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M anufacturer The Illinois T H I R D Q ua rt e r 2 0 2 0 D o n at i n g , r e s e a r c h i n g a n d d e v e l o p i n g : a b bv i e j o i n s t h e f i g h t aga i n s t c ov i d - 1 9
How can I improve How can I improve efficiency efficiency and protect my bottom line? and protect my bottom line? Constellation Constellation is theiseasy the easy answer answer to complex to complex energyenergy purchasing purchasing decisions. decisions. As the endorsed Asenergy the endorsed supplierenergy supplier to the IMA, to the IMA, Constellation helps homes Constellation and businesses across the nation maximize every energy dollar.every helps homes and businesses across the nation maximize Fromenergy dollar. From consumption consumption to sustainability goals,tofrom sustainability goals, energy savings from guarantees energy savings guarantees to neutral budgeting, we provide to neutral budgeting, we provide various energy products and clean energy variousThat’s solutions. energy why products andcustomers—including two million clean energy solutions. That’s two-thirds why of the two million customers—including two-thirds of the Fortune Fortune 100 companies—consider Constellation America’s energy choice®. 100 companies—consider Constellation America’s energy choice®. To learn more To learn about more participating about in the participating IMA in the Energy IMA Program, Energy Program, please please contact contact Rich Rich Cialabrini Cialabrini richard.cialabrini@constellation.comor richard.cialabrini@constellation.com at at or 847.738.2510. 847.738.2510. constellation.com/IMA © 2020 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy-Gas Division, LLC or Constellation © 2020 Constellation Energy Resources, LLC. The offerings described herein are those of Constellation NewEnergy-Gas Division, LLC or Constellation NewEnergy, NewEnergy, Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks Inc., affiliates of each other and ultimate subsidiaries of Exelon Corporation. Brand names and product names are trademarks or service marks of their respective of their respective holders. holders. All All rights reserved. rightsand Errors reserved. Errors omissions and omissions excepted. excepted. Constellation is the endorsed energy supplier of this association which receives compensation for its promotional and marketing efforts from Constellation.
SAFETY, HEALTH & WELLNESS Table of Contents THIRD quarter 2020 Mission Statement The Illinois Manufacturers’ Association is the only statewide association dedicated to boldly moving Illinois’ makers forward. The IMA is the oldest and largest state Abbvie: Feature manufacturing trade association in the United States, representing nearly 4,000 companies and facilities. Switching gears ChairWoman To save lives Linda McGill-Boasmond 16 President & CEO Mark Denzler Editor Anastasia Lowenthal The Illinois Manufacturer is published quar- terly by the Illinois Manufacturers’ Association. All rights reserved. The title, from the ima The Illinois Manufacturer, is a trademark of Do You Trust Politicians with More of Your Money?............................................................4 the Illinois Manufacturers’ Association. The IMA Health Plan is Renewing and Expanding!.............................................................6 What Now?.................................................................................................................................10 Copyright 2020© Illinois Manufacturers’ Association. Reproduction of all or any part is prohibited except by written per- mission of the publisher. Published arti- business development cles do not necessarily reflect the views of Resuming Healthcare in the Age of Coronavirus...................................................................8 the magazine or its publisher. Information in this publication should not be substi- Educational Equity and Manufacturing in the COVID-19 Era .........................................11 tuted for advice of competent legal coun- Combating Negative Publicity: Pitfalls & Best Practices....................................................14 sel. For address changes and adjustments, write to The Illinois Manufacturer. Presort ENERGY & ENVIRONMENT standard postage paid at Bloomington, IL. Setting and Meeting Sustainability Goals with Production Targets.................................12 Postmaster: Send address changes to The Illinois Manufacturer, 220 East Adams Street, Springfield, IL 62701. Telephone: (217) 522-1240. innovation, technology & security If you have any questions, please contact Tips to Keep Your Work Secure at Home...............................................................................13 Anastasia Lowenthal, Editor and Manager Accelerating Your Rebound Through Digital Marketing...................................................18 of Publications at alowenthal@ima-net. Transfer Pricing in the COVID-19 Environment..................................................................24 org, or (217) 718-4207. Share Your Company News with the IMA . . . Government regulation & legislation A Scheduling Nightmare: Complying with the Chicago News information, press Fair Workweek Ordinance........................................................................................................20 releases and articles may be sent to Anastasia Lowenthal, Director of Publications, Illinois Manufacturers’ Association (IMA), 220 East Adams Street, Recognitions Springfield, IL 62701, or alowenthal@ima-net.org Members in the News...............................................................................................................26 New IMA Members...................................................................................................................30 The Illinois Manufacturer is underwritten by Constellation – an Exelon Company
President’s Report Do you trust politicians With more of your money? Mark Denzler, President & CEO M ore than a year ago, when I first met with Governor JB Pritzker, we had a long and wide-ranging conversation on many topics including manufacturing and my leadership style at the Illinois Manufacturers’ Association. As I told the Governor, and I say often, we need a “Manufacturing Majority” in Congress, Governor ’s mansions, and statehouses across the nation including Illinois. The IMA will stand with elected leaders of all stripes if they help advance the promise of American manufacturing. But we will stand and fight against policies that will devastate our state’s industrial sector and our economy. The IMA stood up and successfully sued the Governor and Workers’ Compensation Commission when they tried to foist a $4.4 billion workers’ compensation rule on Illinois employers and we’re now engaged in the largest ballot issue ever in Illinois – the graduated income tax. As I watched fireworks the night before Indepen- dence Day, news broke that the Governor dumped $51.5 million into an effort to raise taxes on Illinois