Month: July 2021

Construction Confusion Surrounding Delta Variant

You have probably heard talks of the delta variant of COVID-19 while scanning the latest news headlines.

Within New York State, we are entering into yet another phase of unchartered territory for private companies to navigate during this ongoing public health crisis. Given how much more easily delta is spread, should employers be concerned about this new threat? We want to ensure that your team is prepared for the next steps to stay safe and healthy on your job sites, with as little disruption as possible.

The delta variant is a more transmissible, more contagious strain of COVID-19.

Currently, it accounts for about 83% of new cases in the United States. It is surging in areas with lagging vaccination rates, like the Midwest and upper Mountain States, where cases and hospitalizations have recently spiked. Evidence is mounting that the delta variant is capable of infecting fully vaccinated people at a greater rate than previous versions, and concerns have been raised that they may spread the virus to extremely vulnerable, unvaccinated populations, according to virologists and epidemiologists. Ironically as the conversation surrounding the rapid delta strain spread heats up, statewide precautions are cooling down.

When June’s federal statistics indicated that New York State cleared the 70 percent of vaccinated adults threshold, Gov. Cuomo lifted all state-mandated COVID-19 health and safety requirements.

And while current CDC evidence finds that the current vaccines are effective against the delta variant (meaning those vaccinated will likely avoid getting severely sick or dying), discussion is swirling about vaccine effectiveness beyond the six-month mark. Just weeks ago, the city’s building department relaxed face-covering guidance per state and federal regulations. “The Department is rescinding our COVID enforcement to reflect changes in state guidelines,” said Department of Buildings spokesperson Seth Stein in early July. Just this week, however, New York City Mayor Bill de Blasio announced that all New York City workers, including police, fire, and education employees, will be required to be vaccinated by September 13 or else submit to a weekly test. The mayor also urged private entities to consider setting similar vaccine mandates for their workplaces. If you’re confused about what the wisest next move is as an employer, you’re not alone.

As you’ve likely noticed, there has been a lot of mixed messaging from state officials throughout the pandemic, and new data is constantly changing the game plan for public safety, which means you need to be diligently aware of official health guidance.

Construction companies have largely adopted their own, individualized variations of safety precautions to protect workers. Some sites require masks to be worn at all times, others only require masks for unvaccinated employees or site visitors. Some are still adhering to six-foot social distancing measures, others have lifted that requirement completely. While construction site requirements in the city do not represent sites throughout the state, oftentimes the industry sees a ripple effect statewide. At this time, your company should reassess current site work safety protocols and determine whether or not workers are satisfied and feeling protected. If you haven’t checked in with your team via an in-person meeting or a digital anonymous survey lately, now is the time. Ultimately while health officials and lawmakers are citing rising concern over the new delta strain, it is up to your team to determine what course of action makes the most sense for your business and work culture. At RBT, we aim to pass along useful, relevant information to help our communities succeed, grow and prosper. As we continue to dedicate time and resources to helping our construction clients achieve success, we look forward to connecting with you and your team.

Sources: DOL, CDC, NPR, Reuters

What it Means to Get Lean: 4 Steps to Smarter Manufacturing

Manufacturing success typically relies this golden rule: produce more, spend less.

There is no better illustration of how to successfully follow that rule, than to practice lean manufacturing. Lean manufacturing is defined by Twi Global as a production process based on an ideology of maximizing productivity while simultaneously minimizing waste within a manufacturing operation. The lean principle sees waste as anything that does not add to the value that customers are willing to pay for. The benefits of lean manufacturing include reduced lead times and operating costs and improved product quality. Lean companies operate as efficiently as possible, using the least possible staff time, equipment, and raw materials. In the high-cost, high-risk environment we’re living in, efficient use of raw materials is more essential than ever before. Below are four steps your team can take to boost profits as we finish out the year and head into 2022.

Use Raw Materials More Efficiently

As you’re well aware, the prices of many manufacturing inputs — like metals, chemicals, and lumber — have skyrocketed over the last year. In June, manufacturers reported the biggest price jump in 42 years. The Institute for Supply Management’s manufacturing price index rose to 92.1% last month, up 4.1% and hitting its highest mark since July 1979. It was the 13th straight month of price increases in the sector. Add to the mix that rising fuel prices have increased shipping costs, cyberattacks, and geopolitical instability threaten the viability of supply chains due to delays and price fluctuations. It’s not exactly an easy environment to operate in.

