GENEDGE Annual Report 2017

Annual Report 2017

innovate. compete. grow.

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innovate. compete. grow.

Governance The Commonwealth of Virginia is represented by our Board of Trustees, which is a fiduciary board appointed by the Governor. Key members of our board are also advocates of manufacturing through the Governor’s Manufacturing Advisory Board, an entity which serves as a policy resource for the Governor and his cabinet.

Message from FY2017 Board Chair It is a privilege and an honor to serve the Commonwealth of Virginia and to participate as chair of the GENEDGE Board of Trustees. Over the last two years, I’ve witnessed both political parties support the mission of GENEDGE Alliance, formerly Virginia’s Philpott Manufacturing Extension Partnership (VPMEP) and this collaboration between both parties is strengthening the manufacturing base in our state. As Virginia continues to tackle complex economic challenges, it is inspiring to see that the investments made in GENEDGE are truly yielding financial resiliency to manufacturing businesses across the state. As President and CEO of Global Metal Finishing, my company supports supply chains of original equipment manufacturers (OEMs) and machine shops in the Mid-Atlantic and Southeastern regions of the country. The in-depth data provided to my company through GENEDGE has encouraged my management team to set lofty goals and focus on 2020. I call upon all manufacturers, state representatives and educators to encourage their friends and affiliates to connect with GENEDGE. Open your channels of communication and watch the exponential growth in business for the Commonwealth.

FY2018 Chair and Vice Chair: Tamea L. Franco , Chair

Marc Foglia , Vice Chair President & Co-Founder, NVIS, Inc.

President / CEO, Global Metal Finishing; Chair, GENEDGE Executive Committee Board Members: Dr. Makola M. Abdullah , President

Marilyn Hanover , President Hanover Business Solutions, LLC The Honorable Todd Haymore Secretary of Commerce & Trade Roy C. Irvine , Quality Manager Diversified Converters, Inc. The Honorable Karen Jackson Secretary of Technology Jeffrey S. Jaycox , President / Owner Tabet Manufacturing Co. David R. Lohr , President / CEO Navigation Point Advisors Kevin N. Mumpower , Vice President of Engineering Bristol Compressors International, LLC

Virginia State University Ed Albrigo , President Center for Innovative Technology (CIT) Jonathan R. Alger , President James Madison University Dr. Kevin Creehan , Business Development Manager Arconic Hans de Koning , President Flexicell, Inc. Dr. John T. Dever, President Thomas Nelson Community College

Dr. John A. Downey , President Blue Ridge Community College Dr. Tiffany McKillip Franks , President Averett University Douglas Frost , Senior Vice President Dewberry, LLC Richard J. Gagliano , President / CEO AccuTec Blades, Inc. Aviv Goldsmith , President Precursor Systems, Inc.

Dr. Bruce Scism , President Danville Community College Dr. Wayne P. Stilwell , CEO

Stilwell Technology and Robotics; Chair, GENEDGE HR Committee Chair, GENEDGE Strategic Planning Committee Meiky Tollman , Chief of Operations and Supply Chain Sabra Dipping Company

Tamea L. Franco President / CEO Global Metal Finishing, Inc. FY2017 GENEDGE Board Chair

Our Vision : Virginia’s “go-to” resource that accelerates the growth of quality jobs for manufacturing, technology and industrial clusters. Our Mission: GENEDGE is Virginia’s best public resource to help manufacturing and industry innovate, compete, and grow.

https://youtu.be/ud-3fvo25eA

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2017Highlights

It’s All About Growth Growth has been a key focus in 2017. The Domestic Markets Expansion Program completed its third year via a competitive funding model administered by a Board of Trustees led panel. Twelve companies were selected on merit for assistance in commercialization. Greg Glaros and SYNEXXUS introduced their new product, an Industrial Internet of Things (IIoT) architecture which helps create “Smart Cities” that can better manage assets and increase safety, using remote access to connect and control LED streetlights, sensors and technologies over the same network.

