Month: March 2021

APPLY NOW: $1 Million in COVID Recovery Funding Now Open

Four centers within the New York Manufacturing Extension Partnership (NY MEP) network have launched competitive grant programs that will help manufacturers solve challenges created by COVID-19, emerge from the crisis more resilient and adaptable, and prepare for future emergencies. The NY MEP is a network of organizations that provide growth and innovation services to small and mid-sized manufacturers in every corner of the state to help them create and retain jobs, increase profits, and save time and money. Supported through a combination of federal and state funding, the NY MEP is overseen by Empire State Development’s Division of Science, Technology, and Innovation (NYSTAR). In 2019, the NY MEP created or retained 5,275 manufacturing jobs and generated $992 million in company cost savings, new investments, and increased or retained sales. Combined, the four programs which are open to companies in all regions of New York will award nearly $1 million to manufacturing and technology companies in New York State. The programs include:

Personal Protective Equipment Fund, led by ITAC
Supply Chain Grant Program, led by the Center for Economic Growth (CEG)
Next Generation Grant Program, led by the Manufacturing & Technology Enterprise Center (MTEC)
Manufacturing Reimagined Fund, led by FuzeHub

The Personal Protective Equipment Fund, managed by ITAC, the New York City regional NY MEP center, will award a total of $250,000 to companies in two phases:

Phase 1 focuses on companies extending the lifespan of personal protective equipment (PPE)
Phase 2 will support the scaling needs of PPE manufacturers across New York, selected manufacturers will receive a maximum $10,000 grant

The Supply Chain Grant Program, managed by CEG, the Capital Region’s NY MEP center, will award a total of $200,000 toward projects that help manufacturers address business challenges caused by pandemic-related supply chain disruptions. Up to 20 manufacturers with facilities in New York will receive a maximum $10,000 grant, which will help recipients take steps to optimize their supply chains, explore new markets and products, identify new customers and implement processes to become more competitive. Funding may be used to offset the costs of consultants, engineering assistance, implementation, training, and project-related materials.

The Next Generation Grant Program, managed by MTEC, the Mid-Hudson regional NY MEP center, will award a total of $350,000 to companies that need help optimizing their operations for the post-pandemic era. Recipients will receive up to $10,000 in services to ensure they are operating safely, effectively, and efficiently in a virtual business environment. MTEC and its partners will help identify ways to improve operations as well as opportunities to introduce new technologies or processes. The program’s areas of focus are lean manufacturing, cybersecurity, quality, and engineering.

The Manufacturing Reimagined Fund, managed by FuzeHub, the statewide NY MEP center, will award a total of $170,000 toward projects that align with COVID-related recovery efforts. Recipients will receive a maximum of $10,000 in technical assistance from a NYSTAR Innovation Network organization. Eligible projects will help manufacturers manage challenges created by COVID-19, emerge from the crisis more resilient and adaptable, and prepare for future emergencies. To qualify, applicants must attend one of FuzeHub’s “Manufacturing Reimagined” workshops or webinars.

The four grant programs are part of NY MEP’s larger COVID Recovery Initiative. Learn more here. At RBT, our Manufacturing Services Group works with businesses in diverse industries including building materials, food processing, specialty sporting goods, commercial lighting, health, beauty, pharmaceuticals, and more. Whatever the size of your venture, we can help you meet your goals, now and for the future. Contact us today to connect and schedule an appointment.

Source: NY MEP

The Pros of Going Paperless in the Pandemic

As you read this, look around at your desk. Are you seeing stacks, piles, folders full of paper? It should come as no surprise that all this clutter – uh, work, is causing major challenges for local government departments that are desperately trying to streamline processes and better serve the public. The pandemic has undoubtedly exposed the holes in the traditional processes that often waste valuable time and resources and result in productivity disruption and delays. Now more than ever, the public sector is under pressure to capture and retrieve data from documents quickly and make critical decisions based on available information. To better serve the public, many are moving away from solely relying on physical documents. What are the benefits of going paperless and is it even feasible with the deep budget cuts that New York municipalities are facing across the state?

