December 2014 Issue - Nevada Business Connections

December 2014
NBC Advisory Board
Emily Andrews
Utility Telephone
Georgia Baker
Heritage Bank of Nevada
Kelly Bullis
Bullis & Co, CPAs
Paul Enos
Nevada Trucking
Association
Lori Haney
City National Bank
Volume 7, Number 121
Welcome to NBC PROGRESS, the monthly
e-newsletter of Nevada Business Connections
(Nevada’s Only Private Economic Development Authority)
December Meeting Information
Please join us for our next monthly NEVADA BUSINESS CONNECTIONS meeting on
th
Wednesday, Decembr 19 at 8 am. Doors will open at 7:30 am at the Gold Dust West
Casino, 2171 Highway 50 East, Carson City. Employee/Employer issues have become
the number one topic in northern Nevada. NBC has a panel of Employee/Employer agencies
who plan to discuss their resources, how they can help and how they do it! Don’t miss this
one...
Workforce Experts Power Panel
Moderators:
Roger Kadz
Nevada State
Development Corp.


Collie Hutter – President and CEO, Click-Bond
Dr. Carol Lucey – former President, WNC
Panelists:
Dan Kahl
Kahl Commercial Interiors,
Inc.
Pat Langhoff
Langhoff Consulting
Services
Angela LoGiurato
Country Financial
Jeffrey Lowden
Sky West
Tom Metcalf
Metcalf Builders
James Neil
US Bank
Carol Nicholson
Atlantis Casino Resort
Maxine Nietz
Capital City Computing
Greg Nixon
First Independent Bank






Ann Silver – Executive Director, JOIN
Sandra Haslem – Director, NVIE
David Steiger (with guest, Emily Howarth) – Director of Economic Dev., WNC
Nevada DETR
JobConnect
TMCC
The meeting is scheduled for exactly one hour. Cost is $25 for members and $35 for guests
and $25 for students with valid NHSE ID. Purchase a table for eight for your company and
guests for $200 (your company name will be posted at the table.) We take cash, check or
credit card MasterCard, VISA, Discover, and American Express.
Future Meeting Information
Third Wednesday of the Month. Doors will open at 7:30 am. Meetings are exactly one
hour, 8 am to 9 am. Cost is $25 for members and $35 for future members. We take cash,
check or credit card – MasterCard, VISA, Discover, and American Express. Please RSVP to
NBC at 775.771.5747 or [email protected]. Alternately, RSVP to Maxine at
775.887.1294 or [email protected]. See you there!
Date
th
December 17
2014 NBC Breakfast Meeting Schedule
Location
Speakers
Workforce Experts Power Panel
Gold Dust West
We are not the experts… But we know who they are.
Page 1 of 13
NBC Advisory Board
(contd)
Dick Silvera
Silvera Commercial
Real
Estate Services
David Steiger
Western Nevada
College
Dr. Fred Steinmann
UNR/College of Bus.
Admin.
David Toll (Emeritus)
Gold Hill Publishing/
Nevada Web
John Uhart
Uhart Commercial
Real
Estate Services
Brian Wallace
Wells Fargo Bank
Kris Holt
Executive Director
Nevada Business
Connections
NBC Members
Corporate
Sponsors
Access to Healthcare
Network
Adele’s Restaurant
& Lounge
Advanced Machining
Techniques
Aervoe Industries,
Inc.
AFLAC
Alliance Business
Appraisals
Allison-MacKenzie
Law Firm
Aloha Medicinals
Alpine Insurance
Applied Business
Solutions
ARMAC Construction
Assoc. Builders &
Contractors (ABC)
Atlantis Casino
Resort Spa
Welcome New & Renewing Members
Welcome New Members


Custom Stamping, Gus Gustafson
GHX, Inc., Paul Breen
Thank You Renewing Members



Atlantis Casino Resort Spa, Carol Nicholson
Nevada State Development Corporation , Roger Kadz
Western Nevada College, David Steiger
November Meeting Notes
Nevada Business and Industry chief:
Office bonds with state’s small business
published by the Nevada Appeal, November 20, 2014. Author: John Barrette
Nevada’s Department of Business and Industry wears multiple hats but now often dons the one
that aids small companies, the top official there said Wednesday.
Bruce Breslow, department director for two years, said Business and
Industry historically served as babysitter for various divisions,
agencies, boards and authorities, which it still does to provide ongoing
oversight. But he emphasized financial and regulatory help for small
businesses while making a Carson City talk at a Nevada Business
Connections breakfast meeting in the Gold Dust West Resort.
