February 12, 2015

Goal of the Exchange Process 1. Help each Member professional to expand their business networks in order for you to improve the efficiency and effectiveness of how you tackle you job functions. 2. Provide Members with a dynamic and reliable resource to help you solve problems and find new implementable ideas

Rules of Engagement 1. Do not use your HOLD button on your telephone – hearing elevator music in the next 60 minutes is not good! 2. No body language signs – please be aggressive and speak your mind and thoughts. 3. Please identify yourself with name and company before speaking. 4. Take Notes about who is saying what… 5. Warning: My goal is to facilitate aggressively so we can cover as many topics as possible. 6. Last but not least, I need your feedback on how to make this process better for you and the participants.

Question: Return credit on value-added assemblies? (James Krause) How do you push back no customer’s demand for incidental costs not related to the part you provide?  Regan: added into terms and conditions of sale that we do not cover any costs other the cost of the sale.  Mike: only cover up to the cost of the sales price of our parts. Although we do see this as standard in most contracts.  Alan: Just repair and replace. Limited to the contract of what you are being paid. Indemnification provision is good. Now, what is the situation? The law does not address this scenario. “nobody is responsible for incidental and consequential damages.” Battle of the forms: Will never go beyond the limit to our maximum insurance coverage.  John: safety restraint products with liability issues. 3 different countries all same customer that all get put into assemblies that can’t be reworked. On the hook for full cost of assemblies. Only leverage is that each facility is treating it differently.

Question: How are companies dealing with Health care? How were your 2014 increases? (Regan McHale) Enjoyed a no-deductible insurance program until using a HRA and 3000/6000 E/FM. 16% this year (2014).  Rob: Self-funded which still seems viable for us. 350 employees. Averaging 1-2% per year.  Mike: Reduction: 10%. PPO.HMO.HSA  John: Follow the leased employee philosophy: 8-9% increase in cost. Have an HSA with BC PPO.  Jim: United HC minimal  Jeff: health care costs. Early December renewals.  Jim K: 15-18% last few years. Prior to that 20-26% increases  Dave J: 12-14%  Charlie B: Kaiser: 6.5% increase. Largest issues = service!  Glenn: HMO / FSA / (Regional Insurance Firm) 3% / 6% previous two years. Employees are picking 1/3 cost.

Question: How much do you spend on marketing as a percent of sales? (Charlie Braun)  Rob: ROI advertising: Lower percentage than over the last several years.  Troy:  Regan:.2%  Mike:.86%  James: 1.1%+ (Thomas Net / Trade Show Booth / Shows)  Jim:.1-.2%  Glenn:  Dave: 1% (Trade Shows…Internet Ads / Print)  Charlie:.5% - 1%  Jeff: 50% of companies have less <.5%  25%.5-1%  Upper 25% employee a marketing person and consultant  Alan:

Question: What is the best way to calculate employee turnover cost? (James Messer) 17% to 1.5% TO  Jeff: Send sheet Total Headcount Number of Temps W3 (number of W2’s issued) Total W2’s – HC at year end / HC – Temps 

Question: Ways to improve Direct Labor Job focus? 5 or 6 ownership strategies? (Stephen Vacha )

Question: Has anyone evaluated the ROI of solar power? Can anyone attest to the performance of poly tower cells? (Jim McVay )

Issue: We are working with our local schools to change the perception of manufacturing jobs…anyone else? (Ryan Gensler)

Question: As owners, what organizations support the knowledge base we need to be successful companies? (Glenn Anderson)

Question: Other recruiting websites other than Monster, CareerLink, LinkedIN, etc. AND how do you recruit specialized talent in Manufacturing? (Kelly Dill)

Question: How do you recruit without expending a lot of time and financial resources? (John Rousseau)

Question: We have a hard time recruiting talent…any ideas to incentivize people to move far from the city? (Robert Marut)

Additional Questions?

What is the next TOPIC you would like to focus on for the next session? Save the Date for The Benchmarking Conference Oct , 2015 THANK YOU!