the source - september 2012

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A monthly newsletter for members of the Electronic Components Industry Association INSIDE THIS ISSUE : TO THE POINT P2 AFDEC STATISTICS P8 EVENTS P12 CONTACTS P12 SEPTEMBER 2012 INSIDE ECIA Washington Alert 3 Executive Conference 4 Workplace Injuries 5 Conflict Minerals 6 Fall Engineering Summit 7 Texas Chapter Meeting 7 ECIA Components Council (ECC) 9 Mefford Hitting Facility 10 Dental Work Discounts 10 University News 10 CARTS International 2013 11 Electronics Choice Industry Awards 11 A New York biotech company has developed anti-counterfeiting technology that uses DNA to identify fake parts and prevent their proliferation in the electronics supply chain. James Hayward, CEO of Applied DNA Sciences in Stony Brook, N.Y., spoke recently to the ECIA Electronic Components Council and explained how the technology works. “What we do is utilize DNA as a mark of originality to indicate source. The mark we make is engineered from plant-derived genomes,” said Hayward. Parts would be marked with the botanical DNA when the components are manufactured. There are several ways to mark the parts. “A simple, obvious way is to include the DNA in the ink that is used to label the chip. Those inks are pretty resolute,” he said. “The application is remarkable because DNA is more readily detected than any other molecule,” said Hayward. “It is so sensitive we can detect it in as little as a single molecule which means the quantity of DNA that you have to put on anything to mark it is infinitesimally small. So small that it almost has no impact on manufacturing process,” he said. Once a part is marked with DNA, the DNA can be detected in several ways. “We have a rapid screening method that uses an inexpensive handheld device that screens chips to verify that they have been DNA marked,” said Hayward. However, that method does not provide “forensic quality,” he said. “Forensic quality assertion, which is absolute, requires a laboratory test,” he said. A suspect part would have to be swabbed and the swab would have to be sent to a laboratory for analysis,” which would prove the authenticity of a part, he said. Very Reliable Hayward said the technology is highly reliable. “The error frequency is one in hundreds of trillions meaning that false positives essentially don’t take place,” he said. Use of DNA marking would make life harder for counterfeiters. A counterfeiter could try to remove the ink, but that obviously means the part has been tampered with and “would no longer be considered an original. If the chip is New DNA Technology Could Detect Counterfeit Parts By James Carbone continued on page 3 James Hayward, Applied DNA Sciences

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Page 1: The Source - September 2012

A monthly newsletter for members of the Electronic Components Industry Association

I N S I D E T H I S I S S U E : T O T H E P O I N T P 2 A F D E C S TAT I S T I C S P 8 E V E N T S P 1 2 C O N TA C T S P 1 2

S E P T E M B E R 2 0 1 2

INSIDEECIA Washington Alert 3Executive Conference 4Workplace Injuries 5Conflict Minerals 6 Fall Engineering Summit 7 Texas Chapter Meeting 7ECIA Components Council (ECC) 9 Mefford Hitting Facility 10Dental Work Discounts 10University News 10CARTS International 2013 11Electronics Choice Industry

Awards 11

A New York biotech company has developed anti-counterfeiting technology that uses DNA to identify fake parts and prevent their proliferation in the electronics supply chain.

James Hayward, CEO of Applied DNA Sciences in Stony Brook, N.Y., spoke recently to the ECIA Electronic Components Council and explained how the technology works.

“What we do is utilize DNA as a mark of originality to indicate source. The mark we make is engineered from plant-derived genomes,” said Hayward.

Parts would be marked with the botanical DNA when the components are manufactured. There are several ways to mark the parts. “A simple, obvious way is to include the DNA in the ink that is used to label the chip. Those inks are pretty resolute,” he said.

“The application is remarkable because DNA is more readily detected than any other molecule,” said Hayward. “It is so sensitive we can detect it in as little as a single molecule which means the quantity of DNA that you have to put on anything to mark it is infinitesimally small. So small that it almost has no impact on manufacturing process,” he said.

Once a part is marked with DNA, the DNA can be detected in several ways. “We have a rapid screening method that uses an inexpensive handheld device that screens chips to verify that they have been DNA marked,” said Hayward. However, that method does not provide “forensic quality,” he said.

“Forensic quality assertion, which is absolute, requires a laboratory test,” he said. A suspect part would have

to be swabbed and the swab would have to be sent to a laboratory for analysis,” which would prove the authenticity of a part, he said.

Very Reliable

Hayward said the technology is highly reliable. “The error frequency is one in hundreds of trillions meaning that false positives essentially don’t take place,” he said.

