METALCASTERS OF MINNESOTA SPRING 2018

To promote

the importan

ce of metal

casting Chairman’s LetterBob Mars – Board ChairHello everyone, happy Spring to all of you. We earned this one.Spring brings that feeling of “rejuvenation and light”. Hopefully all of you are seeing a nice upturn in your business and your problems are relatively small, not overwhelming. We sure feel that way as your Metalcasters Board of Directors ---- nothing is ever perfect, but the Association is rolling along and our efforts to make a difference are making a difference, which is great.One of the keys to our success has been the continued importance of the metalcasting industry in Minnesota. It was no coincidence that Tim Pawlenty jumped at the chance to be our Keynote Speaker; he understands the importance of the work you do and the number

of jobs you provide throughout the state. Another key component to our success is our relationship with the state chamber. The Minnesota Chamber of

Commerce is the leading voice of business over at the capitol and they’ve had a great year. As I’m sure you’ve read in the paper, they are working on our behalf to lower taxes, improve the R & D credit (from 2.5% to 4%) and to keep unreasonable regulation at bay. Board members Therese Benkowski and Ken Damewood are a great help. Therese is our liaison to the Chamber and Ken provides us with daily updates from their business lobbyists. I was on their Board for eight years and my old relationships with the Chamber staff come in handy when MCM needs something.I hope you like this edition of the MCM Newsletter. Hopefully we’ll

see you on May 22 at the Spring Luncheon. I think you will really like Tim Pawlenty’s presentation.Thanks again for your support and we’ll see you next week!!

Bob Mars, President/CEOMars Supply

MCM is an organization that is set up to support this industry and our members are important to us, please feel free to contact any of the Board members if your organization needs support from the industry as a whole to deal with an issue.

Our Mission MCM's mission is to promote the importance of metal casting in Minnesota and to be a strong advocate for our industry through effective lobbying on a local, state, and federal level.

MCM Board of Directors

Neil Ahlstrom, Smith Foundry

In this issue: Chairman’s Letter Smith Foundry Governmental Update Silica Free Absorbent Spring 2018 Luncheon Health Management

TO PROMOTE THE IMPORTANCE OF METAL CASTING IN MINNESOTA AND TO BE A STRONG ADVOCATE FOR OUR INDUSTRY THROUGH EFFECTIVE LOBBYING ON A LOCAL, STATE, AND FEDERAL LEVEL. TOGETHER, WE WIN |

Issue SPRING 2018

Aaron Astleford, Minncast Inc.Therese Benkowski, Weather-Or-Not Consulting, Inc.Ken Damewood, Northern Iron & MachineAndy Fulton, ME GlobalMatt Grilz, Pier FoundryBob Mars, Mars Supply Tom Pulkrabek, IRB Inc.

Smith Foundry Company works with Enterprise Minnesota on GreenLean Principles  Neil Ahlstrom, Smith Foundry Co.

Since 1923, Smith Foundry Company has been producing gray and ductile iron castings for the agricultural, power generation, heating and air conditioning, water related, and general industrial application industries. Smith specializes in low and medium volume production run castings ranging from several ounces up to 250 lbs., as well as casting conversions, rapid prototyping, and engineering design assistance for its customers. The company’s customer base ranges from Fortune 500 companies to small machine shops, many of which have been loyal customers of Smith for over 30 years. Smith employs 65 people at its plant located just south of downtown Minneapolis. In early 2011, Smith Foundry was experiencing a rapid increase in business volume and they decided to scale up operations and grow its workforce. This influx of new

employees, as well as the promotion of new supervisors, presented Smith with a unique opportunity to begin to build a culture based around lean manufacturing methodologies and environmentally-friendly practices. Enterprise Minnesota lean and talent development experts Tim Bjorgum and Sam Gould presented Smith with a two-part solution to address the company’s need for employee development and lean methods implementation. They deployed Enterprise Minnesota’s GreenLean® Principles to help Smith implement lean methods and reduce environmental wastes, and they also helped the company implement Job Instruction, a Training Within Industry (TWI) component, to help the new employees and supervisors grow in their new roles.

Because of its work with Enterprise Minnesota, Smith Foundry realized reduced labor, material, inventory, and energy costs.  And they lowered greenhouse gas emissions and decreased environmental impact from runoff.  Safety improved due to reduced forklift traffic and improved flow of product through the plant.  Smith yielded an annual cost savings of $257,000, invested $154,000 in plant and equipment, and retained over $3.7 million in sales revenue. 

