Category Archives: Newsroom


The Section 179 Roller Coaster May Be Coming to an End

“The House is set to vote this week on Speaker of the House, Paul Ryan’s sweeping $1.6 Trillion dollar budget deal.  If the current bill (H.R. 2029 Protecting America from Tax Hikes Act of 2015) passes, the yearly battle to get increased expensing limits under the IRS section 179 will finally be over.  The bill will permanently raise the limit to $500,000.

If the bill passes, it will not only increase expensing limits, but there are a number of other provisions that will be beneficial to MDNA Members and small businesses.” —MDNA Executive Vice President Mark J. Robinson


The current language in the bill reads:


(a) Made permanent.—

(1) DOLLAR LIMITATION.—Section 179(b)(1) is amended by striking “shall not exceed—” and all that follows and inserting “shall not exceed $500,000.”.

(2) REDUCTION IN LIMITATION.—Section 179(b)(2) is amended by striking “exceeds—” and all that follows and inserting “exceeds $2,000,000.”.

Read the full bill here


MDNA Tri-Chapter Meets in Atlantic City—Meeting Re-CAP

On December 3rd MDNA’s Philadelphia, New York/New Jersey and New England Chapters hosted their annual Tri-Chapter meeting.  This year’s meeting took place at the Borgata in Atlantic City, New Jersey.

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Here’s what some of the MDNA members who attended had to say about this year’s programming….

“I’ve been attending meetings for the past two years now on behalf of zac Smith absolute machineryAbsolute Machinery, and each meeting seems to one-up the last. As a member of the New England chapter, it is always nice to venture out and meet members from other chapters, and Thursday night in Atlantic City at the Borgata Casino and Hotel was another great example. As a younger member, it is always nice to meet members from different chapters and from a networking standpoint, there is nothing better than the MDNA.

At the Tri-Chapter (NY, Philly & NE) meeting, there was a great “Price is Right” themed icebreaker that peaked everyone’s interest, and kept the mood light and exciting. Terry Lashin also spoke for a while about a very interesting and relevant topic; international business. He spoke on a few points from freight forwarding, to cargo insurance, international business ethics and how to stay away from bad deals. Overall he hit some very key points that I believe helped raise awareness of not only the benefits, but also what to be on the lookout for when conducting business overseas for everyone in attendance.

Regardless of what the topic is at each MDNA meeting, you always walk out of each meeting learning something new that pertains to your industry, and with new contacts that you now have the opportunity to conduct business with, and in the end, make money. Whether it’s sharing leads that you come across in your industry that you might not be as familiar with, or partnering up on a deal, the MDNA is a great network of great people.

I was also able to meet Richard Bass and Meghan McLellan of the AMEA, and look forward to earning my certification with the AMEA in the near future. With that said, you could also say the MDNA is a great tool for furthering your education and credibility in your industry.” -Zac Smith, Absolute Machinery Corporation

“Great meeting, learned a lot from the group sharing experiences on the pitfalls of theSTEVE Brenner Prime Machinery Import/Export side of the machinery business” —Steve Brenner, Prime Machinery, Inc

“I thought the tri chapter meeting at Atlantic city / Borgata hotel was very successful, out of all the MDNA meetings I have attended, this was one of the most influential and interactive meetings so far. There was a lot of Matt Schulman Grand Marshall Machineryengagement between other dealers, auctioneers, repair services etc.. It was a great opportunity to network with eachother and I enjoyed the “Ice Breaker” it was a great chance to see other dealers equipment and put everyone’s mind to the test.”Matthew Schulman, GRAND MARSHALL MACHINERY

“Last night’s tri-chapter meeting at The Borgata in Atlantic City had everything that one could possibly want in an MDNA meeting:  a fun and informative machinery valuation icebreaker for AMEA credit, instruction on how to close more deals by getting quick and easy financing for your WillCroppedcustomers via Direct Capital, valuable education and advice regarding importing, exporting, and establishing overseas business relationships, and maybe most importantly an opportunity to meet, mingle, and network with fellow MDNA members in a fun and unique environment. Meetings like this are exactly why North American Machinery Sales has been a member of the MDNA for many decades now.” — Will Putney, North American Machinery Sales

Special Thanks to Event Sponsors

Clark Machinery Sales, LLC

clarkmachinery_hi res logoDirect Capital Corp.  direct captital logo

Capital Recovery Group LLC

CRG logo low resThe Branford Group, LLC 

branford group logo


Recap: Fall Southern Regional Chapter Tour

On November 12th, 2015 MDNA’s Southern Regional Chapter met for an action packed three day outing spanning parts of North & South Carolina featuring a golf outing, multiple machinery warehouse tours and even a football game and tailgate!golf nc

On day one the group kicked the event off with a fun golf outing courtesy of MDNA Member Firm, Asset Sales, Inc. at Rolling Hills Country Club located in Monroe, NC.

