By Henry Kessler

IAB Minutes / February 19, 2009 Meeting

In attendence:

Tamara Houk, Swiss Service Center, Inc., AWCI, IAB Chairman

Henry Kessler, Sy Kessler & Sons, Renta, AWCI, IAB Vice Chairman

Jim Lubic, AWCI Executive Director

Joe Juaire, AWCI President

Herman Mayer, AWCI, REC Chairman, Lititz Watch Technicum

Jack Kurdzionak, Boston Watch Corp., AWCI Treasurer

Klaus Lehmann, Swatch

Chuck Berthiaume, Rolex

Mark Butterworth, Butterworth Clocks, Inc.

Gary Borel, Jules Borel

Don Wester, Jules Borel

Gerhard Loitz, Richemont NA

Peter Foster, Swatch

Pat Cassedy, CasKer

Company

Rick Foster, Casker Company

Peter Purtschert, Breitling

David Pearlmutter, PTRC

Karen Elliott, PTRC

Jon Horton, PTRC

Jim Kemnitz, Energizer

Tamara Houk opened the meeting and welcomed all. She asked everyone to

introduce themselves. (This was done.) Tamara then reminded everybody

about the voting procedures. One vote per company.

Tamara requested a vote on accepting the minutes from the August 2008

Accepted.

Joe Juaire – director of St Paul College, CEO, was asked to start the meeting.

He said: What has the BOD of AWCI been up to, and what will be accomplished.

He reported that we had some resignations and some replacements. The new

folks are more professional and tone of the meetings appears to be better.

The past has been a mix between hobbyists and professionals, yet they can’t

serve 2 masters. Industry has helped develop industry standards. AWCI has

come a long way toward focusing on the professional that derives his or her

income from repairing watches and clocks, training and testing. AWCI has many

enthusiastic members. People that want to become more professional. He said

the hobbyist is often enthusiastic too! However, watchmakers that have more to

Each of us represents a professional industry, and we are dedicated. Hobbyists

are not dedicated; they could change hobbies at their whim, and focusing upon

their needs has the potential of harming the organization. AWCI focuses upon

the professional, not so much the hobbyist, however, they too are always

welcome to learn. He said that we must no longer foster the belief that the

hobbyist can be held in the same high level of esteem.

AWCI must form a partnership with industry, via the IAB. This is a new area of

cooperation. The loggerhead is past, and now we can move forward.

#1) We have a big member base of skilled and semiskilled

professional. We

have the opportunity to improve their standard level. To help them to become

more successful. AWCI can then provide a greater number of trained

watchmakers. Students averaged around $18,000 dollars of income in 1995.

Last year, it was $44,000. This represents a big increase; mostly based upon

supply and demand. Worried about tipping point. People will avoid buying the

watches if they cost too much to service.

#2) Brand specific training is faced with the problem of the lacking basic skills of

individual students. Habits, shop arrangement, how to do the basics… all needs

work. Watch brands must be able to assume some level of basic knowledge, so

students can benefit from any courses offered. If AWCI can provide the base line

starting point, it provides a benefit to the brands.

#3) Protect the reputation of the watchmaking industry. Consumer must learn

that skilled watchmakers are required. All bad repairs hurt the industry’s image.

AWCI needs support – intellect, money, time in

return for value.

How do we reach the next level? We have a wealth of resources in our library.

We would like to have an online manual on our website archives that is easily

accessible. Students could benefit. Ready access. Lots of well indexed articles

from HT also.

How to improve HT? Increase the scope beyond current membership, by

featuring what people need and want to buy.

Input is needed to further develop the strategic plan.

Joe Juaire is proud of our new members, and he feels the organization will

benefit.

Next:

Herman Mayer of the Lititz Watch Technicum will describe a new watchmakers

training program which partners with AWCI and WOSTEP.

Swiss American Watchmakers Training Alliance (SAWTA)

More details: purpose is to create confident watchmakers directly out of school.

Why? Big demand is #1. #2, a 2yr

training program results in a functioning

capable and confident watchmaker. Capable of doing the full spectrum of work

required, and to be an independent functioning watchmaker of the company he is

employed by.

Provide training activities.

