Posts Tagged ‘Small Shop’
Health insurance rebates expected to save employers millions
An analysis from the Kaiser Family Foundation finds that U.S. businesses that sponsor fully-insured group health plans could share millions of dollars in rebates from health insurers who spent more on administrative expenses and profits than allowed by the Patient Protection and Affordable Care Act (PPACA) by August 2012.
The PPACA requires that insurers pay out a minimum percentage of premium dollars toward health care expenses and quality improvement activities, which limits the amount insurance companies spend on administrative and marketing costs.
Under the new law, large group plans are required to spend at least 85 percent of premium dollars on health care and quality improvement, and small group plans must pay 80 percent. These percentages are described as the medical loss ratio (MLR). If an insurer fails to pay out within a state market segment, they are required to issue refunds to consumers and employers. For group plans governed by the Employee Retirement Income Security Act (ERISA), insurers generally provide rebate amounts to the group policyholder, which often will be an employer or plan established by an employer. Self-funded plans are not subject to the MLR regulations.
Estimated rebates include $541 million in the large employer market, $377 million in the small business market and $426 million for those buying insurance on their own, a Kaiser Family Foundation report found.
Employers are expected to receive rebates of up to 28 percent in the small group market, and 19 percent of the large group market.
All insurance rebate data is based on estimates provided by to the National Association of Insurance Commissioners in 2011. The actual figures will be reported to the federal government for comparison later this year.
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2011 AWFS Fair offering small shop seminars
Responding to feedback from 2009 AWFS Fair attendees, AWFS has created a new educational track for the 2011 College of Woodworking Knowledge (CWWK) education program for small shops: Small Shops Ten & Under. Topics will focus on the needs of shops with 10 or fewer employees.
Results from a survey of 2009 show attendees who self identified as coming from shops with 10 or fewer employees showed more than 86 percent wanted a small shop educational track. They also offered suggestions for topics, and these suggestions will be reflected in the track’s lineup.
The development of the CWWK program is led by an industry-wide advisory committee chaired by Philip Martin of Hafele America Company, with representatives from machinery and related tooling, software, millwork, hardware, wood products, independent furniture makers and the trade press. Associations represented include the Architectural Woodwork Institute, Cabinet Makers Association, Hardwood Plywood & Veneer Association and The Furniture Society.
The CWWK includes eight educational tracks: Business Management, Cabinet & Millwork, Software & Technology, Techniques & Applications, Handcrafted Furniture, Safety & Environment, Teacher Track and Small Shops Ten & Under.
Classes at AWFS Fair will begin July 19, 2011, the pre-show day, and continue throughout the four days of the show. The 2011 roster will include the popular SMART program (Special Machinery and Relevant Technology) — technical sessions conducted at machines on the exhibit floor before the show opens.
For additional information on CWWK, contact Nancy Fister, education director, at nancy@awfs.org; or 800.946.2937. Full CWWK program details should be available in March 2011.
Plan for the future, get through the present
I visited a smaller shop in Tennessee recently that is planning for the future while trying to get through the present. They’re taking some jobs a little outside of their area in order to stay busy, but know what they do best and want to focus on that when business picks up.
“As the market improves, I anticipate our strategy will be to narrow our focus to concentrate on the more profitable items,” one of the owners told me. There’s also the matter of a move to a new location, which has been held up in part due to the slow economy.
“We are able to adapt, and we are able to attack the jobs that are a little more challenging,” the other company principal told me. “There’s always going to be a need for high quality millwork.” We’ll have more on this company in CabinetMaker+FDM in September and on www.cabinetmakerfdm.com.
Helping you compete on price
With the slow economy has come unparalleled pricing pressure for custom work. Low-ball bidders and desperate bottom feeders have hurt many mainstream shops by giving potential customers unrealistic expectations on price. Today’s shops really need to know their true bottom line so they can better compete and confidently say no to jobs that won’t make a profit.
All of that takes better market intelligence, and that’s where the annual CabinetMaker+FDM Pricing Survey comes in.
How it works
The survey begins with a selection of real projects done by real shops. We send bidding specifications for those projects to volunteer bidders in shops all across North America. They price the jobs, and we print the itemized results in our October issue, showing breakdowns for materials, shop rates, and production time.
Many shop owners report that just doing the survey helps them fine-tune their pricing and estimating procedures. Often shops request the bidding materials after the survey runs in the magazine so they can compare their results.
How to participate
The more participation by shops, the more value and validity the survey has. Identities of all shops that participate are kept confidential.
To obtain a bid package for this year’s pricing survey, simply send us your name, address, and phone number, plus some information about what kind of work your shop does. We’ll mail you a bid package as soon as they are ready in June. Email bid package requests to wsampson@wattnet.net.
All bids must be turned in August 20 to be included in the published pricing survey. For more information, phone 203.270.0025 or go to www.CabinetMakerFDM.com.
Marketing your shop to build business
As the economy begins to improve, this is a golden opportunity to position your shop with an aggressive marketing plan. Learn woodworking-specific, cost-effective marketing ideas that you can put to work in your business.
Join CabinetMaker+FDM editor, William Sampson as he discusses real-world solutions that have worked for real shops. He will also point out common marketing and advertising paths that typically don’t work so well for woodworking businesses.
This online seminar is part of an educational series presented by CabinetMaker+FDM magazine. This second seminar in the series will be presented on May 27th at 1pm Central and will be Pay-Per-View only.
The cost to view this seminar is $39.95.
Attendees will be issued a password to view the seminar after completing both the registration and fee transaction.
WMIA announces 2009 Wooden Globe Awards
At its 22nd annual awards dinner, the Woodworking Machinery Industry Association (WMIA) announced the winners of the 2009 Wooden Globes for its Innovator, Educator and Commitment to Excellence through Technology Awards at the Woodstock Inn and Resort in Woodstock, Vt.
“One of the main characteristics the companies we are honoring this evening have in common is that they are extremely efficient and let technology drive their businesses,” said David Rothwell, WMIA president and Stiles Machinery Inc. executive vice president.
The 2009 winners are:
- Innovator, Anvil Motion (Brigham City, Utah)
- Educator, Hennepin Technical College (Brooklyn Park, Minn.)
- Commitment to Excellence in Technology, Hoff Enterprises (Johnstown, Penn.)
“… Anvil Motion offers … ‘smart system’ cabinetry that includes recognition sensors that allow the opening and closing of cabinet doors with the wave of a hand, and drawers that open and close with the touch of a finger. It comprises the most sophisticated biometric technology to set the lighting, audio/video equipment and room temperature requirements of the specific individual entering the kitchen,” said Michael Cassell, WMIA member and Holz-Her North American CNC production manager. Nathan Deem of Anvil Motion accepted the Innovator of the Year Award.
Jim Besonen, WMIA member and Wood Machinery Systems’ CEO, recounted his personal experience with Hennepin Technical College in presenting the Educator of the Year Award, honoring educational programs that produce trained, motivated and skilled employees for wood-product manufacturing companies, particularly those integrating high technology equipment.
“What was most impressive to me was to see how this school had helped to grow our industry. The alumni are not just skilled craftsmen and woodworkers, but many are entrepreneurs, business managers, employers and, maybe most importantly, machinery buyers,” he said. Keith Hanstad, a cabinetmaking instructor at the college, accepted the award.
Joe Wentzlof, WMIA member and regional sales manager for Holz-Her, presented the Commitment to Excellence through Technology Award, recognizing companies that have achieved consistent growth and profitability in their market segments.
“Upon entering Hoff Enterprises’ 50,000-square-foot manufacturing space, it quickly became evident that the owners have invested in technology – both equipment and software – as well as
in their employees’ continuous training and support,” Wentzlof said.
The company is committed to the concepts of ReEngineering, ReTooling and ReEducating. Kurt Friedhoff accepted the award.
Woodworking in America hosts 3-day workshop
Woodworking in America’s Furniture Construction & Design Conference will be held in St. Charles, Ill., from Aug. 14 to 16 this year.
Lectures, question-and-answer sessions and hands-on training, will be available at the conference.
The program is divided into three parts:
- Mastering the mechanics of the design process;
- Gaining a deep understanding of the predominant American furniture styles; and
- Learning to create the right joinery, mouldings and details to execute your designs.
For more information or to register, visit woodworkinginamerica.com.
FastTrac training to help businesses in Michigan
In response to record unemployment rates in Michigan, the Michigan Small Business and Technology Development Center is making FastTrac entrepreneurship training available for those interested in starting a new business or retooling an existing business that is struggling in the current economy.
The program is designed for workers who have lost their jobs or entrepreneurs whose small businesses are challenged by the economy.
“By hosting the FastTrac LaunchPad program, we are providing an opportunity for local entrepreneurs to hone the skills needed to create, manage and grow a successful business during a challenging economy,” said Carol Lopucki, state director of the MSBTDC.
Nordfab Ducting expands in UK, pursues sale prospects
Nordfab Ducting announced it has expanded it manufacturing and production capacity at its facility in Leeds, England.
To promote the expanded capacity and introduce Nordfab products to prospective customers, the company teamed members of its U.S. and Swedish sales force together with its British salesmen in a week-long goal to call on nearly 250 sales prospects.
Cabinet sales down 29.2% in March
Cabinet sales for March 2009 decreased 29.2 percent compared to sales for March 2008, according to participating members in the Kitchen Cabinet Manufacturers Association monthly Trend of Business Survey.
Stock cabinet sales decreased 25.4 percent, semi-custom sales decreased 30.4 percent and custom sales decreased 39.2 percent.
Year-to-date sales show a decrease of 32.4 percent overall, with stock sales down 24.6 percent, semi-custom sales down 37.7 percent and custom sales down 40.6 percent.
Survey participants include stock, semi-custom and custom companies whose combined sales represent more than 50 percent of the U.S. cabinet market.
