{' '} {' '}
Limited time offer
SAVE % on your upgrade.

Page 1


TABLE OF CONTENTS New Members Allgeier Installation & Refinishing GLC Direct, LLC Meridian Leasing Corp. RT Welding & Fabrication International eProcurement Strothman and Company Stelised Inc. Dapco, Inc. Ferrar MP Kelly Design & Construction Bim Group Monarch Coin & Security Dajcor Aluminum Cincinnati Automation Morehead Rowan County EDC

4

Executive Shop Talk

5

Wage and Benefits Survey

6

KAM Special Announcement

7

Upcoming Events

8

Summit Recap

9

Manufacturing Award Winners

10 Advocacy Corner Government Strategies

12 Keeping Up: Risk Management FCCI Group

14 Volatility in the Economy Euler Hermes

16 Scarcity of Attention Power PR

20 Keeping Tabs on Technology Matrix Integration

22 Outsourcing Plasma Treatments PVA TePla

25 Benefits Beat McGriff Insurance

26 Precise Pharmaceutical Composition Analysis Kett

30 Barriers to Workplace Improvement Advantage Kentucky Alliance

32 KY Pregnant Workers Act Fisher Phillips

34 Harmful Humans Advanced Risk Services

36 Employees and Future Disabilities Fisher Phillips

38 Debit is the New Credit Infintech

40 Order Your KAM Blue Books Now

2 | THE GOODS | WINTER 2019


RENEWING MEMBERS 3M ACH Products, Inc. Artemis Electronics, LLC AT&T Big Rivers Electric Corporation Bishop Cabinet Shop Inc. Blue & Company, LLC Blue Grass Metals, Inc. Signarama Dixie CFA Kentucky, LLC Classic Kitchens of Campbellsville, Inc. Commonwealth Agri-Energy, LLC Commonwealth Machining, LLC Computer Mendtor dba ISC Kentucky Davis Printing, Inc. Dean Dorton Allen Ford, PLLC Derby City Pump & Valve Service, Inc. Dinsmore & Shohl LLP Dow Chemical Company East KY Power Cooperative Energy Architects Evonik Corporation Foundations Human Resources Consulting Frields Machine & Fabrication, LLC Gateway Printing & Signs GHD Services Inc. Glasgow/Barren Co. Industrial Development and Econ Auth. Glier's Meats Greenwell Chisholm Printing Hands On Originals Hopkinsville Milling Company, Inc. Houston-Johnson, Inc. Hummingbird Nano, Inc. IB Moore Company, LLC Industrial Service & Electronics International Crankshaft, Inc. Jim Smith Contracting Kentucky BioProcessing, Inc. Kentucky Clutch Inc. Kentucky Roll Company LLC Landmark Sprinkler, Inc. Lanning Chemical Co. Inc. Leininger Cabinet & Woodworking, Inc. Level 12 Martin Machining Services, Inc. McGriff Insurance Services MPI Printing Nucor Steel Pace Analytical Services, LLC Paris Machining, LLC PhRMA Power Deck Company LLC Premier Fleet Graphics Prince Precision Machining Radiant Networks Services Inc. RPS Barge Company Schneider Electric USA, Inc. Schroeder Publishing Co. Inc. Sharps Candies Six Sigma, Inc. Sullivan University Superb IPC Toolco, Inc Toyotetsu America, Inc. Voestalpine Roll Forming Corporation Wacker Chemical Corporation Westerfield-Bonte Company

KAM BOARD EXECUTIVE COMMITTEE

Chris Driver, Chair Harshaw Trane, Lexington Douglas Irvin, Treasurer Darling Ingredients, Cold Spring Thomas Koehler Wacker Chemical Corporation, Calvert City Rejeana Thompson Aichi Forge USA, Inc., Georgetown Richard N. Whitaker Sumitomo Electric Wiring Systems Inc., Bowling Green Lee Lingo, Executive Director Kentucky Association of Manufacturers, Frankfort

DIRECTORS

Bluegrass Rusty Ashcraft, Consultant, Alliance Coal, LLC, Lexington Chris Driver, Hydronic Solutions Sales Leader, Harshaw Trane, Lexington John-Mark B. Hack, VP for Business Development, Bristol Group, Inc., Lexington Lee Lingo, Executive Director, Kentucky Association of Manufacturers, Frankfort Rejeana Thompson, Environmental Specialist, Aichi Forge USA, Inc., Georgetown South Central Jeremy Ballard, Assistant GM, Stamping Division, Toyotetsu America, Inc. Somerset Richard Whitaker, Vice President, Sumitomo Electric Wiring Systems, Bowling Green Eastern Byron Craig, Executive VP KY Operations, Boneal, Means Tracie McCall, Product Control Manager, Marathon Petroleum Co., Catlettsburg Louisville George D. Adams, Partner, Fisher & Phillips LLP David Hall, Resident VP Public Affairs, CSX Transportation Earl F. Jones, Senior Counsel, GE Appliances Daniel Naes, Plant Director, Brown-Forman Corporation Moriah Ogilvie, Director, KY Large Group & Assn Retention, Anthem Christopher Perry, President & CEO, Kentucky Association of Electric Cooperatives Paula Smith, Senior Counsel, Gov’t Affairs, Kentucky Farm Bureau Mutual Insurance Joshua Scott, Lead, Key Account Manager, LG&E-KU Northern Douglas Irvin, VP of Environmental Affairs, Darling Ingredients, Inc., Cold Spring Ernie Leicht, VP of Operations, Regal – Power Transmission Solutions, Florence Western Robert J. Baker, President, Campbell Tobacco, Mayfield Robert R. Cook, Sales Representative, Atmos Energy Corporation, Owensboro Thomas Koehler, VP/Site Manager, Wacker Chemical Corporation, Calvert City C. Douglas Wolf, VP of Compliance, Pace Analytical Services LLC, Madisonville

KAM TEAM MEMBERS

Lee Lingo, Executive Director Shelley Goodwin, Director of Operations Jena Scott, Communications Manager Sherry Harrod, Executive Assistant Rachel Bayens, Legislative Agent Carl W. Breeding, General Counsel Lloyd “Rusty” Cress, Executive Director, KAM Chemical Industry Council Prentice Harvey, Legislative Agent Mike Helton, Advocacy Team Leader Bert May, Legislative Agent Dustin Miller, Legislative Agent Kelly Shasky, Legislative Agent Mike Shea, Legislative Agent Austin B. Wicker, Legislative Agent

Winter 2019 | The Goods | 3


executive shop talk Amazing growth is happening at KAM this year, and I’m glad you get a glimpse of it here at our Excellence in Manufacturing Summit. Our membership continues to grow and I’m proud to welcome the Kentucky Automotive Industry Association and the Kentucky Aerospace Industries Consortium into KAM’s membership roster. Our automotive and aerospace manufacturers and suppliers in Kentucky are invaluable to the manufacturing sector, and we are excited to have them on board as KAM members.   When we ask our members about their concerns in the industry, workforce is always the number one issue discussed. One of our main issues with the workforce is our failure to portray the accurate, positive image of manufacturing.   Manufacturing can be a high-skill, high-wage secure career path with great opportunities for continuing education, including post-secondary at little or no cost, and advancement in all career areas. In addition to the traditional skill trades, manufacturing offers options in business, marketing, health sciences, art/creative fields, communications, agriculture, and much more.

4 | THE GOODS | WINTER 2019

That’s why we’ve relaunched our Wages and Benefits Survey in a more concise and streamlined format this year. The goal of the survey is to provide insight about benefits and working conditions in the manufacturing industry. The results will help identify current trends and best practices in employee recruitment and retention, so it's crucial to have as much participation as possible. KAM also will be using the anonymized data to promote manufacturing and skilled trades careers across the commonwealth in our attempt to tell the story of manufacturing, why we do it, and why others should consider it too. You can find the link to register at kam.us.com/wage-and-benefits. Thank you for your support of our event and our industry. We are always here to assist our manufacturers in any way we can, and I hope we’ll hear from you. Respectfully,

Lee Lingo Executive Director Kentucky Association of Manufacturers


The big question: Why should my company participate?

With an employee recruitment and retention crisis sweeping the nation, it's important to know where your company stands in offering perks and benefits. Are your wages competitive? Are your benefits affordable for employee participation? The Wage and Benefits survey will offer anonymous insight into these questions for employers across the state. Every company that completes the survey will receive a free regional summary and will also be entered into a drawing to receive a free copy of the full report!

Visit kam.us.com/wage-and-benefits  to register for your survey!

thank you to our 2019 Wage and Benefits Survey sponsors!


