The Goods (Winter 2018-19) by Kentucky Association of Manufacturers

GOODS

THE

WINTER 2018-19

KENTUCKY ASSOCIATION OF MANUFACTURERS

THE GOODS

Contents 3 New and Renewing Members 4 Executive Shop Talk with Lee Lingo 5 Upcoming Events and Board Listing Advocate. Educate. Innovate.

8 Advocacy Corner

Election Results and 2019 Session Preview

10 A Workforce Winner

Order your 2019 KAM Blue Books today, or download the free app in the Apple Store or Google Play!

Getting to Know KAM’s Shelley Goodwin

13 KY Department of Agriculture

A Message from Commissioner Ryan F. Quarles

14 Education Matters

iLEAD Academy Students Take the Lead in Northern Kentucky

16 McGriff Insurance “Benefits Beat”

Few Treat Health Savings Accounts as Retirement Savings Vehicles, Yet Balances Rise

17 Harshaw Trane Energy Focus Managing Your Energy Use

18 Manufacturing Skills Standards Council

Apprenticeships: Change That Revolving Door to an Elevator to Prosperity!

22 2019 Manufacturer & Employee of the Year Awards Recap 24 The ICEman Cometh

How to Respond when ICE Knocks

26 Cyber Security

Assessment: The First Step

28 The “Ins and Outs” of Data Cabling 30 CBN Hones for Improved Surface Finishing of Machined Superalloys 34 Perfecting Diffusion Bonding

Protect people, property and inventories with these five steps.

36 Investing in Your Digital Footprint A High Level, Step-by-Step Guide

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

THE GOODS

New Members Dakkota Integrated Systems Hopkinsville Milling Company, Inc. Power Deck Company LLC Schroeder Publishing Co Inc. Sekisui Specialty Chemicals America, LLC Toolco, Inc. Two Rivers Fisheries, Inc. AHC Products, Inc. Bromora LLC Burdine-Anderson Greenwell Chisholm Printing PhRMA Prince Precision Machining Software Information Systems

Total Reward Solutions LLC WealthSouth Colonial Life - Jeff Harned Office Davis Printing, Inc. Energy Architects Goldstream Management Group, Inc. Infintech Leininger Cabinet & Woodworking, Inc. Paris Machining, LLC Phoenix Paper Wickliffe, LLC Quality Manufacturing Incorporated Robotics Radiant Networks Services Inc Sharps Candies Wright Elevator Solutions, Inc.

Renewing Members Arkema Inc. Artemis Electronics, LLC Ashland Alliance Bishop Cabinet Shop Inc. Blackstone Digital Blue Grass Metals, Inc. Bowling Green Area Chamber of Commerce Bristol Group, Inc. Campbell Tobacco Rehandling Co. Commonwealth Agri-Energy, LLC Cornerstone Sign & Decal CSX Transportation Darling Ingredients Inc. Dean Dorton Allen Ford, PLLC Denham-Blythe Company, Inc. Direct Energy Business Farmer’s Gate Inc. Fifth Third Bank Foundations Human Resources Consulting Four Colour Imports, LTD Frields Machine & Fabrication, LLC GHD Services Inc. Greater Louisville, Inc. Hands On Originals IB Moore Company, LLC IGear Online, LLC Indy Honeycomb International Crankshaft, Inc.

KY Community & Technical College System Kentucky Bioprocessing, Inc. Kentucky Farm Bureau Insurance Companies Kentucky Roll Company LLC LG&E-KU Manufacturing Skill Standards Council (MSSC) Northern Kentucky Chamber of Commerce Plehn’s Bakery RPS Barge Company Rut ‘N Strut Distillery, LLC Six Sigma, Inc. Smith Management Group Span Tech, Inc. Spindletop Draperies, Inc. Stoll Keenon Ogden PLLC Sullivan University System Summit Welding and Fabricating Superb IPC Test and Controls International Inc. Toyotetsu America, Inc. Vanderbilt Chemicals, LLC Voestalpine Roll Forming Corporation Wacker Chemical Corporation Wako Electronics USA Whip Mix Corporation Young Manufacturing Company, Inc. Zeon Chemicals LP

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS

Executive Shop Talk Happy Holidays from the Kentucky Association of Manufacturers! As the year winds down and I take a moment to reflect on 2018, I’m proud of what we accomplished. We wrapped up another series of LAND Forums. The series Linking Agriculture for Networking and Development co-developed with the Kentucky Department of Agriculture to explore the growing intersection between agriculture and manufacturing continues to grow, this year reaching over 400 people in 5 locations. The series has successfully made connections which are growing economic opportunities in our state. In celebration of Manufacturing Month in Kentucky the entire KAM team was on the road visiting 15 different Manufacturing Day events all across the commonwealth. We toured with kids and listened as people in industry told their story and why they chose manufacturing as their career. It was truly an impactful month for the students, the host manufacturers and KAM. Looking forward, KAM is excited to partner with the Kentucky Automotive Industry Association, the Kentucky Aerospace Industry Consortium and the World Trade Center Kentucky to co-host Manufacturing Day

at the Capitol on February 7th. The day will focus on networking with each other, telling our story to legislators, and wrap up with Governor Bevin delivering the State of the Commonwealth address. I have a lofty goal of 100 manufacturers and manufacturing related businesses joining us and making this a huge success! We’re also rebooting our Executive Series in 2019 as MFG411. The mission is to better understand the challenges manufacturers are facing and connect them to the right source for solutions. What you won’t hear is me talking at you. Instead, you’ll hear from sector experts and service providers on how those challenges are being overcome. And you’ll hear from them in your neighborhood as we plan to visit eight regions on our MFG411 road show. Follow us on KAM.us.com, @ KyManufacturing on Twitter and Facebook and Kentucky Association of Manufacturers on LinkedIn for further details on how to participate. As we finish out 2018 let me share some further great

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

news. KAM has added 58 new members this year, 43 of those since August. We are making it our top priority to be member focused and member driven. That seems to be resonating with our industry as the numbers clearly show. What a great year it’s been. The entire KAM team is really looking forward to next year with its new challenges and continued growth. We are committed to Advocate, Educate, and Innovate for our members and the manufacturing community. If you’re not engaged, we would love to hear from you. If you’re not a member, we would love to represent your manufacturing related business and if you know someone who is in manufacturing or a manufacturing related business that you think we could help, or could help us, we would appreciate an introduction. Respectfully,

Lee Lingo Executive Director, KAM

2019 CALENDAR OF EVENTS JANUARY S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

FEBRUARY S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

MARCH S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

APRIL S

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

MAY S

01 New Year’s Day (closed) 08 2019 Session convenes 17 Executive Committee 25 Mfg 411 Call-in Session

KAM Conversations Legislative Calls will occur Thursdays at 4:00 pm EST during session

07 Manufacturing Day at Capitol and Legislative Reception 08 KAM Board Meeting TBD Mfg 411 Regional Mtg KAM Conversations Legislative Calls will occur Thursdays at 4:00 pm EST during session

06-07 Elevate w/WTCKY 29 2019 Session adjourns TBD Mfg 411 Regional Mtg

KAM Conversations Legislative Calls will occur Thursdays at 4:00 pm EST during session

18 Executive Committee 19 Good Friday (half day) 24-26 State of Manufacturing Conference (tentative) TBD Mfg 411 Regional Mtg

16 KAM Board Meeting 27 Memorial Day (closed)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Thursday, February 7, 2019 8:30 am – 6:30 pm

Join KAM’s Government Affairs Team and manufacturing across Kentucky TBD from Mfg 411 Call-in Session JUNE representatives TBD KDA-KAM LAND Forum for S aMspecial T W day Th atF theS Capitol. We will speak with 1 House and Senate in the leadership from both the 2 3 4 5 6 7 morning, hear from top8 officials over lunch and 9 10 11 12 13 14 15 attend General Assembly in the afternoon. The day 16 17 18 19 20 21 22 will24 wrap the28Lancaster with a reception for 23 25 up 26at27 29 legislators and colleagues before Governor Bevin 30 delivers his State of the Commonwealth address. Visit KAM.us.com for more details.

