ROI Renting Vs Buying Equipment

ROI Renting vs Buying Equipment

While 2021 brings continued economic uncertainty, it’s always a good idea to use a new calendar year as an opportunity to reevaluate business plans. What’s working and what’s not? For manufacturing professionals, this can be a literal consideration: what equipment is running efficiently and what’s nearing the end of its useful life? Aging, worn machinery is costing you valuable time and money that’s preventing you from being competitive. Determining the return on investment for buying versus renting equipment requires a deeper dive into your company’s cash flow and your intentions.

Buying New

Some people have personal biases when it comes to purchasing items. Think of other investments you’ve made. Are you a staunch advocate of homeownership over renting property? Maybe you’re always trying to dissuade your friend from leasing the latest and greatest model car because they won’t acquire any equity and it won’t be their own asset. Try not to let feelings about leasing bleed into your business model because buying won’t always equal profitability. To determine if it’s time to buy, you need to assess the performance of what you’re currently relying on. Track the machine’s cycle time and uptime (when the machine is producing revenue) as well as any downtime required for regular or unscheduled maintenance. This data will help you to determine if new equipment will produce the ROI required to rationalize the purchase. Your manufacturing company has needs unique to your products and services. In some circumstances, buying is the way to go, as leased assets don’t qualify for 100% first-year bonus depreciation.

Opting to Rent

If you opt to rent or lease your equipment, you’ll get brand new machinery operating at maximum output and efficiency. You may also be able to shop outside of your budget, opening opportunities to test-drive cutting edge technology before committing to a major purchase. Consider the long-term usage of the equipment and how much profit it will generate in its lifespan. For example, if you’re only using the equipment to fulfill a two-year contract and you don’t see other profitable opportunities, maybe it’s better to lease that piece for two years rather than make a huge long-term investment to fulfill a temporary need. Let’s talk tax benefits. While annual deduction limits may apply, generally speaking, payments for leases will be tax-deductible and qualify as “ordinary and necessary” business expenses. But as with any contract you’re tied to, you must read the fine print and make sure your business plan is aligned with the terms and conditions. It’s never fun to sign off on a big expense, only to be surprised by an early-termination fee you weren’t aware of.

We wish there was a straightforward, clear “winner” in your decision, but as is standard in business, the most economical choice is going to depend on the circumstances surrounding the machinery. In some situations, purchasing machinery and acquiring an asset you know is going to build your business equity is the best decision. In other situations, you will find leasing is the right move, so you can test out a high-tech item without the risk of purchasing an expensive machine that’s bound to become obsolete when the latest model rolls out. Our best advice is to consult a professional to weigh the pros and cons carefully before committing to a big financial decision. Our team is always just a phone call away to answer questions unique to your company’s situation.

Source: Accounting Freedom

Need to Know: Substantial Completion Bill

Need to Know: Substantial Completion Bill

Ah, substantial completion. Practically speaking, it occurs when there’s only minor, corrective, or warranty work remaining for a project. But you and your team know it means a sigh of relief, and cause for celebration. Why? Because payday is on the way! It also sets the timeline for liabilities, warranties, and corrective work, which is crucial. Under the New York State Finance Law and General Municipal Law, reaching this milestone triggers the reduction of retainage from 5% to two times the value of the punch list. As you may be aware, on December 15, 2020, Governor Cuomo signed S.7664/A.9117, the Empire State Subcontractors Association’s “Substantial Completion” bill, into law.

So what does this mean for you and your business?

This bill is a win for contractors (and by extension subcontractors) because it will ensure contractors on public works receive their retainage in a timely manner and will also prevent public owners from prolonging a project’s final completion. The new legislation will require public works contracts to define substantial completion and require public owners to provide the prime contractor with a complete punch list no later than 45 business days after substantial completion has been reached. The prime contractor, in turn, must provide subcontractors with their portions of the punch list within 7 days thereafter. So in essence, public owners will no longer be able to drag out the procedure for generating punch list items for many months or even years, long after a building is occupied and being utilized for its intended purpose.

