Manufacturing activity in New York posted a big rebound in January after plunging the month before.

The Federal Reserve Bank of New York reported Jan. 15 that its Empire State Manufacturing Survey general business-conditions index climbed 11 points to 10. 

That’s a big bounce back from December when the index had tumbled 14 points to its first negative reading in nearly two years.

The January report found 33 percent of New York manufacturing respondents felt that conditions had improved, while 23 percent reported that conditions had worsened. The survey also showed “modest” growth in new orders and shipments, according to the New York Fed.

The new-orders index rose six points to 6.1, and the shipments index rose seven points to 9.6.

The unfilled-orders index moved up after a sharp decline in December, but remained negative at -8.4. 

The delivery-time index was -5.3, pointing to shorter delivery times, and the inventories index was -7.4, suggesting a decline in inventory levels.

Labor-market indicators were mixed. 

The index for number of employees climbed five points to 13.7 in January, suggesting that employment levels “continued to increase.” 

The average-workweek index, however, remained below zero and, at -8.4, pointed to a decline in hours worked for a fourth consecutive month.

The prices-paid index was little changed at 12.6; for a fourth straight month, it showed a modest increase in input prices. 

The prices-received index rose for a second month, a sign that selling prices were “increasing at a faster pace.” 

Indexes assessing the six-month outlook conveyed “considerable optimism” about future business activity. 

The index for future general-business conditions rose nine points to 48.4, with nearly 60 percent of respondents expecting conditions to improve. 

The future new orders and shipments indexes both advanced to levels just above 40.

The index for expected number of employees rose 11 points to 31.6, “its highest level in nearly three years,” indicating that respondents anticipate a “significant” expansion in employment in the months ahead.

The capital-expenditures index was “little changed” at 14.7, while the technology-spending index fell five points to 12.6.

The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.        

Planning is a challenge. More than once, clients have told me that the last time they asked their managers to update the strategic plan, the response sounded something like “… So by the time we finish the plan we will have already implemented all of its strategies,” or, “We did a plan a few years ago but haven’t really done anything with it.”

In fairness, developing a true strategic plan is no simple task. Too often, the strategic plan gets derailed because it evolves into a wish list or a retrospective evaluation. While there will certainly be consideration of both during the development stages, the strategic plan should ultimately identify (unique) strengths and (relevant) weaknesses that can provide insight about new opportunities or identify the causes of current problems.

Sounds fairly straightforward, and in a way it is. The tricky part is understanding that a plan takes time and focused energy to develop. And, a successful plan requires a commitment to implementation.

Perhaps the most important consideration is communication. Without effective and candid communication, it’s difficult to understand not only where you are, but also how to set clear and realistic goals to get you to your objective. Communication does not ensure success, but lack of effective communication almost guarantees failure.

Is strategic planning worthwhile? Most successful business leaders and organizations would respond with a resounding, “Yes!”

A typical source of confusion about strategic planning comes from lack of understanding. For a bit of a primer, consider the following:

– A business plan focuses on actions necessary to generate revenue and includes information about products, services, and the competitive environment.

– An operating plan is a directive that includes tasks and action steps to accomplish the goals of the strategic plan, generally identifying specific roles and timelines.

– The strategic plan is the tool that offers guidance in fulfilling the mission, which likely is profitably providing goods or services with which you are knowledgeable. (It’s OK to not be all things to all people.) Clearly articulated goals and action steps are important aspects.

– An implementation plan is akin to a user’s guide for the strategic plan.

The first step in developing a strategic plan is to have a clear view of external challenges and opportunities. Sometimes, as can be easily seen with technology, for example, one specific reality can provide both opportunity and challenge. As important as the external understanding is the internal insight. What are your limitations? Your strengths? Are you able to be objective and do some soul searching? A clear assessment provides the stepping-off point for determining the actual plan.