Alliance members: Rolex USA, Wostep, AWCI and the 4 schools that Rolex

sponsors. The relationship is not competitive. All focus on their respective fields.

Build a complement, due to different backgrounds. This is a very constructive

and powerful organization.

What are the nuts and bolts? How is this achieved?

3 main areas: Content of curriculum, proficiency time line, and the activities

supporting how students learn.

Contents: Covers the basics to complicated pieces.

If only movements, students miss out on everything else. Case and bracelet

proficiencies. Expectations are high, especially with regard to aesthetics. Case

and polish. Integrity of case, waterproof capability. Communication with spare

parts suppliers. Must be able to represent the industry. Avoid Walmart, rely on

good service, value for the cost. Workflow

management. Space is expensive.

Area must be efficient, improves quality of work. Organized work style manages

costs and helps to improve quality. Estimating is a necessity. When they learn.

Uses a circle. Tasks are all covered and proficiencies are constantly improved.

Case, bracelet, watch service, real life application (where the training meets the

reality of the field.)

Basic micro mechanics. Long list of standards of training as it has been the last

300 years. Includes metals, cutting metals, etc. (This is new.) Lathe operations,

months, you can put one together. Knows how they work, so they can

troubleshoot. Worn bushings can be seen, once you comprehend how the micro

automatic movements, assembly and disassembly. So many students before

could not explain power flow through the watch, because they didn’t understand

the basic principles of how the watch works. Hurts their diagnostic capabilities.

how the watch works, helps to improve the diagnostics. Avoid constant isolated

adjustment skills, while understanding the overall function of the watch, improves

the learning process.

teaching method. Tremendous!

Real life wear. Procedures and documentation. How to train wear analysis. If

they understand function overall, diagnostics is improved. Wear possibilities

must be learned to avoid comebacks and to do proper repairs. People often

don’t replace what needs to be repaired and often replace parts that do not need

replacement. Learn to leave fully functioning original parts in place.

the right attitude. Develop a professional organized approach. Q/C of completed

repairs. Testing. Documentation. Knowledge of spare parts requirements from

potential vendors. Avoid trial and error. Too expensive. Managing customer

expectations (estimate, service all round, Q/C and documentation.) Needs to be

a member of professional community. He noted that fully 95% of Lititz group are

members of AWCI.

How they learn: Tool making. Keep making the piece over and over. They get a

task, (make a screwdriver). Consistency. Watching wear factors. Last portion of

program, do all variety of watches under pressure for production volume.

Testing: Micro mechanics and basic watch service. Lititz and Okla. Practice in

base plate and screws. Theoretical side too. Understand how a watch

movement works. (Knowledge of terminology, comprehension of movement.)

Understand the tool limitations in relation to the parts being produced.

Watch service proficiencies. Testing. Q/C like it happens in a service center and

trade shop. Improve quality and efficiency. Reduce comebacks.

Can be no preparation for the test. Normally tests are 100% in alignment with

what is taught, but that is not reality. Final exam.

Students get all 3 certificates, plus one from the school. Higher level skills are

taught. Due to retail environment, need skills and versatility and sensitivity of

Principles vary. Watches in Japan are serviced in a totally different

infrastructure. Culture impacts too. In JP, they use several small shops. In US,

need people for retail environment, service centers, trade shops, etc. WOSTEP

alone would not train a watchmaker for a retail environment. Not enough skills.

WOSTEP provides only the topics of customer consultation to polishing, but they

do not cover these topics 1 to 1. Did not remove any areas, but they changed

they way all is taught. Slower in the beginning, but speeds up everything in the

long run. No reduction in quality at all. Speed increased. Abstract knowledge is

much greater since it is taught. Student becomes more responsible. Students

take work home. For 2 years, they live watchmaking day and night. Draw by

hand first before CAD system. Become knowledgeable with concepts first.

Objective is to get everybody to agree on the same standards.

Research and Education Committee of AWCI, will take place in May at OSU.

(Oklahoma State University). Main topic, integrate case and bracelet service into

schools programs. Must work with case and bracelet, battery change. Too easy

for an unskilled service tech to damage a nice timepiece. General interest from

industry. Wants product course specific to brands. Last time in Miss, an Omega

course was offered. Any brands could help, increase Exposure to schools.