residents and businesses. Manufacturing employs more than 600,000 people in Illinois while contributing the single largest share of our state’s economy. Every manufacturing job supports another 1.6 jobs and every dollar invested in manufacturing generates another $1.89 in economic activity. As a former chairman of the IMA used to say frequently, “manu- facturing creates wealth in this country.” Today, the state’s manufacturing sector along with other wealth creators are under attack by the Governor and his allies in the legislature and organized labor who are seeking a massive income tax hike that will also hit family farms, hospitals and health care providers, and small business owners across Illinois. This is not a tax on millionaires and billionaires – it’s a tax designed to take money from successful businesses to try and fund an insatiable appetite for spending under the Capitol dome. Even Chicago Mayor Lori Lightfoot, in a moment of clarity, noted “we cannot keep taxing the hell out of peo- ple who make substantial income. That’s not right. That’s not fair. It’s not gonna work.” We’re now in the midst of a global pandemic that has seen record unemployment, precipitous drops in the stock market, and rapid declines of tax revenue in Illinois and around the nation. Nearly every other state has utilized a rainy day fund (Illinois does not have one), furloughed employees, and reduced spending. Not in Illi- nois where the Governor and lawmakers actually approved hundreds of millions of dollars in higher spending while borrowing $5 billion from the Treasury to throw us further in debt. It’s truly incredible to me that during the worst economic crisis in generations, the Governor and lawmakers who have already saddled employers with higher minimum wages and more regulations now want to hike tax- es, all so that they can keep spending. The question is quite simple: Do you trust Illinois politicians with more of your hard-earned money? The same officials who have racked up a $7 billion debt and refused to take serious steps toward reforming our pension system suffocating under a $137 billion shortfall. Nearly every Democrat voted in favor of amend- ing the Constitution to raise taxes and many wanted to enshrine the right to unionize but didn’t lift a finger to remove the compounding pension COLA. During his campaign, Governor Pritzker pledged property tax relief but it’s failed to materialize and proper- ty tax bills continue to rise. An individual earning $75,000 will pay $51 less in income taxes while seeing their property taxes rise by three times that amount. Proponents claim that this will only tax the rich, but Democrat Treasurer Michael Frerichs just noted that “one thing a progressive tax would do is make clear you have grad- uated rates when you are taxing retirement income.” The graduated tax is a bad idea that will open the door to more unadulterated spending and further job loss and outmigration of Illinoisans. Democrats are already talking about taxing retirement income before voters have even had a say at the ballot box. No plan to reform pensions or reign in spending. Seems like a very easy answer. Vote NO on the graduated income tax and demand responsibility. P.S. The IMA is helping fund an effort to battle the graduated income tax. Please contact me if you would like to make a special contribution to our effort. Mark Denzler is President and Chief Executive Officer of the Illinois Manufacturers’ Association. He may be reached at mdenzler@ima-net.org, or (217) 718-3726. 4
ima benefits update The IMA Health Plan IS RENEWING AND EXPANDING! Mark Frech T he IMA is pleased to announce the upcoming renewal and expansion of the IMA Health Plan! For the second consecutive year, the IMA is proud to work together with Blue Cross and Blue Shield of Illinois (BCBSIL) to bring Illinois manufacturers a statewide solution for affordable, flexible, and customizable group medical coverage. In addition, beginning with October 1, 2020 coverage effective dates, the IMA will offer participating member companies a newly expanded and comprehensive portfolio of ancillary products and services with MetLife! Since its initial launch in 2019, over 600 IMA Health Plan proposals have been requested by Illinois man- ufacturers and their broker consultants. Additionally, more than 65 percent of those proposals were priced competitively relative to comparable plans in the open market. 1 Several key highlights of the IMA Health Plan are as follows: • No medical underwriting • Statewide and nationwide availability • Comprehensive provider networks • Flexible plan designs and prescription drug coverage • Integrated COBRA administration •*NEW: Dental, vision, life and disability benefits The IMA Health Plan allows manufacturers and their employees to choose the right benefit plans to meet their needs and budget. Quotes for the IMA Health Plan can only be obtained through a licensed Illinois insurance agent or broker consultant, and IMA member companies may join the IMA Health Plan at any time throughout the plan year, which runs annually from October 1 to September 30. Any Illinois manufacturer that meets the following criteria is eligible to participate in the IMA Health Plan: 1. Operate within the manufacturing sector (SIC code assignment of 2000 – 3999) 2. Employ between two and 50 2 employees (on average) in the prior calendar year 3. Be headquartered in Illinois 4. Be an IMA member in good standing The IMA Health Plan also delivers to participating member companies an industry-leading benefits ad- ministration technology solution called SIMON®. Powered by Vimly Benefit Solutions 3, SIMON empowers participating member companies to automate their benefits enrollment process with several clicks of a button. The SIMON platform provides participating member companies with access to all of their IMA Health Plan benefit invoices and member administration in one consolidated location. If your group health coverage renews in the coming months, you owe it to your employees and your bottom line to include the IMA Health Plan in your evaluation process. It could provide you and your employees with a cost effective and comprehensive alternative to your current program. For more information about the IMA Health Plan, please visit www.imahealthplan.com. 1 Premium savings projections are based on the comparison of identical plans available in the ACA small group marketplace with matching coverage effective dates. 2 Dental, Vision, Life and Disability benefits are available to companies with up to 100 employees. 3 Vimly Benefit Solutions, Inc., an independent company, solely responsible for its products and services, administers the SIMON online benefits portal for Blue Cross and Blue Shield of Illinois. Mark Frech is Executive Vice President at the Illinois Manufacturers’ Association. He may be reached at mfrech@ima-net.org, or (217) 718-4203. 6
IMA HEALTH PLAN OFFERED BY BLUE CROSS AND BLUE SHIELD OF ILLINOIS Affordable Health Coverage Designed by Manufacturers for Manufacturers.