Gregory Glaros, Chief Executive Officer and Chief Technical Officer

https://youtu.be/juhUXR1f0Eg

GENEDGE’s proven existing industry accelerator process is now being leveraged in other economic development activities, such as scale-up assistance supporting traded cluster expansion for GO Virginia regions and our coal field diversification program in southwest Virginia. Project manager led student teams from Virginia Tech and Virginia State delivered high impact services for companies throughout the state. One Virginia Tech team partnered with the Virginia Department of Mines, Minerals, and Energy (DMME) to develop a methodology using a cloud-based mapping platform to select ideal abandoned coal mine sites to be transformed into pumped storage hydropower plants. Our student team footprint expands in 2018 with new program partners Averett University and James Madison University. The Governor recognized the importance of manufacturing to Virginia through an official proclamation recognizing Manufacturing Day. GENEDGE supports manufacturers’ efforts across the state to share their stories via site visits from local school systems. This outreach makes a difference in attracting young adults to manufacturing as a good career choice. As GENEDGE finalizes our 2018 Strategic Plan, we embrace a new vision, supporting a bold strategic change in the importance of existing industry to state economic development. We look forward to dramatically increasing our contribution toward making Virginia a global growth leader driven by a thriving statewide private sector. Bill Donohue, President / ED

Virginia State University Honors Program / GENEDGE Partnership

GENEDGE helped 168 companies achieve in 2017: $97.8 million grow / retain revenues $66.2 million cost savings

$72.9 million capital investments made $85.5 million bottom-line impact total 752 created / retained jobs

Bill Donohue President / Executive Director

*Source: U.S. Department of Commerce / Independent Survey of Clients

innovate. compete. grow. 4 Our Market

“GENEDGE’s collaboration with Appalachian Power and the Danville chapter of the Association of Energy Engineers has enabled our customer service engineers, account managers and customers to attend local Certified Energy Manager training and obtain this internationally recognized credential. This training is very beneficial because it improves our knowledge which enables us to better assist our customers, helping them to become more efficient and lower their energy costs!” - David Nance, Customer Services Manager, APCO, Roanoke, Va. Energy Manager Training and Certification

GENEDGE’s core market consists of 10,539 companies in the manufacturing, engineering, and technology sectors. They employ 318,550 and represent 15% of the Virginia GDP.

She

Rockingham

Clients served

Harrisonburg

Highland

GENEDGE offices

Staunton

Augusta

Waynesboro

Bath

Al

Rockbridge

Covington

Lexington

Nelson

Buena Vista

Alleghany

Amherst

Botetourt

Buckin

Craig

Lynchburg

Appomattox

Bedford City

Roanoke

Giles

City Salem

Buchanan

Bedford County

Montgomery

Campbell

Roanoke County

Bland

Dickenson

Radford

Tazewell

Pulaski

Charl

Wise

Franklin County

Russell

Norton

Wythe

Floyd

Smyth

Pittsylvania

Halifax

Scott

Washington

Carroll

Lee

Martinsville

Patrick

Galax

Grayson

Henry

Bristol

Danville

“We design and build all of our own equipment, but to go to market you have to know which product approvals you need to sell into various countries, for example South Africa, the U.K., or Canada. Each country has varying requirements. GENEDGE really helped us learn which are the important approvals, how we should prioritize them, and the project management steps to get them completed.” - Christa Glassburn, Chief Operating Officer, The PBE Group, Tazewell, Va. Go-to-Market Strategy

“It is no secret that one of the challenges for manufacturers today is a lack of a qualified workforce. SVAM would like to thank GENEDGE for your partnership and efforts to put together a regional video that highlights careers in manufacturing in southwest Virginia which will help to recruit and engage potential employees in manufacturing.” - Lennie Gail Mitcham, Executive Director, Southwest Virginia Alliance for Manufacturing, Inc., Abingdon, Va. Manufacturing Career Video

Manufacturing Day Event

“Our participation in Manufacturing Day is helpful to the community in showcasing advanced manufacturing opportunities in Martinsville-Henry County. It is helpful to us as we meet some very qualified candidates who participate in the program. We are very thankful for our partners for arranging this event.” - Glenn E. Wood, Human Resources Manager, Arconic, Martinsville, Va.

https://youtu.be/Ls5LvU3UzeE

https://youtu.be/aKrtahrEkDk

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“GENEDGE has been a valuable partner along our Continuous Improvement journey. They have provided training in structured problem solving, helped us gain our ISO 9001 certification and have also provided training in Lean Six Sigma. They have been instrumental in helping us improve our processes both in the manufacturing and administrative areas.” - Tom Doyle, Director QA & Mfg Engineering, National Optronics, Charlottesville, Va. Process Improvement

Our Customers

Frederick

Winchester

Clarke

Loudoun

Warren

Falls Church Arlington

Fauquier

andoah

Fairfax City

“Through extensive research, GENEDGE helped us identify the Health IT sectors that would lead to the greatest opportunities based on our expertise. That information gave us insight and a path forward on how to best approach the Health IT market and create a successful plan to expand our marketing reach.” - Sharon Muniz, President, NCN Technology, Reston, Va. New Markets

Alexandria

Manassas Manassas Park

Fairfax County

Rappahannock

Prince William

Page

Culpeper

Stafford

Madison

Greene

Fredericksburg

King George

Orange

Spotsylvania

“GENEDGE through the DMEP program greatly enhanced our innovation cycle and gave us the tools we needed to accelerate commercialization of our defense-centric services. They helped us identify and close our value gaps throughout the process of translating concepts into new offerings. Because of the dedicated GENEDGE staff, we are on a positive growth trajectory that will have an impact on our business over the next decade.” - Robert Campbell, CEO, Alliance Solutions Group, Newport News, Va.

