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Sustainability Report: 2007New Hampshire Ball Bearings, Inc.HiTech Division

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division �

Dear Friends,

HiTech made solid progress in FY07 toward our goal of becoming a premier global aerospace bearing manufacturer. To reach that goal, we focused on expanding our product offerings in the markets we serve. Expanding our offerings has its own unique set of challenges. In support of these efforts, facility layout changes and additional modifications to infrastructure consumed many months of hard work. Likewise, looking for and retaining a highly skilled workforce has been and continues to be a major focus for us. We continue to confront ever increasing costs that affect all of us who live in northern New England.

Our values guide us in our efforts to overcome the many challenges we face conducting business from this rural corner of New Hampshire. Hanging on a wall in our training center is a poster with the words quality, integrity, partnership, social responsibility and education. These terms, which are our shared values and practices, are a reflection of who we are as a company. We encourage their use on a daily basis, as they are the foundation of strong relationships with our stakeholders, including the communities in which we live and work.

As Operations Manager and the person responsible for the performance of the HiTech Division, I present to you our second sustainability report. In this document you will find information pertaining to our economic, environmental and social performance. The charts and graphs include data from our 2007 (Apr 2007 – Mar 2008) fiscal year (FY) as well as earlier fiscal years where available.

Like our previous report, this one utilizes the Facility Reporting Project guidelines developed by Ceres (www.ceres.org). We have applied these guidelines to identify our largest impacts and stakeholder priorities in an effort to determine what to include in this sustainability report. For advice in preparing this profile, we turned inward to our employees, as well as outward to our local and regional stakeholders.

We invite you to share in this profile in the hope that it will give you a new perspective of HiTech. We trust the information collected in this report will provide insight into our company’s progress and future challenges. Furthermore, we hope that, if you have any questions or ideas, you will share them with us, as we believe that open communication between HiTech and our community strengthens us both. Comments or questions related to our report can be directed to [email protected] or by contacting Patti Carrier at 603-924-3311 x5554.

Sincerely,

Richard C. ReynellsOperations ManagerNew Hampshire Ball Bearings, Inc.HiTech Division

Table of ConTenTs

Letter From Ops Manager .......................................................................................................................................................................................... 1Stakeholder Engagement .......................................................................................................................................................................................... 3 Chart of Stakeholders .......................................................................................................................................................................................... 4 Overview of NHBB ...................................................................................................................................................................................................... 5NHBB’s Business Divisions ........................................................................................................................................................................................... 6 Astro Division......................................................................................................................................................................................................... 6 Precision Division .................................................................................................................................................................................................. 6HiTech Division: Who We Are ...................................................................................................................................................................................... 7 Metrics and Examples of Performance through 2007 ....................................................................................................................................... 7Our Business and the Environment ........................................................................................................................................................................... 8 Environmental Stewardship ................................................................................................................................................................................. 9 Energy ................................................................................................................................................................................................................. 10 Materials ............................................................................................................................................................................................................. 12 Water ................................................................................................................................................................................................................... 15Our Employees and Community ............................................................................................................................................................................. 16 Employment ....................................................................................................................................................................................................... 17 Safety .................................................................................................................................................................................................................. 19 Supporting Our Community .............................................................................................................................................................................. 20 The Health of Our Business ................................................................................................................................................................................ 22Census Data ............................................................................................................................................................................................................. 23Index of Indicators .....................................................................................................................................................................................Back Cover


We seek relationships, collaborative alliances and consultations with stakeholders that provide in-sightful and constructive feedback on our programs and operational improvement initiatives. We focus on HiTech’s priority issues and largest sustainabil-ity impacts as well as including other areas of our business that have a high level of interest from our stakeholders. We identify (external) stakeholders by assessing their expertise on a particular subject mat-ter, their willingness to collaborate with the busi-ness community, their reputation and location, their relationship with government, and their relationship with other stakeholders.

Information requests, comments, questions and feedback directed at the company are handled through our communications department and dis-seminated throughout the company. Inputs from

selected areas of the organization are called upon to aid in and/or answer information requests.

The main issues raised by our stakeholders were highly consistent with our own analysis. They include:

• Internal stakeholders (employees) - Enhance-ment of general and job-specific training pro-grams, as well as providing for more employee involvement and engagement related to business issues. For this second report, we convened a group of employees from different departments who had varying years of service. They were introduced to the reporting format and asked to provide input on issues that mattered to them. • External stakeholders – Description of our basic material (resource) impacts and how HiTech’s presence in the local community is realized.

our sTakeholders

Jim Geary, Sales Manager for New Hampshire Ball Bearings’ HiTech Division, accepts a special service award from Patricia Lavendier of Hamilton Sundstrand.

� Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division

Category Name Priority Issues How We Engage Frequency Feedback Mechanisms

Community group

Monadnock Green Business Network

Sustainable Business Practices Requests for information As needed Best practices sharing, networking

Local business group

Greater Peterbor-ough Chamber of Commerce

Longevity related to businesses in Peterborough

Meetings, board membership Community breakfast meetings, various activities, roundtable busi-ness meetings

Results and outcomes of meetings, letters of recognition, networking

State business group

Business & Industry Association

Support for legislation and regulation that impacts business favorably

Committee meetings, Trustee of non-profit service arm of organization, seminars

Monthly meetings for various committees, minimum of annual meeting for Trustees

Letters of recognition and thanks, awards, networking

HiTech’s work-force

HiTech employees and on site con-tractors

Fair wages and benefits, clean and safe work environment, effective communica-tion

Meetings, postings, various commit-tees, open door policy, and other company communication/activity channels

Daily interactions and various com-pany communication channels

Actions and outcomes from meet-ings, turnover rate

HiTech’s Parent Organization

Minebea, Co., Ltd. Statutory and other reporting informa-tion, capital resource

Direct reporting of all aspects of performance

Monthly at a minimum Meetings, capital projectapprovals

Local govern-ment

Town of Pe-terborough, Peterborough Fire Department

Business activities related to environmen-tal, health and safety impacts, business stability and longevity

Public meetings, report filings, direct engagement on various projects

Quarterly at a minimum Results of meetings, requests for information

State/Federal government

NHDES, EPA New England, NHDOL, OSHA

Compliance and beyond compliance activities related to the environment, and health and safety of employees

Participation on voluntary programs, meetings, seminars, report filings

Quarterly at a minimum Results of meetings, requests for information, letters of recognition, awards

State non-profit groups

New Hampshire Businesses for So-cial Responsibility

Sustainable business practices Meetings, seminars Monthly newsletter Results of meetings and seminars, best practices sharing

State NGO New Hampshire Carbon Challenge

Reduction of greenhouse gas emissions Collaborative meetings, in kind and $ support

As needed (ongoing) Results of meetings, calculation tools, letters of recognition

Local schools & non-profit organizations

Peterborough, NH and the Monad-nock Region

Information and sharing of business markets, business activity impacts to local community, charitable giving

Use of facility, plant tours, job shad-owing, employment opportunities, employee involvement in community affairs

As requested by organization, employee volunteering

Results of meetings, letters of rec-ognition and thanks, networking

Customers* Aerospace customers

Procurement of products at a fair and competitive price

Direct interactions, requests for quotes/proposals, facility visits and audits

Daily Facility visits, letters, emails, phone conversations, awards

Suppliers* Supply of products & services at a fair and competitive price, Green procure-ment standards

Direct interactions, facility visits and audits, $ spent by commodity

Daily Facility visits, mentoring programs, letters, emails, best practice shar-ing, phone conversations

*Specific information about our suppliers and customers is confidential.

CharT of sTakeholders


overview of nhbb

New Hampshire Ball Bearings, Inc. (NHBB) is one of the world’s leading manufacturers of preci-sion bearings and bearing products. Founded in 1946 in a wooden warehouse on the banks of the Contoocook River in Peterborough, New Hamp-shire, the company now operates almost one million square feet of manufacturing space at three state-of-the-art facilities in New Hampshire and California, and employs more than 1,200 people. NHBB designs and manufactures a wide array of bearings for custom applications and enjoys revenues of approxi-mately $150 million.

NHBB is a subsidiary of Minebea Co., Ltd.’s North American operations, NMB (USA), Inc. Mine-bea Co., Ltd. was established in 1951 as Japan’s first specialized manufacturer of miniature ball bearings. Today, the company is the world’s leading compre-hensive manufacturer of miniature ball bearings and high-precision components, supplying customers worldwide in the information and telecommunica-tions equipment, aerospace, automotive, medical and household electrical appliances industries. As of March 31, 2007, the Minebea Group encompassed 43 subsidiaries and affiliates in 13 countries. The Group maintains 28 plants and 43 sales offices and employs a total of 49,563 people.

NHBB owns and operates three separate facili-ties in the United States: Astro Division, Laconia, NH; HiTech Division, Peterborough, NH; and Preci-sion Division, Chatsworth, CA.

New Hampshire Ball Bearings, Inc. manufac-

tures precision bearing products for commercial and military aircraft, high tech. industrial products, medical and dental instruments, and many other high value applications. Some specific examples include airframes, gas turbine engines, fuel pumps, actuators, gearboxes, medical analyzers, dental handpiece drills, centrifuges, and other high tech. equipment.

NHBB’s products fit within three broad clas-sifications: miniature and instrument bearings (Precision Division), large ball and cylindrical roller bearings (HiTech), and rod end and plain spherical

Astro DivisionLaconia, NH

HiTech DivisionPeterborough, NH

Precision DivisionChatsworth, CA

Rod endsSphericalsLink assembliesBushingsLoader slot bearingsCustom-lined partsBearings up to 22” O.D. Next-up AssembliesMachined parts

Cylindrical roller bearings up to 300mm O.D. Ball bearings up to 300mm O.D. • Inch and metric• Single row• Duplex/Super duplex• Torque tube• Thin section

Ultra precision-ABEC 5&7:• Inch and metric• Hybrid ceramics• High speed bearings• Duplex / Super DuplexModified dimensions:• Special bore, O.D., width, custom designsMachined cages:• Phenolic, polyamide- imideMechanical assembliesMiddle Bearing SizesAirframe control bearings (MS MIL-B-7949 Qualified 27640 standard)

bearings (Astro). The chart printed below breaks down NHBB’s products into more specific catego-ries.

NHBB’s customer-base includes small to large distributors and manufacturers that participate in national and global markets. NHBB sells directly to distributors, the U.S. government, and select Origi-nal Equipment Manufacturers (OEMs) in North and South America. In Europe, NHBB sells indirectly to distributors and OEMs through NMB GmbH (NHBB Europe), a European subsidiary of Minebea Co., Ltd.

