A One-Year Report Card for AM&T

Our success is evaluated by the impact we have on manufacturers we assist. This impact is determined through a third-party survey process, conducted quarterly. Following is a summary of results as reported for July 2014-June 2015:

• $107 million - Increased & retained sales
• $5.6 million - Cost savings
• $4.7 million - Investments
• 948 - Jobs created/retained
• 4.8 out of 5 - Customer satisfaction
• $163 million - Total Impact
• 132:1 - ROI (based on Federal/State/Client Funding)

Congratulations to the staff and our partners, and thanks to the hundreds of companies in the Southern Tier who have allowed us to assist them to improve and sustain their performance, competitiveness and growth.

Our integrated, comprehensive approach, applied to the whole value chain, can make a difference. Call us, we can help.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Leaders, Principles and the Pursuit of High Performance Teams

By Art Petty

“In high-performance teams, the leaders managed the principles and the principles managed the teams.” – Carl Larson and Frank LaFasto via Jim Highsmith in Agile Project Management-Creating Innovative Products.

Larson and LaFasto in their assessment of high performance teams offer us a profoundly powerful and simple to comprehend answer to the question of how to support the emergence of effective teams: clear, strong, actionable, livable principles beget an environment for effective collaboration and innovation.

Every high performance team I’ve experienced as a participant, a sponsor or an outside advisor, was governed by an overarching set of principles or values that formed and framed the culture. And while good words alone don’t create success, the combination of the leaders and participants living and acting according to those words everyday made things work.

On successful teams, the team leaders…and ultimately the participants eat and drink the principles for breakfast, communicate them constantly and most importantly, they live them in how they collaborate, problem-solve and challenge themselves and their team members forward in pursuit of success.

And since as we all know, even the best of teams face dark days when nothing goes right, the guiding principles serve as bedrock for self-reflection and guidance for navigating the way forward.

There’s a cautionary tale here. As Highsmith warns us, “Grand principles that generate no action are mere vapor.” When engaging with an organization for the first time, I make it a habit to understand a firm’s values, and all too often, what I find are nice words…unarguable in their intent, that serve only to occupy space on a wall in a conference room. It’s a wholesale failure on the part of the leadership of an organization, when the guiding principles aren’t a visible part of everyday life.

Teams are a fact of life. We execute strategy via projects. We innovate on teams. We develop new products, improve processes and search for ways to better serve our customers via projects and teams. We darned well better figure out how to succeed at this more often than not. Right now, in too many organizations, “not” is winning.

The Bottom-Line for Now:
This intangible, sticky, squishy topic of operationalizing guiding principles or values doesn’t lend itself well to a prescriptive list of steps-to-success. The onus is on you as a team leader, project leader, functional leader, informal leader or organizational leader to ensure that your best efforts are supported by meaningful, actionable guiding principles. If you can’t articulate what those principles are and what they mean for behavior, accountability and performance, then it’s time to take a step back and tackle this issue. The effort will pay dividends going forward. Larson and LaFasto are right…leaders should manage the principles and the principles will manage the team.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Some Recent AM&T Activities Promoting Innovation and Growth in Manufacturing