BUSINESS DEVELOPMENT Resuming healthcare in The age of coronavirus BLUE CROSS AND BLUE SHIELD OF ILLINOIS same period last year and even immuni- zations were down 55 percent for those more than two years old during the same time frame. The good news? Those numbers are starting to rebound. When we looked at colonoscopies from March through June, utilization was down 57 percent from the 2019 numbers, mammograms were down 48 percent and the rate of non-infant immunizations rebounded slightly – at a 35 percent decrease from the same time period the year before. It is encouraging news and a sign that utilization is picking back up. But more needs to be done. Blue Cross and Blue Shield of Illinois is looking for your help to embrace and spread the message: “Don’t Hesitate about Your Health - needed health care can’t outwait Coronavirus.” Notice the word “needed” – as ever, our focus is on providing access to ap- W propriate, medically-necessary care for e know that COVID-19 will The CDC reports that emergency de- our group customers and members. By have many longstanding partment visits declined 42 percent returning for wellness visits, receiving impacts on the way we do March 29 through April 25, 2020, com- necessary immunizations and diagnos- business in Illinois. Whether its physi- pared with March 31 through April tic screenings, and actively managing cal modifications to the workspace, 27, 2019. The agency warned that, “a chronic conditions, your employees remote working as a permanent solu- decline in visits for serious conditions may avoid long-term negative implica- tion, or changes to the workforce, we might result in complications or death.” tions on their health and productivity. can all agree that COVID-19 has caused In a recent Wall Street Journal article, all businesses to make new and differ- more than half — 56 percent — of clini- ent decisions for the health and well-be- cians reported worsening health condi- Tips and Information When ing of employees, as well as considering tions among patients linked to a lack of Visiting a Medical Provider the long-term affordability and quality appropriate health care (according to a The Kaiser Family Foundation Track- of health care. survey in late June of 735 clinicians by ing Poll for June found that about half Essential manufacturing never shut the Larry A. Green Center and Primary of the adults surveyed who say they or a down in Illinois – and non-essential Care Collaborative, advocacy groups fo- family member postponed care say that manufacturing was allowed back in cused on that type of practice, and 3rd feeling unsafe about visiting a medical Stage 2 of the state’s reopening plan. Conversation, which connects patients facility during the outbreak was the rea- Many Illinoisans have begun cau- and care providers). son for their decision. tiously returning to “normal” during Blue Cross and Blue Shield of Illi- As we carefully move toward the next this pandemic as Illinois has entered nois (BCBSIL) data shows that diag- phase in this pandemic – it makes sense Stage 4 of Restore Illinois, including re- nostic tests – colonoscopies, for exam- that people would wonder about how turning to restaurants and health clubs. ple, during March through May – were to safely resume care. First and fore- But how many of us are racing to get down 71 percent from the same period most, for emergencies, BCBSIL members back to our doctor ’s office? last year. This reduction in utilization should call 911. For non-emergent care, of needed health care services may lead the Mayo Clinic offers additional tips Health Care Hiatus to long term health impacts including for patients: With treatment for COVID-19 taking delayed cancer diagnoses or the pro- • Before you make an appointment, precedence, many people have been gression of chronic conditions. Mam- call your provider or check your pro- putting off important medical care. mograms decreased 70 percent from the vider ’s website to find out what’s be- About the Author: Brian Snell is Senior Vice President, Group Markets at Blue Cross and Blue Shield of Illinois. He can be reached at (312) 653-6641. 8
ing done to keep people safe during the provided benefits (including behavior- parts and assumptions that help our COVID-19 pandemic al health) that can help their people be customers take as much uncertainty as • At the visit, take precautions such as present and productive while on the job. possible out of the equation. wearing a mask, social distancing, and Employers should consider telehealth Manufacturers in Illinois have faced avoid touching frequently used surfaces to be another tool in the “benefits tool many challenges over the years and belt” to help their people get the care have continued to rise to the occa- Receiving Care Without they need so they can contribute to busi- sion and deliver on behalf of Illinois- ness success. ans. Many manufacturing groups have Physical Contact drilled down into the needs of their em- Depending upon a member ’s circum- stances, telehealth may be another op- Forecasting the Future ployees and made investments in posi- Much is unknown about how tive employee wellness programs. tion. COVID-19 presented the unique opportunity for rapid expansion of COVID-19 will impact health care costs telehealth services. Blue Cross and Blue for Illinois employers moving into Answer the Call to Action Shield of Illinois launched an expand- Phase 4, or whether Illinois will soon This is the perfect opportunity for us ed telehealth program to offer a safe see a resurgence of COVID-19 cases. to work together to encourage changes option for access to care in response Many employers and workers are prob- that can have a significant impact on the to the emerging crisis and we continue ably wondering: “What happens when health and wellness of our communi- evolve the program, including devoting schools are back in session? Are we ties. Your leadership is needed in help- resources to ensure the care delivered is close to getting a vaccine? What will be ing to encourage your employees and appropriate. the recommendations on who should re- your loved ones not to delay necessary Because health isn’t just physical – ceive it? And what about cost?” doctors’ visits due to fear of COVID-19. telehealth coverage was especially be- Even in these times where much is un- If people are cautiously preparing to re- ing sought by members who wanted known, BCBSIL is focused on doing our turn to hair salons, malls and movies - to access virtual care from providers best to predict current and future costs shouldn’t accessing needed health care of behavioral health (BH) services. Em- so we can share this information with also be high on the to-do list? ployers have always focused on the pro- our customers. Client analytics special- ductivity of their employees and have ists and actuaries help monitor moving 9
