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TM TM Precision News . ........................................................................................................................................ ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... ......................................................................................................................................... T TE EC CH HN NO OL LO OG GY Y . B BU US SI IN NE ES SS S . E ED DU UC CA A T TI IO ON N . E EV VE EN NT TS S . D DI IR RE EC CT TO OR RY Y TM ARIZONATOOLING.ORG MARCH/APRIL 2015 THIS ISSUE: Why Join the NTMA? / Making a Difference in Your Industry / An Emboldened President P N HELPS YOU MAKE THE MOST OF YOUR RESOURCES AND MEMBERSHIP NTMA SW BRINGS YOU: THE EXPERIENCE AND INSIGHT TO GET THE JOB DONE! Inside: PREPARING FOR SUCCESS NIMS ANNOUNCES RECORD NUMBER OF CERTIFICATIONS PURSUED FOR METALWORKING JOBS PROTECTING AGAINST HACKERS BREACHES AT SMALL BUSINESSES ARE OFTEN OFTEN DEVASTATING- EVEN TO THE POINT OF BUSINESS FAILURE WILD WILD WEST! JOIN US THIS JULY IN DOWNTOWN PHOENIX FOR THE SECOND ANNUAL NTMA SOUTHWESTERN REGIONAL CONFERENCE! next page AMERICAN MANUFACTURING IS BACK IN THE GROOVE! THE TRENDING ISSUE / LATEST NIMS DATA SHOW THE POSITIVE SIGNS! / Sandvik Coromant metal cutting technology in action

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Precision News, the trade magazine from the Arizona Tooling and Machining Association (ATMA). Featuring articles about manufacturing in the Southwest United States and beyond, is moving innovation and technology forward.

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TMTMPrecisionNews. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TTEECCHHNNOOLLOOGGYY .BBUUSSIINNEESSSS .EEDDUUCCAATTIIOONN .EEVVEENNTTSS .DDIIRREECCTTOORRYY

TM

ARIZONATOOLING.ORG MARCH/APRIL 2015

TTHHIISS IISSSSUUEE:: Why Join the NTMA? / Making aDifference in Your Industry / An Emboldened President

PN HELPS YOU MAKE THE MOST OFYOUR RESOURCES AND MEMBERSHIP

NTMA SW BRINGS YOU:

THEEXPERIENCEANDINSIGHTTOGETTHE JOBDONE!

IInnssiiddee::PREPARING FOR SUCCESS NIMS ANNOUNCES RECORD NUMBER OF CERTIFICATIONSPURSUED FOR METALWORKING JOBS

PROTECTING AGAINST HACKERSBREACHES AT SMALL BUSINESSES ARE OFTEN OFTEN DEVASTATING- EVEN TO THE POINT OF BUSINESS FAILURE

WILD WILD WEST!JOIN US THIS JULY IN DOWNTOWN PHOENIX FOR THE SECOND ANNUAL NTMA SOUTHWESTERN REGIONAL CONFERENCE!next page

AMERICAN MANUFACTURING ISBACK IN THE GROOVE!

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march/april 2015 arizonatooling.org PrecisionNews 01

MARCH/APRIL 2015 VOLUME 5 • ISSUE 2

PrecisionNews

The Premier NTMA SW Regional Magazine

EXECUTIVE DIRECTOR & EDITOR Chris Mignella

CONTRIBUTING WRITERSATMA Safety Team, David Lair, Chad Moutray, Omar S. Nashashibi, Tim Reynolds

EDITORIAL, ADVERTISING & ADDRESS CHANGESChris Mignella, Executive Director & EditorPhone: 602.388.5752Email: [email protected]

Precision News is published bi-monthly by the ArizonaTooling & Machining Association (ATMA). Opinionsexpressed are those of the authors or persons quoted and not necessarily those of the ATMA. While efforts to ensure accuracy are exercised, ATMA assumes noliability for the information contained in either editorial or advertising content. ATMA assumes no responsibility or liability for unsolicited manuscripts or artwork.Reproduction in whole or part without the expressedwritten consent from ATMA is prohibited. Precision Newsis the registered trade name of this publication.

Copyright ©2015 by ATMA. All rights reserved.

TM

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OOUURR MMIISSSSIIOONN::

“WE JOIN TOGETHER AS MEMBERS OF THE SW REGION PRECISION CUSTOM MANUFACTURING COMMUNITY TO ACHIEVE BUSINESS SUCCESS IN A GLOBAL ECONOMY THROUGH ADVOCACY, ADVICE, NETWORKING, INFORMATION, PROGRAMS AND SERVICES.”

03 President’s Letter

04 Policy Matters

21 NTMA Initiatives

22 Websites that Work

22 Arizona Chapter Info

27 NTMA Membership

28 Shop Floor

Contents12

16

Features Departments

NIMS Announces Record Number of Certifications Pursued for Metalworking JobsThe National Institute for Metalworking Skills (NIMS), the metalworking industry’s premier standards and skillcertification body, announced that it awarded a recordnumber of credentials to individuals seeking to enter intoor advance in jobs in the industry.

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As I enter my second year as your ATMA President it is amazing to me the level ofcommitment it has taken to stay on top of the numerous obligations the association has.

The ATMA is actively involved with continuing efforts to develop your skilled work force. As we havediscussed on a number of occasions, work force is a major concern for our industry – locally andnationally. None of us are islands in this effort. Your ATMA Board has supported the efforts to steer theArizona Department of Education, the Arizona Community Colleges, and the local government agenciestoward closer relationship with to our industry. We continue our dialog with all of them and as one of your representatives along with the members of the Arizona Manufacturing Partnership we haveattended a number of meetings and events promoting actions which are changing the way thesegroups are responding to our needs. Our position is steadfast and our message constant. Changes are happening. But what we need is MORE of YOU to join in our chorus so that these groups recognizeour voice is larger and louder than the few of us that meet with them regularly.