Use of DNA marking would make life harder for counterfeiters. A counterfeiter could try to remove the ink, but that obviously means the part has been tampered with and “would no longer be considered an original. If the chip is

N e w D N A Te c h n o l o g y C o u l d D e t e c t C o u n t e r f e i t P a r t s

By James Carbone

→cont inued on page 3

James Hayward, Applied DNA Sciences

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To T h e P o i n t : S e v e r a l D e v e l o p m e n t s I n W a s h i n g t o n D . C . I m p a c t T h e E l e c t r o n i c C o m p o n e n t s I n d u s t r y

It has been a busy time in

Washington, D.C., this summer.

Several developments specifically

impact the electronic components

industry—the issuance of conflict

minerals regulations and a proposed

update of the tariffs on information

and communication technology

goods. ECIA has been following both

developments. You can find more

detailed information about both items

in separate articles in this newsletter

as well as on the association website,

www.eciaonline.org.

Federal governmental regulatory agencies have been active in

developing regulations to implement the Affordable Care Act after

the Supreme Court’s decision on the constitutionality of the health

care law. In late May, the IRS issued Notice 2012-40 to provide

guidance to employers on the implementation of the $2,500 limit

on salary reduction contributions to health flexible spending

accounts (FSAs). The limitation goes into effect for “taxable years”

beginning after December 31, 2012.

Employers may adopt the required amendments to reflect the

$2,500 limit at any time through the end of calendar year 2014,

but the limit must be $2,500 throughout 2013. The limit will be

adjusted annually for inflation after December 31, 2013.

The $2,500 limit does not apply to employer non-elective

contributions, sometimes called “flex credits.” However, if the

employee has the option to take the flex credit as cash or a taxable

benefit, then those employer-provided flex credits do count toward

the $2,500 limit.

The Notice states the following important clarification:

“The statute imposes the $2,500 limit only on salary reduction

contributions to a health FSA in a cafeteria plan and does not

limit the amount permitted for reimbursement under other

employer-provided coverage, such as employee salary reduction

contributions to an FSA for dependent care assistance or adoption

care assistance. The limit also does not apply to salary reduction

contributions to a cafeteria plan that are used to pay an employee’s

share of health coverage premiums (or the corresponding

employee share under a self-insured employer-sponsored health

plan) -- sometimes referred to as “premium conversion” salary

reduction contributions -- nor does it apply to salary reduction

or any other contributions to a health savings account (HSA)

or to amounts made available by an employer under a health

reimbursement arrangement (HRA).”

One of the transition issues addressed by the IRS in the Notice is

the “use-it-or-lose-it-by-year-end” rule. Some plans contain a “grace

period” provision that extends the use-it-or-lose-it period to March

15th of the following year. The IRS has indicated that any unused

portion of the $2,500 would not count toward the limitation in the

subsequent year.

The Notice also states that if two spouses are eligible to elect

salary reduction contributions to an FSA, each spouse may elect

to make salary reduction contributions of up to $2,500, even if

both participate in the same health FSA sponsored by the same

employer.

Another government agency, the National Labor Relations Board

(NLRB), has been active in several fronts, including attempts to

restrict management rights in areas such as social media policies,

confidentiality rules and at-will statements in employee handbooks.

The NLRB has so far been addressing this issue on a case-by-case

basis rather than the rulemaking process. Non-union employers

should be alert to these efforts.

R o b i n G r a yE C I A P r e s i d e n t & C E O

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blacktopped it would cover the DNA and would also be detected as counterfeit,” said Hayward.

Time and date stamps can also be embedded in the DNA so a recycled part being sold as a new one can be identified as a part that has previously been used.

“The technology is capable of detecting and preventing counterfeiting in virtually every scenario that has come up across to date,” said Hayward.

Use of DNA marking is gaining some traction. “We have had two programs that were funded by Defense Logistics Agency,” said Hayward.

He says interest in DNA marking has been strong by semiconductor manufacturers. “We are busy keeping up with RFQs,” he said. Some chip companies are using the technology.

Hayward said the technology has been used in other industries in Europe. For instance it is used in England to protect cash as it is transported between financial institutions.

In about 45 cases where there have been incidents of theft, there has been a 100% conviction rate because of the use of the technology, according to Hayward.

Hayward did not say how much the use of DNA marking costs. “It depends on the volume of chips being marked and the system in place at the manufacturer,” he said. “I would not consider it to be a major investment. I think in terms of returns of investment the threat right now that counterfeit chips could impose,” Hayward said.

Digital DNA Documents

Barney Martin, vice president of industry practices with the ECIA, attended the presentation. He noted the ECIA was not supportive of parts verification as a way to stop the spread of counterfeit parts since the no cost method of buying from authorized sources negates the risk of conterfeit pats.

However, Hayward also spoke about digital DNA concerning component documentation which can also be used to prevent the spread of counterfeit parts.

Digital DNA also uses a botanical DNA marker which is encrypted within a secure quick read (QR) code within the ink used to digitally print the code.

