CNC INSIDERMay 2016

Connecting technologyinvestments and profit

2 CNC INSIDER | May 2016 | woodworkingnetwork.com

woodworkingnetwork.com

ContentsA competitiveadvantage

No matter the size of your wood-

working operation, in order to

survive and thrive in today’s eco-

nomic landscape it is essential

that you develop a competitive

advantage. The use of technology

in the production process can help

you achieve this.

Technology not only can improve

the quality and consistency of

the products, but also the speed

of delivery to customers. In addi-

tion to CNC machines, technology

also encompasses the software

and tooling used in the shop. On

the following pages are case stud-

ies that highlight the impact that

technology has on three diverse

wood products manufacturers.

This edition of the CNC Insider is brought to you by woodwork-

ing machinery supplier Laguna

Tools, software application source

Mozaik Software, and cutting tool-

ing provider Vortex Tool Co. As you

read this special issue, also con-

sider how choosing the right ma-

chine, tooling and software can

help your company gain a com-

petitive edge.

3More tax breaks available for businessesWoodworkers can cash in on their equipment and software purchases.

4CNC investment nets a return on remodelingPalm Brothers Remodeling’s turnkey capabilities get a helping hand with CNC technology.

8Making a case for software integrationJMV Woodworks sinks its teeth into commercial and residential millwork projects.

12A lesson plan for growing businessCNC technology and tooling helps spur Dombeck Custom Cabinets’ million dollar sales.

woodworkingnetwork.com | May 2016 | CNC INSIDER 3

Business advice Tax credits

Wood products manufacturers can continue to cash in on their high-value equipment purchases. Con-

gress’ passage of the PATH Act (Protecting Americans from Tax Hikes Act of 2015)makes permanent a 100 percent deduction for capital investments, up to $500,000. Investments above that level, up to $2 mil-lion, are deductible at a lower rate.

In addition to expanding the deduction limit, it paved the way for the Section 179 cap to be indexed to inflation, in $10,000 increments in future years.

The PATH Act also includes a 50 percent bonus depreciation, which is extended through 2019. This means businesses of all

sizes will be able to depreciate 50 percent of the cost of equipment acquired and put in service during 2015, 2016 and 2017; the depreciation amount drops to 40 percent in 2018 and 30 percent in 2019.

Section 179 can also provide wood prod-ucts manufacturers with significant tax relief for the 2016 tax year, but the equip-ment and software must be financed and in place by midnight Dec. 31, 2016. An on-line calculator, sponsored by Crest Capital, can be used to help woodshops determine their Section 179 Qualified Financing. Go to bit.ly/TaxDeductionCalculator for access.

The provision further modifies the ex-pensing limitation with respect to qualified

real property by eliminating the $250,000 cap beginning in 2016.

There are a number of other tax benefits that were extended to businesses, along with other tax deductions established in the bill, such as research and development.

This information should be helpful in de-termining equipment purchases with regards to obtaining a good return on investment.

To calculate your ROI, take the gain of the investment, minus the cost, and divide that total by the cost; in other words, ROI=(Gains-Cost)/Cost. A higher ROI indicates that the cost of the capital invest-ment will return to the company in even stronger profits.

MORE TAX BREAKSWoodworkers can cash in on equipment and software purchases.

A high return on your technology investment

means strong profits for your business.

4 CNC INSIDER | May 2016 | woodworkingnetwork.com

Palm Brothers Remodeling

The term “full service” doesn’t wholly de-scribe the range of products and capa-bilities offered by Palm Brothers Remod-

eling Inc., a turnkey renovation firm based in Naples, Florida. Specializing in commercial in-teriors and custom woodworking, the company designed, built and installed what is considered to be the country’s first funeral home wine cel-lar, enabling the Naples funeral provider to offer an alternative form of memorial gathering. The

2015 wine cellar project was profiled on televi-sion and in print for its unique setting.

