investigation to try and understand the nature of
the customer’s concerns.
After a review with the sub-contractors involved in the
hardness and polishing processes, it was determined that
the initial hardness readings were done erroneously and a
second hardness reading was taken after the recommended
conditions noted below were met, proving the material was,
in fact, well within the manufacturing specifications.
Looking back at this situation, there are a couple of
solutions that would help ensure better performance in
the mold building process when dealing with sub-contractors and when clarifying and communicating specifics.
10
the american MOLD BUILDER
spring 2014
This, in the long run, will ensure better quality by all
parties concerned, reduce additional costs and program
timing, avoid finger pointing as to the nature of the cause,
reduce time and expense of the individuals involved and, of
course, identify which party is responsible to pick up those
additional costs.
Measuring hardness
In the previous example, it was determined that hardness
measurements were not taken in accordance with recommended procedures. In summary,
1)The surface quality of the tested areas was contaminated with cutting fluids and protectants;
2)The surface finish was not smooth enough to ensure
an adequate readout;
3) The reading was not done by a qualified individual; and
4) The date of the last calibration could not be confirmed.
The use of handheld ball-type portable devices has
grown over the years, as they are affordable, relatively easy
to use and can provide a quick indication of the relative
hardness of the base material according to the manufacturers, provided the following conditions are met:
5) The surface must be smooth enough to allow the device
to contact a flat area free of cutter marks and cusps, etc.;
6)The area of contact must be free on any type of
contaminants;
7)It is advisable to calibrate the device daily, or prior to
use and adjust accordingly; and
8)The individual performing the operation should be
trained and experienced.
With these conditions met, the chances of obtaining a
reading within a general range will improve greatly. It
is important to note, however, that these devices, while
providing a semi-accurate reading, are not the same as
using a more exact device. Studies done in our R&D center
show that the variance can range from 3-5 Rc or more,
depending on the inadequacies noted above.
page 12 u
Technology
16215.1 Bas
t page 10
If an end user has concerns regarding the hardness of
the material in question, the following recommendations
should be undertaken:
9) Send inquiries to the service center, distributor or
mill, referencing the certification of that particular
heat lot and asking for proof of chemistry, hardness,
specs and results; and
10)Obtain a reading from the same or from a qualified
testing source.
Other factors influencing steel hardness are the chemical composition of the particular grade(s), which are too
numerous to contain in this article; however, the addition
of alloys, along with carbon and iron, can have an effect
on the overall goal of achieving uniform hardness and
homogeneity (Figure 1). This consistent hardness control
can have beneficial effects for moldmakers in machining,
drilling, polishing, welding and graining, as it reduces or
eliminates variation in all of these operations.
Angle
1/4 Largeur
Axe
1/4
Angle
-50mm
294
301
305
304
294
1/4 ep
291
302
301
300
290
1/2 ep
299
301
303
304
300
1/4 ep
294
300
304
298
294
-50 mm
313
313
309
314
306
Figure 1 – Hardness homologation of low carbon steels
Typically, the thicker the blocks, the more variation can be
expected as a result of the processing and cooling of the
master ingots (Figure 2). One must remember that major
mills typically are producing ladle heats ranging from 40
to 100 tons per lot, while ensuring that some of the alloys or
elements are kept in ranges as low as one part per million –
not an easy task and one that requires exact testing, process
and quality control.
Steel identification for sub-contracting services
When utilizing sub-contractors within the mold building process, i.e., heat treating or stress relieving, polishing
and graining, one of the most common complaints I have
heard over the years from some of the leading shops in the
Midwest performing these tasks is the lack of identification
of the grades sent for processing. Typically, shops will refer
to the product by its generic name: P-20, P-20HH, H13, etc.
Because of the vast amount of different steels these shops
process as part of their operations, what should be an easy
task sometimes can lead to errors in processing. This will
usually lead to a loss of hardness and less than acceptable
results for color match and gloss in welding, creating a situation that will have cost and timing impacts on tool shops,
contracted service providers and the customer. The other
aspect of this event is that it usually leads to a confrontation over who will pay for the services required to correct
the problem and possibly the cost of compression timing to
maintain program timing.
Over the years, the shops performing these services virtually
have come across every grade produced, from high-quality
steel mills to steels produced from low-cost countries due
to outsourcing. In our case, we work closely with some of
the leaders in these fields, keeping them advised of specific
chemistries for different steel grades, the recommended heat
treat and stress relief temperatures and preferred wire rods
for welding that closely match the original chemistry of the
12
the american MOLD BUILDER
spring 2014
Hardness Uniformity
Hardness (HB)
360
340
grade, product designation or AISI number, you
may be able to avoid costly errors and ensure
better success for yourself and your customers.
320
300
Typical curve of P20 HH
280
Plate thickness (inches)
Thickness = 23.2’’
Figure 2 – Comparison of low / high carbon grades.
base material. Samples also are furnished routinely for newly developed grades to allow these contractors to gain an understanding and
feel for the material so that they can develop their knowledge and
processes.
It should be easy and routine to identify the material to be processed
on a purchase order. By identifying the manufacturer, type of steel
Rob Esling is the North American sales and
marketing manager, mold and tool steels, for
Industeel USA, a wholly-owned subsidiary of
ArcelorMittal group, the world’s number one steel
group and the only truly global steelmaker. Industeel is the leader in special markets for alloyed
plates, including oil and gas, nuclear, cryogenic
and specialized distribution markets like steels for
plastic molds (Superplast® range). As a leading
specialty plate producer, Industeel puts innovation
at the heart of its business through its own R&D
department based in Le Creusot (France). Product
and application innovation is assured by proximity to its global customer base via a dedicated
worldwide sales network. For more information,
visit www.industeel.info. 
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13
Technology
High-Speed Machining Mills –
5 Questions to Ask before You Buy
By Maggie Smith and Mike Cope, Hurco Companies, Inc.
With a high-speed machining (HSM) mill, what’s “under
the hood” is critical. If a machine tool builder offers an
HSM option that can be added to a regular mill, the red
flags should start waving because HSM is more than just
a faster spindle.
The entire machining center must be designed to adapt
to the rigors of HSM. Thermal compensation, positional
feedback, rigidity and motion control are all important
aspects of the machine tool that need to be evaluated. The
following five questions will help guide you during the
purchase decision.
1.
How are your HSM mills different from your
regular CNC mills?
The obvious difference is a faster spindle, but it goes deeper
than that. With a faster spindle comes faster feedrates.
Faster speeds lead to friction heat, which can compromise
accuracy and repeatability. Therefore, the ballscrews and
linear guideways should be larger. Each of the axis motors
should be directly coupled to the ballscrews to provide a
quicker response to changing directions.
Additionally, the machine tool must have a robust motor
control system with adequate look-ahead to handle the
complex toolpaths generated for HSM. Instead of a beltdriven spindle that generates excessive heat at faster speeds,
an HSM mill should use a motorized spindle.
2.
How do your HSM mills handle thermal growth?
The build-up of friction heat is a major problem caused
by HSM. Everything is moving faster and spinning faster,
which causes more heat. The way the control handles this
heat’s impact on the positional feedback of the axes is very
important. For example, because of ballscrew growth, using
a motor encoder may not be sufficient to provide positional
feedback for some applications because it only monitors
the number of revolutions the motor has made. Therefore,
linear glass scales that monitor the actual position of the
table might be necessary.
Some builders offer chilled ballscrews that have thermal
compensation sensors mounted on the machine’s base
casting to monitor the temperature and instruct the control
to compensate accordingly. Obviously, the more elaborate
the thermal compensation system, the more cost you add to
the machine. The level of sophistication you need depends
on your applications.
High Speed Machining (HSM) is more than just a faster spindle.
The entire machining center must be designed to adapt to the
rigors of HSM.
14
the american MOLD BUILDER
spring 2014
3.
What practices have you implemented to increase
rigidity and ensure accuracy?
As mentioned before, the entire machine must be engineered
for HSM – and that begins with a strong foundation. A
heavy, well-designed casting is a must. However, simply
adding weight just to add weight isn’t good either. Make
sure the builder uses processing software, such as FEA
(Finite Element Analysis). This type of software tells the
builder how and where to add weight in order to reach the
optimum balance between strength and agility. A highspeed machining center must be agile enough and responsive enough to handle the HSM process, but rigid enough
to deliver accuracy, repeatability and high-quality surface
finishes. Most builders use some type of static FEA, but
dynamic FEA provides an additional layer of information
to ensure the machine is optimally designed for HSM.
It is important to ask the sales engineer how well the
control is equipped to process the large part programs
that CAD/CAM software generates for HSM toolpaths.
Anz KH_3_25x4_375_America_Layout 1 09.04.14 11:45 Seite 1
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page 16 u
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15
Technology
t page 15
4.
How does the control handle the required look-ahead
and complex toolpaths of HSM?
The toolpaths that CAD/CAM systems generate for HSM
are much different than traditional toolpaths. For example,
HSM toolpaths don’t have sharp corners and the depth
of cut, feedrates and RPM are increased dramatically.
Therefore, HSM programs are usually very large files. It’s
important to make sure the control has the specifications
to handle these large programs and process them quickly.
5.
Maggie Smith, media relations manager for Hurco
Companies, Inc., wrote this article in collaboration
with Mike Cope, senior product technical specialist for
Hurco. Cope is a machinist who has acquired 30 years of
experience in the manufacturing industry as a machinist,
owner of a job shop and an applications engineer for two
different machine tool builders. His machinist blog has
grown to more than 600 subscribers. Subscribe to the blog
at www.hurco.com/blog. 
How does the spindle on your HSM mill differ from
the spindle on your regular mill?
The spindle is another place where thermal growth can be
an issue. The HSM mill should have a motorized spindle
with a spindle chiller, rather than the traditional belt-driven
spindle. With a belt and pulley spindle, the belt compresses
air each time one of its cogs contacts the pulley, which
produces heat that eventually heats up the spindle and can
even transfer to the head casting, causing spindle growth in
both the X- and Y- axes, as well as in the Z-axis.