We are participating with the “Dream It Do It” campaign which is spreading the message in Arizonaabout careers in manufacturing.

We’ve worked with AMP to help bring sponsorship for the “The eduFactor” to 40 high schools in ourstate. This is an educational website from Edge Factor that brings great content into the high schools topromote manufacturing careers.

Coming in October we will again participate in Manufacturing Month to help bring students, parents and educators into our shops so they can see firsthand how manufacturing effects their daily lives. As NTMA regular members you have two bodies from which you can seek support and participate - the NTMA and the ATMA. Your national association continues to look for new ways and new tools toassist the membership. If you haven’t visited their website in a while or read their email blasts I wouldencourage to do so. I was reminded of a single tool this last month – the “NTMA Wage and BenefitsReport”. If you are a regular member and participated in the survey you received the report whichcaptures the data from your region and across the country. It is an outstanding tool to help youdetermine where you match up to wages and benefits for your employees. How can you make informed decisions without current data? So this is just one example of a tool made available to you as a member. The national events, meetings, online aides, etc. are developed for you to haveopportunities to participate and use to help your businesses.

Likewise your local ATMA meets and plans and promotes events that your board believes will helpcontribute to your success. We try and bring to you events that promote networking and content toprovide information and education for our members and their staffs. We’re having a series of RoundTable events to get the regular members together to discuss various topics.

Once again the ATMA is hosting the Southwest Regional Conference here in Phoenix. This is the thirdyear of this weekend conference which brings participation from several southwest NTMA chapters.

In our regular dinner meetings we continuously strive to bring relevant content for you to hear andprovide an opportunity for meeting with your peers.

So my message to you in this issue is – If you want to know what’s going on - then get involved and findout first hand. Our ATMA calendar posted on our website is there to help identify opportunities for youto get together with your association members. We’re LOOKING for YOU at one of our next events.

Manufacturing leads the way nationally for economic strength and job creation! Get involved, help makea difference in your industry!

I wish you continuing success in 2015!

Greetings, P.N. Readers!

First WordPRESIDENT’S LETTER

DAVID LAIRVice President, Dynamic Machine & Fabrication Corp.and President, ATMA

march/april 2015 arizonatooling.org PrecisionNews 03

.. .. . .

04 PrecisionNews arizonatooling.org march/april 2014

In the November 2014 Congres-sional elections, Republicans tookcontrol of the Senate for the firsttime since 2006 and the House GOPexpanded their majority to its largest size in 86 years. House Democrats have littleability to affect the outcome of legislationand Senate Republicans only need sixDemocrats to defect on any vote to movemajor legislation. President Obama’s jobapproval rating hasn’t exceeded 50% sinceFebruary 2013. Seemingly, many observerswould expect the White House to adopt a conciliatory tone and appease the newRepublican Congress. They were wrong.

On January 20th, a confident PresidentObama delivered his sixth State of theUnion to this newly Republican-heldCongress. At times, the President seemedplayful with his largely GOP audience,winking to some and reminding them that he won two elections after cheers when hesaid he has run his last campaign. While he may not appear on the 2016 ballot, hisactions are framing the Presidential electionone year before the primaries begin.

In what many are calling a bold or evenstrident tone, the President made clear in his speech that he will not spend hisremaining months in office as a lame duck.He threatened to veto efforts to roll back theAffordable Care Act, Wall Street reform,immigration, or his climate change agenda,with the Keystone Pipeline his firstopportunity to do so.

As previewed in the State of the Union, the President is baiting CongressionalRepublicans to battle over the middle classvs. the wealthy. He mentioned the phrase“middle class” more than any otherPresident in the past fifty years anddiscussed education policy more often thanany of his predecessors with the exceptionof Bill Clinton. The President spent 25minutes discussing the economy (8minutes in 2014), mentioning the word“jobs” 55 times, more than twice as often as any other President dating back toPresident Johnson’s White House.

In February, the Administration sent toCapitol Hill its proposed Fiscal Year 2016Federal Budget. While CongressionalRepublicans immediately declared hisrequest dead on arrival, President Obama’sbudget plan appeared intended more for thevoting public than legislators in Washington.He proposes to undo the sequester budgetcuts, raises taxes on the “wealthy”, andreplenishes the highway trust fund forinfrastructure development.

Overall, the FY16 budget would set totalfunding at $74 billion above the levels putinto place during sequestration. This 7%increase includes $38 billion for defenseand $37 billion in non-defense spending.The Administration “pays for” the higherfunding levels, in part, through a 14% tax on current overseas corporate profits(repatriation) and a 19% percent tax onfuture profits earned abroad. The budget

also increases the capital gains anddividends rate to 28 percent, from a currenttotal of 23%, which raises $320 billion over 10 years.

Specific to manufacturing, theAdministration is proposing to expand thenumber of manufacturing institutes fromnine to sixteen facilities. These innovationcenters foster partnerships among theprivate sector, universities, researchers, and foundations. The White House also sets a target of doubling the number ofapprenticeships within five years.

The President’s budget expands uponseveral of the priorities he plans to use tosupport his message towards the middleclass, especially focusing on workplaceflexibility. The proposed budget seeks toexpand funding for Pre-K and child careprograms targeting low- and moderate-income families.

