ANNUAL REPORT

I N D U S T R I A L

A U T O M O T I V E

A E R O S P A C E

2010

I N D U S T R I A L F A S T E N E R S I N S T I T U T E 2 0 1 0

OFFICERS Chairman, Larry Valeriano...................................................................California Screw Products Corporation Vice Chairperson, Jennifer Johns Friel .................................................................... Mid West Fabricating Co. Immediate Past Chairman, Ed Plomer, Jr.............................................................................. ITW Shakeproof

BOARD OF DIRECTORS Jonathan Turner ......................................................................................................................TurnaSure LLC John Grabner......................................................................................Cardinal Fastener & Specialty Co., Inc. Steve Paddock .............................................................................................................................Böllhoff, Inc. Joe Varholick .........................................................................................................................Bristol Industries Karl Hutter .............................................................................................................................. Click Bond, Inc. H. Ross Wambolt......................................................................................... Monogram Aerospace Fasteners Herman van Maaren......................................................................................................................Kamax L.P. Kurt McKinney ........................................................................................................... Cold Heading Company Mark Quebbeman...........................................................................................................Semblex Corporation Bruce Smith .............................................................................................. Carpenter Technology Corporation

DIVISION OFFICERS DIVISION I: INDUSTRIAL PRODUCTS Chairman, Preston Boyd...........................................................................................Hill Fastener Corporation DIVISION II: AEROSPACE PRODUCTS Chairman, Pat Wells ..............................................................................................The Young Engineers, Inc. Technical Chairman, Owe Carlsson ........................................................................Alcoa Fastening Systems Vice Chairman, Donnie Autry .................................................................................................MacLean-ESNA DIVISION III: AUTOMOTIVE PRODUCTS Chairman, Pete Baenen ................................................................................................................Kamax L.P. Vice Chairman, David Hebert ...................................................................................................SFS intec, Inc.

ASSOCIATE SUPPLIERS’ DIVISION (ASD) Chairman, Bruce Smith............................................................................. Carpenter Technology Corporation Vice Chairman, Alan Hariton ...................................................................... Hariton Machinery Company, Inc.

T A B L E O F C O N T E N T S INTRODUCTION ........................................................................................................................................... 1 General Economic Overview ............................................................................................................ 2 The Industry...................................................................................................................................... 8 Aerospace ........................................................................................................................................ 9 Automotive...................................................................................................................................... 10 Industrial Products.......................................................................................................................... 12 Imports/Exports .............................................................................................................................. 13 Raw Materials................................................................................................................................. 13 Government Affairs......................................................................................................................... 14 INSTITUTE OPERATIONS.......................................................................................................................... 14 MEMBERSHIP SERVICES ......................................................................................................................... 16 ENGINEERING TECHNOLOGY ACTIVITIES ............................................................................................. 19 Find a Supplier Program................................................................................................................. 19 IFI Technology Connection............................................................................................................. 20 IFI Fastener Standards Activities.................................................................................................... 21 ASME, ASTM and SAE Activities ................................................................................................... 21 ISO Standards Activities ................................................................................................................. 22 Research Council on Structural Connections (RCSC).................................................................... 23 Industry Training............................................................................................................................. 23 Publications and Information Activities ........................................................................................... 25 DIVISION I: INDUSTRIAL PRODUCTS....................................................................................................... 26 DIVISION II: AEROSPACE PRODUCTS..................................................................................................... 26 DIVISION III: AUTOMOTIVE PRODUCTS .................................................................................................. 26 ASSOCIATE SUPPLIERS’ DIVISION (ASD) ............................................................................................... 27 2010 – 2015 STRATEGIC PLAN................................................................................................................. 28 2011-12 CALENDAR................................................................................................................................... 38

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INTRODUCTION This is the eleventh Annual Report to the Membership detailing the operations of the Institute, the key issues confronting the industry in 2010 and some projections for 2011. CY-2010 was a pivot year with respect to the economy. Early thoughts were of a possible double dip recession, but we pleasantly encountered only slowly accelerating growth which became quicker over the last two quarters. The fastener industry in general fell into that category representative of durable goods manufacturing companies – autos, metals, machinery, computers and electronics – where 11 of 18 ISM tracked industry segments saw both production and new orders grow significantly. In the aerospace segment, this was tempered somewhat by both Boeing and Airbus delivery issues, and anything related to housing was off the pace too, but considerably better than 2009. Manufacturing ended 2010 with what has been 17 straight months of growth, and the ISM at 57 versus its low of 32.5 in December 2008. Exports helped fuel the growth, with new concerns about raw material pricing resurfacing at year end. Operationally, IFI ended the year with a positive $155,017 in cash operating funds plus $1,148,407 in reserves at market value. The decision was made to clean up the Balance Sheet with a non-cash write off of 7th Edition inventory, less one skid retained for replacements and for those who insist on replacing the 7th Edition. This non-cash write-off is $184,782. Also, a non-cash write-off for “bad debt” is being made for dues accrued in the period 2008-10 which we no longer believe we will recover. This write-off is $32,838. We plan to commence sales of the 8th Edition in January 2011 and for the first time will sell both hard copy and digital versions. This should generate a new very healthy stream of revenue. With the current large cash balance in Operating Funds, a further $50,000-$75,000 deposit to Reserves will be made in early February, as first quarter 2011 dues will have been billed. Our Financial Statements follow later in this report. Our Director of Technical Engineering, Joe Greenslade, continued generating new publications, including the 8th Edition Inch Fastener Standards, in record time. The Technology Connection subscription service is still growing slowly and it is believed it will catch on as business improves. As this is an annual subscription, these sales multiply. Our Aerospace Division Manager, Pat Meade, continues to lead that Division, with its officers, with great success in recruiting new members and in the aerospace technical, regulatory and government affairs (GA) arenas. We added John O’Brien, former IFI and Division III Chairman, in a similar role for the Automotive and Industrial Products Divisions and are seeing success there as well. Our Washington representatives, the Laurin Baker Group, have kept us well advised and represented on the

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government affairs issues that impact our businesses, and with the turnaround in Congress, it is hoped we’ll be working with a more business friendly Washington. The office staff, Barbara and Michelle, continued to provide services to the Members at a level of competence equal to previous significantly larger staffing levels, and along with the controller services and IT support we receive from PMA, we are able to meet our accounting, financial reporting and IT requirements. I believe our strategy of cutting costs almost to the bone, then restaffing with the best people available on a part time basis, getting everyone on the same page and then getting out of their way has been both operationally and cost effective. General Economic Overview For a general economic overview, we are going to again let some U.S. Department of Commerce/NAM pictures do the talking about what has certainly been an improved U.S. economy. Real GDP growth was +2.5 %, actually better than projected, with this improvement driven by manufacturing and exports. Europe and Japan were worse and only China and India had the type of GDP growth that all would like to see. If we go straight to the current and projected state of the economy, the pictures show:

GDP Growth Headed the Right Direction

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That the U.S. Economy Rebounded with No Double Dip

Manufacturing is Actually Leading the Way

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Exports in International Trade Contributed Significantly

Consumer Confidence is Recovering but is Still Dicey

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But Unemployment is Staying High Ending 2010 at 9.7%

The very end of the year, December to be exact, saw little progress in employment with only 103,000 jobs added that month. However, because of the government formula dropping 260,000 out of the available labor force in the calculations, unemployment dropped to 9.7%. If we look at the individual industry segments which follow, almost everything but aerospace and printing was in an expansion mode. When viewed from where fasteners and formed parts go (durable goods) the situation looked pretty darn good for this industry. Manufacturing production had fallen more than 17% during the recession, and is still 8% below its prior peak, but with the downsizing and cost cutting implemented, manufacturing is again profitable and companies are stockpiling cash relying on using existing capacity to fullest extent and overtime instead of significant new hiring.

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Fastener/Formed Parts Consumers Doing Pretty Good What does this tell us?

1) The economy has turned the corner and is accelerating slowly, which will continue unless there is another global shock!

2) Manufacturing led the way out of the recession and is certainly not “dead” in North America and exporting continues to grow in importance.

3) The recent changes in Washington, and continuation/implementation of the Bush tax cuts, should restore consumer confidence, and equally important, business confidence that we now have a “knowable environment” in which to invest and hire.

4) Housing and the industries that supply it will probably remain a drag on the economy for at least another year, if not longer, but are better than the previous year.