•
•
•
•
•
Operational/Financial Benchmarking Data
Best Practices from Industry Executives
Tactics to Build Customer Relationships
Peer-to-Peer Exchange Forums
Sales and Marketing Strategies
Details on programming, registration and accommodations at www.amba.org.
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the american MOLD BUILDER
spring 2014
Product
New Line of EXAflow Tunnel
Gates from Superior Die Set
Superior Die Set, Oak Creek, WI, introduced a new line of EXAflow tunnel
gates – the Midi Flow. These three new
‘cashew-style’ gate inserts offer the
same benefits as the larger Kontourflow products, now in a smaller size.
The Midi Flow is designed for bottom
(submarine) gating of plastic parts
with weights up to 100 grams per
insert, with suitable gate diameters
up to 1.8mm. Using the Midi Flow,
a gating point up to 8mm above or
below the parting line can be achieved.
The spherical geometry of the Midi
Flow permits gating on inclines and
curved surfaces. All EXAflow tunnel
gates offer clean, precise and consistent de-gating of parts while still in
the mold. Standardized sizes facilitate interchangeability, which is ideal
for balancing multiple cavities and
easy replacement. EXAflow tunnel
gates are in stock at Superior Die Set
with models available through the
company’s 3D CADlink portal at
www.superiordieset.com.
High-Feed Cutters from Seco Tools
Niagara MZN410R/510R solid-carbide cutters from Seco Tools, Troy, MI,
deliver high-feed machining capability for reduced cycle times in moldmaking applications. With special designs, the tools transfer cutting forces axially
into machine tool spindles rather than radially. This allows mold shops to
use lighter duty machines, yet with the same benefits as would result from
using heavier-duty machines. The Niagara high-feed cutters, offered in inch
sizes, provide much tighter and closer access to smaller corner radii at mold
cavity floors and sidewalls. There is less cutting tool pressure (wall contact)
than is the case using a ballnose or round inserted tool. Plus, the cutters
provide process reliability – in addition to increased metal removal rates –
for unattended operation, thus freeing operators to tend multiple machines.
For more information, visit www.secotools.com/US.
7800 Series Open Workspace Laser Welding
Workstation
LaserStar Technologies, a US manufacturer of Nd:YAG
and fiber laser welding and marking systems, recently
introduced its new 7800 Series open laser welding workstation. “Our new 7800 Series open workspace laser welder
provides users with an excellent tool when performing
general welding of large parts, tool and die repair and
injection mold repair, etc.,” said James Gervais, president and COO. “Deep welding, seam welding, contour
welding and complex pattern welding all can be achieved
with LaserStar’s open workspace platform.” LaserStar’s 7800 Series manual welding systems are ideal for
a variety of common spot and seam welding applications
,including plastic injection mold, dies and tooling repair,
complex electronic components, high-precision industrial assemblies, pressure-sensitive hermetic laser sealing
and other unique industrial applications for the automotive, aerospace, aviation, computer, medical device, mold
repair and consumer product industries. For more information, visit www.laserstar.net.
GF Machining Solutions
Offers New HSM 500
MoldMaster
GF Machining Solutions, Lincolnshire, IL, designed its new Mikron
HSM 500 MoldMaster (MM)
highspeed milling machine with
today’s mold and diemakers in
mind. As an all-in-one production
system, the machine’s specific
features and capabilities give shops
the versatility to produce a wide scope of mold- and
die-related components – from 58 Rc steel mold cores
to hot pressing dies and even sinker-EDM electrodes
for intricate mold cavities – all with one machine tool.
The HSM 500 MM packs speed, precision and rigidity.
For high speed, the machine is equipped with a 42,000rpm HSK spindle that uses ceramic hybrid ball bearings
with oil-air minimal lubrication, as well as liquid-cooled
stator jacket and bearings. This vector-controlled motor
spindle ensures extremely fast acceleration to full speed
as well as high torque at low speeds. As a complement
to the high-speed spindle, the machine cuts at feedrates
up to 784.4ipm (20 m/min) and rapid traverses as fast
as 1,574.8ipm (42 m/min). For more information, call
800.282.1336 or visit www.gfms.com/us.
page 18 u
www.amba.org
17
Product
t page 17
Next-Generation Productivity for Large-Part
Machining from Makino
Makino, Mason, OH, is pleased to introduce the new a81nx
horizontal machining center. Like Makino’s other nx-Series
horizontal machining centers, the a51nx and a61nx, the a81nx
extends the capabilities of its 1-series predecessor with expanded
machining capacity, improved rigidity and stability, improved
productivity and enhanced reliability. “The a81nx builds on the
success of the original a81 platform and sets a new standard for
large-part machining performance,” said Dave Ward, horizontal product line manager at Makino. “There have been enhancements made to the bed and column castings of the machine;
expansions in the tool magazine and Y-axis travels; spindle
design improvements for faster acceleration and deceleration
times and a host of additional features and advancements to
improve ergonomics, maintenance and machine uptime.” The
a81nx features a 100mm extension of the Y-axis column, bringing full-axis travels along the X-, Y- and Z-axes to 35.4”, 35.4”
and 40.2” (900mm, 900mm and 1,020mm), respectively. The
increased Y-axis travel is especially beneficial for automotive
parts such as engine blocks and cylinder heads, where the critical mating surfaces
require feed-on/feedoff milling passes for
optimal sealing. For
more
information,
call 800.552.3288 or
visit makino.com.
HASCO CoolCross Z99/...
Flymarker Pro Dot Peen Marking from
Equipment Sales
The new Flymarker
Pro hand-held dot peen
marking system from
Equipment Sales Co.,
Sioux City, IA, is a
truly portable, cordless,
battery-operated system.
There is no electrical
or compressed air line
to interfere with the
workplace
location.
The mobile dot peen
marking system has
high marking speed,
weighs only 10 pounds and has a small physical
size. Equipped with a strong magnet and a powerful battery, the portable “power package” creates
deep and durable markings. The markings even
are readable after a coating process, which is
not always the case with a laser marking system.
The control unit is installed in the break-proof
housing of the hand-held marking system. The
marking files can be programmed via the selfexplanatory software of the integrated control
unit. Only basic computer knowledge is necessary for the operation. For more information, call
800.255.6046, email info@equipmentsalesco.net
or visit www.equipmentsalesco.net.
The new CoolCross Z99/… from HASCO America, Inc., Arden, NC,
opens up a range of completely new possibilities for the designer when
it comes to designing cooling systems for injection molds. For the first
time, it is possible to have cooling channels crossing each other on the
same plane in a flexible and inexpensive manner without any major outlay
on production. CoolCross permits an even temperature distribution at the
core or insert, as well as constant cavity cooling on all four sides for the
full duration of the injection molding cycle. It also prevents hot spots. 100percent protection against rotation (achieved through a locking mechanism) prevents the unintended closure of the cooling channels. Different
independent cooling circuits cross each other on the same plane, making
it possible to incorporate smaller plate thickness and inexpensive accessory components in the mold design. By
reducing the plate thickness, mold builders are able to use shorter nozzles, guidance and attachment elements.
Not only are component costs decreased, but processing costs are lowered as well. The Z99/... permits a reduction in the number of cooling channels since it is no longer necessary to have a cooling channel in an additional
plane. If the CoolCross is used in thicker plates, the installation depth can be selected on a variable basis. The
adapter Z9901/… is then used to provide support. For more information, visit www.hasco.com.
18
the american MOLD BUILDER
spring 2014
Product
New High-Performance Mold
Maintenance Products from PCS
More Flexibility with DME’s
SmartSeries® Temperature Control
Module
DME Company, Madison Heights, MI, a
leading manufacturer of mold technologies,
has expanded its SmartSeries® hot runner
temperature controller product line. The
addition of the TSM15 temperature
control AMBA Ad 2009.pdf
UltraPolishing
module gives molders greater flexibility and
control of their hot runners. The microprocessor-based temperature control module
increases efficiency for molders by providing enhanced control through efficient
touchscreen operation. A full-color display
gives users easy-to-access readouts and
functionality. An informative display screen
helps molders cut down on maintenance
requirements by providing them with important diagnostics – including temperature,
power and current readings. The TSM15
design allows for maximum flexibility, and
programming can be customized and reconfigured to fit new tools and environments.
Molders also can use the TSM15 controller
to number zones in a logical sequence and
to configure the units to run in closed-loop
or open-loop configurations. The TSM15 is fully compatible with all Smart Series or G-Series 15 AMP mainframes.
To learn more, visit www.dme.net.
10/6/09
PCS Company, Fraser, MI, recently announced
three new high-performance mold maintenance
products. Power Clean, Mold Guard and Zap-Ox
are the latest additions to the mold efficiency and
specialty cleaning product line. Power Clean utilizes
an aggressive
chlorinated cleaning agent that is
3:02:05
PM
low-odor, residue-free and effectively removes
dirt and contaminates from surfaces and pores of
the mold. Its quick evaporation cleans without
wiping. Mold Guard is a true dry rust preventative
that goes on dry and stays dry, preventing harmful
corrosion to the mold. Additionally, the adjustable
volume nozzle provides spray control and reduces
waste. Mold Guard eliminates bleeding at start-up
and has excellent film strength. ZAP-OX is the
ultimate stain remover. This specialty cleaner will
remove rust, oxidation, build-up and weld discoloration. Its unmatched stain-removing ability
brings metal back to its original state. It is safe
to use on all metal surfaces and does not etch the
surface of the metal. For more information, visit
www.pcs-company.com. 
Kubotek Comparison Suite 2014 Version 12.5
Released
Kubotek USA, Marlborough, MA, has released Kubotek
Comparison Suite 2014 Version 2.5. Comparison Suite
products include Validation Tool and ECO Manager.