Kentucky Association of Manufacturers Announces Incorporation of Kentucky Automotive Industry Association and Kentucky Aerospace Industry Consortium The Kentucky Association of Kentucky Association of Manufacturers (KAM) announced the incorporation of the Kentucky Automotive Industry Association (KAIA) and Kentucky Aerospace Industry Consortium (KAIC) into KAM’s organization. “We are excited to welcome the automotive and aerospace industries into KAM’s membership,” said KAM Executive Director, Lee Lingo. “These two manufacturing sectors are major influencers of Kentucky’s economy. Aerospace products are Kentucky’s primary export, and the automotive industry is one of the biggest employers in our state. We are one organization committed to serving the many needs of manufacturers and their 250,000 employees in Kentucky. The Kentucky Association of Manufacturers is growing both industries and manufacturing as a whole across the Commonwealth as we tell the story of manufacturing and its role in our past and future.”   The addition of the KAIA was completed in June of 2019, and the KAIC addition was finalized in October of 2019.   Kentucky’s automotive industry employs 95,000 workers, which totals approximately 38 percent of all Kentucky manufacturing workers, and slightly higher than ten percent of total autoworkers in the United States. Approximately two-thirds of all Kentucky counties have an auto-related employer and we exported nearly $5.5 billion in motor vehicles and parts, accounting for nearly one-sixth of all Kentucky exports.    “I am delighted to announce that we are bringing KAIA under the umbrella of the Kentucky Association of Manufacturers to enhance the value of memberships,” said Dave Tatman, former executive director of KAIA. “KAM offers a wide variety of extra benefits to improve KAIA’s membership value, and I’m sure that our member organizations will find that to be true.”   In 2015, the value of all aerospace manufacturing exports reached $8.7 billion, making it the largest industry sector in the state by that measure. The following year, the value of exports hit $10.8 billion and in 2017 it was nearly $11.7 billion. In 2018, the value of aerospace manufacturing exports hit $12.56 billion with a $17.4 billion overall economic impact. With over 20,000 industry-specific employees, the aerospace industry also relies heavily on the aluminum, steel and iron, and rubber and plastics industries, which employee approximately 55,000 people, according to the Cabinet for Economic Development.   “KAM is a well-established organization that will allow Kentucky’s aerospace and defense industries to continue its dynamic growth and momentum, while accentuating your membership benefits and connecting you to a broader network of manufacturers,” said former KAIC Executive Director, Stewart Ditto. “KAM will use this opportunity to firmly establish KAIC as their aerospace and defense sector partner, adding to their existing portfolio of industry-focused areas.”   With nearly 500 industry members, KAM proudly offers manufacturers and suppliers its full suite of member benefits, including advocacy for manufacturing at both the state and federal level; special rates on insurance services including health, property and casualty coverage; tax credits and tax assistance; shipping and textile discounts; and much more. As the only statewide business association focused solely on manufacturing, KAM continues to pursue opportunities connecting manufacturers of all sectors across Kentucky as we represent all manufacturing sectors under one organization.


SAVE THE DATE

January 29: kam's day at the capitol

Join KAM and our partners for our annual Day at the Capitol. This year we'll kick things off in the morning with updates from members of the General Assembly, followed by personal meetings with legislators. We'll wrap up the day with a provided lunch and gallery passes for those who would like to stay to watch the session.

february 25-27: manufacturing expo week

The automotive, chemical, and aerospace sectors will have mini expo booths set up on their respective assigned days inside the Capitol to show off their companies and latest innovations. Lunch is provided for registrants.

watch your email for more information. Winter 2019 | The Goods | 7


EXCELLENCE IN MANUFACTURING SUMMIT PRESENTING SPONSOR

The Arkansas State Chamber of Commerce/Associated Industries of Arkansas' Be Pro Be Proud traveling workforce development workshop was a main attraction at the Summit.

The Matrix Integration team sponsored the automotive portion of the Summit. Daniel Mudd, of the Summit's Presenting Sponsor Frost Brown Todd, gave opening remarks at the Summit. A summit attendee tried out the virtual reality skilled trades training on the Be Pro Be Proud Mobile Workshop. Be Pro Be Proud features 17 different skilled trade and their career paths.


Kentucky Association of Manufacturers Announces 2019 Manufacturers of the Year and Employee of the Year Award Winners LEXINGTON, Ky. (Oct. 30, 2019) - The Kentucky Association of Manufacturers (KAM) announced the winners of its 19th Annual Manufacturer of the Year Awards and Employee of the Year Awards. The awards were presented at KAM’s Excellence in Manufacturing Summit in Lexington, Kentucky, on October 30, 2019. The Manufacturer of the Year Awards were made possible by Brown-Forman, and the Employee of the Year Award was made possible by the Kentucky Community and Technical College System (KCTCS). Stelised, Inc., from Shelbyville, KY, won in the Small Business Category; and Alltech, from Nicholasville KY, won in the Large Business Category. The manufacturing winners were selected based on the following criteria: Innovative and entrepreneurial leadership with regard to products, production method, or services; leadership in making a key contribution to the quality of life in the commonwealth and their community; and active involvement in organizations that advance industry and manufacturing. Dennis Dio Parker, a Toyota North American Regional Talent Development Consultant in Georgetown, KY, was selected as the 2019 Employee of the Year. The Employee of the Year nominees were judged based on four criteria: Innovation, teamwork, community service and leadership. The independent 2019 Awards Selection Committee consisted of: Rich Cleary (Committee Chair), Member – Frost Brown Todd LLC, Louisville Ray Leathers, Chairman Shelby County Industrial Development Foundation, Shelbyville Gary Stewart, Retired CPA, Louisville Tim Whitaker, Environmental Compliance Manager – ISP Chemical/Ashland, Inc., Calvert City Larry Ferguson, President, Ashland Community & Technical College, Ashland Glenn Bradley, Partner, Manufacturing Services Team Leader, MCM CPAs & Advisors, Louisville “We’re continuing the tradition of excellence in Kentucky manufacturing with the exceptional nominees presented for the 2019 Manufacturing Awards,” said KAM Executive Director, Lee Lingo. “Kentucky manufacturers offer an incredible variety of services and products. These awards reflect the continued growth and success of manufacturing in our commonwealth. Thank you to our Awards Committee and congratulations to our nominees and winners.”

Visit https://kam.us.com/manufacturer-employee-of-the-year-awards/ to learn more about our 2019 winners!

Winter 2019 | The Goods | 9


FRANKFORT has been an interesting place

in recent weeks. The Executive Branch of state government is in transition following Andy Beshear’s win over Governor Matt Bevin in November. Governor Beshear was sworn in as the Commonwealth’s 63rd Governor on December 10th and has started the process of putting together his leadership team and cabinet secretaries throughout state government. Governor Beshear has appointed key staff who worked for him in the Attorney General’s office as well as tapped into expertise from his father’s administration several years ago. He will continue this process over the next several months. Governor Beshear immediately acted on several campaign promises in his first few days in office. He issued an executive order to restructure the Kentucky Board of Education and also restored voting rights to over 100,000 felons. Public education will be a priority and we are likely to see that reflected in his budget proposal, which he will submit to the Legislature in late January. New governors are afforded little time by the state Constitution to prepare a state government budget, which can create a hectic first month in office. Speaking of the Legislature, the 2020 Kentucky General Assembly will convene for the 60-day budget session on January 7th. Legislative makeup remains the same with Republicans holding supermajorities in both the House and Senate.

10 | THE GOODS | WINTER 2019

Consideration and passage of the state budget is always the priority during a 60-day session and this process tends to drive all other activity and action on legislation during the session. We have for the past four biennial budget sessions cautioned of tight budget times that could prompt efforts to generate more revenue. This coming session is no different with the state’s Consensus Forecast Group (CFG) and outgoing administration predicting large shortfalls in the state’s general fund for the coming biennium. Former State Budget Director John Chilton sent a memo to legislators and Beshear officials, before the administration change, referencing a Consensus Forecast Group estimate for revenue growth the next biennium at a very low 1.7 to 2.0 range. That equates to an estimated $227.5 million increase for 2021 and $420 million increase for 2022. Both years fall substantially short, in the amount of $1.2 billion, of addressing the additional needs. The memo pointed out that additional state funding would be needed for Medicaid, public employee pensions and for the KY Employees Health Plan. Budget shortfalls aren’t new to Frankfort, but there appears to be very significant needs looking toward the next biennium. Discussions will increase on tax reform especially with the change in administrations.


We anticipate the new Governor will have to address the issue in some way, but recognize that it will be very difficult to tackle this session. It is too early to tell what tax reform might look like under a Beshear administration, but we do know that the Republican legislature has long discussed moving towards a more consumption based model and away from taxing income.

KAM has worked hard during the Interim to put together a process for establishing legislative priorities that are important to Kentucky Manufacturers. We look forward to sharing more information on KAM’s legislative agenda very soon. The KAM Advocacy Team is working hard represent your interests in Frankfort and we will keep you informed as the 2020 Legislative session approaches.

We also expect there to be discussion this session on increasing revenue for transportation infrastructure. The past two sessions there have been bills introduced to increase the gas tax and reform various licensing and fee structures in order to adequately maintain and provide safe roadways and bridges across the Commonwealth. Other issues discussed will include medical marijuana and sports betting.

