CI Newsletter February 2025 #55 2.27.2025

Posted By: Harold King Newsletters, CI News,

The Monthly Newsletter of the Council of Industry

February 27, 2025

Council of Industry Updates

What's Happening in Your Association

Zierick Manufacturing President Gretchen Zierick and Marlboro High School Teacher Thomas Fassell Named 2025 Manufacturing Champions.

The Board of Directors of the Council of Industry have announced the 2025 Manfuacturing Champions. This year we are excited to recognize 2 outstanding individuals who, through vision, dedication, hard work, and tireless involvement have helped to overcome some of the many obstacles faced by manufacturers in the Hudson Valley community and in so doing they have made it possible for manufacturers and their employees to prosper.’ Join us in celebrating this year’s honorees at the Champions Award Breakfast and Workforce Developers Expo April 25, 2025 at West Hills Country Club in Middletown.

Gretchen Zierick, president of Zierick Manufacturing in Mt. Kisco, Westchester County, is being recognized for a career dedicated to growing her manufacturing business, supporting workforce development, encouraging and mentoring women in the field of engineering and a strong commitment to the manufacturing sector in the Hudson Valley.

Ms. Zierick began at the company, which was founded by her grandfather in 1919, at the age of 16 as the ‘assistant to the receptionist. She earned a degree in Engineering from Bucknell University and took over as president from her father in 2000. She is the past president of the Precision Metal Forming Association of New York and New Jersey, an active member of the Women in Manufacturing National Association, and a member of the Council of Industry’s Board of Directors.

Thomas Fassell, a Science Teacher at Marlboro High school, was selected in recognition of his outstanding dedication to preparing the next generation of manufacturing and engineering professionals. Fassell founded the Engineering program at Marlboro and has a strong, long-standing collaboration with Council of Industry manufacturing members—including IBM, onsemi, Sono-Tek, President Container, and FALA. He has been instrumental in ensuring that students gain real-world, hands-on experience that aligns with industry workforce needs.

Through his innovative teaching Fassell equips students with critical skills in mechanics, software programming, robotics, electronics and design—all culminating in exciting projects like remote-controlled airplanes and corrugated competitions. Beyond the classroom, his commitment to organizing field trips to manufacturing facilities has provided students with valuable exposure to real-world careers in manufacturing and engineering. Fassell’s dedication to bridging the gap between education and industry has helped shape a strong pipeline of skilled professionals for the Hudson Valley’s manufacturing sector.

Learn more about the Champions Breakfast April 25th

Manufacturers Pitch Pro-Growth Policies in Albany

Yesterday, February 26, 2025, Manufacturers from across the state gathered in Albany to advocate for policies. More than 50 executives from firms, large and small, met with key legislative leaders. Here are some of the focus issues that were discussed:

Workforce Development: Support expansion of MIAP, state funding for the Real Life Rosies TM pre-apprenticeship program, and workforce wrap-around services.

  • Economic Development/Taxes: Support FAST NY investments and expansion of the Excelsior Jobs Tax Credit program, and Tax Parity for all manufacturers.
  • Energy: Support clean energy alternatives, advocate for a cost-effective, reasonable Cap-and-Invest program, and oppose elements of the NY-HEAT Act and current EPR for Packaging legislation; work on a more agreeable solution.
  • Labor: Challenge significant expansion of short-term disability benefits, as well as Paid Family Leave benefits, and support the planned expiration of COVID-19 Paid Leave
  • The timing of advocacy day was important as legislators in the Assembly and Senate are finalizing their ‘One House’ budget proposals that, together with the Governor’s Executive budget form the basis of negotiations for the State’s final 2026 budget that is due April 1, 2025.

Fun fact we learned during our meetings – New York State’s budget has grown by $60 billion in the past 5 years. That is more than the entire budget of 41 other states. USA Spend

DiNapoli: State's Outyear Budget Gaps Grow to $27.3B Through State Fiscal Year 2028-29

In his annual report assessing the proposed Executive Budget, State Comptroller Thomas P. DiNapoli identifies risks and concerns that underscore the importance of taking action to address the trajectory of state spending and improve the state’s structural imbalance, while continuing to bolster the state’s rainy day reserves. Cumulative outyear budget gaps projected by the Division of Budget (DOB) have increased to a total of $27.3 billion through State Fiscal Year (SFY) 2028-29 and state spending is projected to rise at a rate that outpaces revenues.

