November 2002 - CTMA: : The Canadian Tooling and Machining ...

Canadian Tooling & Machining Association November 2002
CTMA VIEW
L
LES PAYNE ELECTED
AS NEW CTMA PRESIDENT
Les Payne (left) is congratulated by Ed Glover (right)
as he begins his first term as President of the CTMA
eslie Payne of Universal Pattern Co. Ltd.
(Cambridge, Ontario) was recently elected President
of the Canadian Tooling & Machining Association at the
Annual General Meeting & Conference held September
27 th , 2002 in Grand Bend, Ontario.
Les has been serving the association for many years in
various capacities including Vice President, Treasurer
and even worked on staff as the General Manager for 7
years. He has also made a significant contribution on
many of the CTMA’s working committees.
Congratulations to 4 new Board Members Robert Cattle
of Micrometric Ltd., Colin Docherty of ThyssenKrupp
Heat Treatment, Ron Spraggett of Tipco Inc. and Mike
Walker of Valiant Machine & Tool Inc. We look forward
to your ideas and contributions to the association!
A complete list of the 2002-2003 Board of Directors can
be found on Page 2. Members are encouraged to
contact any of the Board Members with any ideas or
concerns that you may have.
WELCOME
RECENT NEW MEMBERS
Airtronic Metal & Machine Parts Toronto Chapter
Dell Will Customs Brokers Inc. Windsor Chapter
Grid Industrial Supply Toronto Chapter
INDUSTRY ASSOCIATIONS
HOLD INAUGURAL
JOINT BOARD MEETING
eptember 13 th , 2002 was what the CTMA hopes will
be a very historical day. On that day the Canadian
Tooling & Machining Association (CTMA) hosted the
inaugural meeting of the Joint Board of the Canadian
Machine, Tool, Die, Mould industry associations in an
effort to bring the associations together.
Representatives from the Canadian Association of
Moldmakers (CAMM), the Canadian Pattern-
Modelmakers Association, the Canadian Plastics
Industry Association - Moldmakers Division (CPIA) and
the Automotive Parts Manufacturers’ Association
(APMA) met with CTMA representatives to discuss the
creation of a Joint Board for the machine, tool, die and
mould industries. Representatives from the Canadian
Die Casters Association (CDCA) were unable to attend;
however, they expressed support for the initiative and
hope to participate in future meetings.
Other Breaking News:
Thank You, Thank You, Thank You............ 3
AGM & Conference.................................. 3-5
US – ITC Report Summary....................... 7-8
Cost of Apprenticeship by Employers........ 9
Apprentice Competition Winners ........ 10-11
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S
Front (L-R): Jamie Bowman, Ed Glover, Jamie Rivait, John
Novosel, Jr., and Ed Regan
Back (L-R): Ed Bernard, Horst Just, Les Payne, Gerald
Fedchun, Charmian Entine, Miguel Petrucci & Nick Durante

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CTMA BOARD OF DIRECTORS
President:
Leslie Payne, Universal Pattern Co. Ltd.
Tel: (519) 622-8667 Fax: (519) 622-5758
Vice President:
Jamie Bowman, J.P. Bowman Limited
Tel: (519) 752-6533 Fax: (519) 752-0672
Treasurer:
Horst Just, H.J. Machine & Pattern Ltd.
Tel: (519) 746-7077 Fax: (519) 746-6872
Past President:
Ed Glover, Harbour Advanced Machining
Tel: (519) 969-0641 Fax: (519) 969-0451
Chapter Chairs:
Toronto
Ron Spraggett, Tipco Inc.
Tel: (905) 791-9811 Fax: (905) 791-4917
Western Ontario
Jamie Bowman, J.P. Bowman Limited
Tel: (519) 752-6533 Fax: (519) 752-0672
Windsor
Colin Docherty, ThyssenKrupp Heat Treat
Tel: (519) 737-1568 Fax: (519) 737-1613
Directors:
Paul Brisebois, Anchor Lamina Inc.
Tel: (905) 274-3448 Fax: (905) 274-7303
Robert Cattle, Micrometric Ltd.
Tel: (416) 291-1974 Fax: (416) 291-5011
Horst Schmidt, Build-A-Mold Limited
Tel: (519) 737-6984 Fax: (519) 737-6572
Mike Walker, Valiant Machine & Tool Inc.