While some of the timing language was kept in, Cuomo “secured an agreement with the legislature to make certain technical changes to the bill, allowing public owner contracts to retain their distinct definition of substantial completion.” This was something the Governor’s Office apparently would not budge on because Cuomo wanted to retain flexibility for state agencies and other public owners to have their own definition of “substantial completion” in their contracts. Is that ideal for you and your business? Rarely, anything is in life, or politics. But ultimately, while the final agreement led to the removal of the language defining substantial completion in the legislation, new language was added to clarify that substantial completion should be defined by public owners in their contracts. So at the end of the day, this bill still represents a key improvement in the law regarding the reduction and release of retainage on public projects, a win for contractors.

These are particularly challenging economic times, but even in a booming economy, getting paid for work performed remains one of the biggest construction industry challenges. Often, contractors who are struggling to get paid do not fully understand their statutory rights to prompt payment, therefore they don’t exercise their rights properly. “I would encourage contractors to gain a better understanding of the laws here in New York that have been written for their protection,” says Mike Misenheimer, Executive Director of NESCA. Misenheimer describes a few state laws contractors should familiarize themselves with to protect their business including the prompt payment laws for both public and private commercial construction projects, statutory limitations on the amount of retainage that may be held, their lien rights, and the trust provisions of Article 3-A of the Lien Law.

It is the hope of the entire RBT team that by keeping our industry clients and contacts informed, we can further assist you in making business decisions that will secure your future success. We thank you for your continued commitment to remain up to date on the news that impacts your field, and invite you to contact us with any specific business questions.

Three Steps to a Smarter Work from Home Plan

Three Steps to a Smarter Work from Home Plan

A year after the COVID-19 pandemic first shut down businesses statewide, many municipalities are still struggling to keep up with public demand. We are finding that those struggling the most have one common denominator: they are still completely paper-based, which creates a lot of delays, backlogged work, and overwhelmed employees. Based on our experience, municipalities that created a paperless environment pre-pandemic had a significant preparedness head start as we collectively acclimated to the remote workflow. Aside from work sustainability and convenience, it’s clear our governments’ public service sector needs new ways to attract and retain employees. Needless to say, resisting the changing (or changed) times is only going to hinder operating abilities moving forward. Below are three critical rules you can follow to succeed today, tomorrow, and in a post-pandemic world, because as you may have already guessed, there’s no going back to the “old way” of operating.

Daily Check-ins

At RBT, we create daily check-ins at the beginning of the workday to identify mission-critical functions to best conduct our professional services. Not only does this increase team member accountability, but it provides a reliable way to stay connected, while we are physically apart. Implementing small consistent actions can reinforce a sense of transparency, trust, and heightened team organization. Particularly in a remote work setting, researchers say high-quality connections (HQCs) are crucial for high-performing teams. HQCs happen when we have regular, short, positive interactions at work which provide a sense of positive energy in the moment, regardless of whether those interactions happen over Slack, email, or Zoom. Researchers believe HQCs lead to higher performance because high-quality relationships and the resulting psychological safety allow for greater learning in organizations and may contribute to innovation. We know, ZOOM burnout is real. While virtual interactions can never replace in-person meetings, the reality is some employees may never opt to return to traditional in-office settings, even post-pandemic. For some, the increased work-life balance, elimination of commute time, and comforts of home will trump returning to the office where workplace distractions cut into valuable productivity time. Respecting rather than resisting an employee’s desire to remain remote (as long as they continue contributing and remain productive) will set municipalities apart in the recruiting arena.

(Truly) Embrace Digital

The well-known “Silver Tsunami” is upon us as baby boomers retire, shrinking the public sector workforce significantly over the next few years. While the goal is to have tech-savvy millennials fill the void, the public sector struggles to recruit and retain them. Neglecting technological upgrades and modernizing employee training to transition to digital practices will only hinder your ability to recruit younger employees. Embracing digital workflows doesn’t just mean getting on board with cloud-based software or upgrading your internal IT and then forgetting about your tech for a few years. It’s important to revisit policies, both old and new to determine if there are holes in the way you are operating, and constantly improve processes. Have you transitioned to electronic signatures for purchase authorization? Fantastic, as this decision has no doubt smoothed the purchasing process. But, is your payment authorization still on paper and then being scanned into your system? Reevaluate all of the processes you have in place to avoid a workflow that’s vulnerable to threats and prone to delays.

