The Monthly Newsletter of the Council of Industry
November 21, 2024
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Council of Industry Updates
What's Happening in Your Association
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Happy 10th Annual National Apprenticeship Week (November 18-22, 2024)!
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National Apprenticeship Week (NAW) is a nationwide celebration where industry, labor, education, and government leaders showcase the successes and value of Registered Apprenticeship for re-building our economy, advancing racial and gender equity, and supporting underserved communities. NAW is an opportunity to highlight how Registered Apprenticeship, a proven and industry-driven training model, provides a critical talent pipeline that can help to address some of our nation’s pressing workforce challenges.
In the Hudson Valley, the Council of Industry leads the Manufacturing Intermediary Apprenticeship Program (MIAP). MIAP is an employer-led program to help manufacturers upskill their workforce utilizing New York State Department of Labor registered manufacturing apprentice trades. Apprenticeship has two basic elements, On-the-Job Training (OJT), consisting of a skilled employee person capable and willing to share their experience with an apprentice, in a hands-on manner, and Related Instruction (RI), the learning of more theoretical or knowledge-based aspects of a craft. This program makes apprentice training accessible to all manufacturing firms in the region.
Learn more about Council of Industry’s Registered Apprenticeship Program
Listen to our Podcast with NYS DOL Commissioner Roberta Reardon
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TOMORROW! 2024 Annual Luncheon and Expo November 22nd in Poughkeepsie – Thank You Sponsors!
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The Annual Luncheon & Member Expo will be held tomorrow - Friday, November 22nd at the Grandview in Poughkeepsie. Our keynote speaker is Ken Girardin, Director of Research for the Empire Center for Public Policy, Inc. He will speak on election results and the current fiscal climate in New York State. The Empire Center for Public Policy, Inc. is an independent, non-partisan, non-profit think tank based in Albany, New York.
At the Luncheon we will recognize the Fall 2023 and 2024 Certificate in Manufacturing Leadership recipients. The Member Expo will precede the luncheon from 11:15 to approximately - 12:15.
The event is made possible by the generous support of sponsors.
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The Council of Industry Mournes the Passing of Christopher Capone, Former President and CEO of Central Hudson
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Christopher M. “Chris” Capone, 62, of the Town of Clinton passed away on November 14, 2024, at Mid-Hudson Regional Hospital, Poughkeepsie. Capone worked with Central Hudson for some 2 ½ decades and in early 2023, he agreed to delay his planned retirement to assume the role of CEO with a focus on further stabilizing the company’s billing system. This task he took on with grace and humility which went a long way toward rebuilding customer and community trust.
He has served on boards and committees for various community organizations including the United Way, Mid-Hudson Workshop for the Disabled, Children’s Home of Poughkeepsie, and was on the grants Committee at the Community Foundations of the Hudson Valley. Capone was serving as a member of the Advisory Board of the Food Bank of the Hudson Valley and a member of the Marist School of Management Advisory Board at the time of his passing.
Read The Obituary
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Energy Croner: What is La Niña Weather and How is it Impacting Energy? -By Dylan Haas, NRG
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As the holidays approach, most people are concerned with how weather might affect their travel plans. However, businesses must also consider how weather can impact their operations. Weather not only influences logistical aspects of running a business but also affects the bottom line, as supply and demand volatility drives price fluctuations in energy markets.
This is why a La Niña year matters. A La Niña pattern can cause average temperatures across the contiguous U.S. to be hotter or colder, with varying regional impacts. In the New York region, a La Niña typically brings cooler and wetter conditions, often accompanied by greater volatility in the polar vortex. With forecasts predicting a warmer winter overall and a La Niña pattern in play, we can expect warm temperatures interspersed with periods of colder, wetter weather.
Dropping temperatures drive-up demand, prompting businesses to heat their facilities using more energy and natural gas. This surge in demand can strain the energy and gas systems, requiring careful management and potentially leading to higher prices. At the same time, available supply diminishes as storage reserves are drawn down, leaving less cushion for future winter weather events. As a result, wintry weather can cause short-term price spikes while also creating lasting impacts on the market and increasing future risks.