“If you need help with bonding, give me a call,” said the former mayor
of Sparks, a longtime sportscaster, businessman and government
official.
Bruce Breslow
Breslow directed that remark on bonds to manufacturers in the audience at the business and
development networking organization session. He predicated his remarks on the need for
financing to build a factory, as one example, and stressed he meant they should give him a direct
call. He later said as repeated complaint his office gets is about responsiveness, or lack of it, in
government.
In that, he was answering an audience question about the biggest problem he encounters and
said his office has made contact with others in government, provides connections and follows
through to make certain action is taken.
Breslow said when Gov. Brian Sandoval appointed him to his current post in November 2012, he
found an under-used provision charged his department with helping small business firms. He
said economic development brings new firms to Nevada, while his department helps small
existing Silver State companies.
He has put out a 61-page document on various means of finding and obtaining bonds, loans or
triggering other financial underpinning, he said, which was part of a need to “think outside the
box” due to tight state revenues.
Cont’d on next page
Page 2 of 13
NBC Members
(contd)
Bayliss & Associates
Betra Manufacturing
Bradley Preston
Graphic Designer
Brian Gifford &
Assocs
Bristlecone Family
Resources
Builders Assn. of
Northern Nevada
(BANN)Builders
Assn. of
Western Nevada
(BAWN)
Bullis and Co CPAs
Capital City
Computing
Carson City Chamber
of Commerce
Carson City Library
Carson Nugget
Casino
Carson Properties
Carson Valley
Chamber
of Commerce
CarsonNow.com
Churchill County
Economic
Development
City of Carson City
City of Fallon
City of Fernley
City of Lovelock
City of Reno
City of Sparks
City National Bank
Clancy Machine Tool,
Inc.
Coldwell Banker
Select RE
Columbia River Econ
Dev Council
(CREDC)
Comnet Mktg Group
ComputerCorps
Concept Automation
Systems
Connect2it
Country Financial
Cubix
Custom Stamping
CVirtual
Dayton Area
Chamber of
Commerce
Delta Saloon
Dept of
Employment,
Training & Rehab.
(DETR)
The revenues have been mostly down or flat in and after the recession, he indicated, with
education and mental health taking up much of the state’s budget. So finding different ways to
offer business help, he said, is important.
“My office is here to help business thrive and grow,” Breslow said. “We have a giant staff of four.”
It oversees such things as not only the small business initiatives, but real estate, financial
institutions, housing, manufactured housing, transportation, insurance, labor and wage matters,
consumer protection and workplace safety. But Breslow stuck to his dominant theme Wednesday
about helping small firms find finance or easing other burdens on them.
Aspects he stressed include a new markets tax credit program and one for industrial revenue
bonds, as well as a small business round table and ways to ease regulatory burdens. He said the
Sandoval administration has eliminated 1,000 regulations that stifled business.
Breslow’s background includes sportscasting for Reno television channels, a career he keeps
alive doing summer Olympics coverage, serving as Sparks’ 22nd mayor during the 1990s,
commercial real estate work, and roles in the administrations of the late Gov. Kenny Guinn and
former Gov. Jim Gibbons before joining Sandoval’s administrators.
Work for this administration included heading the Department of Motor Vehicles before taking
over at Business and Industry.
Networking at the breakfast
Lori Haney (Citi Natl Bank), Roger Kadz
(nsdc), Kelly Bullis (Bullis & Co CPAs)
Craig Mullet (CM Ents) and John Childress
(WNC)
Bruce Breslow (B&I), John Uhart (Jhn
Uhart Cmcl RE), and Staci Nauman
(KNPB)
Guest speaker Bruce Breslow (Dir of NV
B&I Dept) addresses NBC
Ray Bacon (NMA) makes a point
Joe Dutra (Kimmie Candy) talks about his
family-run business
California
All hands on deck to make CA the capitol of manufacturing growth
published on-line by California Manufacturers & Technology Association, November 13, 2014.
Author: Dorothy Rothrock
No matter where you are located, you’ve got to have good ideas and work hard to succeed as a
manufacturer. That is doubly true if you’re in California. Only the most efficient, innovative and
productive manufacturers in the world can meet the regulatory and cost challenges here and stay
Cont’d on next page
Page 3 of 13
NBC Members
(contd)
DGD Development
DigiPrint
Corporation
Digital Delirium
Douglas County
Douglas Co Building
Industry Assoc
Douglas Gorgen
Duro
Manufacturing
Downtown Imp
Assoc (Reno)
Econ Dev Auth of W.
Nev (EDAWN)
Fernley Chamber of
Commerce
First American Title
Company
First Independent
Bank
Furniture Dept.,
The
GDA Degree Inc.
