Boosting Profits and Reducing Costs: The Value Proposition of Prison Industriesfor Private Sector Manufacturers& Service Providers
BOOSTING PROFITS & REDUCING COSTS:THE VALUE PROPOSITION OF PRISON INDUSTRIES FOR PRIVATE SECTOR MANUFACTURERS & SERVICE PROVIDERS 202.455.6350
BillikenGroup.comContents• Who We Are• Important Definitions• What We Do• Where We Are• What You Provide• Financial Benefits• Why USA and Not Off-Shore• Facilities Currently Available• History of Prison Industries• Key Contacts
BillikenGroup.comWho We Are• Billiken Group is an international professional services firm established in 2010. One of our goals is to develop employment programs for correctional industries agencies. • We identify business opportunities that are mutually beneficial to private sector employers and prison industries agencies. • Our leadership team has managed successful prison workforce programs as well as international private sector companies.
BillikenGroup.comImportant DefinitionsPrison Industry: “any activity that rewards inmates with pay,privileges, or other benefits to create a product or service that hasvalue for a public or private client” George E. Sexton, RodMiller, and Victor J. Jacobsen. Operating Jail Industries: AResource Manual.
BillikenGroup.comWhat We Do• We handle all the logistics of establishing a manufacturing or service program. • Identifying factory locations. • Negotiating rates and fees. • Overseeing the build-out, tooling and factory production. • Conducting quality inspections. • And more.
BillikenGroup.comWhat We Do• We reduce your company’s labor and overhead expense.• We provide you with a choice • Total control to manage the operation • Let us manage the entire operation for you.• We provide total operational support through activation.• We can ship finished products to your customers from our US warehouse.
BillikenGroup.comWhere We Are• Billiken Group operates with a network of facilities in all 50 states.• This network of manufacturing facilities provides unsurpassed distribution and transportation advantages and savings to our clients.
BillikenGroup.comWhat You Provide• Management and basic items to support production of your products.• Equipment, tooling, fixtures and work instructions.• Raw material suppliers and working capital.• Technical support.
BillikenGroup.comFinancial Benefits• Billiken Group provides our clients with a single hourly loaded labor rate per inmate that is all-Inclusive for labor, facilities, and utilities. • No Healthcare Cost • No Cap and Trade • No Workers Comp (services only) • No Building Insurance • No HR Department Expense • No Maintenance (Building) • No Rent / Lease / Utilities Cost • No Sick / Vacation Cost
BillikenGroup.comFinancial Benefits• 24/7 Armed Security at no cost.• Up to 5 Years Fixed Labor Rate (service only).• An average of 300 potential employees on the waiting list at each location• Easy ramp up and ramp down during seasonal work.• Long term employees.
BillikenGroup.comWhy USA and Not Off-Shore• The costs of doing business off-shore continues to rise with increasing labor costs and other factors.• Skyrocketing freight costs from the rising costs of oil.• Our US locations provides a significant logistic advantage for high labor content manufacturing and services.
BillikenGroup.comSample List of Facilities• 30,000 SF facility• 30,000 SF Facility• 29,000 SF Facility• 4,146 SF Facility• 22,000 SF Facility with a 14,000 SF warehouse• 8,545 SF Facility with a 3,212 SF Inside Dock Area• 12,000 SF facility• We have alliance partners with over 120 facilities nationwide that can be available based on the number of inmates employed.
BillikenGroup.comHistory of Prison Industries• Prison Industry was created during the Industrial Era (1890-1935)• Based on the ideology of strong principles and rehabilitation • Indeterminate Sentencing • Parole • Trade Training • Education • Primary Reformation over Punishment
BillikenGroup.comHistory of Prison IndustriesThe six systems of inmate labor used in the twentieth century:• Contract system – Private business paid to use inmate labor. They provided raw materials and supervised the manufacturing process inside prison facilities.• Piece-price system – Goods were produced for private businesses under the supervision of prison authorities. Prisons were paid according to the number and quality of the goods manufactured.• Lease system – Prisoners were taken to work sites under the supervision of armed guards. The private contractor employed them and maintained discipline.
BillikenGroup.comHistory of Prison IndustriesThe six systems of inmate labor used in the twentieth century:• Public-account system – this system eliminated the use of private contractors. Industries were entirely prison owned, and prison authorities managed the manufacturing process. Goods were sold on the free market.• Public-works system – Prisoners maintained roads and highways, cleaned public parks and recreational facilities. They also maintained and restored public buildings.• State-use system – Prisoners manufactured only goods that could be used by other state offices, or they provided labor to assist other state agencies.