Winter 2019 | The Goods | 11


Keeping Up with a Thriving and Evolving Industry By FCCI Insurance Group

Celebrating its 60th anniversary this year, FCCI Insurance Group has much to be proud and thankful for, while looking eagerly toward its future. One of the things FCCI is most anticipating in the coming year is the launch of its partnership with the Kentucky Association of Manufacturers (KAM). Starting in 2020, FCCI will be the carrier of choice for KAM. With this designation, eligible KAM members will have access to a local, designated insurance service team, providing professional risk control and claim expertise; manufacturers’ educational seminars; online risk management resources; and FCCI Employers Edge – an online resource, providing HR management and employment law information. FCCI has been providing commercial property and casualty insurance since 1959. The company – which is Rated A by A.M. Best and valuated at $2.4 billion in total assets – believes in taking care of people, managing risks and providing comprehensive coverage and caring, efficient claim service. Its business insurance coverage, services and surety are available exclusively through independent agents who can be trusted to know each and every client and their business. As a super-regional business insurance company that's mutually held, FCCI’s focus is on serving its agents and policyholders, and employing teammates

12 | THE GOODS | WINTER 2019

who embrace that mission. The company is proud of its financial strength, long-term stability and the relationships it has with agents and policyholders. FCCI was built by people who were looking for a better way to provide insurance coverage. They knew that taking care of people was good business and they’ve stuck to that principle. FCCI builds caring relationships with its agents and policyholders, because they are a part of the communities they serve. Caring and individualized service are provided through all types of insurance coverages – including manufacturing. The ever-changing economy is interconnected with businesses relying on each other for products, goods and services. Technology advances, specialized machinery, supply chain and labor safety can provide unique challenges to manufacturers. Protecting businesses is FCCI’s passion. The company provides a broad scope of insurance coverages to more than 3,000 manufacturers, so they understand the needs of the industry. Manufacturers face unique risks, in addition to the standard risks all businesses face. Manufacturing workers may utilize heavy and dangerous industrial equipment, and may need specialized safety training to use that equipment with expertise. FCCI’s experience in risk management can help manufacturers forge the way to a safer business.


FCCI Insurance Group provides customized manufacturing coverage to protect against the risks involved with making products, successfully writing claims in areas including fabricated metal, printers, technology, rubbers and plastics, and miscellaneous manufacturing, such as furniture, household plastics and sign manufacturing. The company has decades of experience in providing specialized coverage to meet the needs of manufacturers, including risk management plans designed to meet the safety goals of businesses. Coverages can be tailored for manufacturers of plastics, metal goods, cabinets, non-critical auto parts and much more. And as businesses grow and coverage demands increase, FCCI will be there with solutions and a promise. Manufacturing specific coverages include: General liability, including product recall Property, including business income Workers’ compensation Manufacturers errors and omissions Machinery and equipment, including equipment breakdown Cyber liability and employment practices liability What differentiates FCCI from others operating in the manufacturing arena is that it offers all lines of business coverage, competitive pricing, fast and reliable claim services, financial strength, knowledgeable risk management, and its industry expertise and experience. The company is best able to serve its agencies – including those in the Midwest – with a truly local and responsive presence.

“We write all lines of insurance, which is a huge advantage. A lot of carriers might shy away from manufacturing, but we underwrite each risk on its own individual merits,” said Underwriting Consultant Michael Loureiro, CIC, AU, AU-M. “Plus we’re highly localized. We have underwriting, risk control and local claim adjusters there to address needs as fast as possible.” Loureiro notes that the company has already reached over $100 million in premiums, with steady growth over the past decade. He expects that growth to continue. “We’ve got all the coverages in place to be a one-stop shop for an agency looking to place manufacturing with a carrier,” he said. “Our tagline is ‘More than a policy. A promise.’ FCCI backs that up. If you’re going through a tough situation, there are really great people who will back up their promises with action. We feel there’s great alignment with the Midwest Region and our corporate values.” FCCI has long been supportive of association programs. The company – which is the endorsed carrier for the Indiana Manufacturers Association, Associated Builders and Contractors, and the Virginia Manufacturers Association, and recognizes the value associations provide to their members. “We appreciate the confidence that the Kentucky Association of Manufacturers has placed in FCCI. They did due diligence to ensure their members are being entrusted to a carrier that will meet their needs,” said Greg Kramer, senior vice president for FCCI’s Midwest Region. “We pledge to uphold that trust and look forward to bringing our coverages and service to KAM members.”

Winter 2019 | The Goods | 13


Volatility on the Landscape Ahead By euler hermes north america

We’re living in a volatile economic environment with a landscape on its way toward a slowdown. This can mean uncertainty for your business, but there are ways to mitigate the risk. Managing, allocating, and preserving your cash is important to stay ahead. Taking advantage of technology and leveraging data science to look at the trends of your customers, regions, and different emerging countries need to be top of mind as you create your plan heading into 2020. Discussing more on these pressing topics during a recent interview, James Daly, President and CEO of the Americas region at Euler Hermes, and Dan North, Chief Economist, North America at Euler Hermes spoke with Anjan Roy, Global Finance Executive at General Electric (GE) about the best practices CFOs should take to prepare for the uncertainties in the months ahead, as well as where the economy is on a global scale. Read below some of the main takeaways from their roundtable discussion. Question: What economic factors are affecting organizations? Global economies varying from region to region are showing signs of uncertainty in their growth. There are a few unpredictable events that are affecting performances just as much as the economic downturn.

14 | THE GOODS | WINTER 2019

For example, a few companies in Canada who grow and process canola oil send most of their oil to China. Because of the current trade dispute with China, they have nowhere to send the oil, leaving them with unpaid invoices and excess products. These organizations are now in an unfortunate bind because of the uncertainty of change in the way the world is evolving in terms of global trading relations. Another example is the lack of preparation for the future and evolving with the times. For example, we have Toys“R”Us and Sports Authority, two giant retailers in the U.S. that didn’t and couldn’t compete against the Amazon’s of this world because they didn’t future-proof their business and evolve with the changing landscape. In order to invest in your business, you need to think about if you will still be relevant in years to come. Sometimes that means doing something you wouldn’t normally do, like partnering with your competitors or working with organizations in sectors similar to yours to see what’s going on and what trends are out there. Question: How can you become more agile to prepare for volatility and reduce risk to protect your bottom line? Standardize your finance operations as much as possible—especially if you work with different industries and countries. You are setting yourself up


for failure if you don’t standardize the way you execute your invoices, the way you talk to your customers, or the way you manage your financial performance and cash flow. Ask yourself, how can you better oversee collections and delinquent payments? Treat your finance department as a business partner, and recruit people to your team who have the crossfunctional experience to help work on company culture. Make it a point to stay connected with all teams and understand all the connection points between sales and marketing. It’s easy for teams to operate in silos and work on their own metrics and incentives, but by coming together and understanding which actions impact the overall arching goal of the business, you can come together to work as one team with a common and shared goal. You can also implement a culture of de-centralizing the decision making process to make decisions faster based on data. When decisions are data-driven, people feel accountable and empowered to make the call on their own. The faster and the more real-time data you have, the quicker you can react and the more you can empower your teams to make good judgments. Question for Chief Economist, Dan North: From your perspective, do you think the global economy is weak? “Yes, I do. There are three economies in a recession: Italy, Turkey, and Argentina with Germany skating right around the edge. In the third quarter of last year, there were six economies that had negative GDP growth. The macro data we get out of Europe shows that typically Europe grows fairly slowly, and it's slowed down quite a lot, which is a cause for concern. And China’s growth rates have fallen sharply.

There’s no question that the economy has slowed and probably has slowed more than the official data shows. We have people on the ground in China and the indications we get from them are that we are indeed seeing more slowing than in the official numbers, which can be basically anything they want them to be, to be quite honest. “The World Bank, the IMF, they've all downgraded their global growth forecasts. And a lot of that is organic, but there's this concern over the trade war. And that's actually having a real effect on exporting economies. We're hardly dependent on exports at all. It's something like 12 or 13% of our GDP. Many countries are much more dependent on exports and with tariffs globally going into place. It's a very real situation where we do have a global growth slowdown,” stated Dan. About Euler Hermes: Euler Hermes, a Company of Allianz, insures more than $1 Trillion dollars in accounts receivable, and is the world’s largest Trade Credit Firm. With more than 125 years of experience, we help companies safely and aggressively grow topline revenue, while protecting your balance sheet against unexpected losses on your receivables. The associated benefits include the opportunity to have more access to working capital, scale your current credit practices / speed of opportunity, and protect against bad debts due to slow-pay / bankruptcy / political risk (domestically and internationally)…All backed by a guarantee of repayment. KAM Trade Credit Insurance Benefit Contact: For more information regarding KAM”s Trade Credit Insurance benefit, please reach out to Jay Bauer from Euler Hermes. Jay Bauer Trade Credit Consultant Euler Hermes North America | A company of Allianz Direct: 513.907.3700 | james.bauer@eulerhermes.com

Winter 2019 | The Goods | 15


Scarcity of Attention: The Most Significant Marketing Challenge of Our Time Carlo Chatman, Power PR

The most significant marketing challenge of our time is the scarcity of attention from potential customers. Bombarded relentlessly from all directions with too much information, a deluge of products and services, and too many unsubstantiated claims, potential customers have tuned out, dropped out and become all but unreachable. Now resistant to communication, they can’t even process 5% of what is thrown at them daily, maybe even less. Unfortunately, this barrier is crippling the efforts of manufacturers to grow and expand. Many may not even survive as a result. “Scarcity of attention is the defining business challenge of our time,” says Jamie Mustard, a messaging, design, and communications expert for industrial firms. “Today, it is the attention of others that is the most valuable commodity in the digital age. In this environment, a company’s very survival depends on cutting through the sea of white noise.” If there is one telling example of the symptoms of this scarcity of attention, it is the anxiety and frustration over not being seen or heard that can permeate throughout an organization from ownership, through the C-level execs, sales team and even down to the average worker.

