Itac 2009 2010 biennial report


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Itac 2009 2010 biennial report

  1. 1. Helping New York CityManufacturing andTechnology BusinessesStart Up, Grow, and ThriveITAC REPORT, 2009 – 2010
  2. 2. Letter from ITAC’s President4,500 jobs and February 2011 Dear Friends,$1.0 billion in impact Our clients, small- and medium-sized New York City manufacturing andin the last five years technology firms, are our #1 priority. By helping them to streamline operations using lean and green manufacturing processes and toolsIn just the last two years and leveraging technology, ITAC enables them to maintain profitability(FY 2009 – 2010) ITAC and even grow while navigating this era of economic hardship.impact includes:* As we enter the second decade of the 21st century, ITAC is helping clients to seize the moment and grow into the opportunities of thel $525 million in impact future, creating more jobs for New Yorkers. With ITAC’s help, our clients created or retained 4,500 jobs and achieved $1 billion in sales, savings,l $271 million in and avoided investments over the last five years.* increased and retained sales This 2009 – 2010 Report presents a sampling of the highlights and suc- cesses New York City manufacturers and technology start-ups achievedl $74.5 million in during those two difficult years with ITAC’s help. And, this is not a one- reduced costs time accomplishment. For almost 25 years, New York City’s industrial businesses have benefited from ITAC’s consulting and training solutions.l $74.7 million in new investment As a Manufacturing Extension Partnership (MEP) Center, ITAC is part of a national network — underwritten by the U.S. Department ofl 2,166 new and Commerce’s National Institute for Standards and Technology (NIST) — retained jobs allowing us to draw on over 1,400 technical experts across the country.*As calculated using the New York State ITAC helps companies to start up faster, sustain profitability longer, and Foundation for Science, Technology and identify opportunities for ongoing growth. Innovation (NYSTAR) performance metric, This economy demanded that businesses eliminate all excess cost and based on independent, third-party client sur- vey data. NYSTAR designated ITAC the yet continue to deliver high quality products. ITAC helped businesses to Regional Technology Development Center prosper by creating customized solutions to meet these needs. (RTDC) for New York City. Technology is pivotal with those next generation companies that could easily founder in a down economy, but are essential to drive the coun- try’s economic acceleration and job creation. ITAC staff and programsClients by borough (such as Kaufmann FastTrac®) and resource network (like the Staten Island/Other 8% Manhattan 31% Entrepreneur-in-Residence and Manufacturer-In-Residence) ensured Bronx 13% that these entrepreneurs received the guidance, technical resources, and access to financial sources critical to commercialization. In project after project, ITAC’s Sustainable Business Program proved that reducing a company’s environmental footprint makes that company Queens 23% more competitive and improves its bottom line. It’s just smart business. Brooklyn 25% Like the businesses it serves, ITAC is changing to better serve its clients and communities in the years ahead. By April 2011, ITAC will move to a new location: 39 Broadway, New York, NY. Designed to meet ITAC’s unique requirements, this work environment will foster collaborationClients by number critical to serving clients well and be a hub for manufacturers and tech-of employees nology firms to meet and learn from one another. 100+ 12% 1 – 19 58% ITAC can only fulfill its goals with the generous support of its funders,50 – 99 9% resource network, partners, board of directors, friends, and community. Our entire staff is also directly responsible for ITAC’s success and ability to create jobs for New Yorkers. Thank you, everyone, and let us contin- ue to work together.20 – 49 21% Sincerely, Sara P. Garretson President, ITAC
