RIMA News December 2018
Wishing You Success This Month...
Our job here at RIMA is to give you, the manufacturers, the ability and resources to continue and compete and grow among others in the industry. We are excited to share a number of upcoming events and stories with you!
Polaris Offering Six Sigma Training!

Polaris MEP is now offering Six Sigma Training. There are 4 flexible options to choose from:

Private or Semi Private Course- 40 hour blocks; a URI Condensed Corporate Course over one weekend; URI Day Course that spans one week; or a URI Night Course spanning 12 weeks.

Classroom training will result in a Six Sigma Yellow Belt if mastery of the concept is demonstrated. A Green Belt is earned after successful completion of a "project" by individuals or as pairs. The project is defined by applying the skills and techniques learned in the classroom to evaluate a real problem and determine the root cause and possible solutions
(or provide proof that the possible solution is not viable).

If interested, please contact Polaris MEP
at 401-270-8896 or http://polarismep.org/contact
Upcoming Events!

RIMA's Second Annual Manufacturing Awards Dinner January 24th, 2019
is just around the corner. 

This year RIMA is honoring Ron and Brad Boss the former owners of A.T.Cross and also recognizing the founder Alfonso T. Cross.
The event is scheduled
to be held at the
Squantum Association.
Keep checking our events page to keep updated on new events and upcoming registration information!
Did You Know??
Voice recognition software was one of the star attractions at this year's IMTS (International Manufacturing Technology Show). Early adopter and leading machine tool builder Makino already has voice control technology working on several machining center models
Where are we going next?
**** Member Spotlight ****
This Month's Member in the Spotlight...
25 Stamp Farm Road in Cranston, RI
AMC Design and Manufacturing has been servicing large manufacturing companies with the reverse engineering of consumable parts, custom design solutions, precision manufacturing of replacement parts and assemblies, and replacement parts inventories since 1971.

AMC s combination of exemplary customer service, OEM level quality and decades of manufacturing experience is unmatched.

Contact David Machado or Kurt Kern to schedule an appointment and begin experiencing the AMC difference.  

Call: 401-946-4090; dave@amc-dm.com ; kurt@amc-dm.com
National Association of Manufacturers News...
NAM: U.S. Economy Grew 3.5% in the Third Quarter, on Track for Roughly 3% Growth in 2018
The U.S. economy grew an annualized 3.5 percent in the third quarter. While this reflects some easing from the 4.2 percent growth rate in the second quarter, it continued to indicate solid expansion overall. Consumer and government purchases, along with robust spending on inventories, helped to buoy economic growth for the quarter, with notable drags from net exports and the housing market.
Moving forward, the current forecast for fourth quarter growth is 2.8 percent. Real GDP should grow roughly 3 percent in 2018, which would be the strongest growth rate since 2005, and growth in 2019 is predicted to be 2.5 percent.
In other news, manufacturing activity decelerated in both the Dallas and Richmond Federal Reserve Bank districts in November, but the outlook for the next six months remained quite positive.
Impact of Tax Reform
on Manufacturers

-     By Patricia Thompson, CPA, PFS, MST, Partner
Outlined below are the highlights of the federal Tax Reform changes (effective in 2018) that could affect manufacturers.
·     Corporate tax rate was reduced to 21% for C corporations. A provision was included for owners of partnerships and S corporations to take a 20% deduction on their individual income tax returns for eligible domestic business income generated in a trade or business;
·     Manufacturers with average annual gross receipts of less than $25 million no longer need to record inventory, and calculate UNICAP;
·     Bonus depreciation has been expanded to 100% for items purchased between 9/27/17 and 1/1/23;
·     Section 179, the maximum amount that can be expensed is increased to $1 million;
·     Business interest may be limited to business interest income, 30% of adjusted taxable income and floor plan financials interest for the year. Businesses with average annual gross receipts < $25 million are not subject to this limitation;
·     Tangible personal property is no longer eligible for like kind exchange treatment. Only real estate applies;
·     Investing in a qualified opportunity zone (QOZ) fund after the sale of capital assets will defer the taxability of the gain until 2026; 
·     Corporate Alternative Minimum Tax (AMT) was eliminated;
·     Research and development tax credit can be used to offset tax liability. Any expenses in connection with technological advances should be eligible for R&D credit;
·     Businesses owning foreign entities will face significant changes;
Please note that this is an overly simplified outline of some of the more significant changes of the TCJA. You can view the full article [ here]. To discuss how these changes may affect your situation contact your CPA or a Piccerelli Gilstein & Company tax professional at 401-831-0200.
Industry Week News
Veterans Training Program is Helping Plug Skills Gap
Military veterans and advanced manufacturing, they seem like a natural fit. Many former service members return to civilian life with technical prowess not easily acquired, while the well-publicized skills gap means that manufacturers are energetically engaged in finding employees with advanced technical skills, or who show an aptitude for developing them. Skilled trade positions such as electrical and maintenance technicians are the toughest to fill, she says. It takes about 13 months to find people for those opportunities who have the right skills and fit the company culture. The low employment rate in the U.S. doesn't help either.
Companies are Upskilling Workers in
Response to Job Automation
Research by Professor Daron Acemoglu (MIT Department of Economics) and Pascual Restrepo (Boston University), found that a gap between new technology adoption and the skills to use those technologies is likely to result in diminished productivity gain and inefficiencies. In fact, the survey found that 58% of companies say automation is not yet meeting executives’ desired goals of increased productivity.

