SlideShare ist ein Scribd-Unternehmen logo
1 von 9
Downloaden Sie, um offline zu lesen
QUARTERLYHOT TOPICS
CBIZ Manufacturing & Distribution
Manufacturing Relationships. Distributing Quality.
CBIZ Manufacturing & Distribution
QUARTERLYHOT TOPICS
IN THIS ISSUE:
Helping clients in the
manufacturing and distribution
sectors maximize their potential
and navigate industry changes.
Manufacturing
& Distribution
SEPTEMBER 2021 | ISSUE NO. 11
PAGE 1
©
Copyright
2021.
CBIZ,
Inc.
NYSE
Listed:
CBZ.
All
rights
reserved.
(Continued on page 2)
W
hile the world continues to adjust to the pandemic, manufacturers face an uphill
battle with their talent needs.
The rapid pace of the manufacturing industry has created high demands for efficiency,
quality and consistency. Unfortunately, reaching these standards can be difficult when there are
not enough workers to meet demand. Plummeting employment numbers during the pandemic
brought the industry to its knees last year, but the good news is that those numbers are steadily
climbing back up. In August, 37,000 jobs were added to the industry following 27,000 jobs
in July, 39,000 jobs in June and 36,000 in May. The manufacturing industry is adding more
jobs than it is losing. Yet despite these numbers, the rising headcount is still not up to the pre-
pandemic level, and the talent gap remains wide.
3WaysManufacturersCanBridge
TalentGapsandImproveProductivity
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos
3 Ways Manufacturers
Can Bridge Talent Gaps
and Improve Productivity
PAGE 1
Is It Time to Consider
Group Captive Insurance?
PAGE 3
Equal or Equitable –
The Family Business
Owner’s Dilemma
PAGE 5
Special Purpose
Acquisition Companies
(aka SPACs)
Are Really Hot!
PAGE 6
Additional Content &
Resources
PAGE 7
News from the
National Association of
Manufacturers
PAGE 9
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 2
(Continued from page 1)
The manufacturing industry has also seen an
unprecedented wave of cyberattacks. In 2020, it
suffered from system intrusion, social engineering and
basic web application attacks, with the most common
threats being phishing and hacking to gain the initial
foothold. From there, credentials were compromised
and utilized, or the threat actors installed malware.
With each challenge comes opportunities, however. In
response to the economic hardships of the past year,
an increasing number of manufacturers are seeking
to make acquisitions or are embracing mergers. In a
recent survey of leaders of companies with over $250
million in sales, around 65% said they planned to
make acquisitions in response to economic conditions
created by the pandemic. In parallel, many smaller
companies that supply parts for larger producers
currently struggle to survive and may be attracted to
a merger.
Tackling these obstacles with the aforementioned talent
gap is no easy feat, but there are several ways you can
bridge talent resource limitations and improve your
company’s overall productivity.
1. Look for Additional Bandwidth in Finance
Improving your organization’s economic condition can
fuel competition in the manufacturing job market, but
to do so your leadership team needs the assurance of
sound financial reporting and metrics. One way to track
your organization’s financial heartbeat is to rework
your financial reporting function to provide a real-
time look into models, forecasts, cash flows, use of
dashboards and other tools. A rolling forecast can help
you prepare for the future and succeed. For example,
suppose you have concerns over performance issues
due to a lack of qualified workers. In that case, a
financial forecast can provide detailed insight into
sales and liquidity to test business scenarios impact
on financial performance.
Outsourcing your accounting to support your company’s
back office is another opportunity that enables you to
meet short- and-long-term obligations cost-efficiently
and addresses unexpected needs. It allows your back
office to operate smoothly during special projects and
transition periods.
The tax landscape is constantly evolving, placing a
heavy burden on internal tax departments. Integrating
external expertise with your internal team can allow
more bandwidth to address emerging tax needs and
help you stay compliant. You can save on taxes while
remediating past errors quickly and issuing filings on
time while leaving room in your full-time headcount for
key positions.
2. Take a New Approach to Risk Management
One of the reasons cybercrime is increasing is because
some manufacturing companies are shrinking their
internal audit budgets. (The Institute of Internal Auditors
found 36% of companies reduced internal audit spend in
2020.) As a result, security protocols are falling through
the net and have left a gap in cybersecurity protection. It
may be beneficial to utilize internal audit resources with
a wide array of IT controls experience to close that gap.
Review the results of your recent internal audit to assess
whether your controls and staff are positioned to address
areas of emerging risk. This may aid in your determination
about what additional resources your organization could
use for its risk management function.
To zero in on cyber breaches, seek external guidance on
securing systems and data. An assessment of your system
and potential vulnerabilities can identify realistic and
practical cybersecurity safeguards. For example, if you
have never done one, comparing your control environment
to a common industry framework such as the National
Institute of Standards and Technology (NIST) Cybersecurity
Framework (CSF) or the Center for Internet Security Critical
Security (CIS) can help identify issues before a breach
occurs, reduceing the time and extent of potential damage.
3. Seize the Opportunities in Mergers &
Acquisitions (M&A)
In the second quarter of 2021, deal activity continued
at a feverish pace, proving to be on track for a record-
breaking year driven by continued economic recovery,
low-cost debt, high levels of unspent cash reserve and
the possibility of a higher capital gains tax rate. Mid-
market deals accounted for over 68% of the overall
deal count for the first half of 2021—the highest annual
proportion on record.
As more organizations take advantage of the benefits
of M&A during the pandemic fallout, the need for
logistical expertise is higher than ever. An experienced
M&A team can help your organization focus on practical
business, while deal flow, due diligence and other
transaction-related activities are adequately addressed.
For example, if there’s a possibility of an exit on the
horizon, consider using a provider to assist with sell-
side due diligence sooner than later to identify potential
deal drivers and stoppers. Companies considering an
imminent exit may also want to undergo a financial
statement audit to provide potential buyers more insight
into the reporting environment.
Preparing for What Comes Next
Bringing in additional resources can help your team
embrace new opportunities and mitigate its talent gap
challenges. For a deeper dive into solutions for personnel
constraints and action items, check out our guide. You
may also connect with a member of our team.
PAGE 3
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos
(Continued on page 4)
IsItTimetoConsider
GroupCaptiveInsurance?
I
nsurance is one of the largest annual expense
items for many businesses. As insurance premiums
have skyrocketed over the last several years, many
businesses have moved their risk financing from the
traditional, guaranteed cost model to a captive insurance
arrangement. For some companies, a captive can both
mitigate risk and build wealth.
What exactly is a captive insurer? It’s generally defined
as an insurance company that is wholly owned and
controlled by its insureds; its primary purpose is to insure
the risks of its owners, and its insureds benefit from the
captive insurer’s underwriting profits. It allows a company
to self-fund for traditional and emerging risks, including
those that are unavailable or unaffordable in the
commercial market, such as the pandemic and supply-
chain risks many companies have recently experienced.
Advantages of Being in a Captive
Captives are a long-term strategy for funding risks that
might impact your business or otherwise have a negative
effect on your balance sheet. As a self-insurance option,
captives are a risk-reward structure. So, companies that
effectively manage risk can enjoy many benefits, including
having premiums returned to their bottom line. Simply put,
here are some of the advantages of being in a captive:
	
■ Potential Profit – A captive rewards members
for controlling losses and claims by providing
dividends and investment income. Underwriting
profits come back to you – not the insurance
company.
	
■ Lower Costs – Minimizes mark-ups such as
marketing, commission, administration and
overhead costs found in traditional insurance
	
■ Cost Control – Reduces long-term cost of risk
by allowing members to customize insurance
coverage to best meet their needs
	
■ Stable Market – Protects members from market
fluctuations found through traditional insurance
providers
Not All Companies Will Qualify
A member-owned group captive is available as an
alternative risk financing for companies with below-
industry-average loss history and with minimum
general liability, workers’ compensation and auto
liability premiums of $150,000. When combined with a
commitment to safety and long-term financial strength
BY KATE HOULIHAN
(Continued from page 3)
PAGE 4
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos
DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional
advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader
is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in
connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that
could affect the information contained herein.
and stability, a captive becomes a powerful tool owned
and managed by the company. Specifically, you will want
to consider these factors:
	
■ Industry Considerations – Insurance trends
within industries can play into the picture.
The key to a successful captive is actual loss
experience. If your company has significant
exposure to these risks and is outperforming
your peers relative to losses, a captive may be
worth exploring. Commercial trucking operators
with large vehicle fleets and low loss history are
a recent example. Insurers in this space have
been rapidly increasing rates due to overall loss
trends. Therefore, many trucking companies have
been saddled with large premium increases even
though they have not had many claims. If your
company can relate, you may want to consider a
captive as an alternative.
	