16 | THE GOODS | WINTER 2019

“Most manufacturers that design a great product continue to believe in the idea that ‘if you build it, they will come,’ says Mustard. “But like the movie it comes from, that is a ‘field of dreams’ from a marketing perspective. “So, owners and top execs are often just left wondering why the product isn’t garnering the attention it deserves and the product is not selling,” “If I could just get the attention of our potential customer for just 10 minutes, we could be extremely successful,” says John Neuens, CEO of BCA Industries, a company that specializes in industrial shredders and recycling equipment. “What I need from a sales perspective is a ‘dilution solution.’” Fortunately, all is not lost in the fight to break through the noise and be heard. The solution for standing out and being remembered is radically simple, even if seems a bit counterintuitive. To thrive in business today it is imperative to grab the attention of the prospect in an instant with a message that addresses a direct and immediate need like a sledgehammer, explains Mustard in his book, the Iconist, the Art and Science of Standing Out. The message must also be utterly and brutally simple, yet big and bold enough to hit the prospect between the eyes and lodge in their mind instantly.


“You have an instant to grab a prospect’s attention or you will likely lose them forever,” explains Mustard. “The message must affect them before they even have a chance to process it. If not, they are already moving on to the next website and another company.” Unfortunately, manufacturers often lose the battle because the message is overly complicated, unfocused and delivered with little or no repetition. In some ways, this can be attributed to the engineering mindset that many owners and top executives have in the manufacturing sector. Having personally overseen or even participated in the development of the product, it can be difficult to commit to a single, concise message. “As engineers that developed the product, the inclination is to promote all twenty-five features of the product,” says Mustard. “It often goes against the grain to strip down the message to the one bold statement that should be the lead of every interaction with potential customers.” To stand out, capture attention, and imprint it in the mind, the message must also include oversized, bold images or phrases that can be instantly understood. Finally, the message must address an emotional concern or even an immediate pain point. “I compare it to a road sign,” explains Mustard. “You have to have a road sign that explains the benefit to the customer, and if that road sign corresponds to the need of the customer, they will get off at your exit.” The next step is to repeat the message relentlessly like a drum, a never-ending mantra, at every contact point with the customer. Only then, will the message cut through the scarcity of attention and become an identifiable, even defining message for the company.

“You have an instant to grab a prospect’s attention or you will likely lose them forever,” explains Mustard. “The message must affect them before they even have a chance to process it. If not, they are already moving on to the next website and another company.” Unfortunately, manufacturers often lose the battle because the message is overly complicated, unfocused and delivered with little or no repetition. In some ways, this can be attributed to the engineering mindset that many owners and top executives have in the manufacturing sector. Having personally overseen or even participated in the development of the product, it can be difficult to commit to a single, concise message. “As engineers that developed the product, the inclination is to promote all twenty-five features of the product,” says Mustard. “It often goes against the grain to strip down the message to the one bold statement that should be the lead of every interaction with potential customers.” To stand out, capture attention, and imprint it in the mind, the message must also include oversized, bold images or phrases that can be instantly understood. Finally, the message must address an emotional concern or even an immediate pain point. “I compare it to a road sign,” explains Mustard. “You have to have a road sign that explains the benefit to the customer, and if that road sign corresponds to the need of the customer, they will get off at your exit.” The next step is to repeat the message relentlessly like a drum, a never-ending mantra, at every contact point with the customer. Only then, will the message cut through the scarcity of attention and become an identifiable, even defining message for the company.

Winter 2019 | The Goods | 17


“There is a snowball effect when you deliver a clear, bold message repeatedly,” says Jeff Elliott, CEO of industrial marketing firm, Power PR that for 29 years has written and facilitated placement of editorial features in industrial and commercial trade magazines. The challenge, however, is defining success as it relates to repetition. “Often manufacturers get a message out a few times and then wonder why, with the ‘repetition,’ the phones are not ringing off the hook. That is because true repetition is a matter of volume. It is not 5 messages delivered, but rather 80, or better yet, 800. It’s relentless and repetitive over time.” As for media channels, tried-and-true industrial trade publications remain one of the best tools for reaching targeted industrial audiences. When objective third parties are quoted, this type of feature article coverage can be one of the most powerful, credible forms of marketing today. It is only this type of “real” content that causes a buying decision As trade magazines continue to greatly expand their online content, that influence is only increasing. For the generation that searches for much of its information online, these articles can get more “eyes” on them than ever before, often appearing at the top of organic search engine rankings. “Trade magazines are considered an authority and it is very powerful when they publish an article that in some way mentions a product or service or tells the story of an application that solved a serious problem,” says Elliott, noting that a well-executed volume-based campaign should be able to generate 55-80 feature articles about a company in a year. Sadly, there are not enough industrial content creators that focus solely on repetition of message in the world’s leading trade magazines,” adds Elliott.

18 | THE GOODS | WINTER 2019

“On top of that, very few have the background and understanding to write feature articles about complex manufacturing and engineering topics and boil it down to the primary benefits in a way that is easily understood.” According to Elliott, industrial firms are experiencing even more success by integrating articles and testimonials into social media, e-mail and web site campaigns. Combined, these efforts further increase the repetition of the message. “Without a chorus effect, no one trusts the message, and no one will believe it,” explains Mustard. “Unless the authorities in the industry are saying the exact same thing at the exact same time, it will not cut through in a world overloaded with too much messaging.” Mustard notes that there is a lot at stake for manufacturers, not only because of the benefit to the overall U.S. economy, but because being successful impacts the lives of owners, employees, suppliers and associated companies. “For industrial companies that make $2 million or $50 million, it’s not just about the company,” says Mustard. “It’s their life. It’s their mortgage. It’s their kids’ college. It’s all of the loyal and hard-working employees they care about.” “The only way that manufacturers and innovators can survive given the scarcity of attention from potential customers is to craft a simple, bold message and repeat it at every point of customer interaction,” he adds. “If you are not doing that, you are going backwards and depriving yourself – and others – of success.” Pre-sales of the Iconist, the Art and Science of Standing Out are available at Amazon.com and other outlets. For more information about Power PR call (310) 787-1940, email jwe@powerpr.com or visit www.powerpr.com.


Simplify SDS / Chemical Management with MSDSonline Solutions

The Kentucky Association of Manufacturers has partnered with VelocityEHS to offer KAM members a special discounted rate on VelocityEHS’ award-winning MSDSonline SDS / Chemical Management solutions. Cloud-based and mobile-enabled MSDSonline software is fast to implement and makes it easy to ensure employee safety and regulatory compliance by providing a centralized system for managing chemical hazards from anywhere. The popular MSDSonline HQ Account allows you to: Access the industry’s leading library of safety data sheets Provide employees with OSHA-required right-to-know access to your SDS inventory via computers, laptops, smartphones and tablets Get mobile access to chemical product and safety information, including offline access through a convenient mobile app Generate GHS-aligned workplace container labels Create compliant electronic backups of your SDS library Use robust chemical inventory tools, including barcoding, to track, manage and properly label the chemicals in your site-specific inventories — down to the storage location and container level, which can help simplify Tier II and other regulatory compliance reporting And more Visit https://www.msdsonline.com/pp/kentucky-association-of-manufacturers/ for more information.


KEEPING TABS ON TECHNOLOGY: Five Questions Every Manufacturing CEO Should Be Asking Their IT Team by matrix integration

Automation, artificial intelligence and IoT (internet of things) systems – they’re all part of manufacturing’s digital transformation. More than ever, today’s manufacturing leaders need to stay ahead of the technology that can make or break not just their businesses, but disrupt their entire industry. To celebrate our manufacturers, Matrix Integration, a strategic IT infrastructure partner for more than 1,000 organizations in Kentucky and beyond, is offering practical tips for companies. “Manufacturers’ data is becoming the most important asset to their businesses, so information, data communication, and data processing technologies have become powerful tools that span every element of the manufacturing enterprise, including just-intime delivery of raw materials, real time activities on the factory floor, shipping, marketing, and strategic planning,” said Reggie Gresham, vice president of sales and marketing at Matrix Integration. “To be successful in a data-driven industry is to be proactive with your technology – and if you’re not an IT expert, it means trusting your IT team and knowing the right questions to ask.”

