Professional Documents
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is to strengthen the New York City economy by improving the performance of small- to mid-sized rms that produce technical and manufactured products. ITAC combines education, consulting, training and research into programs that support the growth of these rms. Workshops focus on industry best practices, while our consulting services leverage the expertise of staff professionals and a wide resource network. Through on-site training and one-on-one coaching, ITAC builds staff skills so that companies can change and adapt. Our research into New York Citys changing business sectors help manufacturing and technology rms take advantage of marketplace opportunities. During FY 2006, ITAC assisted 404 businesses a 25% increase over 2005! We also delivered 13 business assessments, 40 strategic and business plans, and countless workshops ranging from supervisory skills to technology funding. As a result of these services, ITAC clients reported that they created and retained 627 jobs, reduced their costs by $8.7 million, increased or retained $48.6 million in sales, and invested $10.2 million in new buildings and equipment. ITAC served on the citywide Zoning For Jobs coalition, which advocates for New York Citys industrial businesses and the New York City Apollo Alliance, an association of business, labor, environmental advocates and community-based organizations collaborating to promote policies which will improve New York Citys environment while creating high quality jobs for New Yorkers. This year, we were also re-designated as the ofcial New York State Regional Technology Development Center for New York City. ITAC receives signicant nancial support from the New York State Ofce of Science, Technology and Academic Research (NYSTAR), New Yorks high-technology economic development agency, and the National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP). ITAC serves as New York Citys NYSTAR-designated Regional Technology Development Center and is one of nearly 350 MEP locations across the country. ITAC also receives signicant support from New York City.
NYSTAR Funded
a NIST Network MEP Afliate
February 2007 People and potential thats what New York City is all about. Throughout 2006, The Industrial and Technology Assistance Corporation [ITAC] was in the midst of both: helping to create a more fertile environment for job creation and retention, and providing businesses with the know-how to capitalize on their potential. I am pleased to present the Industrial & Technology Assistance Corporations Fiscal Year 2006 Annual Report. Through training, expert consulting services, education and advocacy, ITAC continues to help individual rms thrive in New York City. Our performance is measured by the success of our client companies their growth, competitiveness and productivity. ITACs network of university, consulting and economic development partnerships enables us to leverage our effectiveness far beyond our individual efforts. Healthy manufacturing and technology businesses contribute to the diversity of jobs and multiply their impact throughout every sector of the economy. Through our wide array of services, ITAC provides rms with the tools to increase capacity and manage growth. Whether a company needs to develop more business to use newfound production capacity resulting from process improvement, or institute the internal systems needed to accommodate explosive growth, ITAC can help them build bridges to attain their goals. ITACs goal in FY 2006 was to identify New York City rms that were poised for growth and provide services to turn possibilities into reality. We helped them to write strategic plans to take advantage of their unique strengths and linked them with funding sources to execute their business models. Other ITAC clients were introduced to new production technologies or assisted in bringing their own promising technologies to market. Finally, we aided rms in reducing shop-oor waste and saving money with the purchase of energy-efcient equipment. Nurturing New York Citys business growth is important not only to the hundreds of thousands of families who depend on manufacturing and technology jobs, but also to the citys main export sectors (including construction, hospitality, nance and real estate) that rely on locally-produced products to function smoothly. These rms provide quality jobs that support New York families and help to diversify and stabilize the local economy. ITACs accomplishments are a testament to the unagging dedication of ITACs staff, resource network, board of directors, funders and partners. Many thanks to you all our accomplishments would not be possible without your support.
Sincerely,
t 212.442.2990
f 212.442.4567 www.itac.org
Manufacturing Competitiveness
ITAC gave us a fresh perspective, and encouraged us to focus on continuous improvement. David Haber, Vice President D.W. Haber
ITAC is always there for us and willing to give advice and support to help our business succeed. Anthony Giumenta, Jr., COO Architectural Grille
Through the Manufacturing Extension Program (MEP), ITAC offers an array of services to hone the competitive edge of New York City manufacturing rms: Strategic and business planning Sales and marketing Human resources services and training Lean manufacturing Relocation support and plant layout Environmental and energy assistance Advanced technology for manufacturers
Over the past year, ITAC helped 123 local manufacturing businesses meet the challenges of global competition by adopting best practices, reaching new markets, cutting costs, and implementing new technology. Whether they need to relocate a factory, meet customers demands for product quality certication, develop a strategic plan, or train their workforce, New York City manufacturers turn to ITAC for assistance. Our educational and assessment programs reached an additional 281 rms. ITACs Lean Enterprise program helps participating rms embark upon the lean journey by teaching them to apply core Lean principles to streamline their processes. ITAC hosted 5 public Lean Manufacturing workshops in FY 2006, training 33 individuals from 18 rms. We also delivered 52 on-site Lean sessions which resulted in enhanced skills for New York workers.
