Journal of the Minnesota Precision Manufacturing Association

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Manufacturing | Mat ters Manufacturing & the International Economy ONE COMPANY’S STORY by Dan McElroy Despite the economic challenges that small businesses in Minnesota are facing as a result of the recession, some such as LaValley Industries in Bemidji, Minn., are thriving and lending a hand where it’s needed most. Jason LaValley, president of LaValley Industries and designer of the DECKHAND®, a versatile pipe-handling device, offered modified equipment to assist with the recovery in Chile from February’s massive earthquake. Handling large pieces of pipe of all sizes and weights can be a dangerous business. Workers in the directional drilling industry—deckhands—can be knocked about and injured in falls. Jason’s concern about workplace injuries led to his development of the DECKHAND® prototype, built out of his own pocket. The new DECKHAND® provides total operator control and frees up the human deckhands to clean the work site, fix broken parts and work on other tasks. New business opportunities in Chile may await LaValley Industries, stemming from Jason’s participation in Governor Pawlenty’s trade mission to South America last December. Oil and gas field machinery and services rank among the best prospects in the Americas for exporters, and Jason met with Komatsu Chile, which manufactures and sells construction and mining equipment, utilities, and industrial machinery. And while nothing is firmed up yet, he’s looking for a DeckHand® distributor in South America. Our Northwest Regional Small Business Development Center (SBDC) helped Jason and his father, Roger, launch the business. The SBDC has assisted with loan packages, accounting advice, marketing and management expertise, and connected Jason with other business assistance resources. Currently, the SBDC is helping Jason obtain additional investor equity. Our export markets are showing signs of recovery, and exports increased in seven of our state’s twenty largest markets. Clearly, the entrepreneurial Jason has a product in demand in the international economy. We also think his success can be attributed to his ability to leverage the many programs and services offered by the Department of Employment and Economic Development (DEED), from the Minnesota Trade Office to labor market information to Minnesota SBDCs. State Exports in 2009 What do annual export numbers tell us about 2009, and what do they portend for the future of small manufacturers such as LaValley Industries? Minnesota manufactured exports were $14.6 billion in 2009, declining 15.5 percent in the midst of an economic downturn. Nationally, U.S. exports fell 18.3 percent for the same period. Minnesota ranked 20th largest in value among all states, unchanged from 2008. Our export markets are showing signs of recovery, and exports increased in seven of our state’s 20 largest markets. The 6.3 percent drop in the fourth quarter of 2009—much smaller than in previous quarters—is a harbinger of a brighter outlook for 2010. We look forward to increased economic activity from LaValley Industries and others appearing in annual export statistics this year. In 2009, Minnesota exports increased to the following seven top 20 trading markets: China ($1.3 billion, up 1 percent), Ireland ($897 million, up 1 percent), Australia ($423 million, up 5 percent), Singapore ($386 million, up 1 percent), Malaysia ($285 million, up 72 percent), Taiwan ($279 million, up 1 percent) and Thailand ($182 million, up 5 percent). Five of the countries with increased exports in 2009 were in Asia, pointing to encouraging business prospects in 2010. Asia was the state’s second-largest source of exports by region, after North America. Minnesota exports of computers and electronics were valued at $3.4 billion. Other manufacturing industry exports are: machinery ($2.4 billion), miscellaneous, including medical products ($1.9 billion), and food ($1.2 billion). Combining total manufactured exports with preliminary estimates of Minnesota’s exports from agricultural commodities (about $3.5 billion) and services ($9.1 billion), the state’s total exports for 2009 were estimated at $27 billion. Minnesota Trade Office The Minnesota Trade Office, an office of DEED, is focused on increasing state export sales in foreign markets. The Trade Office promotes international trade by providing export information, export education and training, and one-on-one counseling to Minnesota companies that wish to sell manufactured goods and services in the international marketplace. Remember you can find out more details about DEED, our services and programs at www.PositivelyMinnesota. com. We’re using social media, too. Follow us on Twitter at www.twitter.com/PositivelyMN. PM Dan McElroy is the commissioner of the Minnesota Department of Employment and Economic Development (DEED). He can be reached at 651.259.7114. 30 | PRECISION MANUFACTURING July | August 2010
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Page 3 and 4: IMTS 2O1O Minnesota Precision Manuf
Page 5 and 6: TABLE | OF CONTENTS July | August 2
Page 7 and 8: The FEDERATED Insurance Companies H
Page 9 and 10: PM: What do you expect from IMTS 20
Page 11 and 12: JOIN MPMA AT IMTS 2010 Hegman Machi
Page 13 and 14: cover | IMTS 2010 Ellison Technolog
Page 16 and 17: Now is the time to take your shot!
Page 18 and 19: shop | profile Razor Edge Systems,
Page 20 and 21: MADE | IN MINNESOTA Transforming th
Page 22 and 23: 3 Locations to serve You: Burnsvill
Page 24 and 25: Makino ADVANTiGE Visit us at IMTS,
Page 26 and 27: Industry Profile Yeager Machine Th
Page 28 and 29: Industry Profile Yeager Machine Pr
Page 32 and 33: in a Down Economy by Melissa DeBilz
Page 34 and 35: Manufacturing | Marvels Getting a C
Page 36 and 37: Industry Profile | Command Tooling
Page 38 and 39: 38 | PRECISION MANUFACTURING July |
Page 40 and 41: What’s Happening at Mpma? MPMA Ma
Page 42 and 43: MANUFACTURERS’ | MARKETPLACE Mach
Page 44 and 45: MANUFACTURERS’ | MARKETPLACE Comp
Page 46 and 47: MEMBER | DIRECTORY 4.625” x 7.375
Page 48 and 49: MEMBER | DIRECTORY Minnesota State
Page 50 and 51: 17,000 sq. feet. booth # S-8100 Vis
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Journal of the Minnesota Precision Manufacturing Association

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