20 | THE GOODS | WINTER 2019

Matrix Integration’s Top Five Questions Manufacturing Leaders Should Ask Their IT Team The questions below from the experts at Matrix Integration will help CEOs, owners and other manufacturing leaders stay ahead of key issues, from strategy and efficiency to security and disaster recovery. 1. Is our IT system aligned with our current business strategy to manufacture products with improved quality, functionality, and reduced time to market? Because technology is so integral to manufacturing and logistics today, it’s essential for leaders to discuss business strategy with the IT team to ensure that hardware, software and the integration of the two are supporting those initiatives. 2. Can using our own data help us get our products faster to market, allow for more informed decisions and give us a competitive advantage? This question gets to the issue of leveraging AI (artificial intelligence) and machine learning. Most companies have been collecting data for years. Can it be analyzed quickly, or does it take weeks or months? Are systems automated to continuously improve efficiency based on data?


3. Are we getting the maximum capacity out of our existing software? Often in the race to implement software and technology, systems don’t “play nice” with one another. In addition, companies don’t always utilize the software to its full potential. Leaders can work with others in the business, along with the IT team, to pinpoint bottlenecks and work on improving the overall experience of their internal and external software and processes. 4. What kind of visibility do we have into our system? A recent survey noted a 600-percent increase in the number of attacks against IoT devices, and IoT is just one piece of an increasingly complex manufacturing IT network. In the past, it could be difficult to get a quick snapshot of who’s on the network and what they’re doing. However, modern security infrastructure and software can now provide visibility and make this process as simple as checking a single screen to get an overview of network security.

5. How are we protecting our data? When a data center goes down, it’s a crisis for any company. For manufacturing and logistics, downtime can mean major lost revenue and fines. Whether data is housed on local servers or offsite in the cloud, the IT team needs to be able to walk leaders through the case of a major outage, whether it’s a power outage, a failed network server, or a malicious cyberattack. For more information on how manufacturing businesses can maximize their IT spend to stay ahead of the curve, contact Matrix Integration at 1-800-2641550 or visit the manufacturing section of the Matrix website.

Matrix Integration is a trusted information technology solutions provider that has been in business for 40 years. Winner of the 2019 Indiana Economic Development Center Small Business Impact Award, and the 2018 Indiana Women’s Business Enterprise of the Year, Matrix Integration continues to be recognized on numerous industry lists including Diversity Business Top Business, CRN Solution Provider 500, CRN Managed Service Provider Elite 150, CRN Women of the Channel, and CRN Tech Elite 250. Strategic partners include Hewlett Packard Enterprise, Aruba, Microsoft, Cisco Systems, Meraki, VMware, and Veeam. With multiple locations in Indiana and Kentucky, Matrix Integration works closely with businesses and institutions to provide professional services, networking, data center, collaboration, computing, and security.

Winter 2019 | The Goods | 21


Outsourcing Plasma Treatments for Surface Modification Carlo Chatman, Power PR

In manufacturing, plasma treatments are often utilized to solve problems that cannot be resolved other ways. Whether attempting to improve adhesion of dissimilar materials, depositing coatings, cleaning surfaces, applying a protective coating that repels water for example or biological fluids or enhancing surface wettability or functional coating, plasma treatments often add significant value to products. For many manufacturers, the application of plasmaapplied coatings and surface treatments can play a significant role in new product development. As a result, the industry is aggressively investigating and applying plasma to products that require a treatment step for cleaning and decontamination, surface conditioning or to promote adhesion. “Manufacturers are continuously looking for unique ways to technologically advance their products to be the market leader,” says Michael Barden of PVA TePla, a company that designs and manufactures plasma systems, provides surface modification research, and also serves as a contract processing center. “Often, the top tier products incorporate some form of advanced coating to functionalize the surface.” However, when manufacturers want plasma-treated parts or components without having to invest in inhouse equipment, the solution is to utilize a contract processor.

22 | THE GOODS | WINTER 2019

In this approach, parts are sent in, treated and returned within 1-2 days, or up to a week for larger volumes. For small or infrequent batches, this can lower the price per part significantly. The most common application for contract processing is to improve the bonding power of chemical adhesives, whether metal to plastic, silicon to glass, polymers to other polymers, biological content to microtiter plates and even bonding to PTFE. However, it also is used often to clean, activate, chemically graft and deposit a wide range of chemistries on the surface of parts or components. According to Barden, the companies that tend to opt for contract processing generally fall into two categories. The first has little or no experience with plasma treatments, but may have heard that it can resolve issues or add value to products. “For many customers, plasma is not the first thing they have tried, but they have read or heard ‘you may be able to use plasma’ to solve a specific problem,” explains Barden. “They have a target for their material or the chemistry, but very often they don’t know exactly how to get there. So, it can be somewhat experimental.”


When this is the case, the initial capital costs may be a deterrent. Even large manufacturers may opt to avoid purchasing equipment initially if the product is new, or a new version, and production quantities are unknown. The other type of inquires received are from companies where outsourcing is a core concept of their corporate philosophy. This could also be true for companies that want to develop the product, but only assemble and do final packaging in house, along with contract sub-assemblers. Plasma Treatments According to Barden, many contract processing projects involve using plasma to create a high-energy surface to resolve bonding issues with chemical adhesives. Plasma treatments are utilized to increase the surface free energy of the material to be bonded. When a substrate has a high surface energy, it tends to attract. For this reason, adhesives and other liquids often spread more easily across the surface. This wettability promotes superior adhesion. Adhesion promotion can be achieved by increasing the surface free energy through several mechanisms, including precision cleaning, chemically or physically modifying the surface, increasing surface area by roughening and primer coatings. The net effect is a tremendous improvement in bonding. In some cases, up to a 50 times bond strength improvement can be achieved. On the other hand, substrates that have a low surface energy, such as PTFE, are difficult to adhere to other materials without first selectively altering the surface to increase the free energy.

“When a surface is really hydrophobic, like Teflon, it’s very difficult to bond to it,” says Barden. “If you apply a liquid or adhesive, by nature it pools and will not spread effectively across the surface.” There are several plasma methods employed to increase surface energy, including physical and chemical plasmas along with PECVD coating surfaces. Silicon, another material widely used in the industry for its low surface energy, often it is utilized as an over-molding compound to protect electronic boards from extreme conditions. Unfortunately, the topography of a PCB means the silicone must bond to many types of materials, including polymers, metals, alloys, ceramics and the FR-4 board itself, all of which have unique surface energies and chemistries. Without proper adhesion, silicone can begin to delaminate, not only at the edges of the PCB board but also in the form of small air pockets on, or around, components. This can lead to moisture ingress and subsequent corrosion or electrical shorts. “In terms of surface energy, the best strategy is to deposit a thin film coating over everything so the silicone only has to bond to one surface energy,” says Barden. “A process using plasma can basically harmonize all of the many surfaces and turn it into one.” To accomplish this, PVA TePla has developed a specific process starting with a precision cleaning/surface activation treatment followed by the deposition of an inert chemical primer that serves as a tie layer for the over-molding and provides a uniform surface energy for the silicone to bond.

Winter 2019 | The Goods | 23


Expertise in Plasma Treatments Contract processors should ideally bring a combination of resources for plasma R&D and experience with many customer types in markets beyond medical devices. Working with a contract processor also has tremendous advantages when it comes to tapping into the years of technical expertise applying a variety of plasma treatments. This can often speed research and development efforts significantly. In many ways, the application of plasma is the domain of chemists and other scientists. Companies like PVA TePla, for example, have three Ph.D. scientists and surface, polymer, physical, bio and organic chemists, as well as engineers, plasma physicists and metallurgists on staff. “Because we see the similarities in the types of materials being treated, our experience allows us to develop and optimize custom proprietary processes quickly and efficiently, saving our customers significant time and money in the development phase of product development” says Barden. An extensive knowledge and experience manufacturing plasma equipment is also a plus, given that most contract processors just purchase equipment from global providers. However, with a background in plasma equipment manufacturer, the contract processor can provide critical insight on validation, production methods, fixturing, as well as hardware and software modifications. Examples include special hardware for batch processing, such as a mass flow controller, a different pump configuration or unique chamber sizes. Additional specifications for a process for electronic part, anti-static so when it comes out of the plasma because it’s an electron emitter, it can accumulate static;

24 | THE GOODS | WINTER 2019

Anti-static fans can be used to remove static on the parts when the chamber is opened. “Depending on the application and complexity, customers face strict industry requirements and often have unique product of processing requirements,” explains Barden. “Generally, we have existing solutions for most of the things, so usually that is not a concern. Even the way the parts are delivered to the contract processor, or how they are packaged and returned can be modified as needed. Parts can be sent in specific counts in bags or in specifically designed pre-loaded trays, for example. Once treated, the parts are typically packaged in polyethylene bags, but for customers with electronic devices like PCBs, antistatic bags can be specified to protect components from electrostatic discharge (ESD). The company operates nine plasma system lines. So, what happens is usually we can run through three jobs simultaneously. As for turnaround time, it depends on the quantity and complexity of the processing. However, it can be quite fast. A single batch can be completed in an hour, and large batches of, say, 1,500 parts can be treated and shipped within a day or two. For manufacturers interested in treating parts and components with plasma, but do not want to make the investment just yet, or require only small batches, outsourcing it to a qualified contract processor could be the solution they are seeking. For more information, contact PVA TePla America at 951-371-2500 or 800-527-5667, rayc@pvateplaamerica.com or visit www.pvateplaamerica.com.