GHX, Inc.
Gold Dust West
Casino
Gold Hill Publishing
Granite
Construction
Great Basin
Brewing Co.
Green Business
Chamber of
Commerce
Green Enterprises
Hammer Head
Construction
Hampton Inn
Henkes Welsh
Insurance Svcs
Heritage Bank of NV
Hire Dynamics
Holiday Inn Express
& Suites
Hone Company
HubZone Mfg, Inc.
ID Corporation
Industrial Logistics
Services
JLM Industrial
Supply
JT Basque Bar &
Dining Room
J.P. Copoulos
Architect
J.W. McClenahan
Co.
Job Opportunities
In Nevada (JOIN)
Kahl Commercial
Interiors
competitive in world markets. California is lucky to have such a fantastic group of companies
creating wealth, paying taxes and putting people to work in this state!
That’s why I am so excited to be the new President of the California Manufacturers & Technology
Association. The CMTA team of lobbyists urges legislators and regulators to improve the
business climate so these great manufacturers will stay in California, make new investments and
hire more workers.
It’s an honor and privilege to represent California manufacturers. They have been the engine of
the California economy since before CMTA formed in 1918. Over the years oil and gas
development, aerospace, automobile, food processing and technology companies spawned a
local supply-chain of smaller manufacturers and service companies to create the most dynamic
and diverse economy in the country.
But lately we’ve seen a steady decline in manufacturing jobs and investments. Some believe that
California can’t be a manufacturing powerhouse into the future, and we must move toward a new
economy made up of high-end “knowledge” jobs, green jobs, and lower wage service jobs.
I couldn’t disagree more! California is the innovation capital of the world in nearly every sector of
the economy. Our ports, transportation system, natural resources and skilled workforce are
second to none. What does it say about us if our laws and regulations make it impossible to
manufacture a fair share of the products our citizens buy?
The decline of manufacturing investments in California makes us weaker and will lead to further
job losses. This tells the world that California has failed to protect manufacturing while pursuing
bold policies to improve the environment. This matters because no other state will follow our lead
if it means out-sourcing manufacturing to other states and countries.
That's why we need to take action to turn California manufacturing job losses into job gains. The
CMTA team knows what needs to be done, and I can’t wait to greet newly-elected legislators
with a positive message about the future of California manufacturing. Encouraging all
manufacturers join CMTA is also important - We need all-hands-on-deck to force the changes
necessary to revitalize manufacturing and show the rest of the world that our policies can provide
both a clean environment and millions of middle-class jobs.
That will be true leadership worth following.
Employment
Tech-job wave is building in Nevada, but workforce lacks skills, report
finds
published on-line by VegasInc.com, November 12, 2014. Author: Brian Sodoma
Nevada has the STEM jobs, but many Nevadans don’t have the skill or education to land them.
That’s the conclusion of a Metropolitan Policy Program and Brookings Mountain West study,
being released today, titled “Cracking the Code on STEM: A People Strategy for Nevada’s
Economy.”
“It’s a serious problem that could be constricting economic
growth,” said Mark Muro, one of the report’s authors.
Jobs in STEM (science, technology, engineering and
mathematics) are poised for growth in three main Nevada
business sectors, according to the report: health and medical
Cont’d on next page
Page 4 of 13
NBC Members
(contd)
KNPB Public
Broadcasting
LaMonica Properties
Langhoff
Consulting
Lumos & Associates
Lyon County
Mallard Investment
Management
Marriott Residence
Inn
MC-21
McClain’s Mobile
Music & DJ Svc
Metcalf Builders
Moment Skis
Mustang
Manufacturing
Moment Skis
Mustang
Manufacturing
Nevada Assoc of
Counties
Natl Assoc of
Industrial
& Office
Professionals
(NAIOP)
Nevada Business
Journal Magazine
Nevada Center for
Entrepreneurship
and Technology
Nevada
Development
Authority
Nevada Governor
Nevada Industry
Excellence
Nevada
Manufacturers
Association
Nevada Trucking
Association
Nevada Premier
Properties
Nevada Secretary
of State
Nevada Small
Business
Development
Center
Nevada State Bank
Nevada State
Development Corp.
Nevada Taxpayers
Assn.
NevadaWeb
NEVCAL Trucking
services, business and IT ecosystems and high-tech manufacturing. But training programs at
colleges and other institutions need to be brought more in line with industry needs.
Defining STEM
Those with STEM jobs aren’t limited to engineers or graduate degree holders, which is a
common misunderstanding, Muro said. Doctors and nurses, for example, are STEM workers, but
so are mechanics, lab technicians and others who attain community college certificates or
associate’s degrees.