Rethink the term “waste” if you think it just refers to scraps on the plant floor. Waste can include excessive energy consumption, defects, motion, transport, queue time, and inventory. Analytical tools can help reduce waste by limiting the number of “touchpoints” that slow down or complicate the production process. Start by collecting data at every touchpoint in the supply chain and production cycle. Apply the metrics that make sense for your industry. If your processes require raw materials to cool down or heat up, factor the time into your equation. When your fact-finding is complete, assess the ways you can increase future efficiency.

Give Incentives to Workers

Remember, frontline workers often provide the most effective solutions. As a bonus, engaging your workers in the brainstorming process can help with their buy-in when you implement changes. We cannot overstate enough how essential workers are in terms of successful lean manufacturing. Financial incentives can help persuade your employees to ramp up production. You can approach this through:

Individual incentives: which focus on specific tasks performed by frontline workers to increase productivity and avoid delays. If you can isolate certain tasks where a definitive need for improvement is identified, giving individuals a specific list of set goals may be the optimal approach.

Team incentives: which reward collective efforts. Because most tasks are done in conjunction with others, team incentives are usually easier to implement. Manufacturers can provide team incentives to improve the overall efficiency of the assembly line and encourages cooperation among workers.

Extend Lean Principles to Offices

Lean efforts initially focus on the production process because it provides the most significant direct benefits, but the same principles can be applied to your back offices and corporate headquarters. These locations may also be affected by cost increases, supply disruptions, and delays. Apply the principles you’ve learned on the plant floor to selling, accounting, and other administrative functions. For instance, you might break office staffers into groups based on products or marketing aspects.

Seek Outside Guidance

It’s easy to miss operational inefficiencies when you’re too close to the process. At some point, you might call in external guidance. This could include reaching out to industry specialists or financial consultants with experience helping companies in your niche implement lean strategies. Do your research and rely only on reputable sources. For more insight on how to help your business thrive and adapt, contact our Manufacturing Services Group today to schedule a conversation. Whatever the size of your venture, we can help you meet your immediate and long-term goals.

How to Create a Multi-Year Plan

Throughout the past several months, RBT dedicated our time to ensuring that non-entitlement units (NEUs) throughout the state were fully aware and prepared to receive Coronavirus Local Fiscal Recovery Funds provided by the Federal American Rescue Plan Act (ARPA) through weekly shows, you can review here. The July 9^th application deadline quickly came and passed, and NEUs got to work requesting this unprecedented funding. Thankfully we were able to share the insight from various local leaders throughout Hudson Valley, to answer questions and spark creative eligible funding ideas. So with the historical addition of ARPA funding available to your community, how do you effectively assess your needs? If you haven’t already established a multi-year plan, now is the time to create your community wish-list, and gain valuable public viewpoints.

Whether ARPA funding will be used to address continuing pandemic-related crises and recovery efforts, to improve local infrastructure, or an array of other options is ultimately up to your team. Making informed decisions should not only focus on the needs of the moment but should also consider how today’s decisions will impact the future of the community. Specifically, governing boards need to understand how one-time revenues, like ARPA monies, can have long-term impacts on the future of local government and school district operations. These monies should be used to first fund non-recurring expenditures that meet the requirements outlined in the U.S. Department of Education (DOE) and U.S. Department of Treasury’s (Treasury) resources. While these monies are not prohibited from being used for recurring expenses, be mindful that if used in this manner, a gap will be created in the ensuing year’s budget, as this one-time revenue source will no longer be available. Remember, you have access to this federal money until 2024 to allocate and until 2026 to spend. To effectively manage local capital assets, you must develop a long-term plan to address how you monitor and maintain assets and determine how much you can spend within your budget. By developing a structured approach, you can help avoid unexpected expenses that pop up.

Developing a multi-year plan allows you to:

Document procedures to help guide management in decision making
Establish priorities and determine infrastructure needs
Determine the cost-effectiveness of maintaining existing assets versus financing new assets
Develop a structured approach for making decisions to fund capital assets
Identify which assets need attention in any given year
Inform the public and collect feedback on future capital projects/purchases

When developing a long-range plan, ask your team:

Who will be responsible for overseeing the plan’s development and implementation?
How will an asset inventory and requests for capital assets be developed for the plan?
How many years should capital needs be projected?
Will property (such as buildings, land, vehicles and equipment) need to be acquired, constructed or reconstructed?
Who will be involved during the plan’s development (for example, board members, department heads, the general public, special interest groups)?

Your multi-year plan should detail when/how capital purchases will be made and paid for. Include:

An inventory of assets your municipality owns
Identification of the new capital assets needed
The priority in which assets are to be acquired, replaced, or repaired
Estimated costs of acquisition, replacement, or repair
The method by which assets will be financed

Together with your governing board, you should review the plan annually as a part of your budget process.

