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        Business Strategy

        Simple Changes in Energy Management Can Have a Big Impact

        March 10, 2020

        by Grainger

        When you look for ways to enhance your profit margin, energy management is a logical place to begin making changes. Doing an energy audit or switching to energy-efficient lighting, two key steps in an energy management program, can have a significant impact on the bottom line.

        Yes, as the operator of a large facility or multiple large facilities, you will need to make an investment – perhaps substantial – to get the ball rolling on energy management, but the data compiled by the US Department of Energy’s Energy Star clearly indicates that the savings will be real and that you will begin to realize them in fairly short order. Energy Star notes, for example, that the average commercial building wastes 30% of the energy it consumes1.

        Understanding energy management strategies can help your business benefit fiscally, but it has other advantages as well. If you’ve not explored this area before, take time to review key property and behavioral changes that can boost your business’s profits, improve productivity and increase safety.

        Switching to LEDs

        One of the biggest ways to reap savings comes from small sources – your lighting. The newest generation of bulbs – light-emitting diodes or LED lighting – offers more bang for your buck than traditional lighting options, such as standard filament (incandescent), halogen and fluorescent strips. LED bulbs can last far longer than other lighting choices, with a range of 20,000 to 70,000 usage hours, while the average life span of incandescent bulbs is a diminutive 1,200 hours. LEDs also outdistance another energy-saving choice, the compact florescent lights (CFLs), by four to five times the life span.

        Fewer replacements means lower direct and indirect costs, as well as reduced hazard potential. When you switch to LED lighting, you’ll spend less money replacing bulbs, and you also won’t be bogged down with frequent, time-consuming production delays while new bulbs are installed.

        In many cases, the replacement of ceiling bulbs requires an aerial lift or extension ladder, which can contribute to numerous safety hazards. Limiting the number of times this operation is conducted by installing longer-lasting LED lighting certainly is an indirect but vital benefit to productivity and worker safety. Plus, since LED tube lights do not require a ballast the way fluorescent tube lighting does, maintenance of the fixtures is less costly.

        However, the biggest bonus is in the energy reduction. Not only do LEDs last longer, they use just a fraction of the energy (up to 80% less) of conventional lighting and throw off far less heat, which can reduce the need for cooling and air conditioning. Remember that halogen and incandescent bulbs produce light as a by-product of heat and release up to 90 percent of their energy as heat. LED bulbs, by contrast, provide light as their foremost function and release little heat. Switching to LED lighting means your organization can start seeing an almost immediate return on investment as monthly electric bills plummet.

        LED lighting has additional benefits that help it outperform other choices. For property areas that necessitate prompt lighting, LED provides the security of immediate bright lighting, unlike CFLs, which require time to reach full brightness. If full brightness isn’t required, a dimmer switch can be used on LED lighting, which is not an option for some lighting products.

        To add to their many cost-saving benefits, LEDs are more durable to shock, vibrations and temperature extremes than traditional lighting. The bulbs do not contain harmful mercury, which means LEDs are environmentally friendly. They spread light uniformly, come in a range of hues (from soft amber to bright white) and can be tailored to the location and user preference. These factors can increase worker productivity and property security. The low heat emitted by LEDs also makes them a safer option than traditional lighting.

        You won’t drop a bundle making the upgrade. If you’ve priced LED lighting in the past, you may be pleasantly surprised to find the price has significantly dropped in recent years. Bulbs that once cost $100 each have dropped to a fraction of that, with most standard LED bulbs in the range of $3 to $8. The lower price point means business owners now can retrofit the entire property with LED at a nominal cost. (The US Department of Energy has a run-down on options, complete with cost comparisons2.)

        Changing behaviors

        To make additional and meaningful cost reductions, look at your workforce. Profit improvements can be made by modifying behavior to be more energy efficient.

        Although behavioral changes aren’t as easy as replacing light bulbs, new habits can be learned over time, especially when they are embraced as a whole organization.

        Among ways to save costs and conserve energy are the following:

        • Perform routine maintenance on equipment, especially on HVAC systems
        • Install or use fans to assist HVAC systems
        • Reset the thermostat for weekends and after hours
        • Institute practices to keep vents clear and unobstructed
        • Inform employees which equipment can be shut off when not in use
        • Use laptops, as opposed to energy-hungry desktop computers
        • Make it a practice to turn lights off when areas are not in use, or install motion detector switches

        Whenever possible, select energy-efficient windows, appliances and equipment, such as those labeled as Energy Star®-certified. These products are designated to save significant energy and meet stringent industry requirements.

        For example, computer monitors that are Energy Star-certified are 25% more energy efficient than standard options. If you have an entire department using outdated monitors and computers that consume large amounts of energy, replacing them with efficient models might be an investment that pays for itself in a relatively short time.

        Conduct or commission an energy survey

        With your managerial and technical leaders, perform a survey of energy usage that considers areas such as industrial processes, refrigeration, HVAC and building controls. You also can commission an in-depth survey by an independent source.

        Monitor business energy consumption and try to avoid high usage during peak times, as your cost may be increased during these peak hours. Talk to your local utility companies about peak and off-peak programs and pricing. It may be worthwhile to run some heavy equipment later in the evening, when electrical rates are lower.

        Commitment

        Change starts at the top. Create a written statement of senior management’s commitment to energy conservation and its environmental impacts. Include strategies, such as procurement of equipment and procedures, which outline how energy-saving methods will be applied.

        Using tax credits, rebates

        Not all improvements need to be out-of-pocket costs, either. Businesses may find credits, grants or reimbursement options to help fund energy-efficient lighting, equipment or HVAC changes through various programs. Federal tax credits have been available previously for property owners making energy-efficient upgrades. Local utility rebates or state program options may be in place. Check the Federal Energy Incentive Program3 for a list of funding opportunities available in each state.

        Remember, embracing energy efficiency in your organization need not be a dramatic or costly investment. Even small steps, such as swapping out light bulbs, will make a difference that you’ll see reflected in your bottom line. And, as energy management practices are incorporated as a company goal with the support of corporate leaders, the benefits will only increase.