The report noted that more than 60 percent of Nevada’s STEM job openings in business and IT
ecosystems and health and medical services do not require four-year degrees.
“That’s a big take-away here. Suddenly these jobs are a lot more meaningful and accessible with
the right kind of community college or other training,” Muro added.
Adam Kramer, vice president of government affairs for the Las Vegas data network center
Switch, said the company hired about 100 people in the past year. A good portion of those
positions required network management, or Cisco certifications or experience, not four-year
degrees.
Kramer said his company partners with the College of Southern Nevada, UNLV and private
institutions.
“CSN, with its certificate degrees, is a big thing for us. … And the college itself has been great
about asking businesses what they are looking for and how (the college) can train them,” Kramer
said.
Susan Adamek, director of education for St. Rose Dominican Hospitals, said her team is hiring
qualified people who haven’t attained bachelor’s degrees. She said EKG, surgical, GI and
imaging technologists are all in demand. Although those positions are easier fill, there are plenty
of openings for people considering the fields.
“Somebody with those qualifications should certainly be able to get a job,” she added.
And STEM jobs come with a “significant salary premium,” according to the report.
Jobs that require four-year degrees pay an average of $77,000 annually, compared with $51,800
for similarly educated workers in non-STEM fields. And for those with associate’s degrees or
certification can expect a 60 percent higher average income than those with non-STEM jobs.
‘Deeper thought process’
But when it comes to higher-level technology positions, Nevada simply doesn’t compete, said
Damien Patton, CEO of Banjo, a tech startup with a local office.
Banjo collects social signals and organizes them by time, location and content. The free app
indexes breaking news and events and allows users to stay on top of news but also peoples’
reactions to it through social media in real time.
Patton said his greatest problem is finding data science engineers, software engineers and other
engineers who are not just proficient but really on top of their game. He said Banjo is not a
“horizontal business,” like, for example, an online store operation. Banjo is breaking new ground
in how media is gathered and distributed.
“It’s about a deeper thought process,” he added. “These are people writing code for something
that hasn’t existed before.”
His company employs about 30 locally and hires two to three people a month, most of them from
Silicon Valley or top computer programs like MIT, Cambridge or Stanford. But some of his best
employees are hackers without a formal education.
Cont’d on next page
Page 5 of 13
NBC Members
(contd)
Northern Nevada
Chamber of
Commerce
Northern Nevada
Title Company
Note-Ables
Office Support Center
OHL
Paper Cup, LLC
PAUGHCO
Pershing
County/Lovelock
Plating Products
Plumas Bank
Polam Machining
Pro Group Mgmt
Realty Executives
Regional
Transportation
Commission
RE/MAX
Reno Forklift and
Storage
Reno-Tahoe Airport
Authority
Retail Assn of Nevada
Ribeiro Company
Shaheen-Beauchamp
Builders
Bob Shriver,
Consultant
Sierra Nevada Assn.
of Realtors
Sierra Sage Magazine
Silver Oak Golf &
Events Center
Silver Springs
Airport
Silver State
Consultants
Silvera Commercial
Real Estate, Inc.
Skywest and
Companies
Small Business
Admin
Solid Solutions
Design &
Machine
Sperry Van Ness
Commercial Real
Estate
Spherion Staffing
Stantec
State Agent &
Transfer
Syndicate
Stewart Title
Storey County
“I would put our hackers up against our MIT guys any day of the week,” he added.
Patton said he has exhausted the local talent pool and is more focused on finding those willing to
relocate. About a third of his employees are from other countries.
Too many local college or university graduates lack understanding of cloud technology on a deep
level, he said. They also lack knowledge of the latest programming languages, such as Python,
Ruby or Google’s Go, and they are severely lacking in mobile computing.
“They're not coming out of school prepared. And that's just a fact. … I love Las Vegas and
Nevada. I don’t begrudge UNLV or the system. I’m trying to help them. But the reality is … I can’t
wait around for them,” he said.
Mike Yoder, chief technology officer of Wintech LLC, a locally based company that markets its
ALICE virtual receptionist product around the world, has nine employees.
Software developer positions, he said, whose salaries range between $70,000 and the high
$80,000s, are a challenge for him to fill as well.
“We just found two software developers locally, but we have hired from the East Coast,” he said.
“It’s challenging in our market, but also just about any market.”
Waiting game
The report also highlights the length of time it takes employers to fill STEM positions. The
average time to fill a non-STEM position is 24 days, while STEM jobs take about 30 days to fill in
Nevada. For STEM positions requiring at least a bachelor’s degree, the average is 33 days.