The resulting pattern or “rune” can be scanned via an Apple-approved app with an iPhone to assure originality. The scan checks in wirelessly with a secure database and displays the resulting analysis back on the phone screen.

Tracking information is fed into “tunable algorithms” that use pattern recognition to identify supply-chain risks including counterfeits.

Martin said ECIA members attending the presentation were “very enthusiastic about the topic. “I think we are going to have to wait and see how it plays out especially concerning digital DNA.”

→cont inued from page 1N e w D N A Te c h n o l o g y

ECIA Washington Alert on Tariffs

ECIA has been notified that the U.S. International Trade Commission (ITC) has begun proceedings to review and update its list of information and communications technology (ICT) goods, which includes computers, semiconductors, telecommunications, software and other electronic products that are subject to the Information Technology Agreement (ITA) regarding trade tariffs. A draft list of products has been prepared that could be added to coverage by the ITA, including products that were not covered when the initial ITA was adopted in 1996 and products that have been developed since then. Products added to the ITA coverage would receive duty-free treatment on a reciprocal basis with other countries.

The ITC is seeking information by interested parties that: “1) indicate both the ITC and non-ITC purposes for which each product on the attached list is used; and 2) identify the products that U.S. industry and other interested parties view as import-sensitive.” The deadline for submitting this information to the ITC is September 6.

ECIA HAS PROVIDED A PAGE ON ITS WEBSITE, www.eciaonline.org, THAT CONTAINS THE LIST AND BACKGROUND INFORMATION.

In addition to the above information request, the ITC will conduct hearings on November 8 as part of its investigation to identify for each of the products on the list: “(1) tariffs in major markets; (2) major producing countries; (3) leading U.S. export markets; and (4) leading sources of U.S. imports.”

Barney Martin, ECIA

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G o r d o n H u n t e r , L i t t e l f u s e , W i l l P r e s e n t a t E C I A 2 0 1 2 E x e c u t i v e C o n f e r e n c e “ I n f o r m a t i o n + A p p l i c a t i o n = I n n o v a t i o n ”O c t o b e r 2 8 - 3 0 , C h i c a g o

The Electronic Components Industry Association (ECIA) looks forward to a presentation by Gordon Hunter at the 2012 Executive Conference. Mr. Hunter is Chairman, President and Chief Executive Officer of Littelfuse, Inc., a global electronics manufacturer. As an industry veteran, he will share a bit of the Littelfuse story and his long term vision of the industry’s future. Hunter’s presentation will also focus on how important it is to be vigilant about change, and to incorporate that vigilance into the daily execution toward short-term goals. He will also give a historical perspective to the “speed to market” race - how that has changed and what he expects it to mean tomorrow.

ECIA’s annual Executive Conference is a senior executive’s summit and the premier educational and networking event for the industry. This informative, results-oriented conference brings together the senior management teams of leading-edge electronics companies to focus on industry trends, developments and future direction. Attendees hear the latest information from renowned experts and have unprecedented access to industry leaders. Make plans to participate Oct. 28-30 at the InterContinental Chicago O’Hare Hotel. The early registration deadline is October 5th. Register at https://www.formdesk.com/ecia/execconf or contact ECIA at 678-393-9990.

Sponsors of the conference include: Advantage Business Media; Allied Electronics; Bourns; Carlton-Bates Company; Cornell Dubilier; Digi-Key Corp.; Dove Electronic Components; Electronics Sourcing, N.A.; Empowering Systems; Hearst Business Media; Honeywell; IHS; KEMET Electronics; Kruvand Associates; Littelfuse; Marsh Electronics; Model N; Molex; Murata; Newark element 14; netComponents; Norris and Associates; Penton Media; Sharp Microelectronics of the Americas; Omron; ON Semiconductor; Phoenix Contact; TE Connectivity; Texas Instruments; UBM Electronics Group; and Vishay.

Visit the ECIA YouTube Channel to hear what our members have to say about this conference. If you’ve never attended, find out what you’re missing!

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Faithfully performing weightlifting reps at the gym is a way to build stronger muscles. But performing physical reps in the workplace can sometimes lead to injuries. Known as cumulative trauma disorders, such injuries mean weakened or stressed muscles and/or joints caused by repeating the same, possibly awkward, motions as part of one’s job duties. Think squatting, bending or simply holding fixed positions for long periods of time, which can prompt tendonitis, low back pain or carpal tunnel syndrome. According to the Bureau of Labor Statistics, cumulative trauma disorders are the leading cause of lost-workday incidents for U.S. businesses. In fact, nearly one-third of lost-time incidents involve overexertion or repetitive motion.