Product Mix By division


nhbb’s oTher ManufaCTuring divisions

Astro division

The Astro Division is located in Laconia, NH (Belknap Coun-ty), a small city in the center of NH. NHBB built this facility in 1971. Astro employs approxi-mately 445 people and occupies a 177,000-square-foot facility. The plant features a metallurgical laboratory, R&D/test laboratory, a custom liner assembly space, and large automated machine centers for the production of large as-semblies.

Astro manufactures spherical bearings, rod ends, sleeves, link as-semblies, slotted entry bearings and sub-assemblies, plus a wide variety of self-lubricating liner systems for standard or custom applications. Additionally, Astro possesses custom-machining capabilities on bearings in excess of 22” (560 mm) O.D.

Astro’s products are designed into many criti-cal aerospace applications, including rotary wing aircraft (helicopters), fixed wing aircraft, jet engines, missiles, actuators, landing gear, starters, tanks, satellites, space vehicles, remote piloted vehicles (RPVs), and many others.

As a supplement to its domestic products, the division markets a full line of imported NMB bearings from Karuizawa, Japan, including roller

bearing rod ends and next-up as-semblies for commercial applica-tions.

Astro is certified to the latest ISO and Aerospace standards, including ISO 9001: 2000, ISO 14001, AS9100 Rev. B, Boeing D6-82479, and NADCAP AS7102-Heat Treating, AS7101- Nonde-structive testing, and AS7108- Chemical Processing.

Astro Division, 155 Lexing-ton Drive, Laconia, NH 03246. N43°32.66682, W071°29.49 (43.544447, -71.491500)

Precision division

NHBB’s headquarters and the Precision Divi-sion are located in Chatsworth, CA, an unincorpo-rated municipality of Los Angeles County located in the San Fernando Valley. NHBB purchased the Chatsworth, CA facility in 1971 from another bear-ing manufacturer, SKF/Reed, which utilized the facility to manufacture bearings.

Precision’s facility contains approximately 110,000 sq. ft. of manufacturing space and employs over 300 people on 3+ shifts. It features advanced equipment for machining and grinding, a Class 1000 clean room where all bearing assembly takes place, and a modern R&D Test Lab. In 2000, Precision

underwent a $22 million facility renovation, which expanded the assembly area by 30% and converted all the manufacturing equipment to CNC.

The Precision Division is considered the leader in applying cost competitive volume production methods to non-standard, ultra-precision miniature and instrument bearings. It manufactures miniature and instrument ball bearings for aerospace, defense, industrial and medical/dental applications.

Precision is certified to the latest ISO and Aerospace standards, including ISO 9001: 2000, ISO 14001, AS9100 Rev. B, and NADCAP AS7102-Heat Treating.

NHBB Headquarters / Precision Division, 9700 In-dependence Ave., Chatsworth, CA 91311. N34°14.8026, W118°35.43684 (34.246710, -118.590614)


hiTeCh division: who we are

NHBB’s HiTech Division is located in Peter-borough, NH (Hillsborough County), a small town located in the rural southwest corner of the state. Its current building was built by NHBB in 1956 and served as NHBB’s corporate headquarters for 37 years. HiTech employs approximately 533 people and occupies a 240,000-square-foot facility on 35 acres. The plant features a metallurgical laboratory and testing facility, an 11,000 sq. ft. heat treat facility, a large Class 10,000 Clean Room for assembly, and precision manufacturing equipment on two floors.

The facility sits on a 25-acre parcel, half of which is occupied by buildings and parking lots. An additional 10-acre parcel is adjacent to the facil-ity and is not developed. A small unnamed brook runs across the northern part of the property and drains into a one-acre wetland at the east boundary.

HiTech designs and builds a full range of radial and angular contact bearings up to 12” O.D., metric series cylindrical roller bearings with bore sizes

from 10mm to 200mm, thin section bearings, and airframe control bearings. HiTech supplies a variety of markets, including military and civil aircraft (airframe and engine), missile systems and other defense programs.

All products are manufactured to appropriate tolerances established by unique customer require-ments, military specifications, and bearing indus-try standards as defined by the American Bearing Manufacturers Association (ABMA).

HiTech is certified to the latest ISO and Aero-space standards, including ISO 9001: 2000, ISO 14001, AS9100 Rev. B, Boeing D6-82479, and NAD-CAP AS7102-Heat Treating- including carburizing, AS7101- Nondestructive testing, and AS7108- Chem-ical Processing.

HiTech Division, 175 Jaffrey Road, Peterborough, NH 03458. N42°51.48522, W071°57.80562 (42.858087, -71.963427)

Parameters Measured Units 200� 200� 200� 200� 200�

Greenhouse Gas Emissions Tons of CO2/sales dollar 0.35 0.30 0.28 0.30 0.29

Water Consumption - Manufacturing Process Gallons (x1000) 2,428 2,258 2,122 1,843 1,946

Total Facility Water Consumption Gallons (x1000) 5,158 6,518 6,576 6,405 6,883

Non-hazardous Solid Wastes to Landfill Tons 165 181 171 163 173

Purchased Manufacturing Fluid Use Gallons (x1000) 21 20 16 14 13

MeTriCs and exaMples of perforManCe Through 2007*

*The data contained in this report may differ from data reported elsewhere. The data in this document are calculated based on our fiscal year (April to March), whereas our EPA Performance Track data is based on a calendar year.