Make necessary adjustments, and monitor plan results over time to track goal progress. The governing board needs to communicate regularly not only with each other but also with the comptroller, controller/treasurer, and various department heads. Communication is key to ensure that those charged with making decisions have all the necessary information they need to be able to fulfill their responsibilities. As there are further developments our Firm will continue to inform local government leaders. Please feel free to contact our dedicated RBT team to discuss your local needs.

Source: OSC

Hiring in Hudson Valley: Where are the Workers?

As we’ve entered the digital age, we’ve all become increasingly accustomed to one-click culture.

Even if you’re used to New York traffic, or tend to be a traditional in-store shopper, you’re probably guilty of a thinner patience level. As you’re well aware, manufacturing shutdowns that resulted from the COVID-19 pandemic created unprecedented backlogs across industries. This new delayed-delivery world is a stark contrast for a society that’s used to getting our goods and services on demand. While the U.S. economic recovery we are currently experiencing is no doubt a huge relief and a sign of positive things to come, it’s recovering so rapidly from the coronavirus pandemic that it’s putting a big strain on many companies. The manufacturing industry is having a harder time finding materials or workers to fill a record number of open jobs. Experts explain that the shortages have triggered a sharp increase in inflation and in some cases have forced companies to scale back production. Most surprising of all? The shortage of labor, even as national unemployment still remains quite high. So, where are the workers the industry so desperately needs, and what is impacting New York manufacturing companies?

About 5 million fewer Americans are employed in manufacturing today compared to 20 years ago.

Employers hope to slow or reverse that trend in part by reaching out to groups traditionally underrepresented in the industry, and they’re under pressure to do that quickly. The median age of an American working in manufacturing is 44 years old according to the U.S. Bureau of Labor Statistics, and older workers are retiring faster than they are being replaced. Consider your own team for a moment. Have you evaluated the average age of your employees in the past year? It’s critical to have a replacement plan in place, and the reality is the competition is fierce, particularly in the Hudson Valley Region. Regional manufacturers are not only dealing with a retiring population but additional local competition. Consider the newly opened Amazon Distribution Center in the Town of Montgomery. Amazon employees at the more than one-million-square-foot fulfillment center will work alongside innovative technology to pick, pack and ship large customer items and household goods. In addition, Amazon will continue to hire for roles in human resources, operations management, safety, security, finance, and information technology. Meanwhile, site work has commenced on the $120-million, 1.2-million-square-foot Medline Pharmaceutical Warehouse in Montgomery which is being developed on 118 acres on the Aden Brook Farm site. Medline will relocate its current facility workforce of 340 in Wawaynada and plans to add 150 to 200 new positions in the coming years. And don’t forget the new $120 million dollar Amy’s Kitchen Factory plant set to open in Goshen in 2022, which is expected to employ 680 people at its massive 389,000-square-foot facility.

Given the reality local manufacturers face, it’s important to sit down with decision-makers and employees alike and determine what does and doesn’t work within your current business model.

Can you restructure your budget to accommodate an increase in pay and benefits to remain competitive? How do your core employees feel about your work culture? Do your team members feel valued and heard? As of July 6, 2021, the average annual pay for a factory worker in New York is $28,692 a year which works out to be approximately $13.79 an hour. Breaking this number down further, this is equivalent to $552/week or $2,391/month. According to ZipRecruiter’s current data, top earners (90th percentile) make $35,648 annually in New York. Because the average pay range for a factory worker in New York varies little (under $5,000), it suggests that regardless of location, there are not many opportunities for increased pay or advancement, even with several years of experience. This troubling statistic likely contributes to the mounting challenge in the road to re-staff and expand operations. Consider this information when you sit down to make transformative adjustments with your team. For more insight on how to help your business thrive and adapt, contact our Manufacturing Services Group today to schedule a brief conversation. Whatever the size of your venture, we can help you meet your immediate and long-term goals.