        References

        • https://www.energystar.gov/buildings/facility-owners-and-managers/existing-buildings/save-energy
        • https://www.energy.gov/energysaver/save-electricity-and-fuel/lighting-choices-save-you-money/led-lighting
        • https://www.energy.gov/eere/femp/state-energy-offices-and-organizations

        The information contained in this article is intended for general information purposes only and is based on information available as of the initial date of publication. No representation is made that the information or references are complete or remain current. This article is not a substitute for review of current applicable government regulations, industry standards or other standards specific to your business and/or activities and should not be construed as legal advice or opinion. Readers with specific questions should refer to the applicable standards or consult with an attorney.

        Grainger provides discounts to FSEA members in a variety of categories, including safety, material handling, power tools, motors and more. Visit www.fsea.com for more information or log into your Grainger account at www.grainger.com.

        Year-end Tax Planning Opportunities

        December 17, 2019

        By Michael J. Devereux II, CPA, CMP

        The Tax Cuts and Jobs Act of 2017 (Tax Reform) ushered in a host of new tax laws and incentives, and every finisher now has filed at least one tax return under the new tax regime. Many found new ways to defer or permanently reduce their tax bills, whether that be from enhanced expensing, larger tax credits or deferral of revenue to the 2019 tax year.

        The 2019 tax return filing season is right around the corner. As such, December is a time for year-end tax planning, whereby finishers will make significant decisions that impact the amount of tax they ultimately pay for the 2019 tax year.

        Tax planning can mean several things. Sometimes, companies can recognize permanent tax savings by utilizing tax incentives, such as the R&D tax credit, the IC-DISC or the work opportunity tax credit. Other times, tax planning is all about accelerating tax deductions and deferring the recognition of revenue. For many, it’s typically a combination of both.

        Moreover, tax planning is not done in a vacuum. Taxpayers must look at the current tax year, as well as future tax years, as some of the decisions a company considers are whether to accelerate or defer income from 2019 to 2020, or vice versa. So, when companies are reviewing tax-planning options, they should analyze two-year projections to ensure they understand what is being gained or missed.

        The following is meant to provide finishers with some ideas and tips as they embark on year-end tax planning.

        Immediate expensing

        Tax Reform improved two popular deductions that allow for accelerated depreciation – §179 and bonus depreciation. The §179 deduction limit was increased to $1,000,000 for 2018, and after being indexed for inflation, is $1,020,000 for the 2019 tax year. Moreover, additional assets were added to the definition of §179 property, including HVAC and security systems; and the §179 phase-out threshold now begins at $2,550,000 of eligible assets placed in service for tax year 2019.

        Tax Reform also increased the bonus depreciation percentage to 100%, retro-actively, for property placed in service after September 27, 2017 through December 31, 2022. Beginning in 2023, the bonus depreciation percentage is phased down by 20% each year, with the accelerated “bonus” depreciation phased-out by 2027.

        These changes will, inevitably, make cost segregations more valuable. A cost segregation allows taxpayers to analyze their plant and equipment to segregate the cost of real property, which is, generally, depreciable over a 39-year life, from personal property, which is likely to have shorter depreciable lives and qualify for one of the immediate expensing provisions. Taxpayers can “catch up” missed depreciation deductions.

        R&D tax credit

        R-and-D-tax-creditThe R&D tax credit is the tax incentive likely to have the biggest impact in reducing a finisher’s tax liability.

        The R&D tax credit rewards innovation. Finishers that are constantly developing new products or improving their processes may be engaging in activities that are eligible for the R&D tax credit.

        While IRC §41 (the code section governing the R&D tax credit) was not changed, the R&D tax credit’s value increased by 21.5% when Tax Reform reduced the top corporate tax rate.

        For finishers making the proper §280C election on an originally filed return (including extensions), the value of the credit was increased significantly. The §280C election percentage is equal to 100% minus the top corporate tax rate. When tax reform lowered the top corporate tax rate from 35% to 21%, the applicable percentage found in §280C went from 65% to 79%. As a result, finisher’s credits will be greater with the same level of research expenditures.

        Other credits and incentives

        In addition to the R&D tax credit, many other tax incentives are available to finishers. For instance, finishers that regularly export their products may find benefit with an Interest Charge – Domestic International Sales Corporation (IC-DISC), a way of reducing the federal tax liability related to the profits made on export sales. In addition, finishers hiring within specified targeted groups, such as food stamp recipients and qualified veterans, can qualify for the Work Opportunity Tax Credit (WOTC).

        Methods of accounting

        Tax Reform expanded upon the accounting methods available to small and medium-side taxpayers. Finishers with average annual gross receipts of less than $25 million over the prior three years may adopt a number of accounting methods that were not previously available to them. Those with less than $25 million of average gross receipts from the prior three years may change to the cash method of accounting, be exempt from the requirement to account for inventories, and exempt them from the UNICAP rules for tax years beginning after December 31, 2017. Each requires a separate accounting method change and some planning to ensure the change in method of accounting is done properly.

        IRC §199A flow-through deduction

        The Qualified Business Income Deduction in IRC §199A, which was enacted as part of Tax Reform, allows finishers a 20% deduction of Qualified Business Income to all non-corporate taxpayers (i.e., flow-through entities, such as S Corporations, Partnerships, and LLCs).

        Proper planning is important to be sure that finishers and their owners take full advantage of the new law. For instance, many finishers own their building in a separate entity and rent the plant to the operating business. Real estate entities may qualify for the deduction, but only if they are operating like a trade or business. That means no triple net leases, separate checking accounts, etc. Companies not operating like a trade or business may be considered an investment, and therefore, not eligible for the new deduction.

        While the aforementioned ideas are likely to be the most impactful for finishers, companies should evaluate what incentives, methods and structure are best for them, given their goals and fact patterns.

        Michael J. Devereux II, CPA, CMP, is a partner and director of Manufacturing, Distribution & Plastics Industry Services for Mueller Prost. Devereux’s primary focus is on tax incentives and succession planning for the manufacturing sector. He regularly speaks at manufacturing conferences around the country on tax issues facing the manufacturing sector. Devereux will be speaking at the FSEA•IADD Conference in April of 2020.

        Top Five New Year’s Resolutions for Businesses

        December 12, 2019

        Don’t stop at just personal resolutions for the new year – resolve to do something to benefit the business. Here is some inspiration:

        1. Hear here

        Curious about the podcast craze? There are podcasts to suit every individual and every industry. Find one that will inform or inspire, and start off the year with a new business resource.

        For a couple of sites that offer a slew of podcasts, visit https://player.fm/podcasts/business and https://www.iheart.com/podcast/.

