WWW.BUSINESSREVIEWUSA.COM
AUGUST 2014
THE
CHANGING ROLE
OF THE CMO THE BEST
Laptops for Business 2014
Innovative Ways to
Monetize Your App
EDITOR’S COMMENT
THE CHANGING ROLE OF THE CMO I N T H I S I S S U E O F Business Review USA our lead feature is on the
changing role of the Chief Marketing Officer. As the digital arena evolves so too does the complexity of the marketing department. From data analysis to sales, the marketing department does a lot more than write press releases and attend events. We take a look at the role today and where it is heading in the future. Also in this issue, we look at the greenest companies in the U.S., as well as the best laptops for business. We also consider the most effective ways to monetize your app, whether that is through advertising, in-app purchases or through selling your app to users for a fee. As always, we also feature some of the leading companies in the U.S. and speak to the C-suite about operational excellence, key trends and innovations.
E NJOY TH E I S S U E !
Abigail Phillips Editor abigail.phillips@wdmgroup.com 3
CO CN OTNETN ETNST S FEATURES This month we focus on the customer experience with the latest technology
28 Marketing
The Changing Role of the CMO 6 Leadership
Why ‘Female’ Leadership Qualities Enable Greater Success in Business
14 Finance
How to Monetize Your App
22 Technology
The Best Business Laptops 2014
130 NAMCOR
36 Top 10
Greenest Companies USA
COMPANY PROFILES ENERGY
SUPPLY CHAIN
44 Magnetic Analysis Corporation
68 Transportation Association of Maryland (Association)
MANUFACTURING 52 Delkor Systems 60 MIG Steel Fabrication
CONSTRUCTION 78 Moulton Niguel Water District
44 MAC
52 Delkor Systems 4
August 2014
78
60
MIG Steel Fabrication Moulton Niguel Water District
5
LEADERSHIP
WHY ‘FEMALE’ LEADERSHIP QUALITIES ENABLE GREATER SUCCESS IN BUSINESS Why women need to focus on their strengths when it comes to modern leadership W R I T T E N B Y: A B I G A I L P H I L L I P S 6
August 2014
7
LEADERSHIP WOMEN MAKE EXCEPTIONAL leaders when they play to their strengths. During my research for this article, I read a number of blogs, which advised women to imitate the leadership styles of their male peers. “One of my greatest ongoing challenges it to think more like a man,” wrote Annah Stretton, citing her “emotionally charged operating system” as a burden that needs to be overcome with “black and white” thinking. And Stretton’s not alone, countless women admitted to acting like men in order to prove their leadership abilities and climb the corporate ladder. Emily Heist Moss faced this dilemma during salary negotiations for a new job. She took the bull buy the horns and decided to take her own advice – “think like a dude,” “channel your inner swagger.” For Emily it paid off, but it left her with an uncomfortable feeling: “I felt like an asshole. I felt selfish. I felt like I was the opposite of a team player; I was a me-player. Why did I feel the need to throw down with false bravado? Why couldn’t I have gone in to my negotiations and played the hand a little closer to my true self? Why is the way to succeed in business – as 8
August 2014
Be yourself, don’t try and act like a m every self-help book and youngprofessional success story calls it – adopting traditionally masculine behaviors?” But what does it mean to ‘act like a man’ in business? Be more aggressive? Don’t let emotion get in the way of decision-making? Act ruthlessly? Wear less make-up? Ditch the heels? Speak with a deeper tone of voice? Now try and imagine a man ever making the decision to add a few lashings of mascara, pull on a skirt and communicate in a higher pitch. You can’t – certainly not without laughing – because it’s ridiculous to expect somebody to essentially change their gender simply to prove they are good at their job.
man to succeed And its not just about imitating men in order to command the attention of your superiors and underlings – there is a school of thought that genuinely believes women need to mimic the traits of men in order to be good leaders in the first place. First and foremost, leadership is not prescriptive, it differs for every individual and what works for one leader may not work for another. With this in mind is it not completely absurd that women should try and become something they’re not in order to succeed? Secondly, genderspecific traits are spurious, not all men are aggressive, power-hungry, ostentatious and bolshie, just like
not all women are nurturing, kind, emotional and sensitive. Could it be fair to suggest that the real issue we are facing is an outdated view of what a good leader really is? In truth, doesn’t this ‘macho’ behaviour belong in the past and couldn’t ‘female qualities’ enable far greater success for both women and men? FEMALE QUALITIES THAT ENABLE EXCEPTIONAL LEADERSHIP 1. COMPASSION It’s a myth that in order to be a successful leader you need to be cold, heartless and cruel. In fact research is frequently proving that compassion is 9
LEADERSHIP
Learn from your mistakes, don’t let them overwhelm you
critical for building a loyal, dedicated and passionate team. There is an age-old adage, which advises people “to treat others as you would wish to be treated,” and this sentiment can go a long way in leadership. According to Andrew Newberg M.D, writing for Fast Company, compassionate communication causes “both your brain and the brain of the person you’re talking to begin to align themselves with each other… because it eliminates the natural 10
August 2014
defensiveness that normally exists when people casually converse.” Leaders who are fair, understanding and who give positive guidance to their subordinated are far more successful when it comes to communicating and thus achieving their organizations’ goals. Furthermore, a more nurturing, kind and emotional approach to management allows leaders to connect and communicate with their employees on a more personal level, which in turn helps cultivate
G R E AT E R S U C C E S S I N B U S I N E S S
successful, professional relationships. 2. APPROACHABILITY Good leaders give those around them the room and the encouragement they need to flourish. Think about the most productive business meeting or seminar you have ever sat through – was it the one where you were talked at for two hours, or was it the meeting where you were able to contribute ideas, express your opinion and make suggestions? I almost guarantee it was the latter. A strong leader will give those around them the opportunity to be heard and make them feel comfortable doing so. They make time for them and genuinely listen to their ideas, whether that is in a meeting, during a private conversation, or in the corridor outside the office. Being approachable not only means you build stronger relationships with your team, it also gives you the opportunity to hear fresh ideas and lets those around you know that they are valued. 3. LEADING BY EXAMPLE Excellent leaders, well, they lead. It is floored to think that you can become
a good leader simply by telling those around you want to do. Once upon a time, it would have been considered a weakness to work ‘out in the trenches’ with your subordinates, however in today’s business world, leaders who earn the respect of their team are willing and able to complete any task they would ask others to do. Taking an active role in the dayto-day operations of the business will also allow you to keep ahead of the curve in regards to changes in your industry. Leading by example not only allows you to increase your own knowledge and hone your own skills, it also proves to your team you have earned your position of authority. 4. COLLABORATION Collaboration is essential for modern business success. The sharing of ideas, the pooling of resources and variety of skills that can be bought to the table not only leads to better, more informed business decisions, but also helps to build a strong team orientated culture, which is good for productivity and overall profitability. Collaboration also brings with it benefits including group accountability and enhanced creativity but it also 11
LEADERSHIP
Don’t be afraid to share your views and opinions in the boardroom
means that you, as a manager are holding yourself accountable to others. This is fantastic for building professional relationships, which in turn makes people want to work harder for you. Finally, collaboration challenges those around you to think outside the box, to form new ideas and to share alternative ways of doing things. This goes back to approachability, whereby strong leaders encourage those around them to be the best they can be.
