CI Newsletter | January 18, 2024

Posted By: Harold King CI News,

The Bi-Weekly Newsletter of the Council of Industry

January 18, 2024

Council of Industry Updates
What's Happening in Your Association
Council of Industry, Manufacturing Alliance Push to Zero Out Tax on State’s Pass-Through Manufacturers  

As you may know, manufacturers organized and operated as a federal 'C' Corporation have enjoyed a zero percent tax rate in New York State since 2016. This applies to 'C' Corp manufacturers only. The Council of Industry and the Manufacturing Alliance Tax Parity Initiative goal is to extend the zero percent manufacturers tax rate to all manufacturers and not just C corporations. We believe ALL manufacturers in the State spur business investment and growth and thus deserve the same tax consideration. We are arguing for pass-through entities (S corporations, proprietorships, LLCs, and partnerships) to be equally afforded the zero percent tax rate.  

We are asking the governor and key legislators to include this provision in both the executive and one house budget proposals. If your company is organized as a pass-through entity and would like to add your voice to the initiative please you can do so by sending a letter to Governor Hochul asking her to include this proposal in the State Budget.  

Email Harold King for a draft letter  

2024 Manufacturing Champion Nominations Open 

The Council of Industry's Manufacturing Champions Award is presented annually to individuals and/or organizations that “Through vision, dedication and tireless involvement have worked to overcome some of the many obstacles faced by manufacturers in the Hudson Valley and in so doing they have made it possible for manufacturers and their employees to prosper.”

This year’s awards will be presented at the Champion's Breakfast and Workforce Developers Expo April 26th at The Villa in Middletown.   

Past Champions include owners of manufacturing businesses, key employees, teachers and educators, economic development leaders, educational institutions, economic development organizations elected officials and agencies supporting the manufacturing workforce pipeline. Follow the link below for a list of past champions. 

The nomination form is here 

Registration Open for Spring 2024 (In Person) Certificate in Manufacturing Leadership Program 

For more than 26 years, the Council of Industry’s Certificate in Manufacturing Leadership program has offered attendees a range of leadership skills through a series of concentrated courses. Participants who complete the required courses are presented with the Certificate in Manufacturing Leadership by the Council of Industry. All classes will be held at DCC Fishkill from 8:30 – 4:00.  

  • Fundamentals of Leadership – February 28 & March 6th 
  • Problem Solving & Decision Making – March 19 or 20 (To be confirmed) 
  • Environmental Health & Safety Essential – April 3 
  • Effective Business Communication – April 17 
  • Human Resources Management Issues – May 8 
  • Making a Profit in Manufacturing – May 22 
  • Best Practices & Continuous Improvement – June 5 
  • Positive Discipline & Motivation – June 11 

Learn more and register here 

For information on advertising in this and other CI publications
contact Harold King ( for more information
Manufacturing Industry News
Manufacturers Are Adopting Tech, Diversifying Talent—But They Need to Step It Up 

There’s a widening gap between the Industry 4.0 haves and have-nots. Medium and large manufacturers who have invested in new tech are reaping the results and going back for more. Meanwhile, smaller manufacturers are putting off taking the plunge. That’s among the takeaways of MAGNET’s 2023 Manufacturing Survey, which picks the minds of manufacturers on pressing industry issues.  

MAGNET is Northeast Ohio’s Manufacturing Extension Partnership. While the results come from manufacturers throughout that region—including Cleveland, Akron, and Youngstown—they tell a tale that resonates beyond those borders. Among the key takeaways: Leaders are investing in their businesses, but many are also exploring a sale. The gap between Industry 4.0 haves and have-nots is growing. Strides to develop manufacturing talent are encouraging—but insufficient. 

Read more and link to the survey at Industry Week  

Leader Strategies For An Evolving Workforce 

Leadership development has emerged as a cornerstone for organizational resilience and growth in an era marked by rapid technological advancements and shifting market dynamics. The landscape of the modern workplace is evolving at an unprecedented pace, with predictions from the World Economic Forum indicating that 44% of core skills will undergo significant changes by 2027. This shift poses a unique set of challenges and opportunities for today's leaders, who are now tasked with navigating their teams through these uncharted waters. 

