Month: December 2020

The 411 on the 1099: What You Need to Know

Ready for a blast from the past?

OK, maybe that description is a bit ambitious, but we think it’s interesting that the government is now bringing back Form 1099-NEC, which was last used back in 1982, during the Reagan administration. For the last few decades, business owners and local government were responsible for using the Form 1099-MISC to report nonemployee compensation. But with the return of Form 1099-NEC, municipalities can say hello to a revamped form. We know it’s been a while since you dusted off your signature 80’s shoulder pads, leg warmers, and Walkman. So, we figured you’d want a refresher on this form as you head into the 2020 tax season. Here’s what you need to know:

You’re familiar with Form 1099-Misc – it’s like a W2 designed to report certain types of compensation to individuals and unincorporated entities based on what the business or municipality has paid them throughout the year. It’s not disappearing, but for the 2020 tax year, payors will no longer report nonemployee compensation, such as payments to independent contractors, on this form. Instead, that’s where Form 1099-NEC comes into play (download it here).

Generally, you’re required to file a Form 1099-NEC if you meet the following conditions:

You paid someone who’s not your employee
You paid for services during your trade or business
You paid an individual, partnership, estate, or corporation (in some cases)
You paid at least $600 to the payee during the year

Miscellaneous service payments other than nonemployee compensation should still be reported on Form 1099-MISC. This includes payments of at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest, and payments of at least $600 in:

Rents
Payments to an attorney (other than fees for services)
Section 409A deferrals
Nonqualified deferred compensation

There are other categories that are less likely to be applicable to local municipalities, for further clarification, please reference this IRS link.

For 2020, the IRS requires you to furnish the statements to recipients and file Form 1099-NEC on or before January 31, 2021. This differs from the Form 1099-MISC IRS filing deadlines: if you file on paper, you must file Form 1099-MISC by March 1, 2021; if you file electronically, you must file Form 1099-MISC by March 31, 2021. The deadline for furnishing the 1099-MISC to the recipient is the same, January 31, 2021. Determining which form you will need to file depends largely on the agreement or relationship your municipality has with a given recipient. As a best practice, we suggest that municipalities carefully review the IRS requirements for independent contractor status and always get W-9 forms completed before making any payment to a new vendor or independent contractor. This will save tremendous time at year-end and reduce your chances of getting slammed with IRS penalties. As always, if you run into confusion navigating this change, please contact our dedicated team at RBT.

The Right Road to Recruiting

There are defining moments in history that shape generations. Like flashbulb memories, some events crystalize in our brains, and we can recall “where we were” when we heard the news that changed our world. Without a doubt, 2020 has been a sobering experience for every American, regardless of their age or background. But for members of Generation Z (people born from 1995 to 2010) who are just entering the workforce, this year has made an indelible mark on their future career paths, priorities, and what they are looking for in an employer. What does this mean for your business? As construction industry leaders, it’s time you prepare your company to welcome and understand the new priorities, needs, and values of this incoming workforce. Otherwise, a huge employee gap will leave you and your bottom line vulnerable in the years to come.

Stand Out

Salary is important. But if posting paychecks is the extent of your recruiting tactic, think again. Studies show that work-life balance trumps salary alone for Gen Z. On average, 38% of Gen Z members consider work-life balance as their number one factor in choosing an employer. If you aren’t already prioritizing your company culture, it’s time to reassess what makes your business shine. From mental-health days to employee assistance programs, to community activities and more, companies need to be better-rounded if they want to attract dynamic talent. To truly stand out to Gen Z, a heavy emphasis should be placed on opportunities for professional development and the chance to grow with the company, along with an inclusive and collaborative environment. Remember, members of Gen Z want to feel like they are making a difference. If your operation is advertised as a place to clock in and clock out at the end of the day, you’re destined to become an undesirable workplace. A high turnover means heightened costs for you, the employer. For example, replacing a mid-level employee can cost 20% of their annual salary, meaning a $60,000 per year manager can cost about $12,000 to replace. To attract (and retain) talent, build in additional incentives. What impact can your employee expect to make on your community, and how can you help them to advance both personally and professionally? These are the tough questions you need to be able to answer come interview season.