JULY S

THE GOODS 04 Independence Day (closed) 18 Executive Committee TBD KDA-KAM LAND Forum TBD Mfg 411 Regional Mtg

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 EXECUTIVE COMMITTEE 28 29 30 31 Jackie Hogan, Chair

4 11 18 25

Toyotetsu America, Inc., Somerset Chris Driver, Vice Chair Harshaw Trane, Lexington 15 KAM Board Meeting AUGUST Randy Norwood, Sr. Vice Chair TBD KDA-KAM LAND Forum M T W Th F S Regal Beloit America, TBD MfgInc., 411 Morehead Regional Mtg 1 2 Irvin, 3 Douglas Secretary/Treasurer 5 6 7 Darling 8 9 10 Ingredients, Cold Spring 12 13 14 15 16Richard 17 N. Whitaker 19 20 21 Electric 22 23 24 Sumitomo Wiring Systems Inc., Bowling Green 26 27 28 29 30 31 Lee Lingo, Executive Director Kentucky Association of Manufacturers, Frankfort DIRECTORS 02 Labor Day (closed)

SEPTEMBER

Bluegrass TBD KDA-KAM LAND Forum Rusty S Ashcraft, M T Manager, W Th FGov’tS Affairs & Environmental Policy, Alliance Coal, LLC Mfg 411 Regional Mtg Joe Blackburn, Plant Manager, TBD Schneider Electric USA, Inc., Lexington 1 2Chris3 Driver, 4 Filtration 5 6 Program 7 Leader, Harshaw Trane, Lexington John-Mark B. Hack, VP for Development, Bristol Group, Inc., Lexington 8 9 10 11 12 13Business 14 Lee Lingo, Executive Director, Kentucky Association of Manufacturers, Frankfort 15 16 17 18 19 20 21 Rejeana Thompson, Aichi Forge USA, Inc., Georgetown 22 Ed 23 Webb, 24 25 26 27& CEO, 28 World Trade Center Kentucky, Lexington President

29 30

South Central Jackie Hogan, General Manager, Toyotetsu America, Inc. Somerset Carroll Knicely, Jr., General Manager, CHUHATSU North America, Inc., Glasgow Richard Whitaker, Vice President, Sumitomo Electric Wiring Systems, Bowling Green Eastern Byron Craig, Business Development Manager, Boneal, Means Jason Macak, Engineering Manager, Marathon Petroleum MONTH Company, Catlettsburg MANUFACTURING OCTOBER Randy Norwood, Plant Manager, Beloit America, Inc., Morehead 04Regal Manufacturing Day S M T W Th F S 17 Executive Committee Louisville 1 2George 3 D. 4 Adams, 5 Partner, Fisher & Phillips LLP 25 Manufacturer & Employee Corporation 6 7 Leanne 8 9 Cunningham, 10 11 12 VP, GM,ofBrown-Forman the Year Awards David Hall, Resident VP Public Affairs, CSX Transportation 13 14 15 16 Earl 17 F. 18 19Senior Counsel, GE Appliances Jones, Counsel, 20 Greg 21 Kosse, 22 23General 24 25 26 Kentucky Farm Bureau Mutual Insurance Ann Kelly Lopez, Plant Manager, The Chemours Company 27 28 29 30 31 Moriah Ogilvie, Director, KY Large Group & Assn Retention, Anthem Blue Cross-Blue Shield Christopher Perry, President & CEO, Kentucky Association of Electric Cooperatives John Rainey, Regional Director, Government Affairs, Altria Corporate Services Fred Thome, Plant Manager, Ford Motor Company 11Business Veterans Day (closed) Paul W. Weis, Manager, Services, LG&E-KU NOVEMBER S

21 KAM Board Meeting

28-29 Thanksgiving Holiday Northern 1 2 Douglas Irvin, VP of Environmental Affairs, Darling Ingredients, Inc., Cold Spring (closed)

3 4 5 6 7 8 9 Western J. Baker, Campbell Tobacco, Mayfield 10 11 12Robert 13 14 15 President, 16 Robert R. Cook, Sales Representative, Atmos Energy Corporation, Owensboro 17 18 19 20 21 22 23 Thomas Koehler, Site Manager, Wacker Chemical Corporation, Calvert City C. Douglas VP of28 Compliance, 24 25 Wolf, 26 27 29 30 McCoy & McCoy Laboratories, Inc., Madisonville

KAM TEAM MEMBERS

Lee Lingo, Executive Director Holiday 24-25 Christmas DECEMBER Shelley Goodwin, Director of Operations (closed) S M TMattWEllis, ThDirector, F S Web Development & Creative Design 31 New Year’s Eve (closed) Sherry Harrod, Executive Assistant 1 2 3 4 5 6 7 Rachel Bayens, Legislative Agent 8 9 10 11 12 13 14 Carl W. Breeding, General Counsel 15 Lloyd 16 “Rusty” 17 18 Cress, 19 20 21 Director, KAM Chemical Industry Council Executive 22 23 24 25 26 Prentice 27 28Harvey, Legislative Agent Mike Helton, Advocacy Team Leader 29 30 31 Bert May, Legislative Agent Dustin Miller, Legislative Agent Kelly Shasky, Legislative Agent Mike Shea, Legislative Agent

Updated 01/03/2019

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

We are proud to present the 2018 Manufacturer of the Year Awards and raise a toast to this yearâ&#x20AC;&#x2122;s honorees. Cheers!

PLEASE DRINK RESPONSIBLY.

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

BROWN-FORMAN.COM

KAM BOARD | GOODS

THE GOODS

Advocacy Corner It has been a busy and very successful year for the KAM Advocacy Team starting out with the 2018 legislative session and continuing through a productive Interim session. The Interim included a special task force on tax reform, midterm legislative elections and preparation for the 2019 legislative session that kicks off in January.

2018 LEGISLATIVE SESSION WRAP UP The 2018 legislative session was the 60 day budget session that ended in April. KAM had some notable accomplishments during the session especially when considering some of the controversial issues that were discussed like tax reform and pension reform. Tax reform has been discussed in Frankfort for several years and this past session was expected to generate more discussion and possible reforms. HB 487 became this yearâ&#x20AC;&#x2122;s tax reform bill and as some leaders describe, tax reform 1.0. The bill became a scaled down version of tax reform that included a decrease in the corporate and individual tax rate from 6% to 5%, application of the sales tax to some select services like landscaping, dues to private clubs, and veterinary services. As originally introduced the

proposal would have applied the sales tax to repair, maintenance and installation of tangible personal property and there was no clear exemption for business to business transactions. In addition, the original proposal would have repealed some economic development incentive packages like the Revitalization Act that Toyota, GE and Ford rely on. KAM was successful in gaining an exemption for the repair, maintenance and installation of property and retaining many of the economic development incentives. A workers compensation reform bill passed this session that KAM representatives had worked with a coalition over the 2018 interim to develop. An essential skills bill passed along with a critical infrastructure bill for chemical and power plants. And finally an update of the Brownfields Act that KAM had developed some years ago.

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

MIDTERM ELECTIONS/ LEADERSHIP ELECTIONS The November legislative elections in Kentucky included all 100 House members and 19 of the 38 Senators. Nearly all House members had opposition and some changes were anticipated; however, not as much as we got with 34 new members. With all of the changes in the House the political makeup did not change all that much. The Republican majority dropped a net two seats to 61-39, but maintain their super majority with 60 plus votes. Eight House incumbents were defeated, 6 GOP and 2 Democrats and there were 24 open seats contested with 14 GOP and 10 democrats winning seats. This means there will be 32 new members of the House which is a substantial number. When you take into account the 2016 election cycle more than half of the entire House will be new or with only two years of experience. That can

THE GOODS present many challenges, but also opportunities for advocacy groups like KAM. Much of our early focus this session will be on educating new members to issues of concern to manufacturing. Very few changes in the Senate as the Republicans increased their control and super majority gaining one seat over the previous cycle after successfully defending 16 incumbents. Leadership elections for both the House and Senate majorities have been held and will be confirmed once the General Assembly convenes in January. In the House Rep. Osborne is the Speaker Elect, Rep. David Meade is the Speaker Pro Tem Elect, Rep. Bam Carney Majority Floor Leader, Rep. Suzanne Miles Majority Caucus Chair, and, Rep. Chad McCoy Majority Whip. The Senate has re-elected President Robert Stivers as President, Senator Damon Thayer Majority Leader, and Senator Mike Wilson Majority Whip. Senator David Givens was elected to President Pro Tem for a second time and Senator Julie Raque Adams was named Majority Caucus Chair. 2019 LEGISLATIVE SESSION Now I want to turn to what we anticipate for the 2019 legislative session. This is the short session that will convene January 8th for a four day organizational session, then recess until February 5thand meet regularly until March 7th when they recess again for 10 days to consider any

vetoes of the Governor. A key difference between the rules in the short session vs the long budget session is a 60 vote rule that requires a super majority vote on any bill changing an appropriation or raising revenue. This could be a hinderence to further tax reform.

also anticipate involvement in “transition readiness” for high school graduates.

As stated earlier, this session will welcome nearly a third of new members which will be busy getting up to speed on all issues including manufacturing related issues. Both the House and Senate will continue with comfortable Republican majorities. Leadership will include a new speaker and majority leader in the House. The Senate President and Majority leader remain the same. Both Chambers have some new members to leadership roles. For our purposes and the committee chairs we deal the most with will remain the same.

Some tax reform measures were considered and passed in 2018 like a reduction in corporate and individual income tax and applying the sales tax to some services. Tax Reform 2.0 as it is referred may get some play, but more likely as a cleanup to what was done last session. Significant reform will probably be delayed.

Some of the issues we are anticipating will be considered are tax reform, education and workforce development, unemployment insurance reform, and transportation infrastructure reform. Some of these will develop higher priorities than others and with tax and transportation infrastructure reforms super majorities would be needed to pass and will no doubt impact the level of consideration. Education and workforce development topics will involve issues discussed in the 2018 session like work ready scholarships and expanding the use of KEES scholarship funds. KAM will be involved in discussions on both. We

An unemployment insurance reform bill was passed this past session but was watered down substantially in the final days. There will be an additional bill this session.