The engineering change identification and documentation tools found in the Kubotek Comparison Suite
help users avoid the costs and pitfalls resulting from
undetected or undocumented changes in CAD files.
Comparison Suite 2014 Version 12.5 adds several
new capabilities: updated translators and user-driven
improvements to save time and improve user control,
including CATIA V5 version-to-version compare; added
ability to enter disposition text next to related geometry
in validation quality documents; updated CAD interoperability readers for Inventor 2014 and Parasolid R26;
user control options for locating closed sets of curves
and Geometry ToolTips to identify entity locations for
all entities and entity components. Additionally, CATIA
V5 import now reads Hidden Assembly Instances. A
free trial of Validation Tool is available, as are free trials
of ECO Manager. To learn more about either product,
visit www.kubotek3d.com.
C
M
Y
CM
MY
CY
CMY
K
www.amba.org
19
Special Report
Can the Automotive Industry
Close the Future Tooling Capacity Gap?
By Laurie Harbour, Harbour Results, Inc.
Will there be a significant gap in automotive tooling capacity
within the next five years and if so, will this affect potential
re-shoring or the huge demand that other industries (such
as appliance, aerospace, consumer products and others)
are placing on the automotive tool supplier base? This
is the ultimate question that Harbour Results, Inc. (HRI)
researched in 2013 with the goal of determining the answer.
In last quarter’s edition of The American Mold Builder,
Harbour Results highlighted the key facts. This article will
explore the findings of the study and what companies can
do to position themselves for these issues.
Over the 12 months of 2013, HRI did extensive research
in conjunction with the Original Equipment Suppliers
Association (OESA) in order to publish the 2013 Automotive Vendor Tooling Study. As the authority in automotive
tooling, HRI got access to information that most OEMs
and suppliers are not willing to share.
One of the core findings of this study is the dramatic
increase in demand by the OEMs for vendor tooling over
the next five years in North America, creating a significant
capacity gap with tool suppliers. HRI’s in-depth analysis of
the North American tool supply base uses 625 shops in the
US and 125 in Canada. With the average revenue of these
shops being $15M, their total capacity yield is $11.25B
annually. This was compared to the current average spend
with North American tool suppliers from the OEMs of
$9.25B. If HRI assumes, based on OEM interviews, that
another $1B of capacity comes in from China or low-cost
country locations, it’s a total of $12.25B.
HRI then developed an estimate of future vendor tooling
demand of $15.2B by 2018. Significant analysis went into
this estimate. The premise of the data was the number of
launches that have been announced and reported for the
future years by each of the OEMs utilizing LMC Automo-
N.A. Automotive Vendor Tooling Projection
64%
$15.20
$ Billion
China $1B
$9.25
Current Spend
$11.25
Current Capacity
2018
Future Demand
• Current Spend = the total of 10 OEMs current annual spend on vendor tooling in N.A.
• Current Capacity = defined by HRI using tool suppliers that are 90% + automotive tool makers, can manufacture 100% of the
complete tool, die and mold only, and willing and able to grow with the industry.
• 2018 Future Demand = based on 2012 baseline and estimated N.A. model launches (all new and major); Source: LMC
Automotive, IHS, OEM Interviews and HRI Estimates.
Copyright  October 2013
20
the american MOLD BUILDER
spring 2014
1
Special Report
tive data and the percentage of available sourcing that each
of the OEMs reported it would have with each new launch.
The following are the key assumptions that are included in
the $15.2B estimate:
• Each domestic OEM indicated that it would continue to
spend the same amount on vendor tools for the next five
years due to the number of launches.
• In North America over the next five years, there will be
2.8M units minimum of new assembly plant capacity
that will enter the market. This capacity will be largely
in the Southern US and Mexico and primarily from
the foreign-owned brands. These new plants largely
will make all new models – all requiring new tooling.
• In the next five years, the number of launches will reach
record levels as OEMs work to capture new sales in N.A.,
but also work to build models for export. This significant
number of launches does not address the complexity of
launches. In other words, LMC counts a vehicle launch
as one launch, but that vehicle might have five trim levels
and three separate tools for things like bumper fascias.
• The key change is with European OEMs. They reported
that today they are making approximately 20 percent of
their vendor tools in North America with suppliers located
here. However, the majority still is produced in Germany,
with some made in low-cost countries and then shipped
to North American suppliers to build parts. The Japanese
said that they are producing approximately 40 percent of
their tools in North America with many still coming from
Japan. This made sense when they had only a couple
models, but with the many models produced in N.A. and
the level of complexity, it no longer makes sense to build
tools in other countries and bring them to N.A. for part
production. Therefore, sourcing will increase in N.A.
• All OEMs indicated that they are adding complexity
to vehicles, which will increase the number of tools
per vehicle 20 to 25 percent over previous models.
• It was impossible to include potential re-shoring from
any of the OEMs due to rising costs in China or leadtime issues in this analysis. Second, it also was impossible to include the demand being placed on automotive
tool suppliers today from other industries because their
re-shoring is significant and many of these shops like
this work because it pays higher margins, offers progressive payments and gives them diversification.
These estimates by HRI show an impending $6B tooling
capacity gap that will hit the automotive industry in the
next five years. What can the industry do to close this gap?
There are many things that can and will be done to reduce
and close this gap over this timeframe. However, HRI’s
estimate of $15.2B actually is conservative. The OEMs
indicated a much higher degree of potential re-sourcing of tools from overseas to N.A. than HRI actually
factored into its calculations and estimates. That said,
the industry knows that some programs do not come
to fruition and the best-laid plans do not always get
executed at the OEM level.
There will be a gap and HRI believes it is close to $6B,
but even if slightly less than that, the industry is tighter
than ever before. This is a great problem for tool suppliers because it means good demand for awhile, but a very
tough one for OEMs that want to launch new vehicles in
N.A. So how does the industry close the gap?
page 22 u
GOT CIMATRON?
More than 40 AMBA member companies are using Cimatron
CAD/CAM software to increase productivity and shorten
delivery times.
Learn more at www.bettermoldmaking.com or
call 248-596-9700 ext. 237 today.
See What AMBA Members That Use Cimatron Say:
“Our efficiency has been increasing incredibly. I know it has impacted our
bottom line. We can take on more business, because we are not spending as
much time in design. The flow from design to manufacturing is much smoother,
shortening our delivery dates, making us more efficient and improving quality.”
Kent Smith, President, Diamond Tool & Engineering
“Cimatron has really helped us stay ahead of the curve when it comes to
creating more sophisticated molds, such as those required for products with
blended curves. Without Cimatron in place, designing and producing such
goods would be nearly impossible.”
Thomas LaMarca, Jr., Owner, L&Z Tool and Engineering
“We believe one of the things that sets LS Mold apart from other shops is our
Cimatron CAD/CAM capabilities. Cimatron really listened to our needs and it
shows in how they implement our requirements in the software. The modeling
package is first rate. It particularly shines in electrode creation. Customer
support from Cimatron is outstanding.”
Jim Dent/David Koning, LS Mold
www.cimatrontech.com
www.amba.org
21
Special Report
t page 21
Assume for a minute that the following occurs:
• Tool shops work to improve through process improvement and new equipment to drive efficiency. With that,
a potential 10-percent improvement or $1B in additional
capacity could be assumed.
• HRI anticipates new plants will come into N.A.
Although many investors are not looking to jump into
the tooling industry, there are other tool shops in Europe
and China that want to enter the North American market.
German OEMs would like to see their tool shops in this
country. It’s not clear how many new plants will be
built in five years, but assume another $1B in capacity,
which is probably high for such a short period of time.
• Then assume China or other low-cost countries grow
their production of tools in those regions for export
to North America and add another $1B of capacity to this market. This is probably the max that can
be expected in the next five years due to dramatically rising costs in China, the significant lead-time
issues faced by N.A. OEMs and the demand from
Chinese OEMs on their own tool shops in China to
build for internal consumption, as production volume
grows from 16M units to nearly 30M units by 2020.
• There will be some sourcing of tools from European
tool shops that will build in Europe and ship to N.A.,
particularly on global programs where appropriate.
• One negative effect on capacity is the lack of skilled
trades in N.A. With an average age of 56 in tool shops,
many people will be exiting this industry in the next five
years, and it will be a challenge to replace these people
at the pace they will exit.
With this analysis and all the potential ways to close the
gap, HRI believes that there still will be a $2 to 2.5B gap
in capacity going forward. Even if this analysis is high and
it is cut by 50 percent, there still is a $1 to 1.5B gap.
Closing the gap
So what can the industry do to solve this problem? Collectively, HRI knows that each of the three stakeholders (OEMs,
Tier 1s and tool suppliers) has a critical role to play. Tool
suppliers must work on efficiency and reinvent the way they
build tools to make more capacity available. Additionally,
they have to continue to invest in the right resources, new
technology and the next generation toolmakers.
22
the american MOLD BUILDER
spring 2014
Tier 1 suppliers need to work more collaboratively with
the OEMs and the tool suppliers. They are the critical
glue that keeps the three stakeholders together. Their role
is transparency through the value stream with the tool
shops and OEMs. They must contribute their engineering capability to support the OEMs in reducing total cost,
not just of tools but the parts as well. It is true the Tier 1s
have been squeezed for many years as OEMs have gone
after material cost reduction, which has created some
very challenging circumstances for them to be profitable.
That said, it is critical for suppliers to partner with the
OEMs and openly share the challenges while working
together to both succeed. Yes, HRI makes it sound easy
and it is not. However on the flip side, Tier 1s also can
cause significant negative challenges if they do not play
their role productively.
Lastly, the OEM probably has the most critical role in
closing the capacity gap within vendor tooling. Many may
not think OEMs could have this critical of a role given they
don’t run the tool build plants. However, the decisions
they make upstream and downstream steals capacity away
from tool shops and is magnified across 10 North American OEMs.