Continuing on the workplace flexibility(middle class) themes, the PresidentObama urged Congress to pass theHealthy Families Act, giving workers theability to earn up to seven days of paid sick time off each year. He also is askingCongress to advance a bill granting up to an additional six weeks of paid parentalleave for federal employees (a PresidentialMemorandum recently granted six weeks to federal employees). Many observers inWashington anticipate efforts to expand to all private sector employers many of theworkplace policies adopted for federalemployees and contractors.

While he seeks economic policies gearedtowards the middle class, Administrationregulators continue their efforts on climatechange regulations long sought byenvironmental groups and other traditionallyDemocratic constituencies.

continued on page 06

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Policy MattersBECOME A VOICE FOR CHANGE

Photo: NTMA

Despite New Congress, an Emboldened Presidentby OMAR S. NASHASHIBI

Photo: NTMA

+

fyi:Overall, the FY16 budget would set total funding at $74 billion above the levels

put into place duringsequestration.

march/april 2015 arizonatooling.org PrecisionNews 05

/

Contact the Arizona Tooling and Machining Association and discover howyou can put your unique skill-set to work in Arizona and give your companythe Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

[email protected]

ATMAP R E C I S I O N

Arizona Tooling & Machining Association

arizonatooling.org

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A CUTABOVE.We have the capabilities and the skills to get any job done.

CNC Machining5-Axis MachiningMulti-Spindle MachiningLights Out MachiningBlade and Blisk MachiningElectro-Discharge MachiningLaser MachiningWaterjet MachiningSheet Metal FabricationGun DrillingJig Bore/Jig GrindHydroformingCylindrical GrindingSurface GrindingCurvic GrindingTool GrindingThread GrindingCreep Feed GrindingChemical Milling

Swiss TurningMicro-MachiningHoneycomb SealsTube BendingHigh Speed StampingSand CastingInvestment CastingMolded RubberPlastic Injection MoldingRapid PrototypingBalancingElectromechanical AssemblyClean Room AssemblyWire Harness ProductionMIG/TIG WeldingResistance WeldingHydrogen BrazingVacuum BrazingLaser Welding

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The National Tooling and Machining Associ-ation is working with allies in Washingtonprevent unnecessary and ineffectiveregulations. This includes opposing a newEPA proposal, which could increase theprice of electricity by up to 20% for everyNTMA member, costing the averagecompany $30,000 annually. Regulatorycompliance costs businesses over $2.2trillion each year, money better spent onpurchasing equipment and creating jobs. In2014, federal government agencies issued3,541 final regulations and proposed 2,375.

There are several areas where we expect thePresident and Congressional Republicans towork together. Sources indicate agreementis possible on Trade Promotion Authority,transportation infrastructure, cybersecurity,

and ISIS authorization, among others.Discussions are beginning to emerge onsome level of tax reform, possibly for C-Corporations (lower rate from 35% to 28%).NTMA is working to expand the conver-sations to include all businesses and coverS-Corporations and other pass-throughs.

Many of the battles Americans will witnessbetween this Congress and the Presidentare part of the broader messaging warstargeting voters in 2016. The two sides willoften talk past one another as PresidentObama tries to frame the race for the WhiteHouse around middle class policies. HouseRepublicans are content with a comfortablemajority and a buffer of 20-25 moderateGOP Freshman members anxious to protecttheir seats ahead of tough reelections.

Meanwhile, Republican Senators may beleft alone at the dance looking for a partnerto prove they can legislate and governbefore 24 of their own face voters inNovember 2016.

While all politics are local, the State of theUnion, FY2016 Budget, EPA regulations,and veto threats show that when it comesto Presidential politics, it is the long gamethat matters most.

OMAR NASHASHIBI is a foundingpartner at The Franklin Partnership, LLP, a bi-partisan government relations firmretained by the National Tooling andMachining Association inWashington,D.C.Learn more at: www.franklinpartnership.com

Policy Matters

Despite New Congress, an Emboldened Presidentcontinued from page 04

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Feature Story//PrecisionNews

NIMS AnnouncesRecord Number of Certifications Pursuedfor Metalworking JobsPosted on January 20, 2015

march/april 2015 arizonatooling.org PrecisionNews 13

Fairfax, Virginia, January 20, 2014 — Today, theNational Institute for Metalworking Skills (NIMS), themetalworking industry’s premier standards and skillcertification body, announced that it awarded a record numberof credentials last year to individuals seeking to enter into oradvance in jobs in the industry. In 2014, NIMS issued 18,947industry-recognized credentials, representing a 36% increasefrom 2013.

“It is clear that the precision manufacturing sector is strongand growing, and more students and workers are preparingfor success in the wide variety of jobs our industry offers,” saidJim Wall, Executive Director, NIMS. “NIMS would like tocongratulate more than 8,000 individuals who earned at leastone industry-recognized credential last year and have the ‘markof excellence’ that will make them highly sought-after talent.”More than 6,000 metalworking companies and major industrytrade associations have invested more than $7.5 million inprivate funds to develop NIMS standards and credentials thatprepare and advance the industry’s workforce, and continue toupgrade and maintain the standards as the industry changes.

“The precision manufacturing industry is constantly evolving,becoming more complex, technology-driven and innovative,”said Greg Chambers, director of compliance, Oberg Industries,Inc. and chairman of the board, NIMS. “NIMS ensures thatcompanies, workers, and students keep up with changingindustry standards and job requirements and that trainingprograms equip individuals with the knowledge, skills andabilities they need to succeed in in-demand jobs.”