But the higher the degree of specialty, the longer many jobs go without being filled. Aerospace
jobs are vacant for an average of 45 days. Software application developer positions averaged 42
days, civil engineers 45 days, and database administrators 52 days.
In health and medical services, the hardest positions to fill include occupational health and safety
specialists (87 days), internal medicine doctors (72 days), surgeons (62 days), nurse
practitioners (48 days) and pharmacists (41 days).
Adamek said pharmacists, occupational therapists and physical therapists are high-demand
positions. It’s not uncommon for St. Rose hospitals to work six months in advance to fill a
pharmacy position.
Going forward
Muro noted that recent developments in Nevada show the state is moving in the right direction.
The Legislature’s passage of Senate Bill 345 in 2013 creating a state STEM advisory council is
one of them. The Nevada System of Higher Education has shown a willingness to align with
economic diversification efforts, Muro said.
And UNLV has received grants to boost post-secondary education options for low-income
students, as well as provide professional development for middle and high school STEM
educators. The university’s emphasis on achieving Tier One research status, which began this
fall, and pursuit of a medical school are also positives.
Among the report’s recommendations is a better alignment of education initiatives with private
industry needs.
“Now is a time of particular ferment with whole new industries beginning to grow,” Muro added.
“There’s a real need to make sure we are training potential workers for actual positions.”
Page 6 of 13
NBC Members
(contd)
Tahoe & Carson
Telephone
Directories
Tetra Tech
The Bosma Group
Ticor Title
Town of Mammoth
Lakes
Trakker Design
Uhart Commercial
Real Estate
United Construction
Corp
Universal Analyzers
UNR/Business
Environmental
Program
UNR/Center for
Regional Studies
US Bank
USDA Rural Loans
VCM Collision Center
Vidler Water
Company
Vital Systems Corp.
Vitamin Research
Products
Washoe County
Health District
Wells Fargo Bank
Wells Fargo Advisors
Western Industrial NV
Western Nevada
College
Western Nevada
Supply
Western Industrial
Nevada
YESCO
Politics
Brown re-elected, 'Strong mayor' defeated, mixed results on state props
published on-line by the Sacramento Business Journal, November 5, 2014.
Candidates brutalized each other for weeks in TV ads and endless mailings, but Election Night
itself was pretty tame in the capital region.
News organizations pronounced Gov. Jerry Brown re-elected to a fourth term only minutes after
the polls closed. Most other races only took a couple of hours to settle.
Here are the final unofficial tallies in key elections, with 100 percent of precincts reporting.
Business Journal reporters will follow up later today with reaction from local business leaders.
STATEWIDE RESULTS
LOCAL RESULTS
Governor
Jerry Brown (Dem) -- 58.7%
Neel Kashkari (Rep) -- 41.3%
City of Sacramento
mayor)
Favor -- 42.8%
Oppose -- 57.2%
U.S. Congress, District 7
Ami Bera (Dem) -- 48.6%
Doug Ose (Rep) -- 51.4%
State Senate, District 6
Roger Dickinson (Dem) -- 46.9%
Richard Pan (Dem) -- 53.1%
Proposition 1(water bond)
Favor -- 66.8%
Oppose -- 33.2%
Proposition 2("rainy-day" fund)
Favor -- 68.7%
Oppose -- 31.3%
Measure
L(strong
El Dorado County Measure M(ties growth to
traffic)
Favor -- 42.1%
Oppose -- 57.9%
El Dorado County Measure
current growth measure)
Favor -- 25.0%
Oppose -- 75.0%
N(extends
El Dorado County Measure O(limits growth
to high-density areas)
Favor -- 33.2%
Oppose -- 66.8%
Proposition 45(health insurance rates)
Favor -- 40.2%
Oppose -- 59.8%
Proposition 46(lifts medical malpractice cap)
Favor -- 32.9%
Oppose -- 67.1%
More from Tesla
1. Motor Trend: Tesla P85D is world's fastest-accelerating sedan
published on-line by the Silicon Valley Business Journal, November 4, 2014. Author: Jason
McCormick
Palo Alto automaker Tesla Motors Inc. now builds the quickest-accelerating sedan on the planet,
Cont’d on next page
Page 7 of 13
according to a first test by Motor Trend.
The automotive magazine said in a review of Telsa's Model S
P85D, a higher-performance version of its flagship sedan, that
the electric car does zero to 60 miles per hour in 3.1 seconds,
a tenth of a second quicker than the accepted times of Audi
AG's RS 7 and McLaren Automotive's F1.