Transportation Infrastructure funding will likely be considered, but passage remains uncertain given the 60 vote rule on funding bill. This year’s bill will include the provisions of HB 609 from last session which included a 10 cent gas tax increase and several license and registration fee increases. We also anticipate some additional measures to come closer to meeting the $500M annual new revenue the Secretary of Transportation has indicated is needed to maintain our infrastructure. We will have weekly bill tracking available on the KAM website as well as the highlights of committee meetings and floor actions. We will also be holding our regular weekly legislative call while they are in session on Thursday afternoons at 4:00 pm.

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS

Meet Shelley Goodwin

A Workforce Winner By Kelly Shasky

Just as Kentucky is known as the home of champion thoroughbreds, Shelley is known as a winner in the fields of workforce development and organizational management.

KAM is ready to break out of the gate and take the lead with a new Director of Operations, Shelley Goodwin.

jobs and helping employers find skilled workers, what is your favorite success story to share?

Just as Kentucky is known as the home of champion thoroughbreds, Shelley is known as a winner in the fields of workforce development and organizational management.

A: I canâ&#x20AC;&#x2122;t say that I can pick one over any other because they are all unique. I love the process and I love watching others discover either what they love to do or what they are good at and then helping make that come to fruition. And not just fruition in terms of getting people employed or working with young people who then find their calling. But even when I was at the Chamber, working with people who either would start a business or grow a business and watching that then grow and succeed gave me a lot of satisfaction knowing that I might have played a part in helping them get there.

Prior to joining KAM, Shelley was Workforce Development Coordinator for Shelby County Associated Industries and served over 14 years as Executive Director of the Shelby County Chamber of Commerce. I asked Shelley about her past work experiences, her passion for workforce development, and her vision for KAM. Her responses, which follow, reflect her innovative mindset and her recognition that she has joined an organization with a history of accomplishment and a future full of opportunities. Q: Having spent so much of your career helping people find

Q: KAM is over 100 years old and it is a well-established association. How do you help transform it to be more nimble and agile like our manufacturers are in this new world of changing economies and technologies? How do you

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

utilize the skill sets you have developed through the years and help KAM move forward? A: I think it is an adaptation and a change. Obviously, we need that strong, traditional solid foundation. That is what has kept us as an organization and kept us strong for all the years. But, as with any organization, or with anything really, we have to change with the times. And that is changing mindsets, which right now is very favorable for manufacturing, changing attitudes, changing technologies. We have to find the right fit of all those so that we can be successful for another 100 years. That means changing programming and services to meet todayâ&#x20AC;&#x2122;s needs while continuing to do those foundational things that the organization has always done. Advocacy is obviously one of those foundations, by being the voice for the manufacturers and their suppliers and vendors. It is critical that we maintain that, but that we do it in a way that is cutting edge and bring that information

THE GOODS back to our members and engage them in a new way. Q: How are you working to expand KAM’s base, and what is your message for prospective members? A: By looking at not just the manufacturers, but also who their suppliers and vendors are. I think that is a bit of a new direction we are reaching out to so that we can be that resource for our manufacturers to be able to connect them with anything and everything they need to be successful. Reaching out to new and growing manufacturers who may not be as established and may need a hand up to become the next big company if that is where they want to go. And in trying to do it in a different way. I am very much a relationship-based person, so rather than just providing a “thing” or service or opportunity and moving on, I want to help us develop as an organization long term relationships with our members to be able to understand and anticipate their needs and be able to provide solutions to their problems. Q: I read in your resume that you are scheduled to graduate from the Institute for Organizational Management in 2020. Can you tell me about the program and how you see that professional development component helping you at KAM? A: I actually started 3 years ago at the urging of the Kentucky Chamber executives when I was involved with them. It is considered to be the Master’s Degree program of the Chamber world. Even though I had been in that

world for 13 years at that point and I wanted to complete the course work and get that certification. Surprisingly, my first year there when I went I realized that not only did I know all the instructors already, several people thought that I was actually there as an instructor, not a first year student. So, I had known most of them at some point in my life prior to starting the program. It is a good training ground for anyone new to organizational management, not just with Chambers, but with any organization. They cover a broad range of topics and it is also a great place for networking with other professionals and developing those connections nationwide. I entered and did a year, then I left the Chamber and went into workforce development. Last year, I did year two, so I have two years before I can finish up. I look forward to continuing that and it has been very interesting for me going through the Institute in different roles, because you can see it from different perspectives. The Institute from a Chamber perspective was very different from a workforce development position and it will be different again as I go back dedicated to manufacturing. Q: Would you walk me through some of your personal background? A: I was born in Louisville, Kentucky, but grew up in Shelby County and the majority of my family is still there. I went to school there, and when I graduated from high school I really wanted to go into the performing arts and my father nixed that immediately by saying: “I am not paying for

you to go to college to be a bum on the streets of New York.” I remember that very vividly. This actually feeds into my workforce development interest and my desire to help people find their niche. I ended up going for a major in social work and did that for a year and a half and I realized it was not for me. I came back to Shelby County and Lindsey Wilson College was offering a degree in Business Management and that is where I landed, out of convenience more than anything, because I did not know what I wanted to do. That has, I think, fueled a lot of my interest in working with students and young people and helping them, because I really wish I had someone to sit down with me and take a look at my interests and skills and guide me with a broader picture of the opportunities and possibilities. Young people can have a very narrow view of those things, so I truly enjoy being able to do that with them and then helping them find what makes them happy and what the pathway is to the future for them. Q. And some more detail about your professional career? A. I have done a little of everything. I worked in banking because it was convenient and available. I like numbers and details. I did hotel management for my grandparents. I did general management for them and that was my first step into anything public, because I later served as the Chair of the Tourism Commission and then was involved with our city and county governments. I worked in education for the college when I was going to

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS school there, and while it also started as a convenience, it ended up being something that I was really interested in. I did marketing and design, and from there went back to the school system for my first real workforce development position. My Chamber work was an expansion of that.

most passionate about. Manufacturing Month was a lot of fun because I got to see things and types of plants that I had not seen before. I got to see glass being made and that was so cool.

Q: Talk to me about manufacturing. A: I love manufacturing. I am such a nerd and I get so excited about it. I love to see how things are made and the processes. Industry tours are completely fascinating to me from the beginning to the end. So this role really is a culmination of everything I have done over the past 30 plus years coming together to let me do what I am

A: Love to travel. I want to go back to the Caribbean. We went there on our honeymoon and sailed. It was amazing. We visited Costa Rica this summer and it was also amazing. I love to cook, although I don’t get to much. I really love baking, but I need to get someone to clean up after me. I used to act and sing. I was in high school orchestra, not choir. In college it was vice versa. As an adult, I have actually sung

Q: In your free time, what do you like to do? Hobbies?

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competitively, both as part of a women’s barbershop chorus and quartet. Interestingly enough, my son actually does both now. Q: You mentioned your son. Tell me more about your family. A: I have been married to Danny for almost 30 years. He recently retired as the City of Shelbyville’s Chief of Police. Connor is a junior at the University of Cincinnati and is majoring in Criminal Justice. Rachel is a freshman at the University of Louisville and is majoring in American Sign Language and Psychology. She wants to be a behavioral specialist.

THE GOODS

Kentucky Department of Agriculture By Commissioner Ryan Quarles

Agriculture and manufacturing are two of Kentucky’s largest industries, and as such, they should work together.

During the holiday season, one begins to look back and think about all that we should be thankful for. As your Commissioner of Agriculture, I am blessed to represent a state with a rich agricultural heritage and a strong network of farmers, processors, manufacturers, distributors, educators, and others working together to get those products from the farm gate to your dinner plate. The Kentucky Department of Agriculture (KDA) is constantly working with family farmers and small food businesses to make sure you have access to the freshest agricultural products. That includes businesses and individuals who use farm products as inputs in the manufacturing process. At the end of the day, you all know how important relationships are to success in business. That’s why, over the course of the last year, KDA has focused on developing signature partnerships to

benefit the businesses that manufacture and sell Kentucky products. Take for instance, the very successful partnership of KDA and the Kentucky Association of Manufacturers (KAM) for the Linking Agriculture for Networking and Development (LAND) forums. Agriculture and manufacturing are two of Kentucky’s largest industries, and as such, they should work together. Our second year of LAND conferences, graciously funded by the Kentucky Agricultural Development Fund and regional sponsors, provided a great starting point for farmers and manufacturers to find out how they can work together. I can’t wait to see what partnerships will emerge!

producers, processors, retailers, nonprofits, educators, and food service systems met to share ideas and business opportunities. Events like these build relationships, which result in more Kentucky agricultural products in the supply chain, a benefit to everyone in our economy. Wendell Berry once said that “eating is an agricultural act.” During the holidays, when so many Kentuckians are enjoying meals using locallysourced foods and ingredients – or, as Wendell might say, participating in agricultural acts – let me be the first to thank you for being part of our agricultural economy.

Additionally, KDA, the Kentucky Vegetable Growers Association, and the Kentucky Horticulture Council hosted the second annual Kentucky Proud Produce Grower-Buyer Meet-Up at Kentucky State University in Frankfort. More than 100

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS

#RethinkSchool: iLEAD Academy Students Take the Lead in Northern Kentucky By Joe Barison, US Dept. of Education The iLEAD Academy is prepared for its first graduation in May 2019, when 26 of the school’s 29 students are scheduled to leave with a diploma and an associate’s degree.