 The recognition of ups-killing is already apparent with a recent Capgemini study showing that 29% of employees believe their skill set is redundant now or will be in the next 1-2 years, while 38% consider their skill set will be redundant in the next 4-5 years. Moreover, 47% of Generation Y and Z employees believe their current skill set will be redundant in the next 4-5 years.

The report concludes that “the main barrier to achieving these gains lies with the gap between executives and employees on attitudes towards automation. Organizations must start by making sure their leaders engage with their people, encouraging them to embark on the automation journey as true partners.”
Global Manufacturing News
Manufacturing Exits from China to Dodge US duties gains pace
With U.S. levies on $200 billion of Chinese products set to balloon to 25% in 2019, companies on the mainland making everything from car parts to cameras are lining up other production facilities
across Southeast Asia.

Lower-level manufacturing in China is attracting less investment and that process is being accelerated because of the trade dispute, Kerry Logistics Network Ltd. Chairman George Yeo said in an interview at the New Economy Forum. About a third of more than 430 American companies in China are considering moving production out of China, according to a survey in August and September.

A.T. Cross Company New Venture
Cross Liberty United
This powerful pen features recycled gun steel from confiscated guns taken off the street of America by police officers working with Liberty United. It features strong lines and operates using a satisfying slide and click open and close mechanism. Your purchase will help fund programs to stop gun violence in the USA. Liberty United donates 20% of profits to programs to protect, educate, and train at-risk children in partner communities across the country.
  • 20% of profits go to programs helping at-risk children
  • Top features an inset blackened disk of steel from a melted-down illegal gun
  • Clip features the serial number of a gun removed from circulation
U.S. Manufacturing News
Institute for Supply Management Index
A gauge of United States manufacturing rebounded in November as new orders picked up and companies added workers, indicating that factories remain relatively healthy in the fourth quarter.
The Institute for Supply Management index, from a survey that aims to capture manufacturing business conditions, increased to 59.3 from 57.7, data showed Monday. The rise from a six-month low also exceeded estimates in a Bloomberg survey calling for the gauge to edge down to 57.5. Readings above 50 indicate expansion
Small Business Index Survey U.S. Chamber of Commerce
  • Many small-business owners are having a tough time finding workers with the skills they need, forcing them and their employees to work longer hours and to put more money into staff training
  • About 40 percent of small-business owners say they have been actively searching for new hires throughout 2018
  • Instead of focusing on future growth and the development of their companies, most small-business owners, said they had to work longer hours or take on added roles to compensate for the inability to find qualified candidates.
Why Your Backup Might Not Be Good Enough
By Michael Rudnick

Everyone knows that backups are important. Most companies have at least a basic backup system in place, even if it’s just regularly backing up to a USB hard drive. But when your server goes down and staff can’t access your ERP system, Quickbooks, Sage, or other vital programs, a good backup may not be enough.

The Hidden Cost of Backups
Your company data is irreplaceable which is why backups are so important. But did you know that depending how much data you have, it might take DAYS to restore your data after a server crash? Data transfer speeds are limited, and with the wrong server backup, a full system restore can take several days.

Ask yourself : Who needs to access the server’s data and programs? Does your server host programs like your ERP system, QuickBooks or Sage? If the server is down, how many of your employees suddenly have little or no work they can do? How far behind will you get on your orders? How will new business come in?

Most importantly , if your server was down for a day, how much would it cost you in lost business and employee wages? If that question makes you nervous, you may need a Business Continuity device.

The Case for Business Continuity
A good backup system backs up your data. But that’s where it ends. Although your data is safe, you can’t use the backup if your server is down. A Business Continuity system goes well beyond what regular backups can do. It does everything a good backup device should do: store your backups (on- and off-site), run your backups on a set schedule, and allow for easy verification of your backups. But Business Continuity goes beyond that: if your server crashes, you can be back up and running in minutes, not days.
It does this by keeping a “virtual server” accessible to you. If your server goes down, your IT team can spin up the virtual server so everyone can access their data and programs. While your staff is working, your IT team can get your actual server back up and running.

How Much Will Downtime Cost You?
Knowing the cost of downtime is a key factor in determining the level of backup or Business Continuity you need. Some of our clients would barely miss a beat if their server went down for a day. Others could lose tens of thousands of dollars.
Backups are great but having the level of backup or Business Continuity that you need is best. Don’t let downtime cripple you.

I f you need help determining your downtime costs or are concerned about your backups, please contact RCC at (401) 272-9262 or go to www.RCC-pcSupport.com
R&D Technologies has 16 printers at their facility in Quonset Point, Rhode Island. GE calls 3D printing “the factory of the future” because 3D printing has the advantage of being able to print parts that cannot be made in a traditional manufacturing way.

R&D Technologies is also a partner in the Stratasys Global Manufacturing Network (GMN). There are 24 partners worldwide with only 6 in the United States and R&D is the only GMN in New England. As a partner in the GMN, R&D has access to over 300 printers in the United States, allowing R&D to print everything from plastic, carbon fiber to metal. Two of the biggest advantages in doing business with R&D are HIGH QUALITY and FAST TURNAROUND of parts. WWW.RND-TECH.COM
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