That’s just one of the many accolades for Palm Brothers (PalmBrothersRemodeling.com), which was founded in 2002 by brothers Bran-don and Marcus Palm. The remodeling firm also has been named a Best of Houzz favorite for 2014 and 2016 for its customer service.

From its inception, Palm Brothers’ ability to provide a variety of services has been key, says

Brandon, who learned the business from his stepfather, a builder. “What set us apart during the slowdown was that we had experience in so many areas. We were able to offer turnkey capa-bilities in remodeling,” including moulding and millwork, cabinet manufacturing and installa-tion. “We also had the experience to offer cutting edge lighting that was completely integrated.”

Brandon adds, “Our reputation for cus-tomer service also stems from the fact that we

a return on remodelingPalm Brothers Remodeling’s turnkey capabilities get a helping hand with CNC technology.

CNC investment nets

By Jo-Ann Kaiser

woodworkingnetwork.com | May 2016 | CNC INSIDER 5

keep the customer informed from the plan-ning stage through the final installation. We provide a primer on our website of what hap-pens in the various stages.

“Most of the jobs we do are for homes that cost $1 million and up, and some of our cli-ents hire us to work on their second, third or fourth homes. In this area, clients tend to spend a lot of money on renovations,” he says.

The company’s showroom highlights Palm Brothers’ capabilities and past work. In addition, it has a 3,300-square-foot facility for woodwork-ing, with eight “great employees,” Palm says, in-cluding two full-time cabinetmakers. Palm also credits Mark Barbour, who runs the shop. “He

is a professionally trained woodworker and he knows how to make anything. Having him in our company has been a blessing. We are poised to enjoy the upturn in business.”

Technology also plays an integral role in Palm Brothers’ turnkey abilities and success. The company recently purchased five key pieces of machinery from Laguna Tools, in-cluding: a customized 5 x 10-foot SmartShop IV CNC router with automatic tool changer, a 4/3 Bandit single-sided automatic edgeband-er, dovetail machine, several 3-HP mobile dust collectors, and a hollow chisel mortiser.

“The CNC machine has been a game chang-er,” Palm says. “We use it every day.” In addition

to the training provided, Palm praises Laguna for its quick response and customer service.

“When you purchase this type of machinery for our kind of fast-paced business you have to make sure the manufacturer is ready at all times to diagnose all issues. Service is just as impor-tant as the machinery itself, or it really is just a piece of metal. I tell people to find out what kind of support you have with the machinery manu-facturer. If you are spending $80,000-$100,000 for example, for a piece of machinery, make sure you are getting support or you are throwing your money away. Laguna Tools has a lot of em-ployees to help with diagnosing any problems.”

Palm also has high praise for the dovetail

Palm Brothers has earned accolades for many of its projects including this wine cellar built inside a funeral home.

Among the key equipment used in the shop today are a CNC router, edgebander and dovetail machine from Laguna Tools.

6 CNC INSIDER | May 2016 | woodworkingnetwork.com

machine, which he says is easy to operate and provides flawless work. “It is a great machine that cost us $10,000. We use it for our dovetail drawers and it is much more convenient to be able to make our own, rather than outsource.”

Equally critical is the edgebander, which Palm calls “one of the most important machines in our shop,” and the mobile dust collection. “It works fantastically,” he says of the dust system. “We can use it anywhere in the shop but typi-cally we use with the CNC and the edgebander. It is powerful enough to handle both at once.”

And while the hollow chisel mortiser from La-guna Tools isn’t something Palm Brothers uses often, “When you need it, it is fantastic. It gives you the ability to cut a square hole,” Palm says.

Palm Brothers’ investment in Laguna Tools machinery totals around $100,000. “It’s been a wise investment both for the equipment we use daily and pieces that are used less often. We are in an area where people spend a lot of money on renovations. We have been able to easily pay for the investment for all the machinery with work.”

