Dues Schedule

Including Membership Requirements and Clarification of Special Conditions

Revised January, 2007

The Board of Directors, October 12, 2007, reaffirmed previous resolutions and authorized the publication of an amended dues schedule effective January 1, 2008.

This dues schedule is published in accordance with Article Two, Section 5 and 6, Code of Regulations.

MEMBERSHIP CLASSIFICATIONS

Active Membership (Contract Manufacturers)

An Active Member of the Precision Machined Products Association is a business entity that manufactures precision machined products for sale to or use by others. Each member company shall be treated as a separate entity, so serviced, and so billed for dues, and registered separately in the membership directory.

Associate Membership (Captive Departments)

An Associate Member of the Precision Machined Products Association is a business entity that manufactures precision machined products solely for its own use, assembly and incorporation into products it markets and catalogs. Each separate plant of the named member company shall be treated as a separate entity, so serviced, and so billed for dues, and registered separately in the membership directory.

Technical Membership (Suppliers)

A Technical Member of the Precision Machined Products Association is a business entity which can provide goods or services to the industry. Each separate location of the named member company shall be treated as a separate entity, so serviced, so billed for dues and registered separately in the membership directory.

Affiliate Membership (Schools)

Any non-profit educational institution that provides training or other programs to the precision machining industry is eligible to become an Affiliate member. Each separate location of the named member company shall be treated as a separate entity, so serviced, so billed for dues and registered separately in the membership directory.

INTERPRETATION OF THE DUES SCHEDULES

  1. Active Members with More than One Location

    If an Active Member has multiple companies, locations or operations, dues shall be paid in accordance with one of the following options:

    1. Each individual company or location pays dues based on their sales. Each individual company or location will have a separate membership, with individual listing and voting rights.
    2. One company, the parent or larger company, pays full dues according to the published schedule. Subsidiary companies’ annual dues are limited to one-third (1/3) of the annual amount paid by the parent company. Each individual company or location will have a separate membership, with individual listing and voting rights.
    3. A member with multiple plants under the same name may pay dues on the aggregate sales of all plants, be entitled to one certified representative, one vote, and may have all locations listed in the membership directory under one primary company name.

  2. Product for Own Use Only

    If a member manufactures precision machined products solely for its own use, then that company is classified as an Associate non voting member, and dues are determined on the number of turning, milling and rotary transfer machines-in-place. (See schedule on Page 8.)

  3. Product for Own Use and for Sale to Others

    Should a member manufacture for own use and also sell any precision machined products to others, he becomes an Active voting member, and pays dues both on machines-in-place used for its own product, and also the basic dues rate on the dollar volume of product sales to others. In such instances, the dues for the combined captive machines and product sales to others, must be equal to or greater than the minimum dues of $600 per year.

    This is accomplished by determining the annual average number of machines used in the member's manufacture of his own product and applying the machines-in-place schedule. In addition, the member pays dues on the invoiced sales of precision machined products to customers as outlined in the basic dues schedule. The total of these two amounts is payable in advance, quarterly, semi-annually, or annually, at the member's option.

  4. Reporting Sales

    Active Members will be asked to report previous year’s sales annually at the beginning of each new year. Dues for the new year will be based on these sales so it is important that these reports be returned accurately and promptly.

  5. Confidential Treatment

    Members’ reported sales and dues calculations will be treated as confidential information and not divulged to other members, Board of Directors, employees or outside parties.

    When members’ accounts are past due, their indebtedness is discussed in terms of months past due, not dollars.

Schedule of Dues

Entrance Fee

The entrance fee is $100.00 for all new members without regard to size or classification. A check in this amount should accompany the application.

ACTIVE MEMBERS
BASIC DUES SCHEDULE
(Contract Manufacturers)
(U. S. A. Members)

Active Members’ dues are calculated according to the basic schedule and based on sales from the previous year. They may be paid quarterly, semi-annually, or annually at the discretion of the member.

For dues purposes, sales are defined as invoiced value of sales from manufacturing operations.

The minimum dues are $600 per year.