In response to increased manufacturing relocation activity across the city, ITAC launched its MoveSmart/StayLean program, which supports local industrial rms through the entire relocation process. The program includes helping rms plan for future needs, introducing them to service providers, developing new plant layouts, and overseeing overall relocation management. As the result of an agreement between the Mayor and City Council, ITAC was able to offer subsidized MoveSmart/StayLean services to North Brooklyn manufacturers (see sidebar next page).
D.W. Haber: Adopting Lean Manufacturing This fourth-generation Bronx metalworking rm, which produces and repairs silver plate catering pieces for the hospitality industry, needed to improve its work-in-process (WIP) and turnaround times. Company VP David Haber worked with ITAC to learn more about Lean Manufacturing and implement its techniques on his shop oor. ITAC trained Haber and his staff in Lean principles and reorganized processes to improve efciency including cross training the production staff to create a more exible workforce. D.W. Haber was able to drastically reduce WIP and signicantly improve its lead times. Repairs that previously required six weeks are now turned around in just three. Thanks to the increased production capacity gained from Lean improvements, the company has shipped record amounts of product in the last few months, with no overtime or additional hires required. Architectural Grille: Laying the foundation for growth Though Architectural Grille was thriving in its new Brooklyn location, the Giumenta family knew it could improve its processes for manufacturing grilles and vents. Together with ITAC, the company conducted a series of training and strategic planning sessions to upgrade the rm principals general business skills, identify growth opportunities, and steps to increase workforce efciency. As a result of these sessions, Architectural Grille is overhauling its production processes and rening its personnel policies, including the development of a new employee manual, to ensure compliance with current federal and state employment regulations. As Architectural Grille grows, it will promote oor staff to supervisory and sales positionsand continue to rely on ITAC to help build the skills of its workforce.
Technology
ITAC gelled all I needed in every aspect of my rm legal, nancial and organizational and paired me up with the resources I needed to make it happen. John Haller, Founder PortableApps.com The FastTrac speakers were excellent able to break down the components of a successful business into easy-tounderstand pieces. Lucien Harriot, President Mechanism Digital
In FY 2006, ITAC assisted over 110 technology entrepreneurs in developing and bringing their products to market. Our technology clients value ITACs ability to link them to academic, funding and technical resources, while providing services such as: Entrepreneurship training Business plan assistance Identifying and applying for R&D grants Development of strategic R&D partnerships Intellectual property information Preparation for debt or equity nancing ITACs FastTrac business development program targets technology entrepreneurs and rms that are poised for their second phase of growth. Last year, over 30 participants completed this hands-on boot camp, with 6 receiving funding as a result of ITACs efforts. As the New York City-based partner in the Small Business Administration Federal and State Technology (FAST) Partnership, ITAC supported small businesses in applying for federal Small Business Innovation Research (SBIR) funds. In FY 2006, ITAC assisted 40 companies in ling SBIR applications, with awardees ranging from a developer of academic testing software to a biotechnology rm. ITAC was also recognized by the Space Alliance Technology Outreach Program (SATOP) as the leading source of referrals for its engineering services in New York City. In FY 2006, ITAC launched TechNYC, a program to identify local businesses engaged in product innovation and research and development. Random surveys were conducted to determine the opportunities and challenges faced by these rms. Additionally, ITAC analyzed employment and other data to determine the economic impact of technology rms in the region. A formal report with key ndings and policy recommendations will be released in early 2007.