Palm estimates he’s already completed 80 to 100 jobs with the CNC machine alone. “Every remodel project we’ve done has ended up with

us making most or all of the cabinetry. The CNC is used for making two main parts of all boxes. With it we can make a superior cabinet with a much faster turnaround. It does boring holes for adjustments quickly and saves major man hours. We also use it to manufacture tons of closet parts. We set the program up, and it is done quickly and correctly,” says Palm.

The company uses Laguna software partners Mozaik Software and Vectric Ltd.’s Aspire pro-grams. “We put the information in and use [Mo-zaik] to make cabinet boxes and closets. We also use Aspire’s 3D modeling software to cut any part. If you want an arch valance or moulding, you simply draw it, send to the CNC and it cuts the part. It is perfect for cutting curved parts. Be-fore we did that by hand and it could take days. The same job now can be done in minutes.”

Palm adds, “We have a good relationship with Laguna Tools. The machinery is fantastic and they back their products. Laguna has helped us with the learning curves along the way.

“Anyone making this kind of investment needs to do so with a manufacturer who of-fers fast repairs. Service is just as important as the machinery.”

Smart shopTechnology is integral for achiev-ing the consistency, quality and fast turnaround often required for today’s custom commercial and residential renovations, something Palm Brothers Remodeling will attest to. To enhance its capabilities and improve the produc-tion process, the Naples, Florida-based company recently invested in a number of key pieces of equipment from Laguna Tools, including an automatic single-sided edgebander, dovetail machine, mortiser, mobile dust collectors and a customized SmartShop CNC router.

“The CNC machine has been a game changer,” says co-owner Brandon Palm. “We use it every day.”

Supplying quality equipment is nothing new for Laguna Tools, which celebrates 31 years of success this year. Founded by Tor-ben Helshoj and based in Irvine, California, the company offers a wide range of CNC and standard machines for solid wood and panel processing. Among the offerings are: CNC routers, lathes, and multi-spindle machines, edgebanders, panel saws, bor-ing machines, sanders, planers, mortisers, bandsaws, shapers and dust collectors. The company has also pioneered new technology, including the highly-regarded DriftMaster Fence system.

In addition to providing quality wood-working equipment, Laguna Tools has become renown for its efforts in giving back to the community, by supporting outreach programs for students and adults, including injured war veterans, with the products and knowledge need-ed to become skilled woodworkers. For more information on Laguna Tools’ prod-ucts or services, visit LagunaTools.com

In addition to commercial interior renovations, high-end residential work is another specialty of Palm Brothers Remodeling.

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Laguna Tools is not responsible for errors or omissions. Speci�cations subject to change. Machines may be shown with optional accessories.© 2016, Laguna Tools, Inc. LAGUNA® and the LAGUNA Logo® are the registered trademarks of Laguna Tools, Inc. All rights reserved.

8 CNC INSIDER | May 2016 | woodworkingnetwork.com

JMV Woodworks Ltd.

Founded in 1993 by Jason M. Voth, JMV Woodworks began as a commer-cial millwork company, producing fur-

niture for dental and medical doctors’ offices including cabinetry and reception desks, as well as storefronts, jersey cases and Brenka Box all-in-one gaming centers. Spurred by client requests to manufacture products for the home, the Abbotsford, British Columbia-based JMV Woodworks soon expanded its of-

ferings to include kitchen and bath cabinets, laundry rooms, wet bars, closet systems and other residential furniture and casegoods.

With its base in the Vancouver, B.C.-area, JMV’s (JMVWoodworks.ca) clients are mainly in the mainland, notes John Sarkozy, proj-ect engineer. “But we have done work for other areas such as Merritt and Salt Spring Island. Whistler is a particularly busy area for us. People have been spending an

incredible amount of money building up the Sunshine Coast.”

Buoyed in part by referrals from highly satisfied customers, JMV boasts an excel-lent reputation for quality and service. The company has grown in stature as well as size, expanding its facility to 21,000 square feet and adding additional highly-skilled crafts-man and high-tech woodworking technology.