Summarizing the numbers: The U.S. produced about $14.838 trillion in GDP in 2010 (+2.5% for the year), of which about 70% was again consumer spending. Inflation was 1.05% and the prime rate was 3.25%. The Federal Budget Deficit was $1.5 trillion ending 2010 and the Federal Debt is now $14 trillion, almost equal to our GDP, definitely

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not a good thing. The 2011 GDP growth projection consensus is 2.7% with a year ending “high projection” of 4% by optimistic economists. The stock market ended the year with the Dow at 11,670, S&P at 1271 and NASDAC at 2691. Troubling is that oil (W.TX.) was at $91 a barrel at year end and $100/bbl + is a very real possibility in 2011, meaning the potential for $4/gal gas. A positive note is that personal consumption is projected to grow by 2.5% in 2011 vs. a 7% decrease in 2010. That is almost a 10% turnaround. Business investment is projected to be up 9.3% in 2011 vs. a 5.9% increase in 2010 and unemployment is projected to fall to 9.4%, maybe lower. Unfortunately, housing starts are projected to increase only to the 690,000 unit range vs. 590,000 in 2010 and the aerospace recovery is not expected to really start until the 3/Q 2011. It is worth noting that MAPI still calculates that in the USA manufacturing suffers from a 17.6% structural cost disadvantage vs. our 9 largest competitors due to government imposed costs – taxes, EPA and OSHA regulations, etc. The trade deficit ending the year was $40.5 B with 90% of the deficit from trade with China and imported oil. Continued currency manipulation by China and to a lesser extent by Japan and South Korea, continued distorting the trade balances with those countries. China did raise interest rates to tighten monetary policy to slow inflation. Interestingly, demographers believe China will face shortages in qualified labor as early as 2015 due to the one child policy, which will start to hamper their manufacturing growth. In 2010, China represented 14.3% of U.S. import/export trade and about an equal amount of Brazil’s and South Africa’s trade, vs. only 1/4 to 1/2 that (3% to 6.5%) for W. Europe. That’s indicative of where China is focusing its export expansion – the W. Hemisphere, Middle East and Asia. China represented 20.6% of Australia’s trade 20.4% of Japan, 22.8% of S. Korea’s, 10.5% of India’s and 12.8% for Saudi Arabia. U.S. corporate profits really increased during the year based on cost cutting, but the year saw 157 bank failures, the highest since 1992. This did not help credit availability to manufacturing. Our neighbors to the north, particularly in Ontario, really cashed in during 2010 with a 14% increase in shipments y/y and 15% increase in exports. In fact, Canada really handled the recessions well – zero bank failures and less than 1% property foreclosures. The weak dollar is a worry to them though. To understand the U.S. real position in global manufacturing, and why manufacturing isn’t dead here yet or even likely to be in the foreseeable future, the following table shows the relative percentage of the world’s manufacturing output attributable to various countries:

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Country Manufacturing Country Manufacturing Output Output

USA $1.831 T UK $0.342 T China $1.106 T France $0.296 T Japan $0.926 T S. Korea $0.241 T Germany $0.670 T Canada $0.218 T Russia $0.362 T Spain $0.208 T Italy $0.345 T Brazil $0.206 T The Institute for Supply Management indexes really tell the story. As noted, 2010 ended with an ISM of 57.0 which, if sustained through 2011, would translate to a 5% growth in GDP. The consensus on 2011 GDP growth is 3.2% the first half and 2.7% for the year. Unemployment is, therefore, expected to stay at 9% or above. The good news is that the “production” and “new orders” component of the index are currently both above 60! Manufacturer’s “inventories” are up a bit at 51.8, but user’s inventories are still quite low at 40. That’s a lot of room for growth. The Industry We do not have available new aggregated information on the U.S. Fastener Industry for 2010, though that will be available when the 2010 Census is completed. The data below is NAICS-based (332722) released in June 2009 and will be briefly summarized only. Fastener industry production revenues are in the $10.5–11.0 B range. These numbers are lower than the Freedonia projections, which are for consumption not production. U.S. consumption is roughly estimated to be $11.5–12.0 B range with $3.5 B in imports and $2.5 B in exports. Freedonia continues to project world fastener demand growth averaging 8.5% per year through 2014 with China itself creating 25% of that demand. That growth rate would equate to $80.5 B in fastener consumption in 2014. U.S. demand growth is forecast to be about 8% and it’s 5.6% for W. Europe. There were just under 840 fastener manufacturing entities (both independent and captive) in existence starting 2010 versus 937 ending 2004, of which about 350 are believed to be substantial manufacturing entities. The industry has about 42,000 employees. In 2010, the industry operated at just over 64% of capacity, vs. 59.3% in 2009. Overall manufacturing capacity utilization was higher than that of the fastener industry ending 2010 at 73.2%. Inventory turns in 2010 for the fastener industry were 3.9 vs. 2.8 in 2009. In 2007 plant capacity utilization was 74.0% and inventory turns were 4.4 for reference. The 2009 data analyzed showed there to be about 50 upstream industries supplying the industry while product flowed to

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352 identified downstream fastener using industries. The supplying industries included the purchase of just about $900 M in domestic wire and rod for production purposes. Imports of wire rod were low and are uncertain as of this writing, but are expected to increase in early 2011. Sales projections from the study estimated:

Aerospace Aerospace fastener sales were somewhat in a holding pattern in 2010 – better than 2008-09, but not growing quickly largely due to delivery problems at the primes. With the new orders received and the existing backlog, baring something catastrophic, this will remain a healthy and profitable segment of the industry for a long time to come. One thing that did cool off, however, was the pace of M&A activity in this segment, which had been almost torrid! Also expected to cool off in 2011 is military spending. New aircraft net orders in 2010 were 489 for Boeing vs. only 142 in 2009 and 574 for Airbus vs. 271. There is some concern that third party financing orders – therefore, subject to cancellation – may be inflating the total, and that with the preponderance of these orders for delivery offshore that means there is a lot of volatility in the order book. Deliveries in 2010 were 461 aircraft for Airbus and 420 for Boeing. With respect to the other commercial airframe primes – Bombardier and Embraer – the re-engineering of the A-320 NED could adversely hurt orders for these single aisle aircraft. These two manufacturers are expected to deliver about 100 aircraft each in 2011, the same as 2010. With respect to new aircraft, 41 x 787’s were cancelled in 2010, the A350 is now due mid-2013, the 747-8’s first delivery is now also expected to be mid-2011 and

YEAR 2008 2012 2017

U.S. Total $11.800 M $13.200 M $15.000 M

OEM 9.000 M 10.200 M 11.500 M

Motor Vehicles 3.000 M 3.350 M 3.800 M

Electrical/Electronic 970 M 1.050 M 1.170 M

Industrial Machinery 1.530 M 1.730 M 1.950 M

Fabricated Metal Product 1.170 M 1.310 M 1.440 M

Aerospace 1.580 M 1.900 M 2.150 M

All Other OEM 750 M 860 M 990 M

MRO/Construction/Other 2.800 M 3.000 M 3.500 M

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for the F-35, there will likely be a reduction in domestic orders and who offshore will be allowed to buy them is a major question. It is known that Airbus intends to increase A-320 production from 36 to 40/month plus the 4/month to be final assembled in China in 2011. The 737 production rate is planned to be increased from 31.5/month to 35/month in 2011 and to 38/month in 2013. The 777 is slated to increase from 5 to 7/month in 2011. That’s a lot of nuts, bolts, rivets, screws, pins and special formed parts. Airbus recently completed a worldwide aircraft demand study and projects 25,850 new planes will be needed in the period 2010-2029, a 4.8% sales growth per year. Boeing’s last study projected the need for 30,900 aircraft over a 20 year period. Specifics, although preliminary 2010 numbers, show domestic aerospace sales in current dollars as: Total: $216.46 B Civil Aircraft: $48.15 B Military Aircraft: $64.47 B Missiles: $26.91 B Space: $45.52 B Related Products & Services: $31.40 B Boeing’s backlog breaks down as follows in number of aircraft:

Aircraft U.S. Backlog (22.5%) Foreign Backlog (77.5%) Total Backlog 737 539 1,588 2,127 747 14 95 109 767 20 33 53 777 36 229 265 787 157 690 847

Value $48,852 M $209,865 M $258,717 M In 2010 aerospace exports were $80,540M and imports were $27,233M in current dollars, a very significant input to the U.S. balance of trade. Automotive CY-2010 was a nice recovery year for those supplying automotive fasteners. Most had restructured and restaffed to survive at a 10.0 M unit production rate, and actual production pushed 11.8 M units, generating nice cash flow throughout most of the automotive supply chain. North American auto sales hit 11.6 M units, up 11.1% from 2009 (10.4 M units). Sales by light vehicle producer were (Wards):