Reach Out

What is your team doing to increase visibility? Communication is key. Utilize social media platforms to allow Gen Z members to consider your company. Not on LinkedIn? Create your company profile today. Not on Facebook or Youtube? Consider adding social channels to showcase the exciting work your crew is accomplishing. Generation Z is known as the first true digital natives – the internet, social networks, and mobile devices have been a part of their reality since day one. If it’s difficult to connect with your business, there are hundreds of other more tech-savvy options out there for recruits to explore at the click of a button. Once you master reaching out digitally, interact in-person (or from a safe, six-feet apart during the pandemic, of course). Contact local school district leaders and volunteer for virtual or in person career day events at middle schools, high schools, and colleges. Elevate your internship programs or develop a new program so kids can discover the opportunity that awaits them. New data shows that fifty-six percent of interns and 40% of co-op students turned into full-time, entry-level hires in 2019.

Given the industry’s aging workforce and an unprecedented number of retiring owners, contractors need to do everything possible to recruit young employees into the industry. It’s crucial to take the time to methodically map out recruiting efforts before you’re in a desperate hiring predicament. Recruits need to understand that the construction industry doesn’t just offer temporary job placement, but successful, rewarding career paths – and it’s your responsibility to make sure they know that.

Hours, Hours, and Less Hours

Excitement is building as we are getting ready to celebrate the last holidays of the year. The majority of us will be lucky enough to have two short work weeks without dipping into our personal PTO bank. When we return to our offices in January, we will return to our normal 40 hour workweek. Unless you’re an accountant, that is.

If you’re an accountant, January is the start of a whole different season reserved especially for you. The close of the holiday season means saying goodbye to holiday cheer, gift exchanges, and homemade cookies. Yes, January ushers in tax season – marked by colder temperatures (if you’re here in the Northeast), longer days, and lots of work. At the majority of accounting firms, it is not uncommon for an accountant’s work schedule to go from 45-50 hours per week up to 65-70 hours (or more) per week from January through April 15^th. If you’re an accountant at a Big Four Firm – you know this to be true. The expectation that you are required to work longer hours is generally accepted as a part of the industry culture. In addition, accountants need to complete billable hours – time that can be billed to a client. Because it’s impossible to bill every minute of an accountant’s day to billable time, an accountant might need to work an hour and a half in order to be able to charge one hour of billable time. What does this all add up to? Three and a half months of long days and nights spent at most firms. Most – but not all.

Here’s where RBT CPA’s is different. As the largest CPA firm in New York’s Hudson Valley, we reject the status quo and still produce stellar work for our clients. We start our busy season in the middle of January, and from the middle of January to the middle of February we cap our total hours worked at just 50. Then from mid-February to April 15^th the maximum number of hours a person is allowed to work gets capped at just 55 per week. At some other firms, 55 hours is the norm when it comes to a workweek. At RBT, a 55 hour work week is the exception for a short period of time.

Consider how valuable this work balance is when you factor in your annual salary working an average of 65 – 70 hour workweek versus a 40 – 55 hour workweek. When you do the math and break your salary down to an hourly wage, there is a sizeable earning difference between the two. At RBT, we believe a healthy, happy employee is one who has a life outside of work. We feel being able to spend invaluable time with your friends even during the busy season is key to maintaining your physical and emotional health.

Sounds too good to be true, but… it is! Contact Jclancy@rbtcpas.com to talk about opportunities to join the team.

Are You In Control of Your Inventory?

While much of 2020 feels like a bad dream, it turns out we can all learn a lot from the hectic hunt for the last toilet paper roll in Hudson Valley. We know, your house is stocked up for the rest of the year, and you likely don’t want to relive the nightmarish shopping experience you had at the start of the pandemic. But hear us out, because we think there’s a lesson about inventory management hiding somewhere deep at the back of the shelf, and we want to help you find it. After all, how much money could you be saving by avoiding an inventory headache and getting a better handle on your manufacturing supply? Instead of coming up short or getting bogged down and tying up valuable cash flow, there’s got to be a better way. It’s time to consider the 80/20 rule, find the value in tracking, and embrace emerging technology.

