Community Spotlight

Community Spotlight

 

Mayor William Reichelt

Mayor William Reichelt says West Springfield is making significant progress on many of the goals he set when first elected in 2015.

While the country will be celebrating its 250th birthday in 2026, West Springfield will mark that same milestone two years earlier.

And the planning for what will be a huge party is very much underway, said Mayor William Reichelt, noting that a committee has been put together, chairs of that board have been selected, and a dialogue will soon be launched with town residents to determine how, where, and in what ways they want to observe that birthday.

And while two years will go by quickly, especially with all this planning and execution to handle, this community that operates as a city but still calls itself a town could look much different by the time the big party kicks off.

Several of its major roadways, including Memorial Avenue and sections of Route 5, will be redone or in the process of being redone (hopefully the former, said the mayor as he crossed his fingers — figuratively, anyway) by then. There will be some new businesses on those stretches — Amherst Brewing is moving into the former Hofbrauhaus property, for example — and some of them well before 2024. And there may actually be some cannabis-related ventures in this town that has thus far said ‘no’ to this now-booming industry; a critical City Council vote on the matter took place on July 18, just after this issue of BusinessWest went to press, and Reichelt, who backed a measure to permit the licensing of such establishments, was confident that he had the requisite six votes for passage.

“Once I got into this, there was so much I wanted to do, and I quickly realized that nothing happens fast.”

“We’re in a much different place than we were four years ago, when it was 8-1 [against],” he said, adding that the measure would enable businesses to be located on large stretches of Riverdale Street, the preferred location among those in that industry.

And there is a chance, albeit a slight chance at this point, that the massive power-generating plant near the rotary at the Memorial Bridge may disappear from the landscape it has dominated for decades. Indeed, it has been decommissioned, and its owners are deciding what to do with the property.

“We’re in discussions now about what remediation will look like; I would like to see a clean site so another developer can do something with it, but we’re still in the talking stage,” Reichelt said, adding that the community is looking closely at what happened with a similar but larger property in Salem that is being redeveloped.

The renovated 95 Elm St., now known as Town Commons

The renovated 95 Elm St., now known as Town Commons, features an eclectic mix of businesses and will soon add a restaurant.

But enough about what might and might not happen over the next two years. For now, West Springfield and its mayor are making progress on many of the goals he set down when he was first elected in 2015, including infrastructure, new schools and additions to existing schools, attracting new businesses, and creating what he called a “walkable downtown” with plenty of attractions.

Early on, he said he wanted to create ‘another Northampton.’ “But people have this weird dislike of Northampton, for some reason, so now, we say we want it to be like West Hartford,” Reichelt noted, adding that his community is certainly moving in that direction with initiatives ranging from a walking trail and improved infrastructure along the historic town green to the reinvention of 95 Elm St.

Formerly home to United Bank and still known to many as the ‘United Bank building,’ the three-story office complex is now home to a mix of businesses, and a new restaurant will soon be added to that mix.

For this, the latest installment of its Community Spotlight series, BusinessWest turns its focus on West Springfield and the many forms of progress being seen there.

 

Party Planning

Returning to the subject of the 250th birthday party, Reichelt said the wheels are in motion for that celebration, and some pieces are starting to fall into place.

That list includes a special commemorative 250th birthday beer to be created by Two Weeks Notice Brewing, which set up shop in West Springfield several years ago and has established a firm presence in the community; no word yet on just what this brew will be or what it will be called.

Meanwhile, old documents and photos are being collected, and a commemorative history — a significant update to one produced for the 200th birthday in 1974 — is being planned, said Reichelt, adding that there is preliminary talk of staging an event similar to the Taste of West Springfield that was put on for many years by the community’s Rotary Club.

“We’re talking about bringing something like that back, maybe with a food truck festival on the common,” he said, reiterating that planning for the 250th is still very much in the early stages.

And while this planning continues, officials are making progress on a number of different fronts in the community, everything from the planning of infrastructure work on Memorial Avenue and Riverdale Street to determining how to spend roughly $8 million in ARPA funds (other infrastructure projects are at the top of that list) to contemplating what might be done if that massive power plant actually comes down.

Reflecting on that list, and his first six and half years in office, Reichelt, now one of the longest-serving mayors in the region, said he’s learned during his tenure that it often (always?) takes a long time to get something done, and, as a result, communities and those who lead them must be patient and perseverant.

“Once I got into this, there was so much I wanted to do, and I quickly realized that nothing happens fast,” he told BusinessWest. “Projects that I started talking about back in 2016 … we’re just starting to get funding for and breaking ground now.”