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OEM Sales Volume % Change Ford 1,905,372 +19.5% GM 2,211,262 +7.2% Chrysler 1,079,734 +16.5% Detroit-3 4,386,368 Honda 1,230,480 +6.9% Hyundai/KIA 894,496 +21.7% Mazda 229,566 +10.5% Mitsubishi 55,683 +3.1% Isuzu 132 +2.6% Nissan 908,570 +18.0% Subaru 263,820 +21.8% Suzuki 23,994 –38.0% Totu 45,204 +18.1% Toyota 1,763,595 –0.4% Volvo 53,984 –12.2% Asia/Pacific 5,471,037 BMW 265,757 +9.9% Daimler 231,169 +12.5% Porsche 25,320 +28.6% Saab Spyker 5,445 –37.3% VW 358,459 +21.0% European Other 886,150 Totals 11,553,555 Other changes in automotive were the reductions in incentives to lure customers into showrooms, with the exception of Honda, Nissan and Toyota where incentives were actually higher in 2010 than in 2008 or 2009. The average incentive for the Detroit-3 were: Chrysler’s incentives averaged $3,195 vs. $4,131 in 2009; GM averaged $3,515 vs. $3,889 and Ford averaged $3,173 vs. $3,334. Premium sport car incentives averaged $5,757 while subcompacts averaged $1,212. Saab’s incentives, the highest of any, averaged a whopping $7,998! For 2011, IHS projects a production volume 12.2 M units and 14.2 M units in 2012. IRN projects 12.56 M units in 2011 rising to 13.06 M units in 2012. IRN stays conservative not projecting 14.02 M units 2013 while IHS projects 14.4 M units. Trends noted are that average vehicle age in North America is now 8.7 years, very high and rising, and that new vehicle sales are historically about 4% of GDP but are currently only running at 2%, both arguing for substantial pent up demand?

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Industrial Products Many of the industries in the industrial products segment also showed a nice recovery in 2010, particularly in the metals, machinery, computers and electronics segments. Products going mostly into housing, however, remained off throughout the year, though appliance showed real growth vs. 2009. Ovens and electric cooking appliances +7.8%, gas ovens +12.2%, refrigerators +17.9% and dishwashers +12.4% for instance. What seemed to be missing were the “impulse purchases” for homes in addition to the “new house basic outfitting” of appliances, as there were few new houses. In the construction related segments, stimulus spending did provide $49 B for transportation projects (highway, rail, seaport and airports); $35 B for federal buildings; $30 B for energy and broadband projects and $21 B for water, wastewater and the environment. The highway money was spent rather quickly while the other areas have been slow starting. Overall construction spending dropped 10.3% in 2010, the fifth annual decline as reported by the Commerce Department, to $814.2 B. Construction spending of about $1.5 T per year is considered healthy. This was the result of home construction falling 1.7%, non-residential falling 23.3%, shopping centers down 26% and government projects down 2.7%. The construction arena is one that could most impact a jobs recovery because it is estimated that 28,500 jobs are created for every $1 B spent (1/3 direct onsite construction; 1/6 indirect in the supplying industries and 1/2 “induced” based on the multiplier effect on service industries). The reality, however, is that construction spending fell from a high of $1.1 T in 2007 to just over $800 B ending 2010. The projection is that single family starts will start to increase in 2011 but multi-family starts will stay flat. In 2010 construction spending was –11% in the power sector, –35% in new manufacturing facilities, –5% in communications infrastructure, –11% in amusement and recreation, –7% in highways, +10% in sewage and waste water, +1% in water projects, –24% in non automotive retail space, –40% in private office and –56% in private lodging – not pretty and the reason unemployment in the construction segment is at 20.7%, more than double the national average. In the off-road and agricultural sector, CATERPILLAR recovered from a very, very difficult 2008-09 where sales and revenue had been off 37% to $32.4 B, though CAT still managed to show a $577 M profit with engine and financial products sales offsetting a $1,079 M loss on machinery sales. The preliminary 2010 numbers show revenue up 31% to $42.6 B. Sales for 2011 are projected to exceed $50 B, raising concerns that their suppliers can meet that demand.

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JOHN DEERE also having survived a really tough 2009 with $873 M profits down 57% on $23.1 B in sales (down 19%) has reported preliminary 2010 sales of $26.0 B and profits of $1.9 B. The developing world-wide shortage of basic food supply argues well for suppliers to DEERE! Imports/Exports IFI’s 2010 Import/Export Report will show a continuing shift in import totals and their country of origin.

• Fastener Imports totaled $3,578,615 in value or 2,608,117,806 pounds in weight.

• Fastener Exports totaled $2,516,940 in value or 2,048,089,218 pounds in weight.

• The top export countries of origin were:

Country Value ($M) % of Total % Change vs. 2009 $/Lb. World $3,578.615 M 100% + 35.7% $1.37 Taiwan 1,147.922 32 + 41.7 1.17 China 783.740 22 + 29.5 0.92 Japan 531.641 15 + 48.8 3.35 Canada 264.361 7 + 31.2 1.59 Germany 161.335 5 + 25.3 1.28 S. Korea 110.780 3 + 106.2 1.74 Italy 79.668 2 + 50.9 1.73 UK 76.211 2 + 15.4 12.71 India 67.817 2 + 24.1 1.13 Thailand 62.697 2 + 52.3 1.41 ROW 292.44 8 – – – –

Raw Materials Raw materials and energy costs are again becoming areas of concern. At year end oil traded for $91/bbl (W.TX.), with $100/bbl prices not unexpected in 2011. Ending 2010 HRB steel U.S. FOB mill rose to $637/net ton, still below May 2010 high of $704/net ton. That, of course, is still well down from its 2008 high in the $1,100/net ton range. Versus year end 2009 prices, CHQ ended the year at about +$110/lb for carbon and +$135/lb for alloy wire rod. Scrap volatility is creeping back in and alloy prices are rising too, so raw material may become an issue in 2011, though many fastener manufacturers have factored material pricing clauses into their contracts to protect margins.

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Government Affairs Again, our Washington representatives, The Laurin Baker Group provided admirable support in the legislative and regulatory areas of concern to the membership and the November elections and lame duck session of Congress gave hope and provided a real boost that 2011 might be pretty darn good after all. With respect to specific legislation of concern, EFCA/“Card Check” seems stopped in Congress but still subject to “regulatory interpretation” as a possible vehicle for implementation, LIFO repeal remains a juicy target for tax revenue enhancement but not too popular when it gets tied to job losses, and the tax issues resolution which came down in the “lame duck” Congressional session in a way favoring business. China trade and currency manipulation initiatives continue much talked about but little acted on in any meaningful way. In the regulatory arena, the OSHA reinterpretation of the noise reduction compliance programs is probably causing the most consternation, and IFI is both independently and in party with other associations and coalitions working to defuse this issue. INSTITUTE OPERATIONS Operationally, the Institute did well this year with the previously noted positive balances both from Operations alone and including special projects. Reserves continued to build and are valued at $1,148,407 with an additional $75,000 expected to be deposited in early 2011. Ending 2010 we did do a $184,782 non-cash write down to get rid of the excess 7th Editions after a distribution of same to engineering colleges and training centers in North America and abroad. We also did a $32,838 non-cash write-off of “bad debt for non collectable dues.” Sales of the Inch Fastener Standards, 8th Edition commenced in December and we have budgeted for this project to generate just over a quarter of million dollars in new revenue in 2011 – congratulations to Joe Greenslade and the team for the fastest production of a Fastener Standards edition ever. Selling the desktop printed version of this book and the Metric Fastener Standards, 3rd Edition, we will no longer face the excess inventory problem encountered with earlier editions. The IFI Technology Connection subscription service sales continued to grow, and this is a sale that keeps on generating new revenue on a yearly basis. The new IFI Fastener Technology Handbook compliments the 8th Edition and sales continue. The Institute’s Annual Meeting at The Ritz-Carlton, Lake Las Vegas and Fall Meeting at the Four Seasons, Vancouver, BC, Canada were good events, rich in take home value, and offered great networking opportunities. A blend of technical, business, government affairs and economic forecasts were part of both programs and very favorable comments were received from many attendees. These meetings together

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were subsidized to the tune of $5,722 against a Board approved subsidy of $25,000 to maintain meeting content in tough economic times. Our continued coordination with other associations and with our office co-location with the Precision Metalforming Association (PMA) ended with a third association joining our group, the National Tooling & Manufacturing Association (NTMA) – the CNC guys. They moved in at the end of 2010, relocating from Washington, D.C. Our joint venture with four other metalworking associations (PMA, FIA, SMI and NFFA) to form the Metalworking Health Insurance Trust was discontinued, as it did not provide the advantages expected. Our information exchange program with the Original Equipment Suppliers Association (OESA) continues as does the co-location of our Aerospace Division meetings with the Aerospace Locknut Manufacturers Association (ALMA). Our participation with the National Association of Manufacturers (NAM) diminished somewhat as an austerity measure, though on a variety of industry and government affairs initiatives this relationship continues to expand the depth and breadth of our influence. Within the fastener industry, our coordination with the NFDA, MWFA, Pac-West Distributors Association and the Fastener Industry Coalition (FIC) continued when common cause was identified. We teamed up with Pac-West to develop the Fastener Training Institute – hosting a Cleveland 2010 week long “fastener specialist” training program which netted IFI $9,000 and will again be held July 25-29, 2011 at IFI in Cleveland. An auto version of the program will be held in Troy, MI April 27-28, 2011 too. The ISO/TC2 International Fastener Meetings were also hosted at the IFI headquarters building with really high approval voiced by the delegates. Educational involvement remained a key theme in 2010, as Division II continued to coordinate with the State of California Community College system on the Aerospace Fastener Manufacturing curriculum at El Camino College under the auspices of the California Center for Applied Competitive Technologies, where actual fastener manufacturing equipment has been installed. These efforts remain a huge leap forward for IFI in formalizing the fastener training aspects of our fastener industry mission.