■ Safety Culture – Companies that boast a
strong culture of safety will outperform their
peers over time. Their claims experience will
be relatively consistent year over year. If your
company fits this profile, a captive can provide
the coverage required, while returning the
underwriting profit to your company rather than a
commercial insurer. Again, there is risk involved;
therefore, captive ownership is a long-term
strategy.
	
■ Metrics – There are many metrics used to
determine captive feasibility. One is the total
premium paid for the lines of coverage to be
placed into the captive. Generally speaking,
companies that pay higher premiums for
coverage like workers’ compensation, auto
liability, etc. will see greater long-term
advantages. But, captive structures like
micro-captives can be developed for smaller
companies as well.
	
■ Time Commitment – Some of the administrative
details involved with running a captive insurance
program include keeping books and records up
to date, preparing internal financial statements
and reports, monitoring the marketplace,
ensuring regulatory compliance, claims
management and more. It requires time and
effort to administer, so leadership must be
willing to make that investment.
Related Resources
	
■ Understanding Group Captives (BizTip video)
	
■ Actively Manage Your Risk with a Captive
Insurance Company (article)
	
■ Captive Insurance Saves Trucking Company More
Than $1 Million (case study)
Your Team
CBIZ financial and insurance professionals are always
available to help you consider business decisions. When
you work with CBIZ, we provide a customized consultancy
service designed to enhance your loss prevention and
overall risk management approach. We help you develop
insurance solutions that best suit your business and
situation. We provide claim management advocacy and
personal service to deliver long-term value and give you a
lasting competitive edge.
To consider the suitability of Captive Insurance for your
company, don’t hesitate to connect with Kate Houlihan,
Vice President of CBIZ Insurance Services. Kate is a Past
President and current Board Member of ManufactureCT.
She understands the Manufacturing & Distribution sector.
You can reach Kate directly at kate.houlihan@cbiz.com
and 860.983.6858. You may also download the CBIZ
Group Captive Brochure here.
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 5
EqualorEquitable–TheFamily
BusinessOwner’sDilemma
C
onsider a scenario where a family business owner
grapples with how to equalize inheritances for his
four children; two are active in the business while
two have careers separate from the family business.
Most of the family wealth, which is illiquid, is tied to the
business. Upon the death of the parents, the family faces
the vexing problem of how to provide the children with
equitable shares of the business without liquidating the
business.
Buyout Inactive Successor Owners
One approach would be to leave it to the siblings who are
running the business to buy out their other siblings. This
raises aa number of issues, including assessing the fair
market value of the business, determining the length of
the payout period and whether interest would be paid
until the buyout is complete. A real concern would be the
prospect of short selling some or most of the business’
assets to buyout the siblings who are not active.
Equal Payout
Another alternative is to leave the business to all four
children equally. This presents another set of challenges
as the two active children would now have to involve
their inactive siblings in the business’ decision making.
Further, the business may not be able to financially
support everyone. If that was the case, the wishes of the
business owner for continuity and family harmony would
be in jeopardy.
Survivorship & Single Life Policies Solutions
A simple, more elegant solution is for the business
to purchase life insurance on the owner, naming the
children who are not active in the business as the
beneficiaries. If the spouse is alive or the owner has
significant health issues, a survivorship policy might
be the appropriate choice. The policy could also
be purchased personally and put in an irrevocable
life insurance trust. In this case, the amount of the
coverage would be equal to 50% of the fair market
value of the business, split between the two inactive
children. Upon the death of the business owner (for
a single life policy) and the spouse (for a survivorship
policy), the two children operating the business would
inherit the business, while the other children would
each receive 25% of the tax-free death benefit of the life
insurance policy. The business continues on, and each
child receives an equitable inheritance.
With the help of a professional advisory team, including a
CPA, attorney, financial planner and insurance agent, an
estate equalization plan (also known as an inheritance
equalization plan) can be developed to pass on a family
business, allowing the owner to enjoy their wealth and
success while ensuring that the next generation is taken
care of – whether or not they are involved in the business.
Related Resources
	
■ The Five Biggest Myths About Life Insurance
(blog)
	
■ Exit Here: Selecting the Best Method for Leaving
Your Business (article)
	
■ Building and Maintaining a Solid Family Business
(article)
Your Team
Don’t hesitate to reach out to Anne Long, President of
CBIZ Life Insurance Solutions or her CLI team for insights
about life insurance as a business tool. You can reach
Anne at anne.long@cbiz.com and 512.784.4001.
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 6
(Continued on page 7)
SpecialPurposeAcquisitionCompanies
(akaSPACs)AreReallyHot!
T
he pace of innovation in manufacturing processes
and across other industries continues to accelerate
during the lingering COVID-19 pandemic. Seeking
growth opportunities, privately owned middle-market
companies potentially can tap into a ready source of
capital — investors anxious to deploy their cash — through
the public markets. The proceeds from selling shares
offer a source of liquidity for the private company owners,
their founders, early-stage employees and other members
of the C suite. Share proceeds may also be used to
expand the business, fund research and development,
pay off debt, or all of the above. As an added benefit,
becoming public can also provide companies with
publicity, standing and gravitas.
Historically, going public meant doing your own “IPO,”
which required substantial experience in public market
dynamics as well as size, time and money. Recently, there
is a new way — going public via a merger with an already
public special purpose acquisition company (SPAC).
A SPAC is an entity that has raised public capital from
generally sophisticated investors. Often referred to as a
“blank check company,” this entity has cash in the bank,
a leadership team and an investment thesis but does not
yet have an operating business. Generally, over a period
of 18-24 months, a SPAC acquires an operating business
that meets its investment mandate and transitions from a
“blank check” status to operating status. This is generally
structured as a reverse merger, and the operating entity
becomes the publicly traded company. In effect, the
operating company acquires the cash of the SPAC entity
as well as its public company status.
In 2020, SPAC IPOs raised almost twice as much as
they raised in the previous 10 years combined. As of
September 2021, SPACs had raised approximately $122
billion in IPOs in the U.S. since the start of the year. That’s
23% more than the record-setting level recorded in 2020.
Increasingly, private companies have been identified by
SPACs as legitimate targets. This process of becoming
public will involve lower costs and complexity, at least
initially. However, private companies that want to be
legitimate candidates must be able to meet a much faster
timeline of going public as SPACs are generally looking
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 7
(Continued on page 8)
(Continued from page 6)
to move quickly. Therefore, private companies that are
interested in the SPAC path to liquidity must engage in
an IPO readiness process to show the investors that they
have the process, procedures, people and technology
to endure the scrutiny of the public markets. Once the
transaction is complete, these private entities will be
public entities and must be ready to comply with all
related regulations that come as part of this event.
IPO Readiness and Risk Minimization
The process of getting ready to become a public company
is complex and needs to be customized to your particular
industry and situation. Forewarned is forearmed. Below
we list a sample of areas we often see in need of
remediation in order to get a company ready for the rigor
and scrutiny of being publicly traded; these are the high
priority items that are often most in need of attention for
public company readiness.
Accounting, SEC Reporting & Financial Operations —
Companies that choose to go through a SPAC IPO will
have a host of reporting considerations and may need
additional guidance on technical and transactional
accounting, internal and external reporting, external audit
preparation/valuation, and system implementation/
integration/optimization in order to meet public company
reporting requirements. Risks to be of aware of include:
	
■ Inadequate/untimely monthly close process
	
■ Lack of SEC-ready technical accounting skills to
address matters such as ASC 606 (revenue)/
ASC 340 (costs) and ASC 842 (leases)
	
■ Historical financial statements may need to
be restated and re-audited by a nationally
recognized audit firm and in accordance with
PCAOB audit standards (in lieu of less rigorous
private company AICPA standards)
	
■ Manual process for internal/external reporting
	
■ Inadequate departmental organization and design
Risk Advisory — Public companies also have unique
internal controls requirements, including processes for
managing financial and fraud risk, a robust internal audit
function, IT general controls, financial and operational
controls, and, in this environment, processes for
cybersecurity. Specific indicators that improvement to
your risk management function may be needed include:
	
■ Lack of a formalized fraud risk assessment
process
	
■ Inadequate controls to detect or prevent
accounting errors and fraudulent financial
practices
	
