FSCT, Society leaders convene during Spring Meetings in Orlando.

Presidents and other officers representing their local Societies were guests of the FSCT at the Society Leadership Conference held on May 13, in conjunction with meetings of the Federation Board of Directors in Orlando, FL.

Society Leadership Conference

Attending for the Societies were: Jim Smith (Baltimore); Keith Dobell (British); Howard Robins (Chicago); Scott Becker (Cleveland); Chris Howard (Dallas); Bernadette Colonna (Detroit); Dan Gilbert (Los Angeles); Sylvain Belisle (Montreal); David White (New York); Steve Banta (Pacific Northwest); Mario Navarro (Philadelphia); Scott van Remortel (Piedmont); Phyllis Henderson (Pittsburgh); Jeff Smythe (Southern); and Walter Fibiger (Toronto).

Meeting with the Society officers were FSCT President Rick Hille, President-Elect Fritz Walker, and Secretary-Treasurer Rose Ryntz, along with other members of the Federation's Executive Committee and Staff.

Following a review of FSCT activities, finances, and operations, the officers participated in discussions focused on the practical issues of recent initiatives in separation of FSCT/Society membership, renewal billing procedures, and communications. Highlighting the conference was a free-spirited discussion on the current challenges being faced by Societies on membership participation and local industry support. The most important issues as determined by the Societies were: (1) Increased manufacturer and technical member attendance at monthly meetings; (2) Co. support of participation by employees; (3) New leaders and volunteers; (4) Increasing value of monthly meetings; and (5) Providing forums for communication between and among Societies and FSCT.

Presentations were heard from several Societies including:

Chicago -- President Howard Robins advised that the Society will sponsor a meeting of technical directors, suppliers, and Society representatives at ICE 2004 in Chicago to discuss benefits derived from Society membership and support for participation in Society monthly meetings. The FSCT will be pleased to assist the Society in cosponsoring this event.

Baltimore -- President Jim Smith requested support of the Society's project to provide a paint exhibit at Baltimore's Museum of Industry. He noted that the exhibit will teach students and young people the art and technology of paint manufacture and the value of industry to society.

British -- President Keith Dobell reviewed the challenges faced by the Society in gaining members and participation in monthly meetings. He requested that the Federation take into consideration the international nature of the Society and its particular concerns regarding accessibility to benefits.

Board Strategic Workshop

The Federation's Board of Directors met for its annual Strategic Workshop on May 14. President Hille reviewed the previous day's discussion with Society leaders and thanked the Societies for their participation and support. The Board also heard reports of the recent status of two task forces.

Structure and Governance -- President-Elect Fritz Walker reported on the discussions of the Structure and Governance Task Force, which is composed of the following persons: Fritz Walker, Chair; Bob Ahn (Los Angeles Society); Larry Brandenburger (Northwestern); Jim Geiger (Southern); Gerry Gough (British); Tom Hill (FSCT Past-President); Deryk Pawsey (FSCT Past-President); George Pilcher (CDIC); Chuck Shearer (New England); Yasmin Sayed-Sweet (Detroit); Andy Traister (Piedmont); and Roger Woodhull (New England). Serving as facilitator is Bob McQuiston, former FSCT legal counsel. Staff liaisons are Bob Ziegler and Lisa McGlashen.

Dr. Walker said that the group's charge was to "review the mission, organizational structure and governance of the FSCT and formulate and propose specific recommendations to improve its ability to better and more efficiently serve the ever-changing needs of its stakeholders, i.e., its members, the constituent Societies, the coatings and allied industries, and the public."

The group has met three times to review the FSCT's current governance model, organizational goals, mission, and major programs. During its discussions, consensus was reached that:

* FSCT faces enormous challenges and will not survive if it is not "reinvented."

* While the current structure and governance served FSCT well in the past, it is now a serious impediment to the FSCT's future and must be changed.

* The Federation must have a structure and governance that facilitates its ability to provide additional and more apparent value for its members.

* The recent change in the by-laws, uncoupling FSCT/Society membership, substantially eliminates the need:

-- for FSCT to intrude on matters involving the Societies; and

-- for the Societies to maintain effective control of the decision-making process of FSCT.