  • The state has struggled to contain Medicaid costs. A significant change in federal policy or an economic shock might result in having to make decisions quickly relating to healthcare funding. Making prudent financial decisions now and putting Medicaid spending growth on a more sustainable path is in the best interests of all New Yorkers.
  • Similarly, continued efforts are necessary to review the Foundation Aid formula, the largest component of school aid, to allocate resources to districts with the greatest needs while providing stability for school districts planning and ensuring the state’s long-term financial viability.
  • Federal funding is the state’s largest source of revenue. In total, DOB is projecting $93.1 billion in federal receipts for SFY 2025-26. Of this, Medicaid is projected to account for $57.6 billion (61.9%). In total, approximately $70.9 billion (76.1%) of the projected federal receipts are for the provision of healthcare to approximately 8.5 million New Yorkers.
  • While the Executive Budget does not propose extending the higher corporate franchise tax rates, which are to expire at the end of 2026, it includes an extension of the PIT surcharges on high income taxpayers, currently set to expire at the end of 2027, until the end of 2032. While the extent of migration of taxpayers in response to tax changes remains debatable, behavior is less likely to be affected by temporary changes than permanent ones. An early extension of what was supposed to be a temporary surcharge, solidifying high tax rates for another seven years, may alter some decision making.

Read more at the Comptroller’s Website

Energy Corner: Senate Republicans Call for Balance on CLCPA, Propose Energy Cost Relief Measures

As energy costs continue to rise across New York, Senate Republicans are renewing their push for legislation to curb rate hikes and reassess the state’s ambitious climate mandates. The lawmakers argue that the 2019 Climate Leadership and Community Protection Act (CLCPA) has led to skyrocketing utility costs, particularly as energy providers struggle to meet strict emissions targets under an accelerated timeline. Critics, including State Comptroller Tom DiNapoli, have pointed out the Hochul administration’s failure to meet its own climate benchmarks. Republicans have introduced several bills aimed at delaying mandates and easing costs, including:

  • S.1927 (O’Mara) – Reopening the Indian Point Energy Center to restore clean, reliable nuclear power.
  • S.1031 (Rolison) – Requiring the Public Service Commission to calculate the cost of CLCPA mandates for each ratepayer and providing credits to offset them.
  • S.1167 (Mattera) – Repealing the All-Electric Buildings Act, which bans gas and propane systems in new buildings.
  • S.2712 (Stec) – Conducting a cost analysis of CLCPA mandates and delaying them by a decade.
  • S.3652 (Ortt) – Blocking electric vehicle mandates and preserving consumer choice.
  • S.5436 (Griffo) – Prohibiting power plant closures before equivalent renewable capacity is available.

Republicans also outlined a broader “Creating Lasting Affordable Energy for New York” plan to delay CLCPA implementation by ten years, provide ratepayer relief, restore local control over renewable energy siting, and expand incentives for solar and hydroelectric power.

Read more at Finger Lakes 1

Reach out to the Council of Industry and NRG today to develop an energy strategy tailored to your business needs.

Engineering Career Pathways Topic of Council of Industry, ASME and SUNY New Paltz Engineers Day Event

The Council of Industry, American Society of Mechanical Engineers, and SUNY New Paltz’ School of Science and Engineering held a networking event as part of National Engineers Week February 19th at SUNY New Paltz. New Paltz Engineering students met with Council member engineers (some who are SUNY Alumni) to learn more about careers with local manufacturers and best practices for job searches, interviewing and networking. Participing industry engineers were treated to tours of the department’s facilities and labs – including the Center for Additive Manufacturing – and got a sneak peek at several student senior design projects. (The Senior Design Expo at the college is May 2, 2025)

The Council of Industry would like to thank all our member firms who participated:

Advance Testing

Allendale Machinery

Ametek Rotron

Central Hudson

Community Manufacturing Solutions

Council of Industry

Elna Magnetics

Lamothermic

Onsemi

PC Construction

Putnam Precision

Sono-Tek Corporation

Star Kay White

Walden Engineering

Learn more About the School of Science and Engineering at SUNY New Paltz

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For information on advertising in this and other CI publications contact Harold King (hking@councilofindustry.org)

Manufacturing Industry News

Tariff Changes Are Coming Fast – 6 Tips On How Manufacturers Can Prepare

The first three weeks of President Donald Trump’s new term have proven that rapid-fire executive orders can force every business to adapt at the same lightning speed. The current administration isn’t treading lightly; many signals points to a swift and forceful pivot in U.S. trade policy. For decades, the manufacturing world thrived under a stable globalization framework. Now, Trump is determined to reverse that trend. Having long observed China’s mastery of tariffs, trade barriers and industrial policy—even praising their industrial dealmaking back in 2011—he’s set his sights on replicating those tactics at home.

Even If there’s a 20% chance that some of these tariffs could stick around for more than a year, the financial impact could be enormous. Ambrose Conroy, Founder and CEO of Seraph says that manufacturing and supply chain leaders, the key is preparation, not paralysis. He suggests six“no-regrets” moves you can and should consider today. The are: (1) Assemble a response team. (2) Analyze your profitability (3) Map out your supply chain. (4) Review your contracts. (5) Develop a tariff sensitivity model. (6) Document operational knowledge.

Read more at Industry Week

BDO Report: More Manufacturers Looking to M&A, JVs for Growth in 2025

Chief financial officers of manufacturing companies are looking to shift into a more offensive posture in 2025, a new report from accounting and advisory firm BDO said. And one in four expects that those efforts will produce profitability growth of at least 10%. Responding to BDO’s 2025 Manufacturing CFO Outlook Survey late last year, 68% of finance chiefs at firms with $500 million to more than $3 billion in revenue said they are forecasting revenue growth this year, which would be an eight-point increase from 2024. Helping drive those expectations: 22% plan to make an acquisition (versus 15% in 2024) and 25% expect they’ll enter into a joint venture or alliance of some sort (up from 14% last year).

Those growth plans come after a 2024 in which many manufacturing executive teams needed to focus more on operations than they had expected to coming into the year, said Bill Pellino, a BDO tax principal and leader of the firm’s National Manufacturing Industry Group. Year-ago forecasts of improving demand often didn’t materialize but input costs remained high. The work done to balance those factors should pay off this year, Pellino noted.

Read more at IndustryWeek

How AI Is Changing The Game In Manufacturing 

Manufacturing isn’t just figuring out how to scale artificial intelligence—it’s got a serious head start. This is the sector that’s already been through a digital transformation with Industry 4.0, connecting devices, integrating IoT, and turning data into actionable insights. They’ve spent years navigating the messy realities of digitization, and now they’re applying those lessons to AI in manufacturing. But research in a new SAP industry report shows that while manufacturers’ hard-earned expertise in data, integration, and scaling can accelerate their own AI transformation, only 16% of manufacturers have integrated AI so far, versus 25% across all industries.

  • If Industry 4.0 was about connecting the dots, AI is about predicting what’s next. With AI, the manufacturing industry is already seeing game-changing results across its operations. AI isn’t just making processes faster—it’s making them smarter:
  • Predictive maintenance: Analyzing sensor data to forecast equipment failures, preventing costly downtime.
  • Quality assurance: Using AI-powered vision systems to catch defects on production lines in real time.
  • Energy management: Optimizing energy use by predicting demand, improving both sustainability and cost efficiency.
  • These applications aren’t just solving operational headaches—they’re delivering tangible value. And while they’re rooted in manufacturing, the logic behind them is universal. Every industry has bottlenecks that could benefit from smarter, data-driven solutions.

Read more at Forbes

Learn more about the Council of Industry’s AI Executive Roundtable 

Applications Of Quantum Computing In Manufacturing

Maximizing efficiency in manufacturing requires optimizing complex, multivariable problems. Until recently, the problem was lack of data, but going forward, the Industry 4.0 revolution means the challenge is becoming how to use the data. Tools such as simulation and digital twins help, but sometimes the problems are just too large and too complicated for classical computers to solve in a reasonable timescale.

