Keys to Your Success in the Die Casting Industry

If I put together a laundry list of everything that should be done to improve the die casting industry in North America, I would start with improving technology. I have been in many die casting facilities around the world and have come to the conclusion that we spend far less on new equipment and machines than most of our counterparts. Even when we need another machine, we buy a used one from somewhere else. If we need a new car, do we buy a used one?

Embracing technology will be critical as the die casting industry evolves in this country. The amount of die castings on automobiles is expected to increase by 40 pounds in the next Continue reading

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Die Casting Industry Celebrate Another Year of Safety Success

WOW!!! The die casting industry has reason to celebrate its success in the area of safety. The safety numbers from OSHA in 2010, once again, have improved. Since 2002, the number of lost work day incidences has gone down for the aluminum and zinc die casting industry. In 2002, the incidence rate of lost work days per 100 equivalent fulltime workers was over 14 for the aluminum die casting industry and slightly above 9 for zinc. In that same year, our industry was listed in the top 10 industries on OSHA’s watch list for safety. Since that year, we have been on a steady decline in lost workday incidences. In 2010, aluminum die casters incidence rate was 5.5 per 100 full time workers and zinc die casting was even lower at 3.3.

Die casting equipment builders should be congratulated for keeping safety in mind as they introduce newer and faster machines. Automation has played a key role in improving safety. There are not many industries that can show improved safety by 66% since 2002 (from 14 to 5.5) and in the same time period improved productivity by 30%. The industry went from $130,000/employee in annual sales to $185,000/employee. The improvements in safety and productivity have kept our industry competitive in the worldwide market.

Die casters should be applauded for their organization of safety committees and implementing their recommendations. The attention they paid towards improving the workplace conditions is showing in the numbers and most likely in the workplace attitude. NADCA’s role in providing online safety education, videos, books, and standards have supported the emphasis placed on improving safety. The improvement in safety is not just something that has happened. It took a conscious change in the industry’s psyche to move towards looking at safety more seriously.

Finally, there is probably no greater reason for improving safety than the focus ownership and management have instituted. Leadership is always critical when changing the trend. It takes commitment and perseverance. From 1997 through 2002, lost workday cases were growing. Safety was getting worse. As this information was disseminated and discussed in great detail at many of the NADCA events, the task of creating a safer workplace took a much higher level of importance. From buying new equipment to supporting and encouraging a safe workforce, owners and managers not only talked about it, they put their support behind it.

There is still more improvement that should be made. If your incidence number in 2011 was lower than 2010, make it a goal to be lower than 2011 in 2012. If every company achieves their goal, the industry number will go down again. Each year since 2007, the number of “NADCA Perfect Safety Award” winners has increased. A perfect award winner had zero lost workday incidences in that year. If 20+ companies of all sizes can do it, so can yours.

The die casting industry safety record improvement is a significant success story that should be highlighted when you market your company. NADCA’s annual safety award program for its corporate members can help with the marketing. Also, make sure your insurance company knows about the improvements in safety for our industry. This can help, in a big way, reduce your insurance premiums. There are many reasons that can be touted for our safety success.

To view a complete list of the 2011 Safety Awards Winners please click here.

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Level the Playing Field for Manufacturers in the U.S. (from NAM)

LEGISLATION WILL ALLOW THE U.S. GOVERNMENT TO DEFEND AGAINST UNFAIR SUBSIDIES

Contact:
Jeff Ostermayer (202-637-3090)PrintRSSEmail
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WASHINGTON, D.C., 03/06/12 – National Association of Manufacturers (NAM) Vice President of International Economic Affairs Frank Vargo issued the following statement urging members of the House to support H.R. 4105 to eliminate trade-distorting subsidies:

“In order to compete against our global competition, manufacturers in the United States need a fair and level playing field. Today, members of the House can act to give our government the ability to defend against the trade-distorting subsidized exports from China that threaten jobs and growth.

We urge all members to support H.R. 4105, which will allow the Department of Commerce to continue to apply countervailing duties to non-market economies, such as China, to defend manufacturers in the United States. If Congress fails to act quickly, thousands of manufacturers will be negatively impacted, and thousands of jobs will be put at risk at a pivotal time in our recovery. Manufacturers are facing unprecedented challenges and need Washington to level the playing field in order to prevent the loss of jobs and enforce the World Trade Organization’s prohibition against subsidized exports.”

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Skilled Workforce for the Die Casting Industry

Supplying our workforce with skilled people has always been a major need in the die casting industry. You may want to look to your local high schools to partner with in order to supply your company with a pipeline of employees. An example of this in the Chicago area is Austin Polytechnical Academy (APA).

Last fall, Eric Treiber, President & CEO of Chicago White Metal Casting, Bensenville, IL, and I had the distinct pleasure to attend one of APA’s career industry partners’ meeting at the school. We were very impressed by its scope and the interaction among educators and representatives from Chicago ‘s manufacturing base.