• Completed a five-day Total Productive Maintenance event with a team of 6 people. The team reduced downtime by 70%, as well as defined and implemented autonomous maintenance and standardized work for operators, and preventative maintenance for maintenance employees.
• Conducted a one-day open-enrollment Lean Thinking and Value Stream Mapping training session for nine people.
• Conducted a multi-day Customer Service Value Stream Mapping event with a team of seven people. It is anticipated that when implemented, the plan will result in improved customer satisfaction and reduced wastes including process rework, over processing, expediting, rescheduling and changing priorities, etc.
• Conducted a four-hour Lean Thinking training session focused on identifying and improving production and administrative wastes. The training was attended by eight people.
• Conducted a presentation to sixteen Seniors at a local high school promoting manufacturing careers and developing an awareness of skills and training requirements that will meet manufacturing needs of today and the future.
• Conducted a five-day Inventory Accuracy improvement event with a team of eight people. It is anticipated that when fully implemented, the improvement will include a significant increase in inventory accuracy and reduce part shortages, and ultimately, improve delivery performance.
• Conducted an eight-hour Lean Thinking training session focused on identifying and improving production and administrative wastes. The training was attended by thirty people.
• Conducted a five-day Order-to-Delivery Value Stream Mapping event with a team of eight people at a contract manufacturing company. It is anticipated that when fully implemented, the plan will result in improved on-time deliveries and reduce wastes.
• Conducted an ISO 9001:2008 Internal Audit at a company located in Rochester. Minor findings were noted in the summary report and their Quality Management System was deemed compliant and effective.
• Conducted an ISO 9001:2008 Internal Audit at a company located in Horseheads. There were minor findings and a summary report was prepared. Their Quality Management System was deemed compliant and effective.
• Conducted an ISO 9001:2008 Internal Audit at a company located in Colliersville. There were minor findings and opportunities for improvement noted and summarized in a report. Their Quality Management System continues to be fully compliant and effective.
• Completed ISO 9001:2008 Internal Auditor Training at a company located in Elmira. Seven employees were trained as internal auditors and performed a mentored audit. The team identified minor non-conformance and opportunities for improvement. They prepared a summary report and all the supporting documentation. Their QMS was deemed compliant and effective.
• Provided Lean Mentoring to a company located in Stamford, by assisting with a Kaizen event for this spring.
• Led workshops for sixteen would-be entrepreneurs in Buffalo and Ithaca. Part of a series of pre-seed workshops coordinated and facilitated by AM&T, the events were hosted by the Center of Excellence Bioinformatics & Life Sciences at the University of Buffalo, and by Cornell University’s Center for Advanced Technology and Institute of Biotechnology. These week-long workshops begin and end with a day of intensive work by 6-8-person teams that are assembled to focus on the commercialization potential of each of the entrepreneurs’ ideas. The teams continue to work during the intervening week -- researching markets, competition, distribution, and many other aspects of each potential start-up business. The workshops culminated with each team presenting their conclusions to a panel of experienced industry professionals and investors.
• Developed and updated articles about regional manufacturers to highlight their capabilities in a monthly business-to-business newsletter.
• Participated in a team that put together a proposal for submission under the URI grant application to establish the Center for International Business Assistance Center to be created at SUNY Binghamton.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Study: Manufacturers Lagging In Effort To Attract Women

The Chicago Tribune (7/22) reports on a study released 7/21 by the NAM-affiliated Manufacturing Institute that calls on US manufacturers to draw on the “full power and potential” of women to improve the industry’s global competitiveness. The study, which also had input from Deloitte and the APICS Supply Chain Council, found that women account for just over a quarter of manufacturing jobs but rarely ascend to executive positions, “even though they make up nearly half of the total U.S. labor force,” the Tribune notes. The study cites problems including manufacturers’ lackluster recruiting and retention programs as well as a failure to inform women about careers in manufacturing.

IndustryWeek (7/21, Putre) notes that the new report is titled “Minding the Manufacturing Gender Gap” and is based on survey responses of 600 women “working across all levels of manufacturing.” Many of the respondents said there is a double standard in an industry that favors men, including in pay, with women workers receiving less than their male counterparts in the same job. The study recommends that manufacturing try to recruit more women by tapping into “their social networks; retaining them through mentorships, better pay and more flexible hours; and fostering girls’ interest in manufacturing careers as early as fourth grade,” IndustryWeek says. “If we can begin to close that gender gap, it will be possible to simultaneously close the skills gap,” said Gardner Carrick, the Manufacturing Institute’s vice president of strategic initiatives.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

10 Reasons Employees Quit

By: Adrienne Selko

1) Bad Boss
A Gallup poll of more than 1 million employed U.S. workers found that the top reason employees quit their jobs is because of a bad boss or immediate supervisor. To have a toxic relationship with the person an employee reports to undermines the employee’s engagement, confidence and commitment, explains Susan Healthfield, an HR expert.

2) Boredom
Once employees are bored with their jobs then trouble begins. A survey by Alpin finds that 50% of employees say once they start thinking about leaving, they put in less effort. Gallup estimates that actively disengaged employees cost the U.S. $450 billion to $550 billion in lost productivity per year.

3) Relationships with Co-workers
Research from the Gallup organization found that of the factors that indicates whether an employee is happy at their job is having a best friend at work.

