Wiring Harness News WHN Nov-Dec 2012

INDUSTRIAL INFO-TAINMENT • Wire Wisdom s i : e s h • Growing your Business: Part 1 u T s re • SEC Conflict Mineral Reporting Is tu a • Beyond Expectations A-620 Rev B e F • Making Sense of New Conflict Minerals Rule • Wire Harness Industry: Three Decades of Change Wiring Harness News NOVEMBER/DECEMBER 2012 1 NOVEMBER DECEMBER 2012 Northwind Electronics Flexibility and responsiveness are key to their growth By Fred Noer __________________________________ espite the complexities of owning and operating a busi- ness in the wiring harness industry, Phillip Berry strives for simplic- ity each time he handles a matter per- taining to Northwind Electronics, his company in Indianapolis, Ind. D Phillip Berry, CEO Northwind Electronics “Less is more,” Berry, 43, said. “I’m a big believer to scale a business by being smart. You’ve got to know when to shift gears, and the business will tell you. Be patient. You’ll know when it’s right.” Berry’s straightforward approach to business management coincides with his personal philosophy, which is embodied in four tenets: 1. Follow the signs. 2. Leave it better than you found it. 3. Be a good steward. 4. Make a differ- ence. About the first tenet, Berry said: “If it’s too tough or difficult, you’re proba- bly going in the wrong direction. You have to be in harmony with your capa- bilities, the timing of the market and the people around you. You need to settle down long enough to listen to what the signs are.” For Berry, leaving something better than you found it is illustrated best by his purchase in late 2010 of a building in Anderson, Ind. The structure was empty, vacated three years earlier by General Motors after it shuttered a large com- Beyond Expectations IPC/WHMA A-620 and the Launch of Revision B By Joe Tito Wiring Harness News __________________________________ t’s been ten years since the initial release of IPC/WHMA A-620 Requirements and Acceptance of Cable and Wire Harness Assemblies. The specification was an immediate success, and has become the single most signifi- cant document in support of process I and inspection for the industry. Now available in seven different languages, A- 620 is being used by the industry world- wide. Over 1000 companies have at least one in-house IPC Certified Trainer, and that number continues to grow at 18% annually. There are now over 1100 com- panies, in 42 different countries, with at least one IPC Certified Application Spe- cialists. Annual growth there is at 25%. It ________________Continued on page 10 Steve Fox of Northwind Electronics monitors the wire runing through one of the wire processing machine. plex of buildings used for manufactur- ing. With the prospect of a new cus- tomer placing large orders, Berry bought the facility and planned to increase his workforce of 10 by 100. He spent more than $100,000 on improving the build- ing, but the customer backed out, prompting Berry to sell the building. “It was an eyesore, but now it looks nice,” he said. In Berry’s view, good stewardship is using his gifts and talents to “be the absolute best I can be. It means giving back to the things you support, too,” he said. “I was called upon to pull together businesses, and I see it as my personal mission.” Making a difference is related to leav- ing something better than one finds it. Berry stated Northwind Electronics is his vehicle for making a difference in the lives of his employees, customers, family members and people in his community. ________________Continued on page 22 SEC Final Rule on Conflict Mineral Reporting By Joe Tito Wiring Harness News __________________________________ n the November/December 2011 issue of Wiring Harness News, we outlined Section 1502 of the Dodd-Frank legislation of 2010, and its specific implications to the wire harness industry. The legislation offloaded the actual rules for conflict minerals report- ing to the Securities and Exchange Com- mission. At that time, the SEC set up a work group of representatives from industry and NGOs to design a frame- work for reporting requirements and rules. Using those recommendations, the SEC issued its final rule on reporting requirements on August 22 of 2012. This article highlights some of the major aspects of the final rule, and fills some of the gaps left by the original SEC inter- pretations of the law. Basically, the rule covers any entity that files reports with the SEC in accor- dance with Sections 13(a) or 15(d) of the Securities Exchange Act of 1934. It covers corporations who manufacture, or contract to manufacturer a product containing a conflict mineral that is nec- essary for the functionality of its prod- uct. This includes domestic companies, I foreign private issuers, and smaller reporting companies. Obviously, private- ly owned manufacturers will be affected as downstream customers pull for the necessary information. For the purpose of this article, tin, tan- talum, tungsten or gold are referred to as conflict mineral. It is important to note that the term conflict mineral refers to these metals without regard of how or from where they were sourced. This disclosure requirement will be will be made on the new Form SD (spe- cial disclosure). Initial special disclo- sures are to be due annually beginning May 31, 2014 for the calendar year 2013. The Form SD special disclosure will be “filed”, rather than “furnished” based on the SEC's interpretation the law. The dis- closure will cover products that have been manufactured to completion in the previous calendar year. At the publica- tion of this article, the SEC has not released the Form SD. The rule exempts conflict minerals that were “outside the supply chain” or stockpiled prior to January 31, 2013. This exemption is limited to minerals that have already been smelted, or are located outside the covered countries; as ________________Continued on page 16