        Player.fm includes podcasts, for instance, on machining, logistics (supply chain), printing and 3D printing, to mention just a few disciplines.

        Iheart.com is generally more entertainment-oriented than business-oriented, but it includes such podcasts as TED, NPR, The Journal (Wall Street Journal), Bloomberg News and Marketplace.

        Browse the menus on these sites until an interesting subject pops up or narrow it down by searching for a topic (“supply chain”) or an industry (“printing”).

        2. Sign up for a convention or tradeshow

        Spend a little time over the holidays to shop for a tradeshow or convention to attend in the spring, summer or fall.

        Just as every industry has a podcast, each business sector has a convention (or three). Paper manufacturing and printing? They’ve got Odyssey and PRINT. Plastics manufacturing? PLASTEC and ANTEC and the MAPP Benchmarking Conference. How about plastics decorating? ANTEC and InPrint and TopCon. Specialty coating and curing? InPrint and PRINT and the RadTech Meeting.

        Choose an event and then book it – now – before the resolution has a chance to get lost in the day-to-day demands when business resumes in January.

        3. Partner with a competitor

        Inc.com suggested this great resolution in an article last year, and it remains a timely idea.

        “There are definitely times when working with your competition can be mutually beneficial,” the article stated, “Commit to finding a way to partner with a competitor. Maybe you can join together to support a charitable cause. Or join together to create economies of scale. Or find ways to cross-sell.”

        The article urged businesses to, at the least, find ways to partner with complementary enterprises. Businesses that sell products, for example, might link up with companies that install or service those products. Service providers, on the other hand, might team up with businesses that offer bundled services.

        4. Give back to the community

        The uprinting.com blog offered this thoughtful resolution: “Donate cash or other resources to a charity or school that serves your community. Cash and other physical assets are great, but see if you are able to bring something else to the table.”

        Toyota has offered their strong efficiency skills as a donation to a New York soup kitchen and helped the organization streamline its operations – a gift that was more valuable than cash.

        5. Start on succession planning by getting some introductory training

        Forbes.com reports that, in a 2016 Family Business Survey, 40% of family-owned businesses didn’t have a succession plan, even while most of them did intend to pass company ownership to the next generation.

        A BusinessWest.com article offers this sage advice: “Many succession plans are not carefully planned out, or are devised as a result of a health event. A good succession plan is made when the owner can think rationally.” Great advice, but apparently rarely acted upon. Newport Beach, California-based attorney Jillyn Hess-Verdon laid out the real story in an Insurance Journal article. “They don’t want to think about it,” said Hess-Verdon, “Most of my clients spend more time planning a two-week vacation than they do the succession of a business.”

        Avoid falling into that trap. Succession planning resources are available in every state at colleges and universities, and via professional consultants. Resolve to stick a toe in the succession planning water by lining up support now for taking the big dive later.

        Kickstart 2020 with a business-oriented resolution and have a happy, healthy and prosperous new year.

        Can You Help Employees Save (Or Save More)?

        October 14, 2019

        By Joseph P. Trybula, CFP®, AIF®
        Printers 401K

        How realistic are employees about the true state of their retirement savings? While many among the three primary generations – millennials, Generation X and baby boomers – that make up today’s workforce are feeling pretty good about the future, all three may be seeing things a little optimistically.

        Even if their vision is a little rosy, there are things employers can do that may make a difference in retirement savings for Millennials, Generation Xers and Baby Boomers alike. Recently, Natixis Investment Managers checked in on about 1,000 US workers spread across the three generations to find out how they are feeling about their savings habits and their future financial prospects. These workers also were asked what incentives would help them start saving – or to save more.

        A quick summary, by generation:

        Millennials, the eldest of whom are now 38 and the youngest 23, have a great start on saving for the future. Forty-three percent of them express cautious optimism about being comfortable in retirement, although they admit they will need to be careful with their money. On average, millennials began saving at age 25 and have saved about $80,000 already. They estimate they will need a little over $980,000 to fund retirement, a figure the report says is a little low. And they should factor in their targeted retirement age of 61 to make sure their savings last long enough. Many among this group have already taken money out of their plan balances: 30% have taken a loan, and 26% took a withdrawal.

        Generation X is more financially worried than their younger coworkers. This group now ranges from 39-54, and just 18% of them believe they will have saved enough money to fund the retirement they want. Almost one-quarter (23%) of them believe they will never be able to retire. This group appreciates auto-escalation in their 401(k) plans, taking advantage of it at higher rates than their older and younger coworkers do. But, their belief that they will need $988,000 to retire is likely too low, especially considering they have fewer years to increase their current average savings of a little over $166,000.

        Baby boomers have a more realistic retirement savings goal, at $1,018,488 — but they have much less time to reach it from their current point of under $307,000. Currently 55 to 73 years old, their average contribution rate is 8.5%, and they are targeting, on average, a retirement age of 69. It will take about $142,000 in annual savings to reach their goal, on average. Among the 1,000 people participating in the 2019 Defined Contribution Plan Participant Survey, 700 participated in the plan available to them. When asked why they aren’t saving more, daily expenses were cited by 65% as the major barrier, followed by general debt at 43%. One sobering response to the question was “I’d rather spend money to enjoy life now,” cited by 25%.

        Of the 300 respondents who are not participating in their available plan, about one-third said their employer doesn’t offer a match or that the match isn’t enough. The match seems to be an important factor for those who are participating, too. Overall, 56% of respondents report that their employer’s matching contribution is the top reason they are saving in the plan.

        Learn more about the actions employers can take that employees say would encourage them to join the plan or save more by viewing the full report at https://tinyurl.com/Natixis-2019-DC.

        Contact Joseph Trybula at joe@printers401k.com or 800.307.0376.

        7 Steps to Turn Employee Potential into Performance

        September 12, 2019

        by Brad Wolff, managing partner
        PeopleMax

        Imagine coming to work on Monday to discover that the company’s meticulous, rule-following accountant and creative, eccentric marketing person have switched positions. How’s this likely to work out? In truth, some variation of this misalignment is common in most organizations. An employee alignment process puts the right people in the right seats.

        Understanding the alignment problem

        Most business leaders say that 80% of the work is done by only 20% of the workforce. The 20% are the top performers – and they usually produce three to four times more than the others. The main reason can be attributed to correct job alignment, rather than attitude or drive.