That’s a sobering statistic, especially considering that for many businesses, there is no avoiding repeating similar physical tasks day in and day out. Even white-collar workers may spend sedentary hours typing at a computer each day. So how does your business protect itself against lost workdays and worker injury claims? Fortunately, the science of ergonomics has emerged and now offers protocols for the proper design of jobs and workplaces to match workers’ capabilities and limitations. If implemented properly, using ergonomic guidelines can help minimize your exposure to such injuries and lower claims for disability and workers compensation. And that translates to better control over the impact to your bottom line.

Proper Motion; Less RiskSo how can you put ergonomics to work? First, consult with an ergonomics specialist, who can assess your workplace and offer a plan specific to your environment. Such practitioners may be on staff at your insurance carrier, or a local ergonomics consulting firm.

You will find making adjustments to your workplace are not necessarily costly or difficult to implement. As you consider your options, here are a few tips to help you protect your staff and your company’s bottom line:

1. Involve your staff. Employees are the real experts when it comes to their own jobs. And consequently, they are often your best resource for identifying the environmental problems and offering solutions. Make them feel engaged and accountable as you assess your ergonomic options.

2. Consider the available data. Use your workers compensation claims data, OSHA 300 logs, safety committee meetings, absenteeism and turnover records, employee suggestions and any other data you have available to identify where the biggest problems are. Then observe workers on the job and talk to your employees and supervisors about these documented problem areas.

3. Educate your employees. Providing illustrated job aids noting proper posture and offering simple tips, such as putting materials that are frequently accessed or heavy within easy reach can pay dividends.

4. Encourage early reporting of problems. If employees feel comfortable about coming forward with symptoms of injury early on, you may have the opportunity to resolve matters before it results in a workers compensation claim. The net result is less pain and suffering for the employee and cost savings for your business.

5. Eliminate risk factors where possible. Changes to work practices and equipment often can eliminate or substantially reduce the risk factors for injury. These can be as simple as instructing employees to bend their knees when picking something up or adjusting a workstation keyboard.

6. Make ergonomics part of your purchasing decisions. Consider the ergonomic influence when planning for equipment changes. Any equipment with an obvious problem should be replaced quickly with something designed to eliminate or reduce the problem. Then, make sure that old equipment that’s being retired is replaced with ergonomically designed equipment, where appropriate.

7. Ask for help if you need it. A good place to start is with your insurance agent or broker, who should be able to facilitate an ergonomics consultation through your insurance company’s risk control service team. Additionally, the OSHA website includes an ergonomics section with publications, guidelines, success stories and compliance insights: http://www.osha.gov/SLTC/ergonomics.

Keeping your workplace injury-free by assessing how work actually gets done will take a little time. But increasing productivity, lowering injury-related absences—and expenses—is worth the investment.

This article was prepared exclusively for ECIA members by OneBeacon Technology Insurance, a member of OneBeacon Insurance Group. Visit us online: www.onebeacontech.com.

K e e p i n g W o r k p l a c e I n j u r i e s i n C h e c k

New Members - Welcome to ECIA

IRI - Representative Metz Connect - Manufacturer Nuventix - Manufacturer R.C. Merchant & Company, Inc. - Representative

Click here for a complete list of ECIA Members

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C o n f l i c t M i n e r a l s F i n a l R u l e sThe Securities and Exchange Commission (SEC) on August 22 issued the Final Rule relating to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the use of conflict minerals.

The Final Rule applies to a company that uses minerals including tantalum, tin, gold or tungsten if:• The company files reports with the SEC under the Exchange Act.• The minerals are “necessary to the functionality or production” of a product manufactured or contracted to be manufactured by the company

The Final Rule requires a company to provide the disclosure on a new form to be filed with the SEC (Form SD).

How Does This Pertain To Me?

The bottom line is that if your company is a publicly traded company and manufactures products that have any of the 4 minerals (tin, gold, tantalum, tungsten) in them or use them in the production of your products - you are subject to the regulations.

Although your company may not be subject to the regulations specifically, chances are that it will be involved in some way. Like RoHS, REACH and any number of other regulations, customers will want information about the conflict minerals status of the parts they buy. In addition, you may be involved in another firm’s due diligence; you may be required to identify DRC Conflict Mineral parts or any number of other supply chain considerations.

Background

The SEC oversees the activities of all participants in the securities markets—including publicly held corporations, public utilities, investment companies and advisers, and securities brokers and dealers—to ensure that investors are adequately informed and their interests are protected. The Dodd-Frank Wall Street Reform and Consumer Protection Act includes Section 1502 on Conflict Minerals. This section requires changes to the Securities Exchange Act of 1934 to include requirements for disclosures relating to conflict minerals originating in the Democratic Republic of the Congo (DRC). Sales of these Conflict Minerals originating in the DRC and adjoining countries have helped fund conflicts contributing to an emergency humanitarian situation. Identifying these minerals and their source will help defund the armed groups creating the humanitarian emergency.