Sources: Wbur, U.S. Bureau of Labor Statistics, CNN, Real Estate In Depth

Breaking Ground: Casino Construction Coming Soon

Remember when the highlight of your weekend was hitting the food court together with your friends at the mall? The number of malls in the U.S. grew more than twice as fast as the population between 1970 and 2015 but boy, have times changed. The crowds have faded, countless storefronts have shuttered, and now, malls across New York and much of the country are looking a lot less lively. The opening of the 5.6 million square foot Mall of America in 1992 might have looked like the continuation of an American staple, but in reality, right after that goliath opened, Amazon was born, and the Internet exploded. It was the beginning of the end of the mall era. In the US alone, we’re expecting to have 300 million online shoppers by 2023. Pre-pandemic statistics from 2020 indicate that 69% of Americans have shopped online, and 25% of Americans shop online at least once per month. With the reliance on digital shopping only exploding across demographics during the economic shutdown, there’s no doubt those numbers are growing. So what to do with all of the sprawling, commercial space our communities face? The town of Newburgh Planning Board has approved plans to repurpose the Newburgh Mall and it’s promising to bring hundreds of local jobs, and millions in local revenue.

As we’ve established, the coronavirus pandemic accelerated a demise that was already underway. Coresight Research estimates 25% of America’s roughly 1,000 malls will close over the next three to five years. Just last month, the town of Newburgh Planning Board approved plans to create Resorts World Hudson Valley inside the Newburgh Mall. The casino will feature 1,300 electronic games, a bar and lounge, and is expected to draw several new businesses to the mall that currently has 17 vacant storefronts. According to Meghan Taylor, Resorts World vice president for government affairs, the $32 million project will employ union labor. “This project would be creating 200 to 225 full-time jobs with an average annual salary of $74,000 a year including salary and benefits, the large majority of that being union employees from the Hotel Trade Council Union,” she said. “That would mean a total of almost $15.5 million in annual wages here in the Town of Newburgh.” The construction phase of the project will employ approximately 200 local union workers. Taylor said Resorts World, which also operates the $1 billion casino resort that opened near Monticello in 2018, would pay out $3 million annually as host fees to the Town of Newburgh and Orange County. The company has said construction could take six to 12 months, depending on whether pandemic-related shortages of building materials cause further delays. Last month, company representatives said they planned to start work at some point this summer and open the casino in the first three months of 2022. “We look forward to breaking ground soon and delivering on our commitment to create good-paying union jobs for local residents, help revitalize the Newburgh Mall, serve as an economic engine in the Hudson Valley, and begin generating revenue for New York State’s public schools,” Taylor said. Resorts World has projected the slot-like devices at its Newburgh casino will generate $160 million in gross gaming revenue, part of which goes to the state to spend on education. According to New York State Sen. James Skoufis who negotiated the deal to bring the gaming center to Orange County, this new addition to the community is a game-changer. “The mall has been around for many decades and it’s been on a steep decline for a while now and this changes the entire trajectory of that property,” he said of the project.

Ultimately, the redevelopment of properties within Hudson Valley could range from straightforward to complex, with an assortment of public-partnership arrangements or purely private redevelopment. Hopefully, the completion of this particular project will prompt more local economic redevelopment and additional workforce opportunities for local contractors. As with any project, working with local government and neighborhood residents throughout each phase of a project to meet zoning regulations and address neighborhood concerns would be essential to the success of future property conversion. Beyond the variety of services we perform for our clients at RBT, we aim to pass along useful, relevant information to help our communities succeed, grow and prosper. As we continue to dedicate time and resources to helping our construction clients achieve success, we look forward to connecting with you and your team.

Sources: CNBC, N12, Mid Hudson News, Forbes, Optin Monster, Times Herold Record

The New Staffing Law You Need to Know

Just days ago on June 18, Governor Cuomo signed two bills into law that will change the day-to-day practice for New York hospital and nursing home workers. This new legislation establishes minimum staffing levels for hospitals and nursing homes, asserting understaffing practices at some facilities contributed to COVID-19 infections and deaths. The health care staffing bills are the result of years of debate and discussion and have been highly anticipated by many medical staff members who face physical and mental burn-out after more than a year of unprecedented loss, and immeasurable challenges. For many, it feels like some relief is finally on the way, and for facilities statewide, it means changes are in order immediately to rise to the occasion and properly staff sites.

One bill establishes minimum staffing hours per resident and related provisions for nursing home care statewide.

It comes after more than 13,000 New Yorkers died from COVID-19 complications in long-term care facilities. Nationwide, deaths among Medicare patients in nursing homes soared by 32% last year, with two devastating spikes eight months apart, a government watchdog reported Tuesday. The report from the inspector general of the Department of Health and Human Services found that about 4 in 10 Medicare recipients in nursing homes had or likely had COVID-19 in 2020 and that deaths overall jumped by 169,291 from the previous year before the coronavirus appeared.

The other bill requires each New York hospital to establish a committee of nurses and administrators by January 1, 2022, to devise a staffing plan.