Cross-Train

As local government employees age out of the workforce, are you staying competitive? Not only will cross-training provide team members with valuable skills and a sense of variety in their schedule, but it will be instrumental in keeping up with the pace of daily demands. It’s more important than ever before to be as accommodating as possible to employees who are balancing work, family, and the stressors associated with a yearlong pandemic. As many are feeling emotionally and physically fatigued, and likely some are falling ill with the virus, some team members will inevitably be quarantining due to community spread, or recovery. Payroll still needs to be properly documented, and taxes still need to be collected, even when teams are short-staffed. By training your team members to perform various duties, you are creating a more resilient and more efficient workflow that can and should be utilized for years to come.

We understand these are challenging and unprecedented times. Local government agencies are trying to serve the public with limited resources and in some instances, limited capabilities with remote restrictions. Our dedicated team is here to answer questions you might have, and help you navigate your financial needs.

RBT CPAs Awarded on the Forbes America’s Best Tax Firms 2021 List

Flying Geese 2021

RBT CPAs has been awarded a spot on the Forbes list of America’s Best Tax Firms 2021. This prestigious award is presented by Forbes and Statista Inc., the world-leading statistics portal and industry ranking provider.

Forbes and Statista created the award list through an independent survey of tax and accounting professionals who provided thousands of recommendations. Respondents were recruited through an online survey as well as through a carefully profiled online-access panel. Recommendations from professionals working at tax and accounting firms as well as professionals working with tax and accounting firms were considered in equal measure.

“Based on the results of the study, RBT CPAs is ecstatic to be recognized on the Forbes list of America’s Best Tax and Firms 2021,” said Managing Partner, Mike Turturro.

As community-minded, trusted business advisors and advocates, RBT’s high-value accounting, auditing, consulting, and tax services have previously earned the firm recognition as the ‘Best in the Hudson Valley’ and one of the firms to watch. RBT team members attribute the recent Forbes distinction to its strategic, innovative, and caring environment that is dedicated to making the client’s experiences remarkable.

The dedicated professional RBT staff is committed to providing outstanding service and prompt communication with clients as New York faces unprecedented economic challenges in the New Year. To learn more about the diverse offerings and award-winning service you can expect from RBT, please browse our site or contact us.

Unplugged: Overcoming the Digital Divide

Unplugged Overcoming the Digital Divide

As our homes have transformed into our offices, daycare centers, and classrooms, it can feel difficult to disconnect from the all-pervasive technology that creeps into every aspect of life. But while most of us are on our devices 24/7 to get work done quickly and efficiently, it’s easy to take for granted that thirty years after the debut of the World Wide Web, some families are still unplugged, putting some kids at a direct disadvantage when it’s time to log on for a Zoom lesson or turn in a research paper.

According to the most recent federal data, about 14% of households with school-age children do not have internet access.

Most of those are in households that make less than $50,000 a year, and many live in rural areas.

Among those who do have access, not all have a broadband connection. Specifically here in New York, the COVID-19 pandemic has put a spotlight on the need to address digital equity. So how are districts coping with the wide technology gap that exists in some households, with remote or hybrid school schedules? Below we’ll explore options you can take advantage of to help all of your students succeed, in 2021.

Two key factors play into measuring the divide between those who have sufficient internet availability and those who do not: access and affordability.

In comparison with the other fifty states, New York is the second most well-connected state in the US. Overall, counties throughout New York State are fairly evenly connected, with the exception of Hamilton County, which has significantly lower coverage than the rest. In New York, the current average state-wide download speed is 190.5 Mbps (bits per second), according to the independent broadband availability data collector, broadbandnow.