PortableApps.com: Off to the right start When John Haller of PortableApps.com completed ITACs FastTrac program, he knew he was well on his way to developing his business idea: a community website and platform for computer users to replicate their PC on any Windows-based computer. But Haller also recognized that there was more work to be done to bring his product to market and create a viable business. ITAC helped Haller nalize his business plan, prepared him to meet with nancial backers, and introduced him to a team of professionals including an intellectual property attorney, a technology PR rm, and potential investors to launch his product. PortableApps.com has received widespread coverage in the mainstream media and leading technology publications such as PC Magazine, Information Week, and Wired. Mechanism Digital: Investing in their own growth Lucien Harriot saw that competition was increasing in his marketplace, with more rms developing the 3D lm and TV animations for which Mechanism Digital was known. Recognizing that he needed to know more about the science of business to remain competitive, Harriot registered for ITACs FastTrac entrepreneur boot camp course. When class discussion turned to marketing his rm to outside investors, Harriot was initially skeptical, as he was planning to keep the rm privately held. His viewpoint shifted when ITAC convinced him to view himself as the key investor when gauging the wisdom of company expenditures. Through FastTrac, Harriot gained an ability to analyze potential business strategies and quantify outcomes, resulting in better targeting and wiser expenditures. He also improved his productivity by more effectively leveraging the expertise of his staff.
Hidden beneath the radar of the New York City economy, there is an emerging industry the development of serious games. Think Digital Games and what probably comes to mind is a video game played for fun. Some games, however, are serious business including those used by the U.S. Department of Defense to train ghter pilots or games that achieve health or education objectives. During 2006, ITAC helped this emerging industry in several ways. On March 29, 2006, with NYSTAR we hosted a Roundtable on Digital Simulation for Homeland Security which was attended by some 75 experts in Digital Media, Gaming, Homeland Security and Academic Research Centers. The day long conference discussed new developments in Digital Media as it relates to Homeland Security efforts, and what the future holds for this ever-changing medium. ITAC also participated in the creation of Games 4 Change (G4C), the regional chapter of the Serious Games Initiative, an association of rms participating in this new industry. We also collaborated with G4C to develop a partnership with the New School University which is resulting in the creation of a new lab within the University which will support innovation in this growing medium.
Sustainable Business
ITAC helped us examine the different departments in our company to reduce waste and make things more efcient. Lucky Lee, Vice President of Sales Luckys Real Tomatoes Working with ITAC has proven to be a really great partnership for HCC. They have helped me grow my business Lisa Hendrickson, President Hendrickson Cabinet
For over a decade, ITAC has assisted companies in reducing their environmental footprint while improving their bottom line. ITAC has used complementary approaches with clients: rst, focusing on getting waste materials out of the dumpster and creating value by recycling; second, by applying Lean manufacturing. ITACs goal is to help companies understand that environmental improvements and business growth go hand-in-hand: Reducing and recycling solid waste Reducing use of water Lowering energy use and cost Preventing pollution
In FY 2006, ITAC substantially overhauled its Sustainable Business service offerings, tailoring them to help local rms take advantage of ever-increasing green opportunities. We supported the transition of the NY Wa$tematch program to a new program manager which freed our staff to redirect energy towards supporting local rms in their efforts to develop greener products and processes. During FY 2006, our Sustainable Business Unit assisted approximately 100 rms to save over $800,000 in waste disposal costs; in turn their activities resulted in the diversion of 6,207 tons from the waste stream.
ITAC and NYIRN conducted a study and co-authored a report entitled Manufacturing Green: Producing a Sustainable NYC. This report (see following page) outlines the opportunities for local businesses to become green building suppliers, and offers policy recommendations to expand these business opportunities for local rms. The report also highlights growth in demand for environmentally sensitive products, especially throughout the construction supply chain.