12
August 2014
5. TEACHING Nurturing your employees and helping them develop their own skills by imparting your wisdom and knowledge will only lead to stronger business results. In a recent study it indicated that employees are increasingly looking for education, training and personal development at work over and above pay increases and promotions. By teaching your employees new skills, and by investing in external training you prove to your underlings
F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E
that you are investing in them and their personal progression as well as that of the company. Good leadership isn’t only about generating results for the business, but about making the employees of that business feel valued and appreciated, which will in turn yield results. For far too long, we have been coerced into thinking that a masculine approach to leadership is the way forward, however in today’s society people don’t react well if they feel like they are being dictated to – often a little compassion,
emotional intelligence and thanks will go a long way. Increasingly women are taking influential roles at major corporations, you only have to look at the likes of Merissa Meyers, Sheryl Sandberg and Marjorie Scardino (Twitter’s first ever female board member) to see this, and with their success comes proof that female sensibilities can be just as effective, if not more effective in modern business that outdated masculine behaviors.
13
FINANCE
14
Month 2014
HOW TO MONETIZE YOUR APP Tips and tricks for monetizing your app, amid fierce competition W R ITTE N BY AB I G A I L PH I LLI PS
15
FINANCE THERE ARE MILLIONS of apps available on the market, which is great for consumers but means there is a lot of competition for app developers. Not only do you have to get your app noticed, but you also need to hook users to get them coming back for more in order to make your application profitable. Successful app monetization is a hard goal to achieve. There are three main approaches to app monetization and a number of factors to take into account. Some prefer the singlemodel approach, while others like to use a combination of them, and choosing a path is by no means an exact science. But with the right mix of direction, experience and hard work, you should be able to make informed decisions and maximize the return you get from your app. Advertising Advertising is a tried and tested, and probably the simplest way to monetize your app. Basically, you assign space in your app to a third-party that uses it to deliver ads, and when those ads generate revenue, you get a piece of it. Sure, it sounds easy, but don’t let the simplicity of this approach fool you 16
August 2014
Caption Make sure to your the image app adds value for th into thinking you’ll be able to sit back and let the dollars roll in. Most advertisers use a pay-perclick model which means that every time a user clicks an ad in your app, it creates a little bit of revenue. Although this is very simple to implement, and often requires only a few lines of code,
HOW TO MONETIZE YOUR APP
he user and financial benefits will be a by-product it is very hard to get any real financial reward out of it. Unless you have an app with a great amount of traffic, the amount of clicks you’ll be able to generate is limited, thus the payout will be small as well. Furthermore, while there are a number of advertising agencies you
can sign up with, such as Google AdMob, Microsoft Advertising, Apple iAd and Nokia Ad Exchange, to name some of the bigger ones, many ad networks don’t serve ads globally. This means you have to implement backups to ensure users wouldn’t see a blank space if they happened 17
FINANCE
Monetizing and app isn’t a walk in the park 18
Month 2014
to be outside of the reach of the advertising network. Of course, you can also sell your own advertising space for a higher price, however this will require a lot of hard work and dedication, and potentially a full time employee. But done correctly, the results could be much better. Premium Paid App Now, you could just sell your app. If you’ve created an amazing app, then millions of people will want to buy it, and you’ll easily become rich. But unfortunately, things don’t really work that way. If you look into the numbers of which types of apps are downloaded, free apps account for more than 90 percent of downloads in the three major ecosystems: Google, Apple and Microsoft. And of the remaining ten percent which are paid for, six percent of the iOS apps cost only $0.99, and the numbers are similar for Android and Windows Phone. What does this mean? It means your app will enter the market at a huge disadvantage if you dare go above the $0.99 price point. But don’t fret; there is still room for you. Even though you’ll be starting with
a handicap, users who download a higher-priced app are much more likely to keep using it, as they have paid a premium for it. If you are developing for Windows Phone, you have one advantage over the other platforms. The Windows Phone marketplace allows you to set up a trial for your app, and by doing this you can get more sales. Nearly one in ten trial apps downloaded lead to a sale, and paid apps with a trial version gets 70 times more downloads than those without. If you are developing for Windows Phone, incorporating a trial version of your app is a must. There’s real merit to having a paid app, but be prepared for a lower number of downloads and an expectation that your app be refined, full-featured and above average. In-App Purchases Another way of monetizing you app is by using in-app products and purchases. These are products that you sell inside your app, such as extra gold coins and health upgrades in games, a language pack for your translation app, or whatever might fit into your specific scenario. The 19
FINANCE
In-app purchases in one way to monetize your app
excellent thing about in-app products is that you can get users excited about the value you add before you sell the products in your app. It is up to you where and when you decide to show and offer in-app products. You can offer your app for free, which means you get the most 20
August 2014
exposure, and then once your users are comfortable with your app, you can offer more functionality or more value for a price. Users can use your app and test it out before deciding to invest in it, and in return you’ll get more downloads and more money in your pocket in the end. The only thing
T E S L A L O O K S T O C H I N A F O L L O W I N G D E C L I N I N G Q 1 R E S U LT S
to be concerned about with this option is irritating your users and ultimately alienating them. Be smart about what you offer them and avoid having purchases a requirement to continue enjoying the application. Whatever option you choose be
sure to focus on the quality of your application as a starting point. Once you have created something that genuinely serves a purpose, you will be on track to earn a profit from it no matter what.
21
TECHNOLOGY
T
L
22
August 2014
THE BEST BUSINESS
LAPTOPS 2014 An in-depth look at the best laptops for business on the market today W R I T T E N B Y: D E A N A C A U C U S
23
TECHNOLOGY 5. Lenovo ThinkPad EDGE E431 Durable and affordable, the E431 Edge appears to be a fairly standard business laptop upon first viewing. The general layout is nothing fancy, but it utilizes a pair of sturdy offset hinges, giving it a premium look. For comfort, the laptop’s large, multitouch trackpad combines three buttons on the top edge to service the TrackPointing stick. The E431 also has a convenient fingerprint reader located just to the right of the trackpad for one-touch login. The keyboard is smooth yet solid, without the bothersome keyboard flex that you might expect from less expensive systems. The laptop has an Intel Core i5-3230M processor with a process speed of 2.6 GHz. It runs on a Windows 7 platform and has 500 GB of storage capacity. Overall, the Edge E431 is the ideal small business laptop. 4. Dell Latitude E7740 Touch This laptop is part of Dell’s Latitude 14 7000 series of business ultrabooks. Its premium features include a touch screen, substantial battery life and compatibility with other E-series Latitude laptops. The laptop has an 24
August 2014
Lenovo ThinkPad EDGE E43 Intel Core i5-4300U processor with a speed of 1.9 GHz. It runs on a Windows 8 platform and has 256 GB of storage capacity. This ultrabook measures 0.8 by 13.2 by 9.1 inches and weighs in at 3.85 pounds. The IPS display is bright and clear, with a 1,920 by 1,080 full HD resolution. The screen swiftly registers touches, taps, and swipes, ensuring that the user can fully utilize Windows 8 Pro on this system. The E7740 Touch’s keyboard has a pointing stick, multitouch trackpad, and separate mouse buttons, helping veteran users to easily adjust to the layout. The
31
Dell Latitude E7740 Touch removable battery has an average life of seven hours and 45 minutes and comes with extended options. 3. Dell Latitude E6430 ATG The E6430 ATG, which PC Mag dubbed “the pick-up truck of laptops,� is the latest in a series of rugged laptops from Dell. The laptop features sturdy construction, a long-lasting battery and an ultra fast solid-state drive. The laptop has an Intel Core i7-3520M processor with a speed of 2.9 GHz. It runs on a Windows 7 platform and has 256 GB of storage capacity. MIL-STD-
810G testing certified that the laptop can withstand unusual amounts of abuse including shock, drops, temperature and altitude. It also can withstand high amounts of dust and moisture, which can otherwise ruin the inside of a system. An aluminum lid, steel hinges and a magnesium alloy frame add further durability. Textured plastic armor and rubber bumpers on the corner protect the laptop from drops or bumps. The one drawback to all of this armor is that the laptop is indeed hefty, measuring 2.6 by 14.5 by 10.5 inches and weighing 6.3 pounds. 25
TECHNOLOGY
HP ZBook
2. HP ZBook 14 The HP ZBook 14 features an ultra sharp screen, professional workstation graphics, and a mobilestyle design. This laptop has a thinness and light weight unlike any professional-grade mobile workstation, measuring 0.83 by 13.5 by 9.5 inches and weighing a mere 3.88 lbs. The laptop has an Intel Core i7-4600u processor with a speed 26
August 2014
of 2.1 MHz. It runs on a Windows 7 platform and has 240 GB of storage capacity. The top lid and keyboard have a metal finish, but the bottom lid is polycarbonate, allowing the user to easily remove the lid to access the internal components. Slots for accessories like the optional 4G mobile broadband module were also included in its construction, along with 14 external ports (including
THE BEST BUSINESS LAPTOPS 2014
four 3.0 USB ports). As an added bonus, the 50 WHr battery—which averages a six hour and 30 minute life span—is both removable and replaceable, a feature rarely seen in most ultrabooks. 1. Apple MacBook Pro 15-inch (Retina Display) This laptop is number one in its class due to its performance, weight, and retina-display screen. Critics consider it to be an improved version of the 15-inch Macbook Air, as it boasts up-to-date components, an extremely thin chassis and substantial battery life. The laptop has an Intel Core i7-3615QM processor with a speed of 2.3 GHz. It runs on a
Mac OS X platform and has 256 GB of storage capacity. Although impressive all around, the retina display is its crowning glory. The resolution is 2,880 by 1,800, and remarkably, text looks smooth both up close and far away. The one drawback to the display is that all of your existing Mac applications will need to be updated. Apple-sourced apps look great, but non-optimized apps will not appear correctly. As the MacBook Pro is ahead of its time, developers will simply need to adjust their programs accordingly. Overall, this laptop is the top choice for high-end desktop replacement laptop PC’s.