Losing Paper means Gaining Green

The average US office worker goes through roughly 10,000 sheets of paper each year.

Yes, we said by ditching paper, you can expect to gain green. Besides going green – the environmental factor to consider when you reduce daily paper waste – there is money to be saved. Studies estimate that companies still using physical documents spend an average of $80 per employee on paper each year. By transitioning to a paperless system, you can phase out these expenses. What does your department spend on paper, printer ink, printer maintenance, and postage each year? These costs quickly add up when you consider how regularly staff members are sending and receiving contracts, forms, and other paper-based documents. Automating billing is another huge resource and cost-cutter. Instead of printing, folding, stuffing, stamping, addressing, and sending invoices, paperless billing means payments are a click away.

Make Paper Work with less Paperwork

US companies spend an average of four weeks every year trying to find lost documents.

Being able to scan documents tremendously reduces the time spent doing manual input and also immediately delivers the captured data for decision making. The majority of consumers today prefer electronic correspondence to paper correspondence because it is easier to keep track of and is more secure, so not only will you be helping your team, but your residents will thank you, too! Create a list of priorities and start shopping around for the right digital document management system for your team’s needs. We suggest selecting a document management program that includes automatic backup. Once your team is trained on the software and the paperless process, you can prioritize the backlog. If your team is overwhelmed scanning backlogged documents while handling incoming documents and digital files, consider hiring an additional resource, like an intern who can focus on backlogged documents.

Overcoming the Digital Dilemma

More than 70% of today’s businesses would fail within three weeks if they suffered a catastrophic loss of paper-based records due to fire or flood.

Does that describe your current workflow? The reality is, the public relies on your team with highly-sensitive, important documentation. In a world that’s increasingly digital, digitized documents can be archived in a safe, easily accessible way, reducing the costs of both needing to store the originals on-site and physically retrieve them. Digital files encourage collaboration that can be carried out effectively from the office or home. Making this timely transition may even help you attract younger talent as remote flexible work schedules become even more pervasive and sought after across the country.

Get Started!

47% of employees surveyed said that one of the top three reasons they do not go paperless is a lack of management initiatives or mandates.

Essentially, employees are ready and willing to go paperless, but often, nobody is leading the way. Create a plan today and set short and long-term goals for each department. Review the recently issued Retention and Disposition Schedule for New York Local Government Records (LGS-1) on the NYS Archives website and adopt it. Research and decide on a secure, centralized system and begin the process of scanning documents, and check with team members to ensure everyone is on the same page. Put concerns at ease by demonstrating how going paperless can actually eliminate potential compliance issues in existing paper documentation processes, and save team members valuable time, energy and effort. Have questions about how to get started? Our team is proud to work with local government clients and we understand that you have unique operational, accounting, and regulatory compliance considerations. Contact RBT, today.

Sources: Efilecabinet, Recordnations, EPA, OpenAccessGovernment

Budget Battle: Rising Material Costs – End in Sight?

Since the start of the pandemic, we’ve been looking for indications of a return to normalcy. Last week, we got some good news for contractors. After months of being sidelined, nearly 2,000 New York construction projects are getting the green light by the end of March. As part of its pandemic recovery effort, New York City Mayor Bill de Blasio announced that the city is restarting $17 billion of capital construction projects. Other projects around the state are resuming too, and while workers are excited to dust off their hard hats, many are left scratching their heads as they face historically high building material costs.

How Much Have Material Costs Spiked?

Lumber prices have skyrocketed more than 180% since last spring. A recent National Association of Home Builders analysis found that spikes in softwood lumber prices in the wake of the COVID-19 pandemic have caused the price of an average, new single-family home to increase by nearly $16,000. The price gains are having a ripple effect on other essential materials, too – costs for drywall, copper, steel studs and even vinyl siding have risen, as well as those for other items that include steel.

How Can Contractors Stay Competitive?