As an example, he pointed to the last remaining piece, the restaurant at 95 Elm St., something he’s been pursuing for years and an element he believes will be a nice compliment to what already exists on that street — a few restaurants, the Majestic Theatre, and a bagel shop already at 95 Elm — and make the area more of a destination.

Hofbrauhaus

At top, the town common now boasts new walking paths. Above, the former Hofbrauhaus property will become a new site for Amherst Brewing.

It’s also taken some time to make the planned improvements to the green area, which now boasts new traffic lights, improved intersections, and a half-mile loop for walking and other uses, said the mayor, adding that a similar upgrade is planned for Elm Street.

“We want to bring people downtown and have it be a spot where you can walk around, go to the theater, have dinner in a couple of different places … make a night of it,” he said. “We have great commercial corridors on Memorial Avenue and Riverdale, but there’s no real place for people in town to go; to have a walkable downtown would be nice. It’s nice to see come that come to fruition after six years.”

Meanwhile, there are ambitious plans on the table for improving the full length of Memorial Avenue, from the Route 5 rotary to the recently widened Morgan Sullivan Bridge. The $25 million, state-funded project is slated to commence next April, and it will take two years to complete.

Significant work is also planned for Route 5 (Riverdale Street) and specifically the stretch north of I-91, said Reichelt, adding that the broad goal is to redevelop that section of the street, which has always been far less popular with retailers than the stretch south of the highway.

“There’s this perception … businesses have no desire to be north of the I-91 overpass,” he said. “They all want to be between the overpass and East Elm connection, where are no vacancies.”

As for the aforementioned power plant, it is very early in the process of deciding what its fate will be, said Reichelt, adding that, if all goes well, the community could have 10 acres of land right off Route 5 and Memorial Avenue that could be redeveloped for a number of uses. There is a landfill next door, so there are some limitations, he noted, but industrial, commercial, and infrastructure opportunities exist, including a connection to the rotary so that motorists can go both north and south from Agawam Avenue.

 

What’s Down the Road

But much of the attention is now focused on cannabis-related businesses, that July 18 vote, and what will likely happen if that measure passes.

At present, the only business allowed in West Springfield for cannabis-related ventures is to advertise their products and services on billboards along the highways that run through the community. That will change, of course, if the measure passes, as the mayor predicts it will, and he expects West Side to be an attractive mailing address for such companies.

“We want to bring people downtown and have it be a spot where you can walk around, go to the theater, have dinner in a couple of different places … make a night of it. We have great commercial corridors on Memorial Avenue and Riverdale, but there’s no real place for people in town to go; to have a walkable downtown would be nice. It’s nice to see come that come to fruition after six years.”

Indeed, Reichelt said he no longer uses the phrase ‘crossroads of the region’ to describe his community, preferring ‘retail capital of Western Mass.,’ a nod to the many regional and national retail heavyweights — from Costco to Dick’s Sporting Goods to Home Depot — that have located stores in the community.

The traffic that drew those major retailers should also attract cannabis businesses and especially dispensaries, he added.

Reichelt noted that he believes that there is sufficient momentum to get the measure passed, and there may be more with the recent 3% increase in property taxes, the town’s first in several years. Indeed, he said the tax revenue generated from cannabis-related businesses and its potential to help prevent another such increase in rates may help incentivize the council.

“It’s four years later, and the landscape has really changed,” he said. “You hear a lot of the same legalization arguments that you heard back in 2016, but that argument was settled in 2016 — it’s legal in Massachusetts now. To think that it’s not in town is … not based in reality. There are signs on Riverdale and Westfield Street and Memorial Avenue pointing to the different places you can buy marijuana outside of town; look at the tax money that’s leaving here.”

While the July 18 date was one to circle, there’s another key date fast approaching — Sept. 16. That’s the kickoff to the Big E, which will take another big step this year to returning to normal — as in 2019 conditions.

The fair was canceled in 2020, and while it was staged in 2021, it did not have a full lineup of entertainment, said Eugene Cassidy, president and CEO of the Big E, adding that, for 2022, it will be all systems go.

Much of the entertainment has already been announced, he said, noting that Lynyrd Skynrd will close the fair this year. Meanwhile, there will be a number of new attractions and events — including an opportunity for fair attendees to communicate with those at the International Space Station — and even food items, including noodles, vegan offerings, and full-sized donuts.

Cassidy said advanced ticket sales are running well ahead of the pace for last year, which was a near-record year for the fair, and other strong years. “People don’t even know what what the fair is going to offer, but they’re already supporting it by buying tickets, sometimes nine months in advance of the event,” he told BusinessWest. “And that provides a great deal of emotional support for those of us who run the place because we know that our patrons care about the organization.”