As for accessibility, there are currently 307,000 New York residents who do not have access to a wired internet option capable of 25 Mbps download speeds. Download speeds less than 25 Mbps are too slow to be considered broadband and with these speeds, users may experience connectivity issues like buffering when streaming video or difficulty connecting multiple devices. Additionally, 112,000 New Yorkers have no wired internet services available at home, causing enormous disruption for remote-learning environments.

Affordability data from Q4, 2019 reveals that 70% (13.7 million people) have access to a wired internet plan that costs $60 or less per month. In this regard, New York State is well ahead of the nationwide statistics, which show that only 51.5% of consumers have access to the same. But what about those who can’t afford the cost? As thousands of students are expected to keep up with the curriculum remotely or with hybrid schedules, how can you help to level the playing field? Below are a few statewide funding resources to consider:

  • The Smart School Bond Act (SSBA) provides funding for district technology and community connectivity projects.
    • The Community Connectivity category involves partnerships between school districts and communities. It could, for example, be used to supply Wi-Fi access points or computing devices to public libraries or community centers.
  • The Broadband for All program is awarding $500 million in grant funding to support projects that deliver high-speed Internet access to Unserved and Underserved areas of the State.
  • The FCC’s Lifeline program provides low-income families with a monthly discount of up to $9.25 on a phone or broadband service.
  • Additional resources include:

While not all broadband, high-speed internet connections are made equal, it’s clear there is a connection between academic success and internet access. We hope the resources above can be a jumping-off point for your administrators to ensure no child is left behind because of digital inequality. As always, our dedicated team is committed to keeping you informed and providing helpful resources to your educators as you shape the next generation of New Yorkers. Want to connect? Contact us today.

The Challenge Ahead for NY’s 2021 Healthcare Planning

The Challenge Ahead for NY's 2021 Healthcare Planning

Before the pandemic, New York’s hospitals already had the thinnest statewide average operating margin in the nation. They face $20 billion to $25 billion in revenue losses and extraordinary costs due to COVID-19 – and that does not include the financial damages accruing during this latest surge of COVID-19 cases we are currently experiencing. Nearly a year into fighting this deadly virus, the financial situation has only become more dire. Facing a continued public health crisis, a complex vaccination rollout process for millions of New Yorkers, plus a historic deficit, healthcare industry leaders have a lot on their plates. According to the most recent information from state officials, New York projects a $13.3 billion shortfall, or 14%, in revenue and estimates a $61 billion decline through 2024 as a direct consequence of the COVID-19 pandemic. So, what are the top financial focuses of the health industry? PwC’s new study and issues report examines healthcare’s future uncertainty by outlining six major 2021 challenges:

  1. rightsizing after the telehealth explosion
  2. adjusting to changing clinical trials
  3. encouraging digital relationships that ease physician burdens
  4. forecasting for an uncertain 2021
  5. reshaping health portfolios for growth
  6. building a resilient and responsive supply chain for long-term health

The fiscal year (FY) 2021 New York Executive Budget recommends $88.5 billion for DOH, including $76.7 billion for Medicaid, $5.3 billion for the Essential Plan, and $6.5 billion for remaining health program spending. This reflects a decrease of $71.7 billion from the FY 2020 Enacted Budget due to the discontinuation of two-year appropriations for Medicaid. Below, we will touch on some 2021 state healthcare budget highlights to anticipate. What is the future of Medicaid, prescription drug pricing, medical transparency, and new mental health funding in our region?

Redesigning Medicaid and Health Care

The FY 2021 Enacted Budget calls for Medicaid spending to increase by 3%, or about $500 million. The Medicaid Redesign Team II, a cross-section of health care providers, labor, local government, and other industry stakeholders offer up their recommendations in the FY 2021 Enacted Budget which include a transformation of the hospital reimbursement structure to support services to the uninsured, increases investments in primary care, and new requirements that enhance oversight of managed care and transportation. The reforms also address managed long-term care, by far the fastest-growing sector of Medicaid. These include aligning New York State’s eligibility requirements with those of other states for new applicants for Consumer Directed Personal Assistance Program and Personal Care Services and enhancing reporting requirements for both programs; capping statewide enrollment in managed long-term care to incentivize plans to assist in ensuring appropriate enrollment, and creating a statewide independent assessor to achieve efficiencies by removing duplicative efforts to determining eligibility and enrollment in the managed long-term care program.