        Here’s evidence: It’s common for top performers to be moved or promoted … and then they become poor performers. Likewise, many poor performers become top performers when moved to appropriate roles.

        Bottom line: Everyone can be a top performer or a poor
        performer, depending on how well the work aligns with their innate characteristics.

        Putting employees in the right seats

        How can an organization be deliberately created to align an employees’ work with their innate characteristics (abilities)?

        1. Shift the mindset away from focusing on skills, experience and education.

        It’s common for people who are “great on paper” to get hired and become poor performers. In that same vein, many top performers started off lacking in the “required” skills experience and education. When people’s work aligns with their innate characteristics, they can utilize their natural abilities and unleash their passion for their work. Also, the best training system and management team will not turn poorly aligned employees into top performers.

        2. Select the right assessment tool.

        Many organizations use personality assessments in the hope of gaining more objective information about people to set them up for success. However, the results can be disappointing due to the following inherent pitfalls:

        • The traits typically thought of as “personality” are mostly surface-level, observable behaviors – not what’s underneath. The drivers of behavior are more accurate, predictive and stable.
        • Assessment-takers may provide different answers based on which of the following they consider: how they actually see themselves, how they believe others see them and how they want to see themselves.
        • Assessment-takers use a specific context or situation to answer the questions. For example, answers to questions related to “extroversion” (sociability and talkativeness) may vary depending on context differences (small vs. large groups, familiar vs. unfamiliar people, level of interest in the topic of conversation, etc.).
        • If an assessment is used for a job application, the applicant may have an opinion on what traits the employer is looking for and skew the answers accordingly.

        What’s a better option? Select an assessment that delves beneath the personality into what is more core or innate with people. This eliminates the biases of personality assessments and provides more valid and reliable data.

        3. Establish trust with the employees.

        Inform the employees about the company’s commitment to align their work with their natural gifts. Don’t hide things or surprise people. People want to do work they’re good at and enjoy.

        4. Develop an understanding of the innate characteristics being measured.

        Before people’s innate characteristics can be aligned with their work, it’s essential to understand what these characteristics mean. In other words, how does each one impact the way people think and behave. This provides the basis to identify which characteristics are needed for different types of positions within each organization.

        5. Develop clarity on the job duty breakdown.

        It’s important to know what people will do on a day-to-day basis in each job. The hiring team (direct manager and others with a major stake in each position’s success) meets to gain clarity on the percentage of time spent performing each job responsibility. Duties that are very similar in nature (family of duties) should be grouped together. Estimate the percentage of time spent working on each job duty family.

        6. Determine which innate characteristics are critical.

        The hiring team determines which innate characteristic is critical for each job duty family. The team also should agree on the desired range for each characteristic. For example, on a 1 to 10 scale, the range for creative thinking should be between 7 and 9 for certain positions. An optimal range should be developed for each critical characteristic.

        7. Administer assessments and align employees with job functions.

        Assess both current employees and potential new hires and then compare the results to the desired ranges. Take the appropriate action based on the strength of the level of alignment. Top performers almost always fit into desired ranges for each critical innate characteristic. If this is not the case, adjust the desired ranges based on the data.

        Other factors should be considered, including the following:

        • When current employees don’t align with their jobs, evaluate other positions within the company that do align well.
        • Openly discuss available options with employees who are misaligned. Develop a plan to shift roles or tweak job descriptions when this is feasible. Frequently, there are other employees who’d be thrilled to trade positions – or even some duties – that better match their own innate characteristics.
        • For applicants applying to open positions, only interview the people who align well with the desired innate characteristics. When people are interviewed who don’t align, there may be a temptation to discount the assessment results. This rarely ends well.

        In the end, the most important job of management is to maximize the return on investment of its workforce. Peter Drucker said, “The task of a manager is to make people’s strengths effective and their weaknesses irrelevant.”

        The most important thing a leader can do is to put people in a position to excel rather than get by or fail. How are you doing in your most important task?

        Brad Wolff specializes in workforce and personal optimization. He’s a speaker and author of People Problems? How to Create People Solutions for a Competitive Advantage. As the managing partner for Atlanta-based PeopleMax, Wolff specializes in
        helping companies maximize the potential and results of their people to make more money with less stress. His passion is empowering people to create the business success they desire, in a deep and lasting way. For more information, visit
        www.peoplemaximizers.com.

        Top Five Tips for Better Business Travel

        July 15, 2019

        Traveling for business, as opposed to vacation travel, has its own demands and quirks. On vacation, the schedule might be as loose as “we leave today and don’t have to be back at work for two weeks.” With business travel, schedules are tight. While a vacation can have plenty of flextime and changes of plans, business travel agendas must be followed. The whole point of vacation travel often is to slow down, unplug and relax. A business trip, however, is work, not play, and productivity must be maintained.

        Seasoned business travelers use a variety of methods to simplify and manage their trips. They streamline their preparations, organize their itineraries, perfect their luggage-packing technique, cut costs and shave dollars, make good use of travel time and accommodations, and maximize their productivity while on the go. Here are some useful tips from veteran business travelers.

        1. Time your departure.

        Minimize the impact of flight delays by choosing the best departure time. Avoid the last flight of the day because, if it’s canceled, that’s it until the next morning. With increasing extreme weather in many parts of the country – including the major airline hubs in Chicago, Atlanta, Dallas and Charlotte – the chance of weather-related delays is all too real. If on-time arrival is paramount, fly in the morning to have a large window of flying (and delay) time.

        2. Get some peace and quiet.

        Rather than attempting to work in a crowded, noisy terminal, take advantage of an airport lounge. Most lounges offer snacks and drinks, and many provide desk space, Wi-Fi and (blessed) quiet. Flyers don’t have to join a specific airline’s program to use lounges; services like LoungeBuddy and Priority Pass allow travelers to purchase one-time use or a membership.

        3. Sail through security checks

        OK, “sail” may be an overstatement. But travelers can reduce the time they spend waiting to be screened and scanned with a little recon and some understanding of human nature. Scope out the lines to see who is queued up, then avoid those lines full of older travelers and families heading for vacation with a passel of kids. Instead, get in line with the business travelers – the folks with laptops and sleek carry-on bags. Also, run counter to the human tendency to funnel to the right at security booths. While everyone zigs, zag to the left and see if the lines are shorter. (And, for a suggestion on how to really sail through the security checks for a nominal fee, see Brittany Willes’ suggestion below, in the Bonus tips.)