Winter doesn’t have to be stressful for energy-intensive businesses. As a COI partner, you have access to energy and gas risk mitigation strategies that extend beyond typical business capabilities. Taking proactive steps before winter hits can reduce future risks and prepare your business for the volatility inherent in energy markets. COI gives you opportunity to work with NRG to build a plan to manage your gas and power needs.
NRG is forecasting that this will be among the top 10 warmest winters on record. However, the New York region could still experience more storms and colder weather than in recent years.
Reach out to the Council of Industry and NRG today to develop a winter energy strategy tailored to your business needs.
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Manufacturers to Trump: Slash Regulations First
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An ‘unscientific’ IndustryWeek poll of readers last week listed eight priorities from the Trump campaign’s list of priorities and asked readers to choose their No. 1 priority for the new administration. Business leaders, especially those in manufacturing, have long complained about the regulatory state’s rules that hinder production, and reducing regulations was the most popular response on the survey. Closing the border, lowering corporate taxes and imposing tariffs on incoming goods were the other policies to hit double digits.
More interesting were the poorer performers. Manufacturers were more interested in general regulations than a new round of higher trade charges on goods imported from China. President Joe Biden left in place most of the tariffs on China that Trump enacted in his first term. On the campaign trail throughout the past two years, Trump has promised as much as 60% tariffs on Chinese goods. Nearly 10% of survey takers called that a No. 1 priority, almost exactly half as many as who said regulation cuts should come first.
Read More at IndustryWeek
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Manufacturing Industry News
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U.S. Industrial Production Falls. Not All Was Due to Strike and Hurricane Disruptions
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October came with a strike at Boeing and hurricanes that disrupted activity, but the fact of the matter is the slump in industrial production is bigger than these one-off factors and output is not yet seeing relief from lower interest rates. In fact, a supplemental note in today's release clocked the drag from hurricanes as a drag of just 0.1 percent. It is an unfortunate commentary on the state of affairs that the best that can be said about October industrial production is that the decline of 0.3% is a bit less than the 0.4% drop that was the glum consensus expectation . Yet even this modest consolation turns out to be a hollow one after noting that last month's 0.3% decline was revised lower to report an even bigger drop in September output of 0.5%.
The Federal Reserve's base year for industrial production is 2017 and output set such that 2017=100 for the index. The October reading is 102.3. In the years since 2017, total industrial production has grown less than 3%. For manufacturing production, the backdrop is worse. The October reading there is 98.5, meaning output is actually down since 2017. The weakness here transcends politics; at its zenith during the past 15 years, manufacturing output never exceeded a reading of 102. Manufacturing production fell again in October just as it has in three out of the past four months.
Read More at Wells Fargo
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Don’t Worry About Manufacturing Jobs. Worry About Manufacturing Productivity
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The change in labor productivity in U.S. manufacturing grew steadily throughout the post-war era until 2010, and since then has slid. Let me say this again: U.S. manufacturing is becoming less productive. Does anyone think this is a problem? Anyone? Certainly, not many – if any elected officials. And the economic pundits tell us we’re in the midst of an automation boom that is disrupting the labor force: The Rise of the Robots! The Second Machine Age! The World Without Work! But it’s more like the decline of the robots, the first machine age, and a world with inefficient work.
Maybe one reason for the stagnation in manufacturing productivity is that, according to the National Science Foundation, just 23 percent of U.S. manufacturers were engaged in process innovation, which improves how things are manufactured. And, as ITIF has found, China leaves the United States in the dust when it comes to robot adoption, both in number of robots adopted per 10,000 workers and in wage-adjusted expectations. In fact, as figure 3 shows, China installs 12 times more manufacturing robots than would be expected given its wage levels, while the United installs only 73 percent as many as we would expect. At this rate, we could see Chinese manufacturing productivity exceed America’s in a decade.
Read more at ITIF
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Five Ways Manufacturers Can Prepare Now for a Changing Tariff Landscape
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Trade policy promises to be high on President-elect Donald J. Trump’s list of things to do when he enters office early next year. Tariffs, most notably aimed at China, were a key talking point during his campaign and an issue with potentially huge consequences for manufacturers. That said, many unknowns remain: What kinds of tariffs? When? What products will be targeted? Will China be the only country under a microscope?