MacBook Pro Retina Display Laptop
27
MARKETING
THE CHANGING RO
How will the role of Chief and change in 20
W R I T T E N B Y: A B I G
OLE OF THE CMO
Marketing Officer evolve 014 any beyond?
G A I L PH I LLI PS
29
MARKETING IN THIS DIGITAL age, marketing responsibilities have expanded to include multi-channels, big data, content management, customer experience and more. Does the C-suite title of Chief Marketing Officer (CMO) cover this - or has the role evolved? CMOs are going through a radical transformation, driven by multichannel customer choices, data analysis and marketing technology. Given the fastpaced nature of digital marketing, the role of the CMO is changing and being rewritten almost every week. HERE ARE THE TOP 10 WAYS IN WHICH THE CMO ROLE IS CHANGING 1. The CMO is role is up for discussion as today’s CMO job description becomes more complex and critical. While the same could be said for any C-suite title as the business landscape changes, the marketing role is more fluid than ever. In order to cover all these roles, many companies are opting to designate a Chief Innovation Officer, who oversees marketing, IT and product development. 2. There has always been a slight conflict between IT and marketing 30
August 2014
Big data is going to be a big deal
departments, however the modern CMO will need to work closer than ever with IT in order to bridge the gap and create a system that works. 3. By 2020, the marketing function in leading companies will be radically reshaped into three organizations:
THE CHANGING ROLE OF THE CMO
systems, content, channels and consumption (data). In most companies, a “digital skin” covers all touch points with the customer — even in physical stores, where customers might be shopping with a smartphone or interacting through in-store kiosks.
As a result there are “superstructures” centered on content, multi-channels and data that flows between marketing, sales, customer service and other departmental silos. These superstructures are key reasons why the silos are breaking down. 31
MARKETING
4. The best marketers will understand content marketing does not equal thought leadership. Some marketing departments still think a key goal of content marketing is to position the company as a leader. However, content marketing’s primary role is not about determining the leading edge, but about supporting the customer’s journey. 5. Multichannel coverage becomes 32
August 2014
an opportunity and a challenge, as CMOs integrate media silos. 6. For marketers of the future, the key lies in data collection - but not only the collection of data but the ability to analyze it and turn it into real life solutions to boost sales and productivity. 7. With this in mind, by the end of 2014, 60 percent of CMOs will have formal recruiting processes for people
The role of CMO is evolving faster than ever with data skills. 8. Only 20 percent of marketers will receive formal training on analytics and customer data management. Both of these predictions point to the importance of data collection/analysis for contemporary marketing, and both point to the mismatch between need, processes and training. 9. Fragmented marketing IT point products and low adoption rate
will inhibit companies’ ability to win customers. As some studies have noted, marketing suites, particularly marketing automation, have only begun to integrate the various functions needed for a full spectrum approach to customer marketing and management. 10: Digital marketing investment will exceed 50 percent of total program budget by 2016. 33
MARKETING
Digital marketing is a real game changer
In other words, not only are marketing’s needs across channels becoming larger, but marketing is now including a wider range of services 34
August 2014
and products — CRM, content marketing, social media and so on. Given the blurring of boundaries between the various departmental
I N S I D E R L E S S O N S F O R B U I L D I N G A S O C I A L M E D I A S T R AT E G Y
efforts to acquire and keep will be considered marketing in the customers in the age of the digital typical company. They suggest company, these thought-provoking that it’s more valid to ask what won’t. predictions do more than ask what 35
TOP 10
TOP10
Greenest Com
A run down of the most environmentally consciou
Written by: Deana Caucus
mpanies USA
us companies in America today 37
TOP 10
10
Agilent Technologies
Founded in 1999 as an offshoot of information technology corporation Hewlett-Packard, Agilent Technologies designs and manufactures electronic and bio-analytical measurement instruments and equipment. The company has a strong dedication to the environment and the 20,500 people that it employs worldwide. To ensure that suppliers adhere to their established environmental
and social responsibility principles, the company developed the Agilent Technologies Supplier Environmental and Social Responsibility (ESR) Code of Conduct, which has been in effect since 2004. The Code requires all suppliers to adopt sound environmental, health and safety management practices for the betterment of themselves and their communities.
9
Cardinal Health
Cardinal Health specializes in the distribution of pharmaceuticals and medical products and serves over 60,000 locations. The company was founded in 1971 as a regional food distributor and
branched into pharmaceuticals in 1979 upon the acquisition of an Ohio drug distributor. Currently, Cardinal Health employs more than 30,000 people worldwide. 38
August 2014
G R E E N E S T C O M PA N I E S U S A
Where the environment is concerned, Cardinal is currently the only company to sell all of its surgical gloves in sustainable packaging. In 2010, Cardinal Health converted their surgical glove inner wallets to recyclable, machine glazed paper. The company also uses 80 percent post-consumer recycled materials in its shipping and dispenser boxes.
8
Rockwell Automation
Headquartered in Milwaukee and founded in 2001, Rockwell Automation is a global provider of industrial automation, power, control and information solutions. Rockwell Automation is devoted to its environmental and energy objectives, helping companies improve their practices through minimizing raw material waste, maintaining emissions monitoring and reporting systems, utilizing solvent recovery and recycling systems and adopting waste management initiatives. They also offer advanced simulation software
that enables users to model and predict the impact of changes in raw material use and emissions output. Recently, the company was named one of the World’s Most Ethical Companies by the Ethisphere Institute for the sixth year in a row.