It must include specific guidelines or ratios, matrices, or grids indicating how many patients are assigned to each nurse and the number of ancillary staff in each unit. The registered nurses, licensed practical nurses, and ancillary staff shall be selected by the staff members themselves. Regardless of the number of committee members, the clinical staff shall have 50 percent of the committee’s votes, with hospital administrators the other 50 percent. Staff advocates view this new law as a critical step in giving voices to the frontline workers who have been confronted with this deadly disease over the past two years. The measure was applauded by the New York State Nurses Association, the labor group that represents nurses in hospitals across the state. “When hospitals and nursing homes fail to staff to safe standards, it’s the patients and residents who suffer,” said Judy Sheridan-Gonzalez, the group’s president. “These new laws have the potential to significantly improve the quality of care, to prevent the serious complications that result from understaffing, and to begin to address the gross inequities that exist in our health care system.”

If your facility doesn’t comply, you could face steep fines and violations.

The Health Department is responsible for investigating potential violations of the staffing plan requirements or any unresolved complaints made to the staffing committees. The laws also include provisions to make staffing data publicly available to staff and patients. Hospitals and nursing home facilities alike may be subject to civil penalties for failing to remedy violations if the violations were caused by their failure to act. The time is now to take action and create comprehensive plans that comply with these new requirements.

Sources: Governor.ny, Healthcare Dive, US News

School’s Out for Summer, but are you Staying Connected?

It’s the start of summer, and you know what that means! Your staff has officially survived one of the craziest and most challenging years educators have faced in modern history. Sure, there were probably some tears (and not just from the students) but there was also a lot of flexibility, adaptability, and teamwork. It’s an accomplishment worth celebrating. One of the many challenges of the past calendar year was finding innovative ways to effectively communicate with students and with their parents. For some Hudson Valley school districts, this meant rolling up your sleeves and getting creative. Some schools leaned into the virtual world. Others made a point to ramp up email communications with parents. Regular check-ins on YouTube became the norm for other districts, and some built out their social media presence to stay connected. Now that the dog days of summer are finally here, what does this mean for communication with your students and parents? Students who know and feel known by their teachers are more likely to work hard, behave well, and be open to new ideas. Similarly, families who feel connected to the school are more likely to support the school’s mission and teachers. Your staff worked diligently all year to build and nurture relationships with students and their families. Why stop over the summer?

Encourage Summer School Enrollment, and Attendance

Millions of children this summer will participate in what’s expected to be the largest summer-school program in history, powered by more than $1.2 billion in targeted federal post-pandemic assistance from the American Rescue Plan. After a school year in which many of the nation’s approximately 56 million K-12 students struggled through some form of remote learning, lost classroom days, and social isolation, summer 2021 programs face the daunting task of teaching academics, while also addressing mental health challenges among students. Many will also be confronted with the nutrition issues children face who missed out on weeks or months of school meals. “We need summer school to be really something different than it has been before. It can’t just be about remediation. It has to be about helping kids get their mojo back,” said Randi Weingarten, president of the 1.7 million-member American Federation of Teachers union. “This is not about cramming, not about all of a sudden taking 10 months of algebra and putting it into six weeks and collapsing it all together and saying that’s school. This year, it’s about really trying to help kids recover academically, emotionally and socially,” said Weingarten. “And what we’ve learned is that if you help them recover emotionally and socially, it will help them recover academically.”

Stay Connected

Just because you aren’t able to check in with your students daily, doesn’t mean communication has to be cut off until the fall. While it is equally as important for teachers and staff to recharge and unplug after a stressful year, it’s critical to check in with students, particularly ones you are concerned could fall further behind in the COVID-19 learning gap, without proper attention. Reaching out online, via email, over the phone, or even committing to approved in-person home visits with another trusted staff member could be viable options. Many kids are dealing with a multitude of factors working against them as they face months without formal learning opportunities or school structure. Some may also face technology gaps at home, hindering their ability to keep up with summer reading projects or other classroom skills. Consider reaching out with a list of local Hudson Valley resources that kids and parents can take advantage of, free of charge. This site is a fantastic local resource for parents and children to sift through free and at-cost programs kids can attend throughout Hudson Valley all summer long.

It’s important to remember that there is no one-size-fits-all solution for students in different districts with different levels of needs, but having a conversation about what will benefit your students is the first step in a positive direction. What works for one school—or one individual class—may be completely different from the requirements of another. At RBT, we are committed to keeping education professionals informed of important updates that may impact your future planning. We extend a no-cost consultation to anyone with further questions or interest in working with our dedicated team of professionals.

Sources: Hudson Valley, USAToday