Tesla has said the P85D accelerates at 3.2 seconds with dual motors, but Motor Trend said it
clocked the acceleration at the even faster speed of 3.1 seconds.
The Model S P85D base price is $105,670.
The price of the version Motor Trend tested is $120,170, the magazine said.
"Wall Street suits haven't ridden in the Model S P85D," Motor Trend said in a review on its
website. "And best they don't if they want to keep their Brooks Brothers slacks dry, because
we've just tested it, and as insane goes, it makes Charlie Manson look like Charlie Rose."
Motor Trend's high praise comes amid intensified competition for Tesla, whose shares slid
roughly 15 percent in the past two months.
The Renovo Coupe by Renovo Motors Inc., a Campbell company which says its sports car is the
world's fastest rear-wheel-drive electric vehicle, does zero to 60 miles per hour in 3.4 seconds
and reportedly goes for $529,000.
Earlier this year, NanoFlowcell AG introduced its Quant e-Sportlimousine, a sports car that tops
out at 217.5 mph and runs on a saltwater-based battery.
2. Tesla to make 8.2 million batteries daily
published on-line by Nevada Appeal, November 19, 2014.
Tesla Motors eventually will make 8.2 million batteries daily in Storey County, according to Ray
Bacon, Nevada Manufacturers Association director.
He provided that figure during remarks at a Nevada Business Connections breakfast meeting in
Carson City as he shared speaking duties with Bruce Breslow, director of Nevada’s Department
of Business and Industry, and Joe Dutra of Reno-based Kimmie Candy Co. Tesla is building a
gigafactory battery plant 30 miles northeast of Carson City near Interstate 80.
Bacon said Tesla’s newer battery-powered cars, which will target for a mid-range market rather
than courting high end buyers as the current vehicles do, should have a range of 220 miles in
hotter climates and above 300 in Nevada. He said that means a trip from Reno to Las Vegas
would require just one charge en route, taking 15 minutes or so while a driver rests and has a
snack as the car powers back up.
“They fully understand,” Bacon said of Tesla’s leaders, “that they will be under fire from day one.”
He explained Tesla would be under fire from other automakers because it’s vying for the huge
mid-range price market.
Breslow spoke of his department’s efforts to help small businesses in Nevada. Dutra said he has
been growing at 15 percent annually and called moving from California years ago a topflight
decision.
Page 8 of 13
Finance
Zulily stock tanks after company posts $795,000 loss
published on-line by Puget Sound Business Journal, November 4, 2014. Author: Rachel Lerman
Zulily's stock plummeted 14 percent in after-hours trading Tuesday after the Seattle e-commerce
company posted a loss of $795,000 in its quarterly results.
The e-commerce site reported revenue of $285.8 million, a 72 percent increase from $166.7
million a year ago.
The $795,000 loss is compared to a loss of $2.2 million in the same
period last year and a profit of $4.3 million in its second quarter this
year.
Zulily's (NASDAQ: ZU) stock has been volatile to say the least in the
year since it went public. It has dropped 57 percent from its February high of $72.25, and is one
of the most heavily shorted stocks in the retail industry on the NASDAQ.
CEO Darrell Cavens has said he doesn't watch the stock carefully, deciding instead to focus on
something he can control — pleasing customers.
"The volatility will go up and down over time," Cavens told the PSBJ in an interview last month.
The company's employees aren't any smarter, and the business model isn't any better when the
stock goes up or any dumber or worse when the stock goes down, Cavens said.
But the news comes with several bright spots for Zulily. Mobile sales continue to climb,
increasing to 50 percent of its sales from 45 percent in the same period last year. The company
is known as one of the forefront firms in the transition to mobile shopping.
"This was a strong quarter where we hit several key milestones — the business reached $1
billion dollars in revenue on a trailing 12 month basis and the majority of our North American
orders now come from mobile," Cavens said in a statement.
The company has 4.5 million active customers, defined as someone who has bought a product in
the last 12 months. Zulily has a strong history of getting customers to return. Data released
earlier this year showed the longer the customer has used the site, the more they spend.
In the last 12 months, 84 percent of North American orders came from customers who had
bought from Zulily before.
Zulily's share price is about $31 per share, down from nearly $36 during regular trading.
Technology
1. Are small manufacturers ready for R2-D2?
published on-line by Minneapolis / St. Paul Business Journal, November 4, 2014.
Author: Rebecca Morgan
In my September 2014 article, I wrote: "The use of technology should be
considered for its ability to support the safety, information needs and productivity of
Cont’d on next page
Page 9 of 13
your employees. It should not be considered because it is cool or because some other company
uses it."