But while projections are certainly good for this year, he will watch closely what happens at several other state and regional fairs set to open in the coming weeks.

Indeed, one wildcard could be gas prices, which, while they’re coming down, remain historically high and could deter some families from driving long distances for entertainment.

 

Bottom Line

Reflecting on why this city still calls itself a town, Reichelt recalled that the vote to change the charter and convert from town government to city government was close — as in very close.

“They decided when they wrote the town charter to maintain the ‘town’ name to maintain that town feel,” he said, adding that many people have approached him and said ‘Will, it doesn’t feel like a town anymore.’

Such sentiments lead him to believe that maybe, just maybe, by the time West Springfield turns 250, it will not only operate a city government, but call itself a city.

If so, that will be only one of many potentially significant changes that will take place between now and then in a community where there is always movement and the landscape is, well, a work in progress.

 

George O’Brien can be reached at [email protected]

Employment

Employers Should Look at Each Candidate as an Individual

By Kelly Moulton and Mia McDonald

 

In the midst of the Great Resignation, employers are desperate to hire new staff. Insider Intelligence reports that in 2022, approximately 20.2% of the U.S. population will be made up of Generation Z, meaning employers will increasingly need to turn to this group to fill roles.

Born between the years of 1997 and 2012 and sometimes called ‘screenagers’ for their attachment to mobile devices and upbringing in a digital environment, the strengths and weaknesses of Gen Z, as well as what they have to offer to the workforce, differ significantly from previous generations in some ways, but mirror their predecessors in other ways.

Kelly Moulton

Kelly Moulton

Mia McDonald

Mia McDonald

Edward Segal, in his Forbes article, “How and Why Managing Gen Z Employees Can Be Challenging for Companies,” discussed the challenges Gen Z applicants present to employers. Among those, noted several executives, are a lack of discipline and patience as well as the need to develop a work ethic.

Gen Z is not unique in facing broad generational criticisms. Baby Boomers and Millennials can relate to the struggle of being defined by their generation. But just like prior generations, Generation Z is diverse in its composition, motivations, and beliefs. Working to understand each of these components can help generate success for both employers and Gen Z employees, while increasing Gen Z commitment to the employer.

Raised in different decades and growing up utilizing different technologies, it can be a challenge to integrate intergenerational individuals employed in the same workplace. But with the influx of young workers entering the market, employers need to continue to learn and adapt so they can obtain and retain the best applicants, just as they require their new hires to adapt, learn, and grow within their roles.

A great way to help acclimate new hires to the community and culture of the workplace is to integrate them into a working team of established professionals who can help ease their introduction. This is a strategy we both experienced when we started at Meyers Brothers Kalicka.

MBK created a space where both of us could work directly and collaboratively with a team of other young professionals, allowing us to quickly meet and bond with co-workers in various specialties. This made for a welcoming, and less intimidating, entrance into the firm and the demands of public accounting in particular. This strategy also provides a broad base of different people to go to with questions, improves motivation and accountability, and fosters a teamwork-driven environment.

“Gen Z is not unique in facing broad generational criticisms. Baby Boomers and Millennials can relate to the struggle of being defined by their generation. But just like prior generations, Generation Z is diverse in its composition, motivations, and beliefs.”

Another important consideration is that many Gen Z workers entering the employment market have just completed school during a global pandemic. This has fostered adaptability to different styles of working and learning, as many recent graduates were required to manage their own time and resources with remote education. Employers should try to mirror this and offer similarly flexible work hours and locations.

Companies need to ask themselves, are we truly devoted to our employees maintaining work-life balance? Taking this non-traditional approach can, in turn, allow employees to pursue other interests and certifications. Generation Z is very aware of the importance of mental healthcare, often seeking out employers that understand and support a balance between their work and personal pursuits, from time with friends and famil to higher education or community events. Allowing more flexibility for staff ultimately makes for a happier work environment and more productive, connected employees.

Employers can successfully integrate and take advantage of the strengths of Gen Z new hires if they take a multi-faceted and individualized approach. This can be encompassed with the collaborative work environment, as well as flexible work hours and locations arranged to accommodate the needs of each individual. Employers need to allow for independence — showing that they trust and value contributions — while also setting clear expectations and providing consistent feedback to foster growth. This will create a sense of empowerment, which will be a vital trait for these future leaders.

For this more hybrid, flexible strategy to work effectively, communication is essential. Whether it be a quick phone call, email updates, or regular in-person check-ins, setting standards for communication will help to keep everyone on the same page.