NIMS has developed skills standards ranging from entry-level tomaster-level that cover the breadth of metalworking operations,including metalforming and machining. NIMS certifiesindividuals’ skills against these national standards via credentialsthat companies can use to recruit, hire, place, and promoteindividual workers. Training programs, both at the secondaryand post-secondary level, incorporate the credentials asperformance or completion measures of academic courseworkin metalforming or machining programs.

Contact NIMS at [email protected] or call 703.352.4971with questions.

More students and workers are preparing for success, competition in high-demand careers.

14 PrecisionNews arizonatooling.org march/april 2014

Feature Data//PrecisionNews

NIMS CredentialsbyRegion

2012 2013 2014Southeast

1027 1513 2036

North Carolina 255 424 515

Florida 165 127 338

Tennessee 94 220 280

Virginia 88 177 272

South Carolina 108 171 211

Alabama 86 149 183

Mississippi 227 189 180

Georgia 4 56 57

2012 2013 2014West

1222 1445 1905

California 884 946 1043

Arizona 156 216 285

Washington 81 118 172

Colorado 4 22 109

Nevada 75 99 105

Montana 1 1 89

Oregon 4 5 55

Hawaii 2 7 21

Utah 10 24 13

Idaho 4 9 11

Wyoming 3 5 2

2012 2013 2014Midwest

3022 4313 6572

Illinois 886 1484 2285

Indiana 924 1348 1808

Minnesota 676 344 590

Missouri 147 307 431

Iowa 4 155 375

Wisconsin 24 115 310

Kansas 22 133 265

Michigan 115 65 197

Ohio 88 244 191

Kentucky 129 112 109

Nebraska 0 2 9

North Dakota 1 4 1

South Dakota 6 0 1

“It is clear that the precision manufacturing sector is strong and growing...”

march/april 2015 arizonatooling.org PrecisionNews 15

2012 2013 2014Northeast

2471 3119 3886

Pennsylvania 1470 1881 2189

Connecticut 396 549 792

Maryland 183 187 166

New Jersey 38 77 166

Massachusetts 177 170 163

West Virginia 124 152 121

Maine 106 102 112

New York 66 56 91

New Hampshire 5 13 30

Rhode Island 8 27 28

Vermont 4 1 19

Delaware 0 5 6

Alaska 0 21 3

DC 0 1 0

2012 2013 2014Southwest

374 1034 1310

Texas 117 487 703

Oklahoma 245 448 518

Louisiana 5 40 39

New Mexico 2 26 36

Arkansas 5 33 14

“It is clear that the precision manufacturing sector is strong and growing...”

16 PrecisionNews arizonatooling.org march/april 2014

Feature Story//PrecisionNews

Protecting Your Organization From Online

H4CK3R5

STORY BY MARK EICH

march/april 2015 arizonatooling.org PrecisionNews 17

Theft of personal financial informationOrganized crime groups (primarily in Russia, Eastern Europe, and China)have created a high demand for personal financial information, includingname, address, social security number, driver’s license number, bankaccount number, and credit card details. Hackers steal this informationthen sell it to criminals who use it to commit various forms of identity theft.The more complete and associated to an individual, the more valuable theinformation is on a “wholesale” basis. Payroll databases, customer salesrecords, and supplier/accounts payable records are common targets for thistype of attack.

This was the driving force behind the breaches at Target, Neiman Marcus,the University of Maryland, and many others. Indeed, as the price beingpaid to hackers escalates, smaller businesses are being targeted.

Online banking malwareZeus, Citadel, Spyeye, and Gozi are just a few examples of the new breed ofsophisticated online banking malware. Once a network is infected with thistype of malware the online banking credentials (user ID, password,challenge questions) are harvested by the attacker, who then logs into theonline banking server and executes fraudulent wires or ACH transactions.More sophisticated malware can bypass multifactor authentication tokens.This type of attack is often called corporate account takeover.

Malware code is often delivered via email, either by a file attached directlyto the message, or more commonly, by use of a link to a rogue web page. Inthe latter case, the malware returns with the web page and installs itself onthe victim’s computer. This type of attack has been dubbed “spear phishing”since often only one email is sent to the victim organization.

Spear phishing emails have improved significantly in their sophisticationand effectiveness, and can be very difficult for users to identify asfraudulent. They often use carefully crafted scripts to entice the user toclick the link. In some cases, the emails are even “spoofed,” that is, they arecrafted to appear to come from someone inside the victim organization(e.g., the company president). In other cases, the emails are designed sothey appear to come from a legitimate business or organization, such asUPS, American Express, PayPal, or the IRS. These spoofing tactics aredesigned to increase the likelihood that the recipient will act quickly,clicking on the link without much thought.

continued on page 18

Small organizations, churches and otherorganizations that never consideredthemselves targets are becoming victimsof credit card fraud, automatic clearinghouse (ACH) fraud, and wire fraud. Thesecrimes are often perpetrated from outsidethe country by attacking the online cashmanagement features that banks providetheir customers.

You can take steps to protect your entity,but before taking action, you must firstunderstand and acknowledge this growingthreat.

The attacks fall into three main categories:

• Theft of personal financial information

• Online banking malware (so-called corporate account take-over)

• Ransomware attacks (the most common being CryptoLocker)

WHILE HIGH PROFILE BREACHES AT TARGET, HOME DEPOT, AND SONYDOMINATE THE HEADLINES, BREACHES AT SMALL BUSINESSES FLY UNDERTHE RADAR. YET THESE DISRUPTIONS ARE OFTEN MORE DEVASTATING,EVEN TO THE POINT OF BUSINESS FAILURE.

