ITAC Annual Report

ITAC's Fiscal Year 2005 Annual Report is complete! We had a tremendously busy year; during FY 05, ITAC assisted 324 businesses through consulting, education, and training. Our clients reported that as a result of our services, they

created and retained 638 new jobs,
reduced their costs by $12 million,
increased or retained $53 million in sales,
helped divert approximately 4784 tons of waste from landfills, and
invested $11 million in new building and equipment.

Call ITAC at 212-442-2990 to obtain a free copy of ITAC's FY 05 Annual Report, or download a pdf of the report HERE.

Answer Your Business's Questions with ITAC Online Solutions

Have you ever had a technical question, or needed research assistance, but you didn't know where to turn or who to ask? ITAC can provide the answers you need through ITAC Online Solutions. Online Solutions is a NO-COST technical assistance service that provides technical, business, research and information assistance quickly and easily. The Online Solutions service includes an on-line library of information with a database of technical business and engineering documents and resources. If you can't find exactly what you need in the library, Online Solutions includes a technical, marketing and problem-solving "Ask an Expert" hotline service that ITAC also provides FREE to our customers. Click here to find answers to your business questions at ITAC Online Solutions.

Exporting Components to the European Union? New RoHS/WEEE Environmental Regulations May Affect You.

The European Union adopted a set of product requirements for all components that will be sold for purchase throughout EU countries. These regulations, referred to as RoHS and WEEE requirements are EU Directives that ban a list of specified materials which are considered hazardous to human health and the environment, especially when disposed at the end of their useful life. Manufacturers of components for household appliances, IT and telecommunications equipment, electronic devices, lighting equipment and many other products that are exported for use in Europe, China and Japan may be affected. The ban takes affect on new products sold in the EU after July 6, 2006. Several states within the US are considering adopting similar regulations.

The Environmental Protection Agency will be offering an SBIR grant to firms that are substituting or eliminating mercury in products (mercury is one of the substances prohibited by RoHS/WEEE regulations). If you currently produce a product that contains mercury, or make a mercury-free version of a product that usually contains mercury, you may be eligible for funding to help you commercialize your product without mercury. Visit http://es.epa.gov/ncer/sbir/ for more information about the grant program. ITAC staff can answer this and other questions about the potential impact of RoHS/WEEE regulations for your firm; contact Stefanie Feldman at sfeldman@itac.org or 212-442-2990 for more details.

A Call to Local Innovators: TechNYC Census

Is your firm conducting research and development in NYC? Then stand up and be counted! TechNYC, a program of the Industrial and Technology Assistance Corporation (ITAC) is conducting a census of New York City technology businesses. Register at www.technyc.org/registration.html to ensure that your business is counted among the thousands of other technology firms in NYC! The first 200 firms to register will receive a free USB memory stick! For more information, or to register your business, visit www.technyc.org or contact Leah Archibald at 212-442-2990 or larchibald@itac.org. ITAC is a non-profit economic development organization that works one-on-one with manufacturing and technology firms in NYC--visit www.itac.org for more details.

R&D Funding for New York's Tech Companies: Small Business Innovation Research (SBIR) program

By Lenzie Harcum
SCI2 Incubator, Pace University

"Businesses should be aware that the SBIR program offers real dollars for development. Avoiding the program will ignore serious opportunities for growth," notes Greg Cumberford, Vice President of Strategic Initiatives at Gaia Herbs.

The federally funded Small Business Innovation Research (SBIR) program offers $2 billion annually to small early-stage and mature businesses to conduct research and development. Tech and manufacturing firms are increasingly taking advantage of the program to fund their product development activities.

"You can look at our operation and see the benefit of SBIR." says Cumberford of Gaia's operations. "We're not doing rocket science here, but our SBIR-funded research is benefiting our business."

Start-up Research Funding

SBIR Phase I awards are typically in the $100,000 range and are best described as a research feasibility study. Phase I "is a $100,000 investment for the agency to get to know you," says Gail Greenwood. Gail and husband Jim provide SBIR consulting services nationally through their company, Greenwood Consulting Group.

As a Harvard Professor in 1986, Dr. Bob McMahan felt frustration with academia. This combined with "growing-up in an entrepreneurial household" motivated his start-up. "I started my company from my kitchen table in Boston with an SBIR grant from NASA," reflects McMahan. McMahan Research Laboratories produces light-measurement and spectral-measurement equipment. His initial Phase I and II NASA SBIR awards exceeded $1 million.