It is important to understand that there is no cookie-cutter approach that will work in all cases, and employers should not try to generalize a strategy for all young applicants. Perhaps the most important thing employers can do is set aside preconceived notions about the generation, and instead look at each candidate as an individual. They should consider the ways in which each individual learns best, as well as the specific projects assigned. What is the overarching goal of the project, and what is the key takeaway that can be taught? Where can we allow for flexibility to best accommodate their needs and set them up for success?

For Gen Z applicants, it is important to remember that what is valued most by employers is a positive attitude and a willingness to learn. Beyond this, new hires and even current employees should always look for ways they can pull down tasks from higher-ups; offering time to check in and help on any available tasks will show initiative and generate more respect. Employ your strengths in digital communication and technology, but be open-minded and use your first few years to further diversify and learn as much as you can from those around you. Immerse yourself in your environment and seek out opportunities to bond with your co-workers and make connections. Networking not just outside of your company but within it as well will help hires work well with a variety of people and grow invaluable interpersonal skills that cannot be taught in a textbook.

With compromises in attitude and an appreciation for change and development from everyone in a workplace, employers will be able to reap the benefits of the upcoming generation of workers and future leaders.

 

Kelly Moulton and Mia McDonald are associates at the Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

Law

Use with Caution

By Amelia J. Holstrom, Esq. and Trevor Brice, Esq.

 

Over the past several years, employers have turned to various software-based recruitment and employment screening tools to evaluate applicants and employees. The software, which uses artificial intelligence and various algorithms to make decisions, often helps employers evaluate more applicants in a shorter period of time, select individuals for interviews, or evaluate current employees for raises or advancement at the business.

But could the use of this software be creating legal liability for your business? Maybe.

In May, the Equal Employment Opportunity Commission (EEOC), the federal agency that enforces federal anti-discrimination in employment laws, issued guidance to employers, titled “The Americans with Disabilities Act and the Use of Software, Algorithms, and Artificial Intelligence to Assess Job Applicants and Employees.” The guidance addresses three main areas, or ways, in which software-based screening tools may violate the Americans with Disabilities Act (ADA), if employers are not careful.

First, the EEOC guidance reminds employers that if their software-based screening tool does not have a process for individuals to request accommodations that may be necessary for an individual with a medical condition to be fairly and accurately rated by the software or use the software, it may violate the ADA. Under the ADA, employers are required to provide reasonable accommodations to applicants and employees. For example, it may be a reasonable accommodation to allow a visually impaired applicant or employee to be evaluated through a non-computer-based screening tool.

Amelia J. Holstrom, Esq.

Amelia Holstrom

Trevor Brice

Trevor Brice

“The EEOC warns employers that without proper safeguards, a software-based screening tool may unintentionally (or intentionally) screen out individuals with disabilities.”

Second, the EEOC warns employers that without proper safeguards, a software-based screening tool may unintentionally (or intentionally) screen out individuals with disabilities. The EEOC specifically referenced ‘chatbot’ screening tools, which are designed to engage in communications online through texts and emails. A chatbot might be programmed with an algorithm that rejects all applicants who mention in conversation with the chatbot that they have a gap in their employment history. If this gap in employment is due to a medical condition, then the chatbot may function to screen out the applicant unlawfully due to their disability, even though the individual would be capable of performing the essential functions of the position for which they were applying with (or without) an accommodation.

Finally, the EEOC guidance reminds employers that if a software-based screening tool asks questions that require employees to disclose medical conditions or other disability-related information, it may be an unlawful, disability-related inquiry that violates the ADA.

The guidance also cautions employers that they can be liable for discrimination caused by software-based screening tools, even if the employer did not create the tool. In other words, utilizing software developed by an outside vendor does not insulate an employer from liability.

Although the EEOC highlighted several issues that might make the use of software-based screening tools problematic under the ADA, it also provided employers with guidance on steps they can take to help mitigate their risk, including, but not limited to: making it clear how an individual may request an accommodation related to the screening tool or the use of the software; promptly and appropriately responding to all requests for such accommodations; thoroughly questioning the methodology used by the software the businesses uses, including asking the software provider whether it was developed with individuals with disabilities in mind and what the software provider did to make the interface accessible to individuals with disabilities; and asking the software provider if it attempted to determine if any algorithm used by the software disadvantages individuals with disabilities.

Employers should not expect the concerns raised by the EEOC over the use of software-based screening tools to stop at the ADA. Just weeks before the EEOC issued this guidance, the EEOC filed a lawsuit against iTutorGroup Inc., Shanghai Ping’An Intelligent Education Technology Co. Ltd., and Tutor Group Ltd., alleging that the companies’ online recruitment software was programmed to automatically reject female applicants over age 55 and male applicants over age 60 in violation of the Age Discrimination in Employment Act.