  3. 3. l GROWTH SIGNS + DECAL CORP.ITAC helps companies grow l TRI COMPONENT PRODUCTS CORPORATIONfrom start-up to maturity to innovation Signs + Decal Corp. (Brooklyn, NY). Founded: 1972T l he chart to the right illustrates two curves. From market introduction to DELICIAS ANDINAS Employees: 22 exit, business and product life cycles typically distribute along a standard ITAC clients’ business and Tri Component The Challenge: Signs + Decal product life cycles Products Corporation Corp., a certified minority-ownedbell curve (red). ITAC aims to change the dynamics of this curve (blue). Delicias Andinas Food (Bronx, NY). Founded: 1967 business, manufactures architec- turalThe New York City businesses that ITAC serves are far from typical, and the Standard business and Corp. Employees: 75 signage product life cycle (Maspeth, NY). Founded: 1984 The Challenge: Tri Component for com-standard curve does not prove accurate for them. Most ITAC clients are Employees: 25 – 30 Products mercial, Corpora-family-owned enterprises, and many have been in business for generations. The Challenge: Delicias Andinas tion institu- Food Corp. tional,Each one began with a spark of an idea that led to commercialization success. is a minor- manufac- and tures ity-owned industrial The Khalfan family,ITAC helps companies to maintain product presence and relevance through motor company markets. Signs + Decal owners torquefaster start-up, rapid growth, quality improvement, lean manufacturing that manu- Babu and Tazzim Khalfan, a and Norman Sobato,Quality factures Control Manager, husband and wife team whoadoption, new product development, green and sustainable practices, trans- arepas Tri Component Products founded the company, want to l mission (ethnic transition its management tomarket expansion, and technology innovation. MAKERBOT Manuel Miranda, corn grid- President, parts. It is a leader in its field their four sons, and they sought and exports products to over dle cakes). Delicias Andinas ITAC’s help.ITAC knows the effectiveness of its client work because six to twelve months During a four-year time frame 25 countries. The Solution: In March 2010,after project completion, an independent third party surveys the client and ITAC helped Delicias Andinas over- Tri Component was struggling to Bre Pettis, Signs + Decal participated in Chief Executive Officer, come various business challenges. meet customer expectations, and ITAC’s Family Business Advisorcaptures quantifiable results: the number of jobs created or retained, MakerBot The company now wants to its facility layout and product workshop. Leveraging this jump-increased and/or retained sales, the total dollars saved through cost MakerBot expand its arepas product line workflow was inadequate to off point, Signs + Decal engaged meet 10 – 15 percent annual l Industries LLC and markets. ITAC on a four-part project:reduction and investments avoided, and new investments made. ITAC’s SOLLEGA The Solution: Delicias Andinas re- growth projections. Growth planning, operating (Brooklyn, NY). Founded: 2009 The Solution: ITAC worked withfunding is contingent on delivery of financial results. Employees: 10 tained ITAC (2009) to help with Tri Component to educate its staff agreement, exit strategy, and new product development to in- succession planning. The client The Challenge: MakerBot Indus- about the benefits of lean manu-These pages highlight five ITAC clients, briefly tell their stories and challenges, crease its arepa offerings and at- reported three significant out- tries LLC manufactures and dis- facturing, conducting two work- tract a larger market, resulting in comes: Reached a unified visionand describe how ITAC helped them to find a solution and move forward to Sollega, llc tributes open source 3-D printers four new arepa varieties. Next, shops — 5S (Sort, Straighten, of the companys future; gained (Brooklyn, NY). Founded: 2006 (Bronx, that fit on a desktop. MakerBot Shine, Standardize, Sustain) andgreater profitability, growth, and job creation. ITAC helped Delicias Andinas im- clarity about what needs to be Employees: 6 NY), a needed to identify a local and en- value stream mapping — that prove its recipe, tripling the done to achieve their growth and hanced supply chain and to com- helped to increase Tri Compo- The Challenge: Sollega, llc, an en- metal arepas’s shelf life to supermarket succession goals; and improvedGrowing companies create jobs for New Yorkers ergy-technology company head- stamp- mercialize a newer version of its 3-D printer. requirements and enabling place- nent’s efficiency by 65 percent and freed 25 percent of the interactions and decision- quartered at the New York ing ment in grocery stores. Delicias making dynamics among the University ACRE Incubator, manu- company, John Humphrey, The Solution: MakerBot worked