Austin Polytechnical Academy (APA) – located on Chicago’s west side—is a college prep and career tech public high school with Continue reading

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NADCA Retools Products and Services to Increase Value

In 2011, NADCA got back on its feet with the products and services it provides to the die casting industry. We gained some momentum in 2010, but many of our efforts really took hold in 2011. We essentially retooled our organization with the ways we offered education, networking and advertising. I am very grateful to every single person that supported NADCA by ‘trying out’ our newest offerings.

We took education in a different direction by economically customizing courses for die casters. We spent the time upfront to determine the important points to be teaching at a specific facility, came back to NADCA and developed a custom course. Continue reading

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An Exploration into Social Media Marketing for the Die Casting Industry

Social media and e-commerce are interesting concepts that the younger generation is relating to more and more for business purposes. These tools make buying and selling things much easier to a wider geographic audience. The practical reality is that while it is less expensive to market products in this manner, the margins tend to be less. That is unless you are Apple and your suggested retail price is ‘the price’ that gets paid.

The B to B (Business to Business) marketing in social media is still something many people are trying to get their arms around. NADCA had an excellent presentation at their Marketing Conference in September from Dave Conklin (www.daveconklin.org). He markets himself as an “internet marketing speaker, consultant and company builder”. He appears to be an internet social media expert. He talked about Twitter, Facebook, LinkedIn, YouTube, and dozens of other social media outlets. The nearest I could figure is that he is only making money telling people about how they can use social media to market their products. I think it may work more in a B to C (Business to Consumer) setting than it works for B to B.

E-commerce to me means that you buy something electronically. So in the B to B world, companies are seeking Continue reading

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Training People to Understand Technology

Advanced technology comes in many shapes and forms. It certainly depends on what base you start with when you evaluate your own company’s advancements in technology over the last decade.  While NADCA has been involved with pushing the technology capabilities of the industry forward, we have also worked towards promoting the adaptation of basic technology which could help the operations of many die casting companies around the country.

In a recent NADCA survey, 250 die casting companies reported on their level of technology adaptation. The data showed that it’s more about leadership than it is about company size. A detailed article on this information can be found in the November issue of Die Casting Engineer Magazine. However, it is equally important to note that even if you have technology in your facility, you may Continue reading

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Where are Associations Heading?

Recently, I attended a conference with manufacturing association executives. We listened to presentations on various aspects of association management. The presentation that I was most interested in was on “The Race towards Relevance: Where are Associations Heading?” In this presentation, the presenter spoke about the new environment for associations. He listed six items that owners, managers and engineers have changed over the past ten to twenty years in regards to how an association is viewed. The six items were: Time, Value, Membership Diversity, Generational Values, Competition, and Technology.

When I related the items specifically to NADCA, the two that are difficult to put my hands around are generational values and membership diversity. It seems that if we could adapt to those two changes, we would be in a much healthier position. Not only has the membership base become geographically diversified, it has become technologically variant. This makes it much more difficult to serve a Continue reading

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Make Your Company Stronger by Attending the Die Casting Congress & Tabletop

The Die Casting Congress & Tabletop being held September 19-21 in Columbus, OH marks the first time since 2003 that NADCA has conducted a die casting event for the die casting community. For the past six years we partnered with AFS to conduct a metal casting event. While this proved beneficial to both organizations, the consensus among NADCA members is that they preferred to have their own activity. The re-establishment of our annual show has been greeted with enthusiasm, encouragement, and best of all, support. We originally thought that having 66 tabletops and offering 30 presentations would mark a great start to the NADCA Congress. We have exceeded booth sales by 25 and paper offers by 15! Now the next biggest need is industry attendance. Please consider attending and sending people from your facility to participate in this annual event. We believe there is nothing more worth the time that the industry offers. The slow economic times are behind us and it would be good to get re-engaged in the industry through participating in the Congress.
The die casting industry’s economic recovery has been robust since 2010. Gains in year-to-year shipment shave been seen from Continue reading

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“Terms and Conditions” Between Die Casters and Their Customers

I had some lengthy conversations recently with several owners of die casting operations concerning the “Terms and Conditions” being negotiated between die casters and their customers. I did some checking with NADCA’s lawyer regarding some of the situations that were conveyed. Unfortunately, the lawyer confirmed that the “Terms and Conditions” which we offer in our quotes are superseded by any conditions placed by the customer on their Purchase Order. One of the larger issues is “unlimited charge backs”. The following is from one of NADCA’s die casting members:

“To illustrate how serious this can get, we have a return from a tier1 customer that failed their leak test, after assembly. These parts passed 200% inspection, and our leak test. The customer has a policy to return parts to the die caster that failed their leak tester 3X, regardless if they can find anything wrong with the part. The total charges for each part are about equal to the part price. Add freight, administrative charges, and the cost per part is about 2X the price we sold it for. Continue reading

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