ABout the dAtA

We report data in both absolute terms (e.g. total annual electricity use) and normalized ratios (e.g. total annual electricity use per sales dollar). We chose to normalize data against sales dollars as opposed to units of production because of variations in our production output. The bearings we manufacture vary in size from less than two inches to over twelve inches in diameter. Plus, the products we manufacture from one year to the next have evolved to larger size ball and roller bearings. Therefore, normalizing data to units of production would not elicit a meaningful comparison.

our business and The environMenT

Environmental Stewardship ........................................................................................................................................................................................ 9Energy ....................................................................................................................................................................................................................... 10Materials ................................................................................................................................................................................................................... 12Water ......................................................................................................................................................................................................................... 15


We work and live where we do because of the quality of life. As a company, we are dedicated to preserving that quality of life for ourselves, our communities, our supply chain and our customers. New Hampshire Ball Bearings promotes an ag-gressive stewardship and sustainability policy that emphasizes pollution prevention, energy efficiency, regulatory compliance and continuous improve-ment.

HiTech has a history of environmental compli-ance and maintains a robust environmental man-agement and compliance system that is certified by a third party registrar. Our compliance status is assessed every other year by our parent company, Minebea Co., Ltd. If they discover a significant finding, which is defined as any activity that is not in full compliance with environmental rules and

regulations, an action plan is created, approved and implemented to address it. The resulting actions are subsequently verified by Minebea. Our FY06 com-pliance audit did not reveal any significant findings. Our next compliance audit is scheduled for FY08.

HiTech’s responsibility for environmental awareness extends beyond our business boundaries. We take full advantage of opportunities to com-municate with our employees and local residents about their personal environmental footprints, and we work hard to provide them with information through Earth Day related activities and our own Energy Fair. Our employees are proud of their per-sonal contributions to maintaining a cleaner envi-ronment, and they are proud to work for a company that values their community.

highlights of environMentAl Activities:

• The State of New Hampshire developed a voluntary environmental leadership program for all State businesses. HiTech was a stakeholder to the development of the program and currently sits on the program’s steering committee.

• We have been an active member of the State’s Adopt-A-Highway program since 1998. We are charged with cleaning up a 2 mile section of highway adjacent to our facility. In FY07, we surpassed a milestone. Since entering the program, we have picked up over 1,000 bags of trash and logged over 20,000 volunteer-hours cleaning up our section of the highway.

goAls And oBjectives

Each year we establish goals and objectives to improve our environmental performance. At the highest level, our objectives include:

• The reduction of waste and significant adverse impacts caused by new products or processes; • The reduction and elimination of pollutants which may enter the environment; and • The promotion of environmental awareness among our employees and the community.

environMenTal sTewardship

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division �0

energy consuMPtion:

Since 2004, shipments have increased by 14% while total energy use has increased by only 8%. Even though total electricity use is up slightly, the factory consumes energy more efficiently (see chart “Electricity Use Per Sales Dollar”). Going forward, our goal is to reduce electricity consumption by 10% from FY04 levels (normalized to sales dollars).

A major shift in the product offering occurred in the 2004 fiscal year. Because it better represents the product-mix going forward, we established FY06 as an energy-use benchmark.

In our quest to reduce energy consumption even further, we shall look to the next generation of energy efficient products, integrating them into business operations once they become viable. One near-term possibility is the use of LED lighting in all the office areas. Advancements in LED technology have increased light output, making them more suit-able for general illumination.

lighting retrofit:

In FY06, we upgraded the lighting in the manu-facturing areas with a more energy efficient system. We replaced 600 metal halide fixtures with the same number of compact fluorescent lights and installed a sophisticated lighting control system (LCS). The

energy efficient, compact fluorescent lamps produce more light that is of better quality—it more closely matches sunlight. Because fluorescent fixtures do not produce as much heat as metal halide fixtures, they lessen energy use even further by lowering the cooling load. The lighting control system programs each fixture individually, enabling us to create countless lighting zones and schemes. Such control lowers energy use by providing light only where and when it is needed. With the new system, HiTech expects to save close to $102,400 a year in electricity costs. Upon completion, the project qualified for a rebate from Public Service Company of New Hamp-shire (PSNH) worth $80,000.

Total Electricity Use

10,000

11,875

13,750

15,625

17,500

20072006200520042003

kWh(x1,000)

Fiscal Year

14,661 15,393 15,616 15,840 15,468

Electricity Use Per Sales Dollar

0.210

0.228

0.245

0.263

0.280

20072006200520042003

kWh

Fiscal Year

0.268 0.253 0.240 0.235 0.219

Target

energy

“In our 19 plus years working with NHBB, we have seen NHBB take a leadership position when it comes to reducing their energy use. Not only are we excited to stand with them as we experience the cutting edge technologies they install, we also increase our own knowledge in this field. That increase in knowledge also benefits our other customers that we serve.”

-Steven Michaud, President, Monadnock Cooling Systems

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division ��

Gross Greenhouse Gas Emissions

0

2000

4000

6000

8000

10000

20072006200520042003

Metric Tons

Fiscal Year

8,753 8,209 8,353 9,163 9,177

Normalized Greenhouse Gas Emissions

0.000

0.0571

0.114

0.172

0.229

0.286

0.343

0.400

20072006200520042003

Lbs. Per Sales Dollar

Fiscal Year

0.35 0.30 0.28 0.30 0.29

greenhouse gAs eMissions (ghg):

Greenhouse Gas emissions are a consequence of energy production and use, including both fuel and electricity consumption. Our business has grown so much recently that, even with gains in energy ef-ficiency, GHG emissions have risen. Going forward, our goal is to reduce greenhouse gas emissions by 5% from FY06 levels.