Day two’s agenda began with a warehouse tour at MDNA Member Firm R. P. Machine Enterprises, Inc. located in Statesville, NCR. P. Machine Enterprises, Inc. carries a large gear machine inventory as well as providing reconditioning services for all types of machinery.

(Pictured below) Richard Piselli, President of R.P. Machine Enterprises, Inc. leads guests around their facility demonstrating what goes on behind the scenes.

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After lunch the group headed over to MDNA Member Firm EDM Systems, LLC, located in Statesville, NC. EDM Systems specializes in servicing the EDM market in North America. The tour was led through EDM’s over 17, 000 square foot warehouse getting an insiders’ look at their expansive inventory of used EDM machines.

(Pictured below) Tim Harwood Developer of EDM Systems, leads the group tour.

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The final tour of the day was at MDNA Member Firm Champion Machinery Inc.’s  Fort Mill, location. Champion specializes in buying and selling CNC machine tools.

“Champion showed us a lot of machining centers & lathes with good insight into what is selling today” Jim Bowman, Locator Services

(Pictured below) Dale Danahey, President & Owner of Champion Machinery Inc. shows the group around the warehouse in Fort Mill, SC.

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After the final tours wrapped, the group met for dinner (sponsored by Direct Capital) and the MDNA Southern Regional Chapter meeting at Gusto’s Restaurant in Charlotte, NC.

Day three of this event was all about the FOOTBALL! Champion Machinery sponsored a pre-tailgate party before guests went to see the Florida Gators vs South Carolina Gamecocks. It was a tight game with the Gators 24 to 14 against the Gamecocks.

Check out the video (below) of the guys enjoying the opening ceremony before kick-off at the game! For even more photos from the event check out the online album on MDNA’s Facebook page!

A special thank you again to all who attended this event, to each of our tour hosts, R. P. Machine Enterprises, Inc. ,Champion MachineryEDM Systems, LLC and to each of the events sponsors, R. P. Machine Enterprises, Inc. Champion Machinery and Asset Sales, Inc. 

NAM Urges Congress To Make Small-Business Tax Breaks Permanent

NAM Urges Congress To Make Small-Business Tax Breaks Permanent

The Business Journals’ (12/1, Hoover) Washington bureau predicts lawmakers this month will raise, as they did in December 2014, the limit under current law for small businesses to take advantage of a tax break known as Section 179 expensing. However, “business groups want Congress to end the guessing game” on whether that and other tax provisions “will be available in a given year by making these tax breaks permanent.” The Business Journals quotes NAM Vice President of Tax and Domestic Economic Policy Dorothy Coleman as urging lawmakers in a letter to make the R&D credit permanent because it “spurs the investment … that leads to new product development and increased productivity.” Her letter “also touted the benefits of now-expired tax breaks such as bonus depreciation … and a ‘look-through’ rule” that lets American manufacturers “‘redeploy foreign earnings from active overseas business operations without triggering immediate U.S. tax,’” relieving those companies of a “competitive disadvantage” globally. Coleman added that by approving at least “a multiyear extension of these provisions,” Congress would provide “a critical bridge of predictability until comprehensive tax reform is enacted.”

Politico (11/30, Becker), in its “Morning Tax” roundup, asserts that business groups are seeking “fast” action by Congress on the provisions, “and they want their priorities permanent.” Politico quotes the NAM as writing, “Making permanent the pro-growth tax provisions important to manufacturers would eliminate the cycle of uncertainty associated with temporary tax extenders, bringing confidence back into investment decisions that fuel economic growth.”