Feature Story//PrecisionNews

RansomwareRansomware is a malware that encrypts virtually all data and filesthat it can find, both on the local machine and on every networkdevice that it can connect to. This renders the data unusable by thevictim organization. Typically the hacker requests payment (theransom) in exchange for decrypting the affected data. This is howthe hacker hopes to make his money.

Having working backups that are regularly tested allows victims towipe the affected machines clean and reinstall both systems anddata. However, for companies with high reliance on technology,even the downtime required to wipe and reinstall can result incostly losses and reputational damage.

CryptoLocker is by far the most common ransomware deployed.CryptoLocker attacks are increasing rapidly because they are easyand effective. Such attacks rose from 7,000 in April 2014, to morethan 15,000 in May. Kovter is a ransomware variant with anespecially malicious tactic. It dumps a payload of childpornography, in addition to the encryption, to put more pressureon the victim to comply with the ransom demand.

Protecting your businessPreventing these attacks is no small task. It requires a multilayeredapproach. Organizations should consider each of these tactics.

Properly defend- Keep current on technical defensive measures such as firewalls,intrusion detection systems, and spam filters.

- Keep up-to-date on the anti-virus software on each device, andcomplete regular scans to keep them clean.

- Keep all network servers and PC workstations current with thelatest security updates and patches.

- Limit the number of PCs used to conduct online cashmanagement. If possible, isolate them from the rest of thecompany network.

- Encrypt sensitive data, such as intellectual property and personalfinancial information.

- Utilize bank security tools for online cash management, including multifactor authentication, ACH blocks and filters

- Daily and individual transaction limits

- Wire call-back features- Positive pay systems to reduce check fraud- Make regular backups of key data and systems and store themin a secure, off-site location.

- Monitor activity and balance online accounts daily.- Perform periodic vulnerability or penetration assessments tovalidate that controls believed to be in place are functioningas intended.

Relationships, communication, and training - Educate users to spot fake emails and to be wary of websitelinks and file attachments.

- Read and thoroughly understand your agreements with yourbank related to online activity.

- Identify the primary contact at your bank who will be yourfirst call for help in the event of a breach.

- Develop an incident response plan so users know who tocontact immediately if they suspect malicious activity on theircomputer.

- Establish a relationship with local law enforcement agenciesthat are familiar with online crimes.

How we can helpReliance on technology is a reality for even the smallestorganization. But you can conduct business securely in this threatening environment with the right strategy andimplementation. View our webinar on payment fraud trends at CLAconnect.com under the caption “issues” and“preventing cybercrime” to help prepare your entity againstonline attacks.

MARK EICH is Principal, Information Security, for CliftonLarsonAllen. Please contact Mark at 612.397.3128 or via email at [email protected] with any questions. To learn more about CliftonLarsonAllen, visitwww.CLAconnect.com.

HACKERS STEAL INFORMATION THEN SELL IT TO CRIMINALS WHO USE IT TO COMMIT VARIOUS FORMS OF IDENTITY THEFT.

18 PrecisionNews arizonatooling.org march/april 2014

Protecting Your Organization From OnlineH4CK3R5continued from page 17

Protecting Your Organization From OnlineH4CK3R5

PrecisionNews

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Protecting Your Organization From OnlineH4CK3R5continued from page 17

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PrecisionNews// NTMA INITIATIVES

Though most of our members are small- to medium-sizedcompanies, the power of the association can help you dobusiness like a large corporation.

REVENUE GROWTH• We organize regular business-to-business purchasing fairs,designed to operate like speed dating for suppliers. We invite100 or more buyers from large companies and then give youopportunities to briefly pitch your products and services. As aresult attendees leave with good contacts and solid leads,leading to increased business. Companies have been awardedmillions of dollars in contracts as a direct result of these events.

• We offer a program called Members First, designed to helpmembers turn to each other to meet needs. Perhaps your nextcustomer is an NTMA peer? Or perhaps an NTMA memberwould make an excellent vendor for you? Members First helpsmake the connections.

• By interacting with fellow members in your local chapter, youmay discover new business opportunities, or ways to worktogether with peers to increase business or market yourselvescooperatively.

COST CONTROL• We offer discount programs with several large suppliers(including Grainger, UPS and Yellow Freight), allowing you toleverage NTMA’s combined buying power for your own benefit.

• Our business insurance program keeps more money in yourpocket by offering a necessary product in a low-overhead, not-for-profit manner.

Our decision resources allow you to be smarter about howyou use your resources, resulting in greater efficiencies andlower costs. Learn more at: www.ntma.org/initiatives

How Can NTMA Help You Grow Your Business?Profitability grows when revenue increases and costs are controlled. NTMA can help you with both.

Get Turned-Onto the ATMA!Contact Chris Mignella at:[email protected]

22 PrecisionNews arizonatooling.org march/april 2014

ATMAP R E C I S I O N

2015 ATMA BOARD OF DIRECTORS

PresidentDAVID LAIR

Dynamic Machine & Fabricating

Vice PresidentJOSEPH KOENIGExactitude, LLC

Executive DirectorCHRIS MIGNELLA

TreasurerZACH WILSTERMAN Profile Tool & Engineering

SecretaryDUSTIN WHALEYResonant Solutions

BOARD MEMBERS

Kevin BeachR&D Specialty Manco

Norela HarringtonBent River

Jeremy ShalkHiTech Machining & Engineering

Gary WatkinsMarZee

Bruce TreicherZircon Precision

Associate Member LiaisonDavid Senkfor

TopGun Consulting

ATMA AmbassadorMaxine Jones

[email protected]

ATMA AmbassadorDante FierrosNichols Precision

Arizona Tooling & Machining AssociationA Chapter of the National Tooling & Machining Association