Given the growing use of software-based screening tools, it is imperative that employers thoroughly evaluate their own software and their vendor-provided software for any possible discriminatory bias and seek legal advice with regard to their evaluation whenever appropriate. u

 

Amelia Holstrom is a partner with the Springfield-based law firm Skoler Abbott, and Trevor Brice is an associate with Skoler Abbott; (413) 737-4753.

Law

Rallying Cry

On July 13, the Massachusetts State Senate unanimously passed a bipartisan bill protecting providers, residents, and visitors to the Commonwealth who engage in legally protected reproductive and gender-affirming healthcare.

“An Act Expanding Protections for Reproductive and Gender-affirming Care” includes provisions preventing the Commonwealth’s cooperation with ‘bounty-style’ anti-abortion and anti-gender-affirming care laws in other states, mandates health-insurance coverage for abortion and abortion-related care with no cost sharing, ensures access to emergency contraception, and provides confidentiality to providers of reproductive and gender-affirming care.

“We cannot let other states threaten Massachusetts pregnant and transgender people or the providers who take care of them,” said Senate President Karen Spilka. “Massachusetts will not waver in protecting our residents’ rights. The Legislature prepared for the end of Roe v. Wade by passing the ROE Act in 2020, which ensured the continuation of reproductive healthcare services when we could no longer count on the federal government. Now, we must prepare our Commonwealth for the potential further erosion of our rights and protections at the federal level. I want to thank my colleagues in the Senate for their swift and decisive action.”

The bill, filed by state Sen. Cindy Friedman, expands on her amendment to the Senate FY 2023 budget, which was filed in response to the leaked U.S. Supreme Court opinion on Dobbs v. Jackson and adopted by the Senate in late May.

Friedman, Senate chair of the Joint Committee on Health Care Financing and the lead sponsor of the bill, called the legislation “a monumental step forward in Massachusetts, as we are seeing increasingly more anti-abortion and anti-gender-affirming care legislation rise across the country. We must do everything to protect the rights of our providers, patients, and visitors to the Commonwealth. As we further realize the impact of the U.S. Supreme Court’s decision in Dobbs v. Jackson in our Commonwealth, we will continue to fight these attacks on reproductive and gender-affirming care with meaningful action.”

State Sen. Adam Gomez added that the bill sends a clear message: “we will not let the rights of pregnant or transgender people be threatened in our state. The decision handed down a few weeks ago from the United States Supreme Court means the criminalization of a deeply personal healthcare decision made between a child-bearing person and their doctor. This criminalization will disproportionately impact low-income communities, communities of color, and single parents. This legislation will ensure that these vulnerable groups will not have to worry in our state when it comes to their reproductive health.”

Under the legislation, physicians, nurses, physician assistants, pharmacists, psychologists, genetic counselors, and social workers are insulated from legal action in Massachusetts courts as a result of providing healthcare services that are legal in Massachusetts. This language specifically protects reproductive and gender-affirming healthcare, which has been the target of laws passed in states like Texas and Oklahoma that seek to limit this critical care beyond their states’ borders. This bill also allows anyone who faces abusive litigation in another state for providing legally protected reproductive and gender-affirming care services to sue in Massachusetts court to obtain a judgment, including actual damages, expenses, costs, and reasonable attorney’s fees.

The governor would be prevented under the legislation from extraditing someone to another state to face charges for an abortion, gender-dysphoria treatment, or another protected service, except when required by federal law or unless the acts forming the basis of the investigation would also constitute an offense if occurring entirely in Massachusetts. Law-enforcement agencies in Massachusetts would also be prohibited from assisting any investigation by federal authorities, another state, or private citizens related to legally protected reproductive and gender-affirming healthcare provided in the Commonwealth.

Courts would similarly be barred from ordering anyone in Massachusetts to testify or produce documents for lawsuits involving those practices, and judges could not issue any summons in a case concerning those healthcare services unless the offense in question would also violate Massachusetts law.

An amendment was adopted during debate requiring public higher-education institutions to work with the Department of Public Health (DPH) to create a medication-abortion readiness plan which must provide medication abortion at a health center on campus or provide a referral to a nearby healthcare facility offering abortion care. It also creates a trust fund for public higher-education institutions to support the implementation of their medication-abortion readiness plans.

“The Senate has taken important steps to confront the threats posed reproductive and gender-affirming healthcare in our state posed by new, draconian laws being passed across the nation,” said state Sen. Michael Rodrigues, chair of the Senate Committee on Ways and Means. “Though these changes are unprecedented, we in Massachusetts are continuing to demonstrate that we are prepared to defend the rights of all of our residents.”