Tel: (519) 974-5200 Fax: (519) 979-5532
Staff:
Louis M. Papp, Executive Director
Julie McFarlane, Office Manager
Corey Brunsveld, Finance
Susan Kemp, Office Clerk
CTMA VIEW is published quarterly, and
features articles and information of
interest to members and others allied to
the precision metal cutting industry. To
receive additional copies of this
publication, or to make comments or
submissions, please contact us at:
Canadian Tooling &
Machining Association
140 McGovern Dr., Unit #3
Cambridge, ON N3H 4R7
Tel: (519) 653-7265
Fax: (519) 653-6764
Email: info@ctma.com
www.ctma.com
NEW CTMA MEMBERS
Airtronic Metal and Machine Parts
22 Golden Gate Court
Toronto, ON M1P 3A5
CONTACT: Ramon P. Garcia
Tel: (416) 298-9299 Fax: (416) 298-2731
Website: www.airtronic.com
Email: airtronic@airtronic.com
� � � �
Dell Will Customs Brokers Inc.
1670 Mercer Street
Windsor, ON N8X 3P7
CONTACT: Ron Bisnaire
Tel: (519) 258-3141 Fax: (519) 258-0257
Website: www.delwill.com
Email: r.will@dellwill.com
� � � �
Grid Industrial Supply
21 – 600 Bowes Road
Concord, ON L4K 4A3
CONTACT: Mike Vrsic
Tel: (905) 738-4222
Fax: (905) 738-4278
� � � �
A SPECIAL THANK YOU
TO THE FOLLOWING
RETIRING BOARD MEMBERS
FOR YOUR MANY YEARS
OF SERVICE TO THE CTMA
Graham Harding
Harding Management & Technical
Services
Volker Hohensee
Espar Heater Systems
Bill Potter
Reference Tool Inc.
Ivan Stark
Stark Consulting
OOPS … We Goofed!!
THANKS TO
REFERENCE TOOL INC.
FOR YOUR SUPPORT OF THE
4 th ANNUAL SPRING
CONFERENCE & GOLF
TOURNAMENT
We’re very sorry that we missed
you in the list of sponsors
in the August issue
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A Perspective By Les Payne, President,
Canadian Tooling & Machining Association
Les Payne,
President, CTMA
THANK YOU, THANK YOU, AND THANK YOU AGAIN
Thanksgiving was not so long
ago. It is one day that we take
the time to stop and say “thank
you” for all that we have. While
we may complain about many
things in Canada, we must all
stop and ask ourselves “where
else would one wish to live?”
When we do this, we realize that
we are truly very fortunate here in
Canada!
I would personally like to start by thanking the Board of
Directors of the CTMA for electing me as President for
2002-2003. It is indeed an honour. If my “watch” goes
as well as sailor Ed’s I may even enjoy a second term.
Is that time and a half pay for the second year guy’s?
The vitality and very existence of the association is
dependant upon the support it receives from its
members, its volunteers and its event sponsors who all
contribute to the well-being of the association – and for
this I thank you all. It is incredible the amount of time
and effort given by so many busy people to the CTMA.
It is this dedication that has built the very high profile that
the CTMA enjoys today. This collective effort has as
much value as the financial equity of the association –
but how can one put a value on this?
The Board of Directors, under the leadership of our
Past-President Ed Glover, has made some major
decisions to build both our financial position and also
increase our number of volunteers.
I am thrilled that the Board has four new Directors
joining us this year, which I believe is a “first”. They will
each bring new ideas, enthusiasm and industry
knowledge to the table.
The Chapter Executive Committees look pretty good and
we are hoping for sound support for this year’s
meetings. I encourage everyone to “bring a friend” to
the next meeting and help us build the membership base
of YOUR association. I’m reminded of a comment from
Ross Strickland (former General Manager) who believed
that “without the Chapters and their meetings, we have
nothing”.
This year’s Apprenticeship Competition was personally
very rewarding for me. To see this activity reach this
level of financial support in just 9 years is astounding!
The winning entries were excellent and the prize table
was superb. The increase in the George Shaffer Fund is
wonderful!
We all face a number of negative issue’s going into this
year, such as the instability of the economy, the U.S. ITC
investigation, and potential Canadian steel tariffs.
Fair Trade must replace Free Trade soon; otherwise we
should all stop manufacturing and become importers. I
cannot imagine that the United States will allow many
more total platforms to be shipped offshore before acting
– hopefully to the benefit of North America.
Our discussions with the Canadian Association of
Moldmakers (CAMM) are proving beneficial to both
groups and we hope for a successful conclusion within
the next six to eight months.
I would be remiss not to also thank the staff at the CTMA
office, Lou Papp, Julie McFarlane, Corey Brunsveld and
Susan Kemp, who provide your Board of Directors with
excellent support.
For me … all I have to do is nod at the right time!