In the association’s Shopfloor (12/1) blog, Director of Tax Policy Christina Crooks explains that due to congressional inaction on the issue so far, “the NAM is taking the fight to social media and is seeking [the public’s] help to push for a permanent or multi-year extension of the temporary tax provisions today, Tax Relief Tuesday.” She asks readers to contact their elected representatives in Washington and urge them to extend the expired provisions, either permanently or on “a multi-year basis.” Crooks also invites supporters to “join the conversation on social media by using #TaxReliefTuesday to urge Congress to act on tax extenders to promote #JobsandGrowth.”

2 Axis CNC retrofit Bridgeport Mill

T. J. SNOW Donates 2-Axis CNC Retrofit Bridgeport Mill to Benefit Austin D. Lucas Scholarship Fund

MDNA Member Firm, T. J. SNOW will donate 100% of the proceeds generated from the auction of a 2 – Axis CNC Retrofit Bridgeport Mill (this is a surplus mill from their own machine shop) to the  Austin D. Lucas Scholarship Fund. Tom Snow understands the benefits of giving back through the ADLSF and challenges all MDNA Members to be generous and creative in giving to this worthy cause.

The MDNA Austin D. Lucas Scholarship Fund awards grants for college tuition to children whose parents are employed by MDNA member fi­rms. The Fund is a non-profit tax-exempt corporation recognized as a charity by the U.S. Internal Revenue Service. Contributions to the Fund are fully tax deductible to the full amount allowed by law. Learn more here

T.J. Snow Machine Specs:

  • 2 – Axis CNC Retrofit Bridgeport Mill
  • Anilam 1100 M CNC control
  • Series 1 Mod J head, 9” x 48” table.
  • Head serial #J265957
  • Machine serial #244242
  • Drive serial # 2J-17515
  • Frame: 145TY-4
  • 3 Phase
  • 1.5 HP

The Auction:

The T. J. Snow Charity Auction Item is one of the lots in the current MDNA/Liquidity Services Inc. online auction.  The Auction is live now and closes Tuesday December 15th.

Don’t miss this great buying opportunity. View Sale Here  

The online auction is currently LIVE and closes:

Tuesday, December 15th. Don’t miss this great buying opportunity. View Sale Here  

mr snow donates machine for liquidity auction to benefit austin d lucas 2 Axis CNC retrofit Bridgeport Mill

The Industrial Manufacturing Equipment Market is a regularly scheduled online auction of Industrial Manufacturing Equipment from leading manufacturing companies. This month’s auction offers over 200 lots featuring:

* Klingelnberg Oerlikon S35 10-Axis CNC Gear Cutting Machine
* Dorries Scharmann Ecocut CNC Boring Mill
* Kuraki KBT-13PDZ 5.12″ Horizontal Boring Mill
* 2007 Makino V77 CNC Vertical Machining Center
* 2000 Bostomatic BD-12G Graphite CNC Vertical Machining Center
* Butler Elgamill CNC Milling Machine
* Mazak Quick Turn Nexus 250-II MSY CNC Turning Center
* TOS Celakovice 26″ x 144″ Geared Head Engine Lathe
* Elb Perfekt CNC Precision Profile Grinders
* Schaffer 66″ Vertical Spindle Rotary Surface Grinder
* Studer S-35 CNC Universal Cylindrical Grinder
* Strippit/LVD 150-Ton x 10′ 8-Axis CNC Press Brake
* Eirich DEV-29 Intensive Sand Mixer
* Large Quantity of CNC Machine Tools, Including: Horizontal/Vertical Machining Centers, Mills, Lathes & Punches, from Manufacturers Including: Enshu, Hardinge, Kitamura, Landis, Mazak, Mori Seiki & Okuma
* Quantity of Lathes, Including: Cincinnati, Mori Seiki, Niles, Royal & South Bend
* Large Quantity of Grinders, Including: OD/ID, Surface, Cylindrical, Universal, Centerless & Multi-Wheel
* Large Quantity Machine Shop Equipment, Including: Presses, Straighteners, Jig Mills, Bridgeport Vertical Mills, Radial Drills, Shapers, Saws, Welders, Hones, Shot Blast Machines, Blast Cabinets, Bar Feeders
* Large Quantity of Machine Accessories, Including: Chucks, Rotary Tables
* Plant Support & Miscellaneous Equipment, Including: Brown & Sharpe CMM, Robot, Extruder, Ovens, Pressure & Parts Washers, Paint Booths, Transformers, Generator, Liebert Cooler, Air Compressors & Dryers
Many more assets to be added

View Sale Here  



Mexico flag

Rising salaries prompt China to send factory jobs to Mexico

By Chelsea Adams via MultiBrief 

Mexico is accustomed to foreign direct investment. In 2014, Mexico received $22.6 SONY DSCbillion in foreign direct investment, with the U.S. being the single biggest contributor. The trend for Mexico is continuing as companies from around the globe look to the country for cheap labor and low production costs.