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MEMBERSHIP SERVICES Trade associations were formed because it was recognized early on that individual companies could not sufficiently influence their industries customers or the government as successfully as a group of companies working together could. Today trade associations are almost a necessity in a globally competitive business world, and almost all governments recognize them as institutions that advance the nation’s industries in ways no other organization could. Members and non-members contemplating IFI membership frequently ask, can I afford to be a member of a trade association. Is the money I pay worth the investment? By joining this association will I gain opportunities and information to better run my business? These are the key issues why companies join associations. IFI’s challenge is to provide a value proposition in which the reward consistently exceeds the cost. This is particularly true when confronted with difficult times, customers who don’t want to understand the industry and its issues and government decisions directly impacting an association’s members. The association is the venue where ideas and information can be exchanged to the benefit of all. What, therefore, is it that IFI strives to provide its members?

1) Networking opportunities with peers and key suppliers to the industry is almost everyone’s first consideration.

2) A voice and source of advocacy for the industry which is recognized by the public, the industry’s customers, and the government.

3) A forum to collectively develop and share the cost of information gathering, training, carrying out industry specific technical and business oriented projects, and as a vehicle to coordinate projects of joint interest to the industry and with the key customers of and the suppliers to the industry.

4) A mechanism by which to represent the industry on technical and standards-based issues nationally and internationally in the interest of the member companies and their supply base.

5) The vehicle to coordinate with other associations in N. American manufacturing’s best interest. These are the functions performed by IFI’s Divisions, Committees, Working Groups and by the Staff of the Institute, under the supervision of the Board of Directors. For 2010, the scope of these activities is briefly summarized below. IFI provided qualified staff to attend industry and government meetings requiring more than 60 meeting days per year, plus travel time on behalf of our Members. This shared representation is a cost saving as you do not all have to attend all these meetings yourself. This unified representation also

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allows for coordination amongst and between the various bodies and activities rationalizing the decisions being reached by the industry. Over the course of a year IFI will attend multiple meetings of the following:

• ASTM – F-16 • ASME – B-18 and B-1 • SAE – Fastener Committee and E-25 • International Standards Organization (ISO) – TC2 • Aerospace Industries Association NASC • The Aerospace Government/Industries Working Group (GIFWG) • At the National Association of Manufacturers (NAM)

- International Economic Policy Committee and the Subcommittee on China - Coalition for a Sound Dollar - Coalition for the Future of Manufacturing - Associations Council - OSHA Policy Group

• Selected consortium dealing with issues of importance to the industry

• The Research Council on Bolted Joints

• The Metalworking Industries Associations Executive Committee

• The Automotive Industries Action Group (AIAG) – Packaging & Logistics and Quality Committees

• The Metalworking Manufacturing Coalition and the MMC Health Insurance Trust

• The Original Equipment Suppliers Association (OESA) meetings, workshops and seminars on the

automotive supply chain.

The Institute thus provides the vehicle by which Member companies can gain the advantage of coordination

with other like-minded organizations on issues of direct concern to the Members. These relationships

leverage the political reach of the Membership on government affairs and issues of business concerns

where common interest exists. This spreads the cost of such activities over a broader base and makes

accessible to IFI’s Members the best thinking of the combined groups without the cost burden of having to

belong to multiple organizations, or of trying to house all such expertise in the IFI, or in the individual

companies. Key groups the IFI regularly coordinates with include:

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Fastener Organizations: Other Metalworking Organizations:

• European Industrial Fastener Institute (EIFI) • Precision Metalforming Association (PMA) – stamping & pressing

• Fastener Institute of Japan (FIJ) • Precision Machined Parts Association (PMPA) – screw machine

• Brazilian Fastener Institute (SINPA) • Spring Manufacturers Institute (SMI) – spring making

• Taiwan Industrial Fasteners Institute (TIFI) • Forging Industry Association (FIA) – forging

• Chinese Fastener Association • Tooling & Manufacturing Association (TMA)

• National Fastener Distributors Association (NFDA) • American Bearing Manufacturing Association (ABMA)

• Pac-West Distributors Association • American Gear Manufacturing Association (AGMA)

• Midwest Fastener Distributors Association • American Iron & Steel Institute (AISI)

• Other Distributor organizations • Metal Treating Institute (MTI)

• National Association of Manufacturers (NAM)

• National Tooling & Manufacturing Association (NTMA)

Other Institute activities include developing and/or acquiring and disseminating industry information. These

surveys and studies are able to be done on a shared cost basis and would possibly not be done at all if left

to individual companies. Included are:

• IFI “Import/Export Report”

• Reports on the global steel and other raw materials markets

• Benchmarking Surveys

• Washington newsletters from a variety of Association sources (NAM, AIA, Credit-Suisse, etc.)

• Periodic e-mails, broadcast faxes and website updates on critical issues impacting the industry.

• Regular economic updates. Finally, at our Annual Spring, Fall, and periodic Divisional meetings, critical issues speakers and presentations are hosted on a shared cost basis. In 2010 these included:

• Alan Beaulieu’s and Clare Zempel’s U.S. Economic Forecasts

• Laurin and Jennifer Baker’s IFI Government Affairs Briefings

• International Trade Law Presentation by Dan Pickard

• Panel on Factors Affecting Steel Costs

19

• Automotive Supply Chain Transition

• Industrial Products Economic Projections by Eli Lustgarten

• Joe Bione on Managing in Economic Crisis

• A variety of attorneys and experts on how suppliers can deal with chapter 11 issues and bankrupt customers

Developing common opportunities and dealing with common problems, along with networking, are what drives membership in trade associations. Your participation in the IFI is much appreciated and gives you a voice in deciding what those issues will be and how they will be dealt with. Perhaps most important, it is an insurance policy providing you a seat at the table and your entrée to proactively help in shaping the future your business will exist in. ENGINEERING TECHNOLOGY ACTIVITIES IN 2010 Technical Support for the IFI Membership Joe Greenslade, Director of Engineering Technology, continued to lead the technical efforts of the IFI through 2010. New IFI Web Site Launched in 2010 The IFI web site was completely revamped during the second half of 2009 and into the first half of 2010. The site officially launched on May 1, 2010. The previous web site had been developed in pieces over several years by several different web developers. It was not flexible and had become rather dated. The new site was developed in its entirety by one highly skilled web designer who worked closely with the IFI technical staff. The new site has a modern appearance and feel to it. All elements are coordinated and connected making navigation around the site extremely simple and fast. The development added many new, easy to use, administrative controls enabling IFI staff to update and add to the site directly without needing to go through the web designer as was the case in the old site. Find a Supplier Program – continues to provide a growing number of opportunities for members The IFI Find a Supplier Program enables fastener purchasers to quickly and easily find the IFI Members and/or Associates that supply the fasteners or related products they are looking for through the new IFI web site. This program was also upgraded when the IFI web site was overhauled during 2010. It is now easier

20

to navigate and much easier to locate specific companies by name and also through the product/services search. During the last quarter of 2010 monthly inquiry hits were running approximately 3500 per month, which was almost a 100% increase over the same period in 2009. It is impossible to identify how many of these hits result in orders, but it is reasonable to believe that this growing level activity of companies looking for North American fastener suppliers must be giving IFI members a growing amount of favorable exposure. IFI Technology Connection™ The IFI Technology Connection is the IFI’s online standards data retrieval system that greatly speeds up obtaining all relative technical data including dimensions, physical requirements, and recommended tightening values from a single 10 second search. It also provides the following technical assistance tools:

1. Inch – Metric conversion tool 2. International raw material cross reference tool 3. Tapping thread depth calculation tool 4. Tapping screw holes size calculation tool 5. Fastener weight calculation tool 6. Locking performance look-up tool 7. Hardness and tensile strength look-up tool 8. Inspection sample size tool

All IFI members have FREE access to this program as one of their benefits of membership. Non-IFI companies can subscribe on an annual basis at either of two levels:

1. USER ONLY Subscription – all of the subscriber’s employees can access the program, but only one user at a time can be in the site. They can print out the data and share that with their customers, but direct customer access is not allowed.

