Hartford Business Journal

HARTFORDBUSINESS.COM | JANUARY 8, 2024 27 INDUSTRY OUTLOOK | MANUFACTURING and Bigelow Tea in Fairfield have implemented automation technolo- gies for their shipping and handling logistical needs. Those investments allow manufacturers to upskill workers who would typically handle those jobs. "This is turning to technology when you can't find the people, and figuring out where the technology helps you create that additional capacity," DiPentima said. "Then, you're able to upskill those people, who move to higher-level jobs that pay them more money with better benefits. It's a win-win all around." Clive Cunliffe is the president of Pietro Rosa Group North America, parent company of Famington-based New England Airfoil Products (NEAP), which makes precision parts and tools used in aerospace and other industries. Cunliffe said the digital transfor- mation in manufacturing, such as the seamless linkage and sharing of information between machines and production lines, is "undeniable" and important. "With a substantial talent pool and home to one of the big three aero-engine manufacturers, Connecticut's manufacturing environment is not only renowned but also characterized by higher operational costs," he said. "Conse- quently, achieving and sustaining efficiencies becomes paramount for success." Pietro Rosa in 2022 purchased AI-based knowledge management company R-Tree Technologies, and is implementing the company's tech- nology in its subsidiary businesses internationally, including at New England Airfoil Products. R-Tree uses a company's data, research and other knowledge sources to create a searchable and all-encompassing database that can generate quick answers to specific employee questions. Noujaim said cybersecurity is a growing concern for manufacturers, and creates an added cost of doing business. Supply chain management Supply chain resilience is also a major focus area coming out of the pandemic, experts said. "Achieving supply chain visibility, resilience and control is more diffi- cult than ever," Cunliffe said. "The geopolitical landscape that exists today, along with commercial travel increasing to near pre-pandemic levels, combine to give a bow-wave of requirements that the industry is struggling to satisfy. Our industry is very susceptible to a wide range of technical challenges, changes and the use of exotic materials, which makes meticulous planning and constant vigilance essential to mitigate the substantial risk of supply chain breakdowns." Lavoie said shortening supply chains, sometimes through vertical integration, is crucial. "A big lesson learned from the pandemic is that a wide-ranging supply chain is difficult to manage," he said. "We will see reshoring activity, manufacturers looking to do business with other Connecticut manufacturing companies and vertical integration investments that move key component manufacturing in-house." In collaboration with manufacturing consultant firm CONNSTEP, the state this year launched the CONNEX Connecticut online database as a way to connect local and U.S. manu- facturers with potential suppliers and customers. More than 500 manu- facturers across the country have registered with the database, said CBIA's DiPentima. "It's about connecting all levels of the supply chain together, and making people aware of the 4,000- plus manufacturers that we have in Connecticut and all the capabilities that they have," DiPentima said. "This opportunity to buy local and control your supply chain is much better because it's easy to just jump in a car, drive up and visit someone, than getting on a video with them or going on an airplane." Clive Cunliffe PFAS will be increasing concern for manufacturers in year ahead By Megan Baroni, Abby Warren and Jeff White A s we head into 2024, here are three trends that manu- facturers of all sizes should be watching. Environmental health and safety PFAS — perfluoroalkyl and poly- fluoroalkyl substances — have been on the scene for years now, but we expect to see exponential growth in all things PFAS in 2024. Governmental and private party PFAS investigations have significantly increased and, as they say, when you look for PFAS, you find them. PFAS have been detected in a significant number of public drinking water systems, wastewater treatment facilities, private wells, surface water bodies, fish tissues and elsewhere, both in Connecticut and nationally. Federal and state governments are also increasingly requiring manu- facturers and distributors to report whether there are any PFAS in the products they make, use or distribute. All of this investigation and reporting will lead to increased governmental and regulatory knowl- edge and awareness of the presence of PFAS in the environment and in a wide variety of products. With this increased knowledge comes increased regulatory, scientific and legal action. The Environmental Protection Agency has made addressing PFAS exposure a federal enforcement priority for 2024-2027. In addition, EPA plans to list two PFAS compounds, perfluo- rooctanoic acid and perfluorooctanesulfonic acid, as hazardous substances under the Comprehensive Environmental Response, Compensa- tion, and Liability Act. This will significantly increase the EPA's ability to require PFAS inves- tigations across the country. And when PFAS are found, remediation typically must occur to minimize public exposure. Increased knowledge of the pres- ence and potential harms associated with PFAS has increased litigation around the country. This litigation trend will continue to increase as we become increasingly aware of the ubiquity of these compounds. Labor inclusion and retention Over the last few years, there has been an increased focus on diver- sity, equity, inclusion and belonging (DEIB) in the workplace. Manufacturers have engaged in training, coaching, town halls and events aimed at increasing dialogue, and other initiatives that engage employees across the workforce. A range of available statistics show that Generation Z (born in late 1990s to early 2000s) views gender expres- sion and identity very differently than prior generations, in that they are more open in their perspectives and statistically have higher rates of identifying as non-binary, among other identifications. There have been societal and also legal shifts with regard to views on sex and gender. Just a few years ago, the Supreme Court greatly expanded its inter- pretation of "sex" as it relates to discrimination prohibited under federal anti-discrimination law, to include sex, gender identity, gender expression, transgender status and sexual orientation. The generational views of sex and gender expression/identity are critically important for employers and supervisors to understand because they can impact an employer's ability to: attract employees who are searching for an inclusive work- place; manage competently; and engage respectfully and with under- standing as it relates to this aspect of employee identity. The focus on gender/sex will increase and, with it, so will the need for training, coaching, benefits reviews, policy revisions, and similar changes in aspects of human resources. Corporate compliance COVID-19 exposed the weak- nesses in our global supply chains and in the business-to-business contracts that drive the entire system. Manufacturers need to review their long-term agreements or standard terms and conditions if they sell "purchase order to purchase order." Most manufacturers are on high alert for business and/or legal terms that can signifi- cantly impact their margins, legal rights, etc. What has changed in the past few years that will only increase in 2024? The rise in the use of contractual templates. Companies — big and small — are looking for ways to make their contracting process more "efficient," and thus, everyone is pulling out a template that has been approved up the chain of command. These templates are filled with contractual clauses — some that make sense and others that do not. These templates also contain clauses that often have no relevance to the actual contractual negotiation that is going on. Templates have made contracts longer in length — not shorter. And, because of all the extraneous language and clauses that are included to make the template effec- tive, the negotiations are dragging on for months. Time will tell if the manufacturing industry moves away from the templates to get deals done quicker in 2024 and beyond. Megan Baroni, Abby Warren and Jeff White are partners at Robinson+ Cole LLP. They lead the firm's manu- facturing law practice and oversee the Manufacturing Law Blog. Megan Baroni Jeff White Abby Warren

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