In the graphic on page 24, the HRI Tooling Study research
revealed that many OEMs, particularly the Detroit Three,
still are focused on those traditional elements above the
water level that drive price. However, those that performed
the best in the study were those OEMs that put their focus
further upstream on the elements below the surface that
are truly driving the waste or added cost to vendor tooling.
Things like program delays, incomplete math data at kick
off of the tool program, inaccurate target setting when the
program is put together, lack of commonization, engineering
changes and poor design requirements are stealing massive
amounts of capacity from tool suppliers on a daily basis.
The chart on page 26 highlights the life of a tool supplier
in an 18-month period of time. Its schedule can range from
55-percent utilization to over 100 percent as programs get
delayed and pile up on top of each other. This makes for
tough business conditions for a tool supplier, as it really
has no visibility to future delays or the impact on its plant.
Often times, the tool supplier is not even told of the delay
until it is too late to smooth the curve with other tool
production.
page 24 u
Who’S BRINGING NEW LEVELS oF PERFoRmANCE
To ComPACT hoT RuNNER/mANIFoLd SySTEmS?
At Plastic Engineering & Technical Services, we are.
for better process repeatability, and no over-pressurizing the
We define performance. For nearly 30 years, we’ve helped our
cylinders. It all adds up to a reduced sized hot runner system,
customers to produce more efficiently, with lower cycle times
shorter heating times and better tool performance.
and lower per unit costs.
We deliver value. We complement our hardware with
Our new compact stainless steel, modular unitized system
leading-edge analytical tools, including Moldflow® and
features flexible heaters that can be utilized on multiple designs,
MOLDEX3D software. We’ll work with you on design issues
so you don’t have to stock custom bent heaters. Our new drop
and optional gating solutions before the mold or hot runner
heaters provide more uniform heating and feature smaller
manifold system is ever built. Use us for the mold flow analysis
pockets and no clamps. They have in-line flow restrictors
and the manifold build, and we’ll do whatever it takes to make
your hot runner/manifold system work to your complete
satisfaction.
We’re committed to your success. Find out more.
Call us today at 248.373.0800 or visit us at www.petsinc.net.
www.amba.org
23
Special Report
t page 22
Focus Must be Above and Below the Surface to
Capture Capacity and Truly Reduce Cost
Traditional Focus has been on Tool Supplier Price
Levers • Tier 1 Mark-ups (5-30%)
•
•
•
•
EBID/OLQ Method
Reality vs. Actual LCC
Profit/SG&A
Audit
Without Consideration for Below the Surface Costs
• Program Delays
• Completeness of Math Data and
Engineering Changes (D3 55% vs. A3 80%)
• Inaccurate Targets
• Design Requirements (parting lines)
• Program Visibility / Capacity
• Commonization/Re-use
• Supplier Equipment & Specs
• Payment/Collection Process
• Finance Charges
• Negotiations w/Piece Price
• Bundling Pricing
Copyright  October 2013
So what can the collective industry to close the capacity
gap, and what can OEMs do to capture capacity in the
future if there truly is a gap? Every OEM’s focus has to be
capturing capacity of the best tool suppliers in the future
while balancing cost internally. Anyone can go after capacity and get it, but it could drive cost way up. However, the
opposite also could occur: if OEMs are focused on cost,
they may not capture capacity from the best shops.
2
If the OEMs truly want to reduce cost for vendor tooling
in the future while capturing the capacity of their best
tool suppliers, it is critical for them to step into early
involvement. By asking tool shops to reserve capacity
and be globally competitive, they would in return have
visibility to future programs, would see fewer delays and
would receive better math data, thereby making them
more productive. Then the tool shops can help optimize
design, improve launch success and capture lessons
learned. Lastly, it is HRI’s hope that OEMs will begin
to implement progressive payments to the tool shops
that are willing to work upstream in the process to drive
cost reduction. This is critical to capture interest in this
up-front involvement, but with it, most suppliers will be
on board and will engage.
In order for this balance to occur and drive a healthy tool
industry, the key finding of the study highlights the need to
collaborate and drive earlier involvement of tool suppliers
in the part development process. Most tool suppliers from
the study and in HRI’s consulting work have indicated
that they would welcome early involvement because it
would give them the ability to affect the design, reduce
cost for the OEM and gain a clear visibility to capacity,
allowing them What’s
to improve efficiency.
Affecting Tool Supplier
Percent of Capacity
Annualized Utilization
Traditional
Capacity Visibility
100
90
80
70
60
50
1
2
3
• Items affecting capacity :
24
Throughput?
4
5
6
o Tool Supplier Efficiency
the american MOLD
spring 2014
o BUILDER
Progressive Payments/Payment
Terms
o Reasonable Targets
7
8
9
Months
10
11
12
13
14
15
16
17
18
o Program Delays at the OEM and Lead Time Expectations
o Design Completeness/Standards and Common
Specifications
page 26 u
Special ReportGrainGer is aMBa's endorsed Mro Provider. Find out More at www.aMBa.Product
orG.
Grainger is AMBA's endorsed MRO Provider. Find out more at www.amba.org.
Everything
Everything you
you need,
need,when
whenyou
youneed
needit.it.
Get
Get it.
it. Got
Gotit.
it.Good.
Good.
© 2013 W.W. Grainger, Inc.
© 2013 W.W. Grainger, Inc.
GRAINGER.COM ® | 1.800.GRAINGER
GRAINGER.COM ® | 1.800.GRAINGER
www.amba.org
25
Special Report
t page 24
The vendor tooling industry has been challenged
throughout the years – whether automotive or otherwise.
HRI does not know of an industry that has gone through
more restructuring. That said, it is a very traditional
industry that needs to re-invent itself. OEMs will not
stop launching new vehicles over the next five to ten
years as they work to rebound from the recession.
Capacity
Cost
Early Involvement
•
•
•
•
•
•
•
Visibility to Capacity
Reduced Delays
Better Math Data
Optimize Tool Design
Improve Launch Success
Improve Lessons Learned
Progressive Payments
Increased
Tool Shop
Capacity
and
Cost
Reduction
Copyright  October 2013
This is the opportunity for North America to grow
manufacturing, re-engage the next generation of workforce
back into manufacturing and remain the powerful center of
the automotive industry. AMBA members have many of
the capabilities to help close this gap, yet they have huge
opportunity to improve.
At the AMBA 2014 Annual Conference in May, Laurie
Harbour will talk about what tool supplier members
of the AMBA can do to improve their businesses and
either capture some of the volume from automotive or
strengthen their sales in non-automotive.
Combining operational and strategic advisory expertise
with industry analysis and thought leadership, Harbour
Results delivers results that impact the bottom line. The
company specializes in manufacturing, production operations and asset-intensive industries, as well as a number
of manufacturing processes including stamping, tooling,
precision machining and plastics. For more information,
visit www.harbourresults.com. 
4
We’re Focused on You.
While other suppliers turn their
backs to supply other hot markets,
we’re stocking inventory, investing,
and servicing our customers 110%.
It’s been that way for the past 100
years and will continue for the next
100 years. At ESS, we always focus
on our number one priority – you.
It’s what we do.
United States
Ellwood Specialty Steel
800-932-2188
esssales@elwd.com
26
the american MOLD BUILDER
Canada
Ellwood Specialty Metals
877-978-2772
esmsales@elwd.com
spring 2014
Ellwood Specialty Steel - Ready and Reliable.
ZERO STOCK CUTTING.
NO HAND FINISHING.
VIRTUALLY NO SPOTTING.
IN DIE/MOLD, IT’S
THE DETAILS THAT
MATTER MOST.
You’ll do anything you can to reduce
delivery times and operating costs.
And Makino is doing everything
possible to help. Makino technologies
enable you to bypass time-consuming
steps to deliver mirror-like finishes on
even the most complex geometries.
All in record time. Because when you
make what matters, making it better—
and faster—is what matters most.
Don’t wait. Get the whole Makino
die/mold story right now:
MAKINO.COM/DIEMOLD
WHEN YOU MAKE WHAT MATTERS
www.amba.org
27
Association
“Power Your Connections” at the AMBA Annual
Conference 2014, May 14-16, at The Pfister® Hotel,
Milwaukee, WI. Last year’s annual conference in
Schaumburg, IL, once again broke attendance records
and plans are in place to set a new record, as mold
building professionals gather from across the country
to share best practices and learn ways to improve the
profitability of their mold building operations!
Wednesday, May 14
This year’s event is packed with valuable
content in a new concise format, providing
greater take-aways with less time away from
work! From the conference kick-off at the
Welcome Reception and Supplier Trade Fair
on Wednesday evening to noon on Friday
when the conference adjourns, attendees will
discover new ways to connect with customers, suppliers and their own internal team
members, while exploring what best-in-class
mold building executives are doing to drive
their operations forward.
For conference details, including pricing,
online registration, hotel and exhibiting, visit
www.amba.org.
1:30 – 2:30 pm
IGNITE Sessions 2:30 – 3:00 pm
Exhibitor Networking Break
3:00 – 3:15 pm
AMBA Annual Meeting
Welcome Reception and
Supplier Trade Fair
3:15 – 3:45 pm
AMBA Professional Certification
Program Launch Ryan Pohl, Expert Tech
7:00 am
Registration Open
7:30 am
Exhibitor Networking/
Continental Breakfast
3:45 – 4:45 pm
Do Improvements Really Exist
Everywhere?
Paul Akers, FastCap
8:00 am
Conference Kick-Off
Troy Nix, AMBA
8:30 – 9:30 am
Keynote Presentation
Revenue through Relationships
Troy Hazard
9:30 – 10:00 am
Exhibitor Networking Break
10:00 – 11:15 am
Can North America Fill the
Tooling Capacity Gap?