2. USER – CUSTOMER Subscription – all of the subscribers plus their registered customers can

have direct access to the site. The number of users who can access the site at this subscription level is unlimited.

During 2010 growth was slow, but steady. The use of this site instead of using only the reference books requires a paradigm shift which is always slow to occur. It is expected to continue steady growth into the

21

future, because those who are using it are excited about its capabilities and performance and word continues to spread throughout the fastener industry. Fastener Standards Activities – supporting and protecting fastener manufacturers The most time-consuming activities for the IFI technical staff each year are working with various standards organizations in the development and maintenance of fastener standards. In 2010 there were 20 days of on-site standards meetings. Each day of on-site standards meetings requires three or more days of preparation and/or follow-up activity. This level of involvement is extremely important to assure standards are not introduced or changed that will increase fastener manufacturer’s burdens and/or unnecessary costs.

American Society of Mechanical Engineers (ASME) Following are the ASME standards that were issued during 2010 as updates of previously existing standards:

B18.2.6, Structural Fasteners - Inch Series B18.2.1, Hex, Heavy Hex, and Askew Head Bolts and Hex, Heavy Hex, Hex Flange, Lobed Head, and Lag Screws - Inch Series B18.2.2, Square, Hex, Hex Flange, Coupling, and Machine Screw Nuts - Inch Series B18.6.3, Small Screws, Machine and Tapping - Inch Series B18.18, Quality Assurance for Mechanical Fasteners

American Society for Testing and Materials (ASTM) Following are the ASTM standards that were issued during 2010 as updates of previously existing standards:

A307-10 Carbon Steel Externally Threaded Standard Fasteners A320-10 Alloy Bolting Materials for Low Temperature Service A325M-10 Standard Specification for Structural Bolts, Steel, Heat Treated 830 MPa Minimum Tensile Strength [Metric] A325-10 Standard Specification for Structural Bolts, Steel, Heat Treated, 120/105 ksi Minimum Tensile Strength A490-10 Standard Specification for Structural Bolts, Alloy Steel, Heat Treated, 150 ksi Minimum Tensile Strength A490M-10 Standard Specification for High-Strength Steel Bolts, Classes 10.9 and 10.9.3, for Structural Steel Joints (Metric) F436-10 Standard Specification for Hardened Steel Washers

22

F436M-10 Standard Specification for Hardened Steel Washers [Metric] F606-10 Standard Test Methods for Determining the Mechanical Properties of Externally and Internally Threaded Fasteners, Washers, Direct Tension Indicators, and Rivets F959-10 Standard Specification for Compressible-Washer-Type Direct Tension Indicators for Use with Structural Fasteners F1470-10 Standard Practice for Fastener Sampling for Specified Mechanical Properties and Performance Inspection

A193/193M-10 Standard Specification for Alloy-Steel and Stainless Steel Bolting Materials for High Temperature or High Pressure Service and Other Special Purpose Applications A194/194M-10 Standard Specification for Carbon and Alloy Steel Nuts for Bolts for High Pressure or High Temperature Service, or Both

SAE International The SAE Industrial Fastener Committee did some very important work during 2010 by working on the revision of the two most frequently used SAE fastener standards. SAE J995, Mechanical and Material Requirements for Inch Steel Nuts, was updated during 2010 adding several nut designs to Grade 2 and the withdrawal of all testing procedures which were replaced by referring all test procedures to ASTM F606. SAE J429, Mechanical and Material Requirements for Inch Externally Threaded Fasteners, was updated to add more materials that are in common use today for Grades 5 and 8 and the removal of all testing procedures which were replaced with references to ASTM F606. The standard was in the balloting process at the end of 2010 and it is expected to issue in early 2011.

International Standards Organization (ISO) In October of 2010 the IFI hosted the week-long international ISO TC2 Fastener Committee meetings at the IFI Headquarters in Independence, Ohio. There were delegates from Australia, Canada, France, Germany, Italy, Japan, Sweden, Switzerland, UK, and the USA. Progress was made on further review of ISO 898-1 for possible editorial revisions. The nut material and performance standards ISO 898-2 and 6 were extensively discussed and a ballot is expected within the next 12 months. Most time was spent on the coating standards ISO 10683, zinc-flake finishes, and ISO 4042, electroplating finishes. The USA delegation, including the IFI representative, considers the work on ISO standards highly critical for the USA fastener producers because most new industrial designs are based on the

23

metric system to facilitate international trade. There will be continuing efforts within the USA standards community to adopt ISO metric fastener standards to replace metric fastener standards previously created by ASME, ASTM, and SAE.

Research Council on Structural Connections (RCSC) This organization has only one standard that is followed in the construction industry wherever steel framing is used structurally; primarily in multi-story buildings and bridges. The RCSC June 2010 meeting was hosted in Vermont by APPLIED BOLTING TECHNOLOGY PRODUCTS, an IFI Associate member. There was a brief review of the latest revision of the RCSC standard that was dated 2009, but actually published in early 2010. Presentations were made on several university research projects that are being sponsored by the organization. It was agreed that a new study will be sponsored under the direction of Salim Brahimi, of McGill University, on the rotational capacity of ASTM A325 and A490 bolts coated with ASTM F1136 coating. The 2011 meeting site will be in the San Francisco Bay area and a tour of the San Francisco Bay Bridge Project, the largest bridge project ever undertaken, will be an integral part of the meeting program.

Industry Training Part of the technical role of the IFI is to provide training materials and programs to the industry on subjects related to the proper manufacturing, selection, inspection, and use of mechanical fasteners. Two projects were worked on during 2010.

Fastener Training Institute – Commercial Fastener Technology Training In July of 2010 the IFI participated in organizing and presenting the second Fastener Training Institute program at the IFI Headquarters. About 30 people attended the 5 day training session. Many basic topics and subjects were covered by a team of three instructors with heavy emphasis on fastener standards, their content, and their common interpretations. In addition to about 30 classroom hours, participants visited QUALITY BOLT & SCREW CO., an IFI Member company, to see cold heading, roll threading, and quality assurance procedures. They then visited CARDINAL

FASTENER & SPECIALTY CO., also an IFI Member company, to see hot heading, cut-threading and

24

quality assurance laboratory practices. The tours were completed by visiting AMAC, INC. where attendees were shown heat treatment, electro-plating and dip-spin, zinc-flake coating processes. The participant feedback was very positive. The next program will be held again at the IFI Headquarters in mid-2011. Fastener Training Institute – Automotive Fastener Technology Training Several automotive fastener manufacturers attended the commercial fastener technology program in 2010. They stated they found the program beneficial, but that they would like to see a program created specifically tailored to automotive fastener suppliers. By the end of 2010 the Fastener Training Institute and the IFI had created such a program that will address the specific standards, manufacturing, application and quality issues that affect automotive fastener suppliers and installers. The first program will be conducted in the Detroit area during April of 2011. It will consist of one full day of class room training covering installation and proper tightening technology and effective failure analysis. The second day will include the heat treating operation of COMMERCIAL STEEL

TREATING CORPORATION an IFI Associate member, and presentations and fastener metallurgy, followed by a tour of CURTIS METAL FINISHING, also an IFI Associate member, here the technology related to automotive fastener finishes will be explained and discussed in depth. Fastener Machine Operators Training In 2007 the aerospace fastener producers realized that one of the most critical limiting factors affecting industry growth and long term stability was the lack of well trained machine operators. The IFI Division II, Aerospace Fastener Producers, started working with the state of California in 2008 to create a training program within the junior college system to create a job skills training program specifically for aerospace fastener producers. During 2008 and 2009 some equipment was donated to the program by IFI member companies and the college conducted the first training sessions. About 30 trainees went through the program, but unfortunately, by the time of the first graduation the aerospace industry was in the depths of recession along with the rest of the USA. As expected, lessons were learned when going through the program for the first time. During 2010 more equipment was donated, more machinery instructors were identified, and the content of the program was refined. Toward the end of 2010 the

25

aerospace fastener industry was starting to see some recovery and the next operator training session is tentatively planned for 2011.