* FSCT must become more oriented and accountable to its individual members and industry, while continuing to provide appropriate support to the Societies. The task force will issue its recommendations in a report to the Board at its Fall 2004 meeting in Chicago.

Alternate Year Events -- Dr. Ryntz reviewed the activities of the Alternate Year Event Committee, which met the previous day. The members of the committee will chair sub-committees responsible for the development of a new series of themed events that will support the educational mission of the FSCT.

The Advancements in Coatings Series (ACSeries) will feature topics on Manufacturing, Substrates, Impact Technologies and Techniques, and Societal Issues in regional venues initially throughout the U.S., but with the ability to expand internationally. Planned whenever possible in conjunction, but not in competition, with major Society events, the ACSeries will focus on technical content and small supplier exhibits. The initial ACSeries on DOE/Quality is planned for the Chicago region in Spring 2005. Additional ACSeries events will be scheduled in 2005 and 2006.

International Support -- Colin Penny, Chair of the International Relations Committee, presented a report on Federation efforts to support the growth of newly developed Latin American technical organizations. Following a review of the paint industry in Latin America, Mr. Penny emphasized that the Brazilian market is, by far, the largest in South America.

The FSCT, he said, is pleased to support the efforts of both STAR, in the Andean region, and SATER, in Argentina. Both organizations have held technical programs and exhibits that were supported, in part, by the Federation. The FSCT continues to provide support as well to the Mexico Association, ANAFAPYT, and is looking forward to developing relations with ABRAFATI, the Brazilian Coatings Association.

FSCT Midyear Symposium

Also held in conjunction with the FSCT Spring Meetings, the FSCT Midyear Symposium, "Crosslinking for Coatings: Meeting the Challenges," was held in Lake Buena Vista, FL, on May 12-14, 2004. Attended by over 90 persons, the three-day event included a one-day workshop, a two-day program of technical presentations, a poster session, and a networking reception.

A global event, the Midyear Symposium attracted participants from coating companies and universities from Canada, Denmark, Japan, the Netherlands, New Zealand, South Africa, and the United States. Attendees reported that the technical content of the symposium was one of the most important factors in determining their participation, and surveys of participants reflected high levels of satisfaction with the program.

During the Crosslinking Workshop on May 12, industry experts examined topics such as film formation, film formation from latexes, crosslinking chemistries, and the roles of catalysis, radiation cure, and characterization in the crosslinking processes.

On May 13 and 14, the Symposium began with a Plenary Lecture on "Waterborne Epoxy Technology: A New Route to Ambient Cured Thermosets," by Matthias Lohe, Michael Cook, and Frederick Walker, of Air Products & Chemicals, Inc. Presentations covered such areas as ambient temperature crosslinking, alternative crosslinking chemistries, and elevated temperature crosslinking technologies and characterization.

The Midyear Symposium was coordinated by a task force of members from the FSCT Professional Development and Annual Meeting Program Committees, including: Symposium Chair Jamil Baghdachi, of the Coatings Research Institute, Eastern Michigan University; Ray Fernando, Cal Poly State University, Dept. of Chemistry and Biochemistry; Latoska Price, Akzo Nobel Coatings Inc., Automotive Refinishes; and Mark Soucek, University of Akron, Dept. of Polymer Engineering.

2004 Spring Board of Directors Meeting

(The following is a summary of the reports presented and actions taken during the Spring 2004 Meeting of the FSCT Board of Directors. The full report may be reviewed on the FSCT website: www.coatingstech.org.)

RICHARD M. HILLE, PRESIDENT

Since becoming your President this past Fall, I have been honored to preside over all Executive Committee meetings, the FSCT's first phone conference Special Board Meeting, the Spring Meeting of the NPCA Suppliers Committee, and to address the Pittsburgh SCT. In addition, I have had innumerable discussions with FSCT and Society leaders, Committee Chairmen, and concerned Members. I am deeply appreciative to Staff, my fellow Officers, and FSCT friends for their significant assistance.

