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The Monthly Newsletter of the Council of Industry
August 21st, 2025
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Council of Industry Updates
What's Happening in Your Association
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Member Survey: Tariffs At Least Somewhat Negatively Impacting 80% of Respondents
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Earlier this month, The Council of Inustry conducted a survey to better understand how recent tariffs are affecting our member companies. The big takeaway? Tariffs are having an overall negative impact. When asked how tariffs have affected their businesses over the past three months, a clear majority reported negative impacts: 55% said “Somewhat Negatively” and 25% said “Very Negatively.” Only a small share indicated no impact (15%), and just 5% reported positive effects. Here are some of the other key findings:
- Asked about the effects of tariffs on operating costs half the respondents reported an increase in costs of 1-10%. One in 4 reported an increase of 11-20%.
- The vast majority (85%) reported no change to their headcount as a result of tariffs but the remaining 15% reported reduced headcount.
- 80% reported a higher material costs as a result of tariffs.
- 15% reported greater demand from firms seeking domestic suppliers
- Two thirds (68%) have raised prices to pass along tariff related costs. 62% of those are passing along the majority or all of the tariff costs to customers.
- When asked about their current tariff strategy 35% reported making temporary adjustments. 25% reported they were still developing their strategy. And 30% said they were not changing their strategy despite the tariffs.
- These results highlight the ongoing challenges tariffs pose for manufacturers in our region, with most respondents citing cost pressures and operational disruptions. The Council will continue to advocate for policies that support competitiveness while providing resources to help companies navigate these headwinds.
For complete survey results contact the Council of Industry
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Council Manufacturing Day Events Feature Live Broadcast From Ulster BOCES New Career & Tech School at iPark 87
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The Council of Industry's Manufacturing Day activities will be once again kicked off with a Hudson Valley Focus Live broadcast hosted by Tom Sipos, on Friday October 3rd from 6:00 to 9:00 a.m.
This year's broadcast will be from Ulster BOCES' new state of the art Career and Technical School, located at the iPark 87, the former IBM complex, in Kingston.
Local leaders in manufacturing will be on throughout the broadcast to talk about different topics.
Following the event, there will be an official ribbon cutting for Ulster BOCES' new facility joined by faculty and staff, along with leaders in manufacturing, among others.
Click here to learn more about the broadcast and other Manufacturing Day events!
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Apprenticeship: You’ve Got Questions – We’ve Got Answers
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We all know apprenticeship offers real benefits—building a skilled workforce, accessing grant funding, and taking advantage of available incentives. Whether your firm is new to apprenticeship or has years of experience you have questions about how to make your program better and take full advantage of all the resources available. From small firms with 1 or 2 apprentices to larger firms with dozens, every company wants to make their program stronger and more effective.
Since the Council of Industry began offering the Manufacturing Intermediary Apprentice Program (MIAP) in 2018 we have helped dozens of companies and hundreds of apprentices navigate the apprenticeship path – and we’ve learned a thing or two along the way. This summer we are providing 2 forums for us to share what we have learned with Hudson Valley manufacturers who are both currently apprenticing workers and those who are considering starting a program.
Webinars:
We will be presenting a series of webinars centered on each of the Trades we offer, (Industrial Manufacturing Technician, Quality Assurance Auditor, Electro-Mechanical Technician, CNC Machinist, Toolmaker, Maintenance Mechanic)
Perfect for:
- Companies considering a registered apprenticeship program
- Employers who want to better understand program benefits, incentives, and available support
- Companies who prefer a structured overview with time for Q&A
Click here for a lisClick here for a list of dates and times of dates and times
‘Office Hours’
Experienced Council of Industry Staff will be available on select dates and times to answer questions from employers and/or registered apprentices. Need help with bluebooks, paperwork, incentive or tax credits, or just interested in learning more? Drop in and ask!
Perfect for:
- Registered employers and apprentices looking for quick answers or support
- Supervisors, HR staff, or program coordinators managing apprenticeships who have questions about forms, processes, or next steps
- Companies who prefer live Q&A and direct interaction over a formal presentation
Click here for ‘Office Hour’ dates and times
For more information, contact Emma Olivet, Workforce Development Manager.
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HV Mfg Fall 2025 Edition in the Works! Secure your Ad Space Today
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Work has begun on the Fall 2025 Edition of HV Mfg – the magazine by, for and about Hudson Valley Manufacturers.