In response to stories about women not receiving access to abortion care in Massachusetts currently allowed under the existing state law, an amendment was adopted to clarify the circumstances that treating physicians must consider when determining whether to provide later-in-pregnancy abortion care. The amendment requires such determinations to be made by the treating physician and patient. To ensure hospitals are complying with the law, the amendment also requires healthcare facilities providing these services to file their procedures and processes for providing services consistent with the law with DPH.

Additional amendments would identify areas of the state with limited abortion access to increase care to those areas and allow pharmacists to prescribe and dispense hormonal contraceptive patches and self-administered oral hormonal contraceptives. The bill implements a statewide standing order to ensure that emergency contraception can be dispensed at any pharmacy in the Commonwealth.

In addition, the legislation requires the Group Insurance Commission and commercial health-insurance carriers to cover abortions and abortion-related care and ensure Massachusetts patients are not charged a cost-sharing amount, such as deductibles, co-payments, or similar charges, for such coverage. It also requires MassHealth to cover abortion and abortion-related care and ensures enrollees are not charged a cost-sharing amount for prenatal care, childbirth, postpartum care, abortion, or abortion-related care.

The bill also allows individuals engaged in the provision, facilitation, or promotion of reproductive and gender-affirming healthcare to enroll in the Secretary of the Commonwealth’s Address Confidentiality Program. This action will increase the safety of those who may face threats or violence outside of the workplace in their personal lives or at their residences.

With a version of a bill expanding protections for reproductive and gender-affirming care having passed both branches of the Legislature, a conference committee will be appointed to resolve differences between the bill’s two versions.

“I was proud to vote yes on comprehensive legislation to strengthen reproductive and gender-affirming protections in Massachusetts,” state Sen. Jo Comerford said. “Safe, legal, and affordable reproductive and gender-affirming healthcare are public-health necessities. I’m grateful to Senate President Spilka, Senator Cindy Friedman, and Senate colleagues for leading a robust response to the national assault on reproductive and trans rights, and I look forward to beginning work on the Senate Reproductive Health Working Group with a strong focus on equity.”

Manufacturing

Making Change

 

The manufacturing tech industry is building back fast, undeterred by significant labor and supply-chain challenges. To maintain this momentum, manufacturers should navigate elevated risks while advancing sustainability priorities. That’s the takeaway, at any rate, from a recent Deloitte report exploring five manufacturing industry trends that can help organizations turn risks into advantages and capture growth.

It’s unusual to see positive economic indicators paired with historic labor and supply-chain challenges. But this is the trajectory for the U.S. manufacturing industry in 2022 emerging from the pandemic. The recovery gained momentum in 2021 on the heels of vaccine rollout and rising demand. As industrial production and capacity utilization surpassed pre-pandemic levels this year, strong increases in new orders for all major subsectors signal growth continuing in 2022.

However, optimism around revenue growth is held in check by caution from ongoing risks. Workforce shortages and supply-chain instability are reducing operational efficiency and margins. Business agility can be critical for organizations seeking to operate through the turbulence from an unusually quick economic rebound — and to compete in the next growth period. As leaders look not only to defend against disruption but strengthen their offense, our 2022 manufacturing-industry outlook examines five important trends to consider for manufacturing playbooks in the year ahead.

 

1. Preparing for the future of work could be critical to resolving current talent scarcity. Record numbers of unfilled jobs are likely to limit higher productivity and growth in 2022, and last year we estimated a shortfall of 2.1 million skilled jobs by 2030. To attract and retain talent, manufacturers should pair strategies such as reskilling with a recasting of their employment brand.

Shrinking the industry’s public perception gap by making manufacturing jobs a more desirable entry point could be critical to meeting hiring needs in 2022. Engagement with a wider talent ecosystem of partners to reach diverse, skilled talent pools can help offset the recent wave of retirements and voluntary exits.

Manufacturing executives may also need to balance goals for retention, culture, and innovation. As flexible work is taking root in offices, manufacturers should explore ways to add flexibility across their organizations in order to attract and retain workers. Organizations that can manage through workforce shortages and a rapid pace of change today can come out ahead.

 

2. Manufacturers are remaking supply chains for advantage beyond the next disruption. Supply-chain challenges are acute and still unfolding. There’s no mistaking that manufacturers face near-continuous disruptions globally that add costs and test abilities to adapt. Purchasing manager reports continue to reveal systemwide complications from high demand, rising costs of raw materials and freight, and slow deliveries in the U.S.