IFI Publications and Information Activities

Magazine Articles: During 2010 several industry information and technical articles were published in Fastener Technology Magazine and Distributor’s Link Magazine. The articles informed the North American fastener industry of the on-going activities of the IFI and provided helpful technical guidance on several topics. Online Technical Training Courses: In late 2010 the first two technical online training courses were made available through the IFI online store. These programs were developed by Michael Pfeifer, Ph.D., P.E., President of Industrial Metallurgists, LLC. The first course is the Basics of Fastener Metallurgy and the other the Heat Treatment of Steels. These two courses were developed by Professor Michael Pfeifer, Ph.D., P.E. All strength and performance characteristics of fasteners are based on their metallurgy. Understanding the basics of metallurgy can make anyone serving in the fastener industry much more technically competent and valuable to their company and customers. Once one understands metallurgy the next logical step is to learn the fundamentals of steel heat treatment. These courses are written in such a way that the student does not have to have a technical degree to grasp the valuable content.

These two courses are self-paced. It takes approximately five hours to complete the metallurgy course. The programs include pre and post tests to demonstrate what has been learned by taking the course.

8th Edition Inch IFI Standards Book: A great deal of the technical effort during 2010 went into the compilation and preparation of the 8th Edition of the IFI Inch Fastener Standards Book. The IFI Inch Fastener Standards Book has been referred to as the “Bible for the Fastener Industry” since the 1940s. The 8th Edition was almost complete by the end of 2010. It will be made available during the early months of 2011. For the first time in the book’s history it will be made available as a secured digital file in addition to its traditional hard-cover format. Over 50% ASME, ASTM, SAE, and IFI standards have been revised since the 7th Edition was published in 2003. The revised standards include all of the major bolt, nut, screw and washer documents. The book has been re-organized so that the related dimensional and material standards are now located within the same product section making locating information easier and faster.

26

OUR DIVISIONS

DIVISION I: INDUSTRIAL PRODUCTS

Division I is those manufacturers who supply fasteners and formed parts to the makers of industrial products, the construction industry and to distribution. Most of our fastener standards are developed for this segment of the industry. The Division meets twice yearly and often hosts speakers on topics of timely interest to the whole industry. Many of our special projects are triggered by the needs of this segment. This Division provides strong support to our technical engineering activities, to the Research Council on Structural Connections and to the Bolting Technology Council. Our activities with ASTM, ASME and ISO are largely driven by Division I. The Division was very ably chaired by Preston Boyd, HILL FASTENER

CORPORATION. DIVISION II: AEROSPACE PRODUCTS

Division II manufacturers supply very specialized products to the aerospace industry and the Department of Defense. Their products are frequently made from the more exotic materials and often have complex geometry in their design. Their supply to the government means they must comply with defense procurement agency constraints. This Division has an Affiliate Member category which are those key distributors in the supply chain to the major aerospace airframe, engine and flight component OEMs. The Division tends to be quite active in government affairs due to the many regulations governing the sale and use of the products their fasteners go into. This Division is the fastest growing in the IFI, has an extremely capable part time Division Manager in Pat Meade and has successfully participated in the start up of a community college program to train machinery operators for the industry. The Division was very ably chaired by Pat Wells, THE YOUNG ENGINEERS, INC. and the Technical Chairman is Owe Carlsson, ALCOA

FASTENING SYSTEMS. DIVISION III: AUTOMOTIVE INDUSTRY FASTENER GROUP (AIFG)

Division III is those manufacturers supplying product to the automotive OEMs and the Tiers that supply them. It meets bimonthly, frequently in the Detroit area to facilitate participation. Because of the nature of the automotive industry – frequently confrontational and always price and volume driven – the Division never lacks for projects to undertake, new business and legal issues to learn and best practices lessons from which all can benefit. The Division coordinates activities with USCAR, AIAG and OESA. This Division also has a very able and experienced part time Division Manager in John O’Brien. The Division hosts the annual “John D. Fischer” Memorial Golf Tournament in which Division members, the Institute’s current and

27

past officers and Associate Division members participate. This year past and present members of USCAR joined the tournament. The 2010 winning team for the golf tournament was Porter McLean, Chad Clifford, Ron Lash and Donny Schaaf. The group was very ably chaired by Pete Baenen, KAMAX L.P. ASSOCIATE SUPPLIERS’ DIVISION

The Associate Division members are the key suppliers of the raw material, machinery, equipment and services used in the production of fasteners/formed parts. They provide the Institute expertise in their particular area and brief Members on new technology, operational practices, business developments and trade issues impacting their ability to supply the fastener manufacturing market. Without the associate suppliers, there would be no industry. Twice a year they provide very focused briefings on one of their particular areas of expertise, a unique value to the Members. This group was very ably chaired by Bruce Smith, CARPENTER TECHNOLOGY CORPORATION.

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Industrial Fasteners Institute

2010 - 2015 Strategic Plan

Approved: 12/7/09

Vision: To be the globally recognized, North American focused, leading association representing the interests of the manufacturers of mechanical fasteners and formed parts, and the key suppliers to the industry, fostering their working together to shape the future of the industry. Mission: To represent the industry to its suppliers, customers, the government, and the public-at-large to advance the competitiveness, products, and innovative technology of the Member Companies in a global marketplace. Operational Values: To be Member driven, Board led, focused on continuous improvement in the process of serving our members in their voluntary participation in the development of business, technical and government affairs programs, and issues important to the industry’s success. Strategic Plan Committee Members: Ed Plomer – Illinois Tool Works, Larry Valeriano – California Screw Products Corporation, Karl Hutter – Click Bond, Inc., John Grabner – Cardinal Fastener & Specialty Co., Inc., Herman van Maaran – Kamax L.P., Don George – ND Industries, Inc., Rob Harris – IFI NOTE: Items not underlined are being done to some extent now.

Underlined items are those which need to be initiated.

29

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ract

-

Oth

er (t

o be

def

ined

) – “

Stat

e of

th

e In

dust

ry”

perio

dica

lly,

quar

terly

? Se

mi-a

nnua

l?

• D

efin

e sc

hedu

les

for o

ther

del

iver

able

s

• D

one

• S

till t

o be

def

ined

B

. P

rovi

de a

nnua

l re

view

s an

d bi

-an

nual

upd

ates

of

the

Stra

tegi

c P

lan

1.

Rev

iew

Pla

n fo

r acc

urac

y an

d al

ignm

ent w

ith g

oals

2.

M

ake

adju

stm

ents

whe

n ne

cess

ary

• S

trate

gic

Pla

n C

omm

ittee

•

Acc

epta

nce

of p

ropo

sed

chan

ges

at th

e A

nnua

l Mee

ting

by th

e B

oard

• P

endi

ng re

view

thes

e co

mm

ents

C.

Def

ine

the

valu

e pr

opos

ition

to b

e cl

ear t

o al

l cu

rren

t and

pr

ospe

ctiv

e m

embe

rs

1.

Prov

ide

a on

e-pa

ge

sum

mar

y of

wha

t the

IFI

is, d

oes,

and

sta

nds

for,

for

curr

ent a

nd p

rosp

ectiv

e m

embe

rs (s

ee G

oal 2

A)

• M

anag

ing

Dire

ctor

•

For a

ppro

val b

y th

e B

oard

at t

he 2

010

Ann

ual M

eetin

g an

d de

liver

ed to

the

Mem

bers

hip

and

pros

pect

ive

new

m

embe

rs th

erea

fter

• C

ompl

eted

by

Jenn

ifer J

ohns

Fr

iel a

nd J

ohn

O’B

rien

• Te

chni

cal D

irect

or

• A

ttend

, and

whe

n po

ssib

le, l

ead

tech

nica

l org

aniz

atio

ns o

f con

cern

: A

SM

E, A

STM

, IS

O, S

AE

, SC

BT

• B

eing

don

e w

ith A

SM

E, A

STM

, IS

O, S

AE,

& S

CB

T-IS

O T

C2

host

ed a

t IFI

HQ

201

0

D.

As

the

tech

nica

l vo

ice

of th

e in

dust

ry,

impl

emen

t too

ls to

m

aint

ain

the

IFI a

s th

e le

adin

g fa

sten

er

1.

Hav

e re

pres

enta

tion

in a

ll ke

y in

dust

ry re

late

d or

gani

zatio

ns

• D

ivis

ion

Man

ager

s

• G

ain

acce

ss to

key

cus

tom

er a

nd

supp

lier g

roup

s re

pres

entin

g in

dust

ries

of c

once

rn to

us

•

32

Obj

ectiv

es

Stra

tegi

es

Res

pons

ibili

ty

Evid

ence

/Tim

elin

e St

atus

as

soci

atio

n in

the

eyes

of t

he

fast

ener

co

mm

unity

2.