“Strangely, I’ve started a school, and I am not an educator,” said Alicia Sells, founder of iLEAD Academy, a STEM high school in northern Kentucky. Sells’ background is in public policy. She noticed that neighboring Kentucky school districts of Gallatin, Carroll, Henry, Owen and Trimble did not offer a dedicated STEM program and, as a result, many students’ needs were not met in their preparation for the workplace. iLEAD Academy is in session as students receive instruction, have discussions, and create in the maker spaces. (Photo credit: Alicia Sells) Robert Stafford, superintendent of Owen County Schools, is the only current superintendent among the five districts who was present at the creation of iLEAD Academy. “When we initially got together – the five districts – we wanted to offer a really robust STEM program in engineering. It was driven by Alicia [Sells] pulling us all together to create the iLEAD Academy,” Stafford said.

Sells and the district superintendents worked with the Kentucky General Assembly and the Kentucky Department of Education to obtain the program flexibility to start a new school. They asked students what the students would change about their highschool experience; the answer was more-practical, hands-on experiences. In response, Sells and the districts discarded the traditional model of high school and started the iLEAD Academy as a stand-alone school and not as part of any one district. “We have a board that is constituted of the five rural district superintendents,” Sells explained. “And each district contributes $95,000 a year to the operation of the school.” “The iLEAD Academy is in a strip mall. It looks a lot like a Starbucks. There are no desks, no books, no bells. It has a common area where students take classes and have classroom instruction with teachers,” Sells said. “And there is a very large maker space to fabricate projects, giving students hands-on, realworld experience.”

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4 students sit on the classroom floor and work to place blue fabric on several pieces of wood Students at iLEAD Academy, a STEM high school in Carrollton, Ky., fabricate a boat that they designed. (Photo credit: Alicia Sells) Larisa McKinney is director of iLEAD Academy. She has 10 years of teaching experience and holds a master’s degree. “First and foremost, we’re a career academy. We focus on students being career-ready and also the opportunity to graduate high school with an associate’s degree,” McKinney said. “We could also say that we have been building the plane as we fly it, trying to keep our focus as a career academy. Most importantly, we make decisions based on the individual student, not based on what the system tells us to do.” But it was not all smooth sailing. Sells told of early resistance to iLEAD from elected officials who said that the academy would prepare students to leave Kentucky

THE GOODS for high-tech jobs on the West Coast. “We overcame that concern by engaging students with their home communities,” Sells said. “That’s a key part of their grade [in class] to give ongoing service to the home community.” The iLEAD Academy is prepared for its first graduation in May 2019, when 26 of the school’s 29 students are scheduled to leave with a diploma and an associate’s degree. For many, Sells explained, graduating with an associate’s degree will be a poverty cycle-breaking experience. Superintendent Stafford emphasized that iLEAD offers students an opportunity that could not be provided by an individual, small school district. “And I think for the students it’s an opportunity to learn from others outside of the county system, to aspire to work at a high level, and to achieve.” This is a story from our #RethinkSchool series. The series features innovative schools and stories from students, parents and educators highlighting efforts across the United States to rethink school. Check back on Thursdays for new posts in the series. The #RethinkSchool series presents examples of approaches schools, educators, families and others are using to rethink school in their individual and unique circumstances. Blog articles provide insights on the activities of schools, programs, grantees and other education stakeholders to promote continuing discussion of educational innovation and reform. The Department of Education does not endorse any educational product, service, curriculum or pedagogy.

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

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Few Treat Health Savings Accounts as Retirement Savings Vehicles, Yet Balances Rise Employee Benefit Research Institute

A new study conducted by EBRI, a private, nonpartisan, nonprofit research group, finds that while more Americans are using Health Savings Accounts (HSAs) to save and pay for medical expenses, few are investing the funds, maxing out contributions, or otherwise using it as a retirement savings tool. The research, “Health Savings Account Balances, Contributions, Distributions, and Other Vital Statistics, 2017: Statistics from the EBRI HSA Database,” is the fifth annual report examining account balances, individual and employer contributions, distributions, invested assets, and account-owner demographics. It is informed by cross-sectional data from nearly six million HSAs with $13 billion in assets from the EBRI HSA Database. MORE HSAS, BIGGER BALANCES Since being created in 2004, HSAs have become a significant and growing part of employmentbased health benefit programs. Enrollment in high-deductible, HAS eligible health plans was estimated to be between 21.4 and 33.7 million policyholders and their dependents and covered nearly 3 in 10 employees in 2017. More than three-quarters of HSAs, 77 percent, were created since 2014. HSA balances have been growing even as HSA owners use accounts to fund medical expenses. Seventy-seven percent of HSAs with a 2017 contribution also had a same-year distribution. Of the HSAs with distributions, the average amount distributed was $1,724, less than the average contribution, resulting in balance

increases. Two-thirds of account holders ended 2017 with positive net contributions. Nearly all (95 percent) of HSAs with individual or employer contributions in 2017 ended the year with funds to roll over for future expenses. By the end of 2017, the average HSA balance among account holders with individual or employer contributions in 2017 was $2,764, up from $1,873 at the beginning of the year. DESPITE HSA POPULARITY, OWNERS NOT MAXIMIZING CONTRIBUTIONS OR INVESTMENTS Half of HSA owners contributed to their account in 2017, and 36 percent of HSAs did not receive any contributions (individual or employer) in 2017. Among accounts with contributions, individual contributions in 2017 averaged $1,949 and employer contributions averaged $895. Only 13 percent of account holders contributed the fully allowable annual amount. Investment potential was even less realized. A mere four percent of HSA owners had invested assets beyond cash. Those who did invest had much higher account balances than non-investors. But the investors did not use the account solely as a long-term savings vehicle. Both investors and non-investors used the HSA to self-fund current medical expenses. In fact, investors were more likely than non-investors to take a distribution (69 percent and 31 percent, respectively). When

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

distributions were taken, investors took larger distributions ($2,293) than non-investors ($1,696) during 2017. “The rise of HSAs is an encouraging sign for future financial wellness for individuals who have and contribute to HSAs,” said Paul Fronstin, Ph.D., Director of the Health Research and Education Program at EBRI and author of the study. “Over time, balances increase, contributions increase, and the percentage of accounts investing rises. However, plan sponsors and administrators will need to support and educate account holders about tactics for self-funding uninsured medical expenses, including the benefits of moving beyond cash when investing HSA assets and explaining how contributing closer to the maximum allowed by law will increase the likelihood of being able to cover uninsured medical expenses in the future. With health care costs comprising such a large percentage of retirement expenses, the HSA should be viewed as an important retirement savings vehicle.” About EBRI: The Employee Benefit Research Institute is a private, nonpartisan, nonprofit research institute based in Washington, DC, that focuses on health, savings, retirement, and financial security issues. EBRI does not lobby and does not take policy positions. The work of EBRI is made possible by funding from its members and sponsors, who include a broad range of public, private, for-profit and nonprofit organizations. For more information go to www.ebri.org.

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Managing your energy use Harshaw Trane While energy efficiency can often be a daunting task for an industrial, it’s no secret that energy is a strategic business enabler. It has hidden potential to strengthen a business’s bottom line with the bonus of increasing the sustainable energy profile.

Companies know that sustainability can boost their brand’s social image, and they’re investing in it. People recognize and approve of companies working to lower their carbon footprint, increase energy efficiency, and become more “green.” Sustainable investing and green-minded purchasing trends are becoming more and more prevalent, and sustainable companies can reap the benefits. Sustainability and energy efficiency also have a more direct effect on the bottom line. Using less energy is one way to save, but it’s equally important to think and act more strategically about energy supply and demand response. While energy efficiency may not always be a top priority for some industrials, knowing what’s going on with utilities in your facility should be. Our next few articles will help you with that – we’ll be walking you through your utility bills to show you how you can impact your energy costs. Today, the world of energy is going through a transformation, creating new opportunities and challenges for both building owners and utility providers across the country, redefining how energy supply and demand are managed. This requires a comprehensive

approach that not only examines the way you use energy, but also how you procure it. How does energy management work? Energy savings are achieved through careful analysis of numerous factors. A complete energy supply strategy is formulated by considering supply, demand and sustainable solutions that will help you achieve your energy goals. Together, these services enhance supply procurement by ensuring optimal pricing and terms from energy suppliers. A strategic energy plan incorporates proprietary data and forecasts, risk tolerance assessments, and purchasing strategies. This can reduce your price risk and exposure to market volatility. Then analyses of buildings and energy systems can turn data into dollars. In addition, these services help manage risks to your budget — being surprised by a utility price surge can throw your operating budget into turmoil. Through better planning, you can avoid being caught off guard. Energy procurement specialists have the experience and insight to help project energy costs and build an informed energy budget. Energy services programs can generate cash flow to enable

investments in additional energy saving measures, including enterprise-wide electric vehicle deployment, solar PV with energy storage, and other innovative solutions. As an energy company, Trane® provides strategic energy procurement and energy management that can help you realize savings, lower price risk and exposure to market volatility, and achieve business results. Let’s find the energy procurement approach that works for you. About Harshaw Trane: Harshaw Trane (www.harshawtrane.com) creates and sustains high performing, efficient and secure facility environments. An intelligent building technology and energy services provider, the company employs 300highlytrained associates, including Certified Energy Managers and LEED® Accredited Professionals, is an ENERGY STAR Product and Services Provider, and is a founding member of the Kentucky Chapter of the U.S. Green Building Council. Harshaw Trane is headquartered in Louisville and has offices in Lexington and Bowling Green, Kentucky, and Evansville, Indiana.