Laurie Harbour,
Harbour Results
2:00 – 6:00 pm
Registration Open
2:00 – 4:00 pm
Harley-Davidson Museum
Tour (Optional)
®
6:00 – 8:30 pm
Thursday, May 15
11:15 am – 12:00 pm Attracting America's Youth
Craig Cegielski,
Eleva-Strum High School
12:00 – 1:30 pm
28
Lunch
the american MOLD BUILDER
spring 2014
6:30 – 7:30 pm
Awards Reception
7:30 – 9:30 pm
Awards Banquet
Friday, May 16
7:30 am
Exhibitor Networking
8:00 – 9:30 am
Functional Round Tables/
Continental Breakfast
9:30 – 10:00 am
Exhibitor Networking Break
10:00 – 11:00 am
Your Business, Your Future –
10 Economic, Political and Tech
Trends That Will Affect Your
Business Tomorrow
Gene Marks
11:00 am – 12:00 pm The Idea-Driven Organization
Dr. Alan G. Robinson, Isenberg School of Management
12:00 – 12:15 pm
Convention Wrap
Troy Nix, AMBA
The Pfister® Hotel
Discover a tradition that spans generations – a grand
elegance that marries history with modern amenities
– at The Pfister® Hotel.
Special AMBA rate is $159/night and includes
complimentary in-room internet and fitness center.
For reservations, call 877.211.9211 or for online
reservations, visit www.ambaannualconference.com.
Harley-Davidson® Museum Tour (optional)
$45/person
Whether you were born to be wild – or mild – makes
no difference at the Harley-Davidson® Museum
in Milwaukee, WI. The fee covers entrance to the
museum, 1.5-hour back-of-the-scenes tour and transportation to/from The Pfister® Hotel.
Insert & solid carbide tools for conventional,
high speed & hard milling. Inch and
metric sizes 0.020” to 1 ¼”
& 0.5 to 32 mm
Ball nose, toroid, bull nose,
square & back draft tools for
virtually every milling
application
Cut cores, cavities
& surfaces
cleaner,
smoother &
faster
Special Thanks to our AMBA Sponsors:
WORLD HEADQUARTERS
4930 South Lapeer Road
Orion Twp, MI 48359 U.S.A.
Tel: (586) 573-9450
Toll Free: 877-645-5782
877-MILLSTAR
Fax: (586) 573-9451
info@millstar.com
www.millstar.com
page 30 u
www.amba.org
29
Association
t page 29
AMBA's Benchmarking Survey Links
to the 2014 Annual Conference!
Do you want to develop best practices? Compare your
performance to your industry peers? Improve your company’s
profit and cash flow? If you find yourself answering YES to
any of these questions, the AMBA can help!
The 2014 Annual Conference will feature two special
sessions dedicated to providing answers to all of these
questions and more.
The AMBA Benchmarking Survey is a report card on
performance, and we encourage you to participate. Your
time investment will be well worth the ideas this report
will help to generate to improve your business.
What You Should Know
The process is absolutely confidential – only the survey
administrator (Business Resource Services) will see your
data.
• Participants will receive a network-wide report and
their individual Company Consulting Report.
• Information is easy to submit online.
• NEW this year – participation is FREE to AMBA
Members!
• Deadline to submit data has been extended to June 6, 2014.
Be sure to reserve your spot at the conference today to
learn how this survey can be a valuable tool and increase
your bottom line!
To participate in the survey, visit www.amba.org and click
on the Benchmarking banner on the homepage.
Help AMBA Pilot Test New Skills
Certification Program
The AMBA Board of Directors and Skills Certification
Committee have worked diligently over the past year to put
together recommended training curriculum for apprentice
mold builders and CNC operators. The goal of this project
was to first, develop recommended training curriculum for
apprentice mold builders and CNC operators and second,
to develop a method to test and validate these skills to an
AMBA-approved level of high achievement.
In order to put together the AMBA recommended training
coursework, a DACUM was put together and standardized tests were developed in three areas: Primary Skills,
Moldmaking Skills and CNC Skills. A group of AMBA
members (expert moldmakers and CNC operators) volun30
the american MOLD BUILDER
spring 2014
teered many hours of their time and resources to help
construct three tests. From these tests, the training curriculum was created. These tests now are ready to be pilot
tested by AMBA members through an independent testing
company, Nocti Business Solutions (NBS).
We are asking our AMBA members for their assistance in
taking the pilot tests, helping us validate the three tests and
establishing the passing scores.
If you would be able to designate any number of individuals (even one) to take any of the three pilot tests, please
visit www.amba.org and click on the Pilot Testing banner
on the homepage for more information.
$1,000 Scholarships for AMBA
Member Employees
AMBA’s National Scholarship Program to date has awarded
over $225,000 nationally since the program’s inception in
1991, and the program continues to demonstrate AMBA's
commitment to the industry, education and offering valuable
member benefits.
Scholarships will be awarded to your employees or employee
dependents. The employee has to be working full-time for
your company for at least one year in order to participate in
the program. Previous scholarship recipients are eligible to
apply for the 2014/2015 scholarships.
Authorized by the Board of Directors, AMBA will grant up
to ten (10) $1,000 scholarships depending on the number of
qualified applicants for the 2014/2015 school year. Scholarships are paid directly to the educational institution. Applications must be submitted/postmarked by May 2, 2014.
For the application or more information on the AMBA
scholarship, visit www.amba.org/scholarship.
Welcome New Members and
Partners
Members
North American Lighting, Inc., Indiana Tool Plant
Eberfeld, IN
Mark Kinsella, Plant Manager
812.983.2663 www.nal.com
North American Lighting, Inc. is the largest non-affiliated
lighting supplier in North America. The Indiana Tool Plant
designs and builds plastic injection molds for automotive
head lights and tail lights.
Precision Mold & Tool, Inc.
San Antonio, TX
Domingo Auces, Vice President of Production
210.525.0094 www.precision-group.com
Precision Mold & Tool Group is equipped with the
ability to design, create and repair molds for all different
industries. If a mold needs repairing, Precision Mold can
provide transportation to and from its customers’ facilities
for convenience. The molds are repaired in-house using
top quality, high-performance equipment. Precision Mold
also performs on-site mold repair, if necessary.
Partners
Vincent Tool
Chippewa Falls, WI
Dean Haase, Owner • 715.720.8066 www.vincenttool.com
Vincent Tool specializes in custom injection mold bases:
revisions, end of arm tooling, core/cavity roughing and
fixturing. Its skilled staff is capable of building many types
and sizes of mold bases with the use of modern CNC machining centers and up-to-date computer software from 3D
models. Vincent Tool’s close focus on injection mold bases
teamed with the staff’s expertise provides the company the
unique ability to excel in producing the highest quality, most
competitively-priced, on-time mold bases within the US. 
“turning steel
into enhanced productivity”
 In Stock Steel: 4130/4140/420SSPH/P20/A36
 Custom Mold Bases
 Precision Ground, Squared & Machined Plates
 Fast Quotes and On Time Delivery
847.806.9800
cs@ntm.com
ntm.com
www.amba.org
31
Focus
Designing for Manufacturability
By Mark Hanaway, Tech Molded Plastics
Vision and communication are the driving forces behind
the highly technical skills of precision moldmaking. For
AMBA members, the process of designing for manufacturability is an evolutionary science at the core of success.
Competitive interests rarely share the secrets to their
operations. But on Thursday, February 20th, members of
the AMBA gathered for a unique, unfiltered look at the
systems and processes developed by Tech Molded Plastics,
Inc., in Meadville, PA.
Plant tour workshops facilitated by the AMBA are gaining
significant ground as plastics professionals realize the
extreme value in sharing best practices. The association
has inspired confidence with company stakeholders that
the plant tour code of ethics and summary of feedback
produce value beyond comparison. The process, led by
industry leadership, includes a red card/green card system
of identifying areas of missed opportunity and recognition
of advanced procedural strength.
Tech Molded Plastics at a glimpse
A 40+ year evolution built on the foundation of creating
high-precision, complex, multi-cavity molds has yielded
the reputation that Tech Molded Plastics (TMP) carries
in the marketplace today. The company has been recognized by industry peers and international organizations
as a processing leader in the technical world of precision
molded plastics. As testament to this on February 25, 2014,
Attendees examine intricate mold details and discuss
machining techniques.
Photo credit to Creative Technology Corp.
Tech Molded Plastics team
member presents advances in
programming for hard milling,
speeds and feeds.
32
the american MOLD BUILDER
spring 2014
Predictive mold maintenance and production
threshold plans are established in the design
phase, leading to longer-life production
capabilities.
Tech Molded Plastics was honored with the
distinguished Processor of the Year award
organized by PlasticsNews and sponsored
by the Washington-based Society of the
Plastics Industry.
By combining craftsmanship, leadingedge technology and the competitive spirit,
Tech has developed a disciplined strategy
to build the most sophisticated molds in the business. The
skilled teams of designers, toolmakers and master molders
at Tech have created a feasibility and planning process that
tackles each of its complex projects through systematic
detail of vision and communication. The steel and mold
components are manufactured by design to produce longlife, low-wear tooling that make the best molded plastic
parts possible in the industry.
During the tour and review of Tech’s feasibility and
planning process, the logic of systematic vision and
communication was on display and open for discussion.
The history behind the process centered on lessons learned.
It documented and captured the methods used in previous
experiences to solve problems. The scope didn’t just focus
on the build side! It also took into consideration the longterm care and preventative maintenance of a mold running
harsh compounds found within engineering-grade resins.
The vision and communication of each new mold build
extended well into the life of the mold where productivity,
quality and profitability are made or lost in the production
environment.
Designing systems and processes where the human factor
remains an essential component requires a blend of
detailed discipline and simplicity. Tech’s feasibility and
planning process was reviewed and analyzed. The plant
floor was open for a hands-on view of work-in-progress.
The flow and channeling of information was presented.