Transportation challenges are likely to continue in 2022 as well, including driver shortages in trucking and congestion at U.S. container ports. As demand outpaces supply, higher costs are more likely to be passed on to customers.

Root causes for extended U.S. supply-chain instability may include overreliance on low inventories, rationalization of suppliers, and hollowing out of domestic capability. Supply-chain strategies in 2022 are expected to be multi-pronged. Digital supply networks and data analytics can be powerful enablers for more flexible, multi-tiered responses to disruptions.

 

3. Acceleration in digital technology adoption could bring operational efficiencies to scale. Manufacturers looking to capture growth and protect long-term profitability should embrace digital capabilities from corporate functions to the factory floor. Smart factories, including greenfield and brownfield investments for many manufacturers, are viewed as one of the keys to driving competitiveness.

More organizations are making progress and seeing results from more connected, reliable, efficient, and predictive processes at the plant. Emerging and evolving use cases can continue to scale up from isolated in-house technology projects to full production lines or factories, given the right mix of vision and execution.

U.S. manufacturers have room to run with advanced manufacturing compared to many competitors globally. Advanced global ‘lighthouse’ factories showcase the art of the possible in bringing smart manufacturing to scale. Investment in robots, cobots, and artificial intelligence can continue to transform operations. Foundational technologies such as cloud computing enable computational power, visibility, scale, and speed. Industrial 5G deployment may also expand in 2022 along with advances in technology and use cases.

 

4. Rising cybersecurity threats are leading the industry to new levels of preparedness. High-profile cyberattacks across industries and governments in the past year have elevated cybersecurity as a risk-management essential for most executives and boards. Surging threats during the pandemic added to business risk for manufacturers in the crosshairs for ransomware.

An expanding attack surface from the connection of operational technology (OT), information technology (IT), and external networks requires more controls. Legacy systems and technology weren’t purpose-fit for today’s sophisticated network challenges. Now, remote-work vulnerabilities leave manufacturers even more susceptible to breaches.

Manufacturers should look not only at their cyberdefenses, but also at the resiliency of their business in the event of a cyberattack. Cybercriminals can cause harm beyond intellectual-property theft and financial losses, using malware that now ties in AI and cryptocurrencies. They can also shut down operations and disrupt entire supplier networks, compromising safety as well as productivity. A patchwork of regulations for different industries could be consolidated under the current administration’s ‘whole-of-nation’ approach to protect critical infrastructure. The potential for additional oversight is likely to prompt more industrials to rethink preparedness for crisis response.

 

5. Manufacturers are likely to bring more resources and rigor to advancing sustainability. The fast rise of environmental, social, and governance (ESG) factors is redefining and elevating sustainability in manufacturing as never before. Cost of capital can be tied to ratings on ESG, making it a priority for organizational financial health and competitiveness. Expectations for reporting on diversity, equity, and inclusion metrics in manufacturing will likely continue to rise. Board diversity, while progressing slowly, is also showing some momentum. To attract talent and appeal to workforce expectations, most manufacturers are making ESG efforts more visible.

Depending on a manufacturer’s end markets, environmental accountability is increasingly a focus. To develop and deliver against net-zero or carbon-neutral goals, more organizations are dedicating or redesigning sustainability roles and initiatives and quantifying efforts and results around energy consumption. And the fast-evolving ESG landscape may require close monitoring in 2022 for manufacturers.

Many organizations are complying voluntarily within a complex network of reporting regulations, ratings, and disclosure frameworks. But regulators globally are also moving toward requiring disclosure for more non-financial metrics. Proactive approaches may help manufacturers stay ahead of the change and create competitive advantage.

Daily News

AMHERST — UMass Amherst has signed a series of memoranda of agreement with the Kyiv School of Economics (KSE) to assist students and scholars affected by Russia’s war with Ukraine.

UMass Amherst’s new multi-level partnership with KSE will establish several modalities for Ukrainian students and scholars to be part of the UMass academic community. An academic exchange program for students will enable undergraduate and graduate students from Ukraine to study at UMass for a semester or academic year with nearly all costs waived.

In conjunction with the academic exchange program for students, a non-resident, virtual Scholar in Residence program will be created for scholars affiliated with KSE. Selected Ukrainian scholars will collaborate with centers, departments, and faculty at UMass Amherst on relevant research topics virtually and will receive a stipend through the KSE Foundation.

The agreements were finalized between March and July 2022 by KSE President Tymofiy Mylovanov and Rector Tymofii Brik and John McCarthy, now emeritus provost and senior vice chancellor for Academic Affairs for UMass Amherst.