P.O. Box 3518 Scottsdale, AZ 85271 Office: 602.388.5752

[email protected]

THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

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WEBSITES THATWORKFOR YOUArizona Chapter Websitearizonatooling.org

Arizona Commerce Authority -Job Training Grant Applicationazcommerce.com/workforce

Arizona Department of Educationazed.gov

Arizona Manufacturers Councilazchamber.com/amc

Arizona Manufacturing Apprentice Programwww.azpmap.org

AMP - Arizona Manufacturing Partnerswww.AMParizona.com

Arizona State UniversityMechanical & Manufacturing Engineering Technologypoly.asu.edu/technology/mmet/

Arizona Technology CouncilAZtechcouncil.org

City of Phoenix – Community & Economic Development Programphoenix.gov/ECONDEV/index.html

EVIT (East Valley Institute of Technology)evit.com

GateWay Community Collegegatewaycc.edu

Greater Phoenix Chamber of Commercephoenixchamber.com

Manufacturing Extension Partnershipazcommerce/MEP

Maricopa Community Collegesmaricopa.edu

Maricopa Workforce Connectionmaricopaworkforceconnection.com

Mesa Community Collegemc.maricopa.edu

National Institute for Metalworking Standardsnims-skills.org

National Robotics LeagueNRL.org

NTMA - National Tooling & Machining Associationntma.org

National Association of ManufacturersNAM.org

One Voice Advocacymetalworkingadvocate.org

march/april 2015 arizonatooling.org PrecisionNews 23

David Wright Accuwright Industries 480-892-9595

Rob Markson Action Machine 692-233-0883

Michael Holmes AeroDesign & Manufacturing 602-437-8080

Chuck Eriksen Allied Tool & Die Company, LLC 602-276-2439

Charles A. Van Horssen Axian Technology, Inc. 623-580-0800

Rex Dugdale AZ Industries for the Blind 602-269-5131

Paul Bowman B3 Precision, LLC 480-250-3366

Bill Boat B&B Fabrication & Machine 602-684-0393

Kevin Burbas B&B Tool, Inc. 520-397-0436

Jeff Buntin Barnes Aerospace - Apex Mfg. Div. 602-305-8080

Norela Harrington Bent River Machine, Inc. 928-634-7568

Mark Clawson C & C Precision Machining 480-632-8545

Joe Cassavant, Jr. Cassavant Machining 602-437-4005

David Bardin Chips, Inc. 602-233-1335

Mark Musgrove CJ Manufacturing 480-517-0233

Ron Gilmore Continental Precision, Inc. 602-278-4725

Allen Kiesel Creative Precision West 623-587-9400

David Lair Dynamic Machine & Fabricating 602-437-0339

Mike Hallford Empire Precision Machining 602-622-4580

Joseph J. Koenig Exactitude, LLC 602-316-6957

Mark Weathers Excaliber Precision Machining 623-878-6800

Jeff Hull Foresight Technologies 480-967-0080

Tim Malin Helm Precision, Ltd. 602-275-2122

Jeremy Schalk Hi-Tech Machning & Engineering 520-889-8325

Don Theriault Industrial Tool Die & Engineering 520-745-8771

Jim Carpenter Kimberly Gear & Spline, Inc. 602-437-3085

Don Kammerzell K-zell Metals, Iinc. 602-232-5882

Ernest Apodaca Layke, Inc. 602-272-2654

Michael C. Majercak, Jr. Majer Precision 480-777-8222

Edward Wenz MarZee, Inc. 602-269-5801

Arle Rawlings Mastercraft Mold, Inc. 602-484-4520

Jeff Meade Metalcraft 480-967-4889

Joe Tripi Micropulse West 602-438-9770

Lyle Rusanowski MMI Precision Technology 480-897-7100

Mark Lashinske Modern Industries, Inc. 602-267-7248

John Anglin Nelson Engineering 602-273-7114

Tom Osborn Osborn Products, Inc. 623-587-0335

Ray Chu Phoenix Analysis & Design Tech. 480-813-4884

Michael & Laura Cree Phoenix Custom Lasering 602-996-1402

Steve Macias Pivot Manufacturing 602-306-2923

James Buchanan Powill Manufacturing & Eng, Inc. 623-780-4100

Roy Stenger Precision Aerospace 602-352-8658

Tony Costabile Precision Die & Stamping, Inc. 480-967-2038

Michael Dailey Prescott Aerospace, Inc. 928-772-7605

Tyler Crouse Pro Precision 602-353-0022

Zach Wilsterman Profile Tool & Engineering 480-894-1008

Michael Hughes Pure Logic Industries, Inc. 480-892-9395

John Bloom R & D Specialty/Manco 602-278-7700

Dustin Whaley Resonant Solutions 602-288-6740

REGULAR MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

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James Costello Sanair Products 480-218-0918