■ Limited or non-existent documentation or
controls over information technology
Additional Content & Resources
Change Is Coming to the R&E Credit! As changes
enacted in 2019 tax legislation kick in starting
January 2, 2022, it clearly is time for a closer look.
Strategies to Help CFOs Navigate Resource
Limitation. This guide highlights the trends affecting
your personnel and solutions for addressing
emerging opportunities and challenges.
What the Delta Variant Means for Return-to-Work.
CDC’s updated guidance for employers.
Tips to Ease the Renewal Process in a Hardening
Market. Five keys to ensure you are well prepared.
Leading a Hybrid Workforce. Your ultimate guide
to successful leadership in a unique environment
(download here).
Valuations are more important than ever! David
Werch and Tim Kolgen of CBIZ Valuation discuss
COPE assessments, what underwriters are looking
for when reviewing a schedule of values and the
critical role of accurate data.
Vaccine Strategy: Many Questions, Many Challenges
– an update from CBIZ Benefits professionals.
Webinars
Deciphering the Employee Retention Tax Credit
Fine Print. On-demand available here.
Steps to Conducting a Successful Insurance Risk
Analysis. On-demand available here.
In the News
Industry Week: Optimizing Labor to Combat Worker
Shortage
Forbes: Top Five Ways to Become Agile and Lean In
Your Supply Chain
(Continued from page 7)
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 8
	
■ Lack of information security governance/plans
and procedures
	
■ Inadequate enterprise and board-level risk
considerations
Tax — Preparing to go public via a SPAC will involve some
of the same tax processes reporting updates as would
an IPO, including tax structure, value drivers and internal
controls analysis. Signs your tax department may need
additional guidance include:
	
■ Structure and legal entity issues
	
■ Potential tax contingencies for matters such as
state & local, sales & use, or international tax
	
■ Inadequate disclosures and internal controls
	
■ Insufficient attribute planning (R&D studies, IRC
Section 382 analysis)
Insurance & Benefits — The underwriting for your D&O
liability insurance for a SPAC will address these factors:
	
■ Advisory team – The stronger your advisory team
(e.g., outside counsel, investment bank, auditors),
the lower the inherent risk in being public.
	
■ Background of management team and board
of directors – Along with historical claims
experience, this is a substantial underwriting
consideration in evaluating the risk of offering
D&O insurance. The more highly qualified and
experienced your team is in the targeted class of
business, the lower the risk.
	
■ Potential conflicts of interest – Underwriters
will be on the lookout for potential conflicts of
interest between the sponsors, the SPAC and
the operating company. For example, too much
additional compensation to management for
sponsoring the SPAC or sponsors acquiring a
company where a board member has a previous
relationship and will benefit from the transaction
can be issues. 
	
■ Expected amount to be raised — The larger the
fund raise, the higher the risk (and cost) of D&O
insurance.
	
■ Target class of business to be acquired and
management experience in this class —
Underwriters will take into account the targeted
class of business. The lower perceived the risk of
the targeted class and the better management’s
experience aligns with the targeted class, the
better the terms for the D&O program.
	
■ Geography of target business — Underwriters
want to place business in jurisdictions where
they understand the laws and regulations. U.S.-
based businesses are easier to underwrite than
companies doing business internationally.
	
■ Target criteria provided in the S-1 — The more
specific the information in the S-1 about
the target criteria, the more comfortable an
underwriter will feel.
	
■ Federal forum provisions — An S-1 that includes
Federal Forum Provisions will be received more
favorably. These are provisions in corporate
charters requiring that claims under the
Securities Act of 1933 (the “33 Act”) be brought
in federal court. The goal of the provisions is to
reduce litigation over alleged false or misleading
S-1 registration statements.
Compensation — Public companies have different
compensation needs, so your company will need
to re-evaluate market competitiveness of executive
compensation, short- and long-term incentive plan design,
employment agreements, and sales compensation plans.
If you experience any of the following, consider enlisting
additional support for your compensation approach:
	
■ Struggle to attract/retain executive talent (unsure
of competitiveness of total rewards package)
	
■ Executives and shareholder interests are not
aligned
	
■ Key terms of employment agreements need
updating (e.g., defining “for-cause” and “not-for-
cause” severance, severance related to change-
of-control, non-compete and non-disclosure
definitions and requirements)
Bottom Line
SPACs have been around for several decades but have
gained in popularity over the past two years. These
vehicles enable companies to become publicly traded
without following the traditional IPO route. Merging with
a SPAC generally allows companies to go public more
quickly but requires the target entity to be ready for such
a transaction. The SPAC process is subject to different
regulations than a traditional IPO, and there may be less
scrutiny than would occur in the traditional IPO process,
which can make them financially riskier for investors.
Although not required, taking a structured IPO readiness
approach to identify areas of need prior to engaging in
a SPAC transaction can address many of the primary
issues as noted in this article and can shine a much more
appealing light on your company for potential investors.
Your Team
Should you have questions about SPACs or the IPO
process, don’t hesitate to reach out to our IPO Advisory
professionals at 415.264.3731 or find us online here. For
detailed information on the D&O insurance requirements,
connect with Scott Kegler of CBIZ Insurance Services at
215.840.2353.
NAM’sManufacturers’OutlookSurvey:
ThirdQuarter2021
Manufacturing activity remains robust, especially
demand, with the U.S. and global economy continuing
to rebound from the sizable declines in spring 2020.
Real GDP and manufacturing production now exceed
pre-pandemic levels, which is encouraging. And yet,
significant challenges remain, including supply chain
disruptions, worker shortages and soaring costs.
The Manufacturers’ Outlook Survey for the third
quarter of 2021 found 87.5% of respondents felt either
somewhat or very positive about their company outlook,
down from 90.1% in the second quarter. The NAM
Manufacturing Outlook Index measured 58.4 in the third
quarter, down from 60.2 in the second quarter. The data
are consistent with solid growth in manufacturing activity,
but with some easing from more rapid paces in the
second quarter, when the outlook had registered the best
reading in nearly three years and some measures had
reached record highs.
Download the full report.
Manufacturing Output: Strongest Since January 2019
Despite Slowing in August
Manufacturing production slowed significantly in August,
edging up 0.1% for the month after rising by 1.6% in July.
Much like the larger economy, manufacturing production
has softened likely due to supply chain disruptions,
workforce shortages and rising raw material costs. Still,
manufacturing production has increased 5.9% over the
past 12 months, or 3.2% year to date, with output in the
sector the strongest since January 2019.
Similarly, manufacturing capacity utilization edged
up from 76.6% in July to 76.7% in August, also the
best reading since January 2019. Looking at annual
average growth rates, I would expect that manufacturing
production will have risen by 6.8% in 2021, with 4.2%
growth in 2022.
Regional surveys from the New York and Philadelphia
Federal Reserve Banks reflected stronger manufacturing
expansions in September, with a positive outlook for
the next six months. The forecast for capital spending
in the Empire State release was the best since January
2018, with technology spending seen rising at a record
pace. Yet, delivery times and pricing pressures remained
significant challenges in both districts.
Retail sales rose 0.7% in August, rebounding from the
1.8% decline seen in July and continuing the seesaw
pattern seen over the past five months. Motor vehicle
and parts dealers reported 3.6% fewer sales in August,
with the chip shortage and supply chain issues hindering
spending in that category. Excluding motor automobiles,
retail spending increased 1.8% for the month.
Small business owners continue to experience record-
level challenges with prices and employment, according
to the National Federation of Independent Business.
Half of all respondents in the August survey said that
they had job openings that they were unable to fill,
with 60% saying that there were few or no qualified
applicants, also an all-time high.
Still Leading the Way: Manufacturers Make Creators
Wanted Live Possible
Creators Wanted, the workforce campaign of the NAM
and the Manufacturing Institute, is getting ready to hit
the road. The campaign formalized its COVID-19 safety
protocols and is employing state-of-the-art technologies,
like Sphere Synexis, provided by legacy sponsor Trane
Technologies, to continuously fight viruses, bacteria and
other hazards in the air and on surfaces. The mobile
experience, along with other programming events and
new online resources, will bring the story of modern
manufacturing to communities across the country.
	
■ The experience, recently endorsed by The
Dallas Morning News, is designed to capture
the imaginations of students, teachers and
parents and inspire the next generation of
manufacturers.
	
■ It will complement the upcoming release of the
NAM and MI’s innovative online resources for
those seeking a career in manufacturing.
Coming to a town near you: The NAM and MI released
the following Creators Wanted Live tour dates and stops.
	
■ Oct. 4–7: Columbus, Ohio
	
■ Oct. 12–15: Charlotte, North Carolina
	
■ Oct. 20–22: West Columbia, South Carolina
	
■ Nov. 8–10: Pella, Iowa
	
■ Nov. 16–18: Freeport, Texas
	
■ Nov. 30 – Dec. 3: Dallas, Texas
Wait, there’s more! Community programming stops are
also coming to Detroit, Michigan; Guthrie, Kentucky;
Pittsburgh, Pennsylvania; and Carson City, Nevada. And
a new suite of digital and online experiences and tools
will bring the campaign to every state.
	
■ ICYMI: NAM’s Jay Timmons Discusses Creators
Wanted, COVID-19 Vaccines and Reconciliation
on CNBC Watch here.
NewsfromtheNationalAssociationofManufacturers
1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ
CBIZ BizTipsVideos PAGE 9

Weitere ähnliche Inhalte

Was ist angesagt?