7
Biogen Idec
Formed in 2003 by the merger of Biogen Inc. and IDEC Pharmaceuticals, Biogen Idec is a biotechnology company specializing in drugs for autoimmune disorders, neurological disorders and cancer. The company’s environmental sustainability strategy focuses on water,
39
TOP 10
energy and materials. In 2009, Biogen Idec set a long-term goal of reducing their overall environmental footprint by 15 percent by 2015, compared to their 2006 levels. They reached these goals in 2012, reducing their environmental footprint by 18 percent. The company has established bold new goals for 2020—including a new water intensity goal—which they plan to announce next year.
6
McCormick
Since 1889, McCormick & Co. has been manufacturing herbs, spices and flavorings for retail, commercial and industrial markets in more than 125 countries and territories. A global leader in flavoring, the
40
August 2014
company is invested in sustainable production and has the facilities to prove it. Through efficiency upgrades and the installation of a 1.8 MW rooftop solar power system, McCormick’s Maryland distribution center achieved “Net-zero” status in 2012, making it the first commercial building in the state to achieve zero electricity consumption. The company’s Spice Mill in Maryland also employs a solar power system, which they brought online in 2008.
5
Sigma-Aldrich
Formed in 1975, SigmaAldrich is a life science and technology material company that develops, manufactures, purchases and distributes biochemical and organic chemicals. Currently, SigmaAldrich has over 9,600 employees and operations in 40 countries. The company has set numerous goals involving environmentalism and sustainability, including a
G R E E N E S T C O M PA N I E S U S A
goal of 20 percent improvement in waste intensity by 2015. Their Milwaukee distribution center implemented a project in 2011 aimed at reducing the number of boxes used to ship products to customers. The company saved 62,000 boxes—or 30,000 pounds of cardboard—during the first year of the initiative, which they dubbed the Virtual Boxing Project.
4 St. Paul’s Ecolab was founded as
Economics Laboratory in 1923. The company is a global provider of water, hygiene and energy technologies and services to the energy, healthcare, food, industrial and hospitality markets. Ecolab helps their customers meet their sustainability goals at more than one million locations around the world through their focus on clean water, safe food, abundant energy and healthy environments.
Galvanized by the growing threat of water scarcity, Ecolab partnered with the Alliance for Water Stewardship in 2010 to support conservation practices and establish new standards for comprehensive water resource management.
3
Ball Corporation
WFounded in 1880 and headquartered in Broomfield, Colorado, Ball Corporation is the world’s largest producer of recyclable beverage cans. In their commitment to reducing the carbon footprint of their most common beverage cans, the company has set a goal of a ten percent reduction within ten years through efforts such as lowering the weight of their cans and making their plants more energy efficient. With the help of industry partners, they are also working to increase beverage can recycling rates and reduce the energy intensity of aluminum production. The eco-conscious company has been issuing sustainability reports since 2008 41
TOP 10
2
Adobe Systems
Adobe Systems is a multinational computer software company that formed in San Jose, California in 1982. Amid their software production division, Adobe has significantly reduced the amount of packaging used by decreasing box weight and size, replacing their plastic DVD cases with paper cases and eliminating the use of shrink wrap. Additionally, they distribute 73 percent of their software electronically. Adobe was one of the first companies to adopt the
42
August 2014
United States Green Building Council’s Leadership in Energy and Environmental Design (LEED) standards, and at present, 70 percent of Adobe’s employees work in LEED certified offices.
1
Allergan
Allergan is a global pharmaceutical company with a focus on ophthalmic pharmaceuticals, dermatology, urology, neuroscience and cosmetics. The company began in 1948 with the development of ALLERGAN®, the first antihistamine eye drops in the United States. Since then, the company has developed an array of biologic and pharmaceutical products that include Botox, Restasis and the Lap-Band System. The company is dedicated to reducing its environmental impact and has been tracking its sustainability performance since 1992. At present, Allergan is one of the few pharmaceutical
G R E E N E S T C O M PA N I E S U S A
companies to partake in the United Nations Global Compact, which sets guidelines in the areas of human rights, labor, anticorruption and the environment. Allergan decreased its energy consumption by 2.3 percent between 2012 and 2012. The company used tools such as Lean 6 Sigma, metering and sub-metering and Energy Star performance indicators to ensure energy efficiency. Within the same period, their hazardous waste generation decreased by 12 percent, even with increasing production rates. They have set aggressive targets of 15 percent
hazardous and nonhazardous waste reduction to be achieved by 2015. Allergan’s dedication to the environment is especially evident in regard to its recycling efforts. The company increased its recycling rate from 29 percent in 1995 to 76 percent in 2013. The most notable recycling rate improvements occurred at Allergan Medical Heredia Costa Rica and Allergan Medical Santa Barbara. Allergan Pharmaceuticals Westport in Ireland and Allergan Medical Pringy in France maintain the company’s highest recycling rates at 100 percent.
43
Magnetic Analysis Corporation:
Scaling Up for the Energy S
MAC VP of Sales Dudley Boden discusses entering the O market for oil and gas and how the company has met the challenges of this fast growing industry Written by: Sasha Orman
Produced by: Alex Hortaridis
Sector
OCTG e
45
M A G N E T I C A N A LY S I S C O R P O R AT I O N
The Ultrasonic Test Head Mechanism was then adapted to be used for the inspection of spinning tubular and bar product. As demonstrated, there are 2 test heads at the bottom of the tube. Bellow the head is a water tank. System 2014 Ten years ago, Magnetic Analysis Corporation (MAC) was in the business of nondestructive testing for the metals industry, running eddy current and flux leakage testing and analysis on pipes and structures for a variety of sectors. The energy sector was not a major part the business – but when the need for oil and natural gas pipelines began to expand over the last decade, MAC saw an opportunity. “Ten years ago, we started to get much more active in the oil country tubular goods (OCTG) market, and that was good timing for us because that was when that market was really starting to take off all over 46
August 2014
the world,” says Dudley Boden, VP of Operations at MAC. “It was really where the opportunities were at that point, and we had the right technology – in some cases all we had to do was make larger versions of the testers we were making, make more integrated systems with multiple types of testers in one line, in order to meet the requirements of that market. We just needed to adapt a little bit to go into that market. Now that’s become a big part of our business both here in the US and overseas.” Today MAC stands as a major force in oil and gas, using an array of testing capabilities to ensure that
ENERGY
A pre-acceptance test at the MAC plant of a Longitudinal Flux Leakage Rotary system for automotive tubular products of varying wall thicknesses. 2011 System
the pipelines the industry relies on are strong and ready to perform. Shifting Gears and a Unique Advantage for a New Market Years of experience in nondestructive metals testing has given Magnetic Analysis Corporation the unique advantage of having a range of testing equipment meant for various applications that can now be applied to the pipeline industry. “Not many of our competitors, in the OCTG market or anywhere else, have all the different types of technology that we offer,” says Boden. “Either they focus more on ultrasonic testing or eddy current or flux leakage testing – but almost none of them have all of it. We’re one of the only manufacturers who have all of that, so we can put a complete package together
“Probably our biggest investments in last few years are in scaling up our products” – says Boden
w w w. m a c - n d t . c o m
47
M A G N E T I C A N A LY S I S C O R P O R AT I O N without subcontracting out to someone else or going through separate vendors. That’s a huge advantage for us in this market.” Still, every new sector brings its own unique set of challenges and oil and gas has been no different. Since entering this market, MAC has invested significantly in retooling its equipment and testing capabilities to take on these challenges. “Probably our biggest investments in last few Ultrasonic Rotary, Demagnetizer, years are in scaling up our products,” says Boden. Longitudinal Flux “Ten years ago, our largest ultrasonic rotary tester leakage Rotary, Transverse Flux Leakage could test 5-inch (127mm) material as a maximum Rotary, all mounted on MAC’s Triple Guide Roll – now we’ve produced an ultrasonic rotary that Constant Center Bench for a company in Russia
R.G. SMITH TOOL & MFG.CO. Precision Machine Work, CNC Machining Fabrication, Machine Repair High quality products for the metallurgical, food, plastics, chemical, transportation, and pharmaceutical industries since 1922.