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

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Apprenticeships: Change that revolving door to the elevator to prosperity! Manufacturing Skills Standards Council Build your talent pipeline with CPT and TRACK Pre-Apprenticeship Programs

Americans are feeling more prosperous, the economy is fueled with consumer spending and the United States is experiencing historically low unemployment rates. All is great, right? While our country is experiencing an economic rebound after years of stagnation, employers still confront the challenges of hiring a skilled workforce and retaining those people. “It’s a revolving door – people get hired, but they don’t stay for long” remains an all too common experience for manufacturers. Hiring and retaining a skilled workforce is THE key issue for employers across the Commonwealth and our nation. The business community, education/training and economic development groups are working together to clearly articulate their needs in an effort to close skill gaps and build the pipeline for their workforce. The U.S. Chamber of Commerce Talent Pipeline Management (TPM) program focuses on developing the capacity of business organizations seeking to organize employer members and orchestrate talent supply chains. The Kentucky

Chamber of Commerce is part of this national program and has identified professionals in several areas around the state to work toward a plan by 2020. In encouraging news, last year the Trump Administration announced plans to reinvigorate apprenticeship programs to build the talent pipeline in all business sectors. While European countries use apprenticeship programs as their main pipeline for talent, the U.S. has been slow to adopt this strategy. But as the pool of available and skilled workers becomes smaller, communities will need to look for multiple sustainable ways to build and grow the talent pipeline. Enter apprenticeships. What is an apprenticeship? Apprenticeship is the proven approach for preparing workers for jobs while meeting the needs of a business needing a highly-skilled workforce. It is an employer-driven, “learn-whileyou-earn” model that combines on-the-job training that is tied to the attainment of national skills standards. (Source, U.S. Department of Labor.) The five key components to apprenticeship are:

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• Business involvement • Structured on-the-jobtraining • Related instruction • Rewards for skill gains • Nationally-recognized credentials There are two types of apprenticeship models: apprenticeship for incumbent workers and new hires and preapprenticeship for secondary (high-school) students. The best thing about an apprenticeship program is that it is a completely customizable approach to training the current and future workforce. The U.S. Department of Labor has a national registry of registered apprenticeships that companies can use or model for their own training programs. There are great benefits to registering an apprenticeship with the U. S. Department of Labor, including: • Technical Assistance and Support: The program joins the Apprenticeship system, which provides access to a nationwide network of expertise, customer service, and support at no charge for program sponsors. • National Credential: Graduates of Apprenticeship programs

THE GOODS receive a national, industryrecognized credential. • Quality Standards: Registration means the program has met national and independent standards for quality and rigor. Registration tells prospective employees, customers and suppliers that the business invests in its workforce and believes employees are its most important asset. • Tax Credits: In many states, businesses can qualify for state-based tax credits related to apprenticeship programs. In addition, employers may be able to claim some expenses for training as a federal tax credit. • Federal Resources: Businesses and apprentices can access funding and other resources from many federal programs to help support their Apprenticeship programs. Other benefits abound. Most notably, employers report a 91% retention rate of apprentices who remain on the job nine months later after their program has ended (Source: U.S Department of Labor). For employees, they are working and learning, have an average starting salary of $15/hour with wage increases as they obtain skills, and earn a nationallyrecognized credential at the end. The average wage for a fully-proficient worker who completes an apprenticeship is $50,000 annually. Apprentices who complete their program earn approximately $300,000 more during their career than non-apprenticeship workers. (Source: U.S. Department of Labor.)

In addition to high wages, the credential piece is important as more and more employers look for nationallyrecognized industry credentials for their workforce. The Manufacturing Skill Standards Council’s Certified Production Technician (CPT) program stands out and is part of the U.S. Department of Labor’s registered apprenticeship and pre-apprenticeship programs. Accredited under ISO Standard 17024 (Personnel Certification) the CPT program maintains annual quality and content audits to remain up-to-date with manufacturing work. The CPT is embedded in over 60 apprenticeship programs registered with DoL and has been recognized as a “quality pre-apprenticeship” because of its cross-functionality. • In November 2014, US Department of Labor Office of Apprenticeship (DOL/OA) officially registered the Industrial Manufacturing Technician (IMT) occupation, which embeds CPT certification in its Related Training. It is used by companies as the foundation for a traditional 3,000-hour U.S. DoL Registered Apprenticeship (RA). It is available only to full-time incumbent workers. • In January 2018, DOL Office of Apprenticeship approved a MSSC CPT Pre-apprenticeship as a “Quality Pre-apprenticeship program available nationwide. It is available only to enrolled high school students. Pre-apprenticeship programs are key to building the talent

pipeline for manufacturers because they reach those students who are enrolled in career pathways where the apprenticeship model can be utilized. Because CPT is foundational to all sectors of manufacturing, it is the perfect fit for the TRACK program (Tech Ready Apprentices for Careers in Kentucky). Currently, four Kentucky high schools have implemented CPT training for students in several manufacturing-related career pathways. Those students, and the companies that sponsor those programs, are prime for setting up a TRACK program that will lead to jobs and future employees. So how do you set up a MSSC CPT Pre-apprenticeship program? Pre-apprenticeships are designed to prepare individuals for traditional 3,000-4000 hour Registered Apprenticeships. The MSSC Pre-Apprenticeship CPT program includes a total of 720 hours and takes place over two years while the candidate is enrolled in high school. It consists of 160 hours of Related Training, which is based entirely on the full CPT program which includes hands-on training activities with the related Skill Boss CPT+ machine, and it secures the related MSSC CPT credentials in Safety, Quality Practices & Measurement, Manufacturing Process & Production and Maintenance Awareness. This Related Training can take place throughout the students’ sophomore, junior and senior years, combined with On-theJob learning (OJL) of 560 hours in a manufacturing plant. The in-plant OJL will require

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS 280 hours (8 weeks) in the summer of their junior year and 280 hours (8 weeks) in the summer of their senior year for which the student will receive wages from the company sponsor. The four Kentucky high schools currently offering the CPT, which are part of the Academies of Louisville, currently engage employers to sponsor their manufacturing programs by providing mentors, facility tours and classroom visits to the students. Employing these students during the summer for their OJL is an excellent path for both the company and the student, leading to secured employment and full apprenticeship after graduation. While the MSSC Preapprenticeship provides a solid foundation for any traditional, longer-term Registered Apprenticeship

for front-line manufacturing production work, it is an ideal prep for IMT. Any MSSC credentials secured in the pre-apprenticeship can be credited towards the IMT RT requirements, which means that the employer does not have to pay twice. Also, the employer does not have to repeat the basic tasks in the IMT OJL already covered in the MSSC Pre-apprenticeship, a significant savings in time and cost. The opportunity is now for both employers and future workers who engage in pre-apprenticeship and apprenticeship programs: tax credits, secured employment, and high wages for workers. Move forward today by contacting the refences listed below this article so your company can build an apprenticeship program that will grow your workforce and

your productivity. For additional information on apprenticeships, visit the U.S. Department of Labor FAQs. For additional information on TRACK, visit KY OCTE. For more information on the Certified Production Technician (CPT) program, contact LeeSa Page, Senior Advisor to MSSC at lpage@msscusa.org or 502-612-8450. The non-profit, industry-led Manufacturing Skill Standards Council (MSSC) is the national leader in training and certifying individuals with the core technical competencies needed to begin careers in advanced manufacturing. Applicable to all sectors of manufacturing and part of the NAM stackable credentials framework, the MSSC CPT is the technical foundation for building the manufacturing pipeline since its focus is on the entire population of entry-level workers for all production jobs.

My goal is to make Kentucky the hub of engineering and manufacturing excellence in America

-Governor Matt Bevin

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The Kentucky Association of Manufacturers (KAM) announced the winners of its 18th annual Manufacturer & Employee of the Year Awards at their Awards Luncheon this afternoon at The Olmsted in Louisville. Huff Technologies, from Morganfield, KY, won the Small Business Category award; Wacker Chemical Corporation, from Calvert City, KY, won the Mid-Size Business Category award; Toyota Motor Manufacturing Kentucky, in Georgetown, KY won the Large Business Category award. Each manufacturer was selected based on the following criteria: • Innovative and entrepreneurial leadership with regard to products, production method, or services; • Recognized leadership in making a key contribution to the quality of life in the Commonwealth and the community; and

• Active involvement in organizations that advance industry and manufacturing. Kevin Diamond, Plant Engineer with Wacker Chemical Corporation, Calvert City, KY, was selected as the 2018 Employee of the Year award winner. Nominees were judged on four criteria: • • • •

Innovation; Teamwork; Community Service; and Leadership.