The reality is, builders can only pass on so much of their costs to buyers. Higher costs will continue to cut deeply into builder profitability and margins. According to Associated General Contractors of America Chief Economist Ken Simonson, lingering supply chain delays could end up muting the anticipated rebound in construction activity in the latter half of 2021. “Construction demand will remain spotty, both geographically, and by project type,” Simonson said. “Any owner who is expecting to build new or renovate had better factor in the likelihood that there will be delays, and depending on how the risk is shared with contractors, price increases.” Some construction attorneys are advising contractors to write in contingencies for material cost increases upfront in the form of force majeure clauses. Being transparent about the realities of the market is important so clients know what to expect. Another suggestion to avoid major delays and keep jobs on track? By closely tracking fluctuating material costs, substitute in different materials when you can. For example, while OSB is normally far less expensive than plywood, that’s not necessarily true right now, so when plywood is cheaper, spec it instead.

When Will Pricing Return to Normal?

Unfortunately, there isn’t a projected timeline for exactly when the industry can expect prices to come down, and because falling lumber prices are largely dependent on a return to “normalcy,” we need to continue to wait this period out. What we do know is for prices to drop, several things need to happen first. In the U.S., lumber production will need to increase to cover the lost supply from Canada or Canadian import duties will need to come down so that Canada can export more lumber to the United States. Shutdowns within the lumber industry will need to come to an end, and timber producers will need to increase the amount they’re producing. Joe Sanderson, managing director of natural resources at Domain Timber Advisors, points to these recent developments to keep an eye on:

The Canadian lumber tariff dropped in December from 20% to 9%, making Canadian lumber cheaper and sending more lumber imports to the U.S.
La Nina conditions are resulting in a dry weather pattern across much of the South. The drier-than-normal winter has led to additional logging capacity, which bolsters lumber supplies.
New lumber mills have come online in recent months.

The good news? America continues making strides in vaccination access across the country which is a major step in returning to pre-pandemic material pricing. Since vaccine distribution began in December, more than 90 million doses have been administered, reaching 17.7% of the total U.S. population, according to federal data collected by the Centers for Disease Control and Prevention. Industry advocates continue to seek prompt action from the Biden administration and other lawmakers by calling on domestic lumber producers to ramp up production to ease growing shortages, and making it a priority to work with Canada on a new softwood lumber agreement. RBT has the necessary experience to manage cash flows for projects both large and small. If you want to connect to learn about how we can help your business thrive even in these trying times, contact us today.

Sources: NEBS, AGC, Construction Dive, NAHB, CNBC, NPR

Critical Home Health Aide Crisis: Recruiting Guide

Hundreds of thousands of older New Yorkers and people living with disabilities rely on home health aides to carry out daily tasks many of us take for granted. From bathing and dressing to meal preparation, routine cleaning, shopping, and even going to school or work – they fill the gap and exponentially improve people’s quality of life. The problem is, the need is growing, and recent revelations in our state’s care and funding threshold make the disparity between qualified aides and demand feel more like an endless void. The COVID-19 pandemic has increased demand for home care even more, while further depressing the labor supply. In a fall 2020 survey, 85 percent of participating New York State home care agencies reported worsening staff shortages.

How do we recruit and retain these essential workers in the middle of a pandemic?

Before we talk about solutions let’s build some more context. While the challenges we are up against may feel overwhelming, we have to understand the problems to fix them. In New York, the number of home health aide and personal care aide jobs is projected to rise to over 700,000 by 2028, driven by employment in home care agencies, private households, and public programs like the Medicaid Consumer Directed Personal Assistance Program (CDPAP). High turnover adds to the problem: employers across the state need to recruit an average of 26,510 new aides each year just to keep up with the growing demand for care, as well as an additional 71,680 workers each year to replace the thousands of aides who leave these occupations or exit the labor force entirely.

Below we are breaking down some of the most critical suggestions laid out by patients, families, providers, aides, and advocates. We will also link different support sites we encourage you to visit if you want to learn more or support the growing need to fill the aide gap in New York.