Phone: (973) 344-1395 Fax: (973)344-1387 info@rgsmithtool.com
ENERGY
can test up to 20-inch (500mm) material. That’s a much bigger product, which is required for OCTG. It’s the same with our flux leakage tester – our largest flux leakage tester was (15.75-inch) 400mm, and now we’re up to 500mm. A lot of our product development has been scaling up our mechanics, our drive systems, and our conveyors to handle these larger products.” Beyond scaling up, MAC has also invested in the development of altogether new technologies to test more accurately for the industries it serves. “The infrared testing system we’re just starting to introduce is a unique technology for doing surface defects, totally noncontact, and offer some unique advantages,” Boden adds. “We’re doing that with a partner, and we continue to develop and come out with new versions of our electronics that support each of these kinds of testers.” Driving Customer Service One guarantee that Magnetic Analysis Corp makes to its customers is that, wherever its products are sold, it has the local capacity to provide comprehensive service and support. As Boden explains, this service is crucial for manufacturers with their own tight schedules. “Sometimes our products are in the production line itself, sometimes they’re in an offline test system – but in either case, they’re unable to ship product if it hasn’t been tested,” he says. “We shut down the factory if our equipment isn’t operating. So it’s very important to be able to
“Either they focus more on ultrasonic testing or eddy current or flux leakage testing – but almost none of them have all of it. We’re one of the only manufacturers who have all of that, so we can put a complete package together without subcontracting out to someone else or going through separate vendors. That’s a huge advantage for us in this market.” – Dudley Boden President & CEO
w w w. m a c - n d t . c o m
49
M A G N E T I C A N A LY S I S C O R P O R AT I O N
In this instance, we have a system installed in India for inspecting OCTG. Longitudinal & Transverse Flux leakage Rotaries on MAC’s “V” Roll Pinch 2008 System respond quickly and get people with the proper skills on site in a hurry, to get equipment back up and running if there’s any kind of problem. We then also have somebody who can go there and spend time with the customer at initial delivery, learning about their operation and making sure we provide the right equipment in the first place.” This responsiveness is part of MAC’s commitment to customer service. The company’s most important asset beyond its comprehensive testing capabilities, it has turned MAC’s relative size in the industry into agility and an asset. “In this day and age every customer wants things 50
August 2014
ENERGY
Company Information INDUSTRY
Manufacturing, Heavy Machinery, NDT, Metals HEADQUARTERS
Elmsford NY USA FOUNDED
1928 EMPLOYEES
144
Ultrasonic Rotary, Demagnetizer, Stand Test Bench.
REVENUE
30+ Million
a little bit different, whether it’s the paperwork side of things or actual equipment requirements,” PRODUCTS/ SERVICES says Boden. “They are looking for levels of customization, or to fit a product into a space that www.mac-ndt.com may not be ideal. What we find is, while virtually all of our competitors make standard offerings, https://www.facebook.com/ we customize down to the level of wanting MagneticAnalysis something painted a different color. If it comes to reengineering your product to fit very specifichttps://twitter.com/MacNDT parameters, we will. That’s a big advantage of us being small and responsive.” http://www.linkedin.com/ company/magnetic-analysiscorporation w w w. m a c - n d t . c o m
51
Delkor Systems
How Delkor Systems has Fo Entrepreneurial Culture
Employee work-life balance sparks wellbeing and creativity at packaging equipment manufacturer Written by: Abigail Phillips
Produced by: Michael Magno
ostered an
y
53
DELKOR SYSTEMS
O
ver the last four decades, Minnesota-based Delkor Systems, Inc. has built a thriving manufacturing business by helping consumer product companies automate the packaging of their products. Listening closely to customer needs and investing heavily in research and development Delkor has introduced a steady stream of inventive machinery – and novel packaging designs – that are making brand owners more productive and profitable. In a time when many manufacturing companies were cutting back on R&D and marketing, Delkor President and CEO Dale Andersen expanded the engineering staff and committed the company to expanding its product line to satisfy the wider packaging market. Delkor specializes in machinery that forms, loads and closes secondary packaging, which includes the cases, cartons, trays and shrinkbundled packages. These are used to transport products throughout the supply chain, from manufacturing to retail shelves. Andersen acquired Delkor in 54
August 2014
the late 1990s. Prior to that, the company founder had divested some of its technology and business to other packaging companies. Andersen took over the Delkor name and the core of the company’s business, which primarily served the packaging needs of the dairy industry. By expanding the number and types of machines available, Delkor is now serving more packaging segments among Fortune 500 companies. As a result, over the last decade the company has experienced average organic growth of 12 percent annually, with revenues growing from $20 million in 2004 to $65 million today. Delkor recently consolidated its operations in a new 114,000 sq. ft. facility in St. Paul, MN. Andersen says Delkor takes pride in producing high-tech equipment here in the U.S. that can compete globally. He says the company’s location in Minnesota is a strength since the area is a strong packaging center and it provides a highly skilled talen pool. At Delkor, the entire team of 170 employees is encouraged to find new ways to automate packaging.
M A N U FA C T U R I N G
All sales staff are Delkor employees and have a strong engineering background that helps them understand and visualize customer requirements. They are backed by a team of 23 engineers who translate these needs into efficient machines that meet or exceed customers’ requirements. Delkor’s manufacturing staff all have received technical training. Many also double as service technicians, using their extensive experience in building the machines to ensure the equipment is properly installed and is optimized for maximum productivity.
Continuous Improvement Packaging is a product used daily by virtually all consumers. Changing consumer requirements are driving packaging changes, such as sustainable design, singleservings, flexible pouches, zippered enclosures, microwaveability and other convenience features. These modifications have prompted further developments in secondary packaging. Delkor has anticipated many of these changes and adapted the design of their equipment to take advantage of these transformations. Mass merchandisers are playing an increasingly important role in w w w. d e l k o r s y s t e m s . c o m
55
Keenline designs, engineers and manufactures conveyance systems to convey raw or packaged food products.
(920) 685-0365
Minarik is a proud partner and provider of linear motion to Delkor Systems, a manufacturer of high-quality, innovative end-of-line packaging equipment.
1.888.646.2745 | www.minarik.com
www.keenline.com
DELKOR SYSTEMS the types of packaging used in different retail channels. These range from convenience stores to wholesale club stores, and each has its own shipping, display and size requirements. For a brand owner or a copacker, this means their machinery must have the flexibility to handle a range of packaging. Until very recently, many packaging lines were dedicated to producing a single type of product. Now, machines must changeover between packaging formats more frequently, and packagers are seeking to minimize the downtime during each change. An engineering executive at a leading U.S. food company recently said that the old mantra for packaging operations was “Bigger, faster , better.” Now that company’s expectations have changed. They are seeking packaging equipment that is “Adapatable, flexible and efficient.” Delkor has been ahead of the curve in adapting its business model to this new mantra. Examples of its success include designing machines that can changeover in less than three minutes, which prevents lost production time.