Prescription Drugs

The FY 2021 Enacted Budget includes a three-part plan to lower prescription drug costs for all New Yorkers. The Budget caps insulin co-payments at $100 per month for insured patients to help address the rising cost of insulin that has resulted in diabetes patients rationing, skipping doses, and not filling prescriptions. A commission of experts will also be recruited to study the feasibility and benefits of a Canadian drug importation program and submit a plan to the U.S. Department of Health and Human Services for review.

Medical Transparency

To increase healthcare service accessibility, New York plans to create a consumer-friendly, one-stop website, called NYHealthcareCompare where New Yorkers can easily compare the cost and quality of healthcare procedures at hospitals around the state. The website will be created by the Department of Health, the Department of Financial Services, and the New York State Digital and Media Services Center.

Student Mental Health Program

Some describe the ongoing COVID-19 pandemic as a psychological pandemic, as health service providers statewide have become overwhelmed with an increase in mental health requests. To meet the rising demand in light of school closures, the budget provides $10 million in funding for grants to school districts to address student mental health needs. These grants are intended to improve student access to mental health resources and assist students who have experienced trauma that negatively affects their educational experience. This program will be administered by the Office of Mental Health and developed in consultation with the State Education Department.

As we have seen, organizations need resilient infrastructures and supply chains to absorb future shocks. They need detection systems to spot financial trouble ahead and identify the right partners or deals. We understand that on every level, this industry is facing unprecedented pressures and stressors. We highly encourage management to frequently check in with employees. As a reminder, health care workers can text NYFRONTLINE to 741-741 to access 24/7 emotional support services. Any New Yorker can call the COVID-19 Emotional Support Hotline at 1-844-863-9314 for mental health counseling, and as always our dedicated RBT team is here to help you create a financial plan to navigate these complicated times.

Sources: PWC, NYS

4 Steps to Help Small Businesses Succeed

4 Steps to Help Small Businesses Succeed

While local municipalities can’t provide the level of financial relief to small businesses that the US Treasury can, local officials can take strategic actions to improve the survival odds for local businesses. Below are some ideas for you to help your community succeed amidst the ongoing obstacles and pressure of the pandemic.

Promote your local businesses

Promote local businesses by publicizing open stores with street signs or offering free digital downloads to help businesses market effectively. Encourage residents to shop locally by linking store sites to virtual town hall meetings. Orange County Executive Steven Neuhaus teamed up with the Orange County Department of Tourism to remind community members of the power of keeping their dollars local. In a Small Business Saturday promotion, officials pointed out that for every $100 spent locally, $73 stays in the Orange County economy. Your local government can continue to support struggling businesses by helping to make connections through webinars and networking.

Create a central, online resource to distribute information

Be a source of information to your business community by creating a simple, user-friendly digital one-stop shop for resources, tools, and information. One shining example is Dutchess County’s Youtube channel which regularly releases videos featuring County Executive Marcus Molinaro and various health officials and guests. We recommend you designate a staff member to update your site daily with relevant local, state and federal news, as well as guidance on how businesses can apply for SBA loans, and how to contact local SBA-approved lenders or other business support organizations. On Monday, the SBA re-opened the Paycheck Protection Program (PPP) to small businesses who have not already obtained a PPP loan. Today, the program will reopen for small businesses who have drawn a PPP loan in the first stage of the program. The PPP has been expanded to be more accessible and flexible for businesses, seasonal employees, nonprofits – including 501(c)(6)s, housing cooperatives, and direct marketing organizations. The loans can now cover operating expenses, property damage costs, supplier costs, and worker protection costs. Your guidance for local businesses could be the difference between a thriving downtown and more boarded up storefronts in 2021.