In closing, I wish much success to all CTMA members
and I look forward to meeting you at an upcoming event.
REMINDER !!
WAGE & BUSINESS SURVEY 2002
By now members will have received their 2002
Wage & Business Survey questionnaires.
REMEMBER, in order to receive the results,
you must participate … be sure to take some
time to complete your questionnaire and
submit it to the CTMA office.
The Annual Wage & Business Survey is a
valuable human resource tool, providing
important industry information such as:
• Wages for more than 100 Employee
Classifications
• Shop Charge-Out Rates
• Financial Benchmarking Statistics
• Sales Per Employee / Year, etc.
If you have any questions, or need a copy of
the questionnaire, please contact Julie at the
CTMA office Tel: (519) 653-7265 Email:
info@ctma.com.
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O
2002 ANNUAL GENERAL MEETING & CONFERENCE
akwood Inn Resort & Golf in Grand Bend was the
site for the CTMA’s 2002 Annual General Meeting &
Conference, September 27 th to 29 th , 2002.
The activities of the weekend were planned to maximize
the use of members’ time in covering the business
agenda, but also to allow members and their families
plenty of time to enjoy the full amenities that the resort
and area had to offer.
We take this opportunity to extend a huge THANK YOU
to our sponsors for their financial support. Without your
assistance this event wouldn’t have been successful!
Donna & Gary Koenig join the CTMA in thanking
all of the AGM & Conference Sponsors
Friday began with a Board of Directors meeting, followed
by the 9th Annual Apprenticeship Competition Awards
Luncheon (see article on pages 8 & 9). Mr. Miro Suga of
Ford Motor Company presented the Keynote Address
and gave a very interesting perspective on
Manufacturing Trends and the future of the Automotive
Industry.
Ed Glover, Past-President,
thanks Miro Suga of Ford
Motor Company
for his Keynote Address to
CTMA members on
Manufacturing Trends in the
Automotive Industry
Paul Brisebois,
Conference Chair, thanks
Marge Byington & Garry
Fortune for their
presentation on the Detroit
River Tunnel Project
Garry Fortune & Marge Byington from the Detroit River
Tunnel Partnership also made a presentation to inform
members of the plans to create the Windsor-Detroit
Tradeway for commercial road and rail traffic.
The Annual General Meeting of the association followed
the Luncheon where the Board of Directors presented
their reports on activities over the past year and
elections were held for 2002-2003.
A fun time at the Family Hawaiian Luau
Delegates and their families enjoyed a Family Hawaiian
Luau on Friday evening, complete with cocktails, dinner,
hula dancing, limbo, and entertainment.
On a fabulously sunny Saturday, the Family Golf
Tournament was a sell-out in the morning and the
Tennis Tournament in the afternoon was also a popular
pastime.
Many also took advantage of the opportunity to enjoy the
many other activities available at the resort, took a walk
along the beach, did some shopping, or simply rested
and relaxed!
WINNERS OF THE EARLY BIRD DRAW !
Robert & Elaine Cattle of Micrometric Ltd.
receive a basket of “goodies” from Paul Brisebois
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4

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It was time to dress up on Saturday night for the
President’s Dinner & Dance, the 39th coming of “I See A
Bear” and a Ladies’ Gift Exchange, which is always a big
hit! While the adults were busy, the children enjoyed the
“Kids’ Night Out” with make-your-own pizza, movies and
other activities.
Trophies and Awards for the winners of the Golf and
Tennis Tournaments were presented after a delicious
Brunch on Sunday.
This was the second year that the AGM & Conference
incorporated a family format and with the positive
response we’ve received, we plan to continue with this
format.
The feedback from this year’s conference was so
positive that, based on recommendations from many
members that attended, we’re going back to the
Oakwood Inn for next year’s event. Mark your
calendar for SEPTEMBER 26 TO 28, 2003 – and we’ll
see you there for another fantastic CTMA weekend!
The CTMA thanks
Ed Glover of Harbour Advanced Machining Ltd.
for his hard work and dedication to the association as his
2-year term as President of the CTMA comes to a close.
MORE AGM & CONFERENCE
NEWLY ELECTED BOARD OF DIRECTORS 2002-2003
Les Payne, Paul Brisebois, Ron Spraggett, Horst Schmidt,
Ed Glover, Mike Walker, Jamie Bowman, Robert Cattle
Missing: Horst Just, Colin Docherty
Saturday afternoon Tennis Tournament
Horst Schmidt welcomes Beth Bailey with open arms
during the Ladies’ Gift Exchange.
Low Gross Winners – Golf Tournament
Paul Brisebois congratulates Tom & Cindy Lauzon
and Ted & Theresa Callighen
How Low Can You Go?