About three years ago, JMV Woodworks

software integrationJMV Woodworks sinks its teeth into commercial and residential millwork projects.

Making a case for

By Jo-Ann Kaiser

woodworkingnetwork.com | May 2016 | CNC INSIDER 9

began looking for a new software provider after becoming dissatisfied with its previous vendor’s product.

“We had worked with another software provider since the early 1990s but they didn’t meet our needs,” says Sarkozy. “We found the software difficult to use and the support was severely lacking. In addition, the pro-gram was expensive and updates were er-ratic. It was a very frustrating situation. We looked at other options. One program was extremely expensive, with a cost of $100,000 to purchase and set up, and it seemed it would take six to nine months to be able to learn the program.”

A solution was found, Sarkozy says, af-ter he and some others from the company saw a presentation by Mozaik at the AWFS woodworking show in Las Vegas. Based on that Voth, JMV founder and owner, recom-mended they give the Mozaik CNC Complete software package a try.

“[Mozaik] had a whole different philoso-phy,” Sarkozy notes. “We were extremely happy with the three-month trial and the support offered by Mozaik. The software does what we want it to do. It wasn’t difficult to learn and compared with other software options, it was affordable.”

Winner of a 2013 Visionary Award at the

AWFS Fair, the Mozaik CNC software solution can go from design to 100 percent machine ready G-Code with ease. The CNC version includes all the features of Mozaik  Design, Mozaik  Manufacturing, and Mozaik  Opti-mization, plus has ready-to-run setups for CNC machining of MDF doors and dovetail drawers. Also new is EcoNest, which enables companies to nest parts on the CNC router without vacuum.  Mozaik’s software is written and maintained entirely by an in-house de-velopment team.

That’s a big plus, says Sarkozy, who adds that Mozaik’s low monthly fee of $125 a month also is very affordable.

JMV Woodworks manufactures casegoods, cabinetry and millwork for commercial and residential applications.

The company uses Mozaik CNC, an integrated software solution that goes easily from design to manufacture.

10 CNC INSIDER | May 2016 | woodworkingnetwork.com

“One of our biggest gripes with the soft-ware we previously used was the poor sup-port. We spent around $3,000 to $4,000 a year for support but were only given an email address for a help forum. We were not provided phone access or the ability to go online.”

In contrast, Sarkozy says, “We are very happy with the support we receive from Mozaik. Our rep responds in minutes to our calls. The support is fantastic, but it has to be in our line of work. Anyone in woodwork-ing knows that you don’t want to be wait-ing around all day for a response. Mozaik is also very great about contacting us with ma-jor updates.”

The impact of computers on today’s wood-working businesses can’t be minimized, Sar-kozy adds.

“When I started in woodworking, we did cutlists by hand. You figured everything out with a calculator or paper and pencil. With things like AutoCAD, what used to take days now takes hours or less. A curved custom piece is no longer the labor-intensive proj-ect that took hours to accomplish. By hand

there are so many variables – computers can do the work today quickly and accurately,” says Sarkozy.

Mozaik’s software system is used in a va-riety of operations, including the cutting of cabinetry on the CNC router. “It used to be that CNC routers were priced beyond what many manufacturers could afford. But today, it’s like the flat screen TVs,” he adds.

Along with improved productivity with CNC technology, the attention to detail JMV pro-vides commercial and residential customers helps set it apart from the competition.

“The quality of our product is very impor-tant to us,” Sarkozy says. “We strive to be ‘150 percent’ accurate, with a quality product that doesn’t leave here until we are sure of it. We also know being on time with orders is important to our clients — and we are always on time.

“We consider ourselves to be partners with our customers,” he adds. “These are things that are a priority to us and have helped us earn a reputation for quality and reliabil-ity. We service what we sell and we don’t cut corners.”

A hit programThe right software is critical to the success of any manufacturing operation. JMV Woodworks learned this firsthand when it became dissatisfied with its pre-vious supplier’s product and service.