Provide financial care sustainability

Organize support for new legislation aimed at raising wages for home care workers, like the newly launched Fair Pay for Home Care
Currently, the median hourly wage for home-care workers in New York is $13.80, and the median annual income is $22,000. The bill looks to bump home-care wages to $22 hourly, or $44,000 yearly in New York City; $19.25 or $35,000 on Long Island and in Westchester; and $16.50 hourly or $30,000 in the rest of the state.
A new report examining the impact of raising wages for home-care workers concludes that economic benefits, such as income and sales-tax revenue, would far exceed the costs. Experts estimate it would cost $4 billion annually to fund increases, which represents just over 1 percent of total annual spending within New York’s healthcare system.

Address urgent home care and hospice workforce needs

Create opportunities across state funding pools and other sources to address core barriers to home care workforce supply (e.g., transportation, childcare, peer collaboration, professional development, and reduction in administrative burden).
Support capacity increases through state law and regulatory changes that create new training opportunities, entrants, and case assignment options.

Continue and expand COVID-19 era regulatory relief

Establish a process to continue, expand and/or make permanent areas of COVID-19 era flexibilities that are beneficial to worker and patient safety, efficiency, service capacity, access, and quality, including telehealth flexibility.
Make the cost of personal protective equipment and related safety protocols ongoing components of the state’s health care reimbursement.

Nearly 1,000,000 positions must be filled to meet the demand for aides over the next decade. A 2018–2019 statewide survey of home care agencies found that, on average, 17 percent of home care positions were left unfilled due to staff shortages. You don’t need to be an accountant to recognize that these realities are not sustainable. Because home care work is physically and emotionally stressful, the path towards viable recruitment and retention is clouded at best. However, we believe by considering the suggestions above, real progress can be made, and this essential industry can attract more compassionate, fulfilled professionals. At RBT, we understand the diverse and complicated world of healthcare. Feel free to contact our dedicated team for more information on our healthcare services.

Community Colleges: Is On-Campus Living Right for You?

In a virtual world full of digital events and Zoom lectures, college students are dreaming of the return of normalcy. Simple activities we took for granted, like strolling the campus grounds on a sunny day, hurrying to class with friends, or entering a crowded dorm at the end of a long night to catch a few hours of sleep, seem a distant memory. Soon enough, in-person classes will resume, and students will once again fill bustling campuses. But for a long time, many community college students didn’t have an option to enjoy campus living, with many working entirely from home long before the rest of us learned to adjust to remote scheduling. So, as we have all been forced to step away from campus living, what can we learn from the community colleges that have shifted to a dorm experience structure in recent years? And as we long to connect in person, could restructuring other community colleges mean a boost to enrollment and a shift in public perception?

Benefits of Campus Living

Every college is unique, and if your school is more focused on adult and graduate students, investing in a campus living plan may not make sense. But many community colleges are integrating some of the campus living benefits that four-year colleges take advantage of:

Better proximity to college resources like the library and recreation center
Exposure to international lifestyles that comes from living near fellow students
The ability to fully immerse oneself in the college experience
Apartments or dormitories are often fully furnished and affordable, students don’t have to deal with the hassle of paying separately for utilities and amenities, providing an economic housing option to cash-strapped students

According to a recent poll conducted by the American Association of Community Colleges, the number of community colleges that offer on-campus housing in the United States has risen dramatically in the past two decades, with about 25% of community colleges currently offering this option. In fact, 15 community colleges across New York feature on-campus housing, including Dutchess Community College as well as Sullivan County Community College right here in Hudson Valley. Some other successful New York on-campus community colleges include Tompkins Cortland, Herkimer, and Onondaga.

Two-year colleges serve diverse populations ranging from high school students in dual-enrollment courses to senior citizens, working adults, and traditional-age students, and experts say COVID-19 is accelerating the challenges community colleges faced before the pandemic and intensifying the competition. Fall enrollment at community colleges was down 10 percent from a year earlier, according to National Student Clearinghouse data from mid-December. While dorm life isn’t for everyone, it can provide additional resources and strong recruiting incentives to attract students with a range of needs. If you haven’t explored this consideration, it’s worth surveying your student population especially as incoming students consider their future educational options. Our dedicated team is here for you to answer financial planning questions you might have about your path ahead.