Organization, line supplies and operational techniques
were all on display. From design review through to the
packaged molded part, systems and processes, as well as
the manufacturing environment, were critiqued for opportunities to improve and praised for areas of excellence.
Tour participants shared ideas and suggestions that
expanded the thinking for all participants. Methods central
to immediacy of information, “right-sizing” multi-axis
technology, automation for bill of materials and space
optimization were points to consider for improvement.
Tech has expanded its use of pressure-sensing transducers, RJG technology and centralized eDART data
management. Applying the knowledge gained from data
analysis without diving in too deep requires balance. The
blend of technology and applied value is a fine line. The
pros and cons of rapid development in any environment
are compounded when vision and communication lack
clarity.
Toolmakers and engineers have honed their skills by
performing the tasks needed to create precision tooling.
They’re not often called to public speaking or to present
a detailed description of what they do and how they do
it. At the AMBA tour, Tech’s personnel hosted its peers
from industry insiders that know when smoke is blown and
marketing language clouds reality. This is where keeping
it real produces far better results. The skilled technicians
that served as speakers and presenters were praised for
their ability to discuss in real terms – real challenges and
how Tech developed a cross-functional approach to feasibility and planning.
Tour participants noted that Tech’s design review process
actively solicited feedback from each of the core functions
of mold design, tool build, quality management and
production processing. Visual details at Tech encompass
the practical nature of a precision moldmaking environment where Lean feels like common sense manufacturing. The AMBA tour reinforced the value of vision and
communication techniques. The shared sense of purpose in
an open, unfiltered setting made friendly competition one
of the key successes in an industry that’s highly competitive on a global stage. 
www.amba.org
33
Show Preview
THE EVENT FOR MOLD
MANUFACTURING
amerimold returns to Novi, MI, June 11-12, 2014, with an event that offers solutions for every aspect of the mold business.
From product technology to process improvement, business development to management strategies – amerimold 2014
offers something for any part of mold manufacturing. Connecting mold manufacturing and plastic injection molding,
amerimold’s show floor will feature exhibitors displaying products used for designing, machining, repairing and injection molding molds. Products on display include machine tools, cutting tools, CAD/CAM, 3D printers, mold components,
materials, mold/die/tool services and more.
The technical conference will deliver expert insights into the production and management challenges facing die/mold
machining and injection molding businesses. Topics will include 5-axis machining, conformal cooling, mold maintenance, material selection, injection molding and customer and workforce development.
The following amerimold exhibitors may be of
interest to The American Mold Builder readers:
and molding process, from gate size/location to reducing
cycle times to identifying warpage issues. Its services are
ideal for those who want
to reduce mold
sampling
costs
REGISTER
TODAY
AT
and eliminate trial and error methods.
Special Rates for
AMERIMOLDEXPO.COM
www.alro.com
AMBA
Members!
Alro Steel is the ‘One Stop Shop’ for metals, industrial CGS North America Inc.
Alro Steel
Booth #420
www.camtool.com
supplies and plastics. Family owned since 1948, Alro has Booth #203
CODE:
Receive
a Alro
FREE
North AmericaPROMO
will be demonstrating
the latest version
over 60 locations in 12
states. With the
OnlineExhibit
Store, CGSHall
Software
CAM-TOOL
Version 10.1.
customers can enter quotes and orders and receive next-day of its Elite CAD/CAM
AM BA
Pass
AND
Save
50%
on
your
CAM-TOOL’s world-renowned ability to machine a mold
delivery including processing.
full conference registration!
or die with minimal to no polishing will be shown through
the parts on display. In response to users request for a more
American Mold Builders Association
Booth #433
www.amba.org simplistic job start up, an expansion of the EZ Launcher
AMBA is the premier trade association for the US mold has been added. For SolidWorks users, CG CAM-TOOL,
manufacturing industry, serving its members with financial an add-in to SolidWorks, has released Version 4.1 and also
and operational metrics, cost-saving programs, educational will be available for demonstration.
resources and so much more. Membership information, the
AMBA Sourcebook and the latest issue of The American DMS Components
• will
Complimentary
pass
to the
amerimoldBooth
exhibit
hall featuringwww.dmscomponents.com
all aspects of
Mold Builder
be available at the
AMBA
booth.
#703
the mold manufacturing industry fromDMS
design
to
production
to maintenance
Components will feature
I-Mold and Exaflow tunnel
gate
inserts,
REDE
VAULT,
Koolflow
Boride Engineered
Abrasives
• Discount registration to technical conference presentations by industry water manifolds,
full-color mold plaques, PlatenGuard locating rings,
Booth #506
leaders andwww.borideabrasives.com
innovators
Boride Engineered Abrasives is a leading USA-based HMMS hydraulic locking cylinders and Slide lubricants.
also will
manufacturer
of “Top
bonded
including DMS
• Free
10 abrasives
Reasonsproducts,
to be a MoldMaker”
T-Shirt
andintroduce
access an
to innovative
industry patented concept –
adjustable
leader
pins
for
reducing/eliminating
mold alignmold/diemaker
polishing
stones,
mounted
points,
industrial
networking events.
sharpening stones and other specialty abrasive products. ment issues.
• than
AND
For more
40 MORE!
years, Boride Engineered Abrasives has
developed and manufactured abrasive products for indus- Incoe
trial and consumer applications in its Michigan manufac- Booth #130
www.incoe.com
turing facility.
In addition to Direct-Flo Gold hot runner systems, Incoe
PRESENTED BY:
IN PARTNERSHIP
will display a sample of a 3mm
thick, in-moldWITH:
labeling
(IML) part created using its SoftGate valve-pin velocityCAE Services Corporation
Booth #431
www.caeservices.com control technology, and interior car pillars that showcase
CAE Services Corporation is a solutions-based moldflow how SoftGate technology produces highly cosmetic
service provider that evaluates all aspects of the part design finishes, eliminating visible weld /flow lines.
PRE-REGISTER TODAY TO RECEIVE:
34
the american MOLD
amerimold14_AMBA_full_page.indd
1
BUILDER
spring 2014
3/3/14 9:19 AM
LaserStar Technologies Corporation
Booth #310
www.laserstar.net
LaserStar Technologies is one of the leading suppliers of
laser welding and marking machines to the industrial, tool
and die and mold repair marketplaces. LaserStar is the only
US manufacturer designing and manufacturing a complete
range of Nd:YAG and fiber laser systems for micro-welding,
marking, engraving and cutting applications. Customers
receive superior service, education and technical support
from any one of its national LaserStar centers in RI, FL
and CA. Made in USA.
Makino
Booth #317
www.makino.com
Makino is a global manufacturer of high-performance
milling and EDM machines with patented technologies
that help tool, die and mold manufacturers meet customers’ increasingly stringent specifications and lead times.
Visit Makino in booth #317 to discuss unique moldmaking
challenges and discover advanced manufacturing solutions
to help produce what matters.
Materion Corporation
Booth #603
www.materion.com
Materion Corporation is one of the world’s leading suppliers of high-performance alloys, providing high reliability copper, copper beryllium and spinodal alloy products
backed by unparalleled global service. Materion’s highstrength mold alloys include MoldMAX®, MoldMAX XL®,
PROtherm® and MoldMAX V® for full core and cavity,
core pins and hot runner components.
Moldex3D
Booth #530 www.moldex3d.com
Since 1995, Moldex3D has provided professional simulation solutions for the plastics industry. Committed to
providing advanced technologies and solutions for industrial demands, Moldex3D has extended its network to
provide local, immediate and professional services. Its
innovative technology helps customers troubleshoot from
product design to development, optimize design pattern,
shorten time-to-market and maximize ROI.
PCS Company
Booth #421
www.pcs-company.com
PCS is proud to announce three new high-performance
mold maintenance products. POWER CLEAN, MOLD
GUARD and ZAP-OX are the latest additions to the Mold
Efficiency and Specialty Cleaning product line. See these
products and many others at amerimold 2014.
Progressive Components
Booth #503
www.pcic-group.com
Progressive will feature its standard Z-Series Alignment Locks with new lifetime warranty, plus lifters,
CamActions and parting line sequence control devices.
Co-exhibitors include Roehr Tool Corporation and AST
Technology that will feature the new, Sub-10mm DT Collapsible Core, as well as new advancements in mold monitoring
using the CVe Monitor System.
SelfLube
Booth #316
www.selflube.com
SelfLube is the leading US manufacturer of mold and die
components. Its offerings include bushings, pins, wear
strips, gibs, side locks and related items. With its 10,000
standard part numbers and the ability to make specials,
SelfLube generally can accommodate any special size or
configuration a customer might have. SelfLube sells direct
to save customers time and money and has a strong reputation for customer service. SelfLube’s quality is backed by
five zero-non-compliance ISO 9011:2008 audits.
Single Source Technologies (SST)
Booth #314
www.singlesourcetech.com
As a distributor of advanced machinery and consumables,
SST understands the unique challenges of today’s tool, die
and mold applications. Its experienced process engineers
and technologists deliver the highest caliber manufacturing
systems to support customers in their pursuit of excellence.
Slide Products, Inc.
Booth #126
www.slideproducts.com
Slide Products offers a full line of processing aids for
moldmakers and plastic processors. The Slide line includes
tapping fluids, mold cleaners, rust preventives, specialty
lubricants, mold releases and purging compounds. Free
samples and technical support are available by visiting
Slide's booth. Slide works with a national network of
local stocking distributors, providing customers with local
support that no other product line offers.
TST Tooling Software Technology
Booth #211
www.tst-software.com
TST Tooling Software Technology, LLC is the master North
American distributor of VISI CAD / CAM / CAE and VISIPEPS Laser/ Wire Software. TST is world renown for the
competitive advantage it provides to the tooling industry in
the design and manufacture of plastic injection molds, 2D
through 5-axis milling, electrode production and others.