Andinas then asked ITAC to help it the manufacturing floor for family members. President, Chief factures a solar panel mounting is now Technology Officer, with ITAC’s Manufacturer-in-Resi- build the capacity necessary to other uses. ITAC also helped Signs + Decal system that saves time and labor providing Sollega dence to accomplish these goals. meet the resulting increase in de- In total, Tri-Component reported reconfigure the company’s ac- and cuts installation costs. Made a price quote, and Mercury Air- By creating a parts list for the mand, including designing new 33 jobs created or retained and counting, administrative, and op- from recycled plastics, Sollega’s craft (Corning, NY) now manufac- new model, MakerBot could con- machinery to automate Delicias’s $17.4 million in impact.* erations areas to improve cash Instarack system is the ideal tures many of the Instarack duct a search for suppliers for its new manufacturing processes. flow, reduce costs, and stream- racking solution for commercial system’s parts. ITAC also helped next-generation 3-D printer. In total, Delicias Andinas reported line procedures. flat roof applications. Sollega Sollega to refine its business plan ITAC’s Manufacturer-in-Residence 19 jobs created or retained and In total, Signs + Decals reported wanted to investigate alternative also helped build relationships and introduced the company to $7.0 million impact.* 9 jobs created or retained and material suppliers and ramp up among MakerBot and local sup- seed-stage investors that pro- over $4.4 million in impact.* product testing. pliers, reducing travel time for vided significant capital for oper- MakerBot staff, freeing them for The Solution: Through its Entre- ations and expansion. In 2010 other activities, and lowering preneur- and Manufacturer-in- Sollega’s revenues were $750,000 production costs. Finally, ITAC Residence, ITAC introduced — up from 0 in 2009 — and suggested some minor adjust- Sollega to manufacturers in New are projected to reach $6 million ments to MakerBot’s lean produc- York State and New York City who for 2011. tion process that reduced could become part of Sollega’s production cycle time. supply chain. Dalton Industries *As calculated using the New York State Foundation for Science, Technology and Innovation (NYSTAR) This chart is for illustrative purposes only and does not represent quantitative information. performance metric, based on independent, third-party client survey data. IDEA START-UP INITIAL GROWTH MATURITY INNOVATION GROWTH
  4. 4. Financial Statement 2009 2010 Fiscal Years Income 2009 and 2010 Federal $1,343,698 $1,361,377 New York State $1,398,464 $1,152,155 New York City $587,443 $1,802,604 Program Revenue $1,037,296 $1,255,553 Private Sector $111,664 $90,741 Total Income $4,478,565 $5,662,430 Expenses Salaries $2,742,634 $3,351,138 Program – Non Personnel $1,600,652 $2,084,535 Administrative – Non Personnel $156,596 $198,838 Total Expenses $4,499,882 $5,634,511 Income Less Expenses $(21,317) $27,919 Board of Directors Timothy G. Noble (Chairman) Arthur Kressner Vice President Principal JP Morgan Chase & Co. Grid Connections, LLC Albert Mangels (Treasurer) Oliver Lednicer President Chairperson Lee Spring Company Manufacturers Association of Mal Schuster (Secretary) Central New York Sr. Project Manager Steven Masur, Esq. Pfizer Inc Managing Director Tony Cucci, CPA MasurLaw (Chairman of Audit Committee) Joseph McDermott Partner Executive Director Berdon LLP Consortium for Worker Education Timothy Greenfield Alexander Neuburger President President Gold Mobile Magic Novelty Co., Inc. Natalie Hurwitz Managing Director Ex Officio Sholom & Zuckerbrot Realty, LLC Robert W. Walsh Vicki R. Keenan Commissioner, Vice President New York City Department of Printing Industries Alliance Small Business Services Funders New York State Foundation for Science, Technology and Innovation (NYSTAR®)* US Department of Commerce, National Institute of Science and Technology Manufacturing Extension Partnership (NIST/MEP)*ITAC is the designated Regional Technology Development Center for NYSTAR®. Empire State Development Corporation – Environmental Services Unit New York City Council New York City Department of Small Business Services New York State Department of Labor/Workforce Development and Training Division New York State Energy Research and Development Authority (NYSERDA) l 39 Broadway, Suite 1110 l New York, NY 10006 l 212.809.3900 l