Contact Herman if interested in courses. Turnout should be good. All schools

will be (should be) coming.

Jim Lubic:

year students, REC schools 82 – 90. One school of Miss is bringing the number

year in a row from JCK for money. SAWTA program will help.

Certification, have tested 250 members with CW21, 130 have passed. Some

tests are being graded now. 130 could be greater. CW21 classes are full.

January was filled with 12 but only 7 came. Loophole is now closed. They must

pay upfront now. Moving forward, classes are filling up. Fantastic to see the

number of people coming. Tom Shoemaker – everybody likes this man, all

positive comments. Tom has much patience and is seen as a good

communicator. 2009 classes are full. Looking for ways to ease certification

program. Big revenue generator, #3. All takes money, so direction is unknown.

Mark asked Jim: Do you have a feel for how many potential students there are?

Jim Lubic at

least double current number.

Tamara: Did people take advantage of the opportunity to upgrade?

Jim Lubic: 20 maybe.

Klaus – membership, where does that stand?

Jim Lubic: Has dropped slightly, using mid October date, 2,565 were billed, and

renewed 1864 (72%) + Life and honorary members: 2263 is new latest count.

Had 15 members that past away. 47 members said they will not renew. 679

being pursued now via membership committee. Trend over the last 6 years is

down, except last years drop was low. Usually 200 to 400 drop. Dues level

should hold them at $137. Add value to membership. HT quality needs to be

improved! Needs more avenues for finding articles. Swiss Society of

Chronometie. Good articles – R&D, new movements coming, etc. Problem, all

in French. Asking for English. Willing to let us use if we translate, and share with

them. Will work on this.

Pat Cassedy: Suggested a service, but indicated technical aspect may be lost.

Jim Lubic: We have educational issues which need enhancement. We may have

some opportunities for video conferencing. The service costs members $140 for

a one hour presentation. Will do a pilot soon with a committee. Can use Power

Point, and work over computer. Call in radio show like. Q&A period. Interactive.

Answer questions about what is going on with organization.

Clock Report: 8 people hold the new CMC21 or CC21certification. Excellent test.

Not a strong industry, hard to support.

Shipping program for members. DHL is gone. FedEx made an offer. Another

company has made an offer. Helps to drive membership rates up. Benefits help

to offset annual dues.

AWCI has 4 industry sponsored classes coming, Mark Jones will teach

escapement program, Kerry Halmi from Rolex Dallas timing, Alessandro Betti

from Swatch Switzerland, in April will do ETA products.

Shows: Chicago. Number of new potential members is not expected to be a big

deal.

WT and WS remain on perpetual hold due to funding. (No amount of funding

required was reported.)

Jim Lubic: AWCI is not in position to add more employees, while keeping the

budget balanced. Can’t move another project forward. Tom Shoemaker is our

one and only instructor. If he can’t come or becomes sick, etc., we are in serious

trouble. We simply do not have enough manpower.

The training materials are listed along with the outline.

All certification classes are booked. To add another project is impossible.

Joe: On line is a big time waster.

John: Teach how not to destroy a watch while replacing a battery. Not rocket

science.

Jim Lubic: We want to avoid the Dan Gendren type of course. We want

something more substantial.

Chuck: JCPenney: has an overseer. Could AWCI work together with that person

to conduct training? Yes. We must have a controlled “hands on” face to face

effort to consider receiving any type of certification.

Joe: For now, the CW21 program is the focus of AWCI. If we have another

certification project, it might be hard for the consumer to differentiate between

WS, WT and CW21. Quality of outcome is most critical.

Jim Lubic: AWCI faces no real hurdle except money. For now, AWCI is tapped

out. Money is dropping. 30K will drop to 25K/month. $60K/year will be lost. We

can’t go to the bank.

The numbers – are real. There is a market to sell it to. Everybody is stretched,

and AWCI has no man hours available to focus upon anything else.

Mark: What is the possibility of chains like a JCPenney or industry vendors, of

developing a partnership with AWCI? Even if only to temporarily provide

financing?

Jim Lubic: No time to pursue. But, we are open when additional budget appears.

Henry Kessler: Climbed on his soap box, suggesting that demand for training

was high, and that people would pay for the opportunity to learn. Jack offered to

talk after the meeting.