As a member of EPA’s Performance Track Pro-gram, we have joined USEPA New England’s Energy Challenge. NHBB, along with other New England participants, is committed to reducing greenhouse gas emissions by 5% for the region. Late in 2008, we are converting our heating fuel source over to wood pellets from #2 fuel oil. Unlike fuel oil, wood pellets are carbon neutral, which means its net carbon emis-sions are zero.

fyi: HiTech’s emissions of criteria pollutants (VOCs, NOx, CO, ODC, PM) are well below the regulatory threshold.

energy ConT.


Fluid Use Per Sales Dollar

0.000100

0.000167

0.000233

0.000300

0.000367

0.000433

0.000500

20072006200520042003

Gal.

Fiscal Year

0.00039 0.00032 0.00024 0.00022 0.00019

Target

MAnufActuring fluid use:

The reduction in use of manufacturing fluids demonstrates our commitment to doing more while using less, all while maintaining the highest level of product quality standards. Our manufactur-ing process consumes large quantities of fluids in the form of cutting oils, water-based coolants, rust preventatives and solvents. Despite a significant increase in business, fluid use has decreased every year since FY04. The reduction is due to our existing fluid management programs and to a recent focus spearheaded by our Total Productive Maintenance progam that closely monitors fluid consumption.

solvents:

The use of solvents is limited to cleaning our fi-nal assembled products. Total solvent use increased slightly in FY07 after decreasing every year since FY04. Our goal is to reuse the solvents we purchase at least three times (150%) while maintaining strict cleanliness and quality standards.

We reclaim and reuse a significant percentage of these cleaning agents through our on-site solvent reclamation program. Beyond the environmental benefits of such a program, reusing solvents enables us to reduce our costs—we have to buy less solvent each year— and cut back on the amount of waste we produce. The waste generated from the recy-cling program is negligible when compared to not recycling.

fyi: None of our solvents contain volatile organic compounds (VOCs) that contribute to smog formation.

Solvent Use

Gal.

Fiscal Year

2,345

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Recycled

Purchased

20072006200520042003

2,145 2,805 2,585 1,760 2,145

3,400 3,760 3,665 3,180 2,960

Solvent Use

Gal.

Fiscal Year

2,345

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Recycled

Purchased

20072006200520042003

2,145 2,805 2,585 1,760 2,145

3,400 3,760 3,665 3,180 2,960

Purchased Manufacturing Fluid Use

Gal.

Fiscal Year

0

5,000

10,000

15,000

20,000Solvents

Rust Preventatives

Water-Based Coolants

Cutting Oils

20072006200520042003

MaTerials

Percentage of Solvents Recycled

Percentage

Fiscal Year

2,345

100

120

140

160

180

200

Actual

Goal

20072006200520042003

2,145 2,805 2,585 1,760 2,145


solid WAstes:

Total solid waste generation has remained relatively flat since FY04. We have been focusing on reducing the generation of scrap metal, which is a recyclable waste and is tied to a business objective relating to our scrap reduction initiative.

Currently, we are targeting trash and non-hazardous industrial wastes sent to the landfill for further reductions. In order to set reasonable goals, we have spent considerable time and energy under-standing the processes that contribute to these waste streams. Certain contributors are directly related to

the increase in shipments and production processes. As a result of this emphasis, we have reduced this waste stream by 10% from FY04.

In 2000, we reached a milestone for hazard-ous waste by generating under 20 tons, a level we have maintained to this day. This result is achieved through a rigorous materials review process, which ensures that we maintain focus on this pollution prevention practice. All hazardous wastes are sent off-site to a licensed and permitted facility for ulti-mate treatment and proper disposal.

Tons of Solid Waste Generated

Tons

Fiscal Year

2,345

0

200

400

600

800

1000

1200

Landfilled

Recycled

20072006200520042003

645.9 700.6 904.3 749.8 724.6

164.9181.3

174.1

163.5 173.4

Solid Waste Generated Per Sales

0.010

0.016

0.022

0.028

0.034

0.040

20072006200520042003

Lbs.

Fiscal Year

0.030 0.029 0.034 0.027 0.026

Target

Hazardous Waste Generation

0

5

10

15

20

25

20072006200520042003

Metric Tons

Fiscal Year

8.5 10.6 16 8.5 8.3

Target

MaTerials ConT.

“By eliminating hazardous materials, we continue to reduce the hazardous waste generated in addition to decreasing exposure to health and safety hazards; this is done through the new material review program. As a relatively new employee, I find it rewarding to run the New Material Review Program and create a better work environment for all NHBB employees as well as creating environmental sustainability.”

~Kim VecchioneNHBB Chemical Engineer


MaTerials ConT.

Items Purchased Containing Recycled Content

0

50

100

150

200

250

20072006200520042003

# Items

Fiscal Year

87 116 130 153 204

Buy recycled ProgrAM:

The purchasing department has an aggressive Buy-Recycled program for packaging supplies, sta-tionary, business cards, office products, paper towels and many other commodities. We have added between 15 and 30 new products to the program every year since FY04. When purchasing recycled products, we weigh the amount of recycled content against a product’s performance criteria. Copier pa-per rated at 30% post consumer waste enables us to print on two sides, a feature of many of our printers and copiers. The evaluation of products contain-ing recycled content is ongoing, so the list should continue growing from year to year.

fyi:NHBB did not experience any chemical, oil or fuel spills in FY07, nor have we received any complaints, notifications or concerns about odor, dust, noise or vibration resulting from our manufacturing operations. Regardless, NHBB is prepared to address such instances in a proper and timely fashion. We have a formal procedure in place to ensure that incidents and concerns are fully addressed with responses made to the interested party.