Bulletin #36 - Alberta’s Generous New R&D Tax Credit
Bulletin #36 - Alberta’s Generous New R&D Tax CreditBulletin #36 - Alberta’s Generous New R&D Tax Credit
Bulletin #36 - Alberta’s Generous New R&D Tax CreditScitax Advisory Partners LP
 
Legal Issues for Tech Startups
Legal Issues for Tech StartupsLegal Issues for Tech Startups
Legal Issues for Tech StartupsRoger Royse
 
Factoring market in australia
Factoring market in australiaFactoring market in australia
Factoring market in australiaakarshijain
 
Garfield County Economic Development
Garfield County Economic DevelopmentGarfield County Economic Development
Garfield County Economic Developmentmtnslides
 
Impact of the DOL Fiduciary rule on life insurers
Impact of the DOL Fiduciary rule on life insurersImpact of the DOL Fiduciary rule on life insurers
Impact of the DOL Fiduciary rule on life insurersAndres De Jesus
 
Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Intact
 
ELFA IMN Conference - Monitor MJ 2015
ELFA IMN Conference - Monitor MJ 2015ELFA IMN Conference - Monitor MJ 2015
ELFA IMN Conference - Monitor MJ 2015Rita Garwood
 

Was ist angesagt? (8)

Bulletin #36 - Alberta’s Generous New R&D Tax Credit
Bulletin #36 - Alberta’s Generous New R&D Tax CreditBulletin #36 - Alberta’s Generous New R&D Tax Credit
Bulletin #36 - Alberta’s Generous New R&D Tax Credit
 
#BCMeeting2019: ICC Trade Register Report
#BCMeeting2019: ICC Trade Register Report#BCMeeting2019: ICC Trade Register Report
#BCMeeting2019: ICC Trade Register Report
 
Legal Issues for Tech Startups
Legal Issues for Tech StartupsLegal Issues for Tech Startups
Legal Issues for Tech Startups
 
Factoring market in australia
Factoring market in australiaFactoring market in australia
Factoring market in australia
 
Garfield County Economic Development
Garfield County Economic DevelopmentGarfield County Economic Development
Garfield County Economic Development
 
Impact of the DOL Fiduciary rule on life insurers
Impact of the DOL Fiduciary rule on life insurersImpact of the DOL Fiduciary rule on life insurers
Impact of the DOL Fiduciary rule on life insurers
 
Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)
 
ELFA IMN Conference - Monitor MJ 2015
ELFA IMN Conference - Monitor MJ 2015ELFA IMN Conference - Monitor MJ 2015
ELFA IMN Conference - Monitor MJ 2015
 

Ähnlich wie CBIZ Quarterly Manufacturing & Distribution “Hot Topics” Newsletter (Sep-Oct 2021)

The Problems Being Faced By Insurance Agency Owners
The Problems Being Faced By Insurance Agency OwnersThe Problems Being Faced By Insurance Agency Owners
The Problems Being Faced By Insurance Agency OwnersCogneesol
 
Risk & Advisory Services: Quarterly Risk Advisor March 2017
Risk & Advisory Services: Quarterly Risk Advisor March 2017Risk & Advisory Services: Quarterly Risk Advisor March 2017
Risk & Advisory Services: Quarterly Risk Advisor March 2017CBIZ, Inc.
 
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the wayDeloitte United States
 
Unlocking the Performance Levers of Commercial Underwriting
Unlocking the Performance Levers of Commercial UnderwritingUnlocking the Performance Levers of Commercial Underwriting
Unlocking the Performance Levers of Commercial UnderwritingCognizant
 
7625_Insurance Transformation-WEB-R11-2
7625_Insurance Transformation-WEB-R11-27625_Insurance Transformation-WEB-R11-2
7625_Insurance Transformation-WEB-R11-2Tom Nodine
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesBoston Consulting Group
 
Risk & Advisory Services: Quarterly Risk Advisor May 2016
Risk & Advisory Services: Quarterly Risk Advisor May 2016Risk & Advisory Services: Quarterly Risk Advisor May 2016
Risk & Advisory Services: Quarterly Risk Advisor May 2016CBIZ, Inc.
 
Analytics in Insurance Value Chain
Analytics in Insurance Value ChainAnalytics in Insurance Value Chain
Analytics in Insurance Value ChainNIIT Technologies
 
How P&C Insurers Can Unlock Value from Mergers & Acquisitions
How P&C Insurers Can Unlock Value from Mergers & AcquisitionsHow P&C Insurers Can Unlock Value from Mergers & Acquisitions
How P&C Insurers Can Unlock Value from Mergers & AcquisitionsCognizant
 
Your cognitive future insurances
Your cognitive future insurancesYour cognitive future insurances
Your cognitive future insurancesYann Lecourt
 
financial exec final
financial exec finalfinancial exec final
financial exec finalAdam Ortlieb
 
Insurance Industry 2016: PwC Top Issues
Insurance Industry 2016: PwC Top Issues Insurance Industry 2016: PwC Top Issues
Insurance Industry 2016: PwC Top Issues PwC
 
Market expansion modules
Market expansion modulesMarket expansion modules
Market expansion modulesMABSIV
 
Disruption in Wealth Management
Disruption in Wealth ManagementDisruption in Wealth Management
Disruption in Wealth ManagementGreg Simmons
 
Alive Strategy for Fintechs in 2020
Alive Strategy for Fintechs in 2020 Alive Strategy for Fintechs in 2020
Alive Strategy for Fintechs in 2020 INSART
 
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016CBIZ, Inc.
 
Preview novarica1908 eb-core-business_case
Preview novarica1908 eb-core-business_casePreview novarica1908 eb-core-business_case
Preview novarica1908 eb-core-business_case~Eric Principe
 
Cover and CyberSecurity Essay
Cover and CyberSecurity EssayCover and CyberSecurity Essay
Cover and CyberSecurity EssayMichael Solomon
 

Ähnlich wie CBIZ Quarterly Manufacturing & Distribution “Hot Topics” Newsletter (Sep-Oct 2021) (20)

The Problems Being Faced By Insurance Agency Owners
The Problems Being Faced By Insurance Agency OwnersThe Problems Being Faced By Insurance Agency Owners
The Problems Being Faced By Insurance Agency Owners
 
Risk & Advisory Services: Quarterly Risk Advisor March 2017
Risk & Advisory Services: Quarterly Risk Advisor March 2017Risk & Advisory Services: Quarterly Risk Advisor March 2017
Risk & Advisory Services: Quarterly Risk Advisor March 2017
 
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
2014 Property & Casualty Insurance Industry Outlook: Innovation leading the way
 
Unlocking the Performance Levers of Commercial Underwriting
Unlocking the Performance Levers of Commercial UnderwritingUnlocking the Performance Levers of Commercial Underwriting
Unlocking the Performance Levers of Commercial Underwriting
 
7625_Insurance Transformation-WEB-R11-2
7625_Insurance Transformation-WEB-R11-27625_Insurance Transformation-WEB-R11-2
7625_Insurance Transformation-WEB-R11-2
 
Unlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities ServicesUnlocking the Hidden Value in Securities Services
Unlocking the Hidden Value in Securities Services
 
Risk & Advisory Services: Quarterly Risk Advisor May 2016
Risk & Advisory Services: Quarterly Risk Advisor May 2016Risk & Advisory Services: Quarterly Risk Advisor May 2016
Risk & Advisory Services: Quarterly Risk Advisor May 2016
 
Analytics in Insurance Value Chain
Analytics in Insurance Value ChainAnalytics in Insurance Value Chain
Analytics in Insurance Value Chain
 
EY-Top9DriversinWAM
EY-Top9DriversinWAMEY-Top9DriversinWAM
EY-Top9DriversinWAM
 
How P&C Insurers Can Unlock Value from Mergers & Acquisitions
How P&C Insurers Can Unlock Value from Mergers & AcquisitionsHow P&C Insurers Can Unlock Value from Mergers & Acquisitions
How P&C Insurers Can Unlock Value from Mergers & Acquisitions
 
Your cognitive future insurances
Your cognitive future insurancesYour cognitive future insurances
Your cognitive future insurances
 
financial exec final
financial exec finalfinancial exec final
financial exec final
 
Insurance Industry 2016: PwC Top Issues
Insurance Industry 2016: PwC Top Issues Insurance Industry 2016: PwC Top Issues
Insurance Industry 2016: PwC Top Issues
 
Market expansion modules
Market expansion modulesMarket expansion modules
Market expansion modules
 
Insurance Trends
Insurance TrendsInsurance Trends
Insurance Trends
 
Disruption in Wealth Management
Disruption in Wealth ManagementDisruption in Wealth Management
Disruption in Wealth Management
 
Alive Strategy for Fintechs in 2020
Alive Strategy for Fintechs in 2020 Alive Strategy for Fintechs in 2020
Alive Strategy for Fintechs in 2020
 
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016
Risk & Advisory Services: Quarterly Risk Advisor Feb. 2016
 
Preview novarica1908 eb-core-business_case
Preview novarica1908 eb-core-business_casePreview novarica1908 eb-core-business_case
Preview novarica1908 eb-core-business_case
 
Cover and CyberSecurity Essay
Cover and CyberSecurity EssayCover and CyberSecurity Essay
Cover and CyberSecurity Essay
 

Mehr von CBIZ, Inc.

