I hope you are all experiencing the upturn in manufacturing as we are this year. Business appears as if it will continue to maintain this trend.  Complications in response times, quick deliveries, shorthanded experienced machine operators, and increased raw material pricing on copper alloy materials including 360 brass are being continually analyzed and addressed.  In this newsletter I have put together an updates on those issues, actions we are taking and some suggestions for you, our customers, so that we may continue to expand on our strong business partnership.

 Response time and quick turnaround- Consider 1 year blanket orders for reduced setups and allow extra lead time for uncertainties including material availability and outside services such as plating, heat treating, thread rolling, broaching etc... Despite these challenges, Avanti strives every day to meet all delivery dates. We have hired an assistant in production control to help with better customer communication and support.

 Shorthanded machine operators- We have brought on some additional staff in this area which is helping get more machines going. We have also started our new in house training program, enabling our newer operators to get up to speed faster. We are like everyone else, in that the uncertainty of business related politics has caused us to side on being more conservative during unknown times and what lies ahead in 2011.

 Raw material-  Due to the increased demand for "bar products" we have seen steady increases in almost all materials but particularly 360 brass. The copper market has been rising steady all year even though there were some decreases or lulls early on.  Lately it has been all increases and brass bar is back up very close to the all time high it reached in 2008.  Avanti Engineering, Inc. feels your pain.   These increases are without a doubt, affecting everyone's bottom line.  We are very concerned about where copper is headed and we are monitoring these increases very closely. We will do what we can to fight and absorb these cost increases and hopefully prices will stabilize soon.  Just a forewarning, that in the event copper & brass prices continue to rise uncontrollably, Avanti will, at some point, be forced to initiate separate line item "material surcharges" to all applicable invoices as a means to recover these terrible increases.

 Other news:

 We have upgraded some older 1" 6 spindle machines with newer and better 1-1/4" 6 spindle machines.  We have also added three more single spindle Brown & Sharpe machines with Servo motor and auto tripping capability. These machines will be on our floor and operable approximately October 17^th.  Ultimately we will have better high volume multi spindle capability and have better smaller quantity capability including a reduction in setup time.