4) Inability to Use Skills
When employees use their skills and abilities on the job they feel a sense of pride, accomplishment, and self-confidence. If an employee can’t see a path to continued growth in their current organization, they are likely to look elsewhere for a career development or promotion opportunity.

5) Disconnect with Company Goals
Employees need to feel they are part of an effort that is larger than just their job. Many managers assume employees know the company’s goals. If they don’t feel part of a company you’ll lose them explains Susan Healthfield, an HR expert.

6) Lack of Autonomy
Workers who believe they are free to make choices in the workplace — and be accountable for their decisions — are happier and more productive.

7) Meaninglessness of Job
This aspect of job satisfaction is especially important to Millenials. A study by the iOpener Institute found this group’s belief in the firm’s economic or social purpose, and pride in the organization and its work, had a strong correlation with job retention.

8) Company’s Financial Instability
Financial instability -- a lack of sales, layoffs, salary freezes - all lead to an employee’s lack of trust, says Susan Healthfield, an HR expert. However if they respect the company’s judgment, direction, and decision making, they will stay, she says.

9) Lack of Recognition of Job Performance
The Aon Hewitt survey found recognition was the fourth most important driver of engagement globally in 2012, behind issues such as career opportunities and pay. And it’s particularly important for millennials, ranking third globally.

10) Corporate Culture
Does your organization appreciate employees, treat them with respect, and provide compensation, benefits, and perks that demonstrate respect and caring? Your overall culture keeps employees – or turns them away.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Types of MFG DAY Events

There are many ways to celebrate Manufacturing Day. The only real requirement is that an MFG DAY event should be designed to expose more people to present-day manufacturing while showcasing manufacturing in a positive light.

Having said that, there are a few types of events that have been especially successful during past Manufacturing Day celebrations:

• Plant tours
• Manufacturing community events and expos that include many companies
• Job fairs
• Educational fairs
• Celebrations of the manufacturing community

Below are descriptions of what each type of event entails, along with a few tips for making them successful. We hope these examples will help spark some ideas!

1) PLANT TOUR
The most straightforward way for manufacturers to get involved in Manufacturing Day is to host a plant tour. This is the type of event that forms the backbone of Manufacturing Day.

A plant tour is fairly self-explanatory: a manufacturer opens its doors and invites members of its community to observe its operations first-hand. This type of event can be a modest affair held for local students and community members. If your company ever conducts tours for prospective clients, you can model your Manufacturing Day plant tour on your existing walkthrough and presentation.

Tips for Hosting a Plant TourVisitors who attend plant tours are undoubtedly interested in manufacturing. What they likely need help with is figuring out how they can get involved. One of the most helpful things you can do is introduce them to some of the different aspects of running a manufacturing business: accounting, administration, customer service, engineering, estimating, information technology, logistics, purchasing, sales, etc. Don’t limit yourself to the production activity on the shop floor.

2) MANUFACTURING COMMUNITY EVENTS AND EXPOS
Small groups of manufacturers in the same industrial park have pooled their resources to offer successive plant tours at each of their facilities. This is a great way for the local manufacturers to work together to expose visitors to a range of manufacturing work environments and to drum up local interest in the manufacturing segment of their respective communities.

If your business is located in an industrial park or close to other manufacturing businesses, encourage your manufacturing neighbors to get involved in Manufacturing Day. If they are interested, you can collaborate to put together a collective MFG DAY event and jointly approach important community partners such as businesses, schools and political leaders to make sure they take notice of you and MFG DAY.

It has also become common for groups of manufacturers to come together in an expo format away from their shops. Often these expos are organized by community groups such as chambers of commerce and local manufacturing associations.

3) JOB FAIRJob fairs have been organized in dozens of cities by companies in the temporary placement industry. Often these will take place at a manufacturing employer, but they can also take place at the offices of the placement firm with several representative employers participating.

4) EDUCATIONAL FAIR
Educational institutions such as community and technical colleges can be excellent venues for MFG DAY events. Working with local manufacturers to plan career-fair-style happenings can be a great way for high schools and technical colleges to inform their students about careers in manufacturing. Manufacturers can also use these opportunities to share information about their companies with a wider audience of students and parents.

5) CELEBRATIONS
Celebrations of the manufacturing community are springing up all over the country as a way to kick off Manufacturing Day or Manufacturing Week activities. They can be organized by local or regional manufacturing associations and economic development groups. They have even been organized by banks, accounting firms and other businesses that do a significant portion of their business with manufacturers. These can be breakfast, lunch, or dinner events.