In recent months, several major American manufacturers have said they will move production facilities from U.S. soil to Mexico.Nabisco, for example, announced it will move 600 jobs from Chicago to Mexico, and automotive manufacturing continues to move south of the border en masse. Production of American vehicles in Mexico has increased from 9 percent to 19 percent of the industry total from 2004 to 2014.

But it’s not just American companies who look to Mexico for cheap labor. Lately, higher salaries in China are prompting Chinese manufacturers to turn to Mexico for a cheaper source of labor.

“When you have the wages in China doubling every few years, it changes the whole calculus,” Christopher Wilson, an economics scholar at the Mexico Institute of the Woodrow Wilson International Center for Scholars in Washington, told The New York Times. “Mexico has become the most competitive place to manufacture goods for the North American market, for sure, and it’s also become the most cost-competitive place to manufacture some goods for all over the world.”

In October, the state-owned China Communications Construction Company (CCCC) announced it would build an industrial park in Mexico. Depending on how the project unfolds, the project could represent one of the largest Chinese investments in Mexico.

The plan calls for the development of a 1,235-acre site in the western Mexican state of Jalisco. The state government would pay for half the land, and the Chinese would foot the bill for the other half of the land as well as the entire development of the park.

The types of manufacturing companies the park would house will be determined following a six-month feasibility study. Chinese officials will make two trips to Mexico to determine what types of manufacturers could locate there.

To this point, Chinese foreign direct investment in Mexico has been less than 0.1 percent of Mexico’s total. Chinese investment of $380 million was less than that of Ireland, Puerto Rico and Taiwan.

However, rising wages in China have prompted the country to look for more attractive options elsewhere in the world where wages are lower for similar work. A decade ago, China would not have identified Mexico as a potential spot for relocation.

In 2000, Mexican manufacturing workers earned nearly 60 percent more than similar Chinese workers, according to the Boston Consulting Group. Today, Mexican workers earn 11 percent less than their Chinese counterparts.

“Mexico has continued to stay more productive than China per worker,” said Justin Rose with Boston Consulting Group in Chicago. “Sometime in 2011 or 2012, from a labor-cost perspective, it became cheaper to put manufacturing capacity in Mexico than in China.”

Other factors prompting China’s interest in Mexico include a weak peso compared to the Chinese yen, proximity to the U.S. and lower energy costs in Mexico.

About the Author

Chelsea Adams

Chelsea Adams is a former newspaper journalist who made the leap to healthcare public relations and marketing where she worked for a decade. Chelsea has a bachelor’s of social science and statistics in mass communications and a master’s of business administration. She is a full-time freelance writer based in the Midwest.

CNC Control for a Vertical Milling Machine

What is the best Vertical Milling Machine I can buy Today? Is a Bridgeport Milling Machine still the best?

What is the best Vertical Milling Machine I can Buy Today?  Is a Bridgeport Milling Machine still the best?

That is a very difficult question to answer.  With thousands of manufacturers building Vertical and Horizontal milling machines today it is tough to find a good one.  Many are from China, Taiwan or both.

The originator of the milling machine, Bridgeport Milling Machines, is a company often copied. They pretty much set the standard for the style and shape of the mills made today.  Many of the import milling machines are almost exact copies of the Bridgeport and even have some interchangeable parts!

Variable Speed Acra Vertical Milling Machine
Variable Speed Acra Vertical Milling Machine

So with so many vertical Mills to choose from how do you choose one? Should I buy a Used Vertical Mill or a New Vertical Milling Machine?

You first need to start with the questions:
-What kind of work are you going to be doing on this mill?
-How often are you going to use this mill?
-How often are you going to change the speeds depending on the material you are using?
-What Accessories do I need with my mill?
-How long do I intend on keeping this mill?
-What accessories do I want with my new or used Vertical Milling machine?

Let’s take these questions one at a time.
Q: What kind of work are you going to be doing on this mill? 