Again, communication is critical for gathering input from all stakeholder groups. Multiple owners, employees, service providers, and customers provide valuable insight. You need to hear from all groups that will be part of the plan’s implementation or subject to its effects. Another delicate point of navigation is that keeping the workgroup from becoming too large and bogged down, yet ensuring input from, and communication with, stakeholders. To accomplish this, it’s important to have a strong planning committee.

The planning group should include owners and senior company leaders, but beware. It is not healthy for these individuals to micromanage or become heavy-handed. Sharing responsibility is not only reasonable and more likely to engage others, but it also helps keep the project from getting bogged down. With so many aspects to consider, a team approach makes perfect sense, and we all know that good teams have leaders, not dictators.

Many times, a consultant is engaged not to delegate the project, but to provide experienced insight, help keep things on course, and maintain momentum. While outside assistance can be invaluable, it is up to the organization’s leadership to identify mission, vision, and values statements. Who else but leadership can 

answer the fundamental questions, “What do we do?” “Where do we want to be?” and “What do we believe in?”

A plan on the closet shelf is not effective, so take some time to consider these questions and whether you are ready to get serious about strategy.        

Gail Kinsella is a partner in the Syracuse office of The Bonadio Group accounting firm. Contact Kinsella at gkinsella@bonadio.com

If you seem to be spending too much time lately wondering where your regular customers are, try turning the tables. Don’t wait for them to come to you; reach out to them — inquire about their situations and what you may be able to do to help. This is a great opportunity to practice the “one hand washes the other” adage.

I received a call recently from a relatively new small-business owner saying she thought all of her customers had gone elsewhere. Her business was slowing down, even though she knew her services were still in demand. I encouraged her to step into the proverbial shoes of her customers.

Loyal customers don’t want to let you down, either. They may be staying away because they are embarrassed to let you know just how much they are feeling the crunch, too. Avoidance may offer the safest solution for now. You should take the initiative and visit them.

Let your customers (and potential customers) know you understand their position only too well. Invite them to come to discuss what you might be able to do together to strengthen each other’s position for the short term You may find there are many small businesses feeling isolated because they are in uncertain and downright “scary” times. Pulling together tends to bring out the best in all of us. Elicit, build on, and support the suggestions each of you brings to the table. Just imagine the benefits to be reaped when the slump is over.

Each of you knows your external customer chain: those people on whom you rely for your materials or supplies, and those who rely on you directly for your products or services. If you’re hurting, they’re hurting. Get them involved in the process of staying the course. Share the big picture and determine where each entity can contribute, as well as what they can contribute. Establish a time line and map out the problems you have identified and start talking about solutions. Assign tasks according to everyone’s strengths or primary area of interest. If you are all focused on the win-win for the greater good, who knows, you might even enjoy it. The ultimate rewards will be reaped in the form of businesses saved and relationships strengthened.         

Nancy Ansteth is a New York state-certified business advisor with the Small Business Development Center at Onondaga Community College. Contact her at anstethn@sunyocc.edu or (315) 498-6072.

ITHACA, N.Y. — The Groundswell Center for Local Food & Farming, an Ithaca–based nonprofit initiative, has been awarded a three-year grant of more than $700,000 to support training and business-incubation programs for beginning farmers in Central New York. 

The grant from the U.S. Department of Agriculture (USDA) will be used to further expand the Groundswell Center’s technical and business-training offerings, according to a news release, and to secure a second, larger plot of land.

“This is great news for beginning farmers and for our regional economy,” Joanna Green, director of the Groundswell Center, said in the release. “Growing new farmers is essential to growing our world-class regional cuisine, and expanding agriculinary tourism. Agriculture is the perfect clean and green economic engine for our region.”

The National Institute of Food and Agriculture, an agency of the USDA, awarded the grant as part of a larger effort to provide financial assistance to new farmers and ranchers across the country through its Beginning Farmer and Rancher Development Program (BFRDP).