A quantum computer applies the principles of quantum mechanics, which lets each computing “bit” have states between 0 and 1. This leads to a more probabilistic form of computing, capable of performing calculations many times faster than even the fastest of today’s supercomputers. These quantum computers can solve problems too complex for so-called classic computing and greatly compress the time needed to solve very large problems that would otherwise need months or years of processing time. Four areas stand out for future quantum computing trends in manufacturing:

  • Supply chain optimization
  • Materials science
  • Product and process innovation
  • Predictive maintenance
  • Supply chain optimization

In manufacturing sectors like aerospace and automotive, supply chains are long and complex, especially when taking into consideration the many tiers that exist. Industry 4.0 technologies are creating a “smart supply chain” awash with data, and quantum computing may be the only way to optimize the movement of materials and products.

Read more at Advanced Technology Services

LAST CHANCE - Book Before 3.7.2025

8 Ways To Change Your Thinking And Foster Innovation

If you’re feeling stuck — whether in your business, your personal life or your growth — you’re not alone. But here’s the good news: you have the power to rewire how you think and approach challenges. Whether you’re an entrepreneur trying to scale your business, a professional looking to advance your career or someone wanting to build more meaningful relationships, the ability to think differently is your secret weapon.

Training your mind to think differently is a powerful tool for personal and professional growth. By shifting your perspective and challenging established thought patterns, you can unlock new strategies for business growth, improve relationships and achieve your goals. By incorporating these strategies into your daily life, you can train your mind to think differently, opening up new possibilities for business innovation and stronger relationships. As you practice these techniques, you’ll gradually develop a more flexible, creative mindset that can tackle challenges from fresh angles and uncover opportunities others might miss. Here’s 8 ways to cultivate a mindset that fosters innovation and creativity.

Here are 8 ways to cultivate a mindset that fosters innovation and creativity - at Smart Brief

Leaders: Sometimes Your Best Move Is Calling A ‘Time-Out’

In sports, time-outs are a strategic weapon. Super Bowl teams don’t just go full speed from kickoff until the clock runs out; they pause at the right moments to regroup, recalibrate, and regain momentum. In business, the same principle applies. High-performing teams know when to stop, reassess, and make adjustments before forging ahead. Yet, in our relentless, always-on work culture, calling a time-out can feel counterintuitive. But the most effective teams don’t just move fast. They move with purpose. And that requires knowing when to slow down.

A time-out recalibrates and ensures you’re moving in the right direction. Velocity, after all, is not just speed; it’s speed with direction. Without thoughtful direction, we risk climbing the ladder of success only to realize it’s leaning against the wrong wall. This is the difference between playing a finite game—focused on short-term wins—and an infinite game, where the goal is enduring growth, adaptability, and purpose. Many organizations default to the former, focusing on immediate metrics, quarterly targets, and rapid iterations. The best leaders, however, recognize that time-outs are an investment in lasting success.

Read more at Fast Company

COO-to-CEO Succession Planning: 5 Tips for Middle-Market Manufacturers

The progression from COO to CEO has long been a primary pathway in the C-suite. This is particularly true in the automotive supply base and manufacturing operations, where operational experience is highly valued. This contrasts with industries like consumer products, where sales and brand management play a more significant role in executive leadership. One challenge for smaller companies building succession plans is a simpler business structure limiting ownership’s ability to test executives with different products, production, or market-facing challenges. Therefore, the path for succession planning is often not well-honed or disciplined.

In 2023, 57% of new S&P 1500 CEOs were promoted from COO or president roles, a jump from 43% in 2022, according to a report from Spencer Stuart. A successful transition requires a lot of transparency between the board, the CEO, and the COO candidate that begins even before the COO is hired or promoted into that job. Here are five ways to make a transition successful in middle- and lower-middle-market companies.