Education Report WHAT NOW? Jim Nelson O ver the past several weeks, Illinois’ P-20 education system leaders have been meeting to try and cobble together a plan for the school year that begins in August. While this annual exercise would normally oc- cur with simple minor changes year over year, this time superintendents, administrators and even faculty are wringing their hands in anticipation of what the COVID-19 “New Normal” will mean for learning environments from preschool to post-doc- torate university research. The IMA Education Foundation keeps abreast of these discussions since the secondary and post-secondary systems pro- duce the bulk of the talent pool manufacturers need for a knowledgeable and skilled workforce. In addition to the traditional 3R’s, the more focused skill development courses needed for manufacturing and other technical education offerings require laboratory time to put technical theory to work in applied exercises. If schools are not able to open with reasonable limits on the number of students that can use lab facilities, real problems arise in producing a work-ready talent pool. The General Assembly in May passed appropriations for the five state agencies that oversee education in Illinois for the fiscal year that began on July 1. I suppose it could be considered lucky that appropriations for Fiscal Year 2021 were essentially flat in comparison to 2020, but left on the table was the promise agreed to by Governor JB Pritzker and the General Assembly to increase funding by $350 million each year for ten years to close the current state funding inadequacy. If there is any good news in the new budget it’s that where individual schools receiving an overall funding cut, the reductions were minimal. How that plays out with COVID Normalcy is going to be interesting to watch. School districts and colleges are looking a five potential scenarios for operating this Fall (and as is the habit of government they even come with names): Click to Brick: Under this scenario, which at this point seems the most likely, schools will begin classes on time via remote learning, and will transition back to traditional classrooms when either 1) there is no further increase in COVID-19 cases and/ or 2) a reliable vaccine is approved and comes to market. Under this scenario, a single teacher would have a class that would remain together throughout the school year. Brick to Click: The opposite of Click to Brick, this scenario means that school buildings would open as normal and students would at least begin the year in the classroom. However, the school district would work closely with state and local public health officials to monitor any outbreaks, and be prepared to instantly revert to remote learning. Again, students would re- main with their teachers. Toggle Scheduling: This scheme would support social distancing requirements by dividing up classes into smaller groups and schedule the groups to attend classes intermittently. The example most often used takes a class of 30 students and sched- ules 15 of them to attend classes in person on Monday and Wednesday, while the remaining 15 students attend on Tuesdays and Thursdays (Friday would be some sort of makeup day or tutoring day). On days when students are not scheduled to be in the classroom, they would attend class either using a remote learning system or join the classroom virtually. If the remote learning platform was implemented, a second teacher would be needed to teach requiring careful planning and alignment between the two environments. Compacted Semesters: Some educators are encouraging an additional consideration be made to shorten and compact the Fall and Spring semesters. Under this scheme, the Fall semester would begin a few weeks earlier in August and run up to the Thanksgiving Holidays when the semester would end. Students would be away from school until the end of February or early March following the end of the traditional high activity months for flu and other coronaviruses. The Spring semester would then run until late May to mid-June. Depending on the start and end dates chosen, the traditional 16-week semester would potentially be compacted into a 12 or 14-week semester. Gap Year: Under this proposal, schools would remain closed for the entire 2020-2021 school year. Admittedly, nobody likes this idea and very few are advocating canceling the school year, however it is an option that is available and could be used if current re-opening plans fail and caseloads skyrocket. So how does this impact manufacturers? Under most of the scenarios described above, the impact will likely be minimal. However, there are considerations facing employers that if schools are unable to fully open and vocational education oppor- tunities are limited, students moving into the workforce will be less prepared requiring employers to increase job training and bear added expenses themselves. At a time when the world economy faces enormous challenges to return to some semblance of normalcy, having an educa- tion system facing the challenges of preparing the workforce but keeping students safe is something not faced since the Flu Pandemic of 1918. Education needs input from business leaders to help navigate this minefield. After all, what happens in our schools today has decades of impact to the health of the state and its economy. Jim Nelson is Vice President of Education and Workforce Policy. He may be reached at jnelson@ima-net.org, or (217) 718-4211. 10
BUSINESS DEVELOPMENT EDUCATIONAL EQUITY AND MANUFACTURING IN THE COVID-19 ERA QUALITY FLOAT WORKS, INC. W hen our industry is presented inequities in place long before the pan- we must ensure better access to resources with challenges – as manufac- demic took hold of our nation, including for those most in need. turers, we find ways to inno- unequal access to technology. Students Access to technology is critical. How vate, evolve and overcome. The COVID- who learn best by ‘hands-on’ opportuni- can we engage with students and con- 19 pandemic is no different, providing us ties are at a much greater disadvantage nect them with apprenticeship programs with an amazing opportunity to change when forced into distance learning. Un- or CTE programs when distance learning our story and truly reform our practices derserved populations enrolled in Career is not an option? How are we improving to ensure inclusion and equity in our and Technical Education (CTE) programs equity when many students in our educa- workforce. lost out on important work study and ap- tion system don’t have access to internet Serving as Chair of the IMA Educa- prenticeship programs. Distance learning or Wi-Fi in their homes? tion Foundation, as well as Chair of the currently does not allow for equitable We’re entering into a new industrial Illinois State Board of Education (ISBE) outcomes for all students, and when fac- revolution – Industry 4.0 – when technol- Gender Equity Advisory Board, I’ve ing a pandemic that ultimately mandates ogy and automation are ingrained into been afforded an incredible opportunity distance learning… that, in and of itself is our production practices. As we contin- to work with leaders from industry and the most problematic challenge. ue to lose more and more of our work- education in finding solutions to help force each year as baby-boomers retire, bridge the skills gap and better prepare our next generation to join the work- ...we, as manufacturers, we must invest in the next generation to ensure we’re building a strong, prepared force. We’ve been making great progress – building resources to broaden STEM must pause and ask workforce for our collective future. We’ve walked past these inequities for programs, broadening relationships with our community colleges across the state, ourselves – are we years. COVID-19 shined a spotlight on the needs of students, educators and em- connecting employers to apprenticeship