Welcome to 'Unretirement': Most Older Americans Say They'll Keep Working “Gone are the days of retirement being seen an essential, defined life stage, where an employee could expect to work for a company long-term and be taken care after retiring,” said Christine Russell, senior manager of retirement and annuities at TD Ameritrade, in a statement. Long-term employment in a single job paying a pension in retirement has been long gone from the U.S. labor market for the majority of workers, but the idea of working in retirement is a growing trend, one advisors may want to consider when working with clients on their retirement savings. According to the Federal Reserve Bank of New York, workers 55 and older have constituted an increasing share of the labor force since 2000, reflecting not just the aging of the population but also the differences in labor force participation rates of younger and older workers — falling for the former and rising for the latter. A 2017 report from the U.S. Bureau of Labor Statistics (BLS) shows that about 40% of people ages 55 and older were working or actively looking for work in 2014, and the number “is expected to increase fastest” for people 65 and older. The Harris Poll of 2,000 adults ages 40 to 79 with at least $25,000 in investable assets found that 92% of the youngest cohort (40-59) plan to continue working for pay after retiring while 86% of those age 50-59 plan to do the same.

More than half (55%) of “unretirees” — the term covers all age groups — plan to continue working until the end of their lives. The percentages fell for older workers but remained above 50% even for those age 70 to 79. On average, those in their 40s and 50s plan to work 20 hours per week for pay after retiring, and those in their 70s plan to keep working 10 hours per week. Financial need wasn’t the primary reason unretirees gave for their plans to keep working in retirement. Roughly 70% cited staying sharp and not being bored. About 60% cited financial need. Three in 10 retirees said they lost their sense of identity when they stopped working. Whether those still working will be able to continue working in retirement is unknown, but the economy will likely need them because of changing demographics. A Harvard Business Review article published in September reports that people age 60 and over are projected to outnumber children under the age of 5 within the next year, and by 2025, 25% of workers in the U.S. are expected to be over the age of 55. That “same cohort of workers is the fastest growing in almost every country,” and “in the U.S., job vacancies have outnumbered job applicants since 2018."

Winter 2019 | The Goods | 25


The Importance of Using an Accurate Pharmaceutical Composition Analyzer to Provide Precision and Security by Del Williams

With one quick, nondestructive test, an accurate composition analyzer can provide the simultaneous analysis of the entire composition of the sample. Few industries require as much care for precision and security as the pharmaceutical industry. Every part of production and each end result must be made with the utmost accuracy and attention to detail. As measurement requirements become more precise, exceptional accuracy becomes critical because too much or too little of a substance can significantly affect the potency, effectiveness, and overall safety of a drug. Under the FDA, United States Pharmacopeia (USP), and Pharmaceutical Microbiology Manual (PMM), pharmaceuticals are required to meet strict health and safety regulations when it comes to toxicity, sterility, and shelf life. While pharmaceutical science is an increasingly exact industry, and the shelf-life of many products is closely monitored, impurities in a drug can have disastrous effects. As pharmaceuticals are developed, transported, and stored for an indeterminate amount of time, at any stage from manufacturer to the consumer these substances and products may develop impurities that make them unsafe for use.

26 | THE GOODS | WINTER 2019

Consequently, pharmaceuticals must be tested for impurities and changes in potency at each step to ensure that they continue to be safe for consumers. Such testing can provide pharmaceutical companies the security of knowing that their products are continuously monitored for precision, correct composition, safety and compliance. However, conducting frequent compositional analysis tests throughout the process or in the field has traditionally been difficult. In many cases, the primary barrier has been the expertise and time required to conduct such tests. Multiple sophisticated measurement devices such as for moisture measurement and other elements of composition analysis had to be operated by trained personnel who could properly calibrate the equipment. Many such tests also required meticulous sample preparation and disposal. Fortunately, a full range of composition analyzers from handheld to desktop and in-line are now available that can help to ensure that each product – every tablet or capsule – is safe to use and will work as intended.


“While composition analyzers are not new to the industry and their introduction helped to build momentum for the Process Analytical Technology (PAT) movement a decade ago, advanced units today allow even less-skilled personnel to take instant labquality tests,” says John Bogart, Managing Director of Kett US, a manufacturer of a full range of organic composition analyzers. With a single fast, nondestructive test, a composition analyzer can now furnish analysis of a sample’s whole composition at once. Such “point-and-measure” options enable multiple readings to be quickly taken at any stage of the process, as well as at loading docks, on trucks, at suppliers, or in bins, vats or vessels. Whether dealing in bulk, dose, tablets, capsules, gel, or liquid-based products, by simplifying the process, pharmaceutical manufacturers can increase the quality of their products from chemical receipt, formulation, and processing to end product manufacturing and distribution. The Many Benefits of Compositional Analysis In pharmaceutical manufacturing, determining a wide variety of compositional characteristics – such as the level of moisture, purity, or contaminants in raw inputs, in-process substances, and end products – can be essential to ensuring safety and compliance. Typically, pharmaceuticals require three primary tests including one that involves moisture. One test determines solid content for quality and for dosage quantification. Another test measures residual solvents, which are sometimes used in the chemistry of production; these need to be below a certain level to be “acceptable” for human consumption. A third test relates to blend homogeneity. When blending solids in a stream, it is necessary to ensure that the blend is sufficiently homogenous, so it is ready to move to the next processing step.

Composition meters can efficiently perform all three of these measurements in a single test. Full-spectrum units can perform not only these three analyses, but also a vital test measuring Active Pharmaceutical Ingredients (APIs). As such, frequent compositional analysis can help pharmaceutical products stay compliant when sold based on regulated moisture content. Moisture content is measured to get the solids content; and measuring the amount of solid in the dose is required to ensure that the patient receives the correct amount of API. It is also necessary to measure the level of purity/contaminants and other factors that can affect safety and product effectiveness. Prescribed percentages must be met in order to satisfy certain specifications, or the product/substance will not be accepted by the regulating agency. Simplifying Compositional Analysis Although traditional laboratory and online based moisture measurement techniques are useful in the right settings, they have lacked the simplicity and flexibility required for frequent spot checks. One common test is a Karl Fischer (KF) test. This procedure calls for chemical reagents to be added to the sample to separate the water from the remaining product. The water removed is then compared with the initial mass or volume. Samples are generally small, making the assumption that a large batch is homogenous. Also, since the chemical reagents need to be used, skilled personnel are required to determine the initial parameters, confirm that the system is properly calibrated and maintained and, at times, required to actually conduct the tests. Disposal of the reagents and waste can be subject to substantial documentation and costly handling.

Winter 2019 | The Goods | 27


Another test used is Loss on Drying, which measures the total material weight change after drying. However, such tests typically require a sample to be prepared and brought back to the lab. The test takes at least 15 minutes to several hours to perform, which is too slow when more immediate measurements are required. It also requires the sample to be altered or destroyed. Beyond this, there could be a number of additional primary tests required to determine other necessary characteristics, such as the level of purity or contaminants in a pharmaceutical substance or product. Each of these tests usually requires separate tools, procedures, and sample preparation. This requires not only skilled personnel but also extra time and labor for each separate measurement as well as the additional use of potentially very expensive product which is destroyed in these other tests. As a result, secondary test methods have typically been used to deliver faster results. This type of test uses an indirect method and a single conversion to achieve accurate results. Secondary measurement techniques are routinely accepted as equal to the gold standard method. Examples are speedometers, common infrared and liquid thermometers and most pressure gauges. If there is a disadvantage, it is that the instrument must first be calibrated to ensure accurate results. In some cases, calibration could only be performed by trained staff familiar with the equipment. In response, industry innovators have developed a simplified approach that allows even less-trained personnel to take portable, desktop, or in-line, instant composition analysis readings of pharmaceutical industry feedstock, in-process formulations, or end products as needed.

28 | THE GOODS | WINTER 2019

The approach involves devices that utilize NearInfrared (NIR) light, a highly accurate, non-contact, secondary measurement method that can deliver immediate, laboratory quality composition analysis readings.

