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-

gowan@insyte-consulting.com 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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8:00 A.M.

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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8:00 A.M.

4:30 A.M.

INSYTE-CONSULTING.COM/CALENDAR

EVENTS

SEPTEMBER 22

OCTOBER 7

WHATEVER YOU’RE THINKING,

THINK BIGGER.Tony Hsieh, Zappos