INSIGHTS
SUMMER 2016
726 Exchange StreetSuite 812Buffalo, NY 14210insyte-consulting.com
PHONE: 716 636 3626
LEARN MORE ABOUT WORKING WITH INSYTE CONSULTING AT INSYTE-CONSULTING.COM
ON THE COVER: GINTZLER INTERNATIONAL, PHOTO BY JOE CASCIO
I’M PROUD TO ANNOUNCE THAT INSYTE HAS SURPASSED $2 BILLION IN CLIENT IMPACT IN WESTERN NEW YORK SINCE 2000, more
than $1 billion of which has come since
the beginning of 2013, a clear indication
that the pace of WNY manufacturing
improvement in our area is accelerating.
Manufacturing GDP for WNY now
exceeds $8 billion per year while direct
manufacturing employment exceeds
60,000. More than one in ten jobs in
WNY is in manufacturing and that is
only the beginning. Important new
assets like Buffalo Manufacturing
Works and the nascent Workforce
Training Center are poised to offer new
opportunities for WNY manufacturers
to secure real competitive advantage.
At Insyte, we’re particularly excited
about creating or saving more than
10,500 jobs as part of our work. This
is the real human impact of what we
do, since every one of those jobs comes
with an individual story of a friend, a
neighbor or even a relative. Keeping and
growing high-paying manufacturing
jobs is what we do. Insyte’s average
cost per job created or saved is less than
$1,200.
WNY’s manufacturing performance
has made Insyte the top-performing
entity in the Manufacturing Extension
Partnership (MEP), a federal program,
comprised of more than 60 centers
across the country, that provides
some of our funding. Together with
our manufacturing clients, Insyte has
generated the most impact per federal
dollar invested of any MEP center in the
nation since 2013.
It is important to understand that
these impact figures are not our own
guesstimates, but come from our
clients via an independent survey
process conducted on behalf of the
U.S. Department of Commerce, which
runs the MEP program. Here is the
breakdown of WNY impacts, as reported
by our clients:
Two billion dollars is a big number and
difficult to grasp, so here’s another way
to picture it: if you stacked $2 billion in
$1 bills on top of each other, they’d be
717,020 feet, or 125.8 miles, tall—high
enough to reach low earth orbit. Two
billion dollars is big, but the potential of
WNY manufacturing is even bigger. For
manufacturers committed to growing
and improving their business, the
sky is the limit, now that important
and powerful new assets have been
created here specifically to help you
succeed. At Insyte, we look forward to
many more jobs created and saved and
many more positive impacts for WNY
manufacturers.
COMPANY Gintzler International is a leading narrow web label, shrink sleeve and product identification printer
and converter, specializing in servicing the prime consumer product and pharmaceutical packaging industries.
Clients include Mabamex (Mattel Toys), Sorrento Cheese, Green Mountain Coffee Roasters, as well as several
pharmaceutical customers. Gintzler’s state-of-the-art production facility operates under cGMPs.
SITUATION Gintzler International was not certified to a formal quality management system, but desired to
compete in markets that required certification to the ISO 13485 medical device standard. Management felt
ISO 13485 certification would provide them significant improvement and growth opportunities.
SOLUTION Insyte Consulting performed a gap analysis between the company’s current quality system and the
requirements of ISO 13485 to determine Gintzler’s readiness to implement the standard. After reviewing the results
from the analysis, the company committed to pursuing ISO 13485 certification.
An Insyte-led project team utilized the gap analysis to make the required upgrades to the quality system. All personnel
were trained on the requirements and expectations of ISO 13485, and procedures were written and adopted by
the workforce. A team of internal auditors was trained, and audits of the new system were initiated. This proved
particularly effective in spreading the use and knowledge of the quality management system. In addition, management
review meetings drove continual improvement of the system, product quality and company performance.
Simultaneously, Gintzler decided to implement a new Enterprise Resource Planning (ERP) system. Management
believed this new ERP system would better manage quality system documentation and records, as well as enhance
data analysis and information sharing. Once the new ERP system was in place and the quality management system was
upgraded accordingly for consistency, Insyte performed a mock audit to ensure compliance to the ISO 13485 standard.
Gintzler’s certification audit was successful, with minor nonconformances that were quickly addressed; the
company was recommended for certification.
Case Study: Gintzler International
PRESIDENT’S MESSAGE: Insyte’s Impact Tops $2 Billion BY BEN RAND
“Insyte took time to understand our business and
our internal procedures ... and helped us find
solutions that best suited our specific situation.
As a result of Insyte’s efforts, Gintzler was
successful in achieving ISO certification.”