WAter use And conservAtion

The consumption of water within the facility includes non-process uses– bathrooms, kitchen, water fountains, etc.—and production-related activities. During the past few years, total water use has risen as a result of the continual increase in our workforce. Despite the growth, however, water-use efficiency has improved when compared against the increase in production (see chart: “Water Used Per Sales Dollar”). In FY06 and FY07, we reduced water use by completing two important water-saving proj-ects. In one project, we improved the compressed air system cooling towers, making them more efficient. In the second project, which is an ongoing initia-tive, we are installing water-saving fixtures in the bathrooms.

Programs for process water conservation are ongoing, as well. In the past we have decreased pro-cess water consumption by prolonging the life cycle of wash baths, reducing the flow of counter flowing rinses, installing cycle control buttons, and recycling waste waters for reuse.

Going forward, our goal is to reduce water con-sumption by 15% compared to FY06 levels (normal-ized to sales dollars). Overall, increased efficiency benefits the community because it reduces the need to draw potable water from the town’s water supply.

Total Plant Water Use

0

1000

2000

3000

4000

5000

6000

7000

8000

20072006200520042003

Gal.

Fiscal Year

5,518 6,518 6,576 6,405 6,883

Water Use Per Sales Dollar

0.010

0.038

0.066

0.094

0.122

0.150

20072006200520042003

Gal.

Fiscal Year

0.101 0.107 0.101 0.095 0.097

target

fyi:Periodic examinations of storm water runoff from the building and parking lot have yet to uncover the presence of odor, oil sheen, floating solids and turbidity. If storm water tests were to reveal any of these abnormalities, we would immediately investigate and correct the problem.

waTer

south Well Project:

As part of the ongoing South Well project, we have cleaned in excess of 1.5 billion gallons of groundwater over a twelve year period. The restora-tion of the resource as a drinking water supply is the project’s ultimate objective. Recently, we under-took an extensive review and collected additional data with the goal of understanding more clearly the remedial task ahead of us. With input from the Town of Peterborough and the collective agreement between HiTech, USEPA and NHDES, we plan to ex-pand our remedial activities within the next 5 years in order to accelerate the clean-up.

fyi:Our permit for industrial waste water discharges is issued by the Town of Peterborough. We monitor and control discharges to the town’s wastewater treatment facility to prevent the release of high levels of metals, which could impair the efficient operation of the facility.

our eMployees, our CoMMuniTyEmployment.............................................................................................................................................................................................................. 17Safety ........................................................................................................................................................................................................................ 19Supporting Our Community .................................................................................................................................................................................... 20


Benefits PAckAges:

We provide employee benefits well beyond the legally mandated minimum. Our programs include:

• Medical and dental insurance • 401K retirement plan with a 50% company match up to 6% • Company-funded pension plan • Company-paid short and long term disability • Company-subsidized long term care insurance • Flexible spending accounts • Employee Assistance Program (EAP) • Incentive bonus plan • Attendance awards • Tuition assistance and reimbursement• Company paid life insurance• 12 Company paid holidays•Company subsidized uniform program

higher educAtion:

NHBB encourages staff to continue their educa-tion from accredited universities and colleges by offering 100% tuition reimbursement (subject to IRS tax code limitations) for job related courses with prior course approval. In FY07, five employees took advantage of the tuition assistance and reim-bursement benefit. All five are enrolled in degree programs (four bachelors, one MBA).

In addition to participation in our Tuition Reim-bursement Program, employees are actively encour-

aged to attend a variety of conferences, seminars and skill building classes offered both internally and externally. For example, a curriculum of technical training was created jointly with Keene Community Education. Approximately 41 employees attended Shop Math, Blueprint Reading and Geometric Tol-erancing classes on a voluntary basis. While classes were held primarily beyond these employees’ nor-mal work day, they were paid wages to attend and in many cases were paid at the overtime rate. NHBB also applied for and was approved to receive 100% matching grant monies through the New Hamp-shire Workforce Opportunity Council for organizing and delivering this training. Lastly, NHBB spent over $21,000 sending employees to various seminars

and conferences on a variety of topics including renewable energy, export administration, electrician licensing updates, computer training, and hazard-ous waste coordinator.

Work-life BAlAnce:

Employees at HiTech are provided ample leadership and continual training along with op-portunities for work-life balancing. HiTech cur-rently maintains a management to non-management compensation ratio of about 2.1 to 1. Turnover in non-leadership positions was 15.2%, which was up from FY05, our first year measuring this indica-tor. Reducing turnover has been a major initiative for the division. This initiative includes several elements, such as increased compensation, leader-ship development, and flexible work schedules in some of our component fabrication areas where we have experienced the highest turnover rates. These programs were piloted over a 90 day period to give employees the opportunity to “test it out” before making final commitments. They have proven to be very successful both for the employees and the divi-sion. In the future, we plan to improve the employee pre-hire screening process, develop an aptitude test, and create forums to increase employee engagement and involvement.