BIZGrowth Strategies — Cybersecurity Special Edition 2023
BIZGrowth Strategies — Cybersecurity Special Edition 2023BIZGrowth Strategies — Cybersecurity Special Edition 2023
BIZGrowth Strategies — Cybersecurity Special Edition 2023CBIZ, Inc.
 
BIZGrowth Strategies - Back to Basics Special Edition
BIZGrowth Strategies - Back to Basics Special EditionBIZGrowth Strategies - Back to Basics Special Edition
BIZGrowth Strategies - Back to Basics Special EditionCBIZ, Inc.
 
The Advantage — Summer 2023
The Advantage — Summer 2023The Advantage — Summer 2023
The Advantage — Summer 2023CBIZ, Inc.
 
BIZGrowth Strategies - Workforce & Talent Optimization Special Edition
BIZGrowth Strategies - Workforce & Talent Optimization Special EditionBIZGrowth Strategies - Workforce & Talent Optimization Special Edition
BIZGrowth Strategies - Workforce & Talent Optimization Special EditionCBIZ, Inc.
 
BIZGrowth Newsletter - Economic Slowdown Solutions Special Edition
BIZGrowth Newsletter - Economic Slowdown Solutions Special EditionBIZGrowth Newsletter - Economic Slowdown Solutions Special Edition
BIZGrowth Newsletter - Economic Slowdown Solutions Special EditionCBIZ, Inc.
 
BIZGrowth Strategies - Cybersecurity Special Edition
BIZGrowth Strategies - Cybersecurity Special EditionBIZGrowth Strategies - Cybersecurity Special Edition
BIZGrowth Strategies - Cybersecurity Special EditionCBIZ, Inc.
 
Connections Help Law Practice Efficiently Obtain $5 Million Line of Credit
Connections Help Law Practice Efficiently Obtain $5 Million Line of CreditConnections Help Law Practice Efficiently Obtain $5 Million Line of Credit
Connections Help Law Practice Efficiently Obtain $5 Million Line of CreditCBIZ, Inc.
 
Custom Communication Plan & Active Enrollment Result in Increased Consumerism
Custom Communication Plan & Active Enrollment Result in Increased ConsumerismCustom Communication Plan & Active Enrollment Result in Increased Consumerism
Custom Communication Plan & Active Enrollment Result in Increased ConsumerismCBIZ, Inc.
 
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOExperienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOCBIZ, Inc.
 
BIZGrowth Strategies - Summer 2022
BIZGrowth Strategies - Summer 2022BIZGrowth Strategies - Summer 2022
BIZGrowth Strategies - Summer 2022CBIZ, Inc.
 
Inflation, Interest Rates & the Disruption to CRE
Inflation, Interest Rates & the Disruption to CREInflation, Interest Rates & the Disruption to CRE
Inflation, Interest Rates & the Disruption to CRECBIZ, Inc.
 
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...CBIZ, Inc.
 
Rethinking Total Compensation to Retain Top Talent
Rethinking Total Compensation to Retain Top TalentRethinking Total Compensation to Retain Top Talent
Rethinking Total Compensation to Retain Top TalentCBIZ, Inc.
 
Common Labor Shortage Risks & Tips to Mitigate Your Exposures
Common Labor Shortage Risks & Tips to Mitigate Your ExposuresCommon Labor Shortage Risks & Tips to Mitigate Your Exposures
Common Labor Shortage Risks & Tips to Mitigate Your ExposuresCBIZ, Inc.
 
How the Great Resignation Affects the Tax Function
How the Great Resignation Affects the Tax FunctionHow the Great Resignation Affects the Tax Function
How the Great Resignation Affects the Tax FunctionCBIZ, Inc.
 
Using Technology to Secure Talent
Using Technology to Secure TalentUsing Technology to Secure Talent
Using Technology to Secure TalentCBIZ, Inc.
 
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOExperienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOCBIZ, Inc.
 
BIZGrowth Strategies - The Great Resignation Special Edition
BIZGrowth Strategies - The Great Resignation Special EditionBIZGrowth Strategies - The Great Resignation Special Edition
BIZGrowth Strategies - The Great Resignation Special EditionCBIZ, Inc.
 
How Rising Construction Costs Can Affect Your Insurance
How Rising Construction Costs Can Affect Your InsuranceHow Rising Construction Costs Can Affect Your Insurance
How Rising Construction Costs Can Affect Your InsuranceCBIZ, Inc.
 
3 Things Manufacturers Need to Know About Their Accounting for Leases
3 Things Manufacturers Need to Know About Their Accounting for Leases3 Things Manufacturers Need to Know About Their Accounting for Leases
3 Things Manufacturers Need to Know About Their Accounting for LeasesCBIZ, Inc.
 

Mehr von CBIZ, Inc. (20)

BIZGrowth Strategies — Cybersecurity Special Edition 2023
BIZGrowth Strategies — Cybersecurity Special Edition 2023BIZGrowth Strategies — Cybersecurity Special Edition 2023
BIZGrowth Strategies — Cybersecurity Special Edition 2023
 
BIZGrowth Strategies - Back to Basics Special Edition
BIZGrowth Strategies - Back to Basics Special EditionBIZGrowth Strategies - Back to Basics Special Edition
BIZGrowth Strategies - Back to Basics Special Edition
 
The Advantage — Summer 2023
The Advantage — Summer 2023The Advantage — Summer 2023
The Advantage — Summer 2023
 
BIZGrowth Strategies - Workforce & Talent Optimization Special Edition
BIZGrowth Strategies - Workforce & Talent Optimization Special EditionBIZGrowth Strategies - Workforce & Talent Optimization Special Edition
BIZGrowth Strategies - Workforce & Talent Optimization Special Edition
 
BIZGrowth Newsletter - Economic Slowdown Solutions Special Edition
BIZGrowth Newsletter - Economic Slowdown Solutions Special EditionBIZGrowth Newsletter - Economic Slowdown Solutions Special Edition
BIZGrowth Newsletter - Economic Slowdown Solutions Special Edition
 
BIZGrowth Strategies - Cybersecurity Special Edition
BIZGrowth Strategies - Cybersecurity Special EditionBIZGrowth Strategies - Cybersecurity Special Edition
BIZGrowth Strategies - Cybersecurity Special Edition
 
Connections Help Law Practice Efficiently Obtain $5 Million Line of Credit
Connections Help Law Practice Efficiently Obtain $5 Million Line of CreditConnections Help Law Practice Efficiently Obtain $5 Million Line of Credit
Connections Help Law Practice Efficiently Obtain $5 Million Line of Credit
 
Custom Communication Plan & Active Enrollment Result in Increased Consumerism
Custom Communication Plan & Active Enrollment Result in Increased ConsumerismCustom Communication Plan & Active Enrollment Result in Increased Consumerism
Custom Communication Plan & Active Enrollment Result in Increased Consumerism
 
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOExperienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
 
BIZGrowth Strategies - Summer 2022
BIZGrowth Strategies - Summer 2022BIZGrowth Strategies - Summer 2022
BIZGrowth Strategies - Summer 2022
 
Inflation, Interest Rates & the Disruption to CRE
Inflation, Interest Rates & the Disruption to CREInflation, Interest Rates & the Disruption to CRE
Inflation, Interest Rates & the Disruption to CRE
 
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...
CBIZ Quarterly Manufacturing and Distribution "Hot Topics" Newsletter (May-Ju...
 