Luckys Real Tomatoes: From Red to Green Top restaurants and their customers love Luckys red ripe tomatoes harvested in Florida and transported with care to New York City and 20 cities across the country. This vibrant family-owned business was referred to ITAC through the North Brooklyn Relocation Assistance Program, when it felt limited by its current facility and an inability to expand due to new zoning regulations. Luckys soon found that there were numerous ways it could take advantage of ITACs expertise. By applying the principles of Lean enterprise, the company was able to improve functions as diverse as order processing, truck parking and product distribution. ITAC was also able to improve Luckys waste handling processes, locating a vendor that recycled tomato waste into organic compost for farmers an improvement that reduced Luckys trash hauling costs by 30%. Hendrickson Custom Cabinets: Putting Waste to Work Hendrickson Custom Cabinets (HCC) designs, manufactures and installs custom cabinetry for high-end residences across New York City. Due to the customized nature of its work, HCC faced large amounts of leftover lumber and wood waste that it wanted to reduce in keeping with its corporate credo: Courtesy, Respect, Generosity. ITAC conducted a Lean assessment to identify ways in which HCC could reduce waste. Lumber is now repurposed into art materials used by more than 70 City elementary schools and sawdust is sold to the Bronx manufacturer of a compound to clean up oil spills. The company has also adopted greener processes, including a new nishing technique that lowers VOCs by 30%. With the launch of a new consulting practice, HCC has turned its green expertise into a brand-new revenue stream advising other rms on the use of green building materials.
Workforce Development
ITACs supervisory training program was excellent for our company. We will continue to use ITAC as a resource as our company grows. Ho Sing Lee, President Wonton Foods We can count on ITAC to expose us to manufacturing and industrial opportunities and resources of which we would have otherwise been unaware. Harvey Fein, President DFB Sales
When manufacturing businesses need a little extra help to optimize their human resources, they can tap into ITACs vast network of contacts and resources. Here they will nd assistance for delivering specialized training, recruiting skilled employees, and developing effective human resource policies and systems. ITACs workforce development services address a variety of needs: Building the HR infrastructure needed by growing businesses Conducting human resource audits to ensure regulatory compliance Recruiting qualied candidates for middle management positions Building employees skills through technical and non-technical training Improving supervisory skills Identifying grant funding for training programs and guiding rms through the application process ITAC is committed to building workforce skills for companies so their employees can enhance their contribution to the companys competitiveness. During FY 2006, ITAC delivered training to upwards of 750 workers in 33 rms in various skill areas, including manufacturing process improvement (lean manufacturing), customer service, supervisory development, computer skills, and quality assurance. Some of these training sessions were conducted in Spanish and Chinese as well as English. Most of the training was provided for shop oor workers and clerical support staff. As a result of specialized training, several rms obtained ISO 9000 and other ISO related internationally recognized certications. Finally, in FY 2006 ITAC helped ve rms recruit eight new managerial employees; we conducted HR audits for two rms; and helped four rms create new personnel manuals.
Wonton Foods: Training Supervisors With much of its middle management staff promoted from the production oor, upper management at North Brooklyn-based Wonton Foods recognized that these employees needed additional training to become more effective managers. Wonton turned to ITAC, which created a training program for 22 middle managers from 14 different departments. The program, conducted in English and Chinese, addressed skills such as effective management practices, communication, time management, goal setting and delegation. As a result, Wonton management reports positive changes among all 14 departments. Uniform policies and procedures were established and enforced, departmental functions were improved, and better interpersonal relations among the staff has led to decreased conict. DFB Sales: HR Infrastructure New York Citys continuing building boom, combined with heightened interest in green building products, represented a signicant growth opportunity for DFB Sales in Long Island City. To keep up with demand for its solar shades and durable applied wall surfaces, the company needed to expand its operations and add a number of skilled positions. ITAC worked with DFB to create the infrastructure needed to support the expansion, including a new organizational chart, job descriptions, and recruiting. The companys new employees have all ourished, reports DFB President Harvey Fein, particularly the inside production manager. With his expertise, DFB has implemented a number of cost-saving measures. DFBs dedicated workforce is the key to the companys growth, and its ongoing partnership with ITAC only serves to make DFB stronger.
Manhattan 26%
Funding Sources
City of New York Consolidated Edison Empire State Development Corporation JPMorgan Chase NASA Space Alliance Technology Outreach Program National Institute of Standards and Technologys Manufacturing Extension Partnership New York City Council New York City Department of Sanitation New York City Department of Small Business Services NYS Department of Labor/Workforce Development and Training Division NYS Ofce of Science Technology and Academic Research Sovereign Bank (formerly Independence Community Bank) Valley National Bank
253 Broadway New York NY 10007 Tel: 212 442 2990 www.itac.org
2007 ITAC