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December, 2006
From Our Family Business Issue
Community Report
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Manufacturing
Last month, we introduced HTR's MEP services. Now, let's visit some contemporary manufacturing issues. Recently, The Wall Street Journal carried a front-page article on the inroads being made by Chinese manufacturers into the global auto parts market. These companies are moving away from relying on low labor costs for competitive advantage, and are instead focusing on products that require higher levels of quality and innovation to produce. Virtually every Finger Lakes manufacturer must compete in this environment, either directly or indirectly through their OEM customers. And China is not the only source of this threat to the status quo; similar challenges come from India, Mexico, Brazil and even other parts of the U.S., as manufacturers seek to find and maintain a competitive edge. How can local manufacturers meet these threats and thrive? First, master the basics: Quality programs like ISO and Six Sigma are now assumed in well-run businesses. Lean Manufacturing techniques keep costs low and delivery times short. Effective IT systems enable responsive, efficient management of the enterprise. The requirement for a lasting source of advantage is an innovative culture combined with corporate strategies that can be harnessed to produce a reliable stream of new products and production processes. For some manufacturers, these skills have been required by the fast-changing nature of their markets, such as producers of computers and fashion clothing. Most companies, however, begin by offering a few successful products or processes to their customers and make small modifications to their lines as opportunities present themselves. HTR-MEP can help your manufacturing firm evaluate its needs for tactical and strategic improvements. We will work with you to define projects that answer these needs, identify subject matter experts to execute the projects, and obtain grant funding wherever possible. Call HTR-MEP at (585) 327-7921 to learn more.
HIGH TECH ROCHESTER
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The City
According to the U.S. Census Bureau, there are more than 2.5 million businesses with five employees or less, a great indicator that families operate most of them. Family operated businesses exist throughout the city and surrounding suburbs. This type of business, commonly called a "micro business," is a sign of a thriving neighborhood. Many of these businesses are located within residential neighborhoods and provide services that may be difficult to find in malls and plazas. Cultural products are a major portion of family-owned/operated businesses. Silk Creations Flower Shop is such a business. Created in 1988, it was and still is operated by family members. Floral arrangements are the staple product for the business; however, cultural products needed for a Latino/Hispanic celebration are its signature. Creativity and enthusiasm are necessary when operating a family-owned business. Becoming part of the community you serve is part of that enthusiasm. Involvement with neighboring businesses links and exposes one to services available to those operating within city limits. Such is the experience for Silk Creations. With the assistance provided by the Economic Development Department of the City of Rochester, Silk Creations has been able to acquire many services it would otherwise not been able to afford, including computer technology and marketing advising. The relationship with the city and having the proper qualifications assisted the business in acquiring a facade grant, which provided enhancement to the store front as well as new signage and lighting. Continuous communication with Economic Development staff allows the business to stay informed on what is available to small and family-owned businesses. Supporting family-owned businesses is a responsibility that should be shared by all, as large corporations are slowly extinguishing them. The products, services, and personal attention cannot be compared to that offered by large businesses. Family-owned businesses allow growth for individuals as well as the economy.
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Incentives
Through the first nine months of 2006, county-sponsored economic development programs approved incentives for 87 local projects. These projects will create 1,267 new jobs (within five years of project completion), retain 7,414 jobs, and invest $267,148,000 in Monroe County.
This includes the following:
● HF Technologies—76 new jobs. A manufacturer of components used primarily in business machines, HF Technologies is investing more than $1 million to close its Beijing, China manufacturing operation and relocate that work into expanded facilities in the City of Rochester.
● Current Communications—180 new jobs. CURRENT's new and expanded facility in Henrietta represents a $10 million investment in our community. CURRENT launched its business here in 2003 with two employees. The company's success is a powerful example of how nurturing and supporting small businesses can produce huge benefits for our region.