Each HV Mfg issue includes articles showcasing local manufacturers, including a company profile, Q&A with industry leaders, workforce development programs, industry innovations more.
The HV Mfg Fall 2025 Issue will feature the Manufacturer’s Resource Guide that includes contact information for elected officials, workforce and economic development agencies and programs, 2 and 4 year colleges, state and federal agencies and departments and more.
HV Mfg is an important tool in our efforts to inform the public of the vital role manufacturing plays in our regional economy and of the important and rewarding careers available in the sector. Advertisers make publication of HV Mfg possible and your support is very much appreciated.
Click here to learn more about advertising
Click here to view the digital edition of HV Mfg Spring 2025.
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Council’s Annual Luncheon and Expo Will Be Held November 21st at the Grandview in Poughkeepsie.
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The Officers and Directors of The Council of Industry cordially invite you to attend our Annual Luncheon & Expo.
Join us on Friday, November 21st at the beautiful Grandview on the river in Poughkeepsie, NY for our annual Luncheon & Member / Associate Member Expo. The Expo opens at 11:00 am and Lunch will follow at 12:15 pm.
We will also recognize the Fall 2024 and 2025 recipients of the Certificate in Manufacturing Leadership.
The Member/ Associate Member Expo will precede the luncheon from 11:00 - 12:15.
There is no charge to be part of the expo, but we require participants to purchase two seats.
Individual Ticket: $85.00
Table of Ten: $800.00
Click here to learn more!
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Lean Training Coming this Fall.
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Lean Simulation & Overview
This full-day Lean Foundational course, led by Vin Buonomo from RIT Center for Qualtiy and Applied Statistics (CQAS) provides a comprehensive introduction to Lean principles, tools, and methodologies.
Designed as a starting point for those interested in Lean certification—including Yellow Belt and Green Belt—this program offers participants a hands-on learning experience to understand the impact of Lean concepts on their operations.
Through a combination of instruction and simulation exercises, attendees will explore the differences between traditional batch manufacturing and Lean manufacturing, gaining practical insights they can apply immediately.
Key Lean tools covered in this course include:
- Types of Waste
- Value Stream Mapping (VSM)
- 5-S and Visual Controls
- Standard Work
- Kanban, Pull Systems, and Supermarkets
- Setup Reduction
- Kaizen Event Training
- Root Cause Analysis
- Culture Change
Instructor Vinnie Buonomo from The Rochester Institute of Technology (RIT).
Location:
DCC Fishkill - 461 US-9, Fishkill, NY 12524
Dates:
October 28, 8:30-4:30
Full Program Cost:
Individual Attendee: $325
Two or More Attendees: $300
Call for non member pricing.
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Lean Six Sigma: Yellow Belt
Yellow Belt is an approach to process improvement that merges the complementary concepts and tools from both Six Sigma and Lean approaches. The resulting approach will have a greater impact than one that centers on only Six Sigma or Lean. Participants will learn a short history of each approach and how they can complement each other.
They will be introduced to the Define, Measure, Analyze, Improve, and Control improvement process and some of the tools associated with each stage.
The following topics will be focused on during the training:
- Resistance to Change
- 5-S and Visual Controls
- Team Building
- Problem Solving Process
- Statistical Thinking
Instructor Vinnie Buonomo from The Rochester Institute of Technology (RIT).
Location:
DCC Fishkill - 461 US-9, Fishkill, NY 12524
Dates:
November 12, 13 & 14 - 8:30-4:30
Full Program Cost:
Individual Attendee: $600
Workforce Grant Information:
This course is being offered in partnership with Dutchess County Community College through a SUNY Workforce Grant, which helps offset the cost and make it more affordable for manufacturers. The $600 registration fee is based on 20 participants; if we have additional registrations, the price may be reduced, and we will be in touch to discuss potential credits.
Call for non-member pricing.
To learn more contact Emma Olivet eolivet@councilofindustry.org
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NOTE: Insight Exchange along with other Council of Industry programs and services will soon require members to log into their Member Compass account.
In this episode of Insight Exchange, Steve Howell, Davide DiGenova, and Nick Watkins from RBT take a deep dive into the newly released One Big Beautiful Bill (OBBB)—a nearly 900-page piece of legislation that will have wide-ranging effects on manufacturers, business owners, and tax planning strategies.