80/20 Rule

As a general rule, 80% of your profits come from 20% of your stock. Make sure you are not prioritizing the wrong inventory by reevaluating what you have. Controlling excess inventory levels will ultimately help your operation maintain better cash flow through these challenging economic times. To do so, you should understand the complete sales lifecycle of items you sell on a weekly and monthly basis. Categorizing your inventory into priority groups can help you understand which items you need to order more frequently and which are important to your business but may cost more and move more slowly. By following this rule, industries handling rapidly changing products can avoid overstocking raw materials and excessive levels of scrap.

Track, Track, and Track Some More

Accountants have this tendency to make a list, check it twice, and then check some more before we are satisfied. Adopting this mentality may initially feel tedious, but trust me – the financial savings will be worth it. Inventory information tracking should include SKUs, barcode data, suppliers, countries of origin, and lot numbers. Tracking the fluctuating cost of each item over time is also critical to ensure you are aware of factors that can impact your bottom line. As history (and the pandemic) has taught us, scarcity and seasonality can have a huge impact on production. Maintain sensitivity to the supply chain by tracking information, making that information accessible to your team, and keeping sufficient levels of essential materials in stock. Identifying a pattern will come in handy during the next unforeseeable inventory disruption.

Time for Tech

Adopting inventory management software is one of the most important things you can do to stay proactive. In RBT’s previous Manufacturing Thought Leadership article, we discussed the Internet of Things or, IoT. If you’re not comfortable with this concept, it’s time to recognize the power of interconnected smart devices! Forbes estimates that the adoption of IoT in the retail sector will reach 71% by 2021. Manufacturers can leverage IoT-tracked inventory information and AI technology to optimize lead times. By comparing new data with an organization’s procurement records, inventory levels, and sales history, AI bots can predict supply shortfalls. Translation: a tech investment today can mean huge financial savings tomorrow.

Traffic Trend: Is Congestion Pricing Coming?

If you’re cruising down I-84 between Dutchess and Putnam Counties, you might notice a smoother ride thanks to the completion of an $11 million project this month that resurfaced over seven miles of roadway. The project, which began in spring 2020 – is a step in the right direction as New York struggles to boost regional economies and create safer, updated infrastructure. But zip down to Manhattan, and as you slow to a halt in maddening traffic, you’ll quickly understand why so many industry experts are advocating to push through the congestion pricing plan that was originally slated to launch on January 1, 2021. The start date may inevitably be further delayed, but the payoff of this program could be big. What’s the plan all about and what could it mean for construction companies statewide? Read on to learn more.

Sometimes called value pricing – congestion pricing works by shifting some rush hour travel to other transportation modes or off-peak periods, taking advantage of the fact that the majority of rush-hour drivers on a typical urban roadway are not commuters.

Under the plan backed by Cuomo and passed by state lawmakers in 2019, drivers will have to pay tolls to enter Manhattan south of 60th Street, making New York the first state in America to implement congestion pricing. But there’s no solid green light just yet, as the federal government still hasn’t told the Metropolitan Transportation Authority what sort of environmental review it should carry out to get federal approval. MTA spokesman Ken Lovett is looking towards the future to get the program up and running. “There’s no reason this should have been held up for as long as it has been, and we’re hopeful the New Year will breathe new life into this vital project,” Lovett said. But whether 2021 will mark the start of a new chapter with the program remains to be seen. The MTA recently released a statement projecting the plan could be delayed until 2023 if the Federal Highway Administration does not act. This lack of clarity continues as the MTA settles into a particularly precarious position – seeking a sizeable $12 billion federal bailout to avoid drastic service cuts.

How much revenue could it raise, and where would the money go?

Once we accept the unknown timeline of the plan, the payoff may be worth the wait. According to state officials, the revenue from congestion pricing would generate around $1 billion annually for major projects, like upgrading the MTA’s aging subway system. It’s a bittersweet reality because the rest of the state wouldn’t see the revenue funnel into local projects, but the success or failure of the MTA largely reflects the state’s economy as a whole. According to Mitchell Moss, the director of the Rudin Center for Transportation, New York is responsible for 10% of the entire national gross domestic product. “The city has a disproportionate role in the national economy and global economy,” said Moss, “and the U.S. has a stake making sure this region is vital, just like we need to make sure airlines are vital.”