Anna Nagurney, professor and the Eugene M. Isenberg Chair in Integrative Studies in the Isenberg School of Management at UMass Amherst, played a central role in driving these collaborative efforts. As a longstanding member of the International Academic Board at KSE, and now also co-chair of the board of directors at KSE, Nagurney was instrumental in nurturing the relationship between the two institutions. Most recently, Nagurney has been a leading expert in providing insights on Russia’s ongoing war with Ukraine.

Nagurney is thrilled about the opportunity for Ukrainian scholars to continue their research during this challenging time and hopes that this program will provide them with additional moral and professional support. “We expect good interaction with research centers, institutes, and departments,” she said. “I foresee fantastic research outcomes coming out of this program.”

These agreements resulted from UMass Amherst faculty’s call for more support for Ukrainian scholars and students. In a letter addressed to Chancellor Kumble Subbaswamy and McCarthy on March 29, a group of UMass faculty, led by members of the Russian, Eurasian, and Polish Studies program, provided a detailed list of requests for action and urged senior leadership to act in support of students and scholars displaced by Russia’s invasion of Ukraine.

Founded in 1996 by the Economics Education and Research Consortium and the Eurasia Foundation as a master’s program in economics, KSE is now a leading world academic institution. It currently offers degrees in programs such as economics, business analytics, mathematical economics, and public policy.

The UMass Amherst International Programs Office will be spearheading and overseeing these program initiatives through its units of Education Abroad and International Student and Scholar.

“It has been absolutely inspiring to work with our Ukrainian colleagues who are committed to maintaining the continuity of the academic experience in the face of terrible odds. As both Tymofiy Mylvanov and Tymofii Brik have shared in public fora, a strong, independent academic sector is crucial to Ukraine’s political and intellectual survival,” said Kalpen Trivedi, UMass Amherst’s vice provost for Global Affairs and director of the International Programs Office.

Senior administrative leaders at UMass Amherst are fully supportive of these programs to aid Ukrainian scholars and students. Nagurney is especially appreciative of the joint efforts by the administration, faculty, and senior staff leaders in ensuring that UMass offers many means of support for students and scholars. “What [KSE] have been doing in wartime has been absolutely awe-inspiring — still hosting top speakers virtually and even in person,” she said.

McCarthy added that “I enthusiastically support these efforts to assist our Ukrainian colleagues and their students in continuing their research, study, and teaching despite the war in their country.”

Daily News

FLORENCE — Florence Bank hired Kyle Toelken to serve as assistant vice president and branch manager of the Belchertown branch.

Toelken was hired in May and has 12 years of banking experience. Committed to community involvement, he has volunteered with Junior Achievement of Western Massachusetts, helping present lesson plans to school-aged children. He holds a bachelor’s degree in business management from Franklin Pierce University.

“I am very excited to join Florence Bank and the Belchertown branch team,” Toelken said. “I look forward to working with the community and ensuring customers have a great experience.”

President Kevin Day added that “we are excited to welcome Kyle to the Florence Bank team. He has a great deal of experience, and we are pleased that he will be helping to lead our Belchertown branch.”

Daily News

SPRINGFIELD — Peter Pan Bus Lines’ Peter and Melissa Picknelly announced that their son, Peter Picknelly IV, has been promoted to director of Safety & Security.

While in high school and college, Peter IV has worked in both Operations and Customer Service. He recently graduated magna cum laude from Western New England University with a degree in business management. He joins his sister, Lauryn Picknelly-DuBois, who was recently named controller for Peter Pan Bus Lines.

Daily News

HOLYOKE — Students enrolled full-time in chemistry, biology, engineering, mathematics, physics, or other STEM fields at Holyoke Community College (HCC) have until Monday, Aug. 1 to apply for a National Science Foundation scholarship of up to $10,000 per year.

Through HCC, the National Science Foundation Scholarship offers, on average, $6,500 per year to qualified full-time students and prorated amounts for part-time students. New and current HCC students are encouraged to apply.

Students chosen for the NSF scholarship become members of HCC’s STEM Scholars 2.0 Program, also known as SCoRE (STEM Cohorts for Research & Engagement).

STEM Scholars are expected to maintain enrollment in a STEM program, be in good academic standing, complete an associate degree at HCC, and/or transfer to an accredited STEM degree program at a four-year institution. The scholarships are renewable every year students continue to meet the eligibility criteria.

Beside the financial awards, STEM Scholars become part of a learning community that fosters a sense of belonging and academic success, and includes mentoring, research, and honors experiences; community service; and internships. The application and eligibility guidelines can be viewed at hcc.edu/stem-scholarship.

STEM disciplines include biological sciences, physical sciences, math, computer and information services, geosciences, and engineering.