Westmoreland

harlottesville

Caroline

Louisa

Richmond County

emarle

Northumberland

Essex

Product Development

Fluvanna

King William

Hanover

King and Queen

Lancaster

Accomack

Goochland

Middlesex

https://youtu.be/NtXfq5hytrI

Richmond City

Powhatan

ham

Cumberland

New Kent

Henrico

Mathews

Northampton

James City

Gloucester

Chesterfield

Charles City

Amelia

Hopewell

Williamsburg

Colonial Heights

Prince Edward

Prince George

York

Petersburg

Newport News

“The ExporTech Program, under the guidance provided by GENEDGE and the continuing support from ODU and Norfolk Economic Development, has been a strong guiding star for our efforts. We greatly appreciated the information we gained during this series of meetings and would recommend any small business looking to expand its international footprint to become involved in this program. Thanks a million for your expertise and guidance.” - Ernie Florestano, President/CEO, Descal-A-Matic Corp., Norfolk, Va. Export

Nottoway

Poquoson

Surry

Dinwiddie

tte

Hampton

Lunenburg

Isle of Wight

Sussex

Norfolk

Portsmouth

Virginia Beach

Brunswick

Emporia

Franklin City

Mecklenburg

Southampton

Chesapeake

Suffolk

Greensville

Access to Federal Labs

Quality Systems

“Frank was an invaluable asset during our ISO 9001:2008 to 2015 transition. He provided a structured plan to guide us through the necessary actions we needed to take to achieve certification status. The ISO auditor commented that “whoever prepared you guys for the audit did a great job!” Thanks to GENEDGE’s efforts, we were able to quickly complete the audit, and successfully transition to the 2015 system with ease.” - Allen Cowan, Quality Manager, ERNI Electronics, Richmond, Va.

“GENEDGE connected our small company with NASA Langley Research Center so that our medical device could be tested at their state-of-the-art facilities. The testing results were included in our patent applications to help secure the intellectual property for our device.” - Elaine L. Horn-Ranney, PhD, President & CEO, Tympanogen, Norfolk, Va.

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innovate. compete. grow.

Emerging Needs Reported by C-Suite Execs

Customer Needs

In 2017, we conducted a market research study to gather information on customer needs anticipated in the next three years. A telephone survey to C-Level executives was performed by an independent firm. We surveyed 100 companies representative of the small- and medium-sized manufacturing, technology, and engineering services companies throughout the Commonwealth. The survey asked open-ended questions regarding their strategic intent for the business in the next three years, what roadblocks they face, and what is coming that may force their hand . We also asked them what skills and capabilities they lack, how they measure their performance , and who they turn to for objective advice . Employee talent was universally discussed. Recruiting and retaining qualified engineers, project managers, sales, IT, finance, and management staff was mentioned twice as often as the need for machinists, technicians and maintenance personnel. We observed a shift from historical focus on operational challenges to a desire for business growth and new customers . Companies expressed a need for access to consistent and available capital ; supply chain attention for continuity as well as better pricing; staying on top of and implementing new and changing technologies ; overcoming competition with better equipment and more emphasis on foreign competition; and succession planning to turn the company over to the next generation. We look forward to helping companies successfully address these crucial pain points as we move forward into 2018 and beyond.

Increased Sales

“The GENEDGE team has helped us with subject matter experts for website design and SEO (Search Engine Optimization) to grow our online footprint and funnel customer RFQ’s in to our inside sales team. Steel America has gained new customers, increased sales, and added new jobs this year. Our teamwork with GENEDGE has helped grow our business!” - Kenny Mebane, Vice President, Steel America, Norfolk, Va.

https://youtu.be/viS5QKF4uS0

Affordable High Quality Consulting

“GENEDGE has been a trusted advisor to all of us at EMSCO for over five years. They helped us with plant layout when we moved to a brand new building, mentored us on putting Lean principles into action and hosted an on-site exercise. They are presently working with us to implement a strategic plan. GENEDGE is an affordable, high quality resource for manufacturing companies in Virginia.” - Parker Garrett, Owner & Engineer, EMSCO, Ashland, Va.