Despite the many unknowns, manufacturers can do some prep work now to react more swiftly and smartly once the tariff landscape becomes clearer. Here are a few of the suggestions offered by Jeremy Tancredi, partner in West Monroe's supply chain practice; Dan Swartz, international tax services principal, Crowe; and Gregory Husisian, partner at Foley & Lardner LLP, during IndustryWeek’s latest Production Pulse video.
Read more and Watch the full presentation for greater detail on these takeaways and additional suggestions.
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Industry 4.0 (IoT) Network Segregation for Manufacturers
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When integrating new smart machinery into your production floor, it is crucial to consider the implications of connecting it to your main network. Instead of plugging it directly into the primary network, implementing IoT network segregation is a highly effective strategy. By creating a separate network segment for the new machinery or all your machines, you can enhance security and minimize the risk of cyber threats. This approach not only protects sensitive data and critical systems but also allows for better monitoring and management of the new devices. Utilizing technologies such as VLANs and firewalls can further safeguard your network, ensuring that your production enhancements do not compromise overall operational security.
The Internet of Things (IoT) or Industry 4.0 has revolutionized the manufacturing industry. It has brought about increased efficiency, improved product quality, and enhanced operational visibility. However, with these advancements come new challenges. One of the most pressing is the need for robust IoT security. This is where IoT network segregation comes into play. It's a critical strategy for manufacturers to protect their systems and data from cyber threats. Network segregation involves separating IoT devices into different network segments. This limits the potential spread of malware and reduces the attack surface for hackers.
Read more from Council Associate Member Fisch Solutions
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Leveraging Smart Factories To Adopt Data-Driven Approaches
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In a recent report on the State of Smart Manufacturing, the skilled worker shortage and deploying and integrating new technology are among the top internal and external obstacles to growth manufacturers anticipated for 2024. However, with 94% of manufacturers expecting to maintain or grow their workforce through the adoption of smart technologies, it’s clear that smart factories hold the key to addressing many of these challenges.
At their core, smart factories use Industry 4.0 technologies to collect, share, and analyze real-time data from machines, devices, and production systems. This data enables management to monitor efficiency, address operational issues, and continuously improve productivity. Smart factories oversee the entire production process—from machinery and supply chains to operators on the shop floor. By integrating tech such as cloud computing, big data analytics, sensors, and the Industrial Internet of Things (IIoT), smart factories securely centralize data, providing more informed decision-making.
Read more at Smart Industry
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More Manufacturers Are Investing in XR Technology
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Manufacturers in a variety of industries are slowly adopting extended reality (XR) technologies like smart glasses and virtual reality headsets, according to a recent survey conducted by ABI Research. More than two-thirds of manufacturers claim to have some level of XR activity. “The value of XR to organizations has been known for years, especially in areas like training, remote workforce enablement and collaboration,” explains Eric Abbruzzese, research director at ABI Research.
“However, the barriers to that value have also been well-known and remain. Device cost, integration concerns and confusion around offerings are most common.”
While XR is in the early stages of adoption, Abbruzzese says the technology can improve equipment performance and quality levels. Other benefits include remote maintenance, interactive training and reliable knowledge capture or sharing.
Read more at Assembly Magazine
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From Production To Precision: How AI Is Reshaping Manufacturing
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While globalization has pushed the availability of goods around the world and lowered their cost in significant ways over these past many decades, the impact of globalization is also felt in regions where manufacturing was previously a mainstay of the local economy. The use of AI is bringing a wide range of innovations to the manufacturing industry that not only improves the quality and availability of goods, but also the ability to bolster manufacturing efforts in regions where AI can augment otherwise high cost of labor or availability of materials.
AI is helping to make manufacturing processes more reliable, efficient, cost effective, and repeatable, giving factories more uptime, driving down the cost of goods, and reducing issues relating to labor shortages and staffing challenges. The smart factory can’t be realized without AI, since it takes intelligence to be smart.