The event types listed above are just examples of the most common and successful MFG DAY events. If you have other ideas, please send them to info@mfgday.com and we will share them with other Manufacturing Day event hosts. Tips are always appreciated!

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Associates’ Corner - SEPAC, Inc.

Since 1984 SEPAC, Inc. has been engineering, designing and manufacturing electromagnetic clutches and brakes for a variety of industries including aerospace, military, industrial, energy, robotics and medical marketplaces. SEPAC’s product lines include tooth clutches/brakes, multiple-disc clutches/brakes and spring applied or “fail safe” clutches/brakes. SEPAC also specializes in customer specific models and prototypes.

Located in a 25,000 square foot facility in Elmira, the 35 full-time employees use state-of-the-art equipment and software in order to continually improve and set the company apart from their competitors. By designing custom solutions for the end-user’s exact and often very demanding needs, SEPAC is able to respond quickly in order to provide a high quality product every time.

SEPAC’s quality is something the company takes pride in and being certified to AS 9100C and ISO 9000:2008 shows the commitment to continuous improvement not only within manufacturing, but the company as a whole. SEPAC also works with customers across the globe, therefore they have experience in the export market and are also ITAR registered.

The company recently launched a brand new, mobile-friendly web site which includes a full online catalog with 3D solid models available for download. The Education Center offers Selection Factors, Application Procedures, and extensive FAQs to help new customers determine the right solution for their specific application or to request more information. The goal being to educate their customers in order to save both time and money for the end-user as well as the engineering group at SEPAC.

Some of SEPAC’s customers include: Moog, General Electric, Honeywell, Boeing, Lockheed Martin, Zoll Medical, BAE, Raytheon, SL-MTI, Northrop Grumman, Hardinge, Eaton, and a variety of distributors. SEPAC is always on the look-out for up and coming industries with new potential development opportunities so do not hesitate to contact them with your application needs!

For more information, contact Matt Laser - General Manager or visit their website at www.sepac.com.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Associates’ Corner - Astrocom Electronics

Astrocom Electronics began in 1961 with three employees, and today has over 65,000 square feet of design and manufacturing space in its Oneonta facility.

The company produces communications equipment for a worldwide market that includes   space programs, the military, municipal police departments, and private industry. Products include headsets, microphones, earphone and microphone elements, cables, connectors, and switches.

Astrocom management believes that one keystone to the company’s success is its use of lean manufacturing techniques. One result is the ability to quickly modify existing designs and/or drawings in response to customer needs.

Much of the company’s testing equipment has been developed and adapted by Astrocom engineers. This equipment not only checks electronic parameters, but also simulates field environmental conditions, assessing product performance with regard to vibration, blast, shock susceptibility, light reflectivity, and packaging.

Sound chamber facilities allow testing of design theories and checking of attenuation, frequency response, articulation, and other parameters of prototypes and production units. An ozone chamber is used for accelerated aging of rubber assemblies and cord assemblies.

Computer routing design provides for circuit board masters. Subassemblies such as PC boards, plastic components, and rubber molded items can all be done in plant. Metal stamping is also handled in-house.

All drawings become ink originals and circuit board master prints directly from the computer. With on-site facilities, Astrocom engineers are able to investigate theoretical as well as actual characteristics of any suggested design.

In 2008, Astrocom’s management decided to pursue certification to the ISO 9001:2008 standard, and selected AM&T and DLS Quality Technology Associates, Inc. to assist in the process. In August 2009, Astrocom was successful in becoming certified to the ISO 9001:2008 standard.

For more information visit http://www.astrocom-electronics.com.

See this and other newsletter articles at http://amt-mep.org/files/5414/3862/0390/2015-08.pdf

Visit our website at http://www.amt-mep.org

Growing Sales and Maximizing Profits

If your sales and profits are down or stagnant and you’re not sure what to do about it, this seminar is for you!

Section 1: Is your Company prepared for growth?

Everything starts and ends with the value your company provides. It’s easy to blame the sales team when business is down and profits are eroding, but you can’t sell what you don’t have and you really shouldn’t expect significant sales growth or high profitability if your company, products and services are not meaningfully unique in your target markets.