PPP and Your Business

Across the country, small businesses create two-thirds of new jobs and employ nearly half of America’s workers, yet nearly a year into the COVID-19 pandemic, many are still struggling to survive. If you feel like there are constant updates surrounding the Paycheck Protection Program, you’re not alone. This week, the Biden administration announced several PPP changes in an effort to reach minority-owned and very small businesses that may have previously missed out on accessing loans. With the March 31^st PPP application closing date looming, your business may benefit from some of the updates. Below is a summary of the main updates to keep in mind.

Bigger Focus on Small Business

Did you know that 98% of small businesses have fewer than 20 employees? Maybe this describes your business or a local vendor you work closely with. Starting Wednesday of this week, small businesses with fewer than 20 employees will have a two-week exclusive window to apply for the funding. Bigger businesses will be blocked during that time period. The 14-day exclusive application period will allow lenders to focus on serving these smallest businesses.

Other Eligibility Changes

Starting in March, self-employed, sole proprietors and independent contractors will now qualify for more money. They were previously excluded altogether or received as little as $1 because the loan amounts were calculated based on the number of employees. The loan program will also open up to small business owners with non-fraud-related felonies as long as the applicant or owner is not incarcerated at the time of the application. With millions of Americans delinquent on student loans, those struggling to pay off student loan debt can now apply to the program, too. Working with the Departments of the Treasury and Education, the SBA will remove the student loan delinquency restriction to broaden access to the PPP. Some non-citizen residents, such as Green Card holders or those in the country on visas were previously excluded but can also now apply by using their Individual Taxpayer Identification Numbers (ITINs) for relief.

The PPP application is currently being revamped and the SBA website is being updated to help more applicants find relief option resources and complete applications. To improve access to capital for small businesses, the SBA is also in the process of launching a new initiative to deepen its relationships with lenders. This model will increase the opportunity for lenders to provide recommendations and ask questions about the PPP and drive the resolution of open questions and concerns in a more streamlined way. The latest PPP, which began on January 11 and runs through the end of March, has already paid out $133.5 billion in loans — about half of the $284 billion allocated by Congress — with an average loan under $74,000.

Do you have questions about your construction company and the new changes we mentioned above? To learn if previous restrictions were preventing you from accessing the funds you need, contact our team today before time runs out. If you want streamlined construction accounting in Mid-Hudson Valley, NY, RBT has the essential services you’re looking for.

Sources: Whitehouse, Forbes

Stand Out: Social Media Strategy Secrets

Digital engagement has become a critical tool to help create the trust and transparency with which government entities have traditionally struggled. Hundreds of agencies across the country have embraced social media to encourage one-on-one and one-to-many engagement. If you’re not one of them, you’re missing out on valuable residential feedback, and even the opportunity to attract new visitors or families interested in relocating. Can you afford to stay silent while other local governments gain trust and streamline communication? We can’t physically connect in person right now, but that’s no excuse to not make an effort online – in fact, it strengthens the argument that your team should put more effort into building a digital community. If you haven’t already tapped into valuable, free platforms, here are seven reasons you should start utilizing social media right now to stay connected:

Crime prevention/law enforcement assistance
Emergency alerts/severe weather updates
Townhall/council meetings
Public service announcements
Road closures/construction
Local employment opportunities
Community event awareness

Ok, ready to get started? While popular social media platforms like Facebook may come to mind, there are other options you may not have on your radar. Consider tapping into the following to make the most out of your new digital presence:

Nextdoor: This is a hyper-local social networking platform just for neighbors. This app verifies residents, so you reach your community right where they live. By utilizing this platform, you can build direct relationships and drive awareness in the community.

Instagram: Take advantage of this platform if you’re trying to boost engagement with young adults in your community. Consider that 75% of 18–24-year-olds use Instagram, so if you’re missing out on this platform, you’re missing out on connecting with a huge subset of your residents. Utilize posts, daily stories, and tagging local businesses to promote events and support the local economy.

Twitter: This is an exciting option because it allows for a continual dialogue between local government officials and concerned community members. You can also create polls and get real-time feedback about a community issue. Plus here’s a fun fact to help you boost engagement: according to Twitter, tweets with photos are 62% more likely to be retweeted than plain text tweets.

