CI Newsletter | January 19, 2023

Posted By: Taylor Dowd (deleted) Newsletters,
The Bi-Weekly Newsletter of the Council of Industry
January 19, 2023
Council of Industry Updates
What's Happening in Your Association
Busy Winter and Spring Schedule of Programs at the Council of Industry 
The Council of Industry has a busy winter/spring schedule of training and networking already scheduled for members as well as a few in the works. 
Our training programs are designed by and for manufacturers to build skills in incumbent workers and make firms more productive and efficient. Network events and webinars are organized for members to share best practices and get up to date on compliance and regulatory issues. 
On the training side we are working with SUNY Orange, Dutchess Community College and RIT to deliver both Yellow Belt and Green Belt training. The Green Belt training provides individuals with the tools necessary to clearly define a problem, gather and analyze data and information, and implement improvements that can be sustained. The results have been outstanding, with many organizations reporting significant financial benefits, enhanced customer satisfaction, and reduced costs. Yellow Belt is an interactive training where each group of participants will identify opportunities within their respective work areas and ways to improve those areas utilizing taught problem-solving tools. The teams will present their identified work area opportunity and suggested solutions to the group. 
Also planned for the spring is another offering of the Certificate in Manufacturing Leadership program (CML). For over 25 years, the CML program has offered attendees a range of leadership skills through a series of concentrated courses in problem solving and decision making, best practices and continuous improvement, positive motivation and discipline, financial management, business communication and more. Participants who complete the required courses are presented with the Certificate in Manufacturing Leadership by the Council of Industry. Also in the works is a SolidWorks Essentials training program that teaches participants to use the automation software to build parametric models of parts and assemblies, and how to make drawings of those parts and assemblies. 
On the network and webinar side we have programs scheduled with the Department of Labor to discuss manufacturing workforce development, Bond Schoeneck & King to learn more about Cybersecurity and the NY Shield Act, Jackson Lewis to get and labor law update. There are several others in the works on PFOAs, New York State Energy Policy and more.  
If there is a topic you think your fellow members would be interested in – either training or networking – please don’t hesitate to contact us with your suggestions. Chances are if it's an issue for you it's and issue for other members as well.  
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Cybersecurity Resources for Manufacturers 
Manufacturers increasingly rely on data, information, and technologies to run their operations. Defending these assets from disclosure, modification, disruption, or improper use is a challenging but critical aspect of operating a business. Small and medium-sized manufacturers (SMMs) are especially vulnerable to a cybersecurity event: they often are less prepared for an event, have valuable information that is not well protected, are willing to pay ransoms in order to avoid costly disruptions, and act as entry points to other valuable targets. But because SMMs often have less complex operational needs and IT/OT infrastructures, they may be able to quickly take some basic steps to defend their information and systems.  
NIST has put together some resources to help SMMs implement cybersecurity measures. The manufacturer’s guide to cybersecurity for small and medium-sized manufacturers has some easy steps any manufacturer should be able to implement to quickly and cost effectively address cybersecurity risk. 
Manufacturing Sector News
World Economic Forum Releases Global Risk Report Ahead of Davos Meeting 
What are the global risks facing business leaders in the new year? It’s a question the World Economic Forum attempts to answer each year ahead of its annual meeting. And with “Davos” starting next week, the Swiss organization on last week revealed its 2023 risk survey results As 2023 begins, the world is facing a set of risks that feel both wholly new and eerily familiar. 
“We have seen a return of ‘older’ risks – inflation, cost-of-living crises, trade wars, capital outflows from emerging markets, widespread social unrest, geopolitical confrontation and the spectre of nuclear warfare – which few of this generation’s business leaders and public policy-makers have experienced. These are being amplified by comparatively new developments in the global risks landscape, including unsustainable levels of debt, a new era of low growth, low global investment and de-globalization, a decline in human development after decades of progress, rapid and unconstrained development of dual-use (civilian and military) technologies, and the growing pressure of climate change impacts and ambitions in an ever-shrinking window for transition to a 1.5°C world. Together, these are converging to shape a unique, uncertain and turbulent decade to come.” 
PFAS in New York State: Current Regulations and Anticipated Effects on the Manufacturing Industry
Per- and Polyfluoroalkyl Substances (PFAS) have been a hot-button issue over the past several years and are gaining industry attention. Federal and state regulations are continuing to evolve and the applicable treatment or remediation standards are very nuanced. Federally, the EPA has been slow to implement actionable regulations because of the lack of technical information on these emerging contaminants. New York State has been proactive in implementing limits and is leading the way to protect public health. It’s important to understand what these chemicals are and the historic applications in order to know why and where these are showing up. 