"The Jetsons," "Star Wars, and "Back to The Future" whet our appetites for advanced
technology. It's easy to become enamored with technologies at trade shows or that we see in
someone else's operations. While the image of robots intermingling with employees can be
exciting, is it profitable?
"Pick and place" robots have been used for years in manufacturing to replace dangerous,
monotonous or error prone human activities. This type of equipment is especially valuable in
high-speed, high-quantity, high-precision placement. The caveat, however, is that the process
must be extremely precise for an entry-level robot to actually work.
Low-priced robots require complete predictability of
where, when and how. They can't hunt around, figure
out when to act or tweak things not quite right. That
requirement for definitive processes is a significant
challenge for most small manufacturers.
Unsophisticated robots are not cheap. Investing
$10,000 to $40,000 in a simple option is a significant
decision for small manufacturers. Moreover, the
purchase price is only the first of several costs to be
incurred.
Detailed programming and equipment maintenance
may require new internal skills or outside contracting. Programs likely need revised whenever
product shape, production processes or equipment locations change.
So is a robot a bad idea for a small manufacturer?
Not at all if you've thought it through and can effectively support it. In fact, it can have a positive
impact on the business beyond the initial justification.
Consider these few questions before spec'ing your own R2-D2:
1. Does the work actually need to be done at all?
Automating work steps that shouldn't be required in the first place makes no sense. If time is
wasted looking for tools or materials, you will need to fix that before installing robots. The
equipment must be programmed to know where to go when. As much as we might like it, there is
no "figure it out on your own" button on low priced robots. Lean manufacturing methodologies
can ensure tools, parts and information are well-located to support the worker.
I encourage you to quickly research "5S." Well implemented, the concept will reduce "now,
where is it?" wandering around and make robotics possible.
2. Is the work so elementary that a human shouldn't be wasting his life doing it anyway?
Your employees are capable of contributing value far in excess of moving items from Point A to
Point B. Utilizing a robot for basics and people for activities and decisions that require intellect
can greatly improve job satisfaction and reduce turnover.
3. Could the robot supplement other material handling equipment you use?
If you currently depend on tow motors, hand jacks or similar devices to move product, a robot
could augment that capacity and reduce waiting time. Perhaps the robot could lift and hold heavy
items, allowing workers additional angles of access.
Cont’d on next page
Page 10 of 13
4. Does the work require judgment that an inexpensive robot can be programmed to have?
Make sure you understand the seemingly small decisions your employees are making every day
as they complete their work. If those conditions can be standardized, do so, whether for your
employees or a robot.
Considering injuries that a robot could have prevented, the value of better leveraging employee
talent, enhanced speed a robot can facilitate, reduced variability a repetitive automated process
may enable may make buying a robot a no-brainer. And you may love it so much you bring more
of its family into yours.
2. Internet of Things backers see a brave new (measured) world
published on-line by Silicon Valley Business Journal, November 7, 2014. Author: Jose Fermoso
Every service, from new technology startups to legacy industries, will be embedded with
connected smart sensors if the business people and engineers gathered at the Re:Work Internet
of Things summit have their way.
Health care, oil and gas, transportation, and agriculture industries will
be especially affected because of their reliance on productivity,
efficiency and on-time performance, said Shyam Varan Nath, principal
architect at General Electric, at the Re:Work Internet of Things summit
in San Francisco on Friday.
In aviation, for example, smart data will help airlines measure fleet age
and how much gas is used, which could help them reduce maintenance costs and improve ontime flight performance.
Market analyst group Gartner projects Internet of Things services will generate more than $300
billion in revenue by 2020. GE has estimated IoT services could add $10 trillion to $15 trillion to
global GDP within 20 years.
Management consulting firm McKinsey and Co. says a few
main functions define services that are Internet of Things. That
includes tracking behavior, enhancing situational resources,
optimizing resource consumption and enabling sensor-driven
decision analytics.
Exciting ideas of how to put IoT to work emerged from the
relatively dry explanations of utility software management that
dominated much of the panels and keynotes at Re:Work.
Craig Hollingworth, the co-founder of SaaS management company Concirrus, said his company
helped an insurance company determine collision liabilities of car accidents by analyzing data
metrics produced by sensors in cars. Concirrus looks at the speed of the car at the time of a
collision, the map where the car was hit, and the direction the collision sent the car. In one
instance, the software figured out that a car had been hit from behind, based on those metrics,
Hollingworth said.
This application could be useful to car insurers who face lawsuit frauds based on such accidents.
Even Caterpillar truck tires have benefited from these analytics. When sensors provided
geolocation data, the truck maker determined an optimal tire pressure depending on cargo
weight.