In this section we will take a comprehensive overview of what consistently drives sales and profitability in successful growth-oriented companies... and how you can do the same.

Section 2: Is your Sales Team prepared for success?

In this section, we will discuss Sales Systems, Processes, Tools, Skills, and Knowledge required to build and manage a high-performance sales organization that can quickly identify and develop high-potential opportunities that will consistently grow your top-line sales and maximize your bottom-line profits.

Who Should Attend

Companies of all sizes and industries. Whether you are a company of 1, or you are a large corporation, the principles in this seminar apply to you.

• Smaller companies should send Owners, Managers and Sales personnel.
• Larger companies should send Company Executives, Sales Managers, and Professional Salespeople.

To get the most out of this seminar, we recommend that you bring a cross-functional team.

Date: Wednesday, September 17, 2014

Time: 8:00 am to 12:00 pm

(Sign-in and full breakfast at 7:30 am)

Location: Owego Treadway - Owego, NY

Cost: $75 ($50 for AM&T Associates)

For questions about this seminar contact:

Jim Cunningham at 607-725-1225

or jcunningham@amt-mep.org

Online Registration Form

or contact Kathy Peacock at 607-774-0022 x308

Registration Deadline: September 10th

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org

Manufacturing Execs Open Pockets, See Growth Ahead

By: Steve Minter, Industry Week

Remaining positive about the U.S. economy and sales at their own companies, manufacturing executives in two new surveys say they will be increasing capital spending to prepare for improving business conditions.

Some 52% of industrial manufacturers in the quarterly Manufacturing Barometer survey conducted by PwC said they plan major new investments in CAPEX spending, up 13 points from the March 2014 survey. The mean investment was expected to be 5.7% of sales, higher than the 5.4% reported three months ago and well above the 4.0% forecast a year ago.

Manufacturers are also increasing shorter-term spending, the survey found, with 75% planning increased operational spending, led by R&D, introductions of new products or services and information technology. More than a third (38%) also plan to be engaged in M&A activity, with 35% planning to buy another business.

"Companies have maintained historically high levels of liquidity and are increasingly looking to put this money to work in strengthening their operations, adding talent and improving technology in a highly competitive marketplace," said Bobby Bono, PwC’s U.S. industrial manufacturing leader. "Plans for R&D spending reached the highest level in the past five quarters, as management teams look to differentiate their products and enhance the value proposition they offer to their customers."

Plans for both domestic and international investment also increased in the MAPI Business Outlook survey conducted by the MAPI Foundation, the research arm of the Manufacturers Alliance for Productivity and Innovation. The U.S. Investment Index, which examines plan for domestic capital investment in 2014, increased from 59 this past March to 67 in the current survey. The Non-U.S. Investment Index, which forecasts investment outside the U.S., rose to 64 in the June survey from 59 in March.

There’s No Place Like Home!

Manufacturers remained positive (65%) about the U.S. economy’s prospects for the next 12 months, the PwC survey found, though that figure dipped 6 points from the last quarter. But industrial leaders were much less positive about the world economy. Some 38% said they were optimistic about the global economy, a drop of 3 points from the previous quarter. The largest group, 57% of the manufacturers who market abroad, said they were uncertain about prospects for the global economy.

Industrial manufacturers expect those positive conditions in the economy to translate to improved sales. Some 77% of the executives polled by PwC say their revenue will increase in the coming year, with the average increase pegged at 5.2%, just off last quarter’s projection of 5.3%. None of the executives expected to see sales dip in the next 12 months.

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org

Manufacturing Day 10-03-2014

Manufacturing Day has been designed to expand knowledge about and improve general public perception of manufacturing careers and manufacturing’s value to the North American economy. In addition, manufacturers will learn about business improvement resources and services delivered through manufacturing extension partnerships.

HOST AN OPEN HOUSE

As a manufacturer it’s your opportunity to:
• Tell your company’s story
• Dispel outdated myths about manufacturing
• Inspire a new generation of manufacturers
• Connect with potential customers in your community
• Learn about manufacturing extension partnerships that can improve your efficiencies and work force skills and boost your profits
• Visit other manufacturers to initiate business relationships and learn what is being made in your community

The core element to Manufacturing Day is the schedule of manufacturer’s open houses. Manufacturing Day producers will promote the open house schedule through general and trade media campaigns which will alert thousands of people to visit manufacturers and see that American manufacturing is a vibrant career path and employers need skilled workers. The event will also make it possible for manufacturers to visit other participating companies in their region that may be potential business partners – either as customers or suppliers.