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5

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Fred Binder, Jr. & Kathleen Montello, BTM Tooling Inc.
Aurelien Roy, Royal Pattern Industries Ltd.
and Peter Lidster, Exactatherm Limited
Roy & Luella Verstraete, Anchor Lamina Inc.
PRESIDENT’S DINNER & DANCE 2002
Mike & Cathy Walker, Valiant Machine & Tool Inc.
Paul & Laurie Brisebois, Anchor Lamina Inc
Rick & Helen Bastow, Kaller Gas Springs
Paul and Norah Dallimore, Tipco Inc.
Jamie & Melissa Bowman, J.P. Bowman Limited Terry & Joan Bachmeier, ThyssenKrupp Heat Treatment
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6

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A SUMMARY OF THE US INTERNATIONAL TRADE
COMMISSION REPORT INTO TOOLS, DIES, AND
INDUSTRIAL MOULDS:
EDITOR’S NOTE: The following article has been prepared
by the Canadian Department of Foreign Affairs &
International Trade (DFAIT). It is an excellent executive
analysis of the US ITC Report and covers the key points that
everyone in our industry should be aware of.
On January 10, 2002, further to a request by the House
Ways and Means Committee, the United States’
International Trade Tribunal (ITC) undertook a fact-finding
investigation, referred to as a Section 332 investigation.
The purpose of this investigation was to examine the
competitive condition of an industry in the US and selected
foreign markets. The countries named in this investigation
were Canada, Taiwan, China, Japan, Mexico, and EU
countries. The ITC report was submitted to the requester
on October 21 and subsequently, was made public on
October 28, 2002.
Key Issues identified in the US TDM Sector:
1) The current state of the US economy (downturn and
slow recovery).
2) A domestic market shrinking because manufacturing is
migrating offshore.
3) 25 -- 30% industry over-capacity due to the shrinking
market and increased productivity brought on by
adopting more productive technologies.
4) Customer pressure for lower prices and
better/faster/more services.
5) Foreign competition.
6) Rising costs, particularly regarding labour and health
care.
The US Industry:
• Approximately 7000 firms participating.
• About 128,000 employees with labour costs accounting
for the largest component of production costs for US
TDM’s.
• Domestic consumption nearly $16 billion.
• Generally small businesses (90% + with less than 50
employees).
• Concentrated in the industrial belt: Michigan, Illinois,
Ohio, California, Pennsylvania, Indiana, and Wisconsin.
• Investment (where it occurs) focuses on hardware and
software geared to decreasing lead-time, increasing
productivity and maximizing capacity.
US Industry Dynamics:
• Attrition in the order of 200 - 400 firms estimated in the
report period (3 years).
• A rising trend in wages and shipments 1997 - 2000.
INTERNATIONAL NEWS
• Dramatic fall in shipments in 2001 - 2002 (20%) as well
as significant reductions in workforce and average
weekly hours.
• Sharp decline in contribution (evidenced by the reported
operating income to net sales ratio below one percent
for 2001) - double the number of companies reported
losses on a net income before tax basis.
• Estimated over-capacity in the range of 25 - 30%.
International Trade Trends:
• Canada is the largest US trade partner accounting for
41% of US TDM import value in 2001. Other important
trade partners include Japan with 33% of import value.
• Between 1997-2001, US TDM imports from China and
Korea rose by 191% and 248% respectively.
• Other than Canada, the US’ major export market is
Mexico accounting for 27% of total TDM export value in
2001.
• The value of imports as a share of US consumption
remained stable between 1997-2000. Data suggests an
increase in imports in 2001.
• Trade in TDM’s is free of duty within NAFTA. Otherwise,
tariffs on dies range from 2.9% - 5.7% ad valorem and
for moulds, tariffs range from 0% - 3.8% ad valorem
while tariffs in China and Taiwan are relatively high (up
to 19% ad valorem).
Canadian TDM Industries:
• Canadian and US TDM industries share similar
characteristics such as the availability of advanced
technologies, the importance of the automotive sector,
and large number of establishments with fewer than 50
employees.
• The US is Canada’s leading trading partner, exceeding
trade with all other countries combined.
• Some US industry sources contend that with the
exchange rate, prices of Canadian-produced TDM can
be as much as 40% lower than comparable US
products. However, Canadian industry leaders noted
that costs for raw material and capital costs in both
countries are comparable i.e. input materials are
purchases in US dollars, therefore given little or no cost
advantage to Canadian TDM producers.