        4. Refuel in mid-air

        It’s not quite as dramatic as the aerial refueling done by jet fighters that hook up in mid-air with their tanker fuel suppliers, but portable chargers for phones and tablets can be lifesavers for gadget-dependent travelers. While the highest-capacity chargers are fine for use on the ground, airlines have restrictions on what can be used in plane cabins. Check airline rules for the maximum power allowed (in watthours, Wh) and be sure to purchase a charger that has its Wh clearly displayed.

        5. Stretch the food budget

        Rather than eating out for breakfast, lunch and dinner, make use of that little hotel refrigerator. Eat healthier and cheaper by making a grocery store run en route to the hotel. Stock the fridge with things like juices, hard-boiled eggs, sandwich makings, fruit and vegetable trays. One savvy traveler suggests buying a rotisserie chicken for a versatile protein source. For those with food restrictions, mimic the contents in the home fridge, and include whatever is nutritious, tasty and “grab and eat” easy for light meals and snacks.


        Bonus Tips from the Intrepid Travelers at Peterson Publications

        1. Dianna Brodine, operations director at Peterson Publications, offers this smart tip for staying organized: Keep a trip folder.

        “I make all travel plans at the same time – airline tix, hotel registration and car parking reservations (and car rental, if needed) – and then keep copies of all the registration info in one folder,” said Brodine. “Then, as more information comes in about meetings I need to attend, people I want to make sure to connect with or event schedules, I put it all in that folder. I had one situation where my digital files were wiped out prior to a trip … and since then, I’m a firm believer in paper backups.”

        2. Company owners Jeff and Gayla Peterson, fresh from a flurry of trips to tradeshows and conventions, share this pre-trip advice: Compare the time/cost tradeoff of flying vs. driving.

        “Analyze your trip to determine if flying is really your best option,” suggested the Petersons. “Will you need a car on your trip? What is the driving distance? Will there be flight layovers along the way?”

        “If your drive time is within five to six hours, consider driving rather than flying,” they said. “When you add up the time required to arrive early at the airport, wait for the plane, and then collect luggage at baggage claim and retrieve a rental car, driving may be a better option.”

        3. Peterson Publications Assistant Editor Brittany Willes swears by the value of investing in TSA PreCheck®.

        “Everyone knows that airport security can be a nightmare to get through – especially when you’re in a hurry to catch a flight,” Willes said. “It could be worth your while to invest in TSA PreCheck®, which allows most travelers to get through security in roughly five minutes. It also means not having to remove shoes, jackets, electronics or liquids while going through the check point.”

        4. The Petersons also suggest a method to ensure adjacent seating for traveling companions on flights with no seat assignments: Buy one upgraded boarding pass.

        The Petersons, who like to sit together on flights, pay an upgrade fee at the gate for one “first 15” boarding pass. (The upgrade pass available at the gate is distinct from other early and priority passes that are available.) The pass holder then can board with the earliest group, choose a location and “reserve” an adjacent seat for the other traveler, who boards with the remaining crush of passengers. Voila – two choice seats for the price of one upgrade!

        Happy trails.

        Trade Finishing: Change, Challenge and Opportunity

        March 11, 2019

        by Melissa Larson, contributing writer
        PostPress

        Keeping up with the changes in finishing is challenging, and finishers are approaching it with a variety of strategies. Due to the rapid advances in digital print, equipment requirements are accelerating. While finishers in the past have been able to simply update existing equipment to keep on pace, they now are confronted with new and innovative finishing equipment that manufacturers have been developing to help them, for example, incorporate UV, foil stamping and diecutting.

        These extensive capital investments must be carefully considered. As one finisher commented, “It is much more prudent to stay ahead of the curve than fall behind and have to catch up later.”

        While many finishers are taking a cautious approach to capital spending, others are getting aggressive: putting off retirement, doubling up on machines and even purchasing complementary businesses as they become available. We caught up with a few of these small-business trendsetters to ask them about their business outlook and plans for the future.

        2018 Gold Leaf Award Winner
        >>2018 Gold Leaf Award winning Folding Carton by FFI Diecutting, Embossing and Foil Stamping

        New to finishing

        Bob McNamara is president of Foam Fabricators Inc., Aurora, Colorado. FFI has added print finishing services within the last five years, adding to its core competence of custom foam solutions for protective packaging, medical applications and construction purposes. The company’s new services include foil stamping, embossing, diecutting, folding, gluing, kleen stick application, fugitive glue and laser diecutting.

        McNamara describes his biggest surprise in working with printers and others in the graphics arts industry. “Since we are the end of the food chain, printers want their project done yesterday. That makes it difficult to set up a production schedule with all the ongoing changes,” said McNamara, whose company does not do digital work in-house.

        “We have seen a large increase in carton foil stamping, mostly from the marijuana business.”

        When asked where he sees the business going in one to two years, McNamara emphasized that his company is the new kid on the block.

        “We are evaluating at this time what our future needs will be concerning equipment. We are trying to get more utilization out of our present equipment before we start adding. At the present time, our goal is to improve our relationships with the printers so that they have confidence in our abilities.”

        Changes in business models

        We asked finishers about the changes they have seen in terms of jobs coming into their shops, especially the ratio of digitally printed vs. offset.

        “The majority of change that we have realized at Feiereisen, Inc. (Cedar Rapids, Iowa) would be on the digital side of our business,” said Greg Ortmann, president. “Sheet-fed offset work that printers send us still is 75% of our business, although digital jobs that we are seeing are increasing at a rapid pace. Our estimate is that over the next two years we will be looking at sheet-fed offset decreasing to 55% to 60% of our business, with the digital increasing. We have made large investments in shorter-run finishing equipment to fill this need as it transitions to digital.”

        “Large runs still are a large part of our daily output, especially in the diecutting, UV, foil stamping and folding and gluing, mainly on the packaging side of the business, as well as the presentation folder business,” Ortmann continued. “The digital runs are typically short runs that happen in higher volumes of jobs, with much more repeat in frequency.”

        Guy Dupree, president of Superior Graphic Finishing, Atlanta, Georgia, said, “We are seeing a fair amount of very nice foil stamped work, but we are seeing larger jobs in diecutting and packaging-type jobs coming from commercial printers.”