Rethinking Total Compensation to Retain Top Talent
Rethinking Total Compensation to Retain Top TalentRethinking Total Compensation to Retain Top Talent
Rethinking Total Compensation to Retain Top Talent
 
Common Labor Shortage Risks & Tips to Mitigate Your Exposures
Common Labor Shortage Risks & Tips to Mitigate Your ExposuresCommon Labor Shortage Risks & Tips to Mitigate Your Exposures
Common Labor Shortage Risks & Tips to Mitigate Your Exposures
 
How the Great Resignation Affects the Tax Function
How the Great Resignation Affects the Tax FunctionHow the Great Resignation Affects the Tax Function
How the Great Resignation Affects the Tax Function
 
Using Technology to Secure Talent
Using Technology to Secure TalentUsing Technology to Secure Talent
Using Technology to Secure Talent
 
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFOExperienced Consulting Approach Leads Engineering Firm to the Right CFO
Experienced Consulting Approach Leads Engineering Firm to the Right CFO
 
BIZGrowth Strategies - The Great Resignation Special Edition
BIZGrowth Strategies - The Great Resignation Special EditionBIZGrowth Strategies - The Great Resignation Special Edition
BIZGrowth Strategies - The Great Resignation Special Edition
 
How Rising Construction Costs Can Affect Your Insurance
How Rising Construction Costs Can Affect Your InsuranceHow Rising Construction Costs Can Affect Your Insurance
How Rising Construction Costs Can Affect Your Insurance
 
3 Things Manufacturers Need to Know About Their Accounting for Leases
3 Things Manufacturers Need to Know About Their Accounting for Leases3 Things Manufacturers Need to Know About Their Accounting for Leases
3 Things Manufacturers Need to Know About Their Accounting for Leases
 

Kürzlich hochgeladen

NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfrichard876048
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationAnamaria Contreras
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCRashishs7044
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607dollysharma2066
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaoncallgirls2057
 
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCRashishs7044
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessSeta Wicaksana
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCRashishs7044
 
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCRashishs7044
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailAriel592675
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncrdollysharma2066
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Anamaria Contreras
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 

Kürzlich hochgeladen (20)

NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdfInnovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
 
PSCC - Capability Statement Presentation
PSCC - Capability Statement PresentationPSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
 
8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR8447779800, Low rate Call girls in Saket Delhi NCR
8447779800, Low rate Call girls in Saket Delhi NCR
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City GurgaonCall Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
 
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
8447779800, Low rate Call girls in Kotla Mubarakpur Delhi NCR
 
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful BusinessOrganizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
 
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
 
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 
Case study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detailCase study on tata clothing brand zudio in detail
Case study on tata clothing brand zudio in detail
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 

CBIZ Quarterly Manufacturing & Distribution “Hot Topics” Newsletter (Sep-Oct 2021)