In pharmaceutical manufacturing, determining a wide variety of compositional characteristics can be essential to ensuring safety and compliance.

“NIR composition analyzers allow very accurate, instant, simultaneous measurement of multiple organic components in solids and liquids without contact or sample preparation, so there is no product contamination when using handheld and inline/online models,� says Bogart. In addition, because the process is non-destructive, samples remain unaltered so they can be used for additional tests or put back into the product stream. Because no direct contact or sample alteration is required, particle size variation and unusual textures are not an issue. This can be important when used with a range of chemicals, formulations, or end products in different settings. According to Bogart, once a composition analyzer has been calibrated against lab or production standards for the components to be measured (moisture, purity, etc.) the calibrations can be good for the life of the instrument.


The is true as the instrument can be continuously verified against stored optical standards that provide full traceability to the original measurement method, and the calibrations are stored in different “channels” in the instrument.

Because accurate measurement is achieved without pre-processing the samples or waiting for lab results, this dramatically reduces the test cycle, enabling pharmaceutical manufacturers to focus on improving product quality and not on sampling and prep work.

“With a composition analyzer, a NIR light source is reflected off, or transmitted through the liquid or solid sample,” says Bogart. “Several organic components can be measured in single test when the light resonates with certain molecules and the analyzer measures the sample’s light absorbance values, its ‘optical fingerprint.’ This is combined with the calibrations stored in different analyzer ‘channels’ to instantly display multiple simultaneous.”

“The goal is for any staff member to be able to successfully use a composition analyzer whenever and wherever it is needed, with minimal required training,” says Bogart. “This allows the pharmaceutical industry to be certain that products are of the highest quality.”

This means that when the sample’s compositional accuracy is being tested anywhere within the production process, from manufacturing to distributing, a composition analyzer is able to provide fast information for verification or validation of “release specs”.

“The key is to cost-effectively be able to conduct as much testing as required, with full confidence in the results, each and every time,” adds Bogart. For more info, contact Kett: call 800-438-5388; email support@kett.com; or visit www.kett.com. Del Williams is a technical writer based in Torrance, California.

Winter 2019 | The Goods | 29


“Fire Fighting,” The Great Barrier to Improvement Gregory Head, AKA Continuous Improvement Specialist In most every organization there is some percentage of time spent ‘fighting-fires’. We hear this on a regular basis from company leadership when they try to set aside time for Continuous Improvement activities. I would like to briefly address this potential ‘Great = Barrier to Improvement’ – fire-fighting. It is painfully obvious when an organization is firefighting rather than preventing fires. It is seen when a company has meeting after meeting attempting to focus on key performance indicators (KPI’s) and undone, non-executed activities that are central to success rather than forcing the team on proactive ways to improve the business. Most often managers become overwhelmed with the issues and seldom, if ever, target resources on improvement. We all know that the day-to-day activities are what pay the bills, so the challenge is, how do we turn such a large ship within an organization without losing sight of the ‘day to day’? Although there are myriads of opinions on this question, there is one specific endeavor that has been proven to work time and again, ‘Incremental Improvement’. These improvements can often be found within the framework of projects whose leadership is shared among team-members. A team of employees can incrementally improve any organization when provided the vision and resources necessary.

30 | THE GOODS | WINTER 2019

It has been said that ‘knowledge shows us how to do things while wisdom makes clear why we do it and provides the horsepower to get it done.’ Sadly, a vast majority of organizations are caught in the neverending loop of understanding how to solve problems while not executing the day-to-day processes that solve the problems. The goal should be to have a vision for the future and align all activity toward its attainment. This can only be done when employees understand the why of the process. Ultimately each employee, at every level, must have a grasp of why certain expectations and methodology have changed. They must be willing to be coached and mentored to understand, agree, and support the company’s goal. Until traction is achieved toward the company goal, internal office politics and power brokering struggles will undermine the efforts to make meaningful and lasting improvements. This can set the organization even farther back. It is not enough to simply send out an email or post banners, etc. Humans require face to face transformational encounters in order to consider how they will participate in something bigger than themselves. The vast majority of employees truly want to be a part of the solution and not part of the problem. They want to go home each day fulfilled.


It is the job of company leadership to engage, challenge, align, educate, and inspire their employees. Without these concepts the work culture will not change and fires will continue to consume the business. One of the ‘Great Barriers to Improvement’ within LEAN is underutilized employees. With 30 plus years of manufacturing under my belt, I see this on a daily basis. At AKA our vision is to come alongside company leadership coaching them on the floor. We encourage them to engage employees and be an example of and a sower of the seeds of Continuous Improvement.

In the book “Good to Great” by Jim Collins one theory is the “Flywheel”. It states, more power is required to get a flywheel moving but once in motion its inertia establishes a lesser need to be pushed’ Likewise, when the majority of your employees understand the ‘why’, the easier it will be to achieve and maintain Continuous Improvement within your company. Invest on the front end and the future will reveal just how easy it becomes to ‘prevent fires’ rather than fight them. Contact AKA’s Marketing Specialist at (270) 745-3370 or kurt.felten@wku.edu. We can help you navigate the needed changes to your fire-fighting in today’s work environment.

AKA is a statewide, not-for-profit partnership who provides assistance and training to help manufacturers of all sizes grow and improve! We are the affiliate of the U.S. Department of Commerce NIST Manufacturing Extension Partnership (MEP) Program for the State of Kentucky. AKA offers expertise, training, and facilitated planning to manufacturers in a whole myriad of areas such as business strategies, process improvement, business growth and cost reduction.

Winter 2019 | The Goods | 31


Kentucky Now Offers Additional Protections to Pregnant Workers By Katherine A. Garbarino, Fisher Phillips, LLP On April 9 of this year, Gov. Matt Bevin signed into law the Kentucky Pregnant Workers Act (PWA). The PWA, which took effect June 27, 2019, amends the Kentucky Civil Rights Act (KCRA) and applies to employers who have 15 or more employees within the Commonwealth for 20 or more weeks in the current or preceding calendar year. It also applies to any agent of an employer. Covered employers are required to provide reasonable accommodations to pregnant workers who have limitations related to pregnancy, childbirth or related medical conditions, unless doing so would impose an undue hardship. Examples of reasonable accommodations include: more frequent or longer breaks, time off to recover from childbirth, acquisition/modification of equipment, appropriate seating, temporary transfer to a less-strenuous or less-hazardous job, modified work schedules, job restructuring, light duty and a private space (other than a restroom) to express breast milk. Importantly, the PWA prohibits employers from requiring pregnant workers to take leave from work if another reasonable accommodation would allow the employee to continue working.

32 | THE GOODS | WINTER 2019

Similar to the federal Americans with Disabilities Act (ADA), the PWA requires employers and pregnant employees to engage in an interactive process to determine whether reasonable accommodation is possible and, if so, what the accommodation should be. This must be done promptly and in good faith when an employee requests accommodation. With respect to the issue of undue hardship, an employer should consider factors such as the duration of the requested accommodation, as well as its past practice of providing similar accommodations to nonpregnant employees. In other words, an employer may not deny a pregnant employee an accommodation it has provided to a similarly limited non-pregnant employee in the past, or that it is currently providing. Unfortunately for employers, there currently are no regulations accompanying the PWA that might offer guidance concerning the reasonable accommodation requirement. Covered employers were required to post a notice of employees’ PWA rights by June 27, 2019. An Equal Employment Opportunity poster that includes the required information is available for download (free of charge) from the Kentucky Chamber of Commerce website, https://www.kychamber.com/.


Employers were required to give current employees a separate written notice of their right to be free from discrimination on the basis of pregnancy, childbirth and related medical conditions, as well as their right to reasonable accommodation of such conditions, by July 27, 2019. All new employees must receive similar written notice of their PWA rights. As with the reasonable accommodation requirement, there currently is no detailed guidance regarding the required content of these notices. You may be wondering how the PWA compares to other employment laws. In 1978, the federal Pregnancy Discrimination Act amended the Civil Rights Act of 1964 to recognize pregnancy discrimination as a form of sex discrimination. It, too, applies to employers of 15 or more employees and requires employers to accommodate pregnant workers in the same manner they accommodate other employees with temporary limitations. To some extent these state and federal laws overlap, but the PWA provides additional protections. Additionally, both the ADA and the KCRA define a “qualified individual with a disability” as someone who, with or without reasonable accommodation, can perform the essential functions of the job the person holds or desires. The ADA covers women with pregnancy-related disabilities, but does not consider pregnancy itself a disability. The PWA requires reasonable accommodations for women who are limited by pregnancy, childbirth or a pregnancyrelated condition, but “limited” is undefined and lower than the ADA’s “disability” standard. Moreover, the PWA requires a greater range of “accommodations” than either the ADA or KCRA require for disabled persons.