Erik Niemira Sierra Precision Products, LLC 602-481-9582

Mark Willmering Sonic Aerospace, Inc. 480-777-1789

Jeff Gaffney Southwest Swiss Precision 602-438-4670

Steven Yeary Southwest Turbine, Inc. 602-278-7442

Mike Gudin Southwest Water Jet 480-306-7748

Dennis Miller Summit Precision, Inc. 602-268-3550

Scott Higginbotham Sun Grinding LLC 602-238-9595

Craig Berland Systems 3, Inc. 480-894-2581

Jacque Cowin Tram-Tek, Inc. 602-305-8100

Rick Lorenzen Tri Star Design & Mfg. 480-345-1699

Jeremy Lutringer Unique Machine & Tool Co. 602-470-1911

Bill Ankrom Vitron Manufacturing, Inc. 602-548-9661

Robert L.Wagner Wagner Engineering, Inc. 480-926-1761

Todd Kuhn West Pharmaceutical Services 480-281-4500

Bruce Treichler Zircon Precision 480-967-8688

MANUFACTURING ADVOCATESArizona Precision Industrial John Raycraft 480-785-7474

MicroTronics Mark Travis 602-437-8995

Performance Grind & Manufacturing Joe Hajda 480-967-5354

Arcas Machine Denny Arcas 480-632-9414

Critical Cut, LLC Frank Froncillo 480-785-1316

A&M Manufacturing Steve Barton 602-278-6380

24 PrecisionNews arizonatooling.org march/april 2014

ASSOCIATE MEMBERS

PrecisionNews//ARIZONA TOOLING & MACHINING ASSOCIATION

MEMBERLISTINGS

Richard Short Adams Machinery 480.968.3711

Greg Whelan Arizona CNC Equipment 480.615.6353

Linda Daly A 2 Z Metalworker 602.412.7696

Howie Basuk Barry Metals 602.484.7186

Joe Ciancio Bralco 602.252.1918

Marc Bissell CadCam/Geometric 480.222.2242

James Burriss ChemResearch Co., Inc. 602.288.0394

Kerry Vance Consolidated Resources 623.931.5009

Lou Gallo DDi - Solidworks 602.241.0900

Steve Warner EMJ Metals 602.272.0461

Mickey Gartman Gartman Technical Services, Inc. 602.788.8121

Jackie Bergman HUB International 602.749.4190

David Cohen Industrial Metal Supply 602.454.1500

Tim Kloenne Klontech Industrial Sales 480.948.1871

Jeff Trimble Magnum Precision Machines 602.431.8300

Jim Algers Makino, Inc. 602.228.0347

Thomas Moore Moore Tool & Equipment 602.455.8904

Glen Zachman North-South Machinery 602.466.2556

Pete Hushek Phoenix Heat Treating 602.258.7751

Bob Nichols Phoenix Metal Trading 602.257.4660

Arlene Helt Ryerson-Phoenix 602.455.3386

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Jane Rousculp Samuel Aerospace Metals 602.721.0176

Chris Tanner Solid Products 480.206.0330

Russ Kurzawski Star Metal Fluids LLC 602.256.2092

Megan Lenhart SVS Group 623.687.8386

David Senkfor Top Gun Consulting 602.510.5998

Donna Kordas Tornquist Machinery Co. 602.470.0334

Greg Burke TW Metals 602.864.0014

Doug Pratt Ulbrich Stainless Steel & Spec. 203.234.3464

ARIZONA SPONSOR MEMBERSLela Yu American Fidelity Assurance 800.450.3506

Tim Nichols Arizona Bank & Trust 480.731.7354

Austin Miller Aerotek 607.725.9418

Ty Miller Clifton Larson Allen 480.615.2320

Kevin Draper Comerica Bank 602.417.1188

Michael Cox Federated Insurance 817.545.1500

Steve Piotter MSC Industrial Tool 480.755.0415

Mike Hasenkamp National Bank of Arizona 623.872.2540

Noel Trias PensionMark/401K Matrix 760.432.9614

David Pettycrew Republic Indemnity 602.242.4602

MANYTHANKSTO OUR 2015 ATMA VALUED SPONSORS:

MANY THANKSTO OUR 2011 ATMA VALUED SPONSORS!

MARK YOUR CALENDAR WITH THESE

UPCOMING ATMA EVENTS!MAY5/11 Safety Meeting (General Safety Standards) 11:30

at Phoenix Heat Treat, 2450 W. Mohave, Phoenix

5/12 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

5/17 Board of Directors Meeting 11:30-1:00 atMicro-Tronics, 2905 S. Potter, Tempe, 85282

5/25 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

JUNE6/08 Safety Meeting (General Safety Standards) 11:30

at Leavitt Group, 919 N. 1st St., Phoenix

6/09 Combined Membership, Marketing & Program Meeting 11:30-1:00 at Foresight Technologies, 1301 W. Geneva, Tempe

6/21 Board of Directors Meeting 11:30-1:00 atMicro-Tronics, 2905 S. Potter, Tempe, 85282

6/29 General Dinner Meeting 5:00-8:00pm at Phoenix Airport Hilton, 2435 S. 47th Street, Phoenix

arizonatooling.org / 23

ATMA_0202_FINAL_Layout 1 6/18/11 7:04 AM Page 23

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AprilPrecision News Articles/Ads Due > 4/6Golf > 4/17 @ 1:30 pm shotgun at The LegacyBoard of Directors Mtng > 4/21 @ 4:00pm (MicroTronics)

For more information contact Chris Mignella at:[email protected]

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arizonatooling.org / 19

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ATMA_0202_FINAL_Layout 1 6/18/11 7:02 AM Page 19

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28 PrecisionNews arizonatooling.org march/april 2014

Shop FloorNEWS FROM THE FRONT LINES

Fire is a chemical reaction that requires three elements tobe present for the reaction to take place and continue. Thethree elements are:

HEAT, FUEL AND OXYGEN

These three elements typically are referred to as the “firetriangle.” Fire is the result of the reaction between the fueland oxygen in the air. Scientists developed the concept ofa fire triangle to aid in understanding of the cause of firesand how they can be prevented and extinguished. Heat,fuel, and oxygen must combine in a precise way for a fire

to start and continue to burn. If one element of thefire triangle is not present or removed, fire will not start or, if already burning, will extinguish.