M A N U FA C T U R I N G
In addition, Delkor has added “intelligence” to much of its packaging equipment that can significantly increase production efficiency. Inspection devices allow the machines to detect and selfcorrect many packaging faults without stopping and requiring aid in removing defects from the machine. Another factor that separates Delkor from many equipment manufacturers is that it often either designs or helps design new packaging – not just the machines themselves. Packaging must protect and sell the product, but sometimes these goals clash. By working with its customers, Delkor has helped develop packaging that effectively achieves shelf impact while delivering efficient manufacturing. An example is the patent-pending Delkor Cabrio Case™, which is a shipping case that easily converts to an attractive shelf-ready tray ready for store display. An Entrepreneurial Culture While engineers are developing new machinery to better accommodate packaging goals, Delkor provides an inclusive, entrepreneurial w w w. d e l k o r s y s t e m s . c o m
57
DELKOR SYSTEMS
culture that allows each member of the team to contribute creatively and technologically. According to Andersen, “One of the things I am most proud of is that we’ve been able to develop an innovative culture, and it’s not easy to do that. It means that we have to have a culture in which you hire the right type of person. Innovation presents a lot of challenges. As soon as you accomplish one challenge, you’re on to the next. You have to be creative, willing to accept failure and use that failure to move on to success. It takes a special culture to really reach a higher level of innovation. Management has to be attentive, and you have to have the right 58
August 2014
team. I think that we’ve been doing that over the last few years, and we need to make sure that we’re bringing the right people on board that fit that role.” Delkor also employs a productstrategy team, representing eight departments, that decides the development projects that the company will undertake. Among the departments represented are sales, marketing, engineering, operations, product-line developers, as well as the CEO, to ensure Delkor determines the best approach to fulfilling customer needs and requests. Employee Wellbeing Employee satisfaction and work-
M A N U FA C T U R I N G
life balance also are primary goals for Delkor. The company aims to minimize staff turnover and create career opportunities for employees to pursue within the company to provide a higher quality of life. Delkor is one of the few companies that provide daily fitness classes, including yoga, in which around 70 employees participate. These classes, held in an on-site fitness center, provide employees the opportunity to meet new people from other departments as Delkor rapidly expands its workforce. The fitness classes also work as a way to promote a healthy, active lifestyle to improve heart health, among various health benefits. A majority of Delkor’s business is concentrated in the food and beverage industries, where it serves numerous multinational companies. In planning for the future, Delkor continues to expand its product lines to meet the needs of a growing customer base, primarily based in North America, but expanding into other areas outside the U.S.
Company Information INDUSTRY
Packaging Equipment HEADQUARTERS
St. Paul, MN FOUNDED
1973 EMPLOYEES
170 REVENUE
$65 million+ PRODUCTS/ SERVICES
Automated equipment for forming, loading, closing and inspection of packaging
w w w. d e l k o r s y s t e m s . c o m
59
MIG Steel Fabrication:
Growth and Progress at MIG Fabrication
Operations Manager Richard Gast discusses MIG Steel Fa capabilities and new expansion into Nashville Written by: Sasha Orman
Produced by: Justin Burkinshaw
G Steel
abrication’s range of project
61
M I G S T E E L FA B R I C AT I O N
Meharry Medical College Nashville - Turner Family Center
Steel has been the strong backbone of the construction industry for well over one hundred and fifty years. As a fabricator structural and miscellaneous steel for commercial and industrial projects, Lexington-based MIG Steel Fabrication supports the construction industry throughout the Southeast United States with highquality products and responsive customer service. A Balance Between Industry and Art The projects underway at MIG Steel Fabrication encompass 62
August 2014
a variety of building types and display the company’s wide range of manufacturing capabilities. Ranging from multi-story university facilities, such as the 507 ton Turner Family Center at Nashville’s Meharry Medical College, or the 485 ton Nursing Building at Southwest Community College in Memphis, TN. MIG Steel has a proven record in steel fabrication for traditional structures. However, some projects reflect a more complex vision by the architect and MIG Steel Fabrication has shown a unique capability in bringing these artistic projects to life.
M A N U FA C T U R I N G
Woodland Playground - Memphis Tennessee
The recently completed Talley Tower at North Carolina State University’s Student Union is a prime example. Standing over one-hundred fifty feet above the campus skyline and fabricated from sixty-six tons of open-lattice rolled steel, this unique three million dollar artisan project represents MIG Steel’s most creative project to date and a clear illustration of its ambition to be known as go-to specialist in architectural steel structures. The project has required intense care, as well as cooperation between MIG and partner Anatomic Iron Steel Detailing. “In our shop we
divided the project into eight layers, and each layer was built complete on our shop floor, then shipped to a finish painter in Georgia and on to North Carolina State University where it was installed by our steel erectors,” explains Richard Gast, Operations Manager at MIG Steel Fabrication. He notes that the project is in its final stages being touched up with 3-coat high end urethane finish. It is complex, challenging, and the kind of rare project that any company with a true passion for steel work hopes for. “There are not very many of them that happen – w w w. m i g c s . c o m
63
NCSU Talley Tower Nearing Completion
M I G S T E E L FA B R I C AT I O N when they do happen, if we get the opportunity or see that they’re out there, we definitely look for them,” says Gast. “Right now this is our first artisan project, and everybody in their minds wondered whether it could be done. But we got it done, it looks great, and it’s going to finish up nicely.” Keeping Up with Techniques and Technology Steel fabrication may be an ageold industry, but technology has helped to push the trade forward and MIG Steel Fabrication is at the forefront. “We’re constantly looking for applications that can enhance our systems – it’s all process oriented, and we have to look for new developments all the time,” says Gast, noting that MIG is in the process of updating its FabTrol Systems steel fabrication software to boost efficiencies throughout the company’s value chain. “Right now we’re adding modules to that which will allow us to directly access the databases at our warehouse companies and give pricing back within just a few minutes,” he says. “It will allow
M A N U FA C T U R I N G
us to take the files we get for our drawings, import that information into FabTrol, and it will have pricing come back to us almost instantly. We can know whether stock is available, have instant pricing, and be able to place orders much more quickly. That’s one interesting new feature that’s coming about for us.” MIG Steel Fabrication also utilizes BIM and 3D modeling for the vast majority of its drafting projects, in order to better communicate with architects and designers. According to Gast, this method has saved construction projects valuable time and resources. “We’ve had chances to make corrections, where we’ve caught modeling errors between the two models that don’t work together,” he notes. “It saves some time and effort on the back side in not having to correct work that’s wrong.” Still another standard that has become increasingly popular in recent years is LEED certification, as more businesses strive to improve their sustainability and carbon footprint. MIG Steel Fabrication caters toward LEED certification by improving their own products and w w w. m i g c s . c o m
65
M I G S T E E L FA B R I C AT I O N
Discovery Park - Union City Tennessee
production methods toward more sustainable standards. “That’s an easy thing for us to handle,” says Gast. Growth in the Future For MIG Steel Fabrication, the future holds growth in several ways. “I would say we are on a three year growth pattern and are looking for new technology in the shop over a three year period in order to enhance our fabrication,” says Gast. “As far as projects go, we’re fine tuning what we’re looking for in 66
August 2014
M A N U FA C T U R I N G
projects as far as size and type and who we want to work for, and what types of contracts are best for us.” Recently the company opened a new office in Nashville, in order to better serve its clients and expand its employee base, and thus far the prospects in the city have been promising. “With a good increase in permits being pulled, there is a lot of stuff out there on the boards for engineers and architects – Nashville’s going to be a good market for us for a good timeframe,” says Gast. “We’re not stuck to Nashville – we’re looking through the whole Southeast right now, catching work down in Mississippi, Alabama, and some in Georgia – but in the near future, Nashville’s looking bright.” But no matter where MIG Steel Fabrication sets down roots, it’s undeniable that the business is growing strong, ready to take on bigger and brighter challenges every day. “We feel like we’ve developed a good group of folks – we’ve got a great team going here, we can run 4050,000 shop hours a year pretty easily, and we’re developing constantly,” says Gast. “We’re a growing concern. Last year was a good year for us, and we expect this year to be even better. It gets better every year.”