Iden

tify

key

indu

stry

m

arke

ts: i

.e. a

eros

pace

&

auto

mot

ive,

and

hav

e IF

I at

tend

ance

and

re

pres

enta

tion

at th

ose

indu

strie

s’ g

athe

rings

• M

anag

ing

Dire

ctor

•

Atte

nd k

ey in

dust

ry o

rgan

izat

ions

’ m

eetin

gs a

nd c

omm

ittee

s: M

MC

, N

AM

/CM

A, O

ESA

, USC

AR,

(How

can

we

do th

is b

ette

r?)

In 2

010

crea

te a

list

of k

ey c

usto

mer

gr

oups

and

/or a

ssoc

iatio

ns th

at c

an

impr

ove

IFI v

isib

ility

for d

ivis

ions

?

• Li

st p

repa

red

– J.

O’B

rien

atte

ndin

g O

ES

A, P

. Mea

de

GIF

WG

/NA

SC

, R. H

arris

NA

M

& s

elec

ted

Mem

ber U

SC

AR

R.

Har

ris @

201

0 &

201

1 A

WP

A

Wire

Rod

Con

fere

nce

May

20

11

• B

oard

• B

oard

mem

bers

to s

elec

tivel

y se

nd

pers

onal

invi

tatio

ns to

the

Ann

ual a

nd

Fall

Mee

tings

to S

enio

r Offi

cers

with

w

hom

they

hav

e a

pers

onal

/bus

ines

s re

latio

nshi

p

• B

oard

E.

Pr

omot

e in

volv

emen

t of

the

high

est l

evel

m

anag

emen

t pe

rson

nel f

rom

m

embe

r co

mpa

nies

at I

FI

mee

tings

and

ac

tiviti

es

1.

Dev

elop

pro

gram

for

outre

ach

to S

enio

r Offi

cer

leve

l per

sonn

el

• IF

I Cha

irman

•

Send

per

iodi

c le

tter t

o to

p ex

ecut

ives

of

mem

ber c

ompa

nies

to e

ncou

rage

th

eir i

nvol

vem

ent i

n IF

I mee

tings

and

ac

tiviti

es.

• W

ill fo

llow

Ann

ual M

eetin

g to

all

Prin

cipa

l Del

egat

es w

ith

enco

urag

emen

t for

Fal

l M

eetin

g.

33

GO

AL

3:

Mai

ntai

n Po

sitio

n as

the

Indu

stry

’s T

op T

echn

ical

Res

ourc

e an

d Fa

cilit

ator

O

bjec

tives

St

rate

gies

R

espo

nsib

ility

Ev

iden

ce/T

imel

ine

Stat

us

1.

Mai

ntai

n a

Tech

nica

l Dire

ctor

as

a k

ey e

mpl

oyee

of t

he

Inst

itute

2.

R

evie

w jo

b de

scrip

tion

to

mai

ntai

n ro

le in

line

with

the

IFI m

issi

on

• M

anag

ing

Dire

ctor

• Te

chni

cal D

irect

or o

n st

aff a

t all

times

an

d jo

intly

ID p

oten

tial p

roté

gés

at

2010

Ann

ual M

eetin

g •

Writ

ten

job

desc

riptio

n re

view

ann

ually

• D

one

• A

ttach

ed

A.

Sta

ff IF

I ap

prop

riate

ly to

su

ppor

t a s

trong

te

chni

cal

pres

ence

3.

Pro

mot

e a

web

-bas

ed

tech

nica

l dat

abas

e (IT

C)

• Te

chni

cal

Dire

ctor

•

Pre

sent

atio

n to

Boa

rd a

t 201

0 A

nnua

l M

eetin

g •

IFI T

echn

olog

y C

onne

ctio

n

• C

ompl

eted

and

ear

ning

re

venu

e

B.

Mai

ntai

n pa

rtici

patio

n in

ke

y in

dust

ry

stan

dard

s an

d te

chni

cal

com

mitt

ees

1.

Iden

tify

and

parti

cipa

te in

na

tiona

l and

inte

rnat

iona

l co

mm

ittee

s an

d or

gani

zatio

ns th

at p

rom

ote

fast

ener

sta

ndar

ds,

man

ufac

turin

g, a

nd

tech

nolo

gy

• Te

chni

cal

Dire

ctor

•

Ann

ual r

epor

t of c

omm

ittee

s’ w

ork

to

the

Boa

rd a

t the

Ann

ual a

nd F

all

Mee

tings

•

List

of I

FI s

taff

and

com

pany

pa

rtic

ipan

ts o

n va

rious

sta

ndar

ds

orga

niza

tions

. (w

eb s

ite, a

nnua

l re

port

, mem

bers

hip

dire

ctor

y?)

• In

Boa

rd N

oteb

ooks

• P

rovi

ded

• Te

chni

cal

Dire

ctor

and

D

ivis

ion

Man

ager

s

• R

epor

t to

Boa

rd a

t Ann

ual a

nd F

all

Mee

tings

IFI’s

par

ticip

atio

n in

ed

ucat

iona

l gro

ups

of in

tere

st—

targ

et

wou

ld b

e on

e gr

oup

per D

ivis

ion

over

th

e fiv

e-ye

ar p

erio

d

• IF

I/FTI

one

wee

k fa

sten

er

train

ing

at IF

I Jul

y 20

11.

• IF

I/FTI

aut

o fa

sten

er tr

aini

ng

in D

etro

it A

pril

2011

1.

Rec

ogni

zing

the

need

to

prom

ote

fast

ener

m

anuf

actu

ring

exce

llenc

e,

met

hods

, new

dev

elop

men

ts,

and

appl

icat

ions

, cre

ate

train

ing

reso

urce

s th

roug

h al

ignm

ent w

ith re

leva

nt

orga

niza

tions

to a

dvan

ce

such

edu

catio

n su

ch a

s th

e Fa

sten

er T

rain

ing

Inst

itute

, El

Cam

ino

Col

lege

.

• Te

chni

cal

Dire

ctor

•

To s

olic

it in

tere

st in

IFI a

s a

parti

cipa

nt

in th

e ed

ucat

iona

l are

na, s

ubm

it no

t le

ss th

an th

ree

artic

les

for p

ublic

atio

n in

tech

nica

l mag

azin

es a

nnua

lly

• C

ompl

eted

201

0 by

Joe

G

reen

slad

e an

d in

pro

cess

20

11

C.

Expa

nd tr

aini

ng

optio

ns fo

r fa

sten

ing,

fa

sten

er

man

ufac

turin

g,

and

othe

r pr

oces

ses

asso

ciat

ed w

ith

sam

e, i.

e., h

eat

trea

t, pl

atin

g &

co

atin

g, e

tc.

2.

Eval

uate

dev

elop

ing

an

annu

al IF

I Sch

olar

ship

pr

ogra

m w

ith a

key

ed

ucat

iona

l ins

titut

ion

or

orga

niza

tion

• M

anag

ing

Dire

ctor

an

d Te

chni

cal

Dire

ctor

• In

trod

uce

conc

ept f

or d

iscu

ssio

n at

th

e 20

10 A

nnua

l Mee

ting

• P

ut o

n ho

ld

34

Obj

ectiv

es

Stra

tegi

es

Res

pons

ibili

ty

Evid

ence

/Tim

elin

e St

atus

D

. E

xpan

d th

e us

e of

fo

rmer

indu

stry

ex

ecut

ives

to

repr

esen

t and

pr

omot

e IF

I to

mem

bers

, pr

ospe

ctiv

e m

embe

rs, a

nd

thei

r cus

tom

ers

1.

Pat

tern

this

dev

elop

men

t on

Div

isio

n II

succ

ess

with

Pat

M

eade

and

new

Div

isio

n III

in

itiat

ive

with

Joh

n O

’Brie

n

• M

anag

ing

Dire

ctor

• S

urve

y in

dust

ry s

egm

ents

/ gr

oups

of

segm

ents

for a

pot

entia

l nuc

leus

for

an In

dust

rial P

rodu

cts

Div

isio

n M

anag

er a

nd p

rese

nt a

t the

Fal

l 201

0 B

oard

Mee

ting

– al

low

tim

e fo

r new

D

ivis

ion

III in

itiat

ive

to re

solv

e its

elf

• D

ivis

ion

II co

mpl

ete,

Div

isio

n III

in

proc

ess

• D

iscu

ssio

n un

derw

ay w

ith

Indu

stria

l Pro

duct

s ca

ndid

ate

•

Don

e

35

GO

AL

4:

Prom

ote

the

Bes

t Int

eres

t of N

orth

Am

eric

an-B

ased

Fas

tene

r Man

ufac

turin

g

Obj

ectiv

es

Stra

tegi

es

Res

pons

ibili

ty

Evid

ence

/Tim

elin

e St

atus

A

. Pr

ovid

e aw

aren

ess

of,

and

inte

ract

ion

with

, glo

bal

fast

ener

as

soci

atio

ns,

com

pani

es, a

nd

user

indu

strie

s

• E

ngag

e w

ith fa

sten

er

asso

ciat

ions

nat

iona

lly

and

glob

ally

in o

rder

to

prom

ote

awar

enes

s of

IF

I and

edu

cate

our

m

embe

rs o

f glo

bal

activ

ities

.