The responsibility of leaders extends beyond merely reacting to these changes; it involves proactively shaping and guiding their teams toward a future that is still taking form. There's an evident shift towards a new paradigm of "human" leadership that values authenticity, empathy, and adaptability. Leadership in this context becomes more than a title; it transforms into a journey of continuous adaptation, learning, and strategic foresight. Leaders can use these practical strategies to navigate change, enhance employee engagement, and cultivate a culture of continuous learning and innovation. 

Read more at Forbes 

World Economic Forum Report Outlines Troubling Risk Factors for 2024 

The World Economic Forum’s Global Risks Report 2024, released on January 10, warns of increased risks due to a number of factors. “An unstable global order characterized by polarizing narratives and insecurity, the worsening impacts of extreme weather and economic uncertainty are causing accelerating risks – including misinformation and disinformation – to propagate," said Saadia Zahidi, managing director, World Economic Forum, in a statement. 

The report recommends focusing global cooperation on rapidly building guardrails for the most disruptive emerging risks, such as agreements addressing the integration of AI in conflict decision-making. However, the report also explores other types of action that need not be exclusively dependent on cross-border cooperation, such as shoring up individual and state resilience through digital literacy campaigns on misinformation and disinformation, or fostering greater research and development on climate modelling and technologies with the potential to speed up the energy transition, with both public and private sectors playing a role. 

Read more at Material Handling & Logistics

Does The CHIPS Act Help the Wrong Companies? 

The CHIPS Act promises to boost U.S. competitiveness, innovation and national security with multi-billion-dollar funding for semiconductor manufacturing, leading-edge technology programs and advanced R&D. A commendable goal of course, but the CHIPS Act is helping the wrong companies. The dilemma facing U.S. semiconductor companies is well-known. The U.S. makes only 12% of the world's chips, a steep decline from the 1990s when it produced 37%. And in the more critical and profitable advanced designs, foundries in Asia produce over 90% of these chips. This geographic imbalance became all too obvious during the pandemic when significant supply chain disruptions had a major impact on the U.S. economy.  

I am fully aligned with the goal of strengthening American manufacturing and supply chains, enabling U.S. companies to compete more effectively and reverse these trends. What’s wrong with this picture? The CHIPS Act funding is going to the nation’s largest chip companies, the same companies that lost their competitive edge to TSMC and Samsung in the first place. At best, this funding might help these large companies catch up to their Asian counterparts, rather than help smaller U.S. companies that provide the innovation behind key technologies of tomorrow to manufacture domestically.  

Read more at Industry Week

Protecting IP in the Age of Industrial Espionage 

According to research from the CERT Insider Threat Center at Carnegie Mellon University, although only 12 percent of the cases in their insider threat database are defined as theft of intellectual property (IP), these incidents are among the most damaging types of insider attacks. The average potential damages for such incidents range between $29 million and $42 million, with some trade secrets valued at up to $1 billion in research and development costs.  

Cybercriminals are getting smarter and their tactics more sophisticated when it comes to stealing intellectual property and sensitive company information. They're finding new ways to sneak into systems and swipe crucial data, from innovative designs to company communications. This article isn’t meant to be just an alarm bell; but a practical guide that’s been carefully designed to help you bolster your company’s cybersecurity efforts and practices. We’re tapping into the know-how of ethical hackers to show manufacturers how they can beef up their defenses.  

Read more at 

The Failure of Veev and the Future of Factory Built Housing 

Veev, a tech-enabled prefab home building company known for its “plug-and-play” homes, is undergoing liquidation after an “abrupt cancellation of capital-raising initiative.” The announcement of Veev’s closure comes as a shock to many, as the company initially resonated with investors and reached unicorn status last year. Veev is a real estate technology and development company that designs and builds prefabricated homes that don’t require a traditional construction process and come packed with built-in smart-home technology. Instead of building from the bottom up, Veev homes are comprised of preexisting components that are assembled wherever a home is being built. 

Formerly known as Dragonfly Group, Veev is a real estate technology and development company that designs and builds prefabricated homes that don’t require a traditional construction process and come packed with built-in smart-home technology. Instead of building from the bottom up, Veev homes are comprised of preexisting components that are assembled wherever a home is being built. 