Company Information INDUSTRY
Manufacturing HEADQUARTERS
Lexington, TN FOUNDED
2007 EMPLOYEES
140
w w w. m i g c s . c o m
67
Transportation Associat Maryland, Inc. (TAM)
Contributions from: Christina I. Miller, MBA, CCTM, Executive Director Beth Hamby, Senior Transportation Planner, KFH Grou Christopher B. Costello, Public Sector Consulting Gro
tion of
up, Inc. oup
69
TA M
This bus fire demonstration was the final event of 1½ days of Emergency Response Training organized by TAM and Washington County Transit in coordination with the Maryland Transit Administration (MTA) Office of Local Transit Support, Washington
County Emergency Services, Washington County Community Action Agency, Inc., an the City of Hagerstown. “Burned Out Bus,” a photo taken during the TAM/Maryland RTAP sponsored
Emergency Response Training received Honorable Mention in the 2013 National RTA Photo Contest. The theme for the contest was “Putting Training to Work.” Photo: Bittner Photography
WHO IS TAM The Transportation Association of Maryland, Inc. (TAM) is a statewide professional association that is dedicated to improving mobility for all Maryland citizens. TAM is a viable and effective advocate for its members and provides professional development, training, and forums for the pursuit of excellence in public 70
August 2014
transportation by public, private, and specialized transportation providers. The Association has come a long way since its beginnings in October 1985 when the first Board President, Jim Raszewski and seventeen founding members formed the Association. TAM incorporated in August 1991and for many years functioned with a volunteer Board
SECTOR
nd
AP
and part-time Executive Director who worked from home. At the May 2001 General Membership meeting, membership voted to expand TAM by recruiting to hire a full-time Executive Director and acquiring centrally located office space. In 2003, TAM hired its first full-time Executive Director and Administrative Assistant and opened
an office in Ellicott City. Today TAM represents every jurisdiction in the state of Maryland. TAM’s goals are to be recognized as the leader in transit issues in the State, to be the organization of choice for transit systems, transit vendors, legislators and the public to discuss transportation issues in the State, to be financially w w w. t a m i n c . o r g
71
TA M
independent and to have an active, well-informed membership who considers their membership fee a vital cost of doing business in the transportation industry. WHY TRANSIT Public transit enhances mobility for all people. It increases the selfsufficiency and overall quality of life for elderly people and people with disabilities who may be unable to drive, provides alternatives for those who choose not to drive, and connects communities and individuals to jobs, educational, medical and other services. Maryland is served by a network of transportation suppliers that provide public and specialized transportation throughout the state, from the Allegheny Mountains 72
August 2014
in the west, to the beaches and agricultural areas of the Eastern Shore. Ridership on TAM’s 85+ member organizations provided nearly 364 million passenger trips in FY13 and over 509 million passenger miles to connect Marylanders to jobs, medical services, nutrition programs, educational facilities, and other destinations essential to living well, independently and sustainably. Transportation services throughout the state continue to grow in ridership and service quality. Businesses in Maryland also continue to rely on public transit services. The availability of transit services enables businesses to recruit and retain employees from a larger pool, which is critical in a competitive and tight labor market. The diverse community
S U P P LY C H A I N
transportation services provided by members of TAM link people to community resources and promote business, tourism and economic development throughout the State. Community transportation services come in many forms: traditional city bus services, “demand-response” service arranged on a one-on-one basis, hybrid “flexible” route service, and organized volunteers using their personal vehicles are just a few of the more commonly found services in Maryland. These services are provided and managed through local governments, non-profit human service agencies, private companies, and transit authorities.
General Membership Meetings; Annual Conference & Tradeshow; Regional Training Initiatives for Members; and Access to Member Directories and Forums. In addition, via business partnerships, TAM is able to offer discounted products to its members. These partners include Atlas Insurance Agency/Erie; Achieve Links; AFLAC; Exxon Mobil; First Financial Group; Legal Shield; Midas; and Wells Fargo. INNOVATIONS, OPPORTUNITIES AND ISSUES IN TODAY’S PUBLIC TRANSPORTATION INDUSTRY
Transit Technology MEMBERSHIP DEVELOPMENT Technology continues to drive AND BENEFITS the world we live in and the As a part of its membership transit industry is no exception. development program TAM Technological advances include has established a number of vehicles that operate on alternative collaborative partnerships fuels (electric buses, hybrids, allowing it to offer a select menu CNG, “clean diesel”), accessibility of value-added benefits to its equipment which must be installed membership. Member benefits on vehicles to provide access to currently include: Annual Legislative people with disabilities, security Reception & Transportation equipment, and a whole ecosystem Fair; Annual Statewide Roadeo; of digital communications, w w w. t a m i n c . o r g
73
TA M automatic vehicle location made possible through global position systems, often referred to as Intelligent Transportation Systems or ITS. In communities where that ITS information is linked into realtime next-bus arrival information systems and web-based technology applications, customers will be able get ready access to updated transit schedule information on their smart phones.
identifying training needs, hosting, and promoting training events. In recent years MTA and TAM have partnered to raise the level of safety training and emergency preparedness among the LOTS through the TransitSCORE program, which MTA recently redeveloped into a web-based curriculum called MarylandTRAIN.
Meeting the Needs for Specialized Transportation The Importance of Partnerships Services Partnerships are essential to Public transportation providers innovations and developments struggle to meet the needs of in the community transportation specialized transportation for those industry in Maryland. The Maryland who are unable to ride traditional Transit Administration (MTA) of bus services due to disabilities, the Maryland Department of medical conditions, or the effects Transportation (MDOT), as the of aging. Meeting the individualized provider of federal and state funding needs of vulnerable passengers to the Locally Operated Transit requires significant resources. In Systems (LOTS), is a major partner, Maryland, as in many other states not only in terms of dollars, but across the nation, meeting the also in the provision of training demand for getting people to and and technical assistance. Training from specialized appointments is a for the LOTS, MTA grantees, and concern. Kidney dialysis treatments others is funded through Maryland’s are a prime example of this type of Rural Transit Assistance Program challenge. The number of dialysis (RTAP). RTAP training is offered in treatment facilities continues to collaboration with TAM, a partner in grow, offering opportunities for 74
August 2014
S U P P LY C H A I N
people with kidney disease to live longer lives; however, resources for public transit services are waning. Recognizing that specialized transportation services are a critical piece of the health care puzzle, the State of Maryland, in collaboration with TAM and other stakeholders, sponsored a study in 2013 to evaluate the growing need and diminishing funding for specialized transportation services. The Ongoing Funding Challenge As a public service industry, community transportation relies on tax dollars and grant funding to keep its wheels in motion. While this has always meant resources are constrained, the economic downturn over the past five years has hit our industry hard, with many providers struggling to meet basic community needs for transportation access to jobs, job training, medical care, and other critical services. As the economy has dipped, so have tax revenues and consequently public funding sources. The Challenges of Maintaining a Public Transportation Workforce
Driver hiring and retention is another ongoing trial for the industry. Driver positions can be difficult at times; drivers deal with traffic, time pressures, and violent and unpleasant passengers on a daily basis. These issues, coupled with funding challenges, lead to relatively low wages and benefits. This makes it difficult to hire and retain skilled public transit drivers when competing with higher paying jobs in transportation. The lack of retention also impacts succession planning. As today’s leaders approach retirement age, preparing to hand over the reins to the next generation involves developing tomorrow’s leaders. To address this issue, TAM is looking at ways to connect younger professionals with veteran leaders.
