As part of the Manufacturing Extension Partnership (MEP), a federal program of the U.S. Department of Commerce, CAMT sent staff and clients- Peter Holtgreive of Mesa Laboratories, Curt Viehmeyer of Sears Trostel, and CAMT's Elaine Thorndike and Merrily Hill Smith-- to the nation's capitol. Representatives of MEP organizations and small manufacturers from across the country congregated on the Capitol to meet with Congress to request a budget allocation of $122 million in fiscal year 2009 to assist the MEP network operating out of nearly 350 locations nation-wide.

MEP is the only federal program dedicated to providing technical support and services to small and medium-sized manufacturers. MEP Centers such as CAMT providing access to information, training and technologies that improve efficiency, productivity, and profitability. MEP Centers also strengthen the manufacturing base through increasing competitiveness and supporting greater supply chain integration. In 2007 alone, CAMT clients have reported an increase of $77.2 million in sales, and decreased their annual costs by $23.1 million. For every $1 received by CAMT through the federal MEP program, $224 more is circulated into Colorado's economy.

While the President's fiscal year 2009 request proposed elimination of the MEP program, Representatives Udall, DeGette, and Perlmutter, as well as Senator Salazar, have agreed to support the authorized funding level for MEP in the amount of $122 million.

"With the help of CAMT, UFP Windsor is becoming a showcase for Continuous Improvement best practices." -- Brian Niess, General Manager

The Windsor, Colorado division of Universal Forest Products was established 24 years ago to provide wood and lumber products for "do-it-yourself" retail centers, manufactured housing, industrial, and site- built construction industries in Colorado. With the assistance of CAMT, UFP has become a true continuous improvement facility with all 130 employees working towards eliminating non-value added activities in their work.

UFP Windsor had been and continues to be a consistent top ten performer in the 100+ division corporation. Even with their success, UFP management recognized that the markets they served were becoming increasingly difficult to function profitably in, and solutions to increase efficiency were essential. UFP Corporate headquarters encouraged UFP Windsor to explore the continuous improvement ideas of Lean principles, and they contacted CAMT, Colorado's MEP center, for help.

All employees of Universal Forest Products participated in CAMT Lean training: they used the 5S methodology to organize work areas, mapped the value stream of product lines, focused on decreasing set-up and change-over times, and held two week- long kaizen events to identify and implement rapid improvements. Implementing Lean has helped UFP gain a competitive edge in the market --UFP can demonstrate a cleanliness, organization and efficiency often lacking in the lumber industry. Staff analysis, improvements and ownership of plant processes have cemented confidence in the quality of each of their products. UFP has seen a 20 to 30% reduction in costs for machine run-throughs, and is now often running two pieces at a time, resulting in a 20% efficiency increase. Furthermore, increases in efficiency have resulted in an over-time hours reduction of 29%, further impacting the bottom line.

UFP is serious about continuous improvement. To ensure Lean gains achieved are sustained and improved upon, a Continuous Improvement Manager has been hired to incorporate Lean principles into daily work at the plant. Each supervisor meets with the Continuous Improvement Manager weekly to work towards achieving the highest level of efficiency possible. Mini-kaizens and "waste walks", a procedure to identify and reduce any waste of product, motion or time occurring during a process, are conducted multiple times a day.

Results:

• Increased sales by $250,000
• Retained sales of $750,000
• Reduction in overtime hours of 29%

You may be eligible for a tax deduction of up to $1.80 per square foot for improving the energy efficiency of your facility. The Energy Policy Act of 2005 includes a tax deduction for investments designed to significantly reduce the heating, cooling, water heating, and interior lighting energy cost of new or existing commercial buildings. To be eligible, the energy-efficient improvement-- such as a new energy-saving lighting system-- must be placed in service between January 1, 2006 and December 31, 2008.

To qualify for the full deduction, a building owner or tenant must make investments designed to reduce energy costs by 50% or more. A partial deduction of $0.60 per square foot is available for investments in lighting, heating and cooling or building envelope designed to reduce energy costs by 16.67%. Your energy improvements will need to be certified by a qualified engineer to be eligible for the deduction.

The first step in any effective energy savings program is to track your current energy use, and then determine a reasonable energy savings goal. Visit energystar.gov to learn about energy use tracking and benchmarking tools.

To find out if you may be eligible for this tax deduction, or to receive energy efficiency consulting, the below resources may be helpful:

• Sonjia Romero, Tax Projects Group, 720.207.8364
• Stephanie Simons, RSM McGladrey, Inc., 303.298.6473

Article content provided by Tax Projects Group.

CAMT is excited to announce an opportunity for small companies with 40 or fewer employees to participate in a Eureka! Winning WaysŪ pilot designed specifically for "small companies" at a reduced cost. Three selected companies will join together for an "Idea Generation Day" on April 17th with Eureka! Ranch staff and CAMT growth coaches. Your company will receive individual attention on-site from a CAMT growth coach for all other activities in the eight-week Eureka! cycle.

Eureka! Winning WaysŪ is a systematic methodology for helping companies increase sales. The program's goal is to help clients discover measurably smarter choices for growth and to rapidly move those ideas into reality via a systematic process. This program exemplifies CAMT's goal of helping Colorado manufacturers not simply survive, but thrive in the global marketplace. To learn more about Eureka! Wining WaysŪ, please visit the CAMT Web site.

If you'd like to learn more about this pilot opportunity, please call 303.592.4087.

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