  • 1. QUARTERLYHOT TOPICS CBIZ Manufacturing & Distribution Manufacturing Relationships. Distributing Quality. CBIZ Manufacturing & Distribution QUARTERLYHOT TOPICS IN THIS ISSUE: Helping clients in the manufacturing and distribution sectors maximize their potential and navigate industry changes. Manufacturing & Distribution SEPTEMBER 2021 | ISSUE NO. 11 PAGE 1 © Copyright 2021. CBIZ, Inc. NYSE Listed: CBZ. All rights reserved. (Continued on page 2) W hile the world continues to adjust to the pandemic, manufacturers face an uphill battle with their talent needs. The rapid pace of the manufacturing industry has created high demands for efficiency, quality and consistency. Unfortunately, reaching these standards can be difficult when there are not enough workers to meet demand. Plummeting employment numbers during the pandemic brought the industry to its knees last year, but the good news is that those numbers are steadily climbing back up. In August, 37,000 jobs were added to the industry following 27,000 jobs in July, 39,000 jobs in June and 36,000 in May. The manufacturing industry is adding more jobs than it is losing. Yet despite these numbers, the rising headcount is still not up to the pre- pandemic level, and the talent gap remains wide. 3WaysManufacturersCanBridge TalentGapsandImproveProductivity 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos 3 Ways Manufacturers Can Bridge Talent Gaps and Improve Productivity PAGE 1 Is It Time to Consider Group Captive Insurance? PAGE 3 Equal or Equitable – The Family Business Owner’s Dilemma PAGE 5 Special Purpose Acquisition Companies (aka SPACs) Are Really Hot! PAGE 6 Additional Content & Resources PAGE 7 News from the National Association of Manufacturers PAGE 9
  • 2. 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 2 (Continued from page 1) The manufacturing industry has also seen an unprecedented wave of cyberattacks. In 2020, it suffered from system intrusion, social engineering and basic web application attacks, with the most common threats being phishing and hacking to gain the initial foothold. From there, credentials were compromised and utilized, or the threat actors installed malware. With each challenge comes opportunities, however. In response to the economic hardships of the past year, an increasing number of manufacturers are seeking to make acquisitions or are embracing mergers. In a recent survey of leaders of companies with over $250 million in sales, around 65% said they planned to make acquisitions in response to economic conditions created by the pandemic. In parallel, many smaller companies that supply parts for larger producers currently struggle to survive and may be attracted to a merger. Tackling these obstacles with the aforementioned talent gap is no easy feat, but there are several ways you can bridge talent resource limitations and improve your company’s overall productivity. 1. Look for Additional Bandwidth in Finance Improving your organization’s economic condition can fuel competition in the manufacturing job market, but to do so your leadership team needs the assurance of sound financial reporting and metrics. One way to track your organization’s financial heartbeat is to rework your financial reporting function to provide a real- time look into models, forecasts, cash flows, use of dashboards and other tools. A rolling forecast can help you prepare for the future and succeed. For example, suppose you have concerns over performance issues due to a lack of qualified workers. In that case, a financial forecast can provide detailed insight into sales and liquidity to test business scenarios impact on financial performance. Outsourcing your accounting to support your company’s back office is another opportunity that enables you to meet short- and-long-term obligations cost-efficiently and addresses unexpected needs. It allows your back office to operate smoothly during special projects and transition periods. The tax landscape is constantly evolving, placing a heavy burden on internal tax departments. Integrating external expertise with your internal team can allow more bandwidth to address emerging tax needs and help you stay compliant. You can save on taxes while remediating past errors quickly and issuing filings on time while leaving room in your full-time headcount for key positions. 2. Take a New Approach to Risk Management One of the reasons cybercrime is increasing is because some manufacturing companies are shrinking their internal audit budgets. (The Institute of Internal Auditors found 36% of companies reduced internal audit spend in 2020.) As a result, security protocols are falling through the net and have left a gap in cybersecurity protection. It may be beneficial to utilize internal audit resources with a wide array of IT controls experience to close that gap. Review the results of your recent internal audit to assess whether your controls and staff are positioned to address areas of emerging risk. This may aid in your determination about what additional resources your organization could use for its risk management function. To zero in on cyber breaches, seek external guidance on securing systems and data. An assessment of your system and potential vulnerabilities can identify realistic and practical cybersecurity safeguards. For example, if you have never done one, comparing your control environment to a common industry framework such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF) or the Center for Internet Security Critical Security (CIS) can help identify issues before a breach occurs, reduceing the time and extent of potential damage. 3. Seize the Opportunities in Mergers & Acquisitions (M&A) In the second quarter of 2021, deal activity continued at a feverish pace, proving to be on track for a record- breaking year driven by continued economic recovery, low-cost debt, high levels of unspent cash reserve and the possibility of a higher capital gains tax rate. Mid- market deals accounted for over 68% of the overall deal count for the first half of 2021—the highest annual proportion on record. As more organizations take advantage of the benefits of M&A during the pandemic fallout, the need for logistical expertise is higher than ever. An experienced M&A team can help your organization focus on practical business, while deal flow, due diligence and other transaction-related activities are adequately addressed. For example, if there’s a possibility of an exit on the horizon, consider using a provider to assist with sell- side due diligence sooner than later to identify potential deal drivers and stoppers. Companies considering an imminent exit may also want to undergo a financial statement audit to provide potential buyers more insight into the reporting environment. Preparing for What Comes Next Bringing in additional resources can help your team embrace new opportunities and mitigate its talent gap challenges. For a deeper dive into solutions for personnel constraints and action items, check out our guide. You may also connect with a member of our team.
  • 3. PAGE 3 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos (Continued on page 4) IsItTimetoConsider GroupCaptiveInsurance? I nsurance is one of the largest annual expense items for many businesses. As insurance premiums have skyrocketed over the last several years, many businesses have moved their risk financing from the traditional, guaranteed cost model to a captive insurance arrangement. For some companies, a captive can both mitigate risk and build wealth. What exactly is a captive insurer? It’s generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer’s underwriting profits. It allows a company to self-fund for traditional and emerging risks, including those that are unavailable or unaffordable in the commercial market, such as the pandemic and supply- chain risks many companies have recently experienced. Advantages of Being in a Captive Captives are a long-term strategy for funding risks that might impact your business or otherwise have a negative effect on your balance sheet. As a self-insurance option, captives are a risk-reward structure. So, companies that effectively manage risk can enjoy many benefits, including having premiums returned to their bottom line. Simply put, here are some of the advantages of being in a captive: ■ Potential Profit – A captive rewards members for controlling losses and claims by providing dividends and investment income. Underwriting profits come back to you – not the insurance company. ■ Lower Costs – Minimizes mark-ups such as marketing, commission, administration and overhead costs found in traditional insurance ■ Cost Control – Reduces long-term cost of risk by allowing members to customize insurance coverage to best meet their needs ■ Stable Market – Protects members from market fluctuations found through traditional insurance providers Not All Companies Will Qualify A member-owned group captive is available as an alternative risk financing for companies with below- industry-average loss history and with minimum general liability, workers’ compensation and auto liability premiums of $150,000. When combined with a commitment to safety and long-term financial strength BY KATE HOULIHAN
  • 4. (Continued from page 3) PAGE 4 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos DISCLAIMER: This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. This information is general in nature and may be affected by changes in law or in the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein. and stability, a captive becomes a powerful tool owned and managed by the company. Specifically, you will want to consider these factors: ■ Industry Considerations – Insurance trends within industries can play into the picture. The key to a successful captive is actual loss experience. If your company has significant exposure to these risks and is outperforming your peers relative to losses, a captive may be worth exploring. Commercial trucking operators with large vehicle fleets and low loss history are a recent example. Insurers in this space have been rapidly increasing rates due to overall loss trends. Therefore, many trucking companies have been saddled with large premium increases even though they have not had many claims. If your company can relate, you may want to consider a captive as an alternative. ■ Safety Culture – Companies that boast a strong culture of safety will outperform their peers over time. Their claims experience will be relatively consistent year over year. If your company fits this profile, a captive can provide the coverage required, while returning the underwriting profit to your company rather than a commercial insurer. Again, there is risk involved; therefore, captive ownership is a long-term strategy. ■ Metrics – There are many metrics used to determine captive feasibility. One is the total premium paid for the lines of coverage to be placed into the captive. Generally speaking, companies that pay higher premiums for coverage like workers’ compensation, auto liability, etc. will see greater long-term advantages. But, captive structures like micro-captives can be developed for smaller companies as well. ■ Time Commitment – Some of the administrative details involved with running a captive insurance program include keeping books and records up to date, preparing internal financial statements and reports, monitoring the marketplace, ensuring regulatory compliance, claims management and more. It requires time and effort to administer, so leadership must be willing to make that investment. Related Resources ■ Understanding Group Captives (BizTip video) ■ Actively Manage Your Risk with a Captive Insurance Company (article) ■ Captive Insurance Saves Trucking Company More Than $1 Million (case study) Your Team CBIZ financial and insurance professionals are always available to help you consider business decisions. When you work with CBIZ, we provide a customized consultancy service designed to enhance your loss prevention and overall risk management approach. We help you develop insurance solutions that best suit your business and situation. We provide claim management advocacy and personal service to deliver long-term value and give you a lasting competitive edge. To consider the suitability of Captive Insurance for your company, don’t hesitate to connect with Kate Houlihan, Vice President of CBIZ Insurance Services. Kate is a Past President and current Board Member of ManufactureCT. She understands the Manufacturing & Distribution sector. You can reach Kate directly at kate.houlihan@cbiz.com and 860.983.6858. You may also download the CBIZ Group Captive Brochure here.
  • 5. 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 5 EqualorEquitable–TheFamily BusinessOwner’sDilemma C onsider a scenario where a family business owner grapples with how to equalize inheritances for his four children; two are active in the business while two have careers separate from the family business. Most of the family wealth, which is illiquid, is tied to the business. Upon the death of the parents, the family faces the vexing problem of how to provide the children with equitable shares of the business without liquidating the business. Buyout Inactive Successor Owners One approach would be to leave it to the siblings who are running the business to buy out their other siblings. This raises aa number of issues, including assessing the fair market value of the business, determining the length of the payout period and whether interest would be paid until the buyout is complete. A real concern would be the prospect of short selling some or most of the business’ assets to buyout the siblings who are not active. Equal Payout Another alternative is to leave the business to all four children equally. This presents another set of challenges as the two active children would now have to involve their inactive siblings in the business’ decision making. Further, the business may not be able to financially support everyone. If that was the case, the wishes of the business owner for continuity and family harmony would be in jeopardy. Survivorship & Single Life Policies Solutions A simple, more elegant solution is for the business to purchase life insurance on the owner, naming the children who are not active in the business as the beneficiaries. If the spouse is alive or the owner has significant health issues, a survivorship policy might be the appropriate choice. The policy could also be purchased personally and put in an irrevocable life insurance trust. In this case, the amount of the coverage would be equal to 50% of the fair market value of the business, split between the two inactive children. Upon the death of the business owner (for a single life policy) and the spouse (for a survivorship policy), the two children operating the business would inherit the business, while the other children would each receive 25% of the tax-free death benefit of the life insurance policy. The business continues on, and each child receives an equitable inheritance. With the help of a professional advisory team, including a CPA, attorney, financial planner and insurance agent, an estate equalization plan (also known as an inheritance equalization plan) can be developed to pass on a family business, allowing the owner to enjoy their wealth and success while ensuring that the next generation is taken care of – whether or not they are involved in the business. Related Resources ■ The Five Biggest Myths About Life Insurance (blog) ■ Exit Here: Selecting the Best Method for Leaving Your Business (article) ■ Building and Maintaining a Solid Family Business (article) Your Team Don’t hesitate to reach out to Anne Long, President of CBIZ Life Insurance Solutions or her CLI team for insights about life insurance as a business tool. You can reach Anne at anne.long@cbiz.com and 512.784.4001.