Key Topics Include:
- Updates to bonus depreciation and Section 179 expensing
- The 100% depreciation election on qualified production property
- How the OBBB affects multi-state businesses and state-level tax planning
- Permanency of the Qualified Business Income (QBI) deduction
- Changes to R&D expensing under Section 174
About RBT
RBT CPAs is one of the largest public accounting firms in the Hudson Valley, serving clients with audit, tax, and advisory services. With a dedicated team of experts, RBT helps businesses navigate complex legislation, minimize risk, and identify opportunities for growth.
Learn More
RBT: rbt.com
For more info, visit www.councilofindustry.org
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If you are interested in sharing your knowledge and expertise, please reach out to Johnnieanne Hansen at info@councilofindustry.org.
Insight Exchange Playlist
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Council of Industry's 2025 Annual Golf Outing happening Monday! Thank you Sponsors!
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Thank You Sponsors
Shirt Sponsor - Thank you NRG
Best Ball Prize Sponsor - 1,250
Closest to the Pin Prize Sponsor - Thank you Fisch Solutions
Hole In One - 1,050 - Thank you Elna Magnetics
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Manufacturing Industry News
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Tariff Mitigation Strategies: Options for Manufacturers
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Tariffs are truly “A Tale of Two Cities.” Some manufacturers are celebrating, thanks to higher domestic demand and an opportunity to sell unused capacity. For others, tariffs have significantly hurt business — resulting in painful price increases, inventory valuation challenges, stalled M&A, and reduced demand.
- Bucket 1: Help find low hanging fruit immediately
- Goal: Help confirm you’re not paying a nickel more than you have to, regardless of rates.
- Tactics: Scrub invoices, tax approaches, accounting treatments, currency, etc.
- Deliverables: A roadmap of immediate tasks to execute.
- Bucket 2: Help reduce exposure/current footprint
- Goal: Identify short term investments for margin preservation.
- Tactics: Capacity-driven pricing, cash flow analysis, inventory techniques, warehousing strategies, tariff engineering, etc.
- Deliverables: A profitability/capacity-driven pricing model with dynamic inputs dynamic pricing outputs.
- Bucket 3: Help reduce exposure/reimagined footprint
- Goal: Long-term profitability for next 5-10 years.
- Tactics: Move production closer to markets to reduce border crossings.
- Deliverables: Business case scenarios for board-level long-term strategic planning
Read more at CLA
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How Toyota and Other Lean Cultures Are Leading With AI
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AI-first companies re-orient their core decision-making and operational processes to fully leverage the strengths of AI, adopting what you might call an AI-friendly business model.
Accordingly, whenever a company seeks a new capability, “can AI do this?” becomes the default question. Daron Acemoglu, whose 2024 paper The Simple Macroeconomics of AI, however, predicts that over the next 10 years, only 5% of all tasks currently undertaken by humans will be profitably automated. In an interview with Sloan Management Review editor Kaushik Viswanath, Acemoglu argued that tacit knowledge is essential to every workplace.
Acemoglu’s findings are consistent with what lean leaders have been saying for decades. Uniquely human capabilities are essential to continuous improvement and central to lean’s most important pillar—respect for people. Toyota’s approach to technology, accordingly, has been to never put technology first, but to articulate the need to improve the process and then, before evaluating automation solutions, investigate ways of meeting that need by simplifying the process (e.g., removing unnecessary steps). Taking this step avoids the common mistake of automating waste and leads to more effective and durable technology solutions.
“A lot of companies that I see that are doing concentrated learning on how to use AI are driving that out of continuous improvement teamwork,” says Jamie Flinchbaugh, founder at consulting firm JFlinch and author of People Solve Problems (and a longtime IndustryWeek contributor). “This is because they recognize that adopting a transformative technology is all about experimentation and learning, and thinking about how work is done. That’s the way we should think about how AI comes into our workplace.”
Read more at IndustryWeek
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Making Edge AI Useful for Manufacturing
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Speed and precision are non-negotiables in manufacturing. From identifying equipment defects and ensuring worker safety to adjusting assembly lines, these jobs require split-second decisions made in real time. This is where Edge AI helps. Edge AI performs computations locally at or near the data source, rather than relying on distant servers or the cloud. This localized processing enables real-time responses, like detecting defects, identifying safety hazards or adjusting machine performance, typically within milliseconds.