Team up with others to support the community

Consider forming a centralized Covid-19 donation and relief center to provide bridge funding to struggling small businesses and families. Some cities are partnering with nonprofits to create a lifeline for low-income families who have lost income due to pandemic hardships, like the City of Kingston in Ulster County. Kingston partnered with the Rural Ulster Preservation Company (RUPCO) to provide up to $3,000 in rental assistance over three months for dozens of households that submitted to a lottery. Selected applicants will be notified later this week, and local officials describe this effort as crucial to protecting residents against eviction. Municipalities can get creative with funding through a combination of local resources, philanthropic dollars, or by redeploying Community Development Block Grant (CDBG) funds to small businesses.

Gather data to make the case for funding

Collecting relevant local business data can help inform your municipality’s future budgets as well as your approach to state and federal advocacy. For example, Sullivan County has partnered with the County Visitors Association, chamber of commerce, and two economic development agencies to form a Recovery Working Group that has sent out needs assessment surveys to all of their member businesses. The group aims to use this data to help streamline business’s access to capital and make a unified case for support to the state and federal governments. If you haven’t already gathered data that’s unique to your community, now is the time to start asking questions and recording information. Some ideas include:

“What is the risk of your going out of business?”                                                            

“What areas of your business are you most concerned about?”                                                  

“How many employees do you estimate you will have to lay off?”

In this overwhelming time, businesses need reliable sources of information to help them navigate financial assistance and survive so your local economy can thrive. We hope these ideas will inspire new initiatives to further support the businesses that are unique to Hudson Valley. As you support your communities, we are here to support you. Contact our dedicated team today and get answers to financial questions with a free consultative appointment.

Sources: NLC, ICMA, ELGL

Balancing the Books and Budgeting in 2021

Balancing the Books and Budgeting in 2021

We are less than two weeks into the New Year and while we are still adjusting our expectations for the economic impact of the ongoing pandemic, it’s a good time to consider your annual budget. Determining the right amount of raw material for current demand is hard enough in a “normal” year, so it’s safe to say it is one of the biggest challenges currently facing the manufacturing industry. Particularly for small to medium-size manufacturers, having a budget helps everyone to work towards the same goal and prepare for unexpected disruptions. This process helps answer critical questions about what the next 12 months will look like. What are your future projected sales? Are you expecting margins to improve next year? Do you plan to hire or fire employees? Do you have any significant upcoming capital expenditures? Planning now means smarter saving and spending for the next 12 months. To succeed in a highly competitive market, you need two things to be in sync. Your team and your technology.

Keeping Communication Consistent

In a survey of more than 1,500 small to mid-sized manufacturing company CEOs, 82% said that speaking to their employees was challenging. How can you leverage what’s at your fingertips to save time and money? Utilize enterprise messaging apps and other mobile tech to gather feedback from employees on the floor to stay in constant connection. A recent Google white paper report reveals 53% of frontline workers use messaging apps such as WhatsApp and Facebook Messenger up to six times a day for work-related reasons, but 68% of them said they’d stop if given approved instant messaging apps for corporate communication tools. This data clearly shows that frontline workers need a way to communicate while they’re at work. Consider adopting a platform that will allow you to streamline training, offer real-time company updates, improve collaboration, and build company confidence. As AI and manufacturing technology systems advance, these tools can boost employee productivity and efficiency. Staying connected and creating a flow across factory floors is crucial if you want to succeed in the coming year (and decade, for that matter).

Make the Most of Your MRP

Computer-based inventory management or material requirements planning (MRP) is designed to improve productivity, estimate quantities of raw materials, and schedule deliveries. MRP is designed to answer three questions: What is needed? How much is needed? When is it needed? This process allows your business to plan more accurately by tracking product series, managing quality levels, expiry dates of materials used, transparency in overall processes, and standards. Keep in mind the system that makes sense for your unique needs, size, and budget will vary. Here are the top three ranking systems based on the latest industry reviews, for you to explore:

1. Fishbowl Manufacturing

Fishbowl Manufacturing is a business automation and inventory management platform for small to midsize manufacturing companies. The app offers QuickBooks integration for accounting management, as well as tools for inventory control, MRP, and job shop floor control/manufacturing execution. It is an inventory-centric system, with features for barcoding, asset management, raw materials management, and customized reporting. It automates the quoting, ordering, and purchasing processes.