• Most important challenges for the Canadian TDM’s are
the increasing share of foreign-owned automotive
manufacturers that often source tooling from non North-
American firms, payment delays (sometimes more than
1 year after delivery) by automotive firms, and large
TDM customers moving production to offshore
countries.
Other Producing Countries/US Imports and Exports
• Japan and the EU ship significant tooling to the US and
face similar difficulties as their US counterparts.
• A noticeable trend showing migration of "commodity"
tooling moving to low cost and lower quality regions (e.g.
Chinese wages are among the lowest in the world).
(Continued on page 8)
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7

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SUMMARY OF US ITC REPORT
(Continued from page 7)
• Mexico has limited capabilities, and imports significant
tooling.
• Geographic proximity to where moulding and further
processing occurs has a significant impact on tooling
purchase decisions.
• Complexity of the tools and quality demands of the
product/customer also have significant impact on TDM
purchase decisions as well as the ultimate location of
moulding and further processing.
Improving Competitive Abilities for US Industry
(recommendations from industry leaders):
• The formation of an industry-wide consortia in areas of
marketing and technical cooperation.
• Operational improvement (e.g. investing in modern
machinery, reducing lead times...).
• Changes in US laws and regulations (e.g. investment tax
credit).
• Allowing trade association to purchase group healthcare
plans.
• Increased use of subcontracting.
• The formation of buyer groups for the purchase of
materials and supplies.
• Opening design offices in foreign countries.
ASSESSMENT:
As automotive goes, so goes the NAFTA TDM market, as
automotive accounts for almost 50% of all tooling
purchases in the region. Much of the malaise of the tooling
market in the recent past is directly related to the
automotive industry delaying and canceling new car
programs. Traditional North American TDM’s have
continued to serve North American automakers exclusively.
As more of the market share is captured by the “new North
American” automakers, the less demand there will be for
TDM’s within the traditional market. In many cases, new
North American automakers have brought their offshore
TDM’s with them, increasing the over-capacity issues.
Further compounding this downturn is the current trend
toward offshore migration of manufacturing in general as
other customers of the TDM’s pursue reduced overall costs
of finished goods brought about by using inexpensive
labour -- particularly in the Pacific Rim. Cases in point
include air conditioners, vacuum cleaners, radios, power
hand tools, and telephones. This is particularly attractive
where the products considered are small, light, easily (and
cheaply) shipped, and do not require particularly skilled
work forces, precision tooling nor sophisticated production
support.
Time to market has become a key consideration in sourcing
decisions. Tooling lead times have been ratcheted down by
about 25% over the study period, and pressure to reduce it
further is present. Assuming equal access to technology,
time can only be reduced through maximizing production
time. Asian suppliers are noted for the ability to operate on
a 24-hour basis. Considerable interest exists worldwide for
“lights out” operation where machines are programmed to
continue production in the absence of human supervision at
night or on weekends.
The equipment (productive) technology gap, which existed
between continents is narrowing, and may soon cease to
be a factor. Modern equipment is shipped worldwide.
Advances in the capabilities of metal cutting equipment
place less emphasis on traditional metal cutting skills, and
more on programming skills, which exploit the capabilities
and features built into modern equipment.
It is suggested that the traditional 5-year apprenticeship is
no longer required and entry-level skills required for new
technologies are reported to be taught within 2 years in
some markets. In general, the market seems to favour
those companies who can recognize, buy and master new
productive technologies, and combine it with innovations in
process and raw materials’ technology to create short-term
profitable niches. Successful innovators manage the
highest risk and reap the greatest rewards.
Profitable TDM's tend to be those who can innovate - find
creative means to reduce costs for their customers by
adapting/combining new technologies in tool design and
fabrication, as well as raw materials’ manufacturing and
assembly processes.
Cost pressures for less innovative TDM's have limited their
ability to take advantage of new equipment improvements
and make R&D investments required to find and exploit
niches and innovative cost reduction opportunities.
For access to the full 238 page report (USITC Publication
#3556, October 2002) visit www.usitc.gov OR
www.ntma.org/Media/Edocs/ITC_Final_Report.pdf
Make sure your company
gets its R&D Tax Credits!
The Canadian and Ontario Governments both have tax
incentive programs to encourage companies to do
R&D.
These programs combined can reimburse your firm
up to 70% of the R&D labour cost, as a cash refund
or investment tax credit.
From our experience with the tooling industry, we
know that many plants have a lot of experimental
development taking place on the shop floor.
The key to getting the tax credits is preparing a claim
that properly documents the R&D work and the
associated costs. We can help you do this.
Call Jim Moore in Windsor at (519) 944 0411.