Want to reach the widest audience possible? Of course you do! Schedule posts in advance to create consistent messaging. Inevitably other high-priority governmental duties can force your digital presence to take a backseat. Avoid a weak online following by developing a monthly content calendar. Keep your team accountable by brainstorming and planning out posts, and be sure to host virtual events to engage with your community on a regular basis.

When used correctly, social media is an effective way to address concerns and solve problems. Still not sure where to get started? Many organizations and associations can help you begin. The National Disaster Preparedness Training Center provides government communicators with emergency-specific social media training. Organizations like Government Social Media and Engaging Local Government Leaders (ELGL) also play a vital role in sharing best practices, connecting a diverse network of government professionals, and translating marketing and communications strategies that work to improve the service government provides. Want to discuss your social strategy? We are happy to help! RBT CPAs offer a full range of services for our governmental clients. Contact our team today.

Miscalculating KPIs is Costing You Money

In most cases, the two biggest expenses in your manufacturing business are labor and raw materials. In today’s business world, time is money and we understand the pandemic has created many unforeseen obstacles concerning product availability and dependable distribution. To stay competitive a company must define its mission, set attainable goals, and deliver a product that customers demand. If you’re not taking time to review key performance indicator (KPI) basics, you may be wasting valuable time, energy, and money. Reassessing your KPIs can improve workflow and fix the issues that are compromising the quality of your product, service, and reputation.

KPIs measure key company activities to ensure your team is operating efficiently.

While performance metrics also measure activity, don’t mistake these for KPIs. A performance metric can be used to measure a variety of activities ranging from the number of staff meetings employees attend to the amount of available product. Meanwhile, a KPI measures activities that are critical to the success or failure of your company. Measuring the number of staff meetings employees attend won’t make or break a company. But measuring the amount of product available for customers is a key indicator of your company’s ability to compete successfully.

One way to evaluate if a measurement is a key performance indicator or simply a performance metric is whether management will take action if the KPI is not met.

If management ignores the results of the KPI, it isn’t important enough to the success of your company, and it shouldn’t be considered a key performance indicator. If a KPI is put in place, management must have someone log and monitor activity. Management must also define a clear course of action to follow once the KPI results are known.

In addition to evaluating a critical activity, a KPI must be:

Realistic: Eliminating downtime isn’t a realistic KPI. An effective KPI would be “to reduce downtime by 5% through scheduled maintenance days.”
Specific: “Delivered on time” is not specific. A better KPI is “to complete delivery within three days of receiving the customer’s order.”
Measurable: The activity or performance must be quantifiable, such as tracking the rate of returned product.

Key performance indicators also:

Highlight areas where increased efficiency or a decrease in resources can be achieved.
Provide a progress illustration by presenting data in a chart or graphic.
Help identify seasonal trends.

Here is an example of a good manufacturing facility KPI:

Company goal: To provide superior customer service through quick delivery.

Key performance indicator: Lead time

Definition: Lead time is the length of time it takes from the beginning of the manufacturing process to the time the final product is delivered to the customer.

How it will be measured: Tracking the customer waiting time, which is the length of time between when a customer places an order and the customer receives the product.

Target: To reduce lead time by 2 percent.

Individual departments will have key performance indicators that further the company goal of providing superior service by reducing the lead time. A KPI for the manufacturing division might be to track the cycle time. The distribution division might track the finished goods inventory or the on-time and complete shipping rates. A KPI for the customer service department might be to track the rate of returned products. Implementing and tracking key performance indicators provides management with solid data to help make informed decisions. KPIs encourage a team effort toward achieving the company’s goals by promoting cooperation and clarity for workers. Taking simple, cohesive steps like these can reenergize your team and ensure all departments are synchronized in their daily, monthly, and quarterly objectives. For more ideas to help your business thrive in 2021, contact our Manufacturing Services Group today. We work with businesses in diverse industries including building materials, food processing, specialty sporting goods, commercial lighting, health, beauty, pharmaceuticals, and more. Whatever the size of your venture, we can help you meet your goals, now and for the future.