The independent 2018 Awards Selection Committee consisted of: • Richard Cleary (Committee Chair), Member – Frost Brown Todd LLC, Louisville • Dr. Larry Ferguson, President, Ashland Community and Technical College, Ashland • Steve Kerrick, Partner – Mountjoy Chilton Medley, LLP, Louisville • Ray Leathers,

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Commissioner, KY Department of Workforce Investment, Frankfort • Gary Stewart, Retired CPA, Louisville • Tim Whitaker, Environmental Compliance Manager – Ashland, Inc., Calvert City Ray Leathers, Commissioner, KY Department of Workforce Investment provided the keynote remarks and saluted the winners while challenging all in the audience to engage in Kentucky’s workforce imperative. Leathers concluded his remarks stating, “Kentucky has the resources to build a globally competitive workforce – although, we must adopt a ‘work-first’ mentality and culture that drives workforce participation through engaged employers.” Lee Lingo, KAM Executive Director echoed Leathers’ remarks regarding workforce development and told the group “telling the

THE GOODS manufacturing story and engaging in your community is the cheapest and most effective way you can support your community and Kentucky’s prosperity.” Lingo and KAM Board Chair Jacqueline (Jackie) Hogan, General Manager, Toyotetsu, North America, Somerset emphasized the continued work of redefining the image of manufacturing, building

brand awareness and working together for our future and the future of our children and grandchildren. “It is an exciting and challenging time to lead Kentucky’s voice of manufacturing, KAM, and I know working together, our future is bright.” stated Lee Lingo. “As always, we received many worthy

nominations this year, making our selection committee’s job a difficult one, but we know the winners appreciate their time and effort. We thank the committee for their diligent work and congratulate all of our nominees, and our 2018 winners.” Congratulations to all of our 2018 Award Winners!

Photos

Huff Technologies

Wacker Chemical Corporation

Toyota Motor Manufacturing Kentucky

Kevin Diamond (Wacker Chemical Corporation)

Jackie Hogan (KAM Board Chair)

Mayor Greg Fischer (Louisville)

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

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The ICEman cometh:

How to respond when ICE knocks By David S. Jones, Partner, Fisher Phillips

In an attempt to remove some of the incentives that motivate undocumented workers to come to the United States, the Department of Homeland Security is setting its sights on workplaces.

Under the Trump Administration, Immigrations and Customs Enforcement (ICE) has sought increase workplace investigations by four or five times and plans to vigorously prosecute employers that hire undocumented immigrants. However, most of time employers are unaware that they are hiring undocumented immigrants, which can create serious problems for unwitting employers. Many employers have experienced I-9 audits, where ICE arrives on site and serves a notice requesting I9s and other documentation. While the visit alone can impact the business, it is nothing compared to ICE trying to arrest workers. Employers need to be aware of their rights and obligations when ICE does show up. EMPLOYER RIGHTS AND OBLIGATIONS First and foremost, employers should be aware that ICE can enter a public area (for example, the eating area of a restaurant) without any kind of warrant. If ICE enters a

public area and encounters an undocumented immigrant, ICE can take that individual into custody. ICE also may speak to employees in the public area. Employers may inquire as to what is going on, but they cannot interfere with ICE’s actions. Private areas (for example, the restaurant kitchen, offices, etc.), however, are a different story. Without a judicial warrant, ICE does not have the right to enter private areas or speak to employees. The officers will sometimes have ICE warrants, which are agency documents regarding the arrest and detention of an individual that have not been reviewed by a judge. These “warrants” carry no legal authority and do not give ICE the right to enter any private areas. THE DIFFERENT TYPES OF WARRANTS Additionally, even a judicial warrant may not give ICE the authority to search the business. ICE may arrive with

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an arrest warrant for an individual, which only allows them to arrest that individual. While employers should cooperate and try to summon the individual to appear, an arrest warrant alone does not authorize ICE to search the premises for the individual. For that, ICE would require a search warrant. Given all of these distinctions, employers should carefully inspect the warrant to determine whether it is valid and to understand exactly what obligations they have. They should verify that the warrant was signed by a judge and that it has the correct information. They also should verify the scope of the warrant: i.e., determine if it allows the ICE officer only to arrest someone, search the premises, question people, etc. Employers also should not consent to a search. Although consent is not required to carry out the terms of the warrant, consent to a search can expand what

THE GOODS the officers can do beyond the scope of the warrant. If the warrant does allow ICE to enter and/or search private areas, employers should obtain the names of the officer(s) and supervising agent and call an attorney. A company representative should accompany the ICE officer through the premises and take note of all actions and statements made by the officer, although he or she should not mislead, impede or otherwise interfere with the officer’s actions. Employees also should not speak to the ICE officer unless directed so by the warrant. If the officer questions an employee without authorization, the employee should direct the officer to the designated company representative. To ensure this is properly handled and to minimize worksite disruption, employers should designate representatives for this

purpose and ensure that they are properly coached on the proper actions. I-9 INSPECTIONS Still, the most common reason for ICE to show up at a company is for an I-9 inspection. In those cases, the employee representative should accept the Notice of Inspection (NOI) and immediately notify the appropriate parties within the company. ICE is required to allow companies three days to produce the documents requested in the NOI, but gives the company the “option” to waive the three days on the NOI. It is never advisable to waive the threeday period, and depending on the circumstances, it may be possible to extend that period further to ensure that the response is properly prepared. As with warrants, we also recommend immediately contacting an attorney.

With ICE’s renewed focus on workplace enforcement and push to remove undocumented workers, employers face an ever-increasing likelihood that ICE will be knocking in the near future. To avoid liability and to ensure that they are in compliance to the best of their knowledge, employers should begin by reviewing their I-9 files and policies. They should ensure that they have properly completed and documented I-9s for every employee hired after Nov. 6, 1986. They also should ensure they have protocols in place to properly handle any ICE visits or requests. This article provides an overview of certain legal issues. It is not intended, and cannot be construed, as legal advice for any purpose. For more information, contact an attorney in Fisher & Phillips’ Louisville, Kentucky office (502-561-3990).

Fisher Phillips congratulates all honorees of the Kentucky Association of Manufacturers’ 18th Annual Manufacturer & Employee of the Year Awards. Each of you serves as a role model and leader in the industry, and should be commended for your hard work and dedication. 220 West Main St, Suite 1700, Louisville, KY 40202 | (502) 561-3990 | ﬁsherphillips.com

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Assessment: the First Step

By John Gilbert, AKA Cyber Security Consultant

“At my fingertips were the controls to shut off utilities to 200,000 customers. I could have destroyed all of the equipment, too.”

I signed the visitor log and waited with my coworker in the entranceway of a large utility provider. The receptionist was cordial but very thorough in checking our work order documents and our ID badges, suspended by lanyards from our necks. The newly-installed security cameras gazed down impressively as our escort arrived. “I’ve been expecting you!” Off we went to inspect the two server rooms, one of which contained the controls to a major section of infrastructure. My colleague and I became experts at the company’s information network and physical security systems, taking pictures and detailed notes the entire time. Before long, we were back on the road home and celebrating a successful day’s work. Unfortunately for the company, we had been lying the whole time. Penetration testing, or ‘pentesting’ as it is often called, is really just a modern term for the venerable old art of breaking and entering. In the world of cybersecurity, however, it is a legal and

effective way for companies to see if their security measures work. In this case, the utility company’s corporate headquarters had hired us to assess the security at one of its facilities. Our team spent two weeks combing over their information network from the outside, looking for a traditional way to ‘hack’ in using the Internet. No luck. Fortunately, we found out from simple Internet searches that the company was undergoing a 3rd party audit by a large, national company that does such things. It was then a simple task to print up a fake work order on the company letter head, and print out some ID badges bearing the audit company’s logo. With about $5 worth of paper and ink, we gained access to the company’s most sensitive and critical areas. Prevention of incidents like this start with a simple security assessment or audit. Recently, the Department of Defense has started requiring at least a reasonable level of compliance with the new standard NIST 800-171. This is not merely

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another ‘check-the-box’ compliance requirement that generates yet another binder full of useless information that will sit on the production office shelf, collecting dust. It is, in reality, an investment with a real return – full of action items that can help to keep processes up, keep the network clear, and keep employees working on customer business instead of putting out fires. Take the above example. While the utility company was complying with NIST 800-171 items that require visitors to be escorted, visitor logs to be kept, and access to the server rooms to be monitored at all times, a simple assessment beforehand would have shown deficiencies in other NIST-required areas: • Vetting 3rd party IT workers • Review and approval of publicly available information Assessing compliance with NIST 800-171 earlier, a relatively simple and painless task, would have prevented my team from lying our way in to their networks. While I was in their facility that day, incidentally,

THE GOODS I dropped a handful of USB thumb drives containing a simulated virus. Employees found these and plugged them into their computers. A quick NIST 800-171 assessment would have pointed out they also had no policy governing the use of removable media, to include ‘found’ thumb drives. I went back to the utility company the next night and used my new knowledge of their security systems to climb a fence, break in, and defeat the lock to their main server room – despite there being a security guard on duty inside.