“One of our biggest gripes with the software we previously used was the poor support,” says John Sarkozy, project engineer. “We spent around $3,000 to $4,000 a year for support but were only given an email address for a help forum.”

The custom millwork firm turned instead to Mozaik Software’s Mozaik CNC, which it saw at the AWFS Fair. The award-winning screen-to-machine soft-ware solution for cabinets, commercial casework, closets, furniture and more, proved to be the perfect solution.

Sarkozy notes that customer support by Mozaik also has been “great.” Also, a subscription to Mozaik CNC is only $125 per month and includes updates, support, training videos, an online knowledge base and customer forums, and a link to the CNC router. Mozaik CNC also seamlessly integrates with Sketchup, providing the tools needed to design and model most projects.

Based in Tuscaloosa, Alabama, Mo-zaik Software has more than 30 years of experience in the woodworking in-dustry. The company’s award-winning products include: Mozaik Design for the showroom, Mozaik Manufacturing for the custom shop, Mozaik Optimization for nesting parts, Mozaik CNC for nesting flat table CNC Routers, and the Mozaik Paperless Shop Tablet Apps for cutting, labeling, and assembling automation. MozaikSoftware.com

JMV Woodworks began as a commercial millwork producer before customer requests led to the company’s expansion into custom projects for the home.

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12 CNC INSIDER | May 2016 | woodworkingnetwork.com

Dombeck Custom Cabinets

If you want to know the ABCs of growing a woodworking business, just ask Scott Dombeck, founder of Dombeck Custom

Cabinets. Evolving from a small, one-man shop to a high-tech operation in Elderon, Wisconsin, the custom cabinet shop has earned high marks for its ability to achieve high productivity and profitability.

Dombeck credits a combination of CNC technology, quality tooling and handcrafts-

manship with spurring the residential and commercial cabinet firm to more than a mil-lion dollars in sales.

Founded in 1996, the central-Wisconsin-based company underwent its first expansion in 2000. The closure of a competing cabinet provider in 2013 led to further changes in capacity and capability for Dombeck Custom Cabinets (DombeckCustomCabinets.com).

“My company had been steadily growing.

We were doing $450,000-$500,000 a year in gross sales, but we didn’t have the capacity we needed,” Dombeck says. “I told the opera-tions manager of the company about to close that we needed to talk, and we discovered that we both had attributes to bring to work.

“I hired Kyle as my operations manager and purchased two-thirds of the closing company’s equipment, including a CNC router. The new equipment allowed us to produce frameless

for growing businessCNC technology and tooling helps spur Dombeck Custom Cabinets’ million dollar sales.

A lesson plan

By Jo-Ann Kaiser

woodworkingnetwork.com | May 2016 | CNC INSIDER 13

cabinetry. Before we focused on residential face-frame cabinetry,” Dombeck says, “but we wanted to expand our capabilities.”

This led to further change at the company, including its relocation to a converted ele-mentary school in Elderon. “It sounds like an unusual venue for a woodworking company, but the space offered 12,000 square feet and had a lot of potential,” he explains. With help from a USDA rural business grant, the reno-vated facility was ready in October 2013.

Business grew quickly and by 2015, Dom-beck Custom Cabinets achieved $1.3 million in sales. “In our 20 years in business, we have grown in sales every year, even during the

downturn,” said Dombeck. “Our converted school is large enough that we have room to grow and we are not pushing capacity.

“Our facility and equipment give us the abil-ity to do a range of jobs with efficiency,” he adds. Along with a Northwood CNC router, the company also utilizes a Gannomat dowel in-serter and Brandt edgebander. “Getting those three machines has been a game changer and took our shop to new heights and capabilities.”

Equally important has been the return on investment Dombeck Custom Cabinets gets from its tooling. Since 2000, the company has partnered with Vortex Tool Co. to supply its cutting tool needs.