Rick Foster: Retailers tell us that repairs are paying the bills today, while it is

much harder to sell new watches, diamonds and gold.

Mark: Repairs are carrying the business. The average mom and pop store says

this is like it was during the depression.

Chief examiner Wesley Grau, could not attend. However, he offered a handout.

Tamara: Any questions? No.

New Business?

Peter Foster: Did anybody see the Bloomberg article “You never stop paying for

luxury repair?” There are some realities of watch ownership. Service is required.

Some negative points are there, but it is reality.

Jack: Let me tell you a story. I feel like the teacher I once was. In 1981, the

industry declined. Starting salaries were low, the required tools were expensive,

and the tension between manufacturers and repair technicians was high. Would

you believe I am talking about the shoe industry! (Not watches, but sounds

alike.) Jack did some research. Found an industry organization and called their

executive director. He was surprised about how their problems paralleled ours.

They had troubles yet are coping with it. Investigated new business models. On

line “send to service centers.” Jack talked with their executive director, who

offered his cooperation and assistance. We are not alone.

Jack shared the shoe service video, presented by Vibram. Improve conditions

and profitability of wholesales in industry. NSLFA. Committed to building

membership. Shoe repair industry and members. Association saw advantages

of inviting manufacturers to be associate members. A credit service bureau was

established. In 1918, they formed a trade promotion bureau, and created a

monthly publication. Time goes by. Price cutters came in with less expensive

materials which hurt the image of the professional. Then there was the growth of

“do it yourself” kits for the Shoe Repair Service. They focused upon becoming a

better businessmen. Generate value through quality work. Selling service items

was suggested. A book was created, the public must know… In 1928, they had

their first expo in Boston. The Industrial Trade Act was created by Roosevelt. All

types of trade organizations consolidated. In 1934, they offered parameters of

code and made it law. (It was short lived, and was dissolved 2 months after.)

Implemented a $25K project of research, which was a wake up call to industry.

Industry decline was due to poor workmanship and poor image. So they

developed the guild program. Got discounts on materials, bookkeeping systems.

Introduced a silver cup contest. Drew 100 entries, addressed shop cleanliness,

ideal activities of fine craftsmanship. Time goes by. They create nationally

promoted “check up” days. Promotional kits were sold to shops. The project

campaign. Due to war, everything changed again. Labor became scarce, lots of

work, wages were small, but size of market was large. Shoe conservation was

created as essential to war effort. Riots developed due to mixed races.

Industry had to change in 1950s. Shoe service declined. In 1957, they launched

a $74K program. Kits to promote repair business. Diversification was promoted.

Improved the image of the industry. Time goes by – Kennedy, one small step for

man… labor is more scarce, and not attractive due to low wages. Cheap shoes

became more prevalent. Required labeling laws, to differentiate. 40% of

domestic production was cheap. Shoe import situation. Industry took a stance,

setting quotas. SSIA gained insight. International organization. Nixon: Shoe

Service Industry Council. Big PR effort, talking about the need for top quality

service. Spokespersons were famous. Developed coop program for repairers to

use. Industry wide funding and cooperation. More and better repair became

demanded. Regan years: 1980s, entrepreneurs blossomed. New more efficient

European equipment and concepts were introduced. High traffic was sought

after opportunities. Clinton, 1990s environmentally conscious. Recycling

awareness. 60 million pairs of shoes out of dumps, and shoes for disaster

2004 new campaign, create consumer awareness. If the shoe fits, repair it. Goal

was to reach 1 million people…

Mark talked about scanning the entire AWCI library. Jack, Rick, Pat, all talked

about demand, cost, benefit. Demand was estimated to be low.

Jim Lubic: 75% of requests for documents are for modern watches. They publish

them in HT, and where to find data. Citizen is good. Seiko is generally without

technical support data. They have an avenue for electronic access. Email

is

impressive. Increased traffic on website: not an issue, traffic is a goal.

Jim Lubic: Next year’s meeting: Will be moved from 7/30/09 – 8/2/09 to 8/69

the

first full weekend in August, in Providence RI.

Jack: Food is good, transportation is easy. Airport is nearby. Weather will be

perfect. Free shuttle.

Tamara: No more business? The meeting was ended.