Ignition sources can include any material,equipment, or operation that emits a spark or flame—including obvious items, such astorches, as well as less obvious items, such

as static electricity and grinding operations.Equipment or components that radiate heat, such

as kettles, catalytic converters and mufflers, also can beignition sources.

Fuel sources include combustible materials, such as wood, paper, trash and clothing; flammable liquids, such as gasoline or solvents; and flammable gases, such aspropane or natural gas.

Oxygen in the fire triangle comes from the air in theatmosphere. Air contains approximately 79 percentnitrogen and 21 percent oxygen.

OSHA describes a hazardous atmosphere as one which is oxygen-deficient because it has less than 19.5 percentoxygen, or oxygen enriched because it has greater than

23.5 percent oxygen. Either instance is regarded by OSHA as an atmosphere immediately dangerous to life and health (IDLH) for reasons unrelated to the presence of fire.Depending on the type of fuel involved, fires can occur withmuch lower volume of oxygen present than needed tosupport human respiration.

Every roofing project has all three of the fire triangle elementspresent in abundance. The key to preventing fires is to keepheat and ignition sources away from materials, equipment,and structures that could act as fuel to complete the firetriangle.

Fire ClassificationsFires are classified as A, B, C, or D based on the type ofsubstance that is the fuel for the fire, as follows:

Class A - fires involving ordinary combustibles, such aspaper, trash, some plastics, wood, and cloth. A rule of thumbis if it leaves an ash behind, it is a Class A fire.

Class B - fires involving flammable gases or liquids, such as propane, oil, and gasoline.

Class C - fires involving energized electrical components.

Class C - fires involving metal. A rule of thumb is if the nameof the metal ends with the letters “um,” it is a Class D fire.Examples of this are aluminum, magnesium, beryllium, andsodium. Class D fires rarely occur in the roofing industry.

Resources:

Fire Protection and Prevention. n.d. https://www.osha.gov/dte/grant_materials/fy09/sh-18796-09/fireprotection.pdf.

Learn more at: www.ica.state.az.us or www.atma.org

fyi:

Heat, fuel, and oxygen must combine in a precise way for a fire to start and continue

to burn.

by JAMIE BEAUVAIS, Arizona Safety & Emergency Consultants LLC

Fire Protection & Prevention

march/april 2015 arizonatooling.org PrecisionNews 27

PrecisionNews// NTMA MEMBERSHIP

We understand your challenges in today’s economy. We recognize that many of youface a talent gap, with necessary skills in short supply. And we know that there’s agap between the reality of our industry and the public’s perception of it.

But even more importantly, NTMA has the resources to do something about theseissues. Our educational programs stimulate the talent pipeline. Our resources androundtables help members share best practices and solve common businessproblems. And by speaking with one voice, we cut through media-generatedperception to communicate reality to policy makers and the public.

American ingenuity isn’t dead. It isn’t in decline. It’s alive and well in the customprecision manufacturing industry.

NTMA stands for the future. We also stand with your peers. Will you stand with us–and your industry–today? JOIN US TODAY!

BENEFITS OF JOININGNetworkingYou don’t have to go it alone. Membership immediately connects you with peers atthe local, regional and national levels—opening up conversations that can lead to newopportunities while helping you discover better ways to operate.

TrainingWe offer an arsenal of training programs designed to pick up where Americanvocational and technical education leaves off, preparing your workers to meet thedemands of today’s precision manufacturing environment. These range from informalprograms to college-level courses.

Discount ProgramsYou don’t have to be a big company to get big-company treatment from suppliersand vendors. Through association membership, you qualify for volume discounts oneverything from office supplies to payroll service to shop components—no matter howsmall your volume may be.

Online ResourcesFrom job postings to a members-only marketplace, from industry news to archivedwebinars, NTMA members can take advantage of a number of benefits without everleaving their keyboards.

Market ResearchGood business begins with good planning. But it’s hard to plan without reliablemarket intelligence. That’s where our reports come in. We survey the marketplace aswell as our members to put useful data in your hands.

InitiativesNTMA is constantly moving forward, seeking new ways to help you grow profitably.Our programs include everything from the National Robotics League to a constantlyevolving set of benchmarks and best practices.

Why join NTMA?To say it simply, the NTMA gets it.

VISIT:NTMA.ORG800-248-6862

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Let your ad be a call to action!Contact Precision News today for more details at:[email protected]

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THE RIGHT TOOLS. THE RIGHT TEAM.THE RIGHT TIME.

arizonatooling.org

THE STATE OF ARIZONA has a broad and capable industrial base committed to providing low-cost manufacturing to OEMs and Tier Ones around the world. Our agile and entrepreneurial small shops make Arizona’s high-tech manufacturing supply baseone of the world’s most capable and cost-effective for machined and fabricated components. Our industry supplies the necessaryprecision tooling and machining for such vital industries as defense, automotive, aerospace, medical, appliance, business machines,electronics, agricultural implements, ordinance, transportation, environmental, construction equipment, nuclear and many more.

Contact the Arizona Tooling and Machining Association and discover why doing business in Arizona will give your company the Competive Edge.

CHRIS MIGNELLA, ATMA EXECUTIVE DIRECTOR PO Box 3518, Scottsdale, Arizona 85271 USA / phone: 602.388.5752

[email protected]

ATMAP R E C I S I O N

Arizona Tooling & Machining Association

THE ARIZONA TOOLING AND MACHINING ASSOCIATION

arizonatooling.org

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FOCUSED ON THE FUTURE:

MANUFACTURINGIN ARIZONAAND PROVIDING THE CAPABILITIES YOU NEED TODAY!