programs, and giving students access to actively taking steps ployers in different communities and it is imperative we facilitate better outcomes. ‘hands on’ learning opportunities while introducing them to opportunities afford- to ensure equity for the An innovative action plan is critical to de- veloping a strong workforce for the next ed by pursuing a career in the manufac- turing industry. next generation of our generation. As an industry, working in collaboration with the private sector and I, and many of my colleagues, were ex- cited about the future of manufacturing. workforce; is our local school districts is the most practi- cal and beneficial vehicle to help achieve And then, COVID-19 emerged. While we scrambled to make the nec- education system these goals; we must broaden participa- tion of the underrepresented for our in- essary adjustments to our manufacturing floors in an effort to meet the require- producing candidates dustry. As a new school year kicks off under ments to operate under the ‘new normal,” the same adjustments were being made who help us reach our the guidelines defined by the ‘new nor- mal’, we, as manufacturers, must pause by our educational institutions – and we quickly discovered it is not a level play- internal equity goals? and ask ourselves – are we actively taking steps to ensure equity for the next gener- ing field. When Governor Pritzker’s Stay At the end of the day, the barriers in ation of our workforce; is our education at Home Executive Order took effect and place have not changed – they were mere- system producing candidates who can our schools transitioned to distance learn- ly exacerbated by COVID-19. We were se- help us reach our internal equity goals? ing or ‘e-learning’, a spotlight shined on verely unprepared to implement distance COVID-19 has taken so much, but it’s the incredible inequities students face learning programs for our full student also created an incredible opportunity to depending on in which community they body where inequities were already in implement a new approach to addressing live. place; this leaves our industry at a disad- inequities in our education system and How can we prepare our next genera- vantage in growing our next generation our workforce. We have an invaluable tion of workers for the future when we workforce. opportunity to bring about real change. can’t reach them? So, where do we go from here? Let’s not squander this moment. While some students and families were To ensure greater equity in our educa- set up well to participate in distance tion system—leading to greater equity, learning, many others were not due to diversity and inclusion in our workforce, About the Author: Sandra Westlund-Deenihan is the CEO/Design Engineer for Quality Float Works, Inc. and Chair of the IMA Education Foundation. She is also Chair of the Illinois State Board of Education Gender Equity and Advisory Board, and is on the Board of Directors for the National Alliance Partnership for Equity. Sandra can be reached at sandy@metalfloat.com, or (234) 489-6176. 11
Energy & Environment SETTING AND MEETING SUSTAINABILITY GOALS WITH REDUCTION TARGETS Constellation C limate change is often associated Because sources of emissions are Common reduction targets might in- with marked variations in weath- boundless, many organizations struggle clude: er such as more frequent and to grasp their true energy footprint. As 1. Absolute reduction goals (e.g., to use intense storms and the ensuing impact a result, businesses are turning to new 100 percent renewable energy by a cer- of potential flooding. These weather technologies to uncover areas of oppor- tain future date) events can have an impact on both busi- tunity within their facilities and opera- This can refer to a goal of baseline nesses’ building structure as well as tions. emissions being reduced by a certain per- operations. In response to these con- There are many ways energy managers centage by a certain end year. Businesses cerns, government entities and institu- can manage their utility data. The Pear.ai may focus on market-based (i.e., energy tional investors are collectively applying platform, which is an energy intelligence efficiency and clean attribute purchases) pressure on public companies to address platform, makes it easy for everyone to or location-based accounting (i.e., ener- climate change. manage and understand their energy gy efficiency or onsite renewables). As increased scrutiny is placed on footprint. In-house data collection, com- 2. Science-based targets emissions and supply chain manage- bined with machine learning and report- An example of a science-based target is ment, many companies have established ing, give meaning to your data and iden- a 2-degree Celsius target. This is based on aspirational goals to improve environ- tify opportunities for efficiency, demand the internationally agreed upon thresh- mental, social and governance (ESG) reduction and potential cost savings – old of 2-degree Celsius temperatures, metrics in a short time frame but have which can be a first step towards creat- representing the measure beyond which done so with limited details on how to ing a sustainability plan. significant climatic changes would occur execute those objectives. Competitive In addition to the Pear.ai platform, and be disruptive to earth’s systems that energy suppliers, like Constellation, are Logical Buildings is a smart building are currently relied on to meet basic so- positioned to deliver value and exper- technology offer through a strategic al- cietal needs. Corporate goals are vetted tise in this area by helping customers liance with Constellation. Using internet against the required reductions for their understand the critical areas to target for of things (IOT) devices, Logical Build- sector under this methodology and are improvement and how to establish key ings helps energy managers understand encouraged to be achieved by 2050. attainable milestones. specific points in their operations that Customers can look to technologies “Energy managers are looking for their impact energy usage and costs. By using like Measurabl, invested in by Constella- competitive energy suppliers to engage these technologies, energy managers can tion Technology Ventures, the venture in- customers not as ‘electricity consumers’ better understand how and where their vesting arm within Exelon Corporation, but as allies on a sustainable mission,” operations use energy, which can help to keep track of their data and monitor says Raj Bazaj, Constellation’s executive formulate their plan to meet sustainabili- the progression of their actions to reduce director of Solution Sales. ty goals, including the creation of energy carbon emissions from start to finish. To comply with national and state- reduction targets. Measurabl is a cloud-based software that wide clean energy regulations, and to be collects data, creates investment-grade recognized as leaders in sustainability, Creating Reduction Targets sustainability reports and identifies im- more businesses are proactively measur- After establishing a baseline and find- provement opportunities. Learn more by ing and reporting their greenhouse gas ing areas of opportunity, whether that’s visiting www.constellation.com/CTV. emissions and setting targets to reduce implementing renewable energy pur- Businesses that implement aggressive