“When we got the CNC we worked with Vor-tex for our tooling options,” Dombeck adds. “Whether it is router bits or other tooling, Vor-tex comes through with the tooling solutions.”

Based in Schofield, Wisconsin, Vortex manufactures high-performance router and insert cutting tools for the woodworking and plastics industries, available in various grades of carbide, stellite, high-speed steel and polycrystalline diamond. Vortex also provides custom tool design, retipping and sharpening services.

“The partnership we have with Vortex Tooling has been very important. We are using Vortex’s XP line of tooling, which

Investments in CNC technology and high-quality tooling have enabled Dombeck Custom Cabinets to significantly

grow its business. The company has had a long-term partnership with Vortex Tool for its tooling needs.

14 CNC INSIDER | May 2016 | woodworkingnetwork.com

offers high performance and longer life. We switched to that and are reaping the benefits of using better tooling and also getting high-er productivity from the tooling. That helps us to save on tooling costs,” says Dombeck.

In addition to improved consistency and effi-ciency, the CNC equipment and tooling has en-abled the company to enhance its capabilities. “We do panel processing and dovetail drawers on it and also paint grade and MDF doors. With it we don’t need to outsource drawer boxes. All of that is now done internally.”

The company also specializes in solid wood doors and produces millwork and mouldings, turnings and architectural details, such as mantles and bars. Species used in-clude: alder, aspen, birch, select and rustic cherry, select and rustic hickory, select and bird’s-eye maple, pine, red oak, walnut and white oak, with others available upon request.

With the technology and tooling in place, Dombeck Custom Cabinets also can cut plastic and non-ferrous metals. “There is not a huge demand for that but having the capability is very handy,” Dombeck says.

For its cabinetry, the product mix is 80 per-cent residential and 20 percent commercial,

with an equal amount of sales in frameless and face-frame. “The commercial side has been a nice niche for us. We deal with cus-tom orders all the time so it’s not a stretch for us to do custom commercial jobs, too. We find ourselves in a very good place that allows us to do the jobs that the really big companies don’t want,” Dombeck says.

Custom kitchen cabinets represent the largest segment of business, but Dombeck is quick to add the company also has the capability to provide cabinetry for any room in the home, as well as custom furniture, armoires, hutches and curio cabinets, built-ins and millwork.

“We pride ourselves on being a true cus-tom shop and our machinery additions have helped us in that area. Customers have an idea of what they want and we have the abil-ity to produce it.

“I sit with customers and listen to their ideas and say, ‘Yep. We can do that.’ The new ma-chinery and Vortex have been instrumental in letting us be the company we want to be.”

Dombeck adds, “I started from ground zero, a one-man shop. Now I see a future with no limitations.”

Tooling upQuality tooling is a key component for a woodworking manufacturer look-ing to achieve optimal production — and success. Just ask Scott Dombeck, founder of Dombeck Custom Cabinets in Elderon, Wisconsin.

Dombeck’s company has been us-ing Vortex Tool’s products since 2000. “The partnership we have with Vortex Tooling has been very important. It has allowed us to come up with the right tooling for our needs,” he adds.

Among the tooling used by the cus-tom residential and commercial cabi-netry firm is the Vortex XP line of router bits which, Dombeck says, offers high performance and a long tool life.

Originally designed for cutting lami-nated materials, Vortex says the XP — “Xtreme Performance” cutting tools work well with a variety of materials, while providing an average of three- to five-times longer tool life compared to standard tool geometry. The XP tooling line is available in two- and three-flute compression style geometries, as well as downcut geometry.

Vortex also designs and manufac-tures a wide variety of standard and custom high-performance router and insert cutting tools for the woodworking and plastics industries, while also pro-viding retipping and sharpening servic-es. Based in Schofield, Wisconsin, the company has been in business since 1992 and is considered to be the larg-est “American-owned and operated” producer of solid carbide router bits in the United States. For more informa-tion, contact Vortex Tool Co. at (800) 355-7708 or visit VortexTool.com.

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