What do Hudson Valley contractors have to gain, or lose?

Bigger infrastructure budgets to improve tunnels, bridges and roadways ultimately means more job opportunities for contractors to bid on, even if it also means diversifying your portfolio and bidding on projects in the five boroughs. Long-term, as local municipalities struggle with floundering revenue streams, congestion pricing models could be adopted on smaller, regional scales to generate infrastructure dollars in the future which could mean more capital for more local projects. Plus as congestion continues to expand regionally, it could also mean cutting down on valuable time wasted in transit. According to the FHA, based on current trends, a medium-sized city should expect their congestion in 10 years to be as bad as or worse than what large cities currently experience. The rate of congestion growth has been greater in rural areas than in urban areas, signifying increased congestion in communities of all sizes. While we know it’s a concept that will take some getting used to, it will undoubtedly be in New York’s five-year economic forecast. So as with most changes, it’s best to digest congestion pricing before it takes effect. Want to discuss the latest trends impacting your industry? Schedule a call with one of our dedicated professionals today and stay ahead of the latest news!

How Solid is Your Safety Plan?

A year ago, it would be incomprehensible to imagine a time where local family-friendly traditions like attending a holiday concert or a crowded community tree lighting could pose a public health threat to us, but as challenging as it is to accept that we still need to operate under pandemic rules, alternatives are out there. From drive-by holiday light displays to virtual viewings of The New Paltz Ballet Theatre’s The Nutcracker, local government needs to keep communities informed to maintain morale and stay virtually connected. As the holiday season continues with Hanukkah celebrations in full swing and Christmas just around the corner, more opportunities to get together and a boost to interstate travel, unfortunately, mean more risk to contract Covid-19. Right now, Covid-19 community spread persists as a growing problem within Hudson Valley neighborhoods, and many local leaders are contracting the virus themselves, while others are leaving their positions entirely. An alarming new investigation from The Associated Press finds one in 8 Americans — 40 million people — lives in a community that has lost its local public health department leader during the pandemic. Top public health officials in 20 states have left state-level departments, including in New York, which has lost three state health officers since May, one after another. The study found many of the state and local officials left due to political blowback or pandemic pressure. Some departed to take higher-profile positions or due to health concerns. Others were fired for poor performance. Dozens retired. As community members struggle to know how to handle the pandemic this winter, a shrinking local government needs to remain diligent and revisit safety plans.

Practice what you preach.

Local government officials should be mindful of their actions and the actions of their team members. It’s important to lead by example and ensure that your team is following the rules you’re enforcing. California Governor Gavin Newsom recently came under fire after being photographed at large formal dinners and gatherings, mask-less and ditching the same social distancing protocols that he is enforcing statewide. Regardless of your status as a public figure, your team must practice the same consideration as you instruct your constituents to follow. Check in with team members regularly to make sure everyone is aware of the latest regulations and safety recommendations.

Stay social, while social distancing.

Some local leaders are using the power of social media to get their message out and create an open dialogue with the families they serve. Orange County Executive Steven M. Neuhaus is teaming up with The Patrick M. D’Aliso Foundation to raise awareness about suicide prevention and mental health every Monday and Thursday. As part of a new awareness and outreach initiative, “Orange Cares,” asks residents to write letters of appreciation to Orange County’s doctors, nurses, first responders, medical administrative staff, and those in nursing homes or hospitals during this holiday season. Ulster County Executive Pat Ryan took to Facebook to share vaccination updates in his Thursday briefing, detailing that the county health department and CVS pharmacies would be in charge of distributing vaccines to the county’s nursing homes. Communication and consistent community outreach are key while we are all staying safe, apart. While your team may be operating remotely, don’t neglect to update your website or social media sites to keep community members informed.

Quarantine fatigue is a real issue that’s driving people out of their homes and into unsafe social settings.