        Paul Adametz, owner of The Letterpress Shoppe, Pittsburgh, Pennsylvania, an experienced and outspoken observer of the finishing market, had this to say about change: “As with all finishers, we are seeing a lot more digitally printed projects and a lot of projects with variable data. Press sheets that are printed on certain digital presses create challenges for applying foil and glue. Years ago, the big challenge was getting foil to stick over varnish; today, there are a lot more coatings to be concerned about. We now have to ask customers during the quoting stage of a project if there is variable data (we upcharge variable projects) or coatings on the sheet.”

        Adametz also had a few things to say about turnaround time: “One of the biggest changes is the continued reduction in time to complete projects,” he said. “A foil stamping project used to be a two- to three-week turnaround when I started, in the late 1980s. Now we regularly have projects where we quote in the morning, have a die etched and shipped same-day and we run the next day. If we had a local supplier of dies, we would probably be doing same-day production. We do charge a premium for rush service. If we are going to hit home runs, we deserve home-run money.”

        Expanding through new services

        Our finishers also had an opportunity to comment on whether or not they have added any new services or new equipment in the last few years. For some, purchases extended beyond finishing equipment to include end-of-line machinery as well.

        “We have added more high-speed equipment like shrink wrapping, automatic tip on and inserting and case sealing,” said Dupree.

        “We continue to add machines to increase productivity: mostly duplicates of what we already have,” said Adametz. “With far more machines than employees, we usually have an open machine, so we can slip a rush order into our schedule without having to take another project off of a press.”

        “Feiereisen, Inc. always is adding new technology as it becomes available and is proven,” said Ortmann. “Over the last few years, we have added two new folding and gluing lines for packaging and presentation folders, as well as additional punching and mechanical binding equipment. In our UV coating department, we have added digital UV coating and an additional large-format UV coating press for spot and flood coating. In the foil stamping department, we have upgraded our large format foil stamping presses and have added digital foil stamping to our offerings.”

        “Another area that we are proud of is the R&D that we do in the specialty coatings that we offer,” he added. “We always are developing new ways to make the paper look and feel different, including glitter, scratch-off, raised, matte, thermochromic, glow-in-the-dark, textured coating and cast and cure coatings.”

        Adametz also related a story that illustrates the tendency of successful entrepreneurs to purchase complementary businesses – in this case, a business right next door.

        “Earlier this month, we purchased a paper cutter knife-sharpening business that was next door,” he confirmed. “The company sharpened cutter blades for several printers that we were not providing finishing services to, and we provide finishing services to printers that were using other sharpening services. This provides a lot of cross-marketing opportunity. The sharpening business also sold shop and bindery supplies in years past. We will begin rebuilding that business in the next few months.”

        Feiereisen
        >> Feiereisen, Inc. recently added digital UV coating and digital foil capabilities with a new MGI JETvarnish with iFoil. Pictured: Eric Olson (plant manager) and Jeremy Floyd (Lead Operator).

        What about the future?

        We asked our interviewees where they saw their businesses in one to two years. Did they anticipate adding new equipment or new services? Or sustaining business with current services and equipment?

        “With the rapid advances in finishing, we see ourselves investing in other new processes over the next few years,” said Ortmann. “We always have been a leader in print finishing and intend to maintain that philosophy in our business model over the next two, five, 10 years and beyond. One thing is certain – if you don’t change with the times, you will become obsolete and eventually die.”

        Dupree notes that his company always is looking for ways to make the operation more. “As we estimate projects, we look for opportunities in the jobs that we are not currently able to produce to see if it makes sense to explore new services. That’s what we did in the packaging area, and it has worked out very well for us,” he said.

        “Part of me wants to retire to South Carolina or Florida in one or two years,” said Adametz. “However, we are getting more than our share of the booming economy, so I intend to ride this wave while it lasts.”

        “We operate on a percentage-based budgeting system. Our capital expense budget category – everything equipment-related, including lease payments, new purchases and repair and maintenance – is 12%. I never purchase equipment that doesn’t fit into the budget, no matter how much work a customer is promising. We will continue to maintain and upgrade the machines that we have, but also plan to add another half-size foil stamper later this year or early next year. While I am carefully watching some of the digital technologies slowly work their way into finishing, I doubt that I will ever jump onto that treadmill.”

        During downturns, print professionals long for better times. Yet when there is an upturn, different and far more complicated issues and challenges present themselves. Adapt, expand, invest? It’s all in a day’s decision making for finishing executives.


        Skilled Workforce a Major Challenge

        Whether our finishers are grizzled veterans or relatively new to finishing, one challenge seems to be universal – finding experienced workers or finding employees to train.

        Dupree, whose company is based in Atlanta, said, “We have difficulty finding experienced employees and people to train.”

        McNamara, still a relative newcomer to finishing, commented that “finding experienced people to hire for the machines has been the biggest challenge. Nobody has apprentice programs in the US.” He operates in the Denver area, where it is a challenge to find any kind of skilled worker.

        Pittsburgh-based Adametz is blunt about this particular challenge to his business. “It’s a challenge dealing with younger members of the graphic arts community who just don’t know the basics,” he said. “Things like improperly placed crop marks, press sheets with no bleeds, improperly imposed press sheets, insufficient margins and production runs with no overs for set-up, spoilage and samples can cause a lot of stress and frustration.”

        The fact remains that the print and postpress industries remain chronically short of apprenticeships and other forms of practical training to replenish its rapidly thinning ranks of skilled workers. It’s a problem that print professionals have been complaining about for years – yet are doing remarkably little to solve.

        Finishers today are dealing with many more challenges than ever before, however, many of these challenges can turn into opportunities. Those who choose to invest and keep up with the changing landscape will not only survive but have the opportunity to thrive.

        One-on-One Meetings Matter More Than You Know

        March 11, 2019

        by Kate Zabriskie, president
        Business Training Works, Inc.

        There are only two of us in my department. Why should I bother with a formal meeting? We sit right across from each other.

        I tried meeting individually with my direct reports, but they had nothing to talk about. Besides, we’re all adults. We know what we’re supposed to be doing at work.

        I see my direct report about once a month, and that’s usually at a larger meeting or when we’re passing each other in the hallway. I have no idea what he does. At review time, I rely on other people to tell me.