LEGISLATIVE IMPACTS Dialysis Transportation Study In answer to the growing need for specialized transportation mentioned earlier, in 2013 TAM, working in conjunction with a major dialysis treatment provider, successfully initiated a study w w w. t a m i n c . o r g
75
25th Annual Conference & Tradeshow. Photo: Bittner Photography
TA M produced by the MTA regarding the demand for Paratransit services provided by the LOTS for individuals receiving dialysis treatments. The impetus for requesting the study stemmed from recent increases in Paratransit trips provided by TAM members for dialysis patients. The report verified the observations of TAM members and will be used to support future legislation to justify additional funding for Paratransit services that has been flat for the past 10 years as costs and demands have increased. The MTA contracted with the KFH Group for the completion of the study. KFH Group is a DBE certified woman-owned small business (and TAM member) that offers planning services, technical assistance and training to transit agencies.
Transportation Funding In 2012 TAM participated on a team of advocates that included the Chamber of Commerce, trade associations and nonprofit organizations that supported the passage of SB 719 & HB 1302, which today provides the Maryland
S U P P LY C H A I N
transportation Trust Fund with as much as $664 Million more per year. Without this additional revenue it was unlikely that Maryland would be able to adequately maintain the existing transportation infrastructure and public transportation services. Public Service CommissionIn 2011 TAM was able to win passage of legislation that eliminated duplicate vehicle inspections by the Public Service Commission (PSC) and the Maryland Transit Administration (MTA). The inspections provided by MTA are required by the U.S. Department of Transportation and were more rigorous than those conducted by the PSC. Elimination of the inspections of LOTS vehicles enabled the PSC to reallocate their constrained resources in order to meet the increasing back log of private industry carriers in the State without any fiscal impact to the taxpayer.
w w w. t a m i n c . o r g
77
Moulton Niguel Water Di
Moulton Niguel Water Distric Manages California’s Drough
By focusing on service and a clear plan for the future, the M keeping the district on course in a time of trouble. Written by: Kevin Smead
Produced by: James Gilligan
istrict
ct Effectively ht Crisis
Moulton Niguel Water District is
79
C O M PA N Y N A M E
Partial Service Area View
I
t’s no secret California has a water crisis. Even idyllic Southern California isn’t immune to the widespread effects of the drought. However, in this time of extreme difficulty, South Orange County’s Moulton Niguel Water District is forging ahead with a focus on partnership, conservation, and service. The District is developing and updating planning documents for infrastructure management, financial stability, water resources, and water shortage contingency plans in a comprehensive manner to use a strategic guide for the future 80
August 2014
needs of the District’s customers. “We’re taking all the great work that’s been done throughout the history of this District and building on that to give us a roadmap for the future,” General Manager Joone Lopez said. “We’ve done really well over the years and have an outstanding financial position, but we know there are a lot of challenges ahead. To address these future challenges, it’s important to plan thoroughly and communicate effectively with the communities and customers we serve.”
SECTOR
Open Channels of Communication Outreach is a major part of Moulton Niguel’s operating strategy. “We work hard to maintain our relationship with our customers and surrounding agencies and share with everyone what we’re doing and getting feedback from them,” Lopez said. “I think that also sets us apart. We’re committed to building partnerships and working together as a region to collaborate on ideas and projects. The personal relationship that we built with various entities in our region
has allowed us to pull resources together to provide services in the most cost effective manner.” The District believes in meeting people where they are, rather than having people come to them. Be it out in the community, at council meetings, via its website, or its bill insert, the District is working to actively engage its customers. One of the challenges Moulton Niguel faces is getting people to truly appreciate the value of water, and hopes its outreach efforts will help people understand the vital importance of conservation. w w w. m n w d . c o m
81
E N E R G Y D I G I TA L
Moulton Niguel is also working to facilitate regional partnerships with nearby agencies and the 5 different cities the District serves. “We have worked hard to develop strong partnerships with all our local agencies and create a unified approach to meeting the water needs of not only our service area, but also the needs of the region and California. We are meeting with multiple agencies through various forums to discuss and address critical water supply, operational, and regulatory issues that affect everyone here in South Orange County and the state” Lopez said. One such project it’s collaborating on is the 28 million gallon per day Baker Water Treatment Plant, which will be completed in 2016. Along with 4 other water agencies, Moulton Niguel will be a major stakeholder in this water treatment facility in Lake Forest, California, which will increase local reliability and extend the District’s ability to serve its customers with adequate water supplies during emergency situations.
Stepping Up Conservation Emergency situations may come sooner rather than later, though, due to California’s crippling drought. Lopez feels that Moulton Niguel’s forward-thinking policies put them in a good position to handle the crisis. “For many years, the District has been proactive—and even visionary—in our conservation efforts,” she said. “We provide rebate incentives for various programs and devices, and have for many years. We also have recently implemented an allocationbased rate structure that’s fairly progressive, which we call our Water Budget Based Rate Structure.” This proactive rate structure takes several factors into account to customize a water budget for each individual customer based on their own water needs. Using more water means rates are paid in a higher tier, which is allowed, and the money goes toward water efficiency, conservation and reliability efforts within the community. It’s a rate structure the State of California is becoming increasingly interested in, as it incentivizes using water w w w. m n w d . c o m
83
M O U LT O N N I G U E L WAT E R D I S T R I C T
Main Office
Kennedy Pipeline Construction Kennedy is a full service underground construction firm that specializes in wet utilities construction for the Southern California area. Kennedy has the capability to perform the work in environmentally sensitive areas while satisfying all requirements of landowners, environmental monitors and public agencies. A tradition of excellence in service and quality has paved the way for Kennedy Pipeline into the modern era.
www.kennedypipeline.com
84
August 2014
efficiently on a sustained basis. Although Moulton Niguel has been a leader in the development of an extensive recycled water system that provides nearly 25 percent of its water needs, the District is stepping up its recycled water efforts, complete with a forthcoming long-range master plan that will maximize recycled water use in the region and minimize dependence on imported water supplies. In addition to more longrange planning, the District is thinking short-term as well. “We’re expanding our recycled water efforts as we speak and helping all our customers to realize how they can conserve,” Lopez said. She also believes that successfully managing the drought requires a bigger conversation. “We’re engaging with statewide agencies just to have a dialogue about water concerns and drought emergencies since it’s not just
E N E R G Y D I G I TA L
something that happens in one part of the state,” Lopez said. “We wanted to have a much more collaborative discussion on how to move forward, because the drought will continue and drought will happen again.” “Leading the Way in Service” What’s most important to Moulton Niguel, though, is that it provides the best possible service to its 165,000 customers, whether the state’s in crisis or not. The District’s slogan, “Leading the Way in Service,” is something it aims to practice and improve on daily. “We take service as the most important aspect of what we do,” Lopez said. “The people we have in this organization are—in my opinion—what makes our agency the best. They take great care and pride in their work as illustrated by numerous compliments from our customers. Seeing them in action and hearing from our customers continues to reinforce our commitment to service.” Lopez believes that no matter what, the customers come first. “Sometimes we forget that,” she admits. “We get stuck in the grind of what we’re doing. But to value service, and take great pride in the level of excellence in customer service we provide, that’s what’s unique about our District and that’s why we have that slogan. We see ourselves as being leaders in that regard.”
Company Information INDUSTRY
Water / Power HEADQUARTERS
27500 La Paz Rd. Laguna Niguel California FOUNDED
1960 EMPLOYEES
120
https://www.facebook.com/ pages/Moulton-Niguel-WaterDistrict/149534428422505
w w w. m n w d . c o m
85