In previous comments to the Board, I outlined three primary objectives for this year: separate membership; a governance review to improve simplicity, speed and accountability in our decision process; and a collective effort between the FSCT and the Societies to drive relevance and value in the programs and services that we provide to our members. At our special Board Meeting on March 4, we established membership freedom of choice--certainly a momentous as well as painful change from our 1922 formation, but one undoubtedly necessary to address today's requirements. It's now time to work out the details and begin thinking about the opportunities this organizational freedom presents to both the FSCT and the Societies.

Regarding governance, my friend and our President-Elect Fritz Walker has made significant progress with an "All Star" committee, to review how our decision process could best be altered to better fit the future requirements of our organization. The issues of FSCT/Society relevance to each other and collectively to our members will be major topics at the May meetings in Orlando of the FSCT/Society interface (Society Leadership Conference), and FSCT initiatives (Board Workshop). There will be adequate time for both formal meetings and informal discussions (which are often times more productive). While detailed agendas will be guiding our discussions, the following are our simplified goals:

* Separate Membership--short-term logistics; long-term options.

* Society Support--Essential services, mutual assistance and support, and communication.

* FSCT Event Planning, educational activities, and governance.

Simply, the prosperity of the FSCT and the Societies separately and collectively will require new resources (volunteers and revenue), and/or reduced expenses (informational and educational programs and services). With the issues of divisiveness behind us, we can now together focus on these challenges of confirming needed programs and services, dispatching those that are now irrelevant, and continuing to bolster our most valuable resource--the skilled, dedicated volunteer.

"FRITZ" H. WALKER, PRESIDENT-ELECT

Under President Hille's leadership, the Officers and Executive Committee are presently focused on two equally important tasks. The first is the development of alternate year events (AYE). Let us be clear: the financial viability of the Federation depends on our ability to generate new sources of revenue as we transition to ICE on a biannual basis. We have exciting plans to develop new venues for the professional development of our members and the industry as a whole. The Advancements in Coatings Series will include themed events around Societal Issues, Substrates, Manufacturing, and Impact Technologies, and our intention is to hold these events on a regular basis built around a biannual calendar.

The second area of focus is the Structure and Governance Task Force, the formation of which was announced by President Hille at the Fall Board Meeting. I have been honored with the chairmanship of this committee. The committee is taking its responsibility very seriously, is proceeding thoughtfully, and desires to insure that all views have an opportunity to be presented and discussed. After spending considerable time collecting and analyzing responses to detailed questionnaires sent to Board members, committee members, and senior staff, it became apparent to the committee that the FSCT faces enormous challenges. We will not survive unless we can "reinvent" ourselves as an organization. In addition, the historic recent change in our by-laws, uncoupling FSCT/Society membership, further requires that the FSCT become more oriented and accountable to its individual members--many of whom may no longer have any affiliation with the Societies--while continuing to provide appropriate support to the Societies. While the current structure and governance served FSCT well in the past, a general consensus has emerged that it is now a serious impediment to FSCT's future success. By the time of our meeting we will have convened twice, and made significant progress in our review of the mission, organizational structure, and governance of the FSCT. Our end product will be a set of specific recommendations designed to improve our ability to better and more efficiently serve the ever-changing needs of the stakeholders in our organization. I look forward to sharing our progress with you in May.

[In his remarks, Dr. Walker cited former FSCT legal counsel Bob McQuiston for his efforts in facilitating the discussions of the Task Force.]

ROSE RYNTZ, SECRETARY-TREASURER

It has been quite an enlightening experience for me in the past seven months dealing with the great amount of change going on within our organization. I have been honored to participate in all Executive Committee meetings and conference calls. I have acted as Secretary for the CIEF meeting held in March, have acted as a member of the Publications Committee as well as the Editorial Review Board for the JOURNAL OF COATINGS TECHNOLOGY RESEARCH, and have participated in setting up the structure of AYEs (alternate year events), where to this point committee chairs have been selected, proposed timelines for events have been identified, and planning efforts are well underway. In addition, I was asked to teach a two-part Virtual Learning Course on Coatings for Plastics which was recently completed, with over 600 participants at 28 sites.

For the first half (Sept.-Feb. 2004) of the 2004 fiscal year, income of $2,475,000 (vs. budget of $2,360,000) was achieved. Operating expenses amounted to $1,545,000 (vs. budget of $1,630,000). This resulted in a net surplus of $930,000. This was due not only to a very successful ICE but also to the continued effort to reduce expenses overall.