These Final Rules contain several changes to the originally proposed rules. A few are included here and others will be highlighted in future articles.

Highlights Of The Final Rules

The Final Rule applies to all “resource extraction issuers”. This includes all companies that are • required to file an annual report with the SEC, and• engaged in the commercial development of oil, natural gas, or minerals. The Final Rule defines “commercial development of oil, natural gas, or minerals” to include exploration, extraction, processing, and export, or the acquisition of a license for any such activity

The conflict minerals are defined as Cassiterite (tin, tin alloy, solder), Columbite-Tantalite (Tantalum), Gold, Woframite (Tungsten); regardless of where these minerals originate. If the issuer uses them, the rules apply.

Determining Whether Conflict Minerals Originate In The DRC

1. If a company’s products contain any of the conflict minerals, a reasonable country of origin inquiry must be performed. a. The company must complete the new disclosure Form SD if either of the following is true, i. the company knows that the minerals did not originate in the covered countries or are from scrap or recycled sources, or ii. the company has no reason to believe the minerals may have originated in the covered countries or may not be from scrap or recycled sources

In addition, the company must make its description publically available on its website and provide the URL of that site on the Form SD b. The company must undertake due diligence on the source and chain of custody and file a conflict minerals report as an exhibit to Form SD if the country of origin inquiry determines that both of the following are true: i. the company knows or has reason to believe that the minerals may have originated in the covered countries, and ii. the company knows or has reason to believe that the minerals may not be from scrap or recycled sources

2. Scrap or Recycled sources a. If minerals are obtained from scrap or recycled sources, these are considered to be DRC Conflict Free.

3. Time Period a. Reporting time period is the calendar year. Reports are due May 31 for the previous calendar year with the first report due May 31, 2014 for the calendar year 2013.

Editors Note: ECIA will devote a session of the Executive Conference to a presentation on minerals and metals scarcity. Jim Forbes of PricewaterhouseCoopers will speak on the impact to our industry.

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S a v e t h e D a t e : Te x a s C h a p t e r M e e t i n g L u n c h e o nO c t o b e r 9 t h , 1 1 : 3 0 a . m . - 1 : 3 0 p . m .

Mark your calendar for the next Texas Chapter Meeting. The luncheon will be held from 11:30am – 1:30pm at the La Cima Club in Las Colinas. Learn what’s new at ECIA and welcome our newest members.

This informative meeting will feature a presentation by Jesus Canas, an associate economist at the Federal Reserve Bank of Dallas. As a member of the Regional Group, Jesus analyzes the regional economy and will share their opinion of economic drivers for rest of 2012 & 2013. In addition, he will touch on issues pertaining to the Mexican economy and the maquiladora industry. Cañas has written articles for various Federal Reserve Bank publications and academic journals such as Annals of Regional Science and Growth and Change. Cañas holds a BA in economics and finance and MS in economics from the University of Texas at El Paso.

Las Calinas is an upscale, professional venue. A nice luncheon will be provided and parking will be validated for 2 hours. (Charge is $2.50 for each additional hour) Please visit their website for directions: www.lacimaclub.com

Thanks to the planning committee members for organizing this meeting: Robert Logan, President, Kruvand; Dawn Manhart, Distribution Mgr., Littelfuse; Andy Kerr , Vice President Passives, Mouser; Tom Rau, Business Develoment Mgr., Mouser; Claudia Ramirez, Executive Administrator, Allied Electronics; and Cathy Walensky, Director Corporate Communications, TTI Inc.

Invite a friend and plan to join us at the meeting! Click here to R.S.V.P. by October 1st.

The Fall Standards Engineering Summit will be held October 1-4, 2012 in Las Vegas. This semi-annual event features a complete slate of EIA engineering meetings plus a series of general sessions and participation activities that will allow attendees to meet and exchange information with colleagues and peers. A special seminar has been added to Monday, geared to first-time attendees. The Summit chairmen in conjunction with the S-1 General Session have provided a schedule that will both meet the objectives of each attendee and still allow enough time to assure a productive and efficient venue for all technical activities.

Who Should Attend: Component Manufacturers, Material and Equipment Suppliers, OEMs.Market managers, engineering, product managers, manufacturing, and test/conformity assessment engineers and managers.

Meetings focus: Meetings developing Standards for Passive Components—Resistors, Capacitors, Inductive Components, Overcurrent Protec-tion Devices, IPDs, Decoupling Devices, ElectronicConnectors and Sockets.

Discuss and create Industry Standards, Test Methods, Performance Criteria,Soldering Technology, Automated Component Handling, Product & ProcessQuality and Reliability.