2. Oracle Netsuite

NetSuite Manufacturing Edition offers an integrated inventory, warehouse management, accounting, and financial management, order management, customer relationship management (CRM), and an e-commerce platform. Offered as a cloud-based solution and delivered over the web, NetSuite can be used by manufacturing businesses to manage production orders, ensure base inventory level restocking, and ensure the success and quality of special orders. In addition, the system also supports inventory for multiple locations, assembly management requirements, bill of materials, work order management, diverse methods of measurement, barcoding procedures, and other necessary business processes in the manufacturing industry.

3. E2 Shop System

E2 by Shoptech Corporation is a manufacturing solution that offers scheduling, purchasing, shipping, customer management, and accounting. It’s designed specifically for job shops, contract, and a variety of make-to-order manufacturers. E2 estimating allows users to create both “quickie quotes” and complex estimates on labor, overhead, material, etc., that can be faxed or emailed with attached drawings or pictures. These quotes can be automatically turned into orders, with no double entry required. E2 automatically generates shipping labels and packing slips and then tracks shipments online to multiple shipping addresses.

Integrating your personnel communication with your technology workflow can feel overwhelming and tedious when you’re reevaluating your annual budget. But by forming a plan now, you will be able to better anticipate future growth and better navigate financial speedbumps. We hope these ideas will inspire new action plans to help your team succeed. As you support your business, we are here to support you. Contact our dedicated team today and get answers to financial questions with a free consultative appointment.

Can My Company Afford to Go Green

Can My Company Afford to Go Green

Green-tech.

Depending on which side of the grass you’re standing on, it’s a term you either love or hate. For years, the misconception that going green is too costly for small and medium-sized contractors has prevented companies from getting a piece of the sustainable construction market action. A market which, I might add, is projected to top $523 billion by 2026. As customers have become increasingly aware of environmental concerns, research and development of sustainable materials have exploded. What does that mean for you? More building options, more growth opportunity, and a wider pool of potential clients if you’re willing to shift with the changing times. There are several innovative ways to go green. Some may be more relevant than others in your daily operation. Here are a few examples to get your creativity flowing:

  • Use of RMC (Ready Mixed Concrete) instead of bricks to reduces wastage
  • Radiant-cooling technology
  • Rainwater harvesting
  • Biodegradable or recycled construction material usage
  • IoT Integrated Automated Building Systems
  • DGU Windows to reduce sound and heat from coming in
  • Shadow concept construction

Off-site fabrication, improved on-site maintenance, lean practices, and landfill avoidance – the list truly goes on.

The reality is, as state and local governments get serious about going green, the opportunity for your business to integrate innovations is there for the taking. Consider that 77% of millennial consumers agree they will pay more for products from sustainable sources, according to Nielsen. Now more than ever, environmentally conscious clients are willing to trade off a slightly higher upfront investment for ongoing savings, especially when a contractor can prove their suggested design will perform as desired with advanced energy use modeling.

If you’re just breaking into this arena, it’s best to follow New York’s green building requirements, you can reference guidelines here. For starters, you should know financial solutions exist to make going green more affordable and cost-efficient for your operation. The Environmental Protection Agency (EPA) provides grants for qualified, environmentally responsible programs and The Small Business Administration (SBA) offers still more options for green solution construction. The New York State Energy Research and Development Authority offers financial and technical assistance programs and the New York Financial Incentives for Renewables and Energy Efficiency finds state and local financial incentives that promote renewable energy upgrades. Your organization can even achieve a Leadership in Energy and Environmental Design (LEED) rating by adhering to guidelines outlined and advocated by U.S. Green Building Council (USGBC). LEED-certified buildings qualify for tax benefits and incentives from tax credits, grants, and expedited building permits to reductions or waivers in fees. When you consider the federal tax credits for building energy efficient projects, you can start to see the true value of incorporating green practices.