In all, more than $18 million in grant money was awarded nationally through the BFRDP, according to a separate news release from the USDA.

The Groundswell Center is a project financed under the Center for Transformative Action (CTA), an Ithaca nonprofit that says it provides fiscal sponsorship to social programs and entrepreneurs in the state. The CTA offices are located on the campus of Cornell University, with which the nonprofit is affiliated.

Groundswell’s educational programs are provided at several area farms, or “mentor farms,” such as Kingbird Farm in Berkshire, Northland Sheep Dairy in Marathon, and Main Street Farms, LLC, in Homer, to name a few.

The 10-acre plot of land at West Haven Farm, in the town of Ithaca, currently used by the Groundswell Center for its Farm Business Incubator Program — which provides affordable land and other resources — is only suitable for “very small” start-up farmers, Green says in an interview. With the grant money, the nonprofit will begin looking for a second plot of land that is 100 acres or larger, which would be for farmers who are more advanced and in need of more growing space, she says.

The new plot of land would be attained either through a partnership with another group, or with a lease, says Green. The nonprofit would not purchase land outright. She says it has yet to begin the search process formally.

Farming business course

According to its website, the Groundswell Center’s educational offerings include a 10-session farm-business planning course. It started Jan. 15 and meets every Thursday evening, from 6-9 p.m., through March 19. 

The center offers the course in collaboration with Cornell Cooperative Extension of Tompkins County and Alternatives Federal Credit Union’s Business CENTS Program.

The “intensive” course is for the “serious beginning farmer” who needs a plan, the site says. Established farmers who want to improve their business planning and management skills can also participate. The 10 weekly sessions cover legal and regulatory issues; production planning; marketing; financial feasibility, budgets and record keeping; and other topics. 

CANTON — St. Lawrence University’s economic impact on the North Country increased by nearly $15 million during the years 2012 and 2013 to $276 million, compared to the prior two-year period.

That’s according to a study that the Rochester–based Center of Governmental Research (CGR) conducted on behalf of the New York’s Commission on Independent Colleges and Universities (or CICU).

Growth at St. Lawrence University is driving the increase in the school’s economic impact, says Ben Dixon, coordinator of regional development at the university.

“We’re serving more students, we’re expanding our program, our physical plant has grown accordingly, and all of that means more impact to the local economy,” says Dixon.

He spoke with CNYBJ on Jan. 29.

The CGR report indicated that St. Lawrence University’s spending in the region totaled $115.5 million in 2013, while construction spending contributed another $8.75 million, according to a news release that St. Lawrence University issued in mid-January about the study’s findings.

“We now have open on campus a new residence hall, Kirk Douglas Hall, [which] is … home to over 150 students,” says Dixon.

The construction on the $14 million project continued into the winter of 2014, the school said in the news release.

At the same time, St. Lawrence directly employed 880 people, and it helped create or support an additional 1,000 jobs in the region.

Dixon also estimates labor compensation, including salaries and wages and annual construction-labor costs, contributes another $105 million.

“And then there’s another $22 million that is from student and visitor impact,” he adds.

The three private colleges of the North Country — Clarkson University, Paul Smith’s College, and St. Lawrence University — contributed $680 million to the region, which included more than $69 million in student and visitor spending. The three institutions directly employed nearly 2,000 people and helped create another 210 construction jobs.

“Higher education is a proven and powerful economic catalyst, bringing benefits to host communities,” William Fox, president of St. Lawrence University, contended in the news release. “Through creating and maintaining jobs, purchasing of goods and services, spending by students, families and alumni visitors, and other financial contributions, colleges help propel economic development, a mission we take very seriously.”

The study indicated that New York’s independent colleges and universities contributed $74.3 billion to the state’s economy in 2013, up by $11.1 billion, or 17.6 percent, since 2011. In addition, New York’s independent-college sector directly employs 190,500 people, an increase of nearly 10,000 jobs, or 5 percent, since 2011.