A: Are you doing light aluminum work or are you hogging titanium?  Depending on the materials you are going to use you will need a light duty Mill or a Heavy duty Milling machine.  Most of the light duty machines are going to be the Chinese, Taiwan or China/Taiwan meaning the head is from Taiwan and the body from China.

Brands such as: AcraBirmingham, Comet, wells, Sharp, Chevalier and Atrump are a few import machines for sale today.  They have a good reputation on the new and used milling machine market.  They are lower cost solutions to a light duty job that doesn’t need such a high quality machine to do more simple work.

Brands Such as:  BridgeportLagunTree, Gorton and some of the import machines such as AtrumpAcra, and Chevalier have a heavy duty option.

Q: How often are you going to use this mill?

A:  Some users need a vertical mill for a personal garage, Hobby Shop, Maintenance shop and other low use conditions.  Others need full production machinery to run 24/7 under heavy use conditions.  If you are not in need of a production machine than many of the import and less expensive mills are most likely a great choice for you.

X-Axis Power Feed for a Vertical Milling Machine
X-Axis Power Feed for a Vertical Milling Machine

Q: How often are you going to change the speeds depending on the material you are using?

A:  There are a few different head types available for today’s Vertical Milling Machine.

  1.  Belt or Pulley Change Head- This options requires the user to change the belt position on the pulleys to a different position allowing for a different set of speeds.  This is the most labor intensive way to change the speeds.  If you are not looking to change speeds and use often the same materials and tools on your mill than this is the most INEXPENSIVE style of mill.
  2.  Variable Speed Head-A variable speed head has a simple handle that you spin to change the speeds.  There is also a High and Low Speed Selector to choose that will open up a large range of speeds.  This is a quicker way to change the speeds than a belt pulley head and the most popular head made today.
  3. A/C Inverter Head-Being the most expensive you will not see a large amount of used milling machines on the market with this option.  It will generally cost about $1,000 more than a variable speed mill.  This option uses a pedometer to allow for speed change giving ultimate control on your head speeds with the least amount of time to change the speed.  This A/C inverter head option also allows for the user to power the mill using both 220V Single phase and 220V Three Phase power.

Q:  What accessories do I want with my new or used Vertical Milling machine?

A:  Basic options range from:
1.  Powered Table Feed on X, Y or Z axis-  This allows for auto feed as well as having rapids to quickly bring the table back to home position.
2.  Powered Draw Bar- Uses air to turn the drawbar allowing for the user to change the collets out quickly and easily.
3. DRO or Digital Readout- This is a great way to easily see the X, Y and Z axis readings without having to look at the handles.  They often have calculators built in for Milling Machine Calculations.

4.  Vise, Collets, End-mills and other work holding tools.

2 Axis Digital Readout or DRO for a Vertical Milling Machine
2 Axis Digital Readout or DRO for a Vertical Milling Machine

Are you looking for a milling machine to buy or sell?

Sterling Machinery Exchange, A member of MDNA, has dozens of new and used mills in stock available for inspection underpower.  This allows for the consumer to see all the different brands and options all in one place.  They ship worldwide and have been in business since 1954. Call to speak with a helpful milling machine sales person today!  626-444-0311 This article was Written by: Adam Mattes, V.P. Sterling Machinery Exchange

You can also contact any of MDNA’s machinery dealers, located around the world, by using the Find Members>Search tool on

Written By: Adam Mattes, V.P. Sterling Machinery Exchange


MDNA launches new webinar series -“Lunch & Learn”


MDNA is excited to introduce a new webinar series called “Lunch & Learn!” 

MDNA is very proud of the educational opportunities that we have made available through: Convention programming, WWTP, B.O.S.S. and articles within our news publications.

With this new member benefit, you can take advantage of the expanded educational offerings in both industry relevant and general business topics through the use of these online webinars.

AMEA has successfully implemented and used webinars for continuing education for years and even though these webinars have been open to all within the MDNA family they have predominantly been geared toward the Appraiser side of the business. While some of the topics dealing with specialty machines will overlap, the MDNA webinars will also delve into business topics to include marketing and sales. Topics will be determined by feedback from members –so the topics are endless!