● Cryovac—50 new jobs. A leader in the food and consumer packaging industry, the company is investing $16.5 million to upgrade and expand its facility in Gates. Cryovac currently employs 120 people locally.
● Pictometry—20 new jobs. The rapidly growing visual information systems company is investing $10 million in its Monroe County operations. Pictometry currently employs 90 people here and over 120 nationwide.
In October, we announced that Getinge, the world's leading manufacturer of medical sterilization equipment, will invest $5 million to modernize and renovate its manufacturing and distribution facilities, which is also its U.S. headquarters, in Henrietta. The company is also constructing a surgical and infection control academy accessible to healthcare customers throughout the U.S. and Canada. As a result, 265 local jobs will be retained.
These projects demonstrate the momentum in our local economy and indicate that we continue to move in a positive direction. Our highly skilled workforce and competitive incentive programs continue to help fuel our success.
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 Digital Rochester Looks Ahead to 2007Join us for our annual celebration of Festivus, "a festival for the rest of us," on Tuesday, December 5 at Venu on St. Paul Street in the heart of downtown Rochester from 5:30-7:30 p.m. We'll have lots of food and drinks, as well as exciting prizes to bid on in our Chinese auction. In addition to celebrating the holidays, we'll also be celebrating another successful year at Digital Rochester, filled with events promoting the business technology community and entrepreneurial activity in the Greater Rochester area. Our popular Rising Stars series showcased executives from ICS Telecom, Brite Computers, Raytech, Optimax, Vanteon, and ePlus. Knowledge Upgrade enlightened us about Self-Care Technology in the spring, and we held our fall annual CIO Roundtable in the fall. Entrepreneurs & Angels introduced eight emerging technology and biomedical companies seeking financing to the Rochester community in March and November. We continued to support GRE with our annual Hot Links Golf Tournament, and collaborated with GRE for another Rochester-to-Rochester event connecting local companies to Rochester resources. We hope you were able to join us for monthly networking. We checked out new venues at The Keg and Saddle Ridge, as well as some of our favorite places at Max, RMSC, Village Gate, MCC, and RIT. We also held Technology Job Fairs in March and September, connecting hundreds of technology professionals to opportunities at local companies.
We're planning many events for 2007, including Rising Stars, Knowledge Upgrades, Tech Job Fairs, and Entrpreneurs & Angels, and, of course, networking. We've got several new events in the works, too. Check out our Website at digitalrochester.com, and mark your calendars for our next networking event on January 9 (a week later than usual, due to the holidays).
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Not Just a Moderator: Cluster OrganizationsIndustry clusters have been identified with many concepts. A significant concept is considered networking within a group that understands your problems and can relate how they were overcome. That is a great use of experience, but a bit of a point solution in many cases. In a time where the world is becoming flat and many business needs are becoming common across industry segments, looking to one's contemporaries could leave out the very people that could help you the most by providing the solution to your problem or, at the very least, an introduction to a solution provider. The answer to this is the formation and use of Cluster organizations like the High Tech Business Council. Cluster organizations and their moderators have the ability to extend the "safe harbor" of a single industry cluster across multiple industry clusters. They provide the business community venues for managed cluster communications as well as a common base for their organizational needs. Now, add to this, the greatest calling of a cluster organization: the recognition and facilitation of new business ideas that can be used by member businesses to improve their lines of business and possibly start entirely new businesses. The moderator of a cluster organization has a unique position allowing him or her to gather information about project needs both informally and through formal requests. It is the responsibility of the cluster moderator to use this information to bring together interested parties while providing impartiality and discretion. The moderator also has the unique opportunity to stand back and take in the "big picture." They can then bring this back to the organization's membership as an informed participant and offer guidance as to the partnerships that could provide additional solutions. While an individual industry cluster will always have its place, times have changed and the better we communicate our goals, the more likely we are to find someone that will be excited to help us achieve them. Carl Davis HIGH TECH BUSINESS COUNCIL WWW.HTBC.ORG
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