Register to host an open house at your company

Sign-up to visit other manufacturer’s open house events

www.mfgday.com

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org

Turn Strategy into Action

Competitive Solutions, Inc.

"Become the kind of leader that people would follow voluntarily; even if you had no title or position." - Brian Tracy

Goals provide the focus for organizations to achieve their strategy, but without GOAL ALIGNMENT, employees and departments are disconnected and corporate goals cannot be fully realized.

Employees who understand their individual goals - and how they relate to those of their organization as a whole - will also be more engaged and motivated to play their part within the organization. It is the coordinated, collective efforts of individuals and departments that drive organizational success, as everybody’s energy is harnessed and directed toward common goals.

Employees can only be productive when they know exactly what is expected of them.

Goals that are SMART:
• S - Specific (clearly specify the intended goals)
• M - Measurable (state exactly what the criteria for success will be and how it will be measured)
• A - Attainable (challenging but achievable)
• R - Realistic (employee is willing and able to work towards the goal’s achievement)
• T - Time-bound (clearly defined target date)

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org

Strategic Planning For A Competitive Advantage

Do you have a Strategic Plan? Is it shared with your team members?

Why Strategic Planning is important:
• Aligns your resources around a common vision.
• Provides a tool to help your organization do a better job with:
  - Focusing your energy.
  - Ensuring that all members of your organization are working toward the same goals.
• Assesses your organization’s direction in response to a changing competitive environment.

Strategic Planning is a disciplined approach to answer the following key questions:
• Where are you now?
• Where are you going?
• What needs to be accomplished?
• How do we get there?
• How will we measure progress?

Strategic planning creates a vision of the future that inspires and empowers your team to contribute to meeting your key strategies. By planning proactively, you will more successfully address your customer needs. Your action-plan will allow your operational improvement effort to connect while meeting your overall company strategy. Additionally, your activities and efforts will concentrate on markets where they will have the most impact and are most likely to succeed. Lastly, you are provided with professional, written plans to all team members that are easy to modify when business climate or competitive situation changes.

OUTCOME: A Compelling Competitive Advantage:
• Identifies your most valued customers.
• Defines and improves your organization’s understandings of your customers wants.
• Helps to clarify your competitive strengths and weaknesses.
• Evaluates relations with stakeholders, customers, suppliers, employees and owners.
• Clearly defines the major initiatives that will produce results and grow revenue.
• Identifies new opportunities and markets.
• Captures what your customer values from you.
• Identifies the key metrics necessary to monitor progress.

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org/

Surprise Change To R&D Tax Credit Rules Is Big Help For Small Business

By Dean Zerbe

It is a rare day that small and medium business owners view news from the IRS and Treasury as a good thing. This news is different – different in a big way. The Treasury announced regulations (TD 9666) that will allow companies to take the Research and Development Alternative Simplified Credit (ASC) on amended returns. This seemingly arcane change will mean many more dollars in the wallets of innovative small and medium businesses – money that will be used to create new jobs, expand businesses and keep doors open.

The previous regulations allowed companies to take the ASC only on original returns. This limitation allowing ASC only on original returns is in stark contrast to the regular R&D tax credit (and just about every other tax provision) – which the law and regulations allow you to take for all open years (usually the previous three tax years).

Why is allowing ASC on amended returns such a gamechanger? Simple – even under ASC it is not a walk in the park for a business to qualify (requiring books, records, etc.) for the R&D tax credit. The reality is that for many small and medium business owners it’s not worth the candle to qualify for the ASC if they are only getting one year of benefit. By allowing the ASC on amended returns – Treasury and IRS have completely changed the math for thousands of small and medium business owners, who will now see for the first time the benefits of the R&D tax credit.

For example, a manufacturer who previously decided not to take the R&D tax credit because the company would only see a benefit of $35,000 for the current tax year is now able to amend the company’s previous tax filings and will qualify for roughly $150,000 in tax credits (not to mention the state tax R&D credits for which they may be eligible). It truly is Christmas in June for that company and its employees.

