While most of us have a very good handle on the inner workings of our own firm and what it takes to make it successful, it is also important to know where we fit into the overall spring market. Membership in the Spring Manufacturers Institute (SMI) provides us with that perspective.
By attending the meetings, we can learn a lot from networking with “friendly competitors” which helps us understand how our niche contributes to the industry as a whole. As a result, the cost of membership becomes minimal in comparison to the macroeconomic perspective it gives us of the industry and the microeconomic assistance it provides us as operational executives.
We can also gain perspective on what is happening within the industry and how market changes either have, or will affect us. For example, one of the current hot industry topics is China. If your firm is a long run, compression and extension spring house, or a specialty house, the global market will present an altogether different set of ramifications and effects for you. Participation in SMI meetings provides important perspective that we may otherwise overlook.
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In addition to these less objective benefits, the SMI Annual Market Survey performed by Mackay Research Group, provides a concrete analysis of how our firm compares with others in the industry. When we look at our own financials, we are all well aware of what each line represents and how it affects our own business. But when we compare those financials with the rest of the industry, we can measure ourselves against our fellow spring companies.
Why is our raw material usage 12 percent or 18 percent or 30 percent of sales while the industry norm is 27 percent? If we have a good reason for our number then we can move on to the next line. But if not, we may want to analyze it further. Why is there a group within the industry known as high performers with one bottom line and yet we are not in that group? What do we have to do to become a member of the high performers? What aspects of their financials are different than ours?
And on a more personal note, how does our compensation package compare with other executives within the industry?
Moving on to the more microeconomic assistance that SMI provides, the litany of items is too numerous to detail. But if we cite a few of the more important items, we still come up with a fairly long list.
Technical Assistance
The “Spring Design” software is probably one of the most widely used items. Because this software was created by some of the greatest spring minds in the country, and has been adopted by SMI, it provides our spring design a level of integrity that transcends each individual firm. Plus, if we have a customer that requires many spring designs, we can offer them this software either directly or indirectly through SMI. The “Handbook of Spring Design” provides us with a much less expensive spring design source. This is useful as a marketing tool or as a bible on spring engineering concepts. The “Encyclopedia of Spring Design” also provides a more extensive resource for those who want more depth. And if despite all this preparation and something should go wrong, the failure analysis provided by Luke Zubek, SMI’s technical director, has proven to be so valuable that it is difficult for him to keep up.
Training
SMI provides many classes and webinars on how to use the “Spring Design” software, how to design springs and how to refine those designs once a bump in the road has been reported. Tabletop displays and many symposiums have also been added to the meetings, to make sure springmakers stay current with new industry developments.
Administrative Assistance
Administrative assistance tools are among the most overlooked benefits SMI provides. Recently I was concerned that my company’s job descriptions were not in compliance with Massachusetts labor laws, so I engaged a labor lawyer from a local trade organization. After much time and effort (and expense), I found that the job descriptions he provided were remarkably similar to those provided by SMI.
And for anyone who has not used Jim Wood to assist in preventative safety measures, I ask that you talk to someone who has. You will find that Jim enjoys a reputation as an extraordinary resource.
But these are by no means the only administrative assistance tools available. There are other safety programs, the disability act program, and a variety of others. Anyone interested in any of these should call SMI directly.
Website
For those of us who have been asked by customers to provide springs that we do not have the capability to produce economically, may I suggest that you browse the SMI website at www.smihq.org? Many times while at SMI meetings you’ve chatted with someone and realized they have a capability that you do not. And now you have a need.
The website is the perfect place to bring supply and demand together. You will find the staff most cooperative in helping you navigate the site.
Health Insurance
One of SMI’s newest programs is health insurance through Trustmark Insurance. This program is set up so that any surpluses generated by the program can be used to offset future price increases. At times such as this, who can afford to overlook an opportunity like this?
The Big Picture
While some of the SMI programs can be acquired by non-members, they are not only more expensive, but less effective when presented in a vacuum. The real benefit of SMI membership is the overall experience. The networking opportunities provided at the meetings are enhanced by the broader market you can serve if you use spring companies that have capabilities that you do not have.
The industry updates that are learned via the tabletop or symposiums offered at the meetings are backed up with specific technical assistance available through SMI. And the current trends that are not necessarily industry specific such as the many human resource requirements are also readily available through the SMI. For those of us whose biggest problem is allocation of time, SMI can provide a remarkable combination of both macro- and microeconomic assistance.
With the global market growing more volatile, the support and knowledge provided by SMI gives springmakers the tools and knowledge that together we need to adapt to ever changing challenges and opportunities. Click here to Learn More about SMI and Membership.
Ted White has served as president of Hardware Products since 1999. He joined the company in 1974 after graduating from Merrimack College in North Andover, Mass., with a B.A. in economics. He became an SMI member and got to know the association through his former boss George Underwood, who served as SMI president in 1975. He became SMI membership chairman and joined the board of directors of SMI in 2005. He may be reached by email at twhite@hardwareproducts.com