Around the globe, countries are continuing to build incentives for going green.

The UK recently introduced the Green Homes Grant and similar structures are likely to be introduced in the states. The New York State Department of Environmental Conservation has already rolled out an aggressive plan to reduce greenhouse gas emissions to 40% of 1990 levels by 2030. They’ll no doubt need to further incentivize, support, and partner with contractors to accomplish that hefty goal. This could mean huge financial motivations for your client pool down the road, all the more reason to be progressive and familiarize your team with green practices now. In many instances, reducing energy consumption has gone from being a “good idea” to a business necessity. The more you explore adopting environmentally-friendly technology and materials, the more we think you will find building green is good for public health, the environment, and your bottom line. Have questions about your business plan? RBT’s dedicated team is here to answer your pressing questions. Contact us here, today.

Community College Crisis: Enrollment Challenges

Community College Crisis: Enrollment Challenges

In many economic downturns, cost-conscious families turn to more financially feasible options. With the average cost of college enrollment now climbing over $41,000 a year, community college is an accessible alternative, especially as travel restrictions mean more young people staying closer to home. But new research released in December 2020 reveals startling statistics, and an alarming trend for community colleges, as higher education institutions around the country grapple with the ongoing challenges the pandemic presents. Across the country, postsecondary enrollments declined 2.5% in fall 2020, nearly twice the rate of enrollment decline reported in fall 2019. But even more striking is the decline in community college enrollment – a 21% enrollment decrease on average, falling at a rate almost 20 times higher than pre-pandemic decline. The statewide drop New York is experiencing means community colleges need to get creative to appeal to students.

Creative Recruiting

Traditionally, the college application process can be a major source of stress for students. But with fewer students opting to pursue higher education some schools like Clinton Community College (CCC), are going after students to boost engagement. The Albany Times Union reports that if CCC gets federal approval, it will launch a program that would allow inmates at nearby Clinton Correctional Facility in Dannemora to take classes remotely. This would offset the community college’s loss of about 45% of its student enrollment over the last decade. They’re not alone in needing to fill class spots. New York’s 64-campus State University system opened this semester with 5.7% fewer students than it had one year ago according to data released by SUNY administrators. Several campuses offering graduate programs have seen a significant drop of 20% in the number of international students they attract. The statewide drop has been paced by a decline of some 10% in enrollments at SUNY’s community colleges. Expanding outreach and offering remote access to nontraditional groups is one creative option to offset costs and create sustainable growth in the coming years.

Keep Connected

Without in-person events, campus tours, or high school counseling sessions, students can start to feel disconnected from their education path. The National College Attainable Network suggests the administration should continue contact with students from the class of 2021 regularly so kids know where to turn when they need support. That means keeping email addresses, phone numbers, and other communications avenues updated so that as opportunities to get back on a postsecondary pathway arise, students can stay in the know. Additionally, the NCAN recommends adding more postsecondary on-ramps for the class of 2021. That might look like increasing support for national service programs like AmeriCorps and strengthening the college and career readiness programming they provide. Did you know that parents are the top influencer when it comes to students’ enrollment decisions? Students who provide parent contact information permitting schools to contact parents directly are 53% more likely to submit a college application according to EAB data.

Unfortunately, even in a pre-pandemic world, community colleges were facing challenges. A survey of college and university admissions directors completed by Inside Higher Ed revealed that 84% of community colleges have seen enrollment declines over the past two years. The implications of this new “lost class” are expected to be felt on a wide basis as young adults enter the workforce out of high school. While some are opting to take a gap year and resume education when in-person learning resumes, research shows students who delay enrollment are 64% less likely than their “on-time” peers to complete a bachelor’s degree and 18% less likely to complete any college credential. As we begin to feel the impact of the rollout and distribution of Covid-19 vaccines, a return to normalcy is on the horizon. Student outreach is the most important part of the next few months to increase awareness and encourage enrollment.