Now the only other problem to overcome is self-censoring by businesses that don’t think they qualify for the R&D tax credit. Tens of thousands of businesses – especially small and medium businesses – wrongly think they don’t qualify. A key is to understand that the R&D tax credit isn’t just for basic research, but is also for applied research. Moreover, the number of industries potentially eligible for the R&D tax credit is vast.

Getting even a commonsense change like this isn’t easy–under any administration. Thanks to Mark Mazur, Assistant Secretary of the Treasury (Tax Policy), John Dalrymple, Deputy Commissioner for Services and Enforcement at the Internal Revenue Service as well as David Selig at Treasury for all their time, effort and leadership in making this happen. I commend them for their good work and also the administration for its support for this critical change.

Finally, while the administration should be commended for this change, it would not have happened (or happened as quickly) but for Senators and Members of Congress making strong noises in support of this change; key were Senators Coons (D-DE), Cornyn (R-TX), Grassley (R-IA), Hatch (R-UT) Klobuchar (D-MN) Roberts (R-KS) (a particularly big tip of the hat to the Kansas Senator – who was huge), Schumer (D-NY) and Wyden (D-OR) as well as Members of Congress Brady (R-TX) (raised this issue in markup), Camp (R-MI), Gerlach (R-PA), Jenkins (R-KS), Neal (D-MA) and Linda Sanchez (D-CA). They have all been champions of helping small and medium businesses benefit from the R&D tax credit.

A good day for small and medium businesses, a good day for jobs and a good day for innovation.

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org/

I... Am A Manufacturer

• I take ideas and craft them into products that make life better.
• I take raw materials and turn them into parts for... well... everything.
• I help inventors’ dreams become reality.
• I move technology from the laboratory to your home.
• I am a vital part of my local, state and national economy.

I... Am A Manufacturer

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org

Associates’ Corner - Johnson Outdoors

Johnson Outdoors Gear, Inc. (JOG) of Binghamton, NY is best known locally as Eureka! Tents. Eureka! Tents is a subsidiary of Johnson Outdoors Inc. (NASDAQ: JOUT). Eureka! Tents is a leading designer, manufacturer and distributor of large commercial event/party tents, military shelters, camping tents, backpacking stoves, furniture and sleeping bags.

Eureka! Tents was started in 1895 by Arthur D. Legg who ran a small custom canvas shop that designed and sewed house and store awnings, Conestoga wagon covers, horse blankets, American flags, and tents.

Eureka! has been making quality tents and seasonal structures for more than 100 years and, for 75 years, ran a successful tent rental business. Eureka! has earned a reputation for quality products and innovative designs in manufacturing earning them multiple IFAI Achievement Awards for tent design and excellence in manufacturing.

Keeping up with the growth of their business, Eureka’s facilities have grown to over 120,000 square feet of manufacturing space and a 30,000 square foot distribution center including the acquisition of Jetboil Inc. located in Manchester, NH. Jetboil is an industry leader in the design and manufacturing of compact backpacking cooking stoves.

The company is also the exclusive US distributor of Silva® compasses.

For more information visit: www.eurekatents.com, www.silvausa.com, and www.jetboil.com

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org/

Associates Corner - ENSCO Avionics

ENSCO Avionics, Inc. is a provider of safety/mission-critical avionics engineering solutions to commercial and military aerospace customers in the Southern Tier of NY, across the nation, and internationally.

Avionics engineering solutions feature:

• Software (DO-178B/C) and Programmable Hardware (DO-254) development, integration, test and certification.
• Vision Systems Solutions utilizing synthetic, enhanced and combined vision technologies to solve Situational Awareness (SA) challenges.
• IData® Tool Suite – A cross-platform software development toolkit for creating and deploying Human Machine Interface (HMI) applications.
• IGL – A high performance and efficient OpenGL® SC (Safety-Critical) software GPU.

Core engineering capabilities include:

• DO-178B, DO-178C, DO-254, SEAL & MIL-STD subject matter expertise.
• Unique Vision Systems Solutions that feature IData® and IGL for enhanced situational awareness through dynamic visual displays.

ENSCO Avionics, Inc. is a Wholly Owned Subsidiary of ENSCO, Inc. with over 200 engineers and headquartered in Endicott, NY. ENSCO Avionics is an AS9100C, ISO 9001:2008 certified company.