Hotel Location:Springhill Suites Las Vegas Convention Center is located in Las Vegas’s East of The Strip neighborhood, close to Las Vegas Convention Center, University of Nevada-Las Vegas, and Fashion Show Mall. Nearby points of interest also include Las Vegas Premium Outlets and Thomas and Mack Center.

Click here for more information and to register. The registration fee for ECIA Members is $45; Non-ECIA Members is $75.

F a l l S t a n d a r d s E n g i n e e r i n g S u m m i tO c t o b e r 1 - 4 , S p r i n g h i l l S u i t e s L a s V e g a s C o n v e n t i o n C e n t e r

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A U n i t e d K i n g d o m Tr a d e A s s o c i a t i o n

S t a t i s t i c s F r o m T h e A s s o c i a t i o n O f F r a n c h i s e d D i s t r i b u t o r s o f E l e c t r o n i c C o m p o n e n t s ( A F D E C )

U n i t e d K i n g d o m S t a t i s t i c s f o r J u n e

AFDEC Monthly Statistics: Average Daily Sales by Month

Sales in £k per day; ----- shows 3 month average

Each month AFDEC gathers statistics from its distributor

members and summarizes bookings, billings, inventory,

stock turn/earn ratio, debtors, gross margin, etc., split

down by semiconductors, passives and electromechanical

components and, where appropriate, into more detailed

sub-categories. These monthly statistics enable members

to check their own trends against those of the industry.

North American statistics are available through ECIA’s

Distribution Business Index.

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U n i t e d K i n g d o m S t a t i s t i c s f o r J u n e

T h e E C I A C o m p o n e n t s C o u n c i l ( E C C ) Our thanks to Digi-Key Corporation for hosting the most recent meeting of the ECC. It was nice to visit Thief River Falls, MN in August rather than February. They have a great facility and helped us have a productive meeting.

The council is made up of 10 distributors and 10 manufacturers that identify industry issues, create committees to “solve” them, oversee the progress, and drive implementation.

2D Barcode Committee - The 2D barcode committee has created a specification to define the use of 2D barcode for product packaging and shipping in our industry. The committee is currently conducting a pilot program.

• Draft specification released

• Pilot program started

Connector Tray Committee – Distributors often have to split orders and repackage components. This committee is working with connector manufactures and their engineering teams, to identify packaging that would provide product protection for less than full tray processing.

Certificates of Conformance Committee – Customers are asking for Certificates of Conformance on non-military parts, increasing cost, delays, and complexity in the supply chain.

• Find a better way of providing traceability on commercial components. Think outside the box, outside our industry.

• Reviewing other industry practices for providing information to customers other than paper.

• Digital DNA – DNA marking to prevent “counterfeit” documents. This may allow the use of QR codes to transmit the CofC rather than paper.

EDI Committee

The EDI committee is working to make the EDI transactions commonly used in our industry easier to implement and reduce the time and expense of bring on a new partner. Transactions include:810 - Invoices, 830 - Forecast, 832 - Price Sales Catalog, 845 - Price Authorization, 846 - Inventory, 844/849 - Ship and Debit, 850 - Purchase Orders, 855 - PO Acknowledgment, 856 - Ship Notice,860 - PO Change, 865 - PO Change Acknowledgment, 867 - Product Transfer and Resale

Environmental Committee – The environmental committee is responsible for surveying the environmental regulations world wide that may affect our industry, report to the council, and recommend actions as necessary. The committee is currently working on position papers for:

• Conflict Minerals – Final SEC rules have been released (See summary on Page 6 of this newsletter). This committee will assess how this will affect our industry.

• RoHS 2 and the elimination of exemptions

• REACH – Addition of new chemicals

Excess Inventory Committee – With counterfeit parts continuing to be a problem in our industry, this committee will look at practices in our industry for disposal of excess inventory so that these parts don’t contribute to the counterfeit problem.

• Benchmarking companies that handle /process excess inventory while identifying best practices

• This committee will produce a best practices document for handling/processing and disposal of excess inventory with potential consequences for not meeting the best practices.

Update NIGP 113 ECIA Guidelines for Product Returns – This guideline defined conditions under which distributors could take back returns from customers and re-enter them into the supply chain. The document is updated with similar conditions for manufacturers.

For more information on any of these activities, please contact Barney Martin, [email protected], 678-393-9990.

Standing Back Row: Mitch Krolick, TI; Chris Binion, Newark ele-ment 14; Thomas Mayfield, Newark element 14; Merrill Mahoney, Sager Electronics; Todd Martin, Carlton-Bates; Barney Martin, ECIA. Middle Row: Deralee Bowlin, Allied; Mary Radford, KEMET; Jay Smith, Future; Melanie Pizzey, TTI, Inc.; Pete Shopp, Mouser; Peter Burke, Avnet. Seated: Ty Golden, Allied; Joseph Marquez, Freescale; Matt Nemec, Digi-Key Corp.; Don Elario, Arrow.