–BOB STRACH, VICE-PRESIDENT OF MANUFACTURING
RECOMMENDED FOR ISO 13485:2003 CERTIFICATIONBY A THIRD-PARTY REGISTRAR
5% REDUCTION IN RAW MATERIAL AS A PERCENTAGEOF SALES
32% REDUCTION IN SALES CREDITS
20% INCREASE IN PREVENTIVE ACTIONS
New & Retained Sales ............... $ 1,131,631,465
Capital Investments .................. $ 292,032,597
Savings & Cost Avoidance .................$ 105,732,487
Jobs Created or Saved (10,587) .........$ 512,273,169
TOTAL $2,041,669,718*Each job estimated at $48,387 in annual compensation
People know Insyte for consulting with manufactur-
ing companies, but you also do a lot of work with the
startup community. Can you talk about that?
Insyte has worked with startups since its founding,
more than 30 years ago. For many years, we man-
aged the UB Technology Incubator on Sweet Home
Road in collaboration with UB. I have served as Ex-
ecutive Director of the Western New York Venture
Association since I joined Insyte in 1994 and other
Insyte staff provide administrative support. Insyte
also manages the WNY Business Development Fund
with our partners at Empire State Development, the
Erie County IDA and UB. We also help companies ap-
ply for R&D funding through the federal Small Busi-
ness Innovation Research (SBIR) funding program.
Insyte’s been helping startups since the days when
virtually no one else was.
How has the entrepreneurial ecosystem changed over
the years in Western New York?
There’s a lot more emphasis on entrepreneurship now
and there’s more money and resources behind it. Twen-
ty years ago, you had the UB Incubator which was
really the only technology-focused incubator; Insyte
managed that in partnership with the university. About
15 years ago, UB hosted the first business plan contest,
the Henry A. Panasci Jr. Technology Entrepreneurship
Competition; now there are multiple pitch events and
competitions in the region. The Bright Buffalo Niagara
Forum continues to grow. We’ve got 43 North, which is
the world’s largest business plan competition. There’s
the New York State Student Competition. UB has start-
up programs like eLab and the Student Sandbox. 43
North, Z80 Labs and VCAMP have accelerator programs.
None of these existed five or ten years ago. These are all
things that have come on line in the relatively recent
past. It’s great to see. Insyte’s been a key part of that,
working with all these various entities in very much a
collaborative role.
What do you think this increased interest in entrepre-
neurship indicates about the changing business com-
munity in Western New York?
It shows we understand that we need to do more than
attract established companies from out of town—the
traditional economic development model—and we
need to help new ones as well if we’re going to grow the
local economy. It shows that people from various sec-
tors of the community—millennials who want to make
a difference; government; educational and research in-
stitutions; forward-thinking companies; and angel in-
vestors—are working together.
What are some pointers that you regularly provide to
startups?
There’s a lot more to starting and building a successful
business than having a great idea. The idea or technol-
ogy needs to be unique and innovative. It needs to fill
a customer need or want. Inventors or technologists
often only consider the product from their own per-
spective as opposed to the customer’s perspective. You
need a team. A lot of people view being an entrepre-
neur as going out and doing the heroic job of making a
company successful on their own. Good investors can
provide money and guidance but they also need to
own an appropriate share of the business. Many entre-
preneurs believe the sequence for starting a business is
to come up with an idea, develop a business plan, raise
money and then execute the plan and prove that the
idea is valid. But most investors are going to want to
see that you’ve begun to execute, that you’ve done that
testing and validation before they put their money in.
How valuable is Insyte to the startup community?
The advice that we provide helps startups increase their
chances to attract investors and build successful busi-
nesses. We helped build the WNY Venture Association
and the Buffalo Angels, which invested more than $1
million in local companies last year. We’re frequently
invited by our ecosystem partners to serve as present-
ers, judges or mentors in their events or programs, so
we must be adding value.
Employee Profile—Jack McGowan
In this issue of Insights, we talk with Jack McGowan about startup development. With years of experience on the Insyte team, Jack has long been dedicated to helping entrepreneurs evaluate, develop and fund their business ideas. Here, he discusses the role he plays on the Insyte team, with his clients and in the region’s startup community.
GET TO KNOW JACK AT INSYTE-CONSULTING.COM/MEET-INSYTE
Collaboration between promising startups and estab-
lished companies can provide benefits for both parties.