them. chases to decrease fossil fuel use or mak- sustainability goals can reduce emissions ing the switch to energy-efficient LED and energy costs. As a bonus, businesses Understanding Your Business’ lighting to reduce energy consumption, will demonstrate their concern for en- vironmental health, attract the growing CO2 Footprint businesses can create attainable green- house gas (GHG) reduction targets with number of eco-conscious consumers and Businesses have the opportunity to the help of a retail supplier like Constel- ensure that institutional investors con- influence the sources of their emissions. lation. tinue to support their businesses. They might include: GHG reductions targets are emission Contact, Rich Cialabrini, (847) 738- • Scope 1 emissions from onsite gener- reduction levels that entities set out to 2510 or Richard.cialabrini@exeloncorp. ation and fleet fuel consumption achieve by a specified time, according com, to learn more about sustainability • Scope 2 emissions from power plants to the Center for Climate and Energy strategies and helpful technologies to providing purchased electricity Solutions. Targets can drive a business’ support your business’ goals. • Scope 3 emissions from indirect sources, such as company travel and commitment to achieve its sustainability supply chain management goals. Constellation – Providing tools to create a customized energy strategy for your company 12
INNOVATION, TECHNOLOGY & SECURITY tips to keep your work COMCAST Secure at home B usinesses of all sizes are continually shifting their work strategies in response to the COVID-19 pandemic. For manufacturing companies, one of the biggest adjustments has been managing the shift from in-person, hands-on work envi- ronments to more remote workforces. As manufacturers navigate teleworking arrangements (some for the first time since their business opened), opportunities for cybercriminals are on the rise. Remote em- ployees working on their home networks likely do not have the same security mea- sures that their offices do, and as they spend plement a combination of tools that works This will help users avoid phishing attempts more time online they are more susceptible best for your needs. These tools could in- with URLs or attachments programmed to to engineered cyberattack tactics. Mean- clude an antivirus program, firewall and download malware into a network. while, IT staffs don’t have the same visi- network security solutions that proactively • Set and enforce strong password pol- bility into employee activities and network protect all devices connected to your net- icies. Teach users to come up with strong threats. work. passwords or passphrases, enforce policies The result? Phishing attempts are on the • Invest in expertise. It can be difficult to to change passwords frequently and pro- rise. Capitalizing on the anxiety that the understand the full scope of the cybersecuri- hibit password sharing. pandemic has wrought, cybercriminals are ty landscape without expert help. For small • Set browsers to warn users when visit- sending sophisticated fake emails that ap- to medium sized businesses, investing in a ing a site that has been flagged as containing pear to be credible. Some emails claim to be managed security services provider (MSSP) malware. from internal company stakeholders regard- is best practice, but even businesses with in- • Block downloads from suspicious or ing important updates about workplace house cybersecurity teams can benefit from unsanctioned sources. changes or coronavirus response efforts. collaborating with an outside provider. • Prohibit users from sharing compa- Other emails purport to come from external • Secure mobile devices. Business is done ny-owned laptops and mobile devices. organizations, like the World Health Orga- on-the-go these days, and mobile devices as • Teach users not to access sensitive com- nization, and will contain “helpful” links to well as cloud-based platforms are becom- pany data through public Wi-Fi networks. news about COVID-19. ing more popular. Be sure to include these Unfortunately, no business is immune platforms in your security strategies, or you Implement Company-wide run the risk of leaving an opening to cyber from cyberattacks. On average, two-thirds “Common Sense” Policies of small businesses alone have experienced attackers. Take team education a step further with some form of breach attempt. Luckily, good “common sense” cybersecurity policies. cybersecurity practices can help prevent at- Provide Educational These are designed to help enforce the train- tacks or damage. Resources for Your Team ing that your employees have been given, as An organization could be using state-of- well as avoid relapses into bad habits that Create a Comprehensive Strategy the-art cybersecurity software to protect its lead to breaches. The strongest cybersecurity defenses data, but without employee education to These policies should be multidimen- are built based on an understanding of complement them, those tools could be null sional and can vary from business to busi- the threat landscape and cybercriminals’ and void. Educating employees on the signs ness. Password update policies are always goals. After all, knowing your enemies will and dangers of cyber threats is key during a good place to begin, but also remember to give you a better chance of defeating them. this time of increased remote work, and is address who gets access to what systems as These are essential components of a com- often most effective when it is an ongoing well as which devices can be used to access prehensive cybersecurity strategy that can effort. Consider a mixed approach of online systems. Employees should only have per- grow along with a business: courses, awareness campaigns, in-person mission to the systems needed for their jobs. • Implement advanced tools. Thanks to sessions (when possible) and email remind- And, if your business plans to allow them increasingly sophisticated and diverse cy- ers. to use personal devices for work, it is your berattacks, businesses need a multi-layered Topics to cover should encompass the fol- responsibility to monitor, protect, encrypt approach to cybersecurity. Assess your net- lowing: and – in worst case scenarios – wipe these work’s strengths and weaknesses, then im- • Identify and avoid suspicious emails. devices. About the Author: Sean McCarthy is the Vice President of Business Development & Strategic Initiatives at Comcast and can be reached at Sean_mccarthy3@comcast.com, or (312) 415-50679. 13