Read more at Builder

Six Sigma Methodology Can Optimize Supply Chain Quality and Efficiency

It may come as a surprise to learn that most companies have some form of defect in 10% of their orders. This is a real number that represents not only an economic loss, but also potential damage to a company’s reputation. In a business world that has become more competitive than ever, supply chain quality and efficiency are crucial components in reducing order defects, minimizing costs and ensuring customer satisfaction. 

A solution that has become increasingly popular for optimizing supply chain processes involves the use of Six Sigma methodology. Renowned for improving quality and efficiency, Six Sigma can transform your supply chain. This article will take you through four vital Key Performance Indicators (KPIs) and illustrate the positive impact Six Sigma can have on supply chain management and logistics operations. 

Read more at Material Handling & Logistics

The Rise of Visualization Software and HMI Tech in Accelerating Digital Transformation 

Enterprises face several challenges related to digital transformation. Connectivity is a significant problem due to legacy technology silos, differing data formats and a lack of interoperability. Digging into connectivity issues, in many instances, machines on the plant floor have air gaps, making it extremely difficult to extract data to move processes to the cloud to perform analytics, derive intelligence and add business value. Cost is another legacy barrier to digital transformation, as these initiatives often require significant investments in technology, enterprise level licensing, specialized talent and improving infrastructure. 

There are multiple reasons why air gaps exist. One might be intentional security measures to isolate devices, preventing them from establishing an external connection with other computers or network devices. Air gaps could also exist because there is no network switch connecting IT and OT devices, keeping them from talking to each other. In many cases, air gaps exist due to the lack of standards and APIs that enable systems to interface with each other. 


‘Windshipped’ Offers a Vision of an Alternative to Commercial Trucking in Hudson Valley 

The 40-minute movie, “Windshipped” follows two-masted, 64-foot long, steel-hulled schooner Apollonia as it hauls cargo up and down the Hudson River, bringing locally produced products downstream to New York City, then back up with goods such as coffee beans for local roasters. The idea is to provide a carbon-neutral alternative to commercial trucking in this densely populated area. Since 2020, the Apollonia has transported over 200,000 pounds of cargo by wind, tide, and current (with a little bit of diesel, used entirely for docking). On the land side, transportation is provided by cargo bikes powered by human alone. 

Moving cargo by sail is, of course, nothing new. In 1832 there were an estimated 1,200 sloops at any given moment on the Hudson River, and steam power hauled goods up and down the river until well into the 20th century. But Apollonia’s skipper Sam Merrett believes that, especially with the latest tracking technologies and a rising demand for sustainable transportation, the sail freight industry is poised for a comeback. 

Read more at Supply Chain Brain


Front-Line Leaders: The Most Overlooked Role in Lean Transformation – IndustryWeek 

Workplace Trends Leaders Should Watch in 2024 – EHS Today 

India Facing Surprising Shortage of Factory Workers – Supply Chain Brain 

Best of 2023: Top 10 News Stories Impacting the Industry – Plant Services 

Gen Z Passion Toward Manufacturing ‘More Prevalent’ Abroad – 

AI, XR and Data: Manufacturing Technology Predictions for 2024 – IndustryWeek 

Where Manufacturing Execution System (MES) Provides the Most Value – Automation World 

Jobs, Manufacturing Data Suggest That the Economy Continues Cooling– WSJ 

Pentagon Renews Push to Build More Weapons – Inside Defense 

Upcoming Programs
Discussions on The State Of Manufacturing in the Hudson Valley

Join us for a discussion led by the President of The Council of Industry, Harold King, to determine the current state of manufacturing in the Hudson Valley.

The program will include a brief presentation on current issues facing the sector followed by a facilitated discussion for all attendees to voice their opinions and outlooks on the current state of their business, predictions for 2024, and the challenges and opportunities that they have noticed.

This information will be utilized in discussions with lawmakers as the 2024 Budget process and Legislative Session unfolds in Albany and Washington DC. 

The Third and final session is Friday Janaury 19th from 3:00 - 4:00 PM.

Register for Session 3

Jack Effron, Former CEO & Current Co-Chair of EFCO Products
Click Here To Listen!