        Without trying too hard, it’s easy for many managers to compile a long list of reasons not to meet with the people they supervise. But, guess what? The volume of reasons does not outweigh the value and importance of a regularly scheduled conversation with a direct report.

        Benefits of regular one-on-one meetings

        If used correctly, managers and employees can enjoy many benefits by meeting one on one.

        • Visible appreciation: Time is currency. If managers carve out time for their people and are prepared when they meet, they show they value their direct reports.
        • Better thinking: Regular one-on-one meetings give managers and employees space to step away from the urgent and immediate and to think more holistically and strategically about work, goals and development opportunities.
        • Stronger results: Accountability tends to improve when people have an opportunity or a requirement to report on their progress.

        The perfect one-on-one

        Once a manager has bought into the value of one-on-one meetings, the next step is to execute them in a way that works for the manager and the employee. Good one-on-one meetings are not one-size-fits-all activities. That said, there are a few guidelines that can make these meetings successful.

        1. Pick a schedule and stick to it. One-on-ones shouldn’t disappear from the calendar simply because something else suddenly comes up.
        2. Choose a frequency that makes sense. For some people, meeting once a month may be enough. For others, meeting weekly may be more appropriate. Every relationship is different. Furthermore, circumstances evolve. Depending on what’s happening inside and outside of the organization, an employee’s needs could change drastically. Meeting frequency should be evaluated at least annually.
        3. Follow a written agenda. Well-run meetings are not free-for-all conversations. They follow an agenda, just as any other good meeting does. A one-on-one meeting agenda might include such topics as current projects, progress on yearly development goals, workday challenges and so forth.
        4. Put employees in the driver’s seat by having them manage and document the agenda. As a manager, you may create the initial agenda format. But, once you do, your employees should take ownership of the documents associated with the scheduled meetings.

        Troubleshooting

        One-on-one meetings rarely go from nonexistent or dysfunctional to perfect overnight. For that reason, managers should prepare to overcome a variety of obstacles.

        Obstacle 1: Employees question the new meeting.
        Solution: Reduce the surprise factor.

        If a manager has never held one-on-one meetings, they might come as an unpleasant surprise to employees. To avoid feelings of uncertainty, confusion or worse, socialize the idea before loading the calendar with dates. “This year, I would like to focus more on individual development. Within the next week or two, please expect to see a meeting request from me on your calendar. I believe we will all benefit if I spend time with each of you individually at regularly scheduled intervals. How often we will meet will depend on each of your needs and what we decide together.”

        Obstacle 2: An employee doesn’t take charge of the meeting.
        Solution: Show them how.

        A good agenda can go a long way toward making the conversation flow. Although employees should have ultimate responsibility for keeping the agenda, this may take time. In the beginning, managers may have to model what they want to see. “For our first few meetings, I’ll prepare the agenda. Once we’ve found our groove, my plan is to turn it over to you to own. This means you’ll add to it between meetings and bring a copy for you and me when we meet.”

        Obstacle 3: An employee gives short or general answers to questions.
        Solution: Get specific.

        The more focused a manager’s questions are, the better the conversation tends to be. For example, instead of asking “what are you working on,” a manager might say, “tell me about the project that is going best right now and why that is.”

        Obstacle 4: An employee seems unresponsive.
        Solution: Leverage silence.

        When managers don’t get immediate feedback, they sometimes mistake silence for non-responsiveness. It’s important for managers to remember they already know the questions. The employee is hearing them for the first time and may need some time to digest and think about what’s being asked. Instead of rephrasing questions that don’t produce an immediate answer, managers need to get comfortable with letting silence sit in the room.

        Reevaluate

        Like anything, one-on-one meetings can get stale. It’s important to look at the format and frequency from time to time and to solicit feedback regarding what’s working and what isn’t. If the organization has fallen out of the habit of holding regular one-on-one meetings or if employees are not getting all they could from them, now is the time to take another look.

        Kate Zabriskie is the president of Business Training Works, Inc., a Maryland-based talent development firm. She and her team help businesses establish customer service strategies and train their people to live up to what’s promised. For more information, visit www.businesstrainingworks.com.

        Evaluate Your Company’s 401(k) for Optimal Success

        December 28, 2018

        by Joseph P. Trybula, CFP®, AIF
        Printers 401k

        Employers face a daunting challenge: attracting and retaining the right talent necessary to drive their businesses forward. At the same time, they likely feel a responsibility to help employees reach retirement financially prepared. A 401(k) plan can help manage both of these goals.

        Keeping an eye on the latest trends and tactics in the 401(k) arena is one way that employers can offer a competitive plan. Below is insight across a wide variety of companies and industries on contributions, investments, fees and fiduciary responsibilities that can help in evaluating individual companies’ plans.

        Contributions

        How many employees are contributing?

        • In 2017, 79.3% of participants made contributions to their plans, up from 78.5% in the prior year. If their plan participation rate is less than overall or similar industry benchmarks, then companies should review their plan design options and develop a strategy to increase participation. If your plan exceeds benchmarks, consider what features might drive even higher participation.
        • 74% of organizations offer a matching contribution to participant accounts – with an average contribution/deferral rate among active participants of 7%. Plans that offer an employer contribution are more attractive to both prospective and existing employees, which helps recruiting and retention efforts. Matching Benchmarks: Based on first 6% of salary contributed:
          • More than 100% match: 7.9%
          • 100% match: 12.1%
          • 51-99% match: 33.8%
          • 50% match: 22.1%
          • Less than 50% match: 17.5%
        • 41% of plans now automatically enroll eligible employees. Automatic enrollment may be the most direct way to increase plan participation. It also may help extend participation among more junior employees that might otherwise fail to enroll.
        • Why is plan participation important? Each year, 401(k) plans must pass a series of compliance tests to ensure that the company owners and key personnel are not benefitting disproportionately compared to lower-paid employees. To pass these tests, plan metrics must fall within certain mathematical limits.

        If a company happens to receive failing results, they may need to act quickly to take corrective action to maintain the tax-qualified status of their plan. These actions may include making taxable distributions to highly compensated employees (HCEs) or making additional employer contributions for other employees.

        Investments

        Just where is the money going?

        • Plans offered an average of 22.8 investment options to participants, with participants holding an average of 5.7 investment options within their plans. This number has remained relatively steady over the past three years.
        • 92% of plans offered mutual funds, and 71% of plans offered domestic equity index options.