• M

anag

ing

Dire

ctor

• In

vite

atte

ndan

ce a

t sel

ecte

d IF

I m

eetin

gs a

nd re

cipr

ocat

e by

atte

ndin

g th

eirs

– C

FA, E

IFI,

JIFI

, SIN

PA

, MW

FA,

NFD

A, P

WFA

, etc

. – S

uppl

y te

ntat

ive

sche

dule

for s

ame

at 2

010

Ann

ual B

oard

M

eetin

g

• To

be

impl

emen

ted

– co

st

issu

e

B.

Expl

ore

expo

rt

oppo

rtun

ities

an

d th

e de

velo

pmen

t of

thos

e op

port

uniti

es

for d

omes

tic

man

ufac

ture

rs

• E

xplo

re U

.S. D

ept.

of

Com

mer

ce e

xpor

t as

sist

ance

pro

gram

s

• M

anag

ing

Dire

ctor

•

Div

isio

n M

anag

ers

• Id

entif

y Ex

port

Ass

ista

nce

Prog

ram

s pr

esen

tatio

ns a

nd tr

aini

ng a

nd

disc

uss

at th

e 20

10 A

nnua

l Mee

ting

Div

isio

n M

eetin

gs

• E

xpor

t ass

ista

nce

prog

ram

s id

entif

ied

to M

embe

rs –

sp

eake

r to

be b

ooke

d Fa

ll 20

11

36

GO

AL

5:

Iden

tify

Gro

wth

Opp

ortu

nitie

s fo

r the

Inst

itute

Mem

bers

hip

Obj

ectiv

es

Stra

tegi

es

Res

pons

ibili

tyEv

iden

ce/T

imel

ine

Stat

us

• M

anag

ing

Dire

ctor

• M

onth

ly tr

acki

ng o

f new

mem

bers

hip

deve

lopm

ent s

tatu

s - M

SD

R

• Q

uarte

rly re

port

to B

oard

on

new

m

embe

rshi

p de

velo

pmen

t act

iviti

es

• M

SD

R im

plem

ente

d •

Rep

ortin

g A

nnua

l M

eetin

g –

8% n

et g

row

th

betw

een

2010

-11

Ann

ual

Mee

tings

– 5

Co.

and

3

Ass

oc. n

ew m

embe

rs

• D

ivis

ion

Cha

irmen

•

Div

isio

n M

anag

ers

to h

ave

pote

ntia

l new

m

embe

rs a

ttend

nex

t sch

edul

ed m

eetin

gs

•

A.

Exp

and

the

mem

bers

hip

by

10%

ann

ually

.

1.

Exp

and

the

pote

ntia

l new

m

embe

r lis

t and

dev

elop

an

“act

ive”

mar

ketin

g ca

mpa

ign

to

attra

ct n

ew m

embe

rs.

• M

anag

ing

Dire

ctor

•

Pre

sent

dra

ft pr

ogra

m a

t the

201

0 S

prin

g B

oard

Mee

ting

to d

eter

min

e fo

llow

on

need

ed a

nd im

plem

entin

g go

als

to b

e ad

ded

to th

e pl

an—

revi

ew a

t eve

ry B

oard

M

eetin

g as

a p

riorit

y

• To

be

revi

ewed

Ann

ual

Boa

rd M

eetin

g •

Sch

edul

e C

LE th

en C

GO

/ R

KF

& D

ET

non-

mem

ber

lunc

hes/

dinn

ers

with

JG

in

tros

• M

anag

ing

Dire

ctor

•

Div

isio

n M

anag

ers

to h

ave

pote

ntia

l new

m

embe

rs a

ttend

nex

t sch

edul

ed m

eetin

gs

• D

ivis

ions

II &

III a

re

havi

ng g

uest

atte

ndee

s B

. M

embe

r ret

entio

n pr

ogra

m

2.

Eng

age

with

all

curr

ent m

embe

rs

and

enco

urag

e an

act

ive

parti

cipa

tion

in IF

I act

iviti

es.

• D

ivis

ion

Cha

irmen

•

Ref

eren

ce G

oal 2

E

•

1.

Rev

iew

key

mar

kets

in w

hich

to

expa

nd th

e IF

I inf

luen

ce

• M

anag

ing

Dire

ctor

•

Dev

elop

“new

mem

bers

hip”

opt

ions

and

al

tern

ativ

es li

st fo

r Boa

rd d

iscu

ssio

n •

Sur

vey

Mem

bers

hip

for n

ew “e

nd u

se”

mar

ket s

egm

ents

they

bel

ieve

mig

ht b

e su

stai

nabl

e as

focu

s fo

r dis

cret

e m

eetin

g(s)

and

pre

sent

at 2

010

Spr

ing

Boa

rd M

eetin

g

• P

endi

ng, b

ut p

ossi

ble

IFI

led

mer

ger u

nder

di

scus

sion

2.

Mee

t with

key

man

ufac

ture

s in

th

ese

pote

ntia

l new

mar

kets

to

gaug

e in

tere

st in

join

ing

IFI a

nd

wha

t IFI

can

brin

g to

the

tabl

e

• M

anag

ing

and

Tech

nica

l D

irect

ors

• P

rovi

de B

oard

pre

limin

ary

list o

f pro

pose

d m

eetin

gs a

nd fa

ctor

s su

ppor

ting

thei

r in

clus

ion

on li

st fo

r sam

e

•

C.

(Rev

isit

in th

e fu

ture

Str

ateg

ic

Plan

ning

R

evie

ws)

Eva

luat

e ad

ding

ne

w fa

sten

er

Div

isio

ns, i

.e.,

cons

truct

ion,

m

edic

al d

evic

es,

plas

tic fa

sten

ers,

al

tern

ativ

e en

ergy

sp

ecia

l ap

plic

atio

ns

3.

Eva

luat

e ho

rizon

tal e

xpan

sion

of

exis

ting

Div

isio

ns, i

.e.,

DoD

Lan

d &

Sea

vs.

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38

Calendar of Meetings and Events

2 0 1 1 JAN 11 GIFWG Meeting Westwood Look Resort Tucson, AZ JAN 12 – 13 NASC Meetings Westwood Look Resort JAN 20 Division III Meeting Birmingham, MI MAR 7 – 8 ISO TC1 Thread Committee Berlin, Germany MAR 12 – 16 IFI ANNUAL MEETING St. Regis at Monarch Beach, CA

(Rate $280)

MAR 19 Pac-West Spring Meeting Seattle, WA APR 6 – 8 NFDA Annual Meeting PGA National Resort, FL APR 12 – 13 ASME Committee B18 on Fasteners New Orleans, LA APR 16 – 17 ASTM F16 Meeting Anaheim, CA APR 19 – 26 Passover APR 24 Easter APR 26 – 27 National Industrial Fastener Show / East Columbus, OH APR 27 – 28 IFI/Fastener Training Institute – Automotive Fastener Program Troy, MI MAY 2 – 5 IFE Trade Show Atlanta, GA MAY 10 – 12 ASME Committee B1 on Screw Threads Scottsdale, AZ MAY 19 Division III Meeting Birmingham, MI JUN 13 – 15 Fastener Tech – 2011 Chicago, IL JUN 15 – 17 RCSC Meeting Oakland, CA JUL 20 – 21 Eagles and Division III Meeting and Golf Outing (Tentative) Birmingham, MI JUL 25 – 29 IFI/Fastener Training Institute Independence, OH SEPT 17 – 21 IFI FALL MEETING Disney’s Grand Floridian, FL

(Rate $199)

OCT 4 SAE Fastener Committee Independence, OH

39

OCT 5 – 6 ASME B18 Fastener Committee Independence, OH OCT 8 Yom Kippur OCT 17 – 21 ISO TC2, Fastener Committee Berlin, Germany OCT 19 – 21 National Industrial Fastener Show / West Las Vegas, NV OCT 21 NFDA Autumn Meeting Las Vegas, NV NOV 14 – 15 ASTM F16 Meeting Tampa, FL NOV 17 Division III Meeting Birmingham, MI NOV 24 Thanksgiving DEC 25 Christmas

2 0 1 2 MAR 17 – 21 IFI ANNUAL MEETING Four Seasons Resort Dallas, TX (Rate $235) SEPT 29 – IFI FALL MEETING Omni Parker House OCT 3 Boston, MA (Rate $269) OCT 10 – 12 National Industrial Fastener Show / West Las Vegas, NV