Startup companies often need experienced manage-
ment, production and distribution capabilities, and
other resources, to successfully launch and grow their
business. Existing companies often need new products,
new market opportunities and an infusion of entrepre-
neurial energy to sustain and grow their companies,
remain competitive and retain good employees. The
significant growth of the Western New York startup
ecosystem in recent years provides new business op-
portunities for local manufacturers and other compa-
nies. Here are some examples:
• Each of the two winners of the 2016 University at
Buffalo Henry A. Panasci Technology Entrepreneur-
ship Competition collaborated with local companies
to develop and test their products. The first place
winner, Buffalo Automation Group, is conducting a
pilot of BAG’s autonomous navigation technology for
watercraft with American Steamship Company. The
second place winner, Shay Bioproducts, is developing
a precious metal retrieval unit used to recover and
reuse pricey metals and has collaborated with local
manufacturer Precious Plate, Inc. Several UB programs,
including the UB Office of Research & Economic
Development, work with startups founded by UB
faculty or students that are seeking opportunities to
collaborate with industry.
• 43North is the world’s largest business plan
competition, with $5 million in prizes awarded
annually to companies from around the world who
locate in Buffalo. Winners include companies in
the biotech/healthcare, manufacturing, technology
and energy sectors. 43North has funded 21 startups,
many of which seek local suppliers, technical experts,
contract manufacturers and other business resources
and expertise. 43North winners receive free space
in the Thomas R. Beecher, Jr. Innovation Center on
the Buffalo Niagara Medical Campus. The Innovation
Center is also home to the Z80Labs Incubator and
the dig Buffalo co-working space, both of which
serve startups that are potential collaborators with
WNY businesses.
• LaunchNY supports startups in Upstate NY through a
team of Entrepreneurs in Residence and by providing
early-stage investment. LaunchNY seeks to engage
with potential investors and business supporters.
• The Western New York Venture Association facilitates
interaction between promising startups and the
broader business community through a series of
forums featuring “Shark Tank”-like presentations.
The Buffalo Angels, a division of the WNYVA which is
limited to high net worth individuals, meets monthly
to review WNYVA presenters and other investment
opportunities in greater detail and to collaborate on
due diligence and co-investment. Most Buffalo Angels
members are business professionals and company
owners. New members interested in early stage
investing are welcome.
• Several organizations offer education and networking
events such as Startup Grind Buffalo, the UB CBLS
Innovation Lecture Series and many others.
Insyte Consulting staff serve as mentors and business-
plan contest judges, and coordinate the Western New
York Venture Association/Buffalo Angels. We have de-
veloped many contacts in the startup community and
would be glad to introduce companies with potential
common interests. Contact Jack McGowan at jmc-
[email protected] to learn more.
Startups and Established Companies Collaborate for Mutual Gain BY Jack McGowan
RECENT PROJECTS a sample of projects that Insyte recently concluded with WNY companies:
• Helped a Buffalo custom manufacturer
become one of the first in New York
State and nationwide to be certified
to the new ISO 9001:2015 Quality
Standard.
• Performed a manufacturing analysis
of a strategic machining area to help
an Erie County custom manufacturer
increase throughput to support
projected growth and meet key
customer expectations.
• Upgraded a Buffalo valve manufacturer’s
Customer Relationship Management
(CRM) program to support the company’s
long-term sales growth strategy.
• Analyzed a product line for revenue
expansion opportunities to help a
Chautauqua County furniture
manufacturer increase its penetration
into a new market and increase sales.
• Trained members of an Erie County
pipe manufacturer’s workforce as
internal auditors in preparation for
an audit to the American Petroleum
Institute quality standard, while helping
the company use lean manufacturing
tools to improve operations.
• Assessed and improved the work
flow within two products cells
to increase gross margins and
reduce product cost for a Dunkirk
electronics manufacturer.
• Audited a Clarence medical products
manufacturer’s quality system for
conformity to FDA standards.
• Conducted a risk assessment for
selected equipment and work
areas of a Niagara County thermal
products manufacturer to ensure a
consistently safe work environment.
• Identified and analyzed facility
layout alternatives to align plant
capacity with projected growth for
a Buffalo food manufacturer.
• Coordinated the delivery and
installation of a new coating system
for a Buffalo fastener manufacturer
which will increase the company’s
manufacturing capacity, resulting in
substantial sales growth.
• Improved a Buffalo food manufact-
urer’s order process workflows to
prepare for the company’s projected
sales growth.
• Worked with a Buffalo food processor
to revamp sales territories and sales
management to enable it to grow
revenue by 10%.
MANUFACTURING DAY 2016
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5:00 P.M.
MFGDAY.COM
WNY VENTURE ASSOCIATION - COMPANY PRESENTATION FORUM
WNYVENTURE.COM/VENTURE-FORUMS
SEPTEMBER 14– TO –
7:30 A.M.
9:00 A.M.
PRINCIPLES OF LEAN MANUFACTURING WORKSHOP
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INSYTE-CONSULTING.COM/CALENDAR
EVENTS
SEPTEMBER 22
OCTOBER 7
WHATEVER YOU’RE THINKING,
THINK BIGGER.Tony Hsieh, Zappos