For more information on ENSCO Avionics’ engineering services please contact Tom Matarese at 607-741-6332 or matarese.tom@ensco.com

See this and other newsletter articles at http://amt-mep.org/files/4214/0734/2344/2014-08.pdf

Visit our website at http://www.amt-mep.org/

Cameron Makes Major Acquisition

Cameron Manufacturing & Design, an AM&T Associate, announced the acquisition of the assets of Echo Bridge, Inc. and Decker, Inc., long time manufacturers of custom bridges. At the same time, the company announced the formation of a new company, Cameron Bridge Works, LLC.

“Our formation of Cameron Bridge Works, LLC and the acquisition of Echo Bridge and Decker Inc. complements our overall custom manufacturing offerings. This investment represents an important strategic opportunity to offer even more diverse products to multiple customers across the country,” said Chris Goll, President/CEO of Cameron Manufacturing & Design.

Goll explained that the asset purchase of the two bridge construction companies fits into Cameron Manufacturing & Design’s strategy to ensure continued growth. Cameron Bridge Works, LLC will provide services to clients across the Northeastern, Mid-Atlantic and Southern states.

Cameron Manufacturing & Design, Inc. is an employee-owned custom manufacturing company based in Horseheads that offers a wide range of products and services that include fabrications and weldments, equipment and machinery, production and prototype services, and design and drafting services. Echo Bridge and Decker were family-owned and operated businesses in Elmira. While the two companies have completed projects as far away as Utah, Texas and Florida, they had a primary market focus in the New England and Mid-Atlantic states.

Goll said that the newly formed entity will capitalize on the strong presence of Cameron Manufacturing & Design and the specialty experience of Echo Bridge and Decker to become a leader in the bridge manufacturing arena.

See this and other newsletter articles at http://amt-mep.org/files/2713/7572/0531/2013-08.pdf

Visit our website at http://www.amt-mep.org

SEPAC Partners with Carnegie Mellon’s Robotic Tartan Rescue Team

SEPAC, a manufacturer of electromagnetic brakes and clutches, is proud to announce acceptance as a promotional sponsor of the Carnegie Mellon University’s National Robotics Engineering Center (NREC) Tartan Rescue Team for their participation in the Department of Defense Advanced Research Agency (DARPA) Robotics Challenge.

The Department of Defense’s Strategic plan calls for the Joint Force to conduct humanitarian disaster relief and related options. The DARPA Robotics Challenge (DRC) attempts to address the issue by promoting robotic technology for disaster response operations. The robots will be judged based on autonomy, mobility, dexterity, strength, and endurance.

SEPAC’s electromagnetic brakes and motion control engineering expertise is providing integral support in the development of the robot’s drive joints. Precise control of these drive joints enable the robot to achieve human like manipulation and gripping to complete critical rescue orientated tasks.

Carnegie Mellon’s Robotic Institute was founded in 1979 and was the first robotics academic department in the US. Today it is the largest (in revenue) robotics research group in the world.

A custom designer and manufacturer of motion control products, SEPAC Inc., in Elmira, NY, provides innovative electromagnetic brake and clutch solutions of the highest quality and reliability in markets such as aerospace, defense, energy, medical, industrial and robotics. Learn more at www.sepac.com or call 800-331-3207.

See this and other newsletter articles at http://amt-mep.org/files/2713/7572/0531/2013-08.pdf

Visit our website at http://www.amt-mep.org

Tompkins County ReBusiness Chamber Challenge.

You know about the “3 R’s” in education - but what about the 4R’s of business sustainability? Reduce, Reuse, Recycle, Rebuy.

Reduce waste being sent to landfills, save energy and resources, and make our community more sustainable. Remember the four R’s: Reduce, Reuse, Recycle and ReBuy!

For more information on the Rebusiness Chamber Challenge please contact Kat McCarthy, Waste Reduction Specialist at the Tompkins County Solid Waste Division, at 607-273-6632 or at kmccarthy@tompkins-co.org

This program is funded through a contract with Tompkins County Solid Waste Management Division.

See this and other newsletter articles at http://amt-mep.org/files/2713/7572/0531/2013-08.pdf

Visit our website at http://www.amt-mep.org