World Enters 'New Age' of Clean Energy Manufacturing: IEA 
The global market for key mass-manufactured technologies including solar panels, wind turbines, electric vehicle batteries, heat pumps and electrolyzers for hydrogen will be worth around $650 billion a year by the end of the decade, the IEA predicted in a report. The figure is more than three times larger than current levels but is conditional on countries fully implementing their energy and climate pledges, it added. Related jobs in clean energy manufacturing will more than double from 6 million to nearly 14 million by 2030, the agency said.  
"The energy world is at the dawn of a new industrial age –- the age of clean energy technology manufacturing," the IEA said. But the Paris-based organization warned that the concentration of resource extraction and manufacturing poses risks to supply chains. 
America Has a Huge Manufacturing Labor Shortage—and its Education System is Nowhere Close to Plugging the Gap 
Manufacturing in general is in a war for talent. If we do not act now, the U.S. national defense and economy will be compromised. To grow the skilled manufacturing force, the creation of a more robust K-12 education system that emphasizes STEM subjects – science, technology, engineering and math – while simultaneously providing vocational programs and apprenticeships for all students is important. But U.S. STEM education lags many other countries. Out of 37 Organization for Economic Cooperation and Development (OECD) countries, the U.S. ranks seventh in science and 25th in mathematics literacy, falling behind countries such as Japan, South Korea, Estonia and the Netherlands. 
Yet there are attempts to ready workers through several initiatives. Organizations such as The American Society of Mechanical Engineers (ASME), STEM For All Foundation and Next Wave STEM aim to provide equitable access to STEM education programs to students of all backgrounds in order to build a new generation of skilled workers. 
The Lean Principle That Deserves More Respect 
“Respect for people” is one of the most critical lean principles, and also one of the most misunderstood. If not practiced, developing a lean culture of continuous improvement is impossible. Most everyone will nod in agreement and swear alignment with this principle. Few are going to argue against respecting each other. But our understanding is typically superficial and likely doesn’t change current behaviors.  
One reason for our sketchy understanding of “respect for people” is its soft-skills connotation (even though it is essential for hard bottom-line results). Also, common definitions of respect don’t provide a direct connection to lean practices. “Challenge” is often used to clarify the meaning of “respect for people.” We respect an employee’s innate value by challenging them to improve themselves and company processes. This provides more insight into the type of respect required to build a continuous improvement culture; however, what are the specific behaviors that enable this type of challenging environment? 
JP Morgan Chase PMI: Global Manufacturing Downturn Continues 
The JP Morgan Global Manufacturing PMI™ reading was 0.2 points lower at 48.6% in December. It was the fourth month in a row with a reading below 50, indicating sustained deterioration through the latter part of the year. Output continued to decline in December but at a slower rate. Looking at the sector breakdown, the drag is in intermediate goods. Output in consumer and investment goods rose. Demand is weakening. New goods orders were down across all three sectors, however. New export orders declined, as well. Manufacturing jobs decreased for the second month in a row. Twenty-two of 29 countries with data had PMI readings indicating contraction in their manufacturing sector. 
Eyeing a Recession, Small Businesses Look to Boost Revenue and Inventory 
Small business optimism fell in December, according to the National Federation of Independent Business. It found that more business owners were pessimistic about business conditions over the next six months, because of higher costs, difficulty finding workers, and overall economic uncertainty. Meanwhile, businesses that sell goods are still facing supply chain problems.  
“I’m still seeing things slow in Europe, with my factories,” said Catherine Reynolds, who handles imports for Palmetto Tile Distributors in South Carolina. “I’m still seeing some closures going on, and slower production rates.” Reynolds said a lot of the factories she buys tile from keep announcing that they’ll be raising prices. As a result, she’s been trying out a new tactic. “When I get the increase notices from my factory, I try to order deep,” Reynolds said. “So that I have really healthy inventory, so that price increase, when it does hit, doesn’t hit us nearly as fast or as hard.” 
Four Reasons To Prioritize DEI During A Recession 
There has been a lot of research that shows diverse and inclusive workplaces help boost innovation, attract diverse talent, increase employee retention and ultimately lead to higher revenue growth. Companies that keep their foot on the gas pedal in terms of their DEI initiatives may be better prepared during a recession to not only survive but thrive.  
One recent survey found that during the Great Recession of 2007 to 2009, companies with inclusive workplaces, as rated by historically disadvantaged groups, outperformed companies where employees lacked inclusivity by nearly four times. When morale is lowered—such as by mass layoffs or economic uncertainty—DEI efforts can make leaders, teams and employees better equipped to address these issues. 
Globalization Isn’t Dead. But It’s Changing. 
The global economic ties that have shaped supply chains over several decades are being rerouted, with widespread implications for the flow of goods. Companies that have long sought out cheap, efficient and young markets are increasingly looking for safety and resilience from disruptive shocks to global networks. Diversification in production and sourcing has resulted in lost efficiencies, triggering higher costs for households and businesses, and profit-margin pressure for companies.  