In manufacturing, if a defective product isn’t caught instantly and continues down the line, even a split-second delay can lead to rework, downtime, or equipment damage. Being split-second faster can prevent these issues by ensuring immediate action. NVIDIA, For example, uses Jetson modules, the company’s small, powerful computers designed to run AI at the edge, to enable real-time defect detection in factories.
Moreover, cameras and sensors analyze products locally, instantly finding flaws and alerting operators to prevent downtime and reduce waste, without relying on slower cloud connections. In another example, Ford collaborated with IBM to leverage computer vision and Edge AI for real-time, on-site vehicle inspections. Using IBM’s Maximo Visual Inspection platform helped the automaker deploy the solution at several plants at multiple inspection points.
Read more at IndustryWeek
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How Firms Spread Good Management
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What is good management, and how is it transmitted across firms and plants? In a recent paper, economists from the New York Federal Reserve Bank use survey and administrative data, coupled with a structural model of management, to explore these questions. The authors show that well-managed manufacturing firms—that is, firms that adopt more structured management practices. not only open and acquire more plants, but also close and sell more plants. Through this process, the firms transmit their management practices to new plants.
The authors use two large-scale surveys to measure management practices: the U.S. Census Bureau’s Management and Organizational Practices Survey (MOPS), which covers manufacturing firms in the United States, and the World Management Survey (WMS), which covers manufacturing firms in thirty-eight additional countries. Both surveys pose a series of questions about three areas of management practices: monitoring, target setting, and people management.
They use the answers to these surveys to create an overall management score for each plant and firm that ranges from zero to one, with higher scores indicating the adoption of more structured management practices. Using the MOPS in conjunction with other data from the U.S. Census, they track plant openings, closings, and acquisitions, enabling investigation of the relationship between the management practices and dynamics of a given firm. They find that well-managed firms in the MOPS exhibit higher plant turnover: they open, close, acquire, and sell more plants.
Read more at the NY Fed
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AI Is Replacing Rungs On The Career Ladder
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Sarah, a marketing director at a Fortune 500 company, recently celebrated her team’s 40% productivity increase after implementing AI-powered content generation tools. Her seasoned copywriters now produce campaigns in hours rather than days, while AI handles routine social media posts and email drafts. The metrics look impressive, but Sarah faces a dilemma: She hasn’t hired a junior copywriter in two years, and her three senior writers are approaching retirement.
This scenario is playing out across industries worldwide. While organizations tout remarkable efficiency gains from artificial intelligence, they’re inadvertently dismantling the career ladders that have traditionally developed skilled professionals. AI could replace more than 50% of tasks performed by market research analysts and 67% of tasks for sales representatives, yet these entry-level roles have historically served as the training ground for tomorrow’s department heads and strategic leaders.
Read more at UPenn Wharton
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Human Error In Cybersecurity: How Leaders Can Prevent Avoidable Attacks
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As AI helps attackers create more convincing phishing emails and deepfakes, user behavior is a major cybersecurity challenge for businesses. In late 2024, Kaseya research found human error is the main cybersecurity hurdle for 89% of firms.
User-related security issues – such as poor user practices and gullibility – was the largest worry (45%), while lack of end-user security training (44%) followed close behind. There are a number of reasons for this, including employees falling for social engineering scams or overriding company guidance to do their job more quickly.
There are “far too many examples” of poorly-designed security systems implemented “in a way that enables and facilitates breaches through employee manipulation”, adds Kai Roer, CEO and co-founder of Praxis Security Labs. Therefore, blaming “user behavior” as the biggest cybersecurity challenge is “a convenient but lazy narrative that shifts focus away from the root causes of risky actions”, says Tim Ward, CEO and co-founder of ThinkCyber Security. “Employees are often blamed for breaches, but organizations rarely ask why mistakes happen in the first place.” He points out that many employees are required, as part of their jobs, to process emails and click on links. “Holding them solely accountable for mistakes in these tasks seems unfair.”