Moore Global
A MEMBER OF THE
Magna Moore Group
R&D Tax Credit Specialists
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COST OF APPRENTICESHIP BORNE BY EMPLOYERS
A third party study, conducted by R.J. Sparks Consulting
and WGW Services Ltd., that was initiated by and funded
by Human Resources Development Canada (HRDC)
entitled “The Cost of Apprenticeship Borne By Employers”
was recently released.
The purpose of the study was to identify and quantify the
economic costs of apprenticeship training that are borne by
the employer. It found that, for example, the net cost to an
employer to train a Tool & Die Apprentice over a 4-year
period (8,000 hours) is $125,910.00 (Cad). The study also
found that it takes 5 years for an employer to fully recover
these training costs.
This places real economic pressures on the small and
medium sized shops that are carrying out the majority of
apprenticeship training across the country. In addition,
these firms frequently lose the developing skills, through the
poaching process of some of the larger firms in the industry,
before they are able to recoup these costs.
The apprenticeship system in Canada has been subject to
close scrutiny and review for a number of years. Much
attention has been paid to encouraging young people to
consider a career in the apprenticeable occupations/trades.
However, in order to produce additional skilled
tradespeople, there must also be a training infrastructure
sufficient to accommodate more apprentices.
The scope of the study was the machining and tooling
trades in Ontario, which includes General Machinists, Tool
& Die Makers, Tool Makers, Mouldmakers, Machine Tool
Builders/Integrators and Patternmakers. As apprentices
only spend approximately 10% of their training time learning
through the in-school component, this study focused on the
on-the-job training component with a view to quantifying the
cost of this training.
The report identified many costs that are associated with
carrying out on-the-job training. It found that not only are
employers absorbing costs associated with lost productivity
of both the apprentices and the journeypersons who train
them, but it also absorbs many other indirect costs that are
also incurred.
The report found that the cost burden is “front-end loaded”
meaning that the cost decreases each year of the
apprenticeship program. Further, the net revenue from an
apprentice rises each year and the investment risk also
diminishes the longer the apprentice works for the
employer.
The report concludes that, in order to accomplish the
expansion of the apprenticeship system, employers would
be required to take on additional risk and potential costs
unless inducements are provided.
The CTMA’s Apprenticeship Training Tax Credit Proposal
that is before the Federal Government hopes to provide
employers with the needed assistance.
EDITOR’S NOTE:
Thanks Mike for
your kind words.
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9TH ANNUAL APPRENTICESHIP COMPETITION WINNERS
Congratulations to all the participants in the 9 th Annual
Apprenticeship Competition and many thanks to the
companies with which they are apprenticing for allowing
them to participate.
The competition took a
different approach with the
categories this year. All of the
industry trades (tool & die,
mouldmaking, general
machining and patternmaking)
were combined together and then divided into two
categories based on the time served in the entrant’s
apprenticeship. All competitors submitted a common
test piece, which was a Precision Fly Cutter. The
apprentices in their first or second year (with less than
4,000 hours) were entered into the Junior Category and
apprentices in their third or fourth year (with 4,000 to
8,000 hours) were entered in the Senior Category.
The accuracy of the entries was judged by the results
of a CMM report and other criteria that were also used
to declare the winners. The excellent quality of the
entries made the judging a significant challenge for the
Committee.
2nd Place – Senior Category
Rob Alexander, Canadian Progressive Tool & Transfer
Winners in the Senior Category are presented with
their own Mastercam software & training package that was
generously donated by In-House Solutions Inc.
APPRENTICES TAKE HOME
$18,260.00
IN CASH, AWARDS & PRIZES
Winners were congratulated and presented with their
awards by Carol Olinski of the Ontario Ministry of
Training Colleges & Universities and Ed Glover, Past-
President of CTMA at a
special Apprenticeship
Awards Luncheon on
September 27 at the
Oakwood Inn Resort & Golf
in Grand Bend, Ontario.
The generous financial and
in-kind support from many CTMA members (see the list
of sponsors on page 9) contributed to a very successful
event. Thanks to everyone involved – we couldn’t have
done it without you!
1 st Place – Senior Category
Mark Tesky, Valiant Machine & Tool Inc.
3rd Place – Senior Category
Brent Woynarski, Blount Canada Ltd.
CONGRATULATIONS
HONOURABLE MENTIONS
SENIOR CATEGORY:
Mike Mailloux, Oetiker Ltd.
Mike Struna, Canadian Progressive Tool & Transfer
JUNIOR CATEGORY:
Phil Dyson, Hallink Moulds Ltd.