Annual Net Sales Range Dues Calculation
Over To Annual Dues Base + Rate x Sales Over
$0 $1,500,000 $0 + 0.001567 x $0
$1,500,000 $2,500,000 $2,350 + 0.000700 x $1,500,000
$2,500,000 $5,000,000 $3,050 + 0.0003000 x $2,500,000
$5,000,000 no cap $3,800 + 0.000025 x $5,000,000

For example, a member with $4,000,000 in annual sales from the previous year would be in the range of over $2,500,000 to $5,000,000. This member’s dues would be the base of $3,050 plus the rate of 0.0003 times the amount over $2,500,000. $3,050 + (0.0003 x $1,500,000) = $3,500.

For another example, a member with $30,000,000 in annual sales from the previous year would be in the range of over $5,000,000. This member’s dues would be the base of $3,800 plus the rate of 0.000025 times the amount over $5,000,000. $3,800 + (0.000025 x $25,000,000) = $4,425.

ACTIVE MEMBERS
CANADIAN AND FOREIGN
(Contract Manufacturers)

All dues are payable in U.S. Funds

The dues for Canadian and Foreign Active Members (contract manufacturing) shall be 65% of the dues paid by U.S.A. Active Members as shown in the basic dues schedule with the exception of minimum annual dues which shall be $600.

NOTE: With the Canadian/Foreign dues rate discounted relative to the U.S.A. rate, precision machined products sales are not to be adjusted for currency rates of exchange. (Payable in U.S. dollars.)

The following rates are 65% of those paid by U.S.A. contract manufacturing members.

The minimum dues are $600 per year.

Annual Net Sales Range Dues Calculation
Over To Annual Dues Base + Rate x Sales Over
$0 $1,500,000 $0 + 0.0010185 x $0
$1,500,000 $2,500,000 $1,528 + 0.0004550 x $1,500,000
$2,500,000 $5,000,000 $1,983 + 0.0001950 x $2,500,000
$5,000,000 no cap $2,470 + 0.0000163 x $5,000,000

For example, a member with $4,000,000 in annual sales from the previous year would be in the range of over $2,500,000 to $5,000,000. This member's dues would be the base of $1,983 plus the rate of 0.00195 times the amount over $2,500,000. $1,983 + (0.00195 x $1,500,000) = $2,276.

ASSOCIATE MEMBERS
(Captive Departments)
U.S.A., Canadian, or Foreign

Associate Members are those companies producing precision machined products solely for incorporation in their own end product which is a catalogued and/or inventoried item.

The following dues schedule for Associate Members applies to U.S.A., Canadian or Foreign Members and is payable in U.S. funds.

Associate Members pay a base rate of $1,000.00 annually plus $20.00 per turning, milling and rotary transfer machine annually. The minimum dues paid annually are $1,200.00. There is no cap on dues.

Example (annual dues)
10 Machines $1,000.00 plus $ 200.00 = $ 1,200.00
20 Machines $1,000.00 plus $ 400.00 = $ 1,400.00
50 Machines $1,000.00 plus $1,000.00 = $2,000.00
100 Machines $1,000.00 plus $2,000.00 = $3,000.00
150 Machines $1,000.00 plus $3,000.00 = $4,000.00

NOTE: Dues are payable in advance, either annually, semi-annually, or quarterly. Machines refer to machines-in-place without reference to hours of operation or size.

TECHNICAL MEMBERSHIP
U.S.A., Canadian, or Foreign

The following dues schedule for Technical Members applies to U.S.A., Canadian or Foreign Members and is payable in U.S. funds.

Dues are based on sales to North American machined products manufacturers as follows.

Class C To $1,000,000 $1,000.00
Class B $1,000,000 through $2,000,000 $2,000.00
Class A Over $2,000,000 $3,000.00

AFFILIATE MEMBERSHIP
U.S.A., Canadian, or Foreign

Any non-profit educational institution that provides training or other programs to the precision machining industry is eligible to become an Affiliate member.

Annual dues for Affiliate Members are $250 per location payable in U.S. funds.

SPECIAL ASSESSMENTS

Special assessments are limited by the Code of Regulations to those authorized by the Board of Directors.

—BOARD OF DIRECTORS
January, 2008