With the help of SBIR funding, Children's Progress Inc. of New York City has developed academic assessment tools to support student learning. To date, the company has been awarded close to $1 million in SBIR research funding from the National Institutes of Health and the National Science Foundation. Reflecting on his SBIR experience, President and CEO, Kevin Greaney's most important piece of advice to new SBIR applicants is "have patience--nothing happens overnight." Case in point, the company's first SBIR application was rejected and the resubmission was not accepted immediately. "It is, at the very least, a nine month process." In reference to SBIR success of Children's Progress, ITAC's Franklin Madison noted, "Qualifying for SBIR funding demonstrates a great deal of technical merit."

SBIRs Build Value

"The real money is found in the Phase II awards," notes Gail Greenwood. "You are trying to establish credibility in Phase I to convince the agency to invest in you for Phase II."

"SBIR grants increase the value of the company. Consider it 'risk mitigation' through a relationship with NIH," says Joe Smith, CEO of Syntherica Corporation. Syntherica is Smith's second SBIR funded company. His first company, Novalon Pharmaceutical Corp., won five NIH SBIR awards and was sold to Karo Bio AB in 2000.

"The SBIR process can free the young company to think about business applications. It helps focus the company before turning to VCs." says Dr. Stephen Friedman, President and CSO of Syntherica. "An R&D company needs to build value through SBIR grants."

The value building process of SBIR funding has enabled Children's Progress to leverage equity funding from angels and venture capitalists to further its growth. "Our equity totals in excess of $8 million," noted Greaney. "At this stage, we are poised to expand and hire additional researchers."

Keep Your Eye On Commercialization

The SBIR program is for established companies also. "We were a well established herbal dietary supplement company with national distribution before becoming aware of SBIRs," says Cumberford. In 2001, the company entered into the SBIR program in a big way - its first SBIR award, for Echinacea research, exceeded $2 million. Gaia Herbs was formed in 1987, and its 85 employees manufacture and distribute herbal products to a worldwide market. Gaia's recent SBIR awards have enabled them to perform extensive research on their line of herbal products. Gaia has won SBIR awards from both the NIH and USDA.

"SBIR is the enabler," says Bob McMahan. "But you must keep your eye on commercialization." Dr. McMahan should know since SBIR funding fueled McMahan Research's growth. When the company was acquired in 1999, it employed over 100 people in Massachusetts and North Carolina. Dr. McMahan is currently North Carolina's Senior Advisor to the Governor for Science & Technology.

"To win an SBIR, the proposed research must have a high degree of novelty and relevance. It also must have a high quality research team and collaborators," advises Cumberland.

Numerous SBIR resources, including proposal preparation assistance, workshops, and conferences are available for SBIR applicants. For more information, contact ITAC's SBIR Specialist, Franklin Madison at fmadison@itac.org. Other SBIR resources are available at the SBIR Gateway, www.zyn.com.

Lenzie Harcum is the Business Development Coordinator for Pace University's SCI2 business incubators located in lower Manhattan and Yonkers. The Pace University SCI2 incubator is looking for high potential early stage companies to locate in the Yonkers incubator facility. SCI2 business incubator information can be found at www.sci2.org

Upcoming Events

Lean Manufacturing 101 Workshop
Date: April 11, 2006, 8:30 am
Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY
Cost: $95

Would you like to produce faster, better and less expensively with your existing resources? What if, in doing so, you could increase your sales, improve customer satisfaction and increase profitability? Principals and key managers at local manufacturing firms should attend this workshop to learn how lean manufacturing techniques help firms produce more with existing resources by eliminating non-value added activities. Workshop simulation exercises help participants experience first hand how lean techniques increase space utilization, improve quality, reduce cycle time, improve delivery performance, and reduce work-in-process. Application of lean techniques enables firms to increase profits, improve customer satisfaction and become more competitive.

For more information contact Mei Sit at 212-442-2990 or msit@itac.org

Supervisory Development Training
Date: April 19, 2006 through June 21, 2006, 6 sessions
Location: ITAC Offices, 253 Broadway, Suite 302, New York, NY
Cost: $250

Supervisory Development training is for smaller companies that cannot afford, or don't have a large enough staff to host their own training on site and want to better manage their staff. Learn how your firm can grow new supervisors, or improve the leadership and communication skills of their existing ones.

For more information or to register, contact Pamela Bradley at 212-442-2990 or pbradley@itac.org.

About ITAC

ITAC is a non-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. We provide indepth one-on-one technical assistance for New York City manufacturers and technology firms to help them stay competitive in the marketplace. ITAC's unique combination of business expertise and expert resource network makes us a valuable partner to help NYC companies grow, change and thrive.

ITAC receives significant financial support from the New York State Office of Science, Technology and Academic Research (NYSTAR), New York's high-technology economic development agency, and the National Institute of Standards and Technology (NIST), and Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®'s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.

March 2006

Good News for Manufacturers in Greenpoint/Williamsburg