ToolingDocs LLC
Booth #120
www.toolingdocs.com
ToolingDocs, a leading authority on mold maintenance,
features multi-level maintenance certification training,
including for hot runner systems, at its Training Center in
Ohio, plus newly expanded training capabilities in Canada,
Mexico, South America and the EU. Look for ToolingDocs
and its Technology Partners to exhibit along the “Mold
Maintenance Highway.” 
www.amba.org
35
Industry
Delcam Donates Courses to SkillsUSA
Delcam has donated over 1,000 Delcam University
courses, with a total value close to $300,000, to the
SkillsUSA partnership of students, teachers and industry
representatives who are working together to ensure that
America has a skilled workforce. SkillsUSA is a national
organization serving teachers and high school and college
students who are preparing for careers in technical, skilled
and service occupations, including health occupations and
further education. SkillsUSA, which was formerly known
as VICA (the Vocational Industrial Clubs of America),
helps every student to excel. SkillsUSA programs also
help to establish industry standards for job-skill training
in the lab and the classroom and to promote community
service. SkillsUSA is recognized by the US Department
of Education and is cited as a “successful model of an
employer-driven youth development training program”
by the US Department of Labor. Full details are on the
www.skillsusa.org website. SkillsUSA programs include
local, state and national competitions, in which students
demonstrate occupational and leadership skills. At the
annual national-level SkillsUSA Championships, nearly
6,000 students compete in 99 occupational and leadership
skill areas. The Delcam University courses will be
awarded to the top three participants in the Automated
Manufacturing, CNC Milling, CNC Turning and Precision
CNC Machining competitions. For more information about
Delcam University, visit www.delcamuniversity.com.
Reshoring Initiative® Wins 2014 Manufacturing
Leadership Award
The Reshoring Initiative, led by founder Harry Moser, was
honored by Frost & Sullivan’s Manufacturing Leadership
Council as one of the winners of the 2014 Manufacturing Leadership Awards (ML Awards) in the category of
Industry Advocacy. Now in its 10th year, the Manufacturing Leadership Awards program honors companies
and individuals that are shaping the future of global
manufacturing. Nominations are entered into 11 categories and are evaluated and scored by a panel of expert
judges. The categories are for outstanding projects undertaken and completed by a manufacturing company. “It
is an honor to be included in this distinguished group of
world-class leaders and companies that are forging new
paths for innovation and opportunities in manufacturing.
I am personally grateful to the Leadership Council for
focusing on the timely and vital topic of reshoring,” said
Moser. “The efforts of the Council are helping to improve
US competitiveness, thus accelerating reshoring.” The
Reshoring Initiative, recognized for its industry-led effort
to bring good, well-paying manufacturing jobs back to the
United States, assists companies to more accurately assess
36
the american MOLD BUILDER
spring 2014
their total cost of offshoring and shift collective thinking
from ‘offshoring is cheaper’ to ‘local reduces the total cost
of ownership.’ To help manufacturers further understand
total cost of ownership, the Reshoring Initiative developed the Total Cost of Ownership Estimator™, which is
available for free at www.reshorenow.org/TCO_Estimator. To learn more about the Reshoring Initiative, visit
www.reshorenow.org.
Eisenring Named General Manager at HASCO
America
HASCO America Inc., a member
of the Berndorf Group based in
NC, has named René Eisenring
as its new general manager. A
mechanical engineer graduate
born in Switzerland, Eisenring
has lived and worked in Europe,
Africa and Asia and since 1990,
in the US. He brings the under- René Eisenring,
standing of multiple cultures and General Manager
languages to HASCO, which
will enhance the company’s global strategy. In his last
function, Eisenring was responsible for customer sales and
service in the field of extrusion and die casting. In his new
role, he will bring a wealth of know-how in management,
sales and customer service. For further information, visit
www.hasco.com.
Surfacetec Opens New Facility
Surfacetec Corp., Franklin Park, IL, recently announced
the opening of its new suburban Chicago production facility and corporate headquarters. This new 30,000 sq. ft.
facility enhances production capabilities in line with the
growing needs of regional and national markets. Per Takao
Nagai, CEO, “This milestone represents the culmination
of progressive efforts to expand our scope, and scale the
expertise and proficiency of our production team to meet
increasing market demands of large-scale injection molds
and dies for automotive and heavy equipment sectors.
These sectors were out of reach at our previous facility.
Now, we are positioned to become the regional source for
large tool polishing and plating.” Surfacetec’s new facility
accommodates large-scale tools with a dedicated 20-ton
crane bay and hard-chrome plating capacity for parts up to
12x8x6'. Capabilities for small and medium scale projects,
including specialty fasteners and microparts, also have
been enhanced with 10-ton and 5-ton overhead cranes and
a doubling of polishing workshop capacity. Electroless
nickel plating production also has been expanded and now
incorporates new high-efficiency process chemistries. For
more information, visit www.surfaceteccorp.com.
Hybrid Online Video Courses from Expert Tech
Expert Technical Training, Comstock Park, MI, is excited
to announce it has partnered with Art Hedrick of Dieology
to develop and provide a new series of hybrid online video
courses beginning April 28, 2014. The new courses will
target topics like foundational stamping die knowledge,
advanced metal studies and group-oriented leadership
training. Each online course provides a full curriculum of
video lessons and testing materials. This easy-to-use system
tracks progress and can provide participants with immediate access to lessons and guides, as well as standardize
document and procedure management. For a full listing
of the courses available along with a description of each
course, follow this link: http://experttechdieology.yolasite.
com/ or contact Jon Chaney at Expert Technical Training
for registration information at jon@expert-technical.com
or 616.785.5733. For more information on Expert Technical’s training and education solutions for mold building
companies, visit www.expert-technical.com.
M&M Tooling Installs Horizontal Machining Center
M&M Tooling recently installed a Mazak H-630 horizontal
machining center, which will allow the company to better
serve its customers and complement its business of building custom mold bases. The installation further will allow
M&M to keep all mold base building operations in-house,
resulting in better scheduling flexibility and quality control.
For more information, visit www.mmtooling.com.
INCOE Appoints General Manager for
MI Headquarters
INCOE Corporation USA, Troy, MI,
recently announced the promotion of
Kurt Curtis from his current position
of director of global manufacturing
to INCOE North America general
manager. Curtis is assuming responsibility of all operations at INCOE’s
Curtis, INCOE
North American facilities and will Kurt
North America
provide leadership and direction for General Manager
INCOE’s North American division to
achieve its business objectives for long-term, sustainable
growth and profitability. In his new role, Curtis will report
directly to Bob Hoff, president of INCOE. “Kurt has consistently demonstrated his extensive knowledge of managerial and operational experience during his 29 years with
INCOE. INCOE’s management team and I have no doubt
Kurt will continue to exhibit his strengths as a leader in his
new role as general manager of INCOE’s North American
operations,” stated Hoff. Curtis joined INCOE in 1985 and
has worked in several areas of the company during this
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37
Strategies
Tax Breaking the Mold:
R&D Tax Credits for Mold Builders
By Michael J. Devereux II, CPA, Mueller Prost PC
Enacted in 1981 by the Economic Recovery Tax Act, the
Credit for Increasing Research Activities [also known as the
Research & Experimentation (R&E) or Research & Development (R&D) tax credit] rewards companies for the development or improvement of its products, processes, techniques,
formulas, inventions or software applications.
As a temporary provision of the Internal Revenue Code, the
R&D tax credit enjoys bi-partisan support and is one of the
most lobbied tax provisions of the Internal Revenue Code.
The credit has expired over a dozen times and is regularly
reinstated on a retro-active basis as part of various “tax
extenders” packages1.
The R&D tax credit is a dollar-for-dollar credit against the
taxpayer’s federal income tax liability. Taxpayers benefit
from the deduction in the year the expenditure is paid or
incurred (or subsequent amortization expenditure in the
event the taxpayer elects to capitalize its research costs for
federal income tax purposes) and by claiming the credit2.
Approximately 35 states also have incentives for research
and development, based upon the federal definition of qualified research. The various state R&D tax credits range from
1.5 percent to 40 percent of the eligible research expenditures, with some states requiring taxable income as a
prerequisite for utilizing the credit and others refunding any
unused credit to the taxpayer irrespective of the existence
of taxable income. Each state has its own requirements, and
state credits are only eligible for research conducted within
the respective state.
Eligible research activities and its applicability to
mold builders
The R&D tax credit is calculated based upon the expenditures attributed to a taxpayer’s qualified research activities.
There are four basic requirements for a qualified research
activity. The activities outlined below go beyond the laboratory and R&D departments and demonstrate how companies’ engineering, quality and production departments
engage in or directly support qualified research activities.
The following overview discusses the requirements and how
these activities apply to a typical mold builder:
38
the american MOLD BUILDER
spring 2014
1. Development or Improvement of a Business
Component
In order for an activity to qualify, mold builders must be
developing a new business component or improving an existing business component that is held for sale, lease or license,
or used by the taxpayer in its trade or business. Business
components are defined as products, processes, techniques,
formulas, inventions or software applications.
Applicability to Mold Builders:
Generally, mold builders are in the trade or business of
manufacturing new molds to meet their customers’ specifications. In order to do so, they may assist their customers in
developing alternative mold designs to evaluate or improve
manufacturability; develop specialized fixturing or other
tooling related to the manufacturing process; develop and
test new mold designs; experiment with different alloys or
materials of construction or invest in advanced machinery
to expand upon machining capabilities. Many times, these
products or processes qualify as business components and
the development and testing of these business components
may qualify as a research activity.
2. Eliminating uncertainty that is technological in
nature
In order for an activity to qualify, the research must be
undertaken for the purpose of eliminating technological
uncertainty concerning the development or improvement of
a business component.
Uncertainty exists if the information available to the taxpayer
does not establish the capability of developing or improving
the business component, the methodology of developing or
improving the business component or the appropriate design
of the business component.