In boardrooms, it means more attention to risk and a widening landscape of potential crises. Experts say the shifts are reshaping globalization and shifting global trade numbers suggest the direction of goods exports is changing. There are also signs that unraveling economic ties may dim the flow of trade. The International Monetary Fund says fragmenting international cooperation could lower economic output significantly over the long term. 
Understanding Some Workforce Trends for 2023 
As workplace trends play a large role in the success of any organization, Gartner has identified what it sees as important issues this year.  
  • “Quiet hiring” will create new avenues to snag in-demand talent - Despite worries about a forthcoming recession and some layoff announcements, Gartner benchmarking data shows that a majority of HR leaders still expect the labor market to get more competitive. 
  • Hybrid flexibility will reach frontline workers. Many organizations have sought to make the workforce-wide experience fair by simply making it equal: mandating on-site work for those who could work elsewhere. More than six in 10 organizations have some sort of on-site requirement for employees whose work can be done remotely. 
  • Pursuit of nontraditional candidates will expand talent pipelines - Organizations are being forced to expand and diversify their talent pipelines due to employees increasingly charting non-linear career paths. These organizations are also faced with an inability to meet talent needs through traditional sourcing methods and candidate pools. 
  • Healing pandemic trauma will open a path to more sustainable performance - The challenges of a global pandemic, including unemployment, supply chain shortages, isolation from family and friends and divisive political fractures created intense stress. In fact, in 2022, employees’ stress and worry grew above even 2020 peaks — nearly 60% of employees are stressed at their jobs every day. 
  • More trends. 
Central Hudson Prioritizing Manufacturing Customers With Economic Development Programs 
Central Hudson offers a suite of economic development programs focused on supporting and expanding the manufacturing sector in the Hudson Valley. Focusing on manufacturing will ensure that our economic development program dollars support an industry that, in general, creates well-paying jobs. The programs, recently approved by the Public Service Commission, can be used for a variety of projects including equipment purchase, building expansion and process improvements. They are also easy to access for Central Hudson Customers also  
There are three principal programs:  
Infrastructure for Manufacturers Program - The Infrastructure for Manufacturers program will help to accelerate the growth of manufacturing capability by targeting former manufacturing buildings and undeveloped sites in our service territory. Grants awarded within this program are reimbursed after project completion. 
Expansion and Retention for Manufacturers Program - The Expansion and Retention for Manufacturers grant program supports manufacturers who are making a new capital investment. Examples of items constituting a new capital investment include but are not limited to the purchase of real estate, infrastructure, acquisition of machinery and equipment, and new energy efficiency upgrades. 
Manufacturing Productivity Program - A matching grant up to $15,000 or 40% (whichever is less) toward the costs incurred by eligible applicants, whose top management commits the time and resources to Lean Manufacturing projects or manufacturing assistance projects which result in eliminating waste and increasing productivity on the shop floor and/or in the office. 
Governor Hochul Outlines Policy Priorities in 2023 State of the State Address 
Last week, Governor Kathy Hochul delivered her annual message to the State Legislature. Her 2023 State of the State address was also streamed live for public viewing. Many of her priorities focused on housing, public safety, and mental health. She also highlighted workforce development initiatives, energy issues, and childcare affordability proposals she would like to tackle over legislative session. The Governor’s State of the State (SOTS) proposals are the first step in defining the Governor’s agenda for 2023. Additional funding details will be outlined in the Governor’s Executive Budget.  
The following overview from Manufactuirng alliance government Affairs Directors Tiffany Latino-Gerlock outlines of some of the SOTS proposals that would have an impact on manufacturers and businesses across New York.  
Upcoming Events
Monday, January 23, 2023
1:00 PM - 2:00 PM (EST)
Interested in the value of Green Belt certification? Looking to learn more about projects, business necessities and requirements.
Please join us for a free information session and discussion with instructor Vinnie Buonomo, Senior Program Manager & Instructor, RIT CQAS. This info session will cover objectives, expectations, FAQ's and benefits of Lean Six Sigma Green Belt Certification. 
Best Practices and Continuous Improvement
Thursday, January 25, 2023
8:30 AM - 4:00 PM (EDT)
Stewart Airport
In this workshop, you will learn the concepts of continuous improvement and the methods used to identify and prioritize problem areas. You will use some of the basic tools used to benchmark, develop, and implement quality and productivity
The Manufacturing Matters Podcast
Manufacturing Matters Podcast:
Jason Giordano
PKF O'Conner Davies
Partnering with a good accounting firm is important for any small business, but it is essential for a manufacturing firm. Accountants do more than tax filing. They can take a comprehensive assessment of your finances and create a forecast through the year to keep your business at a healthy, prosperous state. 
In this episode, Harold King speaks with Jason about the accounting industry, the role of the CPA, and the many financial and strategic issues facing the manufacturing sector.