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U p d a t e : G r e g o r y T. M e f f o r d H i t t i n g F a c i l i t yIn July we announced the passing of a dedicated industry and association colleague, Greg Mefford. The outpouring of support from industry friends to his family was incredibly uplifting in their time of grief. Greg’s wife Sandy and his step-son Chris Price contacted ECIA to thank us for the newsletter tribute and to provide an update on the progress of the batting facility fund for the City of Norfolk:

“Thank you so much for the email and the kind words about Greg in your monthly newsletter,” wrote Chris. “We all miss him very much as it has been a very difficult time. In an effort to establish a lasting memory of Greg and his contributions to our community and baseball we are all hoping to build an indoor baseball hitting facility in Greg’s hometown of Norfolk, NE. The city recently renovated the grandstands and built a new pool and made improvements to the facility but it is lacking one final piece - the Gregory T. Mefford hitting facility. The Mayor and City Council in Norfolk have assured us that if we can raise the funds for this awesome addition, we can name it in honor of Greg. We are now asking for your help.”

“Any and all contributions are appreciated. So far we have raised close to $23,000 of the needed $150,000. We plan to honor our donors with a plaque and recognition board with Greg’s picture so all kids who enter the facility will be reminded of his dedication to his community and youth in Norfolk. The City of Norfolk will provide donors with a letter that confirms all donations are tax-free.”

“Greg’s legacy will go on through fond memories of those whom knew him and the differences he made through his contributions professionally,” said Sandy. “I thank you from the bottom of my heart for the July newsletter about his contribution to the industry.”

If you would like to donate, indicate on the check that the donation is for Greg’s facility. Mail checks to: Norfolk Little League Baseball PMB# 381 710 S. 13th St. Suite 900 Norfolk, NE 68701

Take a bite out of dental work costs with this benefit.

As a DenteMax dental network member company, you have access to over 100,000 dental locations nationwide using the Enhanced Benefits Card. There is no paperwork to fill out or waiting. Savings typically range from 25-45% off the usual and customary charges. DenteMax requires all dentists to complete and pass credentialing before being admitted into the program and are periodically re-credentialed to main-tain a level of high quality service.

Need to Know• Member must see a participating provider to receive discounts• Members are responsible for payment to the provider at the time service is rendered• Discounts will be applied at the time of service on covered proce-dures• Services from non-participating providers will NOT be discounted• Members can locate a participating provider by going to the website or contacting customer service• This is NOT insurance

Get Started

Visit www.theEBCcard/Dental for participating dental locations in all states, or you can call 800.655.0758. When making an appointment, you must identify yourself as a member of EBC Card/DenteMax. For more information contact the EBC Help Desk at 866.921.7284.

U n i v e r s i t y N e w s : U n i v e r s i t y o f N e b r a s k a - K e a r n e y

Industrial Distribution Student Recruiting Opportunity at University of Nebraska – Kearney

The Fall 2012 Industrial Distribution Career Event will be held October 22-24. Details and updates are found on the school’s website at www.unkid.org. Registration Forms are due no later than October 1. The Event Schedule and Registration Form are available on line. Slots fill quickly so submit your company information as soon as possible.

UNK’s Industrial Distribution degree program prepares students for careers in technical sales and for future business leadership roles. Course offerings provide students with professional, technical, business, communication, and leadership competencies.

If you have any questions, please contact Brenda Jochum, internship director: (308) 865-8122

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C a l l F o r P a p e r sC A R T S I n t e r n a t i o n a l 2 0 1 3Submission Deadline November 30th

Symposium Dates: CARTS International 2013 | March 25—28, 2013 | Houston, TX

Celebrate Excellence in Member MarketingECIA & UBM Extend Entry Deadline To September 15, 2012

The call for entries deadline for the Electronics Choice Industry Awards (ECIA’s) has been extended to September 15th. The ECIA awards celebrate excellence in marketing by honoring ECIA members who have displayed exceptional branding and marketing programs in the past year. The competition is open only to ECIA member companies.

Competition details are available at www.eciawards.com. There is a nominal charge of $45 per entry and you may enter as many times as you’d like.

One of the new categories to debut in the Electronics Choice Industry Awards aims to engage the “20-somethings” at your business. Have them submit a “YouTube style video” that demonstrates the career opportunities this industry provides. ECIA works with a number of universities across the country that offer degree programs in industrial distribution, supply chain management and logistics. There is a need to showcase employment within the electronics industry as an exciting and profitable career path. This category aims to have the “more youthful employees” submit clips that speak to why they started in the industry, what opportunities they see ahead or why someone else should consider working for a company like yours. And there is no charge to submit!