BUSINESS DEVELOPMENT COMBATING NEGATIVE PUBLICITY: PITFALLS & BEST PRACTICES SmithamUNDSEN LLC T he manufacturing industry is not for good reason, bad reason or no rea- ny’s bottom line. That employee may immune to damaging publicity. son at all. even sway his or her colleagues to unite The old saying, “if it bleeds, it An accident on the job, for instance, and rise against unfavorable working reads,” speaks to the notion that to cap- may result in a new wave of safety conditions or benefits. They often turn tivate an audience you must report on complaints or prompt an OSHA inves- to social media to proclaim their dis- something scandalous. The kind of tigation. Aggressive personal injury at- pleasure or solicit others to stand in headlines that draw in readers to the torneys will do what they can to high- solidarity. A story is more compelling salacious, the criminal, or that cele- light your failed policies and negligent when there are a pattern of complaints brates the underdog. This is the same supervisors. If litigation ensues, they and a group of scorned employees will- front-page news that can demolish the are likely to scrutinize your workforce ing to go on record. reputation of a business built on gener- to maximize their recovery. If the press On the consumer side, news of con- ations of integrity, blood, sweat, and gets wind of it, you may have to defend tamination in a food processing plant balance sheets. the company’s actions in the unforgiv- will cause shoppers to think twice be- Harmful publicity is most often fu- ing court of public opinion. fore choosing that brand at the grocery eled by employee grievances or con- Similarly, executive-level decisions store. In the same way a public recall of sumer complaints. With the prevalence can be misinterpreted and lead to as- a component on the supply chain might of online consumer reviews and merci- sumptions, angst and a breakdown in be devastating to the brand of the cus- less labor organizations, companies and morale. An ordinary employee has the tomer-facing producer. Finger pointing their executives are vulnerable to attack extraordinary ability to affect a compa- and breach of warranty claims go hand- About the Author: Ryan Jacobson is a partner at SmithAmundsen LLC and can be reached at rjacobson@salawus.com, or (312) 894-3252. 14
in-hand when the business harmed cies considered experts in the field. Be • When details (accurate or inaccu- needs to save face and recoup financial specific and stand firmly behind the au- rate) could spread to other employees, losses. thorities you have relied upon, and the affiliate vendors, customers or inves- Managing the expectations of your steps you have taken to rectify the prob- tors. consumers, and of your workforce, is lem. Alert those concerned that you are an important place to start. Executives routinely monitoring the situation and Do’s and Don’ts to who identify the problem and work dil- staying abreast of any changes in the Combatting Negative Publicity igently to arrive at viable solutions will law or recommended best practices. Do • DO anticipate your company’s gain a head start toward preserving the not speak generically of your plan; rath- risks, educate your workforce, commu- status quo. er, draft a comprehensive, safety proto- nicate policies in writing and reinforce But you cannot stop there. Leadership col with a cover letter to your workforce during training. must dive into the heads of its consum- summarizing the key measures under- • DO make sure not all incidents ele- ers, or its personnel, to gain perspec- taken. Consider providing to the prob- vate to “crisis level.” tive on how the matter has impacted ing reporter a copy of the protocol to • DO carefully consider and desig- them psychologically. Armed with that demonstrate his source spared some of nate a company spokesperson. insight, a true leader will develop uni- the key details. It will also reinforce that • DO lawyer up (and coordinate with form and clear assurances before those your organization had a plan in place any existing marketing/PR Profession- ‘affected’ muster up the nerve to be- before the story broke. al). smirch you from the mountain tops. Ultimately, everyone wants to be • DO employ a “Triage” process: Even worse, those who feel wronged ‘heard,’ which means repeating the Prioritize Discovery, Communication, might instigate a federal investigation concern and explaining the steps the Solution, Accountability, and Recovery. or enlist an employee-rights advocacy business has taken to reconcile the per- • DO stay composed and consistent group to vilify your business and its ceived problem. Debating each false with your message. operators. In other words, address the accusation lets the accuser control the • DO expect and plan for Media Cov- wound before it becomes infected. narrative. Clear up any material mis- erage and Requests for Comment. Media coverage will no doubt acceler- understanding but focus your response • DO monitor company website, re- ate the harm; it is never too late to chal- (or press release) on the efforts it has (or view sites, social media and press. lenge the storyline with a well-crafted will) undertake to correct the problem. • DO lay low and “weather the storm” statement from the company president Use this opportunity to educate the mis- after the first wave of publicity. or its outside counsel. Manufacturers informed and instill confidence in the • DO address the matter internally should be prepared to act swiftly and detractors that you have the situation and externally with succinct, carefully trust their network of advisors to pre- under control. crafted, consistent statements. serve the reputation it took them de- • DO NOT respond directly to critical cades to build. What “Situations” Cause the posts or engage in a back-and-forth on To illustrate, a company who suffers Most Embarrassment social media or in the comments section the loss of an employee to COVID-19 • Federal Investigations (OSHA, SEC, of any article. may have to refute unsupported allega- FDA, CDC, EEOC, IRS) • DO NOT hide behind the phrase tions that the victim was infected on the • Local Government Audits, Health “No Comment” or become unavailable job and counter fears that other factory Inspections and Recalls or non-responsive. workers were exposed. That may lead • Harassment and Discrimination • DO NOT post clarifications or up- to the assumption that the company is Claims dates; it will only serve as fuel to a head- unwilling to invest in personal protec- • Class Action Lawsuits and other line you want to be yesterday’s news. tive equipment, or it was otherwise lax Litigation • DO NOT consult people outside of in its sanitization procedures – all of • Foodborne Illness and/or Adulter- your trusted circle. which may be patently false. Any relat- ated Food Products • DO NOT give in to emotion or offer ed news coverage may likewise impact • Employee/Partner Misconduct in- up your personal perspectives. the company’s image with its custom- cluding Fraud and Embezzlement • DO NOT speak off the cuff. ers. • Data Security Breaches including • DO NOT be reactive – be proactive. The best way to combat this unex- Loss or Release of Confidential Infor- • DO NOT issue a denial before you pected publicity is to tackle the problem mation have all of the facts. head-on. Make it clear that the safety • Other Public Scandals involving • DO NOT try and discredit the ac- and health of your employees at work is Key Personnel cuser, or seek to minimize the claim as a top priority. Instead of unhinging each false or blown out of proportion. blade of the rumor mill, explain that When is it Time to Strategize? • DO NOT reiterate the allegations in fear leads to assumptions, and those as- • When an internal “situation” has your statement. sumptions interfere with your ability to a likelihood of public exposure via lit- • DO NOT speculate or assume facts; message the rigorous safety measures igation, the press, social media, review perform a thorough investigation and the organization has employed to keep sites or word of mouth; recognize there are 3 sides to every sto- its workforce and their families safe. • When public exposure of that “sit- ry. Explain that these are unprecedented uation” could reasonably impact your • DO NOT retaliate against the accus- times. That you are doing your best to company’s brand, reputation, and/or er. research and comply with the guidelines put out by local, state and federal agen- seriously interfere with operations; and 15