We look forward to having you participate in one of the new  “Lunch & Learn” webinars found under Calendar of Events on

If you have a topic you would like us to consider just email

Weekend With The Pros, MDNA

Weekend With The Pros 2015 Leaves a Lasting Impression

MDNA’s popular Weekend With The Pros was held October 15th -18th 2015, in Milwaukee, Wisconsin.  The event kicked off on Thursday with a B.O.S.S. seminar. Participants reported leaving with many good implementable takeaways.  The B.O.S.S. was moderated by Joe Lundvick, MDNA First Vice President, of Perfection Machinery Sales Inc.  Attendee Steve Beck of Automatics & Machinery Co. Inc., commented that “Joe did an outstanding job of facilitating the event and provided some very good take home information.  We need to have this annually or every other year.”

Friday included an eye opening tour of Falk Corp. where attendees saw, among other impressive machines, one of, if not the largest Gear Shaper and Vertical Boring Mills in North America.  Friday also packed a lot of fun and networking with tours of Miller Brewing and the Harley Davidson Museum.  The day concluded with a Milwaukee/Minneapolis Chapter Meeting and networking dinner.  These events would not have been possible without the support of two great Premier Vendors and great sponsors, Bidspotter and Direct Capitol.

Saturday was a world wind day packed full of educational tours starting with breakfast at Premier Vendor, Bentley World Packaging.  Tom and his team opened their doors and our eyes into their world of specialty packaging, from custom packaging for any type of shipment, to all of the requirements needed for national or international shipping of machines from locations around the country.

Ever pitch a machine from your inventory and have a potential customer respond with hesitation because they are looking for a more automated way of doing things?  Our next stop was Acieta.  They are a leader in automation technology, with over 4,000 robotic system installs throughout North America.  Attendees saw several examples of how partnering with Acieta can give them the expertise to bring used machinery and robotics together to present a lower cost and increased production automation solution to customers.

Our tour ‘lunch stop’ was at the Wisconsin Branch of MDNA member Concept Machine Tool.  This was another great example of a key benefit of MDNA membership.  No other organization could get access for 3 bus loads of people into a first class facility like Concept.  Here attendees did not just tour a warehouse full of machines.  Bob Jurack, General Manager, and his team, made sure that attendees also received a first class education on Measuring-Inspection Equipment.  And we learned that in addition to Concept Machine Tool being one of the largest full service machine tool distributors in the mid-west that through their Measuring Equipment Division, Concept is a great partner for dealers to work with for their precision manufacturing customer needs. They are experts in offering CMM, precision measuring, optical comparators, microscopy scopes, gages and surface testers, calibration and more.  While at this tour stop attendees were treated to a great lunch courtesy of Alternative Machine Tool, LLC.

Our fourth stop of the day was at a manufacturer called Weldall Manufacturing Inc., the large weldments and large fabrication experts.  And by large I mean really, really, large.  To see how large all you have to do is checkout our photos.  Oh wait, we were prohibited from taking photos because of the type of work and the customers that Weldall services.  In fact our tour access was very rare and took special permission that was granted because of the efforts of one special MDNA member.  JR Kramer of Wisconsin Metalworking knew the value of a tour at a place like this and went over and above to help get us in the door.

Speaking of JR Kraemer, he Chuck Radtke and the entire team at Wisconsin Metalworking Machinery opened their doors for the last tour stop and in addition to demonstrating three machines under power and showing off their more than 50,000 square feet of machinery the WMM team hosted a German fest style party complete with pig roast German beer and all the trimmings for us.

A special thanks goes to the Milwaukee/Minneapolis Chapter Leadership team of Brad Wilson and Scott Buth of Alternative Machine Tool, LLC, who were responsible for creating this great weekend full of activities and tours.

As stated many times before, these events could not be put on without the generous support of tour hosts and sponsors and we encourage all who attended this fabulous weekend to reach out and thank all who contributed.  Please take a moment and read the names of all the companies that made WWTP in Milwaukee great!

Well done once again on Weekend With The Pros. Just like the other two I attended, the itinerary was well done and interesting. Fun activities, with lots of freedom to schmooze simultaneously. Networking was great. Everything was excellently organized, and the stuffed animals were unforgettable. I know I got a lot out of the weekend. Often I don’t know exactly what the most important effect of an event like this will be, but I’m sure down the line something good will happen because of it. You know it will always be interesting when such a colorful group like used machinery dealers get together. Looking forward to the next one. – Noah Graff, Graff-Pinkert & Co. Sales

 *Check out the MDNA Facebook page and the MDNA Fall News edition for more images to come!