Read more at IndustryWeek

Evolving KPIs for Supply Chain Management

Key performance indicators (KPIs) are constantly in flux. This is espcially true since the pandemic. To see how they have evolved, RXO recently released a report, The Logistics Professional’s Guide to KPIs. The research study, conducted in collaboration with research firm Qualtrics, aims to equip shippers and carriers with current industry benchmarks for critical transportation metrics – from on-time delivery to primary tender acceptance. The report reveals how shippers and carriers have changed their approach to evaluating and managing KPIs, including:

  • Shippers are more data-driven — 86% of shippers reference their logistics KPIs at least weekly (up from 79% in 2022), with 45% of shippers referencing them daily (up from 32%).
  • A growing need for an industry standard — 87% of shippers and 90% of carriers agree there should be set KPI industry standards, up from 78% and 74% in 2022, respectively.
  • Performance benchmarks are slightly more lenient — Industry performance standards for core transportation KPIs (on-time performance, payables, tender acceptance, etc.) are generally consistent with 2022, but underlying data shows a tendency to be a bit more forgiving.
  • Being a shipper-of-choice can enable better rates and more capacity — 95% of carriers said inefficient shipping practices impact the rates they give to shippers, and 99% of carriers take a shipper’s KPI expectations into account before agreeing to move a shipment.

Read more at Material Handling & Logistics

America’s Labor Shortage: Manufacturing Among The Most Impacted Industries

The COVID-19 pandemic caused a major disruption in America’s labor force—something many have referred to as "The Great Resignation." In 2022, more than 50 million workers quit their jobs, following the 47.8 million who did so in 2021. In 2023, this trend gradually subsided, with 30.5 million workers resigning as of August. The U.S. Chamber is closely monitoring trends in job openings, labor force participation, and quit rates affecting industries nationwide. Manufacturing is one of the industries most significantly affected by these trends.

The manufacturing industry as a whole faced a major setback after losing roughly 1.4 million jobs during the onset of the pandemic. Since then, the industry has made significant strides toward recovery, making a concerted effort to address job vacancies. While durable goods manufacturing has seen a more substantial recovery compared to nondurable goods manufacturing, as of January 2024, a gap persists, with 622,000 total manufacturing job openings yet to be filled. On the contrary, the construction industry faces a labor surplus. The number of unemployed workers with experience in this industry exceeds the available job openings, with an average of 383,917 job vacancies per month in 2023, while the monthly average of individuals with experience in this field seeking employment amounts to 480,333.

Read more at The US Chamber

Expressive Robotic Lamp Is A Pixar Fantasy Come To Life

Despite the countless ways that robots can improve our everyday lives, many people remain skeptical about incorporating these mechanical creatures into their day-to-day activities, especially at home. If you engineer a robot that mimics the size and stature of a human, then it will remind people of “The Terminator.” If you design a machine with big eyes and a digital smile, then it will be seen as little more than a child’s toy. If you create a robot that takes its form and function from a familiar animal, then people will be horrified when you attach a flamethrower to its back. So, what’s the right answer? How do we create a world where robots and humans engage effortlessly?

The answer to this conundrum might be found in a 1986 Pixar short film called "Luxo Jr." For those unfamiliar with the historic computer-animated film, it depicts two desk lamps as they interact with each other and the world around them. The short film has no dialogue, and the emotions and intentions of the lamps are conveyed through nonverbal behaviors. Apple seems to have taken direct inspiration from this classic movie with ELEGNT, a new smart lamp that interacts with its human users in new and expressive ways.

Read more at Plant Services

Watch Luxo Jr. on YouTube

More Headlines

New Empire Center Report – NY Businesses Should Ask: What Would Micron Get? – Empire Center

Manufacturing Sector Shows Signs Of Life – Marketplace

NAM's 2025 Industry Tour To Highlight Manufacturing Kicks Off At Armstrong In Ohio – NBC4 (Columbus)

Hydrogen Power Gaining Traction Across Mobility SAE International

Autonomous AI Agents Are Amazing—And Scary – Fast Company

Why Your Culture Depends On Correcting Bad Behavior – Radical Candor Blog

Manufacturing Institute’s Carolyn Lee Delivers State of the Manfuacturing Workforce – Manufacturing Institute

Cheeky Craftsmanship: A Man 3D Scans His Butt To Construct Custom Stool – Plant Services

NEW PODCAST EPISODE OUT NOW!

Season 4 Ep 11:

Thomas DeMayo, Partner at PKF O’Connor Davies

Click Here To Listen!
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