Newly hired staff is provided the opportunity to attend a full one-day orientation program within their first weeks of employment which is focused

eMployees


on making a connection between the employee and the company. Ongoing training is conducted regularly and includes topics such as Basic Math, Drawing Interpretation and Material Knowledge. These modules are designed to build upon employ-ees’ competency levels. In FY07, 130 new employees attended the orientation program, while a total of 447 employees were trained in various technical modules. In addition to employee training, leader-ship skill development is ongoing.

Mandatory overtime is rarely imposed on employees. In addition, HiTech attempts to help our employees balance work and home by offering non-traditional work hours that provide better quality of life. For instance, we have created weekly work schedules comprised of four 10-hour days or three 12-hour days, resulting in longer strings of days off. HiTech currently offers four different shift arrange-ments to accommodate most employees’ work-life needs.

huMAn rights:

HiTech seeks to create a tolerant and safe work environment for every employee. We have zero tolerance for harassment based on race, religion, ethnicity, gender and sexual preference. HiTech also has a zero tolerance policy for any retaliation, and our company policy firmly states that retaliation is prohibited and is punishable with severe disci-plinary action. HiTech has adopted strict company policies that cover applicable laws, chain of com-mand, management and employee responsibilities, and procedures for conflict resolution. Through our new employee orientation program and periodic refresher training sessions, we ensure compliance with policies and laws that address human rights issues.

We have a formal Employee Conduct policy that outlines expected behavior, compliance proce-dures and problem-resolution guidelines. Whenever any type of situation arises, the HR Manager con-ducts a formal investigation, and any disciplinary action is discussed between the HR Manager and the Department Manager. Our Affirmative Action Plan and policy dictate responsibilities in hiring and employment practices that include non-discrimina-tion regardless of race, religion, ethnicity, gender or sexual orientation. These policies are also outlined in the employee handbook, which is given to each new employee on their first day of employment.

eMployees ConT.

“Through the education program, employees can receive an education at little or no cost to themselves. The program pays for not only tuition, but for other costs associated with their education, including books and student fees. During my studies, I was able to find resources within my department that helped me complete my assignments. This was an invaluable way to learn the material covered in class and link it to my work experience. NHBB was supportive in other ways, too. They allowed me the flexibility with my work schedule so that I could leave work early enough to make it to class on time.”

~Laura Draeger

Work-life BAlAnce cont.:


coMPliAnce:

HiTech complies with all OSHA rules and record-keeping requirements that apply to our business. Topics in HiTech’s overall Safety Program include everything from Hearing Conservation, Blood-borne Pathogen Training, and Emergency Response and Notification Training to CPR and First Aid, Electrical Safety, Hazard Communication, Machine Guarding and Personal Protective Equip-ment. Our Integrated Contingency Plan outlines the action-steps and reporting requirements that are necessary for responding to hazardous materials releases, natural disasters, civil disturbances and violence in the workplace.

fyi: In FY07 our workers compensation claims and medical expenses totaled approximately $4.7M.

Active loss Prevention:

HiTech maintains an active Joint Loss Preven-tion and Safety Committee whose charge is the con¬tinual improvement in the safety performance of our operation. All accidents and injuries are reported and reviewed monthly. The reviews take a proactive look at how the injury can be prevented in the future.

HiTech’s incident rates consistently remain at or below levels in the general metal fabrication in-dustry and the aerospace parts fabrication industry. This increase in hours worked contributes favorably to the result.

incident rAte

Year #OSHA Recordable Injuries/Illnesses

Total # Hrs. Worked

NHBB Incidence Rate

2003 22 935,682 4.7

2004 18 1,059,739 3.4

2005 20 1,157,591 3.4

2006 15 1,045,024 2.9

2007 17 1,385,409 2.5

eMployee safeTy

fyi: In FY07, no fines were levied against the company for non compliance related to federal state or local environmental regulations. Furthermore, there were no instances of non-compliance with regulations or corporate policies concerning product quality, safety or labeling.

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division 20

educAtion:

HiTech supports education at every level— from elementary schools through post secondary institutions— by offering mentoring, job shadowing, apprenticeship and internship programs.

volunteering:

We actively encourage our employees to volun-teer in the community, and many employees have set a good example for others through their active support of many local non-profit groups. HiTech employees serve on the boards of local charitable organizations, such as Monadnock Day Care, the Family Center, Monadnock Worksource and the Ro-tary Club. Additionally, HiTech is actively involved in supporting the Greater Peterborough Chamber of Commerce through board and committee involve-ment.

chAritABle giving And the united WAy:

HiTech also supports charitable giving to our community, both through direct and in-kind donations. In FY07, contributions from our facil-ity to the local community were approximately $36,000, including the United Way. Donations go to organizations such as the Monadnock Community Hospital, the chamber of commerce, and other local charities. HiTech also donates the use of its facility to local non-profit groups for community meetings and fund-raising events.

Our annual United Way drive takes place every year during the month of October. All employees attend a meeting to collect information about the services the United Way offers. Employees have the opportunity to contribute through payroll deduc-tions. For each dollar an employee contributes, HiTech matches that dollar 100% up to $24,000.

helPing eAch other:

Each year at Christmas we select an employee who is in need of financial support. Employees participate in a company-wide collection. The total collection is then presented to the employee to use as needed for the holiday season.

supporTing our CoMMuniTy

The healTh of our business

An Ecnomic Engine for the Community ................................................................................................................................................................. 22

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division 22

One of the most significant contributions NHBB can make to our community is to provide a stable economic base. Having been a part of the Monad-nock Region for six decades, we are proud of our long-standing contributions to the economic well-being of our community, and we hope to remain a source of strength as the town continues to grow.