After months of fluctuating levels of lockdown, some are letting their guard down, not adhering to social distancing measures or diligent mask-wearing, leading to heightened infection rates and spikes in new positive cases within the Hudson Valley. Orange, Dutchess, Ulster, and Putnam county leaders held a joint Zoom press conference in late November, focusing on managing risk and revamping safety measures – an accessible plan that could be extremely effective if it was coordinated regularly. As positivity rates and hospitalization rates continue to increase, New York is recalibrating protocols with a new Winter Plan based on the most recent public health data. Click here to stay up to date with the new metrics for determining color zone designations. Whether it concerns accounting, out-sourcing or compliance issues, you can contact RBT’s dedicated team for help navigating this challenging time.

Who’s Getting the First Covid-19 Vaccines in NY: What to Know

Hope is on the horizon for the healthcare heroes that have exhausted resources including their teams of staff for the past eight months, as the pandemic drags on.

Finally, the beginning of the end is in sight, and Governor Andrew Cuomo plans on giving vaccination priority to nursing home residents and health care workers, as he follows the recommendation set out by The Advisory Committee on Immunization Practices. New York expects to receive 170,000 doses of a Covid-19 vaccine produced by Pfizer and BioNTech by December 15. Ultimately, distribution depends on authorization by the Food and Drug Administration, and a tentative FDA advisory committee meeting is scheduled for December 10. The vaccine requires each person to receive two doses, and according to Cuomo, New York expects to obtain another 170,000 doses within 21 days to meet that requirement.

Few industries have felt the full wrath of the Covid-19 pandemic like those who operate within the assisted living and nursing home world.

While 6% of U.S. cases have occurred in long-term care facilities, deaths related to Covid-19 in these facilities account for roughly 40% of the country’s pandemic fatalities. Teams have spent the last eight months balancing staff safety with high-risk patients, the adoption of new procedures and the added costs associated with mandated Covid-19 testing requirements. Even before the pandemic, recruiting and retaining qualified skilled workers was a growing challenge across the state. The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) released an updated report revealing that U.S. nursing homes have experienced the worst outbreak of weekly new cases since last spring due to community spread among the general population, surpassing previous peaks since the Centers for Medicare & Medicaid Services (CMS) started tracking cases in nursing homes. While federal and state government agencies have stepped in to mitigate the impact of the virus, many staff members are left feeling completely overwhelmed nearly a year into dealing with the loss and strain caused by the pandemic. The news of the pending Covid-19 vaccinations comes as a welcome glimmer of healing as we approach 2021. So, if you are a healthcare worker, when can you realistically expect to be vaccinated?

According to New York’s draft vaccination plan released in October, there are approximately more than 800,000 critical health care workers in hospitals, long term care facilities (LTCFs), emergency medical services, and home care, and approximately 83,000 LTCF residents will be targeted during the initial phase of limited vaccine supply. This means based on available dosages, over 700,000 nursing home residents will miss out on initial vaccinations but will be next in line. The Centers for Disease Control and Prevention (CDC) announced a pharmacy partnership with CVS and Walgreens entitled the Pharmacy Partnership for Long-Term Care Program to offer on-site vaccination services for residents and staff of nursing homes and assisted living facilities. The program will provide the vaccines, on-site vaccination of residents, and end-to-end management of the COVID-19 vaccination process, including storage, handling, cold chain management, and fulfillment of reporting requirements, at no cost to the facility. For more information about vaccine training and the latest reference materials for healthcare professionals, please visit this site.

Learning Legal Liability: Covid-19 Risks

Even if science was your favorite subject in school, it’s hard to keep track of the constantly updating Covid-19 statistics and charts.

And as science class taught us, there is a flurry of factors that can ultimately contribute to you being exposed to or contracting a contagious virus like Covid-19. For school district officials, trying to navigate and effectively implement safety protocol can be extremely daunting. Maybe your school district is fully remote or phasing back into hybrid learning. Perhaps students and parents are signing attendance waivers based on what works for their family. Or if you’re in Manhattan, maybe your school is one that resumed full-time in-person learning at the start of this week. Schools Chancellor Richard Carranza said not only are masks, proper disinfecting, and PPE continuing to be enforced but additionally, students must have signed testing consent forms on file to allow their in-person participation. But with policies, procedures, and infection rates constantly fluctuating, many New York officials and local school board member’s heads are spinning. What legal liabilities surround reopening school doors, and how can you be prepared?