Read more at Forbes
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Combining GenAI and Generative Design for Automation System Development
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The integration of generative AI (GenAI) into tools such as cloud-based SaaS (software-as-a-service) products are driving dynamic transformation in the industrial automation space. The emergence of ChatGPT and a host of other GenAI breakthrough platforms opened the flood gates of potential applications for large language models (LLMs) trained on publicly available information and the standard prompt-response interaction pattern within industrial technologies. Since then, a number of partnerships have been and are being formed between industrial automation providers and GenAI platforms to develop tools designed to assist automation system developers.
These collaborations have developed prototype tools focused on creating an evaluation framework to assess and improve the responses generated by AI in the context of industrial automation. Such tailored AI solutions aim to improve productivity in control system design, expedite code creation, answer product questions, assist with debugging and generate innovative ideas. Using GenAI for generative design, a longstanding approach in various tools, is experiencing a significant evolution with the integration of GenAI. While generative design itself is not new and has long used traditional AI to enhance system and product design, the introduction of GenAI brings a new dimension by incorporating human-in-the-loop capabilities. This evolution is transforming how engineers and manufacturers conceptualize, create and optimize automation technologies.
Read more at Automation World
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Reducing Waste: 5 Tips from an Operations Leader
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With inflation keeping the cost of raw materials high, it has become more important than ever for manufacturing companies to reduce waste as much as possible. Not only is this strategy good for the environment, and the company’s bottom line, but it can also boost employee well-being and morale. Innovative approaches to waste reduction can involve material and time optimization, AI integration, workflow streamlining and talent development.
Here are five ways to help prevent waste at your company from Ronald Joy, Vice President of Corporate Development at World Emblem...
Read more at Industry Week
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Understanding and Calculating Scope 3 Emissions in Industrial Manufacturing
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As sustainability pressures mount, industrial manufacturers are increasingly required to provide Scope 3 emissions data. These emissions stem from the products you manufacture and become part of your customers' carbon footprint. With many businesses striving for net-zero targets, being able to deliver accurate Scope 3 data is crucial to remaining competitive and supporting your clients’ sustainability goals, while staying within your budget.
In carbon accounting, emissions are classified into three categories: Scope 1 (direct emissions from your operations), Scope 2 (indirect emissions from energy use), and Scope 3, which encompasses all other indirect emissions throughout your value chain.
For manufacturers, Scope 3 emissions primarily fall into two areas:
● Upstream emissions: Related to the production and transport of raw materials and components.
● Downstream emissions: Occurring during the transportation, use, and disposal of your products by customers.
Your products become part of your customers’ Scope 3 emissions, meaning they rely on you for accurate data to meet their own reporting obligations.
More companies are committing to net-zero goals and regulatory standards for carbon emissions are tightening. Customers increasingly factor environmental impact into their procurement decisions, and accurate Scope 3 data from suppliers like you is essential for them to report their own emissions. By providing transparent, reliable data, you strengthen your market position and ensure that your products meet the growing demand for sustainable solutions.
Failure to report Scope 3 emissions could result in lost business, as environmentally conscious clients shift to competitors with better transparency and sustainability practices.
Read more at From Council Associate Member Lethal Ventures
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Spot the Robot Dog’s New Edge: Navigating Complex Environments With Human-Like Agility
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Spot, developed by Boston Dynamics, is a four-legged robot designed for autonomous operation in diverse environments such as industrial complexes and underground facilities. It has advanced sensors and navigational technologies to traverse challenging terrain and overcome obstacles. A recent advancement in its capabilities includes integrating foundation models, which enhance Spot’s ability to interpret and interact with its surroundings more effectively. These AI-driven models utilize extensive data sets to provide Spot with a deeper contextual understanding of its environment, improving its operational effectiveness in executing tasks safely and efficiently.
Spot is equipped with five stereo cameras, which are central to its ability to navigate diverse environments. These cameras provide the depth data necessary to generate detailed 3D maps of the surroundings, allowing Spot to handle common obstacles such as stairs and forklifts effectively. However, its daily operations also expose it to more unpredictable challenges. From navigating slippery floors to maneuvering around moving objects, Spot must adapt its path in real time to the complexities of its environment.
Read more at Interesting Engineering
See Spot run… and perform industrial tasks
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