Fiscal year 2004 was budgeted at a deficit of ($150,000), but projections seem to indicate that there is a fair chance that the FSCT could experience a small surplus at year-end. This is predicated on several factors, to include:

* Achieving projected expenses for the split JCT 

* A successful Midyear event (budgeted for 75 paid registrants)

* Continuing to be conservative on expenses

This year the FSCT BOD will be asked to approve a two year operating budget for fiscal years 2005 and 2006, due to the alternate year format of ICE. Fiscal year 2005 has budgeted income of $4,099,625, operating expenses of $3,036,226, and a non-operating deficit of ($86,000). Combined, these equate to a budget surplus of $977,400. Fiscal year 2006 has a projected budgeted income of $1,544,050, projected total operating expenses of $2,409,250, non-operating deficit of ($96,000), which combined equate to a budget deficit of ($961,200). Combined, the two-year operating budget equates to a net surplus of $16,200.

ROBERT ZIEGLER, EXECUTIVE VICE PRESIDENT

In an historic meeting on March 4 the Board approved a basic change in the Federation: no longer must a person be first a member of a Society before being able to join the FSCT. This decision was not made in haste nor taken lightly by the FSCT. The decision mirrors the changing landscape of the industry and reflects the changing needs of the individual members of both the FSCT and Societies. The decision being made, the challenge now becomes education and implementation. To this end the FSCT has invited the Presidents of the Societies to a Leadership Conference to be held in Orlando preceding the meetings of the Board. It is imperative that the FSCT and Societies seek to gain mutual support in their endeavors to develop services and events in a collaborative and cooperative manner that will benefit their combined memberships.

2004 Initiatives

In addition to separate membership, the FSCT is also pursuing other initiatives that will seek to make the organization more responsive to change and to its members' needs. President-Elect Fritz Walker is heading a blue ribbon task force that will consider recommendations for revising the structure and governance of the Federation. Dr. Walker will report on the group's discussions at the May meeting of the Board. Meanwhile, Dr. Rose Ryntz, FSCT Secretary-Treasurer, is chairing the coordination of the new Federation-sponsored "Advancements in Coatings Series" that will augment the biennially scheduled International Coatings Expo. An update of the coordinating committee's activities will be presented to the Board in Orlando.

ICE 2004

Plans for the 2004 International Coatings Expo are well underway. Preceded by the International Coatings Technology Conference on Monday-Wednesday, October 25-27, ICE will open on Wednesday, October 27, with the Mattiello Lecture by George Pilcher. The Technical Program and Expo will continue through Friday, October 29. The FSCT is pleased to continue the well-received "Block Party" concept on Wednesday from 4:00-6:00 pm on the show floor. We sincerely appreciate the efforts of the Professional Development Committee (Jamil Baghdachi, Chair) and the Annual Meeting Program Committee (Ray Fernando, Chair). As detailed in their respective reports to the Board, programming for the ICE 2004 will provide a wide variety of topics addressing the theme, "Challenge--Change--Opportunity." The FSCT is very excited about returning to Chicago and to the beginning of its new biennial schedule.

Publications

A new era in FSCT communications began in January with the publication of JCT RESEARCH and JCT COATINGSTECH. The industry's response to these publications has been overwhelmingly positive and the FSCT gratefully acknowledges the efforts of the Publications Committee (Charlie Hegedus, Chair) and Dr. Ray Dickie, JCT Editor.

I also wish to thank Herb Hillman, JCT's "Mr. Humbug," for his more than 25 years' of monthly reminders that there is more to life than watching paint dry. Herb, who is retiring his column this month, not only renewed our sense of humor, but also gave us a place to recycle all of those old jokes. Thanks, Herb!

Membership

At the beginning of this report we mentioned the recent approval of separate membership. While the FSCT believes that separate membership is in the best interests of all, it would be naive to think that such a decision would not have a short-term effect on membership totals. We wish to emphasize that separate membership is an option and that the FSCT will continue to promote the advantages and benefits of both Society and FSCT membership. The renewal efforts have just begun and will continue through July. Membership to date is 4,609 vs. 6,071 in April 2003.