BillikenGroup.comToday’s Reality• Prisons are overcrowded due to lack of funding to build new prisons.• We now have more people in prison per capita than any other country in the world.• Over 2 million people are behind bars.• Cost of incarceration per offender averages $30,000 annually.• Cost to build each cell averages $60,000.
BillikenGroup.comToday’s Reality• 50% of the State DOC inmates who will be released this year are likely to recidivate within 3 years.• 50% of men and women committed to DOC have not earned a diploma or GED.• The average reading level at intake is between 6th-8th grade.• Inmates drop out of public school because they were convicted of a crime, had academic or behavioral problems, or lost interest.
BillikenGroup.comThink About This Because 95% of offenders incarcerated in correctional facilities will eventually be released and living in our communities, with our families, children, friends and coworkers... THE Participates in Serves sentence without OFFENDER Prison Industries: productive work and job Develops self-esteem, self- training: Undergoes worth and job skills through little change while in meaningful work activities, prison/jail. thereby contributing to Languishes in cell successful reentry. passing idle time. WHICH NEIGHBOR DO YOU WANT? 2/3 REVERT 2/3 LAW-ABIDING TO A LIFE CITIZEN OF CRIME
BillikenGroup.comPurpose of Prison Industries Prison industries represent our one chance to instill responsibility,discipline, and a sense of accomplishment in those who need it most.
BillikenGroup.comMission of Prison IndustriesRehabilitative programs providing:• Specific work programs.• Structured training and employment.• Instilling transferable job skills.• A positive work ethic
BillikenGroup.comPrison Industries Represent• 50 States (includes Federal prison systems and local jail jurisdictions)• Annual Sales of $2.4 billion.• Encompass a total of 97 business units.• Employ 91,043 of inmates.• Products• Services• Prison Industry Enhancement (PIE) program• Reentry Services
BillikenGroup.comProducts Furniture Garments Upholstery Electronic Metal Products Signage Assembly Cable Office PanelMattresses Assembly / License Plates Systems Wire Harness
BillikenGroup.comServices Refurbishing / Remanufacturing Bindery Pick and Pack Order Call Centers Data Entry FulfillmentContract Labor Digitizing GIS / CADD Recycling
BillikenGroup.comBenefits of Prison Industries• An effective management tool for reducing inmate idleness, thus maintaining a safe and secure work environment for both staff and inmates• Provides inmate training with less supervision and at a lower cost than alternative programs
BillikenGroup.comBenefits of Prison Industries• Generate revenue dollars by investing back into the community through the purchase of raw materials, supplies, equipment and services from the private sector.• It is believed that the U.S. economy is strengthened by the participation of all able-bodied citizens, including inmates
BillikenGroup.comBenefits of Prison Industries• Operate as self-sustaining programs with little or no cost to taxpayers.• Provide a means for inmates to reimburse some of the costs of their incarceration.• Lower recidivism rates when compared to the general prison population.
BillikenGroup.comBenefits of Prison IndustriesSatisfy society’s mandate that inmates be put to work to pay back theirdebt to society by earning wages to pay fines, court costs and victims’restitution, and by sending money home to support their own families,rather than possibly relying on public assistance.
BillikenGroup.comWho Wins With Prison Industries• Society and our Communities• Correctional Administrators• Correctional Staff• Offenders and their Families• Local Business
BillikenGroup.comThink About This• This year, 800,000 inmates will be released from prison back into society. • If they can’t find work, or a home, or help, they are much more likely to commit crime and return to prison• America is the land of second chance • When the gates of the prison open, the path ahead should lead to a better life• Billiken Group provides that second chance
BillikenGroup.comKey ContactsAllan R. Lamberti Carlos R. CunhaFounder & CEO Executive DirectorAllan@BillikenGroup.com Carlos@BilllikenGroup.com203.537.9900 703.965.8848
BillikenGroup.comAcknowledgementsBackground information provided by the National CorrectionalIndustries Association: www.nationalcia.orgThe NCIA is an international nonprofit professional associationwhose members represent all 50 state correctional industryagencies, Federal Prison Industries, foreign correctional industryagencies and city/county jail industry programs.