abbvie: switching Gears to save lives I llinois manufacturers have proven time and time again manufacturing and R&D site to offer clinical COVID test- that their work is not only essential, but is crucial to the ing capability. Utilizing their Good Manufacturing Practice health, safety, and security of our nation. IMA members (GMP) capabilities, AbbVie is able to manufacture viral trans- across the state have literally and figuratively ‘switched port medium (VTM), which is necessary for preserving spec- gears’ in order to research and manufacture products to aid imen samples prior to lab testing, for the Illinois Department in the battle against the Coronavirus. AbbVie, a global bio- of Public Health and a number of other institutions. pharmaceutical company headquartered in North Chicago, “We are honored to have the capacity and expertise need- Illinois has shifted its operations to help produce more ed to provide these and many other forms of assistance. Our COVID-19 tests, donated money and supplies to the cause, company and our people are committed to continuing to use and partnered with health authorities and institutions around our tremendous resources to aid in the fight against this dev- the world to find a drug that treats COVID-19. astating pandemic,” Mr. Garich said. “When things are at their worst, we must be at our best When Governor JB Pritzker issued a call to action about the because our customers expect and deserve nothing less,” dangerously low supply of VTM in Illinois, AbbVie respond- said Russ Garich, Vice President, Operations. “As the battle ed. Working above and beyond their normal jobs and with- against COVID-19 is likely to continue, it’s important to re- out any previous VTM production experience, a small group member there are millions of patients around the world fight- of volunteer scientists at AbbVie developed new capabilities ing a variety of challenges every day, and they rely on our and processes to manufacture VTM, starting with approxi- products and services to thrive – sometimes even to survive.” mately 2,000 vials per week. To support Illinois’ goal of per- Prior to the COVID-19 outbreak, AbbVie’s Illinois facilities forming 10,000 tests a day, AbbVie’s scientists stepped up to focused primarily on manufacturing their industry-leading the challenge and applied techniques normally used for cell portfolio of treatments for cancer, chronic immunology dis- culture, virology research and microbiology to set up a man- eases and more. Following the outbreak, AbbVie expanded ual manufacturing process that is able to deliver on the large their focus to include helping provide necessary equipment, volume of samples requested by the state. AbbVie’s volunteer resources and testing products for local and global communi- team has since grown to more than 50 scientists to help ramp ties in response to the health crisis. up production of these essential VTM materials, which in- AbbVie’s laboratory expertise has made the company a sig- cludes vials, reagent and labels, and the company committed nificant asset in the fight against COVID-19. Given the need to manufacturing approximately 40,000 vials a week through to significantly increase access to testing, AbbVie has been early June. working with health authorities in both Illinois and Lud- Additionally, the R&D team at AbbVie has taken swift ac- wigshafen, Germany, where the company operates a major tion to look at their existing medicines and pipeline assets 16
AbbVie is working with health authorities and institutions around the world to research and develop a treatment for COVID-19. AbbVie has donated money and medication to fight against coronavirus. AbbVie ensures that patients across the globe get the medicines they need. to assess their efficacy as potential treatments for COVID-19. capabilities are critical to support communities across the AbbVie is collaborating with health authorities and academic globe, and the company has remained focused on helping institutions globally to support clinical trials of KALETRA, a make a difference for those impacted. AbbVie is working in protease inhibitor approved for the treatment of HIV infec- partnership with health authorities, companies and academ- tion, to determine whether it has potential use for COVID-19. ic institutions globally, such as a collaboration to develop a AbbVie has also initiated a study to determine whether IM- novel antibody therapeutic to prevent and treat COVID-19. BRUVICA, which treats certain cancers including mantle cell Several of the companies’ medications have been or are con- lymphoma and chronic lymphocytic leukemia, is able to im- tinuing to be investigated as possible therapies to treat the prove the outcomes of COVID-19 patients by blunting the novel coronavirus. At the same time, the company is ensur- overly exuberant immune response, often referred to as the ing that the supply of critical medicines it produces remains cytokine storm, that contributes to the morbidity and mortal- uninterrupted for the patients who rely on those medicines ity of the virus. around the world. “Our talented professionals and employees have been sig- “As countries and communities around the globe strug- nificant assets to the community during this time, and many gle to meet patient and resource demands, it is imperative have leveraged their relevant medical, scientific and public that large organizations with the capacity and resources to health expertise to support the fight against this pandemic help step up,” Mr. Garich said. “Alone, we can only do so on the front lines,” Mr. Garich said. “AbbVie has allocated much. Together with other organizations, we can leverage our resources to empower employees to take action and enable unique resources and expertise to work more efficiently and them to participate, offering full pay, benefits, and the ability effectively toward a common goal.” to return to their position after completing their service, as While focusing on the crisis at hand, AbbVie has been well as offering a 2:1 donation matching program to encour- working diligently to ensure that the business continues to age employee giving. We believe that leveraging our capabil- operate properly while keeping employees safe. Though it ities and expertise to help combat this virus is the right thing has been a challenge to navigate the ever-evolving landscape to do.” of a global pandemic, AbbVie has continued to provide the Recently, AbbVie announced a $35 million donation to medicines that patients need while providing aid, including benefit several non-profit organizations fighting COVID-19 product donation and financial assistance, to communities in on the front lines. This donation has helped support many need in Chicago and beyond. The IMA is honored to work important initiatives, including International Medical Corps, with Illinois manufacturers not just to boldly move makers, Direct Relief and Feeding America. but the entire world, forward. Now more than ever, AbbVie’s manufacturing and R&D 17
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