        Fees

        What are participants actually paying in fees?

        • 82% of plans annually review administrative costs and fees
        • 63% calculated the actual fees the plan paid to its adviser
        • 39% of companies have between 76 and 150 basis points as the average asset-weighted expense ratio of all investment options in the plan.
        • The average plan is wasting 25 basis points of participants’ money per year and some are wasting in excess of 1%.

        As a plan fiduciary, employers have a responsibility to ensure that the services provided to the plan are necessary and that the cost of those services is reasonable. To fulfill that important duty, employers need to make sure they understand the types of fees charged for their plan.

        Fiduciary

        • 37% of plans state their plan adviser is a fiduciary to their plan.

        Selecting an investment professional to help with retirement plans is an important fiduciary matter – it’s crucial to understand the types of professionals available and how to choose the best one.

        • 28% of plans did not have an investment committee.

        No one likes to go it alone, especially when “it” is the oversight of an employer-sponsored retirement plan.

        The fiduciary rules, regulations and the responsibilities to employees can be enormous burdens. Employers want to be in compliance, and they want to provide a plan that meets the goals and objectives set forth so employees can adequately prepare for the future.

        Keep in mind the Employee Retirement Income Security Act’s (ERISA) original intent for retirement plans was for plans to be run by experts. Delegating administration and investment responsibility to outside experts insulates a plan sponsor from both liability and responsibility. The delegation of administrative and investment fiduciary duties to fiduciaries that accept them in writing can offer real value and peace of mind for plan sponsors.

        The Printers 401k® Success by Design Program is a collaboration of 401(k) specialists who assume specific fiduciary duties for plans. The solution is designed to fulfill fiduciary obligations, allowing employers to continue serving as the plan sponsor without the liability and responsibility. Participants see reduced risk and work, lowered liability and plan cost, and improved plan operations and investments. Learn more at www.printers401k.com.

        The 3 P’s to Becoming an Engaged Healthcare Consumer

        December 28, 2018

        by Dr. Josh Luke, faculty member
        University of Southern California’s Sol Price School of Public Policy

        It is common for businesses or start-up made a major purchase only to find out later they overspent significantly. How often are they making this same mistake with healthcare? Moreover, it’s likely that employees are making this mistake every day, yet they may not even know they have an option. Unless the organization takes ownership of educating its workforce, it’s likely employees will continue to overspend. And remember, if they are overspending their own money, multiply that by three or four times for its financial impact on the company. For example, a simple surgery can cost the company $30,000 to $40,000 more if the employee does not choose a center of excellence.

        It’s very common that one hospital will charge 60% more for the same procedure as a competing hospital, often located directly across the street. To confuse this process even further, the same doctor will operate at either of these hospitals? This is what happens when people are led to believe “insurance will pay for it.” These are the six words that killed American healthcare.

        Insurance will not pay for it

        When buying a new car, do customers compare features and price? When buying a house, do they shop neighborhoods, school districts and number of bedrooms? Of course they do. Why don’t they do the same when it comes to personal health? Why are Americans afraid to ask a doctor for a second opinion – or even an alternative – when a high-cost procedure is recommended?

        Well, the short answer is that they have been led to believe that insurance will cover the costs, so it’s not important. They don’t monitor which facility they choose, and they don’t question recommended procedures. But that’s dead wrong. Each time an employee chooses a higher-cost provider, that cost is added in some form to the following year’s premium cost to the company – which, in turn, is passed on to the employees. Year after year. It’s inflation by design! Not the company’s design, but by the hospitals, insurers and pharma companies (among others) that benefit from constantly increasing prices.

        Become an EHC

        It is critical that individuals become engaged healthcare consumers (EHCs) How? Start by focusing on the three P’s: plan, prevent and personalize. Create a strategy that focuses on preventive care, as well as personalized care.

        P #1 – Have a plan: The first P is to take control of individual health by creating a healthy living plan. That plan includes dietary goals as well as fitness and lifestyle habits. Also, for those who suffer from a condition or chronic disease that impacts their health, their plan should include specialized steps to specifically address those needs as well. Plans also should include several personalized and preventive medicine steps.

        Update the plan at least annually, but daily monitoring and tracking of diet and fitness habits are critical in shaping this plan as well. There are plenty of tools available via mobile phone applications to track both diet and fitness. Also, research mobile applications available to support management efforts for any chronic diseases, such as diabetes or hypertension.

        P #2 – Personalized medicine tactics: A number of personalized medicine tactics should be considered, including DNA testing and genome sequencing, as well as functional and integrative medicine tactics. The more people can learn about how their body differs from others, how their body metabolizes medication and food, and how their body reacts in general to different foods, exercises and lifestyle habits, the healthier they will be. Implement these tactics into the plan!

        P #3 – Preventive medicine tactics: The second key component of the plan is to utilize the tools, resources and technology available to assist in monitoring and improving health. From checking blood pressure to diabetic management to tracking exercise and dietary consumption, a healthy living plan is the first step in practicing preventive medicine tactics. It’s only a matter of years now before science will identify the exact medication that is best for each condition based on personal metabolism, known as polygenic risk scoring. At present, medicine is well on its way to that level of personalization, so utilize the tools currently available.

        To date, there has been little evidence suggesting any link between price and quality in healthcare. In fact, those doctors who engage in the discussion about fair pricing often are getting higher quality scores than the high-cost provider. The doctors and facilities that offer lower pricing and higher quality are known as centers of excellence, often referred to as within the narrow network. Once beginning the journey to becoming an engaged healthcare consumer, continue by shopping for healthcare centers of excellence. This will save significant dollars for both employees and employers.

        So, while corporate America has finally stepped up to lead the charge against hyperinflation in American healthcare, individuals can do their part by becoming engaged healthcare consumers. The tactics listed above are a simple start down the EHC path.

        Dr. Josh Luke is a celebrated speaker, award-winning futurist, a faculty member at the University of Southern California’s Sol Price School of Public Policy and the author of Health – Wealth: 9 Steps to Financial Recovery. Drawing on his experiences as a hospital CEO, Dr. Luke delivers engaging and entertaining keynotes that teach audiences simple concepts on how individuals and companies can save thousands on healthcare. For more information, visit www.DrJoshLuke.com.

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