Picture 1 of 15

Special Thank You to the Following Tour Hosts and Sponsors
Wismet-Logo-HI-RES (4) bentley_logo
AMEA Color Logo weldall
alternative-machine-tool-logo concept
Smith Machinery logo (002) bidspotter-sponsor-slider
 direct captital logo  yoder logo
 sommin  naab logo  FL SALES TOP LOGO1
 SIM_Logo-1-page-001 (002)  Print
MWI Logo (002) low res acieta


What is the true state of manufacturing in the United States?

By Alan Kelsky Monday, September 28, 2015 via MultiBriefs manufacturing

Experts in manufacturing hold differing opinions about how well the sector is doing since the Great Recession. In fact, the same sources tend to be schizophrenic about the manufacturing sector’s progress.

For example, CNBC ran a story on June 10 entitled, “Is there a renaissance in US manufacturing? Numbers don’t add up.”The numbers cited include that since 2007, when the Great Recession began, the manufacturing sector has not recovered and is down 3.2 percent in output and “2 million jobs have been lost.”

Two weeks later, CNBC reported a different story — “The manufacturing renaissance in America’s heartland” — based on a release from the National Association of Manufacturers’ Outlook Third Quarter Survey. This report was about how well the country is doing in the manufacturing sector.

Making sense of it all

So, are you as confused as I am? Perhaps the arguments presented by both sides are close to those of the Information Technology and Information Foundation (ITIF) and the Congressional Research Service (CRS).

You see, in March, the CRS rendered a report to Congress called, “U.S. Manufacturing in International Perspective.” In August, The ITIF released a scathing report called, “A Critique of CRS’s ‘U.S. Manufacturing in International Perspective.’

The ITIF report soundly criticized the CSR report as “overly rosy.” In fact, the ITIF report strongly indicated that the U.S. manufacturing industry is deeply in trouble and most likely needs more help than ever.

The ITIF report notes that the U.S. economy is inextricably bound to the manufacturing sector. The study authors, Adams B. Nager and Robert D. Atkinson, also inform readers that Congress looked to CRS in order to identify the need for policies and programs to nurture the industry.

The CRS, according to the ITIF is wrong in its overall finding that the manufacturing sector is healthy and the government, through legislation or program advances, will not have a positive impact on this important economic sector.

“Thus, CRS endorses an agenda of inaction,” the ITIF report states. “The CRS report mistakenly suggests that U.S. manufacturing is healthy while dismissing the need for supportive manufacturing policies. However, as we demonstrate in this response, the CRS report consistently errs on the side of ‘all is well’ when in fact actual U.S. manufacturing performance is declining significantly.”

Factors leading to the ITIF conclusions

As mentioned earlier, the manufacturing sector has 2 million fewer employees than before the Great Recession.

According to CRS, using data from The Conference Board to measure job loss, there has been a 12 percent employment loss in manufacturing from 2003 to 2013. Had that number been taken from the U.S. Bureau of Economic Analysis (BEA) the number is almost 50 percent larger at 17 percent. The ITIF seems to be accusing the CRS of cherry-picking numbers.

Moreover, ITIF is critical of the time period chosen by CRS. This criticism is due to leaving out the period from 2000 to 2003. At that time, U.S. manufacturing employment shrunk by 16 percent, caused by a recession. So, the actual loss of manufacturing jobs, if the alternative time period is used is more like 30 percent.

When an economic sector loses 30 percent of its jobs, the industry is likely in decline. Nevertheless, apologists for the U.S. economy tend to blame the job losses on increased productivity gains. Statistics say “it ain’t so.”

Using jobs and value-added growth by the manufacturing sector, ITIF claims that the productivity gain is imaginary — and the U.S. manufacturing job loss is due to a lack of competition and not an increase in productivity.


Manufacturing sector participants should read the reports by the CRS and ITIF. Read both with a pen and pencil to make notations and compare data. Then you can make an informed decision as to which data you believe.

Beware, though, the adage is true: “Statistics don’t lie, but liars use statistics.”


About the Author

Alan Kelsky

Alan Kelsky is a freelance writer with a master’s degree in business administration from Xavier University with a specialty in healthcare management. Alan was formerly a hospital CEO with an active emergency room and was the CEO of an urgent care center in Pompano, Florida. He is also formerly the owner of Electric Control Services. His company worked with manufacturers and commercial building owners by offering energy audits, energy efficiency technology sales, installation and follow-up monitoring.