Taxpayers are not required to be seeking information that
exceeds, expands or refines the common knowledge of skilled
professionals in the particular field of science or engineering
in which the taxpayer is performing the research. Rather,
taxpayers may rely upon existing engineering principles in
order to solve the technological uncertainty. Thus, multiple
design alternatives may establish the uncertainty required.
Applicability to Mold Builders:
Mold builders are rarely provided with the information
necessary to produce a mold to specifications. They are,
sometimes, provided with a mold design, and it’s the mold
builder’s responsibility to develop a manufacturing process
that will produce a mold that meets the customers’ specifications. The development and testing of this process is
regularly the focus of many mold builders’ research activities.
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Clearly, the process of experimentation employed by mold
builders relies upon the engineering sciences. Thus, the
development of the new processes or improvements to existing processes is technological in nature.
3. Qualified purpose of research
In order for a research activity to qualify, the research
must relate to new or improved functionality, performance,
reliability or quality.
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Strategies
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Applicability to Mold Builders:
A mold builder’s research efforts often relate to improved
functionality, performance, reliability or quality. For
example, during the development process, a mold builder
may develop numerous hypotheses regarding, but not limited
to, the following activities:
• Development of new mold designs
• Development of specialized fixturing or other tooling
• Development of prototypes or models (including
computer-generated models)
• Automation of manufacturing processes
• Development or testing of new concepts or technology
• Implementation of robotics or production logic control
(PLC) programming
• Streamlining or improving production or manufacturing processes to achieve higher standards in quality and
productivity
imentation is not limited to the research of just one of the
aforementioned alternatives, but extended to several alternatives as decisions related to one development or improvement often lead to a design conflict with another development or improvement.
Frequently, mold builders rely upon CAD modeling and
systematic trial and error, often in the form of prototype
(First Article) construction and testing. These activities
regularly qualify for the R&D tax credit.
In reviewing the four requirements of a qualified research
activity, it is apparent that mold builders engage in qualified
research in the course of business operations.
Employees across numerous departments may be engaging
in or supporting qualified research activities. For instance,
the following activities may meet the definition of qualified
research activities:
• New mold design using computer-aided design (CAD)
software
• Performance of certification testing
• Prototyping using 3-D printing and/or SLAs
4. Process of experimentation
• Experimenting with part-specific PLC programming
In order for an activity to qualify, a taxpayer must eliminate technological uncertainty by engaging in a process of
experimentation. Treasury regulations define a process of
experimentation as modeling, simulation or systematic trial
and error.
• Experimenting with new core technology
• Improving manufacturing processes through automation
• Developing or designing new, part-specific fixturing
• Performing First Article inspections on new molds
Applicability to Mold Builders:
After hypothesizing one or more of the above developments or improvements, a process of experimentation would
commence to determine whether the hypotheses could be
proven and integrated into the design. Frequently, this exper-
It is important to note that while Congress wished to reward
companies for investing in research and development, it did
not intend on all activities associated with its research to be
credit-eligible activities. Therefore, the Internal Revenue
Code and its regulations disallow the following activities:
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• Research after the taxpayer has proved the functionality of a new product
• Adaptation of an existing business component to
a particular customer’s requirement or need where
the research is not aimed at improving the business
component’s functionality, quality, performance or
reliability
• Duplication or reverse engineering of an existing
business component
• Surveys, studies, market research, routine data collection or routine quality control
• Research conducted outside of the United States
• Research in the social sciences, arts or humanities
• Research funded by grants, contracts or otherwise by
another person3
On September 5, 2013, the Treasury Department issued
proposed regulations clarifying numerous concepts related
to research and experimental expenditures. These treasury
regulations are applicable for all tax years.
The most notable clarification provides that if expenditures
qualify as research or experimental expenditures, it is irrelevant whether a resulting product is ultimately sold or used
in the taxpayer’s trade or business. This provision may have
tremendous impact for mold builders. For instance, taxpayers may be able to include labor and supplies (materials)
used in the construction of a novel, unique, one-of-a-kind
pilot model (mold) if the design is still uncertain at the time
of the mold construction.
Documentation is key
Taxpayers claiming the credit must capture information
necessary to prove that qualified research is taking place,
while connecting the employees that perform qualified
research to the activities themselves. Business documents
that many mold builders already prepare as part of the
engineering or reporting systems are the best place to begin.
Many times, these documents – including, but not limited
to, drawings, iterative designs, pictures, notes, emails and
meeting minutes – create nexus to the employees performing or supporting qualified research.
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CRY-2883 Prelim1-1.fh11 1/15/07 3:33 PM Page 1
C
Stategies
t page 41
The R&D tax credit may provide a competitive edge to
companies investing significant resources in the development or improvement of its products or processes. Taxpayers that have not claimed the credit in the past should
review prior years’ tax returns to determine whether
amending its US income tax returns is warranted. Taxpayers already claiming the credit should periodically review
its credit methodology, documentation supporting the
research expenditures, and the underlying activities to
ensure it is claiming the proper amount of R&D tax credit.
This approach is prudent to ensure that taxpayers are in line
with the IRS’ documentation requirements, recent court
cases and ever-changing treasury regulations.
Mike Devereux is Mueller Prost PC’s director of
manu-facturing and distribution services, located in St.
Louis, MO. His primary focus is on the R&D tax credit
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the american MOLD BUILDER
spring 2014
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43
Stategies
t page 42
and other tax incentives available to manufacturers.
Mueller Prost’s Tax Incentives Group is nationally recognized
and has assisted hundreds of companies in the manufacturing sector identify and utilize these incentives. For more
information, contact Mike Devereux at 314.862.2070 or via
email at mdevereux@muellerprost.com. 
The R&D tax credit is currently eligible for research expenditures incurred on or before December 31, 2013. On April
3, 2014, the Senate Finance Committee reported a bill out of
committee to extend (retro-actively) the credit for two years,
through December 31, 2015.
1
Depending upon whether the taxpayer claims the credit on
its originally filed income tax return, the taxpayer may be
required to reduce its research expenditures by the amount
of the credit.
2
Amounts payable under any agreement that are contingent
on the success of the research and thus considered to be paid
for the product or result of the research are not treated as
fund[ed]. Treasury regulation §1.41-4A(d)(1).
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APRIL
ANTEC 2014, April 28-30, 2014, Las Vegas, NV, www.antec.ws
CA L ENDA R
MAY
PLASTEC Texas, May 7-8, 2014, Fort Worth, TX, 310.445.4200, www.PLASTECtexas.com
AMBA Annual Conference, May 14-16, 2014, The Pfister Hotel, Milwaukee, WI, 847.222.9402, www.amba.org
JUNE
PLASTEC East, June 10-12, 2014, New York, NY, 310.445.4200, www.PLASTECnewyork.com
amerimold 2014, June 11-12, 2014, Novi, MI, 513.527.8800, www.amerimoldexpo.com
JULY
AMBA Plant Tour Workshop, Location TBA, July 17, 2014, 847.222.9402, www.amba.org
SEPTEMBER
IMTS 2014, September 8-13, 2014, Chicago, IL, 508.743.8535, www.imts.com
OCTOBER
PLASTEC Midwest, October 1-2, 2014, Chicago, IL, 310.445.4200, www.PLASTECmidwest.com
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45
Ad Index
A. Finkl & Sons Co...................................................... www.finkl.com ..........................................................................42
Acrisure........................................................................ www.acrisure.com........................................................................8
Alliance Laser Sales..................................................... www.thenewonesource.com.......................................................11
Alliance Specialites...................................................... www.thenewonesource.com.............................Inside Back Cover
American Mold Builders Association.......................... www.amba.org...........................................................................16
Amerimold................................................................... www.amerimoldexpo.com...........................................................9
Boride Engineered Abrasives...................................... www.borideabrasives.com.........................................................40
CGS North America, Inc.............................................. www.camtool.com......................................................................44
Cimatron Group........................................................... www.cimatrontech.com..............................................................21
Crystallume Engineered Diamond Products................ www.crystallume.com................................................................42
DME............................................................................. www.dme.net...............................................................Back Cover
Dijet.............................................................................. www.dijetusa.com........................................................................5
Ellwood Specialty Steel............................................... www.ess.elwd.com.....................................................................26
EROWA Technology, Inc............................................ www.erowa.com.........................................................................44
First American Payment Systems................................ www.firstamerican.net................................................................43
Grainger....................................................................... www.grainger.com.....................................................................25
Hasco............................................................................ www.hasco.com.........................................................................15
Incoe Corporation........................................................ www.incoe.com..........................................................................13
M & M Tooling, Inc..................................................... www.mmtooling.com...................................................................7
Makino......................................................................... www.makino.com......................................................................27
Millstar, LLC............................................................... www.millstar.com......................................................................29
Mold-Masters Limited................................................. www.moldmasters.com..............................................................37
Mold-Tech Midwest..................................................... www.mold-tech.com....................................................................7
National Tool & Manufacturing, Co............................ www.ntm.com............................................................................31
Noren............................................................................ www.norenproducts.com..............................................................8
Ohio Carbon Blank, Inc............................................... www.ohiocarbonblank.com........................................................41
Plastic Engineering & Technical Services, Inc............ www.petsinc.net.........................................................................23
Precision Laser Technology......................................... www.precisionlasertech.com......................................................12
Progressive Components.............................................. www.procomps.com/cve................................. Inside Front Cover
Rocklin Manufacturing Co.......................................... www.rocklinmanufacturingco.com............................................45
SCHMOLZ + BICKENBACH USA, Inc.................... www.schmolz-bickenbach.us.....................................................31
Superior Die Set Corporation....................................... www.superiordieset.com............................................................39
Ultra Polishing Inc....................................................... www.ultrapolishing.com............................................................19
Wisconsin Engraving Co. Inc. / Unitex....................... www.wi-engraving.com.............................................................45
YRC............................................................................. www.yrc.com.............................................................................39
AD INDEX
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the american MOLD BUILDER
spring 2014
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