Innovate

Compete

Grow

Environmental Compliance

“GENEDGE did an excellent job of helping us with the air permit paperwork. We were lost as to how to fill them out.” - Tiffany Norris, Owner, NorrisBuilt Fabrication, Welding, Machine, and Repair, Norton, Va.

Virginia Manufacturing & Technology Companies' Strategic Challenges Anticipated 2018-2020

Succession Planning Operational Efficiencies Supply Chain Product Development Technology Adoption Financing Economic/Gov/Regs Employee Recruitment Growth, Sales

Strategic Growth

“The EDGE program proved extraordinarily beneficial to Micronic. We were adrift in market focus and GENEDGE provided excellent consulting, practical exercises, tools, employee engagement, and results that directed the company into a market pivot. This will improve our ability to secure investors because our market focus is more coherent.” - Karen Sorber, CEO, Micronic Technologies, Wise, Va.

0

10

20

30

40

50

60

70

80

Source: Independent Survey Amruta, Inc.

GENEDGE Clients' Important Strategic Challenges 2014-2017

Employee Recruitment Product Development Growth Opportunity Cost Reduction

Accelerating Time to Market

“The GENEDGE team was very helpful in identifying and facilitating engagement with key technology partners who proved to be instrumental in finalizing our product offering and accelerating our time to market.” - Bill Stulb, President and COO, Spectrum, Newport News, Va.

Technology needs Manage Partners Sustainability

Exporting Financing

0

10

20

30

40

50

60

70

80

https://youtu.be/Sl_l-uL3SQ0

Source: Independent NIST Survey

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HowWe Deliver

Consulting Services Delivery GENEDGE helps industries innovate , compete , and grow . Partnerships with the Old Dominion University Center for Enterprise Innovation (ODU CEI) in Norfolk and the Manufacturing Technology Center (MTC) in Wytheville provide additional expertise to deliver MEP services statewide.

GENEDGE Staff, Partners & Alumni 2017

Services Supply Chain Providers GENEDGE maintains strong working relationships with numerous partners.

Projected Revenues FY18 *Source: GENEDGE Budget

 $1,093,862  ; 20%  

,870,000  ; 33%  

Marketing Communications: AIM Custom Media LLC Cranium21 & Sync21 Focus Marketing Fresh Level Productions iMotion Studios LLC LMD Consulting LLC Neathawk Dubuque & Packett

Research and Analytics: Amruta Inc Data Resource Systems

$1,093,862

$1,870,000

Hawkeye Business Solutions Karron Myrick Consulting LLC The Launch Place Mangum Economic Consulting LLC ORI RTI International

20%

Commonwealth of Virginia     NIST  cooperaDve agreement   Other grants   Fees     Co nwealth of Virginia NI Grants and programs Client

33%

Quality and Environmental: DP Distribution Quality Systems Registrars Inc Circle Safety & Health Consultants LLC

Management Consulting/ Project Management: Better Solutions for Biz HR Business Solutions Inc

Technology and Engineering: AVID LLC BGB Technology Cahill Consulting LLC Chemical Process Consulting LLC Engineering Development Laboratory

31%

16%

$1,722,571  $1,722,571  ; 31%  

Inertial Labs Inc Louisiana Tech NCN Technology Osprey Design Group LLC S + S Consulting Spark Product Development ZF Energy

$905,000

05,000  ; 16%  

GENEDGE operates the following PROGRAMS for specific markets and sectors to affordably deliver top and bottom line growth assistance.

Community College & State University Partners

ForVirginiaSmallAdvancedManufacturers EDGE E nterprise D evelopment G rowth E ngine

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innovate. compete. grow.

Other Partnerships

Delivered Impact *

*Source: U.S. Department of Commerce / Independent Survey of Clients

2000-2016 GENEDGE Client Impact

Every  client $  spent  returns $25   Every cli pent returns $25

 $30    

$2.1 billion sales increased or retained $1.4 billion cost savings $1.7 billion bottom line impact $444 million investments made to operations 11,618 jobs created or retained

 $25    

 $20    

 $15    

 $25    

 $10    

 $5    

 $1    

 $-­‐        

$  Investment  

Client ROI  

Net Promoter Score  (Out of 10)   Net Promoter S r ( ut of 10)

GENEDGE Cumulative Economic Impact

8.7   8.8   8.9   9.0   9.1   9.2   9.3   9.4   9.5   9.6  

2014  

2015  

2016  

Headquarters: 32 Bridge Street • Suite 200 Martinsville, VA 24112 Phone: (276) 666-8890 www.genedge.org Contact Us

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