An employee may be entitled to PWA leave even if she does not have a “serious health condition” within the Family and Medical Leave Act’s (FMLA) meaning. Unless the employee also satisfies the FMLA’s requirements, however, her PWA leave would not be treated or protected as FMLA leave. Another distinction exists between the PWA and the federal Fair Labor Standards Act (FLSA). The FLSA requires covered employers to provide lactation breaks to non-exempt employees, subject to undue hardship. The PWA requires such breaks for all covered employees, whether exempt or non-exempt. The PWA is a freshly sown minefield for employers. The PWA’s ambiguities, the lack of regulatory guidance and the interplay between the PWA and other federal and state laws are fertile ground for employer liability. Even the best of intentions guided by “common sense” could land an employer in hot water under this untested law. Unless you would like to be the first PWA “test case,” you should seek the assistance of experienced legal counsel when (if not before) you encounter your first PWA issue. 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).

Winter 2019 | The Goods | 33


You plan for harmful weather. What about ‘harmful humans?’ BY Advanced Risk Services

Is your facility facing one of these real-life threats below? Security consulting and risk mitigation firm Advanced Risk Services wouldn’t be surprised if you have, or will, grapple with one. That’s because such incidents have become more common among manufacturers in Kentucky, Ohio and other states, a pattern observed through ARS’ recent caseload.

At times, the following scenarios call for protective services. That may seem like the stuff of detective shows, but it has become real world among manufacturing floors, executive offices, warehouses and other settings, said ARS manager Jeremy Bates. The professional level of these services is critical to allaying, preventing or stopping incidents. This comes down to training, dependability, communication skills and other qualities, said Bates, an Armed Forces veteran working out of Prospect, Ky. “As one client said, ‘I hope I don’t have to call, but it’s great to know I have someone to call,’” said Bates, who has been especially busy with Kentucky and Ohio manufacturers.

34 | THE GOODS | WINTER 2019

Recent cases that escalated into the need for protective services include: Drug-test resistance – An HR team had been struggling with a difficult employee who needed drug testing. The team was highly concerned about asking the employee to complete the testing and wanted professional help nearby in case their request sparked a security incident. Threats made via social media, texts – ARS examines those posted on social media, sent by text or made over the phone to evaluate a best practice based on the situation and context. If called for, ARS will dispatch armed security along with surveillance on individuals of concern. The goal is to ensure the threat never materializes into an incident. Dispute with boyfriend – This scenario involved a female employee taking out an Emergency Protective Order against her boyfriend. Her concerns, and his threats, spilled from home into the workplace. The manufacturer needed a plan of action to ensure this domestic problem didn’t manifest into a violent incident.


High-risk terminations – Countless times a week, an employer is concerned with a risky termination for various reasons. Having someone in the room, or nearby, is comforting and sometimes necessary. For over-the-phone terminations, ARS is called in to retrieve laptops, phones, credit cards or other company items in a manner that’s professional and effective.

What of hidden or unknown threats? ARS recommends conducting a comprehensive, professional security assessment and penetration test to cover all bases, including personnel concerns.

Reductions in security personnel – ARS teams can offset reductions to a facility’s security personnel. This has becoming even more common, Bates said. ARS offers peace of mind if regular crews are shorthanded.

For more information, go to www.advancedriskservices.com or contact Jeremy Bates at Advanced Risk Services info@advancedriskservices.com or 502-558-2458.

Most facilities prepare for threats like bad weather, fires or explosions. But they often freeze in the face of harmful humans.

Winter 2019 | The Goods | 35


Can (and Should) Employers Make Decisions Based on a Person’s Potential Future Disability? By Paul Goatley, Fisher Phillips, LLP The Americans with Disabilities Act (“ADA”) prohibits employers from discriminating against employees based on their disabilities. The ADA expressly protects individuals who are or are regarded as disabled or who have a record of disability. Are people who are not currently disabled and do not have a record of disability – but are perceived as being at high risk of developing a disability in the future – protected under the ADA? That question is unresolved. Considering employers’ desires to reduce absenteeism, increase productivity and lower health insurance premiums, employers are motivated to hire the healthiest and fittest employees. Some employers may want to reject candidates who are smokers or are obese because they fear these conditions may lead to future health problems. Although Kentucky prohibits employment discrimination against smokers, no applicable federal or state law specifically protects an individual from employment decisions based on possible future disabilities associated with obesity. Making employment decisions based on potential future disabilities is, however, not without risk. The U.S. Equal Employment Opportunity Commission (EEOC) - the agency responsible for enforcing the ADA - takes the position that obesity constitutes an impairment that could be a disability for purposes of ADA coverage under some, but not all, circumstances.

36 | THE GOODS | WINTER 2019

The EEOC cautions employers (and has litigated the issue) to refrain from making employment decisions based on stereotypes, myths and biases about obesity, which arguably would include decisions based on assumptions regarding possible future disabilities. Not all federal courts agree with the EEOC’s guidance. Just last month, the United States Court of Appeals for the Seventh Circuit – which covers Illinois, Indiana and Wisconsin – found the ADA does not prohibit making employment decisions based on possible future impairments associated with current obesity. In Shell v. Burlington Northern Santa Fe Railway Company, Ronald Shell applied for an open machine operator position with Burlington Northern Santa Fe Railway Company (BNSF). Pursuant to company policy – because this was a safety-sensitive position – BNSF required Shell to undergo a physical examination. The examination revealed Shell had a body mass index of 47 – seven points higher than BNSF typically allows for a safetysensitive position. BNSF expressed concern that Shell’s obesity, although not currently a disability, would cause disabilities in the future (e.g., heart disease, diabetes and sleep apnea).


BNSF determined this possibility was too great a risk because a sudden onset of any of these conditions could be highly dangerous for a heavy machine operator. As a result, Shell was not selected for the position. Shell filed a disability discrimination lawsuit, claiming he was “disabled” under the ADA because BNSF “regarded him as” disabled. Shell argued that by refusing to hire him based on the risk of possible future disabilities, BNSF treated him as though he currently suffered from those conditions. The Seventh Circuit didn’t buy Shell’s argument, ruling the ADA does not protect employees who are not currently disabled from discrimination based on their potential future disability. The Court cited decisions from the United States Court of Appeals for the Eighth Circuit, where BNSF also had faced challenges for refusing to hire obese applicants due to the risk of future disability. The Eighth Circuit, like the Ninth and Tenth Circuits, has held that the statutory language of the ADA does not protect persons who are merely at risk of becoming disabled in the future.

Undoubtedly, the Seventh Circuit’s ruling is good news for employers in that jurisdiction. The EEOC, however, is unlikely to change its position regarding potential disability discrimination and remains free to enforce its position in any jurisdiction that has not expressly decided the ADA does not prohibit prospective disability discrimination. The Sixth Circuit, which covers Kentucky, is one such jurisdiction. To stay out of the EEOC’s crosshairs, employers in all jurisdictions may be well served by refraining from making employment decisions based on possible future disabilities. 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 the Louisville, Kentucky, office of Fisher Phillips at (502) 561-3990.

Winter 2019 | The Goods | 37


Debit is Preferred Payment for Millennials BY INFINTECH

New research from Visa indicates that fewer millennials are spending money they may not have by utilizing debit instead of credit. According to Visa’s report, millennials now use debit cards more than credit cards for the majority of their purchases. The report also showed the growth of debit card usage has outpaced that of credit cards. These numbers are likely reflective of millennial preference of inserting a card instead of paying with cash. It is also indicative of the growing payment technologies – like ApplePay or Venmo – which allow transfers of money with a smartphone app, cutting out using a card altogether. Millennials Drive Commerce Habits According to PYMNTs.com, millennials are among the most influential drivers of commerce today and in turn, payments. This group, who is usually between 23 and 38 years old, spends approximately $2,225 per year on retail purchases, which is about $830 more than baby boomers. According to a recent survey of more than 2,000 consumers, 45 percent preferred debit as their choice of payment. The study noted that 96 percent of all survey respondents reported making online purchases at least a few times per year, with 57 percent making an online purchase at least a few times per month.

38 | THE GOODS | WINTER 2019

Additionally, over one-fourth of those surveyed reported using a mobile app for order-ahead food purchases at least a few times a month, and twothirds reported using a streaming service like Netflix or Hulu. The study noted that 96 percent of all survey respondents reported making online purchases at least a few times per year, with 57 percent making an online purchase at least a few times per month. Additionally, over one-fourth of those surveyed reported using a mobile app for order-ahead food purchases at least a few times a month, and twothirds reported using a streaming service like Netflix or Hulu. In an age where data breaches dominate headlines, it may come as a surprise to learn that convenience trumps security for this age group. In fact, just one-inten of millennials feel unsafe using store credit or debit cards at the likes of Target or Walmart. Why Millennials Choose Debit In many ways, debit cards are millennials’ perfect balance between cash and credit. Debit cards mimic cash but have the ability and perceived security of credit cards. For millennials, debit remains a way to manage expenses properly — after all, you can only spend what’s in the account rather than run up lines of credit.


Profile for Kentucky Association of Manufacturers

The Goods (Winter 2019)  

The Goods (Winter 2019)  

Profile for kam2014