Read more at IT Pro
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Cybersecurity 2028: Your Workforce, Built For The AI Frontier
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Advanced AI modalities are changing how organizations work in fundamental ways—creating opportunities but also introducing uncertainties and risks. For instance, more than one in four AI initiatives have been cancelled, postponed, or failed to scale because of security concerns, and more than one in three organizations indicate their AI capabilities have already been compromised by cyberattacks. The unchecked growth of nonhuman identities fueled by generative AI actually expands the attack surface, creates new targets for threat actors, and leads to a loss of visibility into who or what is accessing critical systems.
Fittingly, AI technology can help Chief information security officers (CISOs) with AI threats. However, instead of traditional operations enhanced with AI, AI is moving to the center of the operating model—evolving into a strategic capability that is redefining how technology and security teams work together and collapsing the distance between business operations and business outcomes. Yet IBM’s research reveals security and operations leaders are living in a house divided, with sentiment split on whether their organizational culture is inhibiting (44%) rather than enabling change (56%).
Read more at IBM Institute for Business Value
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How A Misdiagnosed Bearing Exposed Gaps In Maintenance Culture And Reliability Practices
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A maintenance technician’s misdiagnosis led to a significant equipment failure event at the plant. The case involved a bearing failure on a conveyor that was diagnosed as “it’s the chain, not the bearing.” This misdiagnosis resulted in a snapped shaft, eight hours of unplanned downtime, and a lot of angry people.
The Maintenance Manager was getting yelled at by both the plant manager and production manager. The entire maintenance organization had a black eye. While the damage was limited to time and material, the bigger story lies in how such events are managed, and more importantly, how organizations learn and grow from them. The case can be seen as a textbook example of the difference between reactive and proactive leadership in the world of reliability and maintenance.
The incident exposed a deeper issue: the prevailing maintenance culture. The technician’s comment, “It’s the chain, not the bearing,” was not just a technical misstep; it was a cultural symptom. Was this diagnosis the result of guesswork, convenience, or a real analysis? Was there a structured troubleshooting protocol? Was the technician given time to do troubleshooting? Were there pressures to rush the assessment? Had this technician ever been held accountable or trained to validate such assumptions with data? Was this just the way things have always been done? This leads to a critical leadership question: Is the organization truly committed to a reliability culture, or is it stuck in a reactive, run-to-failure mode? If the latter, then expecting precision and accountability from technicians without investing in the right systems and training is both unfair and unsustainable.
Read more at Plant Services
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Marathon Fusion Claims It Can Turn Mercury Into Gold While Creating Clean Energy
A startup energy company, called Marathon Fusion, may soon be living out the dream of alchemists from the Middle Ages. In a recently released paper posted to the arXiv preprint server, the company outlines a method to turn an isotope of mercury, 198Hg, into 197Au, the most stable form of gold. They say this can be done while also creating an abundance of clean energy via nuclear fusion in a tokamak reactor. Maybe even more impressive is the amount of gold they say this process will create—2 metric tons of gold per gigawatt of thermal power per year, according to their simulations.
Marathon Fusion's idea is to make both gold production and energy production economically viable through this new method. They believe this will help facilitate the deployment of fusion energy at scale and, ultimately, to achieve enough energy abundance to make an impact on climate change. The method involves incorporating mercury in the reactor's breeding blanket—a layer surrounding the plasma chamber—which is usually made from lithium. This new mercury/lithium alloy blanket is designed to maximize (n, 2n) reactions, which absorb one neutron and release two. The result is optimized tritium fuel production and gold production. When the fast neutrons created by this process bombard the 198Hg, the 198Hg is converted into unstable 197Hg, which then decays into stable 197Au.
Read more at Phys.org
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Humanoid Robots Race, Play Football, Crash And Collapse At China’s ‘Robot Olympics’
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Last weekend, at the World Humanoid Robot Games in Beijing, spectators were more enthralled by machines playing five-on-five football than they have ever been by China’s men’s team. The games saw more than 500 humanoid robots from 16 countries compete in a variety of sports. The opening ceremonies featured boxing displays, a parade and choreographed dance routines (their human co-performers had more verve, but the robots were impressively synchronised).
China hopes to lead the world in robotics, and so far it is winning: of the 60 or so listed makers of robotic eyes (ie, cameras and sensors) and hands, muscles and joints, 48 are Chinese. The robot-makers enjoy backing from the Communist Party and a well-oiled supply chain. Eventually, however, as the state pours investment into humanoids, they must also find a market for these devices. That does not yet exist, even if the bots can play a decent match of footy.
Watch at Live Science
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