At my fingertips were the controls to shut off utilities to 200,000 customers. At my whim I could have destroyed all of the equipment, too. Of course, I did nothing but ‘simulate’ these things for my report. From the report the company learned that the return on the investment is real, and so is the damage that can be caused by non-compliance, even for companies who are not in the DoD supply chain. Advantage Kentucky Alliance has been working with our network of affiliates to

put together some critical CyberSecurity services. To inquire about these services, or any of our broad array of services, contact Kurt Felten, our marketing specialist, and have him set up a time for you to meet with one of our experts. Kurt can be reached at (270) 745-3370 or via email at kurt.felten@wku.edu. You can also see our AKA website for more information. Just go to www.AdvantageKY.org. Click here to see descriptions of all of AKA’s current CyberSecurity Services.

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We’re here for Kentucky, now and always See what Anthem can do for your business. Stop in for a visit at anthem.com.

Anthem Blue Cross and Blue Shield is the trade name of Anthem Health Plans of Kentucky, Inc. Independent licensee of the Blue Cross and Blue Shield Association. ANTHEM is a registered trademark of Anthem Insurance Companies, Inc. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association.

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The “Ins and Outs” of Data Cabling By Advanced Global Communications

Data cabling (known also as structured cabling) may have more “ins and outs” than you realize. This checklist can circumvent headaches, undue costs and delays.

Data cabling supports computer and other hardware uses, such as those on factory floors, warehouses, data centers and corporate headquarters among other cases. For data cabling installations, a given project carries certain requirements or considerations you may not weigh at the outset. Examples may include: warranty options; direct versus indirect routing paths; location of data closets relative to workstations, conference rooms, etc.; as well as safety, codes and standards. Additionally, the number of employees served by the cabling design and the type of facility involved -- such as a new warehouse versus and older building -- are factors to consider when planning for an effective, streamlined installation. KAM member Advanced Global Communications offers the following checklist to help “get the job done right” while enjoying a smoother, more efficient process. Advanced Global Communications has more than 20 years of

experience installing lowvoltage cabling, fiber and coaxial/copper in all types of facilities. “It’s all about asking the right questions so your project reflects the highest level of industry knowledge, professionalism and best practices,” said Patrick Keller, Advanced Global Communications vice president and co-founder. “They’re designed to prevent delays for both the cabling itself and your building project, in addition to cost runups and other headaches.” The tips can also help you achieve a design that’s easier to maintain and scalable as your business grows, Keller said. CABLING CHECKLIST • End-to-end solutions with warranties – These refer to a design that uses both data jacks and cabling made by the same manufacturer or cooperating manufacturers. Manufacturers typically offer 20- to 25-year

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

warranty coverage for the jacks and cable (if the installed cabling is not disturbed). You can also sell the warranty along with the building if such opportunities arise. Therefore, end-toend solutions may offer a tremendous warranty advantage. • Data closet location – Don’t let the data closet’s location become an afterthought when constructing a facility. Depending on the square footage of the facility, the price of the cabling only goes higher the farther the data closets are from workstations, conference rooms, etc. Centralizing data closets or using a “star configuration” when designing your cabling and connections may offer tremendous cost advantages. • Installation practices -Proper designing, planning, adequate pathways and installations adhering to industry standards allow for future changes and adds

THE GOODS without undue costs. One thing certain is changes always occur, even with the best-planned projects. With installations involving drop ceilings, do not install the cabling so it’s lying on the tiles or routed directly over florescent lighting ballasts. The cables are required to be installed to the ceiling structure above them. • Plenum vs. non-plenum ceilings – A plenum ceiling uses its cavity as the return air vent instead of using duct. Plenum ceilings require plenumrated cabling, which burns slower if exposed to fire or extreme heat, thereby emitting lower amounts of chemicals. This is required by code, but some clients install plenum in all circumstances as an extra safety measure. However, since its plastic coating is thinner, plenum tears easily compared to non-plenum.

Installers have to be careful when routing plenum around corners or edges to prevent tears. If tears happen, you may have to reinstall the cabling, which can drive up costs and frustrations. CODES AND STANDARDS Project managers should ensure all cable installations are in accordance with current editions of the following codes.* • National Electrical Code® • BICSI Telecommunications Distribution Methods Manual • BICSI Cabling Installation Manual • Latest issue of ANSI/TIA/ EIA Standards as published by Global Engineering Documents as TIA/EIA Telecommunications Building Wiring Standards • All local codes and ordinances

“Adhering to codes and standards is the right thing to do. This ensures absolute professionalism, safety and a smoother installation,” Keller said. “Failing to meet these requirements can lead to headaches and additional costs, so keep these points handy for your next project.” For more information, contact Advanced Global Communications at 502-583-6000 or visit them at www.agcworld.com. * BICSI stands for Building Industry Consulting Service International; ANSI: American National Standards Institute; TIA: Telecommunications Industry Association; EIA: Electronic Industries Alliance

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THE GOODS

CBN Hones for Improved Surface Finishing of Machined Superalloys Flexible cubic boron nitride (CBN) grit hones are ideal for restoring surface integrity of machined superalloys

By its very nature, high-nickel, iron or cobalt alloy steels including Monel, Inconel, Incoloy, Invar, Rene and Hasteloy are some of the most difficult materials to machine. Because these superalloys are designed to deliver high strength at extremely high temperatures in components often found in “hot” sections of engines and turbines, the stresses and heat generated during machining are considerable. In this process, the edge of the cutting tool is exposed to considerable mechanical stress, strain and heat. High compressive and shearing forces attack this edge, increasing temperatures such that the cutting tools can begin to lose hardness. This can produce a “gummy” machining behavior and also cause work hardening. According to Janos Garaczi, president of Delta Machine Company, LLC., a company that specializes in machining complex, tight tolerance parts out of titanium, nickel alloys, stainless steel, aluminum, plastics and other exotic alloys, this is caused when chips do not break away cleanly from the workpiece. Instead, the

material is just ‘pushed’ to one side. “It can be really difficult to turn or mill this type of material because it doesn’t produce a clear shearing action. Instead it just kind of pushes the material to the side,” explains Garaczi. “Gummy” machining is also the cause of heavy burrs in drilled holes or grooves. “The burrs are one of the biggest problems,” adds Garaczi. “Even during ‘grooving,’ if you cut the material from one side, it just pushes the burr to the edge; and if you approach it from the other side, it just pushes it back. It doesn’t want to break off the material cleanly. As soon as the tool gets a bit dull it gets a lot worse so sharp tools with the right geometry are key.” The general poor machinability ultimately compromises surface integrity of the parts, says Garaczi, which is problematic given that is one of the primary causes of failure of these types of components. Given the critical nature of the applications in which these components are utilized, most

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

machined superalloy parts must therefore undergo a surface finishing operation to remove work-hardened layers and any heavy burrs. Doing so has additional benefits, including reducing the risk of oxidation and stress corrosion cracking (SCC). Although this has traditionally been achieved through an expensive, messy and time-consuming grinding process, new flexible hones are simplifying the task by incorporating one of the toughest, hardest materials on the planet – Cubic Boron Nitride (CBN). CBN combines the highest hardness with excellent toughness to provide the optimum surface finish. Flexible hones made of this type of material can be mounted on CNC equipment for automated operations or used in the field with handheld power tools to wear away work-hardened surfaces without inducing additional thermal distortion. SUPERALLOYS High-nickel alloy steels are prized within these markets because of the excellent resistance to corrosion and heat with strength,

THE GOODS toughness, metallurgical stability, and weldability. These superalloys are a great choice for applications that require chemical resistance and strength at elevated characteristics. Their material properties include low expansion at severe temperatures and creep resistance under high stress conditions.

that can be achieved to at best 32 Ra. With turning, 16 Ra is possible, but most of the time it requires a grinding or polishing step. “Grinding is a very common process in these cases, but it is very time consuming and very expensive to have to grind a part. In some cases, it could take longer than the initial machining.” As a result, Garaczi says that Delta Machine often sends parts out for grinding or polishing, opting to not perform this type of operation in house. FLEXIBLE HONES For many machine shops, a flexible hone is a much more efficient tool for overall surface finishing. The low-cost tool is often used for sophisticated surfacing, de-burring, edgeblending and cleaning.

As such, superalloys are widely used as material for the hottest parts of complex equipment including nuclear power components, highperformance automotive parts and jet engine turbines. Nickel, iron and cobalt alloys are also used broadly for aerospace components, medical devices, petrochemical and refining applications and thermal processing. According to Garaczi, with the right cutting tools milling nickel alloys and stainless steels is still limited as to the surface finish

Until recently, however, flexible hones with CBN abrasive were only available by special order. Now, the company that invented the Flex-Hone® Tool, Brush Research Manufacturing (BRM) of Los Angeles, Calif., offers CBN surface finishing solutions part of its standard product line. Somewhat reembling a spinning bottlebrush, the FlexHone tool is characterized by abrasive globules that are permanently mounted to flexible filaments that are attached to a center shaft. With its low-pressure, lowtemperature abrading process, BRM’s CBN Flex-Hone tools can remove work-hardened layers and deburr parts without disturbing the underlying metallurgical structure.