We look forward to meeting with Society leaders in Orlando to review the membership program and to discuss methods to increase retention for both the Societies and FSCT.

FSCT Headquarters

We are extremely proud to be serving with the following individuals: Audrey Boozer, Subscription Manager; Linda Madden, DTP Operator; Lisa McGlashen, Asst. to the EVP and Exhibits Coordinator; Rod Moon, Director of Education; Joe Pontoski, Controller and Director of Headquarters Administration; Meryl Simon, Member Services; Mary Sorbello, Asst. to the Director of Education; Cass Wikiera, Production Manager; Marie Wikiera, Membership Manager; and Pat Ziegler, Director of Communications. Assisting Staff on a part-time basis are Dottie Kwiatkowski, Receptionist, and Alicia Hoffmayer, Associate Editor.

We also thank President Rick Hille, President-Elect Fritz Walker, Secretary-Treasurer Rose Ryntz, and the members of the Executive Committee and Board, as well as the various volunteer FSCT Committees.

ROD MOON, DIRECTOR OF EDUCATION

Professional Development Committee

Jamil Baghdachi, Chair. Charged with developing and implementing the International Coatings Technology Conference portion of ICE 2004: Challenge--Change--Opportunity as well as programming outside the venue of ICE, i.e., the Virtual Learning Conferences, Professional Development Seminars, etc., the PDC met on December 15-16, 2003 and via conference calls on January 12 and March 10, 2004.

International Coatings Technology Conference

Plans for the ICTC are complete. A total of 18 courses are scheduled: eight one-day courses, six two-day courses (including an Executive Forum), and four half-day courses. Based on the success of last year's half-day course format, this format has been enhanced and added to this year's ICTC course offerings.

Annual Meeting Program Committee

Ray Fernando, Chair. The Annual Meeting Program Committee met on December 9, 2003 via conference call and on March 13-14, 2004. The committee is charged with the development and execution of the Annual Meeting Program portion of ICE 2004: Challenge--Change--Opportunity. Based on the evaluations from past ICE programs, the committee once again developed thematic sessions to enhance the delivery and quality of the paper presentations, as well as increase audience attendance. In addition to the Mattiello Lecture, the Technical Focus Lecture and the Poster sessions, this year's program has 16 additional sessions scheduled.

Of the 108 abstracts received and reviewed for presentation, nearly 85 papers are scheduled for presentation at ICE 2004. Again in 2004, the Proceedings of the Annual Meeting will be available in CD format. The committee will be meeting in August to discuss final plans for ICE 2004 and begin planning for future FSCT events.

Manufacturing Committee

Steve Marcus, Chair. The Manufacturing Committee, comprised of members from both FSCT and the National Paint and Coatings Association (NPCA), met on March 15-16, 2004. The Manufacturing Committee, or an Educational Subcommittee, is very interested in playing a key role in helping FSCT develop an event in the alternate year to ICE.

Virtual Learning Conferences

Combining Internet and audio conferencing technologies in a synchronous delivery program delivery format, Virtual Learning Conferences were introduced to the coatings industry by FSCT in 2000. FSCT had a two-part series VLC presented in December 2003: Part I--Basic UV-Cure and Pigmented Technology and Part II--Advanced UV-Cure Technology with 48 and 49 registered sites respectively representing some 343 individual attendees. This VLC was cosponsored with RadTech International North America. In March 2004, a two-part series, Coatings for Plastics I and II was presented and netted 32 and 31 sites, respectively, representing 374 individual attendees.

The Virtual Learning Conference Task Force, comprised of members of the PDC and AMPC, is preparing the Fall 2004 schedule, which will include:

* Sept. 9 -- Regulatory Update I

* Sept. 16 -- Regulatory Update II

* Oct. 7 -- Polyurethanes I

* Oct. 14 -- Polyurethanes II

* Nov. 4 -- Pigments for Coatings I--Prime Pigments

* Nov. 11 -- Pigments for Coatings II--Extender Pigments

Other Activities

REPORT 2004 -- Cosponsored by FSCT and SATER (Sociedad Argentina de Tecnologia Recrubrimientos), REPORT 2004 is planned for September 1-3, 2004 in Buenos Aires, Argentina. Many paper presentations and short technical sessions are planned over the three-day period. Three technical sessions, Durability, Smart Coatings, and Advanced Polymer Chemistry, will be presented by speakers specifically recruited by FSCT.