Award winners will be announced at the 2012 Executive Conference on Monday, October 29, 2012 at the InterContinental Chicago O’Hare. Contact Debbie Conyers at ECIA with any questions: [email protected].

CARTS International 2013 brings its expertise in electronic component technologies for high temperature, high reliability to the center for oil and gas exploration applications.

CARTS International combines the focus of three regional events into the premier technical conference for the world’s passive electronic components industry. Reflecting the culture of today’s interconnected global economies, CARTS International assembles industry experts from all regions of the world markets in one place to share and exchange technical expertise with manufacturers, users and academia in the electronics industry.

The symposium consists of both invited and submitted technical papers, technical seminars of topical interest, and a marketing seminar that is unique to CARTS International. The technical seminars are designed to train new engineers and update more ex-perienced personnel, and the management and marketing seminars provide a worldwide survey of the passive component and associated materials markets by analyzing current and future trends. The two-day exhibition gives manufacturers and suppliers the opportunity to meet one-on-one with current and potential customers.

Click here for more information and to submit your abstract.

Page 12: The Source - September 2012

Robin B. Gray, Jr. President678.393.9990 [email protected]

Robert Willis Executive VP/CTO571.323.0255 [email protected]

Debbie Conyers Director of Marketing & 678.393.9990 Communications [email protected]

Donna Dilbeck Member Services Coordinator678.393.9990 [email protected] Laura Donohoe Standards Administrator571.323.0294 [email protected] Barney Martin VP of Industry Practices 678.393.9990 [email protected]

Michelle Meyer Director of Member Relations703-583-2970 [email protected]

Edward Mikoski Director, ECIA Standards and 571.323.0253 Technology; VP, EIA Standards and Technology [email protected]

Raymond Tekin Director, Website Services/IT 571.323.0251 [email protected]

Janet Wood VP of Administration678.393.9990 [email protected]

Electronic Components Industry Association1111 Alderman Drive, Suite 400Alpharetta, GA 30005

p 678.393.9990 f 678.393.9998

www.eciaonline.orgD.C. Office2214 Rock Hill Road, Suite 170Herndon, VA 20170

E C I A S t a f fU p c o m i n g E v e n t s :

E C I A B o a r d M e m b e r s

Chairperson +John F. DenslingerMurata Electronics N.A., Inc.

Past Chairperson +Brian McNallyArrow Electronics, Inc.

Chairperson-elect +Michael KnightTTI, Inc.

Sales RepresentativeCraig AndersonSumer

Manufacturer DirectorJames A. BruortonKEMET Electronics Corp.

Distributor DirectorPaul BuckleyNewark

Sales Representative +Mark ConleyO’Donnell Associates North, Inc.

Distributor Director +Lee DavidsonAllied Electronics, Inc.

Manufacturer Director +Richard DwyerIntel Corp.

Distributor DirectorTodd FarnsworthCarlton-Bates Company

Distributor DirectorFrancis J. FlynnSager Electronics

Distributor DirectorPerry FoxTonar Industries, Inc.

Manufacturer Director +Blair HaasBud Industries, Inc.

Sales Representative Jim HarperHarper & Two

Manufacturer DirectorBrian HaugeMolex

Manufacturer DirectorGreg JerrehianPhoenix Contact Manufacturer DirectorJames R. KaplanCornell Dubilier Electronics, Inc.

Distributor DirectorChuck KostalnickAvnet

Manufacturer DirectorPaul KrystekIBM Global Procurement

Distributor DirectorMark LarsonDigi-Key Corp.

Sales RepresentativeRobert LoganKruvand Associates

Manufacturer DirectorJames MatthewsCorning, Inc.Distributor DirectorEric MaxGenie Group Inc.

Manufacturer DirectorJeff NewellTexas Instruments

Sales Representative Paul NielsenBrainard Nielsen Marketing

Sales Representative Dave NorrisNorris & Associates

Distributor DirectorGlenn SmithMouser Electronics

Sales Representative Mike SwensenMel Foster Company

Manufacturer DirectorKeith B. ThomasAVX Corp.

Distributor DirectorWalter TobinFuture Electronics Sales Representative Bob WalshCoakley, Boyd & Abbett, Inc.

+Executive Committee

2012

September 12-14 ECIA Councils & Boards of Directors Meetings Portland, OR

October 1-4 Fall Engineering Summit

9 Texas Chapter Meeting Las Colinas, TX

28-30 Executive Conference Chicago, IL

29 Electronics Choice Industry Awards for Marketing Chicago, IL

November 13-16 electronica Munich, Germany 30 CARTS Submission Deadline

December 4-5 ECIA Components Council (ECC) Little Rock, AR

2013

January 8-11 Consumer Electronics Show (CES) Las Vegas, NV

March 25-28 CARTS International 2013 Houston, TX