Our schools are a second home for kids of all ages, providing crucial socialization, emotional and educational support, nutritious meals, and physical fitness opportunities.

While districts are taking steps to mitigate the risk of Covid-19 spread, some students and faculty are bound to come in contact with an infected individual, either in or outside of the classroom. It’s challenging to pinpoint in-person learning as the main culprit, but schools are already facing legal challenges from parents. While each case is unique in circumstance, it’s important to stay vigilant and protected. Most school districts have general liability insurance, which does not cover communicable diseases like Covid-19. Individual states offer some immunity defenses that could shield schools from lawsuits, but, according to Loretta Worters of the Insurance Information Institute, there’s nothing clear-cut about how it would apply to the coronavirus. As a result, some insurers are offering riders on policies to extend liability coverage for the virus — at an additional cost. Some school districts opting for extended coverage will pay between $5,000 and $150,000 for the added protection. Some lawmakers are advocating to protect schools from being targeted, including New York Assemblywoman Marjorie Byrnes, R-Caledonia, who has introduced A.11025 in the Assembly. It states that in-person schools will not be liable for damages if someone contracts Covid-19 as long as they are compliant with state reopening guidelines outlined by the state Education and Health departments, as well as guidelines from Gov. Andrew Cuomo’s office. The National School Boards Association; AASA, The School Superintendents Association; the Association of Educational Service Associations; and the Association of School Business Officials International are lobbying federal lawmakers to include “targeted liability coverage” in a potential second Covid-19 stimulus bill.

Before you turn to increasing insurance options or shy away from resuming in-person classes, you can take smart safety steps.

Host weekly briefings so faculty can voice concerns or share safety tips, and everyone can stay informed on the latest local data tracking Covid-19 outbreaks in your community. Regularly reevaluate policies and procedures to protect your students and staff, and communicate to parents about changing plans with written documentation, to ensure you are following recommended safety measures. As you know, there is no one size fits all answer. Each district needs to follow local and state guidelines as virus infection rates and hospitalization rates fluctuate. If officials are acting reasonably and taking smart, calculated measures to ensure safety, districts will be set up for success and continued community support. We recommend visiting the CDC’s website plan and response section covering school reopening indicators here. Want to discuss your school’s safety strategy? Contact our dedicated team members today.

How Tech is Rebuilding Construction

It’s 2020 and many of us have happily embraced couch culture. Beyond binge watching your favorite show on Netflix, you’ve proven that you can successfully run business meetings, write papers, and teach makeshift math classes to your kids all while sporting your signature sweats. You can’t however – build a skyscraper from the comfort of your couch – unless it’s made out of Legos. But while some in-person aspects of the construction industry can never truly be replaced, major technological advancements are breaking down barriers and helping crews succeed, even in the middle of a global pandemic. Long before the Covid-19 pandemic caused operations to shut down this past spring, a technological industry shift was underway. Big data, artificial intelligence (AI), and automation, as well as technologies like drones and 3D printing have been implemented industry-wide. With restrictions on job sites and safety measures in place to protect both worker and client health, construction companies need to do everything they can to stay competitive. Let’s explore what big data means, and how tele-building can help you save money, improve efficiency and prepare for the remote possibilities of the future.

Big Data

“The world’s most valuable resource is no longer oil, but data.”

The huge quantities of information that have been stored in the past and that continue to be gathered every day is known as big data. This information can come from a combination of people, computers, machines sensors, and any other data-generating device. Generally speaking, it helps to streamline a construction operation. Historical big data can be analyzed to identify construction risk probabilities, or weather and traffic patterns to help you plan more efficiently. It can even be used to help you save money by evaluating previous projects’ overspend or unused materials. Machine sensor input can help to determine active and idle machine operating time so you can make smarter decisions about buying or leasing equipment. So, what do you do with the data once you’ve collected it? You can get an even more accurate building process in place once your data is fed into a solid Building Information Modeling (BIM) program. A 2018 case study found data-driven BIM can cut construction expenses by 18% and reduce completion time by up to two weeks. The possibilities for cost-cutting are endless, and as you know, time is money. One way that data collection is further fueling faster, more efficient construction, is through enabling what’s being described as tele-building.

Tele-building

“Just as telehealth has transformed life, so will tele-building.”