With all legal challenges defeated, silica rule to take effect next month

By Paul Serafini, Sotera Consulting, LLC

On December 22, 2017, the U.S. Court of Appeals for the District of Columbia announced that they had rejected all remaining challenges to OSHA’s controversial Respirable Crystalline Silica (RCS) regulation for general industry and construction employers. The challenges had been filed by various industry trade groups representing the construction, foundry & manufacturing industries.

The final portion of the rule, affecting general industry employers, including foundries, is now slated to take effect in a little over a month. An earlier rule affecting only the construction industry already took effect last year.

The regulation cuts the Permissible Exposure Limit (PEL) for Respirable Crystalline Silica in half, from 100 micrograms per cubic meter of air, to 50 and creates dozens of new obligations related to written exposure control programs, medical exams for affected employees, respiratory protection, house-keeping, engineering controls, and training.

The groups challenging the new requirements made

TO PROMOTE THE IMPORTANCE OF METAL CASTING IN MINNESOTA AND TO BE A STRONG ADVOCATE FOR OUR INDUSTRY THROUGH EFFECTIVE LOBBYING ON A LOCAL, STATE, AND FEDERAL LEVEL. TOGETHER, WE WIN |

Issue SPRING 2018

several arguments, including that the rule will not have a material effect on the prevention of deaths from diseases such as silicosis and lung cancer, and that the new rule is not technologically or economically feasible. They had also argued that OSHA violated several administrative procedural requirements in promulgating the new rule.

The court not only rejected all of those arguments, but sided with labor groups, including the AFL-CIO, who argued that the rule didn’t go far enough in protecting workers because it lacked “medical removal” provisions which would have required employees to be removed from jobs when they became ill, and only required medical surveillance for employees who were exposed for 30 days per year or more.

The court rejected the latter argument but agreed with the first, calling OSHA’s actions in foregoing these protections “arbitrary and capricious”. The court ordered OSHA to reconsider and further explain that aspect of the rule.

If you have questions about OSHA’s requirements related to Respirable Crystalline Silica and what employers need to do to comply, please call Sotera Consulting, LLC at (612)597-6463 or email paul@soteraconsulting.com.

TO PROMOTE THE IMPORTANCE OF METAL CASTING IN MINNESOTA AND TO BE A STRONG ADVOCATE FOR OUR INDUSTRY THROUGH EFFECTIVE LOBBYING ON A LOCAL, STATE, AND FEDERAL LEVEL. TOGETHER, WE WIN |

Issue SPRING 2018

Governmental UpdateGovernmental Liaison: Therese M. Benkowski, Weather-Or-Not Consulting, Inc.

MCM continues to follow legislative bills at the State Capitol. As of the writing of this article, the hot issues this session include tax reform, transportation, workforce development, and environmental regulatory reform. The Minnesota Chamber is working hard at getting our legislators to understand that Minnesota business taxes are the 3rd highest corporate tax rate in the nation and the 4th

highest personal income taxes. It is the hope that with this in mind, the Budget Surplus will be allocated for tax cuts and to return some of that money back into the pockets of the taxpayers. On the side of transportation, the Chamber is supporting a constitutional amendment to dedicate 100% of auto parts sales taxes toward road funds. Support for this issue is recognized in the Vote Yes 4 Roads campaign. Efforts by members of Minnesota Manufacturers Coalition and the Chamber continue toward workforce development. On the environmental side of things, the Chamber is supporting a bill to further streamline environmental review and permitting. Many of the changes relate to

wetland mitigation and water quality standards. And lastly the Chamber supports holding a statewide primary election in June instead of August to promote better candidate and voter turnout.

Minnesota has a short session this year with Constitutional Adjournment scheduled for May 21st, so progress of each item will need to move quickly. Feel free to contact your legislators to make your voice heard on any of the pending bills. You may also contact any of the Board members if your organization needs support from the industry to deal with an issue. MPCA Grant Opportunity: The MPCA is offering grant money for facilities that can reduce Volatile Organic Compound (VOC) emissions. This grant opportunity is intended to help businesses upgrade to alternative products or processes that put fewer VOCs into the air. The maximum grant award is $24,000 with a 50% required match. Deadline for grant applications is May 18, 2018 by 4:30pm. Special consideration will be given for innovative projects from targeted applicants in environmental justice and highly urbanized areas. Details can be found on the

MPCA’s website. Contact Eric David at eric.david@state.mn.us or 651-757-2218.

TO PROMOTE THE IMPORTANCE OF METAL CASTING IN MINNESOTA AND TO BE A STRONG ADVOCATE FOR OUR INDUSTRY THROUGH EFFECTIVE LOBBYING ON A LOCAL, STATE, AND FEDERAL LEVEL. TOGETHER, WE WIN |

Issue SPRING 2018

New Silica-Free Absorbent!SpillFix is excited to announce that the Occupational Health & Safety magazine New Product of the Yearis now available in Minnesota through Mars Supply.