Agriculture is another industry already being affected by Internet of Things services. The
summit's early session featured OnFarm, a software analytics platform that connects data from
the field and provides cloud support.
Cont’d on next page
Page 11 of 13
Lance Donny, the CEO of startup OnFarm, said his company's software picks up smart data
from the field directly, including how much water crops need a day. The business model of
OnFarm is simple: It helps farmers connect to companies that provide hardware sensors and
then manages those sensors for the farmers with its software.
OnFarm software takes in sensor data from any IoT device-maker. In this sense, it wants to
become the operating system platform for all agriculture sensor vendors, or a bit like an Oracle
SaaS system for the farmer set.
Keynoters
NBC Keynote speakers in 2012/2013/2014:
Month
Speaker
Bruce Breslow, Director of the Department of Business and
November 2014
Industry, and Joseph F. Dutra, Kimmie Candy Company
Sonny L. Newman, President of EE Technologies, Inc.,
October 2014
Megan Sells with Patagonia, Inc., and Ray Bacon, Nevada
Manufacturers Association.
Craig Mullet, CM Enterprises, manufacturing consultant, and
September 2014
Ray Bacon, Nevada Manufacturers Association.
Darryl Rubarth, owner of LabAnalytix, Inc. and Ray Bacon,
July 2014
Nevada Manufacturers Association.
Nick Marano, new City Manager of Carson City, and Ray
June 2014
Bacon, Nevada Manufacturers Association.
L. Lance Gilman, Tahoe Reno Industrial Park & Storey
April 2014
County, with co-hosts Luke Leonard, CVirtual, and Ray
Bacon, Nevada Manufacturers Association.
David Midboe, Concept Automation Systems, with emcee
March 2014
Ray Bacon, Nevada Manufacturers Association.
Joseph F. Dutra, Kimmie Candy Company, and Dean
February 2014
Schultz, Reno-Tahoe Airport Authority, with emcee Ray
Bacon, Nevada Manufacturers Association.
Power Panel of Manufacturers (Stephen Vanderver, Vital
Systems; Gerd Poppinga, Vineburg Machining; and Frank
January 2014
Dutra. Advanced Machining Techniques) with emcee Ray
Bacon, Nevada Manufacturers Association.
Power Panel of Manufacturers (Ken Stokes, Burns
Machining, Eric Dripps, Vitaman Research Products, Bret
November 2013
Sheldon, CINC Industries) with emcee Ray Bacon, Nevada
Manufacturers Assn.
Dale Erquiaga, Nevada State Superintendent of Public
October 2013
Instruction, and Pedro Martinez, Superintendent of Washoe
County Schools
Power Panel of Manufacturers (Olgierd Downarowicz, Polam
September 2013
Precision Machining, and Harvey Hornung, Nevada Heat
Treating) with emcee Chris MacKenzie, Attorney.
Power Panel of Manufacturers (Mark Thomas, Betra
Manufacturing, Red Sexton, Jube Machine, Dave Bess,
July 2013
Carson Hi Tech, and Bob White, Taiyo-America) with emcee
John Bullis, Bullis & Company, CPAs.
Corrado De Gasperis, President & CEO, Director, and Ron
June 2013
James, Chief Historian, both from Comstock Mining Inc.
Power Panel of Manufacturers (Walt Owens, Owens
Precision, Eric Rauch, Ametherm, Len Semas, Cubix, John
May 2013
Colyer, Reliance Parts, David Schuster, MC-21) with emcee
Paul Enos, Nevada Truckers Association.
Cont’d on next page
Page 12 of 13
April 2013
March 2013
February 2013
January 2013
Environment Power Panel (Chris Lynch, UNR Business
Environmental Program, Joe McCarthy, Comstock Residents
Association, and Greg Martinelli and Sarah Polito, Waste
Management.)
Manufacturers Panel (Collie Hutter, Click-Bond, Emcee; Dave
Williams, Aervoe Industries; Ralph Johnson, EZE-LAP Diamond
Products, Inc., Ron McBroom, PAUGHCO, John Holliday, Aloha
Medicinals, and Dave Williams, Aervo Industries.
Sarah Adler, U.S. Department of Agriculture Rural Development
State Director
Perry Di Loreto, owner of Di Loreto Construction and
Development, and Mary Lau, President and CEO of the Retail
Association of Nevada
Frank Dutra, President of Hubzone Manufacturing and
Advanced Machining Techniques, and Ray Bacon, Nevada
Manufacturers Assn.
For Keynote info further back in time, see NBC Progress for October 2013 on our website
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