Standard CBN Flex-Hone tools come in sizes ranging from 4mm to 20mm in three different mesh sizes: 170/200, 800, and 2500. Larger sized products from 22mm to 38mm and additional mesh sizes are available by special order. Garaczi says he can see the advantage of being able to install a flexible hone into CNC equipment to automate the process and speed up the time when finishing superalloys and stainless steels. Garaczi is in a unique position, having started with the company as a machinist and eventually working his way to president and owner. As such, he remains responsible for much of the programming, setups and also purchasing. He says that when making decisions about what tools to purchase it is often on a project-by-project basis. However, if the tool can reduce cycle times versus its cost, it is an easy decision. “There are definitely scenarios where it would be good to be able to perform surface finishing of this type of material on CNCs,” says Garaczi. “It would really save a lot of time and extra processing cost.” For more information, contact Brush Research Manufacturing, Brush Research Mfg. Co., Inc., 4642 Floral Drive, Los Angeles, CA 90022; Phone: (323) 2612193; Fax: (323) 268-6587; email: info@brushresearch.com or visit the web site: www.brushresearch.com.

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

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THE GOODS

Perfecting Diffusion Bonding Specialized furnaces with integrated presses provide superior control of pressure and temperature to create better diffusion bonds when joining similar or dissimilar metals

For many years, diffusion bonding has been utilized to join high strength and refractory metals that are either difficult or impossible to weld by other means. The process, which involves applying high temperature and pressure to similar or dissimilar metals mated together in a hot press, causes the atoms on solid metallic surfaces to intersperse and bond. Unlike traditional brazing techniques, the resulting bond exhibits the strength and temperature-resistance of the base metals. It also eliminates the need for filler material that affects the final weight and dimensions of the mated metals. Despite its benefits, the use of diffusion bonding has been limited by more practical considerations. Specifically, the size limitation of the furnace chamber as well as limits to the amount, and uniformity, of the pressure applied across the entire surface area of the part. Run times are also long, often lasting a full day.

More advanced equipment now provides superior pressure control, feedback from embedded pressure transducers, physical ink tests that show variations in pressure across the surface and rapid cooling systems to improve the bond, increase yields and significantly increase cycle time. The process is now also being utilized for a revolutionary additive manufacturing process called Laminated Objection Manufacturing (LOM). In this approach, thin 1-2 mm sheets of metal are bonded in what is essentially an additive process. The layered sheets can be laser cut so that when combined together create cooling channels, for example, used to dissipate heat. The final “sandwich” with all its layers can then be machined using traditional CNC turning and milling equipment, if needed. HEAT TREATMENT FURNACES WITH INTEGRATED PRESSES For the atoms of two solid, metallic surfaces to intersperse they typically must be at

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

approximately 50-70% of the absolute melting temperature of the materials. To achieve these temperatures, the surfaces are heated either in a furnace or by electrical resistance to temperatures as high as 1400˚C. The pressure is applied by a hydraulic press or dead weights. Because the two mating pieces must be in intimate contact with each other, fixtures are often used. Once clamped, pressure and heat are applied to the components, usually for many hours. Since oxidation can also affect bonding, most heat treatment furnaces operate under a high vacuum. MORE PRECISE CONTROLS While these are common elements of the process, the missing piece to date has been precise control of each. Today, however, leading manufacturers such as PVA TePla of Corona, California, offer multi-cylinder systems with large pressing plates

THE GOODS

that can accommodate a variety of parts. The largest, the company’s MOV 853 HP can process parts as large as 900mm (35.43”) x 1250mm (49.21”), which is quite large for diffusion bonding. The pressing force is 4,000 kN. By controlling each cylinder independently, the integrated press provides extremely consistent pressure across the entire surface. The MOV also comes with built-in pressure transducers along the bottom of the pressing plate. Based on the readings, the individual hydraulic cylinders can be adjusted to achieve uniformity even over large areas. PVA TePla has optimized a physical ink test method that can be performed to identify areas on the part where uneven pressure is being

applied. With superior temperature control and multiple hydraulic cylinders in the press, much thinner fixturing plates (less than 3”) can be used, freeing up space in the furnace and allowing for increased cycle times due to faster heating of the surfaces to the desired temperatures. LAMINATED OBJECT MANUFACTURING (LOM) With LOM, the concept is to bond layers of sheet metal that contain machined microchannel structures. When combined, the channels can provide for cooling or heat dissipation. The layers can be bonded up to a height of 600mm in the MOV diffusion bonding press retaining the strength as the parent materials.

With the multi-layer LOM design, more complex cooling channel designs can be incorproated into injection molds, allowing for higher pressures to be used. This significantly increases cycle times as much as 40% while enhancing product quality. NEXT GEN APPLICATIONS Although it has been around for decades, with more precise control of temperature and the uniformity of pressure across large parts, diffusion bonding opens up tremendous possibilities for a variety of next generation products. For more information, contact PVA TePla America at 951-3712500 or 800-527-5667 or visit www.pvateplaamerica.com.

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19

THE GOODS

Investing in Your Digital Footprint - A High Level, Step-by-Step Guide Blackstone Media In a day and age where manufacturing companies are increasing their digital investment, it’s important to evaluate and invest in your company’s digital future as well.

There is ample data today that manifests the importance of a company’s digital presence, but I’m not sure that’s totally necessary at this point. If you’re reading this article, you understand how important it is to increase your digital footprint. So I’ll skip the “youshould-do-this-because” portion and jump right into a high level explanation of how you, as a manufacturer, can ramp things up. At the end, I’ll discuss a little about what you should expect financially in the first year.

Questions you should be asking: Who “owns” the website; who manages and hosts it? Do you have a marketing department that actively monitors social media and Google news to see what is written about your company? Is the website secure? When is the last time you have stacked up your digital presence against the competition? Have you performed a digital SWOT?

Inventory what you are currently doing and the person or team that “owns” your digital presence.

Identify areas for improvement.

So many manufacturing clients with whom I have worked do not know when last their website was updated, nor do they know how much they are currently investing in digital. Here’s the thing: if you don’t know, then your company is likely not doing much of anything. And in order to be a collaborator in your own digital future, you need to be informed.

Executive summary: Inventory your digital presence, and figure out who “owns” what.

If you haven’t updated your website in 5-6 years, it’s an area that needs improvement from a content, technological, and security standpoint. A lot has changed in 5-6 years; digital technology moves quickly. 5 years ago, facial recognition on your iPhone wasn’t a thing; today, Apple won’t make a new generation of iPhone without it. All things considered, B2B manufacturing has been slow to adopt clean, UX-driven

WINTER 2018-19 | KENTUCKY ASSOCIATION OF MANUFACTURERS

websites and sophisticated digital marketing plans that generate leads and move those leads further down the sales funnel. So while your website might need improvement, there’s probably a good chance that your competition isn’t light years ahead of you. Questions you should be asking: When is the last time we updated our website? What are you doing and where are you advertising from a digital standpoint, and does it align with your overall print marketing strategy? How and where are you reaching your target audience? Do you have a keyword, SEO, and page rank strategy? Are your digital assets aligned with your print assets? Executive summary: Once you know who “owns” the digital marketing at your company, peel back the layers of the onion and dig deeper to find out if there is a connected strategy. If you’ve answered “Yes” to all of the questions above, you’re clearly out of the introductory stage.

THE GOODS Prioritize short term and long term digital goals.

If you’re still reading this, I recommend talking to a digital marketing consultant, professional, or agency to help create a quarterly, annual, and 3-year plan with specific benchmarks. The rabbit hole called “digital marketing” is an endless one, but it’s also one that can be evaluated with benchmarks and ROI. A good partner will help set attainable goals that increase your bottom line, and they will create the strategy needed to do so. By creating a plan and identifying key performance indicators (KPIs), you can prioritize your needs short term (such as brand exposure, lead generation, sales, new clients) and your needs long term, and you can discuss realistic outcomes for different tactics employed.

the strategy needed to meet the goals. At the beginning, I said this was a high level explanation. I don’t want to get too granular, but you should expect your digital partner to want to get granular. The aforementioned steps are merely the first steps on a long journey. One last thing, though… how much should this cost? The answer is never easy. There are always diminishing marginal returns of investment, so I’d like you to think of this investment as hiring a new employee. When you hire an employee, you continue to pay him or her over the years to contribute, grow, and add value. A good digital partner

will cost no less than an internal, dedicated employee, and if you hire an agency, you will get subject matter experts in multiple disciplines (SEO, PPC, security, etc.). All that said, there are different approaches. The bottom line here: in a day and age where manufacturing companies are increasing their digital investment, it’s important to evaluate and invest in your company’s digital future as well.

Questions you should be asking: What are we trying to accomplish in the short and long term? Who is our target audience? What can I expect to accomplish in 3 months, 6 months, and 1 year? Should I invest in digital marketing prior to building a new website (if needed), or should I build the website first? What does my company need to be doing to prepare for the future in digital? Execute summary: The right partner is out there. Don’t settle for the first person or outfit you talk to. Make sure there’s good chemistry, and understand that it will be a collaboration between your company and your digital partner to identify the KPIs and

KENTUCKY ASSOCIATION OF MANUFACTURERS | WINTER 2018-19