HiTech continues to be a vital source of new jobs. In FY07, our local payroll was approximately

$20,000,000, and overall employment increased to over 573 employees (342 males, 231 females).

As a taxpayer, HiTech has been a long-stand-ing asset to the community. The company does not receive any subsidies or government assisted financing. Plus, our FY07 tax payment to the Town of Peterborough totaled in excess of $127,000.

HiTech is dedicated to the on-time delivery of quality products. We maintain current certifications,

including ISO 9001, IS0 14001, Boeing D6-82479 and AS9100 Rev. B. Additionally, HiTech is Nadcap ac-credited for special production processes.

These and other developments are largely due to HiTech’s success in maintaining a strong position within the bearing marketplace. During the three-year period between fiscal years 2004 and 2007, HiTech realized a 14% increase in shipments.

an eConoMiC engine for The CoMMuniTy

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division 2�

Total population: ......................................................................................................................................................... 6,073 Population density...................................................................................................... 159.8 persons/square mile of landLand area (sq miles) ........................................................................................................................................................38 Inland water area (sq miles) .............................................................................................................................................0 Data is from the 2005 census, the most recent data available.Data found at http:/www.nh.gov/nhes/elmi/htmlprofiles/peterborough/html.

Within A 10 Mile Buffer Around the fAcility +

Total population ........................................................................................................................................................30,960 Population density.................................................................................................... 101.64 persons/square mile of land

Within A 1 Mile Buffer Around the fAcility +

Total population .............................................................................................................................................................452 Population density.................................................................................................... 144.38 persons/square mile of land +buffer data around the facility is from USEPA Environmental Justice Geographic Assessment Tool

criteriA Air PollutAnts - dAtA froM usePA Air dAtA MAPs for nonAttAinMent AreAs

Air pollutant ......................................................................................................................HiTech in nonattainment area* Ozone (8 hour) ............................................................................................................................................................... yesOzone (1 hour) ................................................................................................................................................................ no Carbon Monoxide ........................................................................................................................................................... no Nitrogen dioxide .............................................................................................................................................................. no Sulfur dioxide ................................................................................................................................................................... no Lead (particulates) ......................................................................................................................................................... no Particulate (<2.5 micrometers) ....................................................................................................................................... no Particulate (<10 micrometers) ........................................................................................................................................ no * A nonattainment area is an area (in our case, Hillsborough County) where air pollution levels exceed national air quality standards established by the Clean Air Act.

Census daTa, Town of peTerborough, nh

Facility Reporting Project • Sustainability Report • 2007New Hampshire Ball Bearings, Inc. • HiTech Division 2�

Facility OverviewExecutive Summary .......1

Facility ProfileFOV.1 ………………………1FOV.2 ………………………3FOV.3 ………………………5FOV.4 ………………………5FOV.5 ………………………5FOV.6 ……………………....5FOV.7 ………………………5FOV.8 …………………6 & 7

Contact informationFOV.9 ………………………1

Report ScopeFOV.10 ..............................1 FOV.11 ..............................1FOV.12 ..........not reportedFOV.13 ..........not reportedFOV.14 ..............................1

Organizational InformationFOV.15 ..............................1FOV.16 ............................. .9FOV.17 ..............................9

Environmental Indicators

MaterialsFEN.1 ..............................12FEN.2 ............not reported

EnergyFEN.3 ..............................10

Water

FEN.4 ..............................15FEN.5 ............not reportedFEN.6 ............not reportedFEN.7 ..............................15

Biodiversity & Natural HabitatsFEN.8 ............not reportedFEN.9 ............not reported

Emissions, Effluents & WasteFEN.10 ............................11FEN.11 ..........not reportedFEN.12 ..........not reportedFEN.13 ............................12FEN.14 ............................13FEN.15 ............................15FEN.16 ..........not reportedFEN.17 ..........not reported

ComplianceFEN.18 ..............................9FEN.19 ............................13

Nuisance & Quality of LifeFEN.20 ............................13

Social Indicators

Labor Practices & Decent Work

EmploymentFLA.1 ..............................13FLA.2 ..............................17FLA.3 ..............................17FLA.4 ............not reportedFLA.5 ..............................18FLA.6 ..............................17

Health & SafetyFLA.7 ..............................18FLA.8 ..............................19FLA.9 ............not reportedFLA.10 ............................12FLA.11 ............................19FLA.12 ..........not reportedFLA.13 ..........not reportedFLA.14 ............................19

Training & EducationFLA.15 ............................17FLA.16 ............................17

Diversity & OpportunityFLA.17 ............................18FLA.18 ............................18FLA.19 ..........not reported

Human RightsFHR.1 .............................18FHR.2 .............................18FHR.3 ...........not reportedFHR.4 ...........not reportedFHR.5 ...........not reportedFHR.6 .............................18FHR.7 .............................18FHR.8 ...........not reportedFHR.9 .............................18

SocietyFSO.1 ..............................13FSO.2 ................................5FSO.3 ............not reportedFSO.4 ..............................13

Economic Indicators

Payroll & Local Procure-mentFEC.1 ............not reportedFEC.2 ..............................22

Taxes & SubsidiesFEC.3 ..............................22FEC.4 ..............................22

DonationsFEC.5 ..............................20FEC.6 ............not reported

Index of Indicators

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