Industry expert Jeevan Kalanithi believes that just as telework and telehealth have erupted, so will a concept he describes as tele-building. “We believe that tele-building will soon take off to scale the expertise of our superintendents, project managers, inspectors, and foremen,” said Kalanithi. “If your captures of the site are high-quality, you can reduce the amount of in-person visits needed, saving time and money, as well as improving knowledge transfer.” As the CEO of OpenSpace, Kalanithi envisions digitally strolling sites as the way of the future. OpenSpace offers a photo-documentation solution that allows builders to walk a job site with a small camera on their hardhat. The solution then automatically handles the capture, uploading, and organization of those images. The result is a maneuverable experience similar to Google Street View, made possible by computer vision that can be viewed and analyzed from anywhere, bringing the job site to remote workers. While larger projects like renovations or multi-year megaprojects will cost you, you can trial the concept by using OpenSpace Photo to capture smaller areas and quickly generate 360 degree photo documentation for free.

Every day, new tech is emerging. It can feel overwhelming to stay caught up on the latest breakthroughs or cutting-edge trends you need to know about to keep your business running smoothly. The professional team at RBT is here to help you navigate the fast-paced world we live in. Please do not hesitate to reach out and schedule a conversation to discuss your business needs, today.

The Best Way to Manufacturing

When someone mentions artificial intelligence (AI) to you – what comes to mind?

Does a terrifying scene from Terminator spring to life, with evil robots stealing our jobs, decimating our workforce, and destroying life as we know it? Well whether you realize it or not, AI is already integrated into nearly every aspect of your life and is slated to improve your workflow, too. From relying on spam filters in your email inbox to recruiting digital voice assistance tools like Alexa to share the weather forecast, explain a new recipe, or even blast Sinatra in your kitchen while you do the dishes – you use AI. Across industries, AI is paving the way towards a more cost-efficient, sophisticated future. Let’s explore the most prominent role AI has within the manufacturing industry and why you could be missing out on huge savings if you’re not on board.

We probably don’t need to explain to you why guessing isn’t exactly a sound business strategy, but for generations, manufacturers were limited when it came to handling equipment maintenance. The reality is, many companies consistently run machines until they break and then spend a lot of money replacing systems and wasting valuable time. A revealing joint study by The Wall Street Journal and Emerson found that unplanned downtime costs industrial manufacturers an estimated $50 billion per year. Equipment failure accounts for an astounding 42% of this unplanned downtime. How much money could you save if you stopped maintaining your equipment on a fixed schedule basis or worse – guessed when it’s time for a fix? The Internet of Things (IoT) is enabling manufacturers to transform from reactive to proactive, thanks to wireless connectivity, access to inexpensive sensors, and cloud computing. By implementing AI that uses complex analysis to predict pending component failures, a manufacturing team can receive notifications automatically right to their cell phones, and the problem can be solved before it exists. By adopting predictive maintenance solutions, manufacturers can optimize assets and ultimately, save avoidable costs. Many are already reaping the benefits of predictive maintenance, in fact, according to 2020 AI stats, nearly 30% of AI implementation within the manufacturing industry goes towards improving maintenance. To start taking advantage of predictive maintenance practices, you need to equip your machines with emerging tech, like sensors, cameras, and software that can analyze data in real-time. From 3D printers and scanners to steel-cutting lasers, conveyor belts with high-resolution cameras, and thermal process sensors, smart devices enable you to collect a ton of useful data about the machines’ performance and productive lifespan. You should also plan on retraining team members so everyone is on the same page with your new strategy.

The International Data Corporation (IDC) predicts that by 2022, 75% of enterprises will embed intelligent automation into technology and process development. The same report projects that by 2024, AI will become the new user interface, and 50% of user touches will be augmented by computer vision, natural language, augmented reality, and virtual reality. AI will be seemingly invisible, yet omnipresent. We hope the economic challenges presented by 2020 do not deter your company from pursuing sophisticated AI but instead drive you to advance and adapt. At RBT, we believe maximizing the value of ever-increasing data will separate those who lead from those who lag. Please do not hesitate to contact one of our dedicated team members today to talk about the exciting and innovative opportunities to grow your business.