  • 6. 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 6 (Continued on page 7) SpecialPurposeAcquisitionCompanies (akaSPACs)AreReallyHot! T he pace of innovation in manufacturing processes and across other industries continues to accelerate during the lingering COVID-19 pandemic. Seeking growth opportunities, privately owned middle-market companies potentially can tap into a ready source of capital — investors anxious to deploy their cash — through the public markets. The proceeds from selling shares offer a source of liquidity for the private company owners, their founders, early-stage employees and other members of the C suite. Share proceeds may also be used to expand the business, fund research and development, pay off debt, or all of the above. As an added benefit, becoming public can also provide companies with publicity, standing and gravitas. Historically, going public meant doing your own “IPO,” which required substantial experience in public market dynamics as well as size, time and money. Recently, there is a new way — going public via a merger with an already public special purpose acquisition company (SPAC). A SPAC is an entity that has raised public capital from generally sophisticated investors. Often referred to as a “blank check company,” this entity has cash in the bank, a leadership team and an investment thesis but does not yet have an operating business. Generally, over a period of 18-24 months, a SPAC acquires an operating business that meets its investment mandate and transitions from a “blank check” status to operating status. This is generally structured as a reverse merger, and the operating entity becomes the publicly traded company. In effect, the operating company acquires the cash of the SPAC entity as well as its public company status. In 2020, SPAC IPOs raised almost twice as much as they raised in the previous 10 years combined. As of September 2021, SPACs had raised approximately $122 billion in IPOs in the U.S. since the start of the year. That’s 23% more than the record-setting level recorded in 2020. Increasingly, private companies have been identified by SPACs as legitimate targets. This process of becoming public will involve lower costs and complexity, at least initially. However, private companies that want to be legitimate candidates must be able to meet a much faster timeline of going public as SPACs are generally looking
  • 7. 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 7 (Continued on page 8) (Continued from page 6) to move quickly. Therefore, private companies that are interested in the SPAC path to liquidity must engage in an IPO readiness process to show the investors that they have the process, procedures, people and technology to endure the scrutiny of the public markets. Once the transaction is complete, these private entities will be public entities and must be ready to comply with all related regulations that come as part of this event. IPO Readiness and Risk Minimization The process of getting ready to become a public company is complex and needs to be customized to your particular industry and situation. Forewarned is forearmed. Below we list a sample of areas we often see in need of remediation in order to get a company ready for the rigor and scrutiny of being publicly traded; these are the high priority items that are often most in need of attention for public company readiness. Accounting, SEC Reporting & Financial Operations — Companies that choose to go through a SPAC IPO will have a host of reporting considerations and may need additional guidance on technical and transactional accounting, internal and external reporting, external audit preparation/valuation, and system implementation/ integration/optimization in order to meet public company reporting requirements. Risks to be of aware of include: ■ Inadequate/untimely monthly close process ■ Lack of SEC-ready technical accounting skills to address matters such as ASC 606 (revenue)/ ASC 340 (costs) and ASC 842 (leases) ■ Historical financial statements may need to be restated and re-audited by a nationally recognized audit firm and in accordance with PCAOB audit standards (in lieu of less rigorous private company AICPA standards) ■ Manual process for internal/external reporting ■ Inadequate departmental organization and design Risk Advisory — Public companies also have unique internal controls requirements, including processes for managing financial and fraud risk, a robust internal audit function, IT general controls, financial and operational controls, and, in this environment, processes for cybersecurity. Specific indicators that improvement to your risk management function may be needed include: ■ Lack of a formalized fraud risk assessment process ■ Inadequate controls to detect or prevent accounting errors and fraudulent financial practices ■ Limited or non-existent documentation or controls over information technology Additional Content & Resources Change Is Coming to the R&E Credit! As changes enacted in 2019 tax legislation kick in starting January 2, 2022, it clearly is time for a closer look. Strategies to Help CFOs Navigate Resource Limitation. This guide highlights the trends affecting your personnel and solutions for addressing emerging opportunities and challenges. What the Delta Variant Means for Return-to-Work. CDC’s updated guidance for employers. Tips to Ease the Renewal Process in a Hardening Market. Five keys to ensure you are well prepared. Leading a Hybrid Workforce. Your ultimate guide to successful leadership in a unique environment (download here). Valuations are more important than ever! David Werch and Tim Kolgen of CBIZ Valuation discuss COPE assessments, what underwriters are looking for when reviewing a schedule of values and the critical role of accurate data. Vaccine Strategy: Many Questions, Many Challenges – an update from CBIZ Benefits professionals. Webinars Deciphering the Employee Retention Tax Credit Fine Print. On-demand available here. Steps to Conducting a Successful Insurance Risk Analysis. On-demand available here. In the News Industry Week: Optimizing Labor to Combat Worker Shortage Forbes: Top Five Ways to Become Agile and Lean In Your Supply Chain
  • 8. (Continued from page 7) 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 8 ■ Lack of information security governance/plans and procedures ■ Inadequate enterprise and board-level risk considerations Tax — Preparing to go public via a SPAC will involve some of the same tax processes reporting updates as would an IPO, including tax structure, value drivers and internal controls analysis. Signs your tax department may need additional guidance include: ■ Structure and legal entity issues ■ Potential tax contingencies for matters such as state & local, sales & use, or international tax ■ Inadequate disclosures and internal controls ■ Insufficient attribute planning (R&D studies, IRC Section 382 analysis) Insurance & Benefits — The underwriting for your D&O liability insurance for a SPAC will address these factors: ■ Advisory team – The stronger your advisory team (e.g., outside counsel, investment bank, auditors), the lower the inherent risk in being public. ■ Background of management team and board of directors – Along with historical claims experience, this is a substantial underwriting consideration in evaluating the risk of offering D&O insurance. The more highly qualified and experienced your team is in the targeted class of business, the lower the risk. ■ Potential conflicts of interest – Underwriters will be on the lookout for potential conflicts of interest between the sponsors, the SPAC and the operating company. For example, too much additional compensation to management for sponsoring the SPAC or sponsors acquiring a company where a board member has a previous relationship and will benefit from the transaction can be issues.  ■ Expected amount to be raised — The larger the fund raise, the higher the risk (and cost) of D&O insurance. ■ Target class of business to be acquired and management experience in this class — Underwriters will take into account the targeted class of business. The lower perceived the risk of the targeted class and the better management’s experience aligns with the targeted class, the better the terms for the D&O program. ■ Geography of target business — Underwriters want to place business in jurisdictions where they understand the laws and regulations. U.S.- based businesses are easier to underwrite than companies doing business internationally. ■ Target criteria provided in the S-1 — The more specific the information in the S-1 about the target criteria, the more comfortable an underwriter will feel. ■ Federal forum provisions — An S-1 that includes Federal Forum Provisions will be received more favorably. These are provisions in corporate charters requiring that claims under the Securities Act of 1933 (the “33 Act”) be brought in federal court. The goal of the provisions is to reduce litigation over alleged false or misleading S-1 registration statements. Compensation — Public companies have different compensation needs, so your company will need to re-evaluate market competitiveness of executive compensation, short- and long-term incentive plan design, employment agreements, and sales compensation plans. If you experience any of the following, consider enlisting additional support for your compensation approach: ■ Struggle to attract/retain executive talent (unsure of competitiveness of total rewards package) ■ Executives and shareholder interests are not aligned ■ Key terms of employment agreements need updating (e.g., defining “for-cause” and “not-for- cause” severance, severance related to change- of-control, non-compete and non-disclosure definitions and requirements) Bottom Line SPACs have been around for several decades but have gained in popularity over the past two years. These vehicles enable companies to become publicly traded without following the traditional IPO route. Merging with a SPAC generally allows companies to go public more quickly but requires the target entity to be ready for such a transaction. The SPAC process is subject to different regulations than a traditional IPO, and there may be less scrutiny than would occur in the traditional IPO process, which can make them financially riskier for investors. Although not required, taking a structured IPO readiness approach to identify areas of need prior to engaging in a SPAC transaction can address many of the primary issues as noted in this article and can shine a much more appealing light on your company for potential investors. Your Team Should you have questions about SPACs or the IPO process, don’t hesitate to reach out to our IPO Advisory professionals at 415.264.3731 or find us online here. For detailed information on the D&O insurance requirements, connect with Scott Kegler of CBIZ Insurance Services at 215.840.2353.
  • 9. NAM’sManufacturers’OutlookSurvey: ThirdQuarter2021 Manufacturing activity remains robust, especially demand, with the U.S. and global economy continuing to rebound from the sizable declines in spring 2020. Real GDP and manufacturing production now exceed pre-pandemic levels, which is encouraging. And yet, significant challenges remain, including supply chain disruptions, worker shortages and soaring costs. The Manufacturers’ Outlook Survey for the third quarter of 2021 found 87.5% of respondents felt either somewhat or very positive about their company outlook, down from 90.1% in the second quarter. The NAM Manufacturing Outlook Index measured 58.4 in the third quarter, down from 60.2 in the second quarter. The data are consistent with solid growth in manufacturing activity, but with some easing from more rapid paces in the second quarter, when the outlook had registered the best reading in nearly three years and some measures had reached record highs. Download the full report. Manufacturing Output: Strongest Since January 2019 Despite Slowing in August Manufacturing production slowed significantly in August, edging up 0.1% for the month after rising by 1.6% in July. Much like the larger economy, manufacturing production has softened likely due to supply chain disruptions, workforce shortages and rising raw material costs. Still, manufacturing production has increased 5.9% over the past 12 months, or 3.2% year to date, with output in the sector the strongest since January 2019. Similarly, manufacturing capacity utilization edged up from 76.6% in July to 76.7% in August, also the best reading since January 2019. Looking at annual average growth rates, I would expect that manufacturing production will have risen by 6.8% in 2021, with 4.2% growth in 2022. Regional surveys from the New York and Philadelphia Federal Reserve Banks reflected stronger manufacturing expansions in September, with a positive outlook for the next six months. The forecast for capital spending in the Empire State release was the best since January 2018, with technology spending seen rising at a record pace. Yet, delivery times and pricing pressures remained significant challenges in both districts. Retail sales rose 0.7% in August, rebounding from the 1.8% decline seen in July and continuing the seesaw pattern seen over the past five months. Motor vehicle and parts dealers reported 3.6% fewer sales in August, with the chip shortage and supply chain issues hindering spending in that category. Excluding motor automobiles, retail spending increased 1.8% for the month. Small business owners continue to experience record- level challenges with prices and employment, according to the National Federation of Independent Business. Half of all respondents in the August survey said that they had job openings that they were unable to fill, with 60% saying that there were few or no qualified applicants, also an all-time high. Still Leading the Way: Manufacturers Make Creators Wanted Live Possible Creators Wanted, the workforce campaign of the NAM and the Manufacturing Institute, is getting ready to hit the road. The campaign formalized its COVID-19 safety protocols and is employing state-of-the-art technologies, like Sphere Synexis, provided by legacy sponsor Trane Technologies, to continuously fight viruses, bacteria and other hazards in the air and on surfaces. The mobile experience, along with other programming events and new online resources, will bring the story of modern manufacturing to communities across the country. ■ The experience, recently endorsed by The Dallas Morning News, is designed to capture the imaginations of students, teachers and parents and inspire the next generation of manufacturers. ■ It will complement the upcoming release of the NAM and MI’s innovative online resources for those seeking a career in manufacturing. Coming to a town near you: The NAM and MI released the following Creators Wanted Live tour dates and stops. ■ Oct. 4–7: Columbus, Ohio ■ Oct. 12–15: Charlotte, North Carolina ■ Oct. 20–22: West Columbia, South Carolina ■ Nov. 8–10: Pella, Iowa ■ Nov. 16–18: Freeport, Texas ■ Nov. 30 – Dec. 3: Dallas, Texas Wait, there’s more! Community programming stops are also coming to Detroit, Michigan; Guthrie, Kentucky; Pittsburgh, Pennsylvania; and Carson City, Nevada. And a new suite of digital and online experiences and tools will bring the campaign to every state. ■ ICYMI: NAM’s Jay Timmons Discusses Creators Wanted, COVID-19 Vaccines and Reconciliation on CNBC Watch here. NewsfromtheNationalAssociationofManufacturers 1-800-ASK-CBIZ • CBIZ Manufacturing & Distribution National Practice @CBZ CBIZ BizTipsVideos PAGE 9