SpillFix is made from a bi-product of the coconut (coir), which is an organic renewable resource that is non-carcinogenic, contains no chemicals and is silica free. It instantly absorbs hazardous liquid spills on contact including oils, fuels, solvents, paints and chemicals, enabling faster, cleaner, safer and more effective clean up with minimal downtime.

When compared to clay-based absorbents, SpillFix clients need 80 percent less product to clean up spills in less than half the time.

SpillFix is also landfill safe, providing lower disposal cost than other absorbent products with no environmental impact.

For further information or product demonstration, contact Mars Supply at 952-884-9388.

Also available in 7 & 20-pound bags.

You’re invited

Spring Luncheon

Date: Tuesday, May 22, 2018Place: Jax Café

1928 University Ave. NEMinneapolis, MN 55418

(easy parking available across the street)

Directions: http://jaxcafe.com/?act=contactus

Tim Pawlenty’s top priority as Minnesota’s next Governor will be to put those in the middle –who are working hard and getting squeezed –first. It’s a better way forward.

The proud son of a truck driver whose mom died when he was 16, Tim Pawlenty grew up in a working-class family in South St. Paul. He was the first person in his family to graduate from college, working his way through the University of Minnesota.

He was elected Governor in 2002 during tough economic times. But he balanced Minnesota’s budget by making tough choices and holding government accountable.

As Governor, his education, healthcare, and energy initiatives were widely viewed as among the most innovative in the nation. When Tim was Governor, Minnesota finished #1 in the nation in ACT scores and ranked among the top three states in

TO PROMOTE THE IMPORTANCE OF METAL CASTING IN MINNESOTA AND TO BE A STRONG ADVOCATE FOR OUR INDUSTRY THROUGH EFFECTIVE LOBBYING ON A LOCAL, STATE, AND FEDERAL LEVEL. TOGETHER, WE WIN |

Issue SPRING 2018

Correlate. Connect. Change. Why integrate health management and workers’ compensation?

A Minnesota manufacturer with more than 400 employees made the decision to become the employer of choice in its community and gain many related advantages, such as improved employee recruiting and retention, better morale and productivity, and reduced costs.

Challenges

With an aging workforce, rising cost and limited internal and external resources, our client knew they needed to address their employees’ health, well-being and safety.

Solutions

Associated Benefits and Risk Consulting dove into their employee populations data and developed solutions to: Improve the health of

employees and their families Decrease the frequency and

severity of work place injuries

Reduce health plan and workers’ compensation costs

The health management team recommended integrating biometrics, wellness visits and primary care. This led to a strategic, progressive plan with a focus on musculoskeletal conditions and comorbidities. The workers’ compensation risk team recommended resolving the open legacy claims and establishing a comprehensive risk prevention and control program.

ResultsOur client saw results using:

Correlated data-driven analysis Interconnected tactics and

strategies Strategic resource allocation and

management

Employee well-being: The members’ relative risk score (RRS) dropped from 1.80 in 2012 to 1.34 over the past three years to 1.28 despite the increasing age (over 50) of the employee population. And the news gets better with a projected drop to 1.22.

Workers’ compensation: The experience rate has dropped 62 points, decreasing from the original rate of 1.36 to the current rate of .74. The client also saw the number of injuries decline from a three-year average of 47 claims to a three-year average of 37, with claim costs decreasing from the same three-year average of $836,883 annually to $160,003 annually.

Michael Nicolas, Business Insurance Consultant600 Clearwater DriveMinnetonka, MN 55434

Spring Luncheon

Date: Tuesday, May 22, 2018Place: Jax Café

1928 University Ave. NEMinneapolis, MN 55418

(easy parking available across the street)

Directions: http://jaxcafe.com/?act=contactus

Tim Pawlenty’s top priority as Minnesota’s next Governor will be to put those in the middle –who are working hard and getting squeezed –first. It’s a better way forward.

The proud son of a truck driver whose mom died when he was 16, Tim Pawlenty grew up in a working-class family in South St. Paul. He was the first person in his family to graduate from college, working his way through the University of Minnesota.

He was elected Governor in 2002 during tough economic times. But he balanced Minnesota’s budget by making tough choices and holding government accountable.

As Governor, his education, healthcare, and energy initiatives were widely viewed as among the most innovative in the nation. When Tim was Governor, Minnesota finished #1 in the nation in ACT scores and ranked among the top three states in

AT A GLANCE Challenges

Rising health plan costs High workers’ compensation costs Aging workforce

Solutions Wellness strategies Risk prevention and control

program Results

Lower Relative Risk Score: 1.80 to 1.28

Lower Experience Modification