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10

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9 TH ANNUAL APPRENTICESHIP COMPETITION WINNERS (CONTINUED)
1 st Place – Junior Category
Ron Lushman, Blount Canada Ltd.
2 nd Place – Junior Category
Philip Worthington, Blount Canada Ltd.
3 rd Place – Junior Category
Derek Gorski, Reko Tool & Mould Inc.
Employer’s Award of Excellence – Senior
OUR THANKS TO THE FOLLOWING FOR THEIR
SUPPORT OF THE APPRENTICESHIP COMPETITION
THROUGH THE
GEORGE H. SHAFFER EDUCATION FUND
Blount Canada Ltd.
Build-A-Mold Limited
Burloak Tool & Die Ltd.
C & B Products Co.
Canadian Measurement-Metrology Inc.
Canadian Progressive Tool & Transfer Ltd.
Colby Manufacturing Ltd.
Densmore Tool & Die Works Limited
Frank J. Cox Sales Limited
G. S. Die & Design Inc.
H. J. Machine & Pattern Ltd.
Hallink Moulds Ltd.
Harding Management & Technical Services
Hartford Technology Ltd.
In-House Solutions Inc.
J. P. Bowman Limited
Janko Peric (MP Cambridge)
Manor Tool & Die
McTear Tooling
O S G Canada Ltd.
Oetiker Limited
Prothane Limited
Ross Strickland
Ryka Blow Molds Ltd.
SECO Tools Canada Ltd.
SOWA Tool & Machine Co.
St. Clair College
Tate Industrial Sales
Tipco Inc.
Universal Pattern Co. Ltd.
Valiant Machine & Tool Inc.
William Rowney
YOUR SUPPORT IS GREATLY APPRECIATED
Employer’s Award of Excellence – Junior
Ken Darke accepts for Blount Canada Ltd.
Phil Briand accepts for Valiant Machine & Tool Inc.
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11

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KALLER GAS SPRINGS
Rick Bastow (R) & Mike Ambrogio (L) receive
plaque from Paul Brisebois, Membership Chairman
The Importance of Financial Planning
For the Small Business Owner
Once the dream of few, owning a business has
become a reality for thousands of Canadians. As
an independent business owner, you can enjoy
freedom, control and prestige while maintaining
your income stream and building equity for the
future.
But every business owner is faced with
questions—How to manage your personal and
business life to realize your hopes for the future?
Do you want your business to grow, to branch
out? Do you want to retire early? Or see your
children continue in your business? Successful
business owners have found the answers in
financial planning.
There is no secret to financial planning. It simply
means paying attention to your money today,
planning for your future and monitoring your
progress. Your life and business will evolve over
time. Have a financial consultant help you set up
a sound financial plan today.
RECENT MEMBERSHIP PLAQUE RECIPIENTS
EXACTATHERM LIMITED
Peter Lidster receives membership
plaque from Ed Glover, Past-President
HUMAN RESOURCE AND
ACTUARIAL CONSULTANTS
Calgary � Fredericton � Halifax � Harrisburg �
London � Montreal � Pittsburgh � Quebec City �
St. John’s � Toronto � Vancouver
Joining together to serve members’ needs.
For further information please contact
Anne Carson at 519-438-0193
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12

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From the Desk of Gary Koenig
Some time before September 11 th , 2001 I wrote a short article about future rate increases in the insurance market.
At that time we could see that anticipated consolidation by insurance companies would create what we in the
business call a HARD MARKET. Results of such market conditions are always tighter underwriting and increases
in rates.
In FEBRUARY OF 2002 I followed up that article with the excerpt shown here: Quote ---- [‘’ We have now
plunged into unprecedented market conditions that I personally have not experienced in over 40 years in the insurance business. As
stated before, due to consolidation, we have lost a considerable large number of companies (and this is still continuing). The
remaining companies are now severely restricting what they will write and at the same time increasing their rates substantially.
What does this mean to you in the Tooling & Machining Industry? Well for starters, your premiums could rise as much as 40% and in
some cases they might double. Next we have a problem with US exposure. The majority of insurance companies will no longer
provide Products Liability Coverage for your US sales and those that do will do so only on a very restricted basis at very high
premiums (5 to 10 times the Canadian rate) with DEDUCTIBLES as high as $10,000.00.
Which companies will be most affected by all this? All those engaged in the manufacture of critical parts (aircraft-automotive etc.),
all companies manufacturing or repairing machinery and all companies with US sales.
MEMBERS OF CTMA are not immune from all of this. We feel that the effects will be minimized through your association’s Affinity
Program. IF YOU HAVE NOT YET PLACED YOUR INSURANCE through this program, I would suggest you contact us for a
comparative quote as soon as you receive your current carrier’s renewal notice.’’]--end of quote.
That was then and this is now ----- at the time of this writing the consolidations are continuing and the insurance market is still
shrinking and rates are still going up and we are anticipating US Deductibles to go up to $20,000 in the new year. Fortunately CTMA
together with Gary F. Koenig and P.W. Harrison & Son, have had a long and healthy relationship with The Citadel Insurance
Company, which in turn, has put forward every effort to keep the rate increases to a minimum for CTMA MEMBERS. Their effort is
certainly appreciated in this regard and I am pleased to see that in 6 years we have not had a single cancellation from a member.
Gary F. Koenig
P.W. Harrison & Sons Insurance Broker
P.W. Harrison & Sons is endorsed by the CTMA as a preferred broker specializing in industrial risk insurance for tooling & machining
companies. To find out more about the CTMA Insurance Program, contact Gary Koenig at 1-888-280-8853 Ext. 222.
CTMA AFFINITY PROGRAMS
DESIGNED TO $AVE YOU MONEY
In addition to networking opportunities and many other benefits, your membership in the Canadian Tooling &
Machining Association (CTMA) provides many advantages that you may not have considered. Pooled
purchasing with other CTMA members means savings for you, your employees and your shareholders! Take a
few moments and evaluate for yourself the savings with these affinity partners …
WIRELESS PHONE SERVICE COURIER SERVICES
TRADE SHOW REBATES MEDICAL & LIFE INSURANCE INDUSTRIAL RISK INSURANCE
MORNEAU
SOBECO
GARY KOENIG
P.W. Harrison & Son
INSURANCE BROKERS INC.
For more information on any of these affinity programs, contact the CTMA office at:
Tel: (519) 653-7265 Email: info@ctma.com Fax: (519) 653-6764
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13

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INDUSTRY PULSE RATE
TAKEN OCTOBER 2002
• areas of diversification are getting busier
• expect New North American Manufacturers to gain
substantial market share over next 3 years
• TDM industry generally running at about 90%
• busy now, but future is uncertain
• steadily busy – cautiously optimistic
• hydroforming bringing big boost to business
• business is fantastic – backlog is growing – quoting
is up – orders are coming in
• seems to be steady in Windsor – 4.5% industrial
growth is predicted
• seems to be slower in Central Ontario and Toronto
• foundry closures having a negative affect on
pattern shops
• working week to week
Solutions for CNC
CAD/CAM & DNC
CAD Interoperability – Full Tool Control
Complete CNC Solutions
Mastercam Ver. 9 (new)
NC Programming & Machining
• Intuitive, user friendly interface
• Full Associativity: Dimensions - Model - NC Toolpath
• Complete 3-Axis Multi-Surface Machining
• Powerful 5-Axis (4-Axis) Machining w/ Verification
• High Speed Cutting (Optimum Milling Strategies)
• Advanced Solids Machining w/ Tool Control
• Advanced Lathe with Live Tooling
• Easy to use 2 & 4-Axis Wire EDM
Part Modeling and Editing
• Hybrid Modeler – Surfaces, Solids and Wireframe
• Stitch Surfaces into a Solid Model
• Mold Cavity/Core Separation
• Automatic Electrode Creation, Insertion & Mgmt.
• Robust & Reliable Translators
(519) 658-1471
www.mastercam.ca
UPCOMING EVENTS
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14
2002
Nov. 15 Wage Survey Response Deadline
Nov. 20 Windsor Chapter/CAMM Meeting Windsor
Nov. 21 Western/Toronto Chapter Mtg. Mississauga
Dec. 4-7 Euromold GERMANY
Dec. 6 ISTMA-Europe Meeting GERMANY
2003
Jan. 6 Wage Survey Results Released
Jan. 16 Board of Directors Meeting Cambridge
Jan. 23 Windsor Chapter/CAMM Meeting Windsor
Feb. 6 Western Ont. Chapter Meeting Kitchener
Feb. 20 Toronto Chapter Meeting Toronto
Feb. 21-26 NTMA Annual Convention VIRGIN ISLANDS
March 3-6 SAE World Congress 2003 Detroit, USA
March 20-26 EMAQH Exhibition ARGENTINA
March 27-31 Intermold Korea 2003 KOREA
June 3 5th Annual Spring Conference & Dorchester
Golf Tournament
CTMA VIEW - ADVERTISING RATES
Advertising rates are: $500.00 per year (4 issues).
For further information, please contact our office: TEL:
(519) 653-7265 or FAX us at (519) 653-6764.