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INDUSTRY NEWS


LETTER TO THE EDITOR (CONT.) to pay the owners comfortably plus


provide for modest reinvestment. In the decades to follow, the sales level for this viability level continued to rise. If you did not grow sales, then the bottom line suffered, new equipment installa- tion suffered and foundries closed. Tus, the sales dragon must


constantly be fed. Take a look at the jobs you get each year as a graduating class. Ten, track the sales class over at least 10 years. You will see it starts out low, grows quickly, plateaus and starts a long-term decline. In years 8, 9 and 10, our experience is you will be at approximately 10% of the sales at its high. Also, monitor how your “hit ratio” is and where you are in the Mendoza Line by molding center. You may be surprised where your sweet spot is. Once you identify your sweet


Indian Caster to


spot, make sure more falls adequately and appropriately to the bottom line. Te use of Horngren’s principles,


with a good understanding of how your facility works in conjunction with an accounting system that is based on allo- cation basis most germane to that area, should yield a rational system. I can tell


you that Charlie Horngren’s “Cost Accounting: A Managerial Em- phasis” has led to never having lost money. To me, that is more relevant than EBIDA ever has been. Tim Brown, Vice President Benton Foundry, Benton, Pa.


Build U.S. Facility Sundaram-Clayton Ltd., Chennai,


India, announced plans to invest $8 million in a diecasting facility in the U.S. Te potential American casting facility would be Sundaram-Clayton’s fifth site and its first on foreign soil. Te company, part of the India-based TVS Group, primarily serves the automotive market with a total annual capacity of 50,000 tons.


NEWSCAST Te Maumee Pattern Company


celebrated 100 years in operation at its location in Toledo, Ohio, on October 21. Te 18,550-sq.-ft. facility of- fers a variety of services for patterns, coreboxes, dies, tooling machining and rapid prototyping.


Walker Die Casting, Lewisburg,


Tenn., a supplier of aluminum die cast- ings, has ordered a new 4,500-ton Series II diecasting machine from HPM North America Corp., Marion, Ohio. Te Series II machine will be the largest cold-cham- ber diecasting machine produced by HPM North America. Walker plans to receive the new machine in early 2017.


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November 2015 MODERN CASTING | 21


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