SURFEX 2004 -- On June 23, FSCT will be sponsoring a one-day seminar, The Polymer Chemistry of Paints and Coatings, one of several concurrent sessions offered. Conducting the program for the FSCT will be Fritz Walker.

PAT ZIEGLER, DIRECTOR OF COMMUNICATIONS

As with all critical areas of the FSCT, the watchwords for this year have been "relevance" and "value." In the publications arena, several major initiatives have been accomplished or are underway to underscore the relevance of FSCT membership and increased value of the benefits provided to coatings professionals.

Publications Committee

The Publications Committee has been very actively involved with a number of projects, the most ambitious of which was splitting the JCT into two new journals: JCT RESEARCH and JCT COATINGSTECH. Additional projects underway include preparing to publish the proceedings of the 3rd International Symposium on Service Life Prediction, preparing to publish a series of papers on analytical techniques, publishing a compendium of papers on waterborne coatings technology, and developing software/literature on paint calculations. In addition, the Committee has tackled the formidable task of evaluating the FSCT publications portfolio and has set some directions for publications efforts in the future.

The inaugural issues of JCT RESEARCH and JCT COATINGSTECH were published and distributed to all members and subscribers in January 2004. Response has been extraordinarily positive. Overall feedback is that the two new publications reflect the quality and integrity consistent with FSCT products.

JCT RESEARCH: Submissions of quality technical papers have increased from previous years, and reactions from the scientific community to this highly focused peer-reviewed journal have been positive. Many who were skeptical of the change in format have responded with enthusiastic support.

JCT COATINGSTECH: The goal of the Committee was to expand the scope of the editorial content to include more articles on market trends, manufacturing practices, and updates on technology in practice. Industry experts such as George Pilcher, Michael Diebold, Ray Fernando, and Dean Webster have provided insightful articles on cutting-edge topics. FSCT has been fortunate to retain the monthly services of a freelance author who focuses on specific markets of the industry. In addition, responses from the supplier community to requests for editorial submissions have been strong. Unfortunately, at this early stage, their response in terms of increased advertising has not been as successful. One area of continuing concern is the decrease in circulation that resulted with the changes in membership experienced last year. Attempts are ongoing to increase the circulation numbers, and additional efforts are underway to promote advertising.

Analytical Series -- Another strong editorial addition to JCT COATINGSTECH is the series of analytical techniques being organized by Committee member Ted Provder, of the Coatings Research Institute at Eastern Michigan University. "Mass Spectrometry: MALDI and ESI" was published in the January issue, and several other topics are being prepared for upcoming issues. After this series appears in JCT COATINGSTECH, a compilation in text and/or CD may be published that contains all of the articles presented.

Service Life Prediction Proceedings -- The FSCT was selected to publish the proceedings of the 3rd Service Life Prediction program (held in Sedona, AZ, in February 2004). Staff will be working closely with the editors Jonathan Martin, of NIST, and Rose Ryntz, of Visteon, as well as Ray A. Dickie, to publish this book in 2004. This represents the first time that FSCT has served as publisher for work prepared outside of the organization and presents an excellent opportunity for the FSCT to position itself as an industry publisher.

Waterborne Compendium -- Committee member Stan Pruskowki of Rohm and Haas has been diligently organizing and editing a compendium of papers on waterborne coatings technology. To be entitled, Coatings Fundamentals: Waterborne Coatings Technology, this volume will contain state-of-the-art technical information on various topics related to waterborne coatings. Publication is projected for mid-2004.

Paint Calculation Software and Literature -- Through the efforts of Dean Webster, at North Dakota State University, electronic calculation tool(s) and literature for coating parameter calculations have been prepared. Dean is finalizing the program, which will be offered as a member benefit on the FSCT website. This project is expected to be available in the third quarter of 2004.

Marketing

FSCT continues to implement a variety of strategies and vehicles for promoting all major areas of activities: Conventions and Trade Shows (in particular, ICE and the soon-to-be developed programs for the Advancements in Coatings Series), Educational Programs, Membership, and Publications.

ICE -- The benefits of attendee and exhibitor participation at ICE 2004 will be promoted heavily. Marketing vehicles include the spring and summer registration brochures, postcards and mailings highlighting specific ICTC Conferences and Annual Meeting Program sessions, advertising in industry print publications, as well as the broadcast emails. Online registration, hotel reservations, and general information will be offered through the FSCT website.

ICE Sponsorship -- A broad program of sponsorship opportunities has been developed and promoted to exhibitors. The goal is to provide maximum exposure to participating suppliers and to help defray FSCT expenses for many of the activities and functions associated with ICE. Lisa McGlashen, FSCT Trade Show Coordinator, has worked diligently and creatively to expand the types of sponsorship opportunities available and has had early success in attracting sponsors for 2004 programs.

Trade Shows -- In 2004, the FSCT participated in industry events such as the Waterborne, High-Solids & Powder Coatings Symposium in New Orleans, e|5 Symposium of RadTech International, and the Color Pigments Manufacturers Association meeting in Chicago. The two new publications as well as FSCT activities and educational programs were heavily promoted. In addition, the FSCT will share a stand with the British Society at SURFEX in Manchester, U.K. in June.

Membership -- A number of membership promotions have been planned for 2004. In addition to highlighting the benefits of FSCT membership, the FSCT will promote the advantages of Society participation.

Education -- Much effort has been spent in enhancing the promotion of FSCT educational events, in particular the Virtual Learning Conferences, and the Midyear Symposium. A broad program of print and electronic promotions are utilized for each event.

FSCT Website

The FSCT's website continues to be a very effective communication tool for members as well as industry visitors. In October, the site hit an all-time high of over 1,000,000 hits (over 14,000 visitor sessions). The site averages over 15,000 hits per day-up from 12,000 last year. Use of the JCT archives had also increased dramatically as the site becomes more popular.

New features added in 2003 included online registration for FSCT educational events, and downloadable listings from the online Membership Directory in Acrobat[R] pdf format.

To retain the effectiveness and functionality of the website, a comprehensive review and updating of the site is planned for 2004-2005. From a hardware standpoint, much of the original equipment purchased for the site has become antiquated and is no longer supported by the manufacturers. Donna Whitig will be overseeing the installation of hardware upgrades over the next several months. One major enhancement will be switching from hosting the site through an outside vendor, to bringing the hosting in-house. This will improve functionality and decrease costs overall. In terms of software, many of the original programs used to build the site are also outdated. This becomes particularly critical with the online purchasing capabilities provided by the site, and for enhancing the membership area to accommodate the changes in joining/renewal procedures. Upgrades are necessary to retain these functions, as well as many of the database-driven areas of the site. Therefore, a thorough review of the site will be conducted and plans made for ensuring that the FSCT website continues to represent the organization to the worldwide audience in the most effective means possible.

Nominations

The FSCT Nominating Committee is pleased to present the following slate of nominees to Federation Officer, Executive Committee and Board of Directors positions for the year 2004-2005.

President-Elect: Dr. Rose A. Ryntz (Detroit Society), Visteon Corp., Dearborn, MI. (One-Year Term)

Secretary-Treasurer: Dr. Yasmin Sayed-Sweet (Detroit Society), Cook Composites & Polymers, Clarkston, MI. (One-Year Term)

Executive Committee (Society Director): Charles Shearer (New England Society), Stahl U.S.A., Peabody, MA. (Three-Year Term); and Melinda Forbes (Los Angeles Society), Kronos Inc., Fullerton, CA. (Two-Year Term to fulfill term of Secretary-Treasurer nominee).

Board of Directors (Director-at-Large): Charles E. Carncross (Southern Society), Buckman Laboratories, Inc., Memphis, TN (Three-Year Term); and Gail Pollano (New England Society), NeoResins, Inc., Wilmington, MA (Three-Year Term).

Board of Directors (Past-President): J. Dick Mullen (Rocky Mountain Society), Retired, Aurora, CO. (Two-Year Term)

Elections will be held at the October 26, 2004 meeting of the Board of Directors, in Chicago.

Dr. Frederick H. Walker (Philadelphia Society), Air Products & Chemicals, Inc., Allentown, PA., current President-Elect, will assume the Presidency on October 29, 2004, in Chicago.

I thank the members of the Nominating Committee for their assistance in preparing the slate of nominees: Forest Fleming (Piedmont); George Pilcher (CDIC); Walter R. Naughton Jr. (Southern); Chuck Shearer (New England).

David Jack, Chair, Nominating Committee

Actions Taken By the Board

The Board reviewed and approved the following action of the Executive Committee:

That a Real Estate Investment Trust be added as 10% of the FSCT Investment Portfolio.

That the FY2005 Operating Budget be set at Income of $4,099,625, and Expense at $3,036,226.

Proposed Amendments to the Bylaws 

FIRST READING

Voting Alternate Society Director Positions

The Bylaws Committee was requested by the Board to report on the proposal of the Pittsburgh Society to amend the Bylaws and Standing Rules to provide for the voting position of Alternate Society Director.

Following consultation with FSCT Legal Counsel and a review of relevant statutes of Pennsylvania law under which the FSCT is incorporated, it was determined that Alternate Society Directors, acting in the absence of the Society Director, may have the right to vote on issues before the Board if such Alternates are elected in the same manner as that provided for in the Bylaws and Standing Rules for Society Directors.

After due consideration, the Bylaws Committee presented the following resolution for First Reading by the Board of Directors at its meeting of May 15, 2004:

WHEREAS the Bylaws Committee was requested to consider a proposal by the Pittsburgh Society to amend the Bylaws and Standing Rules to provide for the voting position of Alternate Society Director, and

WHEREAS the Bylaws Committee feels that:

(1) Directors' responsibility of attending two Board of Directors meetings annually is minimal,

(2) Directors may participate in said meetings by means other than physically attending, and

(3) This may lead to unnecessary disruption in the continuity in the Board

BE IT RESOLVED that the following revision to the Bylaws Article III, Sect. 3.1 be presented for First Reading by the FSCT Board of Directors at its meeting of May 15, 2004.

The Bylaws Committee does not recommend approval of the proposal.

Freidun Anwari

Chair, FSCT Bylaws Committee

[The proposed amendment was defeated at First Reading by a roll call vote of 17-14, with six Directors absent.]

Coatings Industry Education Foundation

Financial Summary 2003 -- In the calendar year 2003, CIEF had income of $101,164, expenses of $5,743, scholarship disbursements of $57,000, and Roon Awards distributions of $4000. Total assets are valued at $638,309 at the end of calendar 2003 (up from $540,990 at year end 2002).

Financial Comparison vs. 2002 -- CIEF assets are up vs. 2002 by $97,319. This was due to positive performance in our funds. The level of scholarships, Roon awards and expenses were comparable to 2002.

Investment Funds -- The CIEF Trustees changed our fund manager to Vanguard. This appears to have worked out very well in that we expect less churning of our portfolio.

Project Tomorrow -- The 2003 Project Tomorrow activities netted $12,600. This program solicits contributions from companies and individuals. The 2004 Project Tomorrow campaign is just underway--a $2000 contribution has been received to date.

Financial Strategy for 2004 -- About the same income and disbursements will be made in 2004 that were made in 2003. A total of $60,000 in scholarships and fellowship grant money will be distributed in 2004 (vs. $57,000 in 2003). The total amount of money requested by institutions was $102,200, so we have funded 59% of the requests. The Trustees feel that this funding level is responsible given our current financial situation.

Scholarship Recipients: Proposals are received by September of each year from universities requesting scholarship monies for their students. The universities determine which students specifically receive the monies. The schools that received money last year are: California Polytechnic, DePaul, Eastern Michigan, North Dakota State, Southern Mississippi, and University of Missouri at Rolla. The Trustees evaluate the proposals and decide which programs to help fund. The details are available upon request.

Details of the specific funds and scholarships will be presented at the annual meeting in October, but are available upon request.

Bylaws of the CIEF -- At the March 2004 Trustees meeting, the bylaws of the CIEF were reviewed and changes are being considered. The specifics will be discussed in more detail at the annual meeting in October.

Paul S. Sara